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tv   Markets Now  FOX Business  July 22, 2013 11:00am-1:01pm EDT

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or a girl. we will talk about that and we will talk about detroit at this hour. joining us on "markets now", working quickly to try to solve that financial problem. the emergency manager says that it needs to be done fast. we have mcdonald's taking a beating, falling short on earnings. even while people in here is a sore spot. fewer buyers are young people. we will get into all of that and maybe more this hour on "markets now."
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>> i just don't care about this particular child. >> we are not forcing you to care. top of the hour, stock every 15 minutes. nicole petallides has the update. reporter: that is right, we are seeing the dow jones industrial right now back into positive territory after some weakening home sales. another thing we should note here is that the dollar has been weakening after moderately
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particularly high goals. that is something that we are focusing on as well. you are seeing gold jumping significantly, up about 34 points, it is also a very big deal. lots watching the markets right now, they include microsoft and american express. >> don't forget about detroit today he will work carefully but quickly. >> i'm trying to get this done between 2014 and that is a little bit more than a year. it is a little bit more than here, but we now have a judge and the judge will have his own ideas about how the show.
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dagen: we have to two guests with us. stephen, to you as well. the pension, the union, and the municipal bonds holder and this is good to take years and not a matter of months. >> it is the biggest city in american history and a very complicated case of bankruptcy in american history. other legal experts have said that it is more like three or four years, as many as $100 million on legal fees. connell: looking at this, the bondholders in particular, the retirees have already had stories written about that as public workers and they have counted on us from a political perspective.
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>> it is one thing with pension benefits. i think that their moral obligations with pensions to say that you are not going to get it. but the key is equity. how do you get it to everyone? dagen: how do you feel sorry for the pensioners, there are people that are paying servicers crowd and this money is going out the door. >> i absolutely do. but at the same time, if the economy is not revived, we are not going to have much of the tax payers paying for this. and that is why we have to try to be fair to everybody. >> i think that retirees are giving another look at this and it sort of thing, i wonder how the judge will rule on this. what happens if they just completely obliterate it as we
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get it had harder. >> we are entering uncharted territory in pension cuts. and this is a difference from state to state. connell: how about chicago and oakland. they're about 100 cops to fund this. these teachers ought to be paying very close. >> i think they will. >> neither one of you can jump in on us. because the city, people of the
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city pay taxes. >> i wanted to talk about this. connell: it is tougher to recruit people working those jobs, i would think. >> it's a really ugly situation. a zero-sum struggle. over half of that is for obligations of pensions and retiree health care funds and very interesting as to how it can return to solvency. dagen: it is showing a lot of fruit in see.
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>> there is unfortunately paralysis in this process. connell: would you like to wrap it up, stephen? >> just yes to my think the squeeze on public services. >> i think that services and taxes are very important. dagen: thank you both so much. connell: the markets up a little bit. but the focus is on interest at the top of the hour. mcdonald's was a big one. miss expectations for the second quarter and a lot of people will
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be looking at that stock emeritus. down by almost 3% thanks to this 32 points. broadly speaking, earnings momentum, could it be changed? catie joins us now. you have talked about the fact that there could be some pasta this? >> yes, stocks are going down, mcdonald's is a restaurant stock. there is a broader market, and i think that that is in part due to the rising price of crude oil. the mcdonald's of the world has a lot more stocks to break out. and i think that that is sustainable and its positive earnings. >> the s&p 500 is clearing as soon as thisults in individual stocks breaking out. which is how you look at it for
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the markets at 1695. break it up. short-term, what is the next big number that you're looking at? >> the s&p 500 may yield a short-term target of this is looking for about 1784 the months ahead. connell: the months ahead been six months to a year? >> yes, about six months. connell: is that kind of where the markets topped out for a little while? or what happens after that if we get there? >> i think it would be a natural place to be a stopping point for the market.
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and as we have seen the rates creep up, is that something in a tenured yield the start get worried about? >> yes, probably there is a magic number. but i couldn't tell you what it is. it has turned the corner and it will work its way higher, there is a way that we are tracking each other higher for. for now it is not an issue. connell: it is much higher than us, is that what i told you? >> yes, my target for the 10 year treasury is about 375. so that is also very long target. yet i do think it is achievable over the long-term. and that without level we are following the momentum of the indicators at the same sight of them. connell: fair enough. good numbers with katie stockton. thank you so much for coming on the show. dagen: soon every car on the road could contain a black box.
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that is at the if the national highway traffic safety administration gets its way. i did not know this, but 96% of all new vehicles sold in the united states have been used for a long time. consumer advocates are fighting back, saying that this is the latest example of the government and companies having too much access to private information. connell: there you go. dagen: i am not recording conversations in the car. you know, to determine what causes accidents. connell: the sec charging the city of miami with securities fraud. we will have that next. and the city talking about growing deficits and the report on that. a number of cities with some issues coming up. dagen: a fly in the ointment. the younger generation not participating in a housing
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recovery. when will they start buying and buying big? >> rising gas prices up 6 cents a gallon. we'll have the latest on that. the oil market today out $107.30 per barrel. we will be right back with more "markets now"
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this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. connell: charles payne hasn't stock picks that you aren't going to want to miss. we were checking with katie stockton, let's take a look at the mcdonald's stock. reporter: it has been weighing on the dow jones industrial, down almost 3% today. a large part of that is because of the warning that is going forward, talking about european sales. coupled with the fact that they are facing intense competition from this. they are saying that they are facing a tough competition. while they are still having
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winners today, oil is up per barrel, but they have other names in their groups. jack-in-the-box, wendy's, burger king, chipotle, mcdonald's is the worst of the names i have named for you. connell: another update for mcdonald's. dagen: let's make some money with charles payne. he is looking at pet meds. charles: that's right, you call them up and get the meds for your dog. dagen: you're interested in a stock for your dog. that's hilarious. charles: my dog gets an insulin shot every day, he has diabetes. my other dog as well and they are hanging tough.
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pet meds actually hit 17.5 earlier today. this is one to chase. and the market shares in veterinarian medical care for pets, most people want to save money just like any other medicine. people want to save money. connell: it's a good follow up with what katie was talking about. looking at the markets from a technical perspective. this idea that you want to chase. obviously stocks are up. how you determine which stocks are what is important. charles: break out a five-year chart. everyone does that, but if you do that, you can not miss anything and i talked about this earlier with stuart varney. he gives you a greater sense of confidence in the stocks and including fundamentals. this company is doing everything right, their markets are expanding. i think that it's a good market
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share. a name that is well known. not a lot of competition. i see them as being one of those companies that is making a big move. by the way, it's been very profitable over the long-term. dagen: thank you, charles. connell: did you know that charles is a boy's name for the royal family that is a favorite? charles: that's right, it makes me a little jealous. [laughter] dagen: at the royal baby boom in england. how will help the british economy. connell: the money angle. how we can always find it. and the city of miami is facing federal fraud charges and we will have that story coming up in just a few minutes. but also, a look of currency today. looking at the british pound and the effect on that. we'll be right back.
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>> the impending birth of the royal baby. according to reuters, sales of toys and souvenirs alone will bring in about $240 million into the british economy. in china, to earthquakes 750 miles west of beijing. 750 are dead. officials report 21,000 buildings were damaged and more than 1200 businesses as well. the pontiff told francis is at a youth conference this week. he says that young people are in conference and expected to celebrate mass today. those are your headlines. connell mcshane. dagen: the securities and exchange commission talking about security fraud for the city of miami.
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>> what exactly is the miami dealers? >> well, there is more money out of this slush fund. it was experiencing difficulty. but they also urged acity offial to make those moves and those monies were in reverse after city auditors discovered it. what the suv is also saying that the city of miami as well is hitting them with a
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cease-and-desist order. they are saying that the city official, his misconduct is appalling. he did these disclosures merely a few years after he offered the cease-and-desist order. as you can see the sec on program that has launched the vons unit. what he saw on that map was where those are taking place. the pension fraud and disclosure fraud there. cities and states don't have to issue this to regular units. the svc is concerned to be misled.
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connell: looking at who is buying these homes, it is not the younger generation. dagen: speed to where we are spending our money on. gasoline. the numbers are back to the 2008 numbers. here are some winners on the s&p 500. take a look.
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connell: markets now at the half-hour. one very important group not participating in this so-called housing recovery. tony sanders will talk about that with us. we have gas continuing to go higher and not great news for the economy. the bigger news might just be what is comiig in a couple of years. a superman and batman movie combined at the box office. we will talk about that. dagen: that is on tv, that's all that's on tv. every half-hour, stocks every 10 minutes. >> that's right, the younger folks not buying homes. as a matter of fact, let's take a look here.
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existing home sales that came in at 10% and they were a big disappointment. but these stocks have come up off of the lows of the day. they were down 2% 3%, even down in the 1% range for the most part. down 1.7%. 1.2% in june. year-over-year we are seeing momentum according to many. obviously home and home building and home selling and anything related to homes is really driving the economy. so that is something that mortgages have been on the rise. that may have factored into this. coupled with the fact that it is a spring summer season as well. dagen: connell: to follow up on this, the housing recovery. down 7%.
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2006 to 2011, that doubled more than national average. anthony sanders joins us now. a professor at george mason university. so good to see you. how big of a deal is the decline for young people specifically. what is the effect on the overall so-called recovery and housing of that? >> well, let me say welcome to the united states of europe. [laughter] in germany, people wait until they are 40 or 50 to buy there first time, and we are turning towards. that is why the more nails are not always getting in the housing market. connell: you can see tony's point illustrated. the people not buying houses until much later in life. okay, the european model, what is the overall thought process? >> i would definitely think it's a bad model. the housing market recovery as a whole, this means that we are not having our college graduates
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are high school graduates going into the labor force and buying homes. relying on investors, canadians, chinese, turkish, russian to support our housing market. this is not the housing market we envision. connell: we are seeing this fueled by investors in big cities. for miami, we were talking about this a few minutes ago and the effect of foreign buyers in some of these markets, driving things along, that can be sustained? >> no because eventually the investors go away. once fields aren't there anymore for them. they will back out of the market. what we have in the background? nothing.
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connell: we have seen interest rates go up over the last month or two. what is your outlook for that? unalaska about today's number. >> i agree with, you know, fred duncan about fannie mae. it's going to go up at least 100 basis points over the next year. particularly it will put downward pressure on the housing market. if you are young, even bigger downward pressure on the market. higher interest rates higher than they are right now. it is more favorable to invest in some points. >> absolutely. connell: nicole petallides mentioned it in greater detail, it is down. we know that. it is coming down from the multi-hide.. what did you make of the number today? >> we are back to the 1991 to 2001 levels. it has been rising like crazy since 2010. only back to the 1999 levels.
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the housing market is taking a long time to recover and this might be the one that we might not see anymore. connell: it is always good to see you, thank you so much. >> and please tell dagen mcdowell that i like ripd. dagen: okay, thanks. [laughter] connell: everyone is entitled to their opinion. dagen: we know each other. anyway, gas prices spiking, we could be looking at the most expensive summer in five years. connell: apple looking to go beg. new extensions of the iphone and i've had. dagen: superman could be teaming up with batman in just a couple of years on the silver screen. a big-ticket draw and the big
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losers we have seen the summer so far. take a look at treasuries losing money today. the yields are down today
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dagen: see how the european markets closed today.
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propelling some european shares to highs today. about one third of a percent. connell: a weak finish for some of the others. texas and north dakota are about the only state without booming oil production. five other states have seen double-digit increases over the past three years as well. dagen: alicia has the details. tour that's right, we have colorado, utah, oklahoma, they have all seen oil production increase between 23 and 64%. combined, these states could outshine north dakota it wasn't for regulation on federal lands. companies find fewer hurdles. many blame the obama policy on
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energy for leaving behind what others burn. >> we may need private development and it's not to say that this is permanent there, but you can get this on federal land in about 230 days. of much better process to go through. a lot of requirements for mark wrigley says sometimes folks forget that fuel doesn't come from a gas station, but it takes a long way to get there. conservation says they are not against energy development. saying under sing under this administration, more acres of federal land and they draw the line at places like this park in colorado. >> there's a lot of pullback. so what that leads to his things like the dom proposing to lease land in front of this makes
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avert a national national park. for oil and gas criticism make any sense to be doing this drilling. reporter: they explained that they are simply trying to protect our western heritage. dagen: thank you so much, be well. gas prices climbing and now topping $3.60 per gallon. and 21 cents higher than it was at this time oster. so we probably won't get to the record that we hit back in 2008. or will he? >> heaven for bed. unless we get 15 hurricanes coming to the gulf of mexico. more than likely we are a lot closer to the top. the bad news is it is not over yet. at the pump over the next couple of weeks, a lot of refiners have
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not been able to pass on the cost with the wholesale price of gasoline. as well as the futures price. we will still see prices edge up. prices for gasoline go up like rockets and fall like feathers and that is probably way that this is going to happen. but the good news is we are starting to see a little bit of the relief on the wholesale market. a lot of the refinery problems that caused this, should start easing a little bit and we should see a bridge. the other thing is u.s. refiners are ardent refining at an incredible pace. they run an eight year high and right now people are asking the questions, why are we not seeing more advantage from its oil production we are seeing in the united states. why isn't the united states. why can it translate into lower gasoline prices? i think eventually it will, but it's not happening right now. dagen: how low can the prices fall with this when it is passed
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along? >> you know, it depends on what time frame you're talking about. i think that we will see an era of much lower grass prices down the road. we are going to become more fuel efficient and especially when it comes to driving on the road. so right now that the u.s. infrastructure isn't growing pains. we have built this industry to bet on champion will importer. now you have to be an exporter. at the same time we have regulations that are slowing the progress of our situation. one of the reasons why gas pumps and 10 prices are up is because we are exporting a lot of gasoline because we can't sell it here because the rising cost
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of ethanol makes it cheaper to export gas other places that may be the gulf coast in the midwest where they really need to supply right now and. dagen: it is most indeed global. thank you so much, great to see you. have a great week. dagen: we will see you before the weekend arrives. connell: let's shift gears and talk about user information. appleas become a victim of a cyberattack. the company refused to admit this. the personal information was encrypted and cannot be accessed. they have not been able to rule out the possibility from developers names and mailing addresses. a turkish securities researcher claimed responsibility for the attack. at a quarter to the hour, stocks every 15 minutes, another apple boost.
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reporter: that is right, we have to headlines. given my private informatioo and the second is product and development. and we are looking at apple right now about half of 1%. now it has been reported in apple has been working with suppliers at increasing screen sizes. the phones, something larger than 4 inches, for the tablet devices those would increase. when you talk to the experts, they say that would go right in line with what we have been seeing in these mobile trends of devices and offering this. this is even new word i learned. even now the category of tablets, it makes them more competitive such as samsung. they have a larger screen and i something that has been very popular for samsung.
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i just wanted to note that i did look at these sale ratios. so you still see that overall the trading community is still part of this. connell: the cool, thank you so much. dagen: that will not be a word that i will ever use. that was such an interesting thing. >> i didn't expect you to do that today. but now that we do, it's pretty funny. dagen: dennis kneale and has her box office report coming up next. connell: fabulous.
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here are some winners and losers and everything else. coming up at the nasdaq, looking at the stocks are doing quite well. we will be back to talk to dennis coming up next. weekdays are for rising to the challenge. they're the days to take care of busiss. when possibilities become reality. with centurylink as your trusted partner, r visionary cloud infrastructure and glal broadband network free you to focus on what matts. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.
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connell: breaking news. the judge in the bankruptcy case expedited hearing for july 24, 10:00 a.m. another big date to address the issues to address the hearing on
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first-day motions. that will be august 2. july 24 this coming wednesday and august 2, big days in detroit. we just learned that. dagen: another box office update. another major flaw. one made a big splash. connell: here to tell you is dennis kneale with our report on weekend movies. reporter: that is right, we have nine figure flops. one is ripd, about those cops and the cost of $130 million. and then turbo from dreamworks animation, it came in at less than $22 million. it was unable to be despicable me. it has been out for three weeks
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now. the big surprise is the conjuring from warner bros. over twice that in the first opening weekend of $20 million. here comes this film and 36 million. this man of steel sequel, finally they are reviving that with some real success. it took in 600 million and it will be made into a sequel. we will bring in batman and superman is going to be meeting with batman at comic con they revealed this logo this past weekend. as you can see, the applications on the batwing.
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dagen: sons of anarchy was there, the cast, and bryan cranston from breaking bad was walking around, come with a mask from the show on and no one knew it was him. i am amazed. reporter: that you should see the level of detail at a gathering like that. >> it all depends on how the senate is. >> yes, he says he's not going to do it. the avengers can be a great franchise coming up. dagen: exactly. reporter: we are really seeing a lot of flops lately. so some of these have bigger budgets and they are exceptionally low. some of them are kicked off.
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dagen: when you put money like that, you can mark any of these movies and know if they are good or not. >> i think the lone ranger has been the best so far speak to people no longer care about the lone ranger and the whole johnny depp and. the pirates of the caribbean, it is just not the same thing. connell: all right, thank you, dennis nearly. dagen: not loving mcdonald's today. the stock is down today. analysts on what they need to do to cook up a storm going forward connell: st. mary's hospital in london is the place to be today. the royal baby watch. cheryl casone he will talk about that as well. we will be right back.
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but hurry, offers end july 31st.
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dennis: high noon. i am dennis kneale. cheryl: i am cheryl casone. right now, the donald is putting a lot of pressure on the dow. dennis: will bid then have to rethink tapering. cheryl: kate at st. mary's hospital in londi -- london right now. dennis: stocks now and every 15
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minutes. nicole: up 12 points right now. most averages are not too far off. the dow jones industrials are being weighed down. the u.s. dollar is to the downside. gold has been gaining today. bank stocks have been doing well. drug stocks, most of the prophets have talked analyst expectations. cheryl: there you go. we will see what this week brings. thank you very much.
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still up over 15%. this does not give you a very accurate picture of what is really happening in the housing market right now. greg, you are saying that this data is old. you are looking at other factors. >> there is a seasonality in the market. the year-to-year numbers tell a story of a definite improvement year in terms of home demand. the data that we look at is
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real-time feedback coming from the field. we have a network that tells us literally what is happening in the minds of buyers and sellers. cheryl: what is the deal? >> everything is the same as it was. people were just getting tired of being on the sidelines. any hint of an improved economy drew them off of the sidelines. we are seeing inventories begin to increase just a little bit. i think what we will see is the rest of this year, we will continue to see gains of 10% or
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more. cheryl: we will have sales volume. what does this mean for prices. is housing no longer across the board going to be strong? will it be more of a regional story once again? we look at 15 year charts on home prices. there is a trend line. just like clockwork, it came back up again.
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cheryl: we showed our viewers the trendline. texas, carolinas, tennessee, you also say and you warn, when interest rates get to 7%, you expect a pullback. we are getting closer to the level. more so than we have been in the past couple months. >> i expected to be a drag on demand. cheryl: you are buying -- >> yes. i do not buy property or recommend my clients buy property in places where people spend all of the money. you are a state headed for the
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fall. all you will end up doing is raising taxes on your property owners. job growth, quality of life, cost of living. why get regulated, come down to texas where we will welcome you. i just moved from north carolina to new york. last week, the state government voted to lower corporate taxes and personal income taxes. they are following suit. cheryl: okay. i do want to show the states where you are investing.
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thank you so much. we will have to leave it there. good to talk to you. >> thank you. same here. dennis: economists are at their most optimistic levels in over a year with 72% of those surveyed calling for growth of one or 2% in the next year. we have chief investment strategist joining us now. >> well, dennis, the u.s. recovery in the economy. i think macroeconomic risk, mainly european china, are receiving. there is little in the way of competition relative to the earnings yield you could get from stocks which is for-5%.
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dennis: big question for you. the "wall street journal." are these the economists who are optimistic actually wrong? >> i hope not. clearly, in the near-term basis, i think that affects of the soap questor cuts will have an impact in terms of consumer spending. hopefully, you will see a two plus% run rate. i think that bodes well for risk assets. dennis: you had said you would get out of consumer staples, but
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the idea that the economy is getting better than people realize, was that a good call? >> we continue to be holders of the stock. the new ceo seems to be getting all of the things right. we still like the company longer term, although, we think that their rewards can be found in sectors more rewarding to the economy. they have done very well over the last several months. dennis: okay. tell us about your two new pics.
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>> citigroup, obviously, one of the big universal money banks. over 5 conference overseas markets. we like it because it is cheap relative to its peers. the growth profile looks attractive. as it relates to hp, this is an oil service company. it is a company that we think is well-positioned given the state of the art oil position of riggs. the current yield is close to 3%. dennis: thank you for being with us today. >> thank you, dennis. dennis: the next error to the
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british throne is expected any minute now. here is to hoping this next child makes you some money. cheryl: and detroit, creditors, bondholders, retirees, unions, fighting it out to get paid. that court session has been scheduled for wednesday. we will break all of that down coming up. dennis: we are live at the cme ahead. in the meantime, let's take look at metals. ♪ ♪
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in the only medicare supplement insurance plans endorsed by aarp. remember, all medicare supplement ans help cover some of what medicare doesn't pay and could really save you in out-of-pocket medical costs. you'll be able to choose your own doctor or hospital as long as theaccept medicare patients. and with these plans, there could be low or no copays. you do your push-ups today? prepare to be amazed. [ male announcer ] don't wait. call today to request your free decision guide and nd the aarp medicare supplement plan to go the distance with you. go long. ♪ dennis: time for stocks now. let's go to the new york stock exchange and nicole petallides.
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nicole: let's take a look at the shares right now. it improved slightly off of the lows for the day. it is still down. there is a year to date chart. you can still see a winner for yahoo!. what happens now, yahoo! will buy the shares that were owned by third point. this just goes back into their buyback program that was underweight anyway. back to you. dennis: okay. thank you, nicole. cheryl: in just the last half-hour, we have learned two important dates for the city of detroit.
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there will be a hearing this next monday, a judge will rule whether the bankruptcy can proceed. the big question, who are the winners and who are the losers? >> good afternoon. nice to see you. good to be back here. >> there are very few winners at this point in time. you have to very big issues to be right now. historically, in this country, the general obligation bonds -- cheryl: does that change, in your opinion?
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>> we have been seeing this, like a freight train. we do not see how, politically, they will be able to slash the municipal workers and not deal with the general obligation funds. cheryl: no one calling for the cuts to the pension benefits. that is why they are now going to court. they are fighting. it is a political fight, as well. we should not be surprised by that. >> on the private sector to her, they are backstopped by the federal pension guaranty corporation. there is no such backstop for the municipal work. i see that as a big upcoming fight. rightly, or wrongly, we see
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bonds that will be compromised in these larger situations. cheryl: you also have, you know, the difference of a corporate bankruptcy, that will be handled differently. one thing that has already been bantered about is the opportunity for a bailout. a federal bailout. again, this would be a political move. >> it happened in detroit with general motors. cheryl: there you go. private company bailed out. >> last i checked, detroit is the home of general motors. what i would love to see happen here is the federal government acting as a facilitator.
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the way they do that, if they have reached the point where they say we will write a check, then don't write a check, but provide some backstops. you have real money coming to the table trying to create a public partnership. i think that is creative, eloquent, complicated. cheryl: absolutely. that is where the bailout talk gets a little frightening, as well. thank you very much. good to have you on.
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>> nice to see you. dennis: space. the final frontier. boeing unveiling its design for a commercial spacecraft. we have a fox first look ahead. cheryl: that royal baby bob could give a royal economy bump. we will be right back. ♪ she knows you like no one else.
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♪ >> 23 minutes past the hour. in cleveland, michael madison has been charged with three counts of outdated murder after police discovered three bodies and plastic bags near his house. and china, a strong earthquake. this happens about 750 miles west of beijing.
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buildings were damaged and destroyed. waited the arrival of the royal baby. analyst told reuters that it should bring in lots of money for merchandise, alcohol and food. back to dennis. dennis: thank you. boeing unveiling a test model of what i hope will be a spacecraft. >> this is a boeing like you have never seen before.
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this is the cst 100. what you see is a live feed of what is actually going on inside the capsule. a real nassau astronaut. boeing currently and competition with two other companies. since the shuttle program retired, the u.s. does not have any space transport vehicles to get astronauts and cargo to the international space station. we are paying russia a lot of money. >> the united states just signed another contract for, i believe, six flights for over $70 million ac. we can do it for less than that.
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>> last year, congress approved $406 million to help develop this program. they hope to have a capsule in operation by 2017. pretty fascinating, dennis and cheryl. dennis: thank you very much. cheryl: it is the fox business summertime showdown. they each made two stock picks. all of her did come out on top. that is friday at 12 eastern time. dennis: netflix shares turning lower. dissecting the stock ahead. cheryl: we are also looking at this one..3
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mcdonald's. the conference call did kick into gear this morning. we have details from that. i want to take a look at some of the s&p winners and losers as we go to break. we will be right back. ♪ [ male announcer ] if you suffer from a dry mouth
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dennis: wall street not loving it. mcdonald's taking a hit. what they need to do to build on that earnings problem. blowout earnings coming up after the valve. we will dissect that stock coming up. gas shock. phil flynn fills it out for us at the cme.
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that is coming up. thirty minutes past the hour. stocks now and every 15 minutes. nicole: we should take a look at why it is to the downside. right now, the stock is down about 2.5%. 9770. it is a big later on the dow jones industrials. it really has underperformed some of its rivals. that is part of the problem. they have two issues that they are warning going forward. when you look at figure to date numbers, mcdonald's is doing well. of over 13% for this year. back to you. cheryl: thank you.
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mcdonald's earnings falling far short of expectations. i want to get into this thing with don thompson. he was on the earnings call this morning. i am wondering if you as analysts are disappointed in him. does this add pressure? >> i think that it absolutely adds pressure. i am quite pleased that he is trying to signal something to the market. my hat is off to him. cheryl: okay. okay. honesty is a good thing for wall street ceos. revenue is certainly a big piece
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of european sales numbers. what i am looking at here is the fact that food inflation has been easing up for mcdonald's. they did not really seem to see a benefit from that. >> i think that they did see some benefit. thank goodness that food costs are moderating, otherwise, they probably would have missed by a wider margin. it was really a to send this. the real disappointment, i think, will be big u.s. comps and the u.s. margins. at this point, everyone is used to europe being week. now, you have a new management team in place.
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cheryl: the cfo was talking about the fact that the pressure is in the united states. an economic push down. this is the world largest restaurant chain. we care what mcdonald's says. where there's some red flags? >> i think you have a really good point. that says to me it will be a pretty difficult earnings season. keep in mind that make donald, the consumer is every consumer. it touches almost everyone at some point. if their sales are weak, you will likely see pressures out of the companies that you mentioned earlier. we are seeing pressure across
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mass-market consumers. this is just a leading indicator of probably more to come in q2. cheryl: do you think that they will raise prices? can they just raise prices? that would be a fax fix to the problem. >> you definitely can raise price. mcdonald's is in it to take market share over the long-term. if you are seeing a negative menu mix, it is difficult to take price without sacrificing traffic. they did comment on the call that they would look at pricing on the second half of the year. they do not want to encourage people to eat at home or switch and go to one of their
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competitors instead. i think that they may raise it some, but they will stay below cpi. cheryl: thank you very much for joining us on the earnings call today. appreciate it. >> thank you for having me. dennis: if you are looking for a rolex, how about trying seers. cheryl: i was going to get you a rolex for your birthday. another state wants to take on california's wine industry. we will be right back. ♪ peace of mind is important when you're running a successful business.
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if you are in the market for a rolex, the "wall street journal" reporting that sears is offering one on the website. that is the latest from the fox business network. giving you the power to prosper. ♪
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cheryl: americans are shelling out more to fill up their tanks. analysts are warning that this could be just the beginning. of $0.21 from this time last year. phil flynn standing by in the pits of the cme. the most expensive summer in five years. >> it is very depressing. it has all happened in the last couple weeks.
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we saw three weeks of inventory where we lost 27 million barrels of crude. that is almost unheard-of unless we have a hurricane or something. demand for gasoline. not only here in the united states. the u.s. is exporting more gasoline than we ever have before. it just turned out to be the perfect storm of bad news for drivers. we are seeing a little relief on the wholesale price today. rbob futures are down $2.82 today. if they hold up, we should see some relief at the pump. not right away, but -- cheryl: what about ethanol? the ethanol blend piece to the puzzle?
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that is a government issue. >> that is. it is bad regulation. it is one of the reasons why exporters are not sending gasoline down to the midwest where we need it desperately. it is unbelievable. because of the lack of ability of the refiners to buy enough renewable identification credit, they are better off to exported somewhere else. cheryl: that is really interesting. thank you. >> thank you. dennis: it has been a lousy earnings season for tech so far. analysts expecting some solid profit numbers. thank you for being with us, michael. i believe they are looking for
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double digit earnings growth. >> i think that they will hit their numbers quite easily. they have executed well the first half of this year. two originals that made a difference were house of cards and arrested development. i guess the open question is, are the booths that they got transitory? will we see these people turn out in the september quarter? netflix is not seen it yet. they will probably miss it. they will get the headwind from subscribers at the second half of this quarter and i think they will probably grow slower than people expect.
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dennis: i have no idea who you are talking about, i am not sure i even want to know. regarding house of cards, it got critical raves, how much it really truly lives subscriber numbers and the bottom line. house of cards is now available on amazon's download service. why spend so much if you cannot keep it away from amazon? >> netflix does not own the series. if you want to watch it on demand, you do not want to pay for it on amazon, then, sure, it is a good deal. unlike hbo, they do not have the
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right to exploit this beyond that window. dennis: 26 of 30 analysts that follow netflix are on a sell or hold. >> i think that this proves that the market will reward. netflix is trading up on subscriber growth. that is the one thing that they have excelled out. long-term, i just do not think that they make as much money as it implies. dennis: let's remember the scale. they keep saying that they are the next hbo. thank you for being with us today, michael. >> thank you. cheryl: a quarter till. time now for stocks now. nicole petallides i know that --
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nicole: there is so much that we watch with apple. the stock right now is up two dollars. of half of 1%. they raised their price target. most analysts think that it is worth buying we are seeing apple is testing screens for their iphones and tablets to be competitive against names like samsung. it makes them much more competitive in these areas. there are reports that you may see something in late august.
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we will continue to follow these stories, of course. dennis: miami vice. securities fraud. more such fraud cases may be on the way. we have elizabeth macdonald joining us. >> happening across the country. miami's general fund, they basically filled potholes by moving money out of a construction fund. they then went into the market in 2009 and sold muni bonds to investors. they made these moves to make their credit ratings better. what happened was, that got reversed back after a city audit. miami, by the way, has already been slapped for similar behavior in 2001.
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they are finding real serious problems with muni bond offerings where investors are being misled. the documents are falsified. here you will see states like rhode island and illinois. illinois and new jersey have already settled with the sec. we are seeing a lot of shenanigans going on. >> $34 billion for potholes that they kind of. period was it that big of a difference? >> yes. the s&p has already had miami at junk level.
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we are seeing the cost for the city of miami already rising by one percentage point since january. investors are being misled. they are rotten underneath because the finances are rotten underneath. you have to help us. you have to get the cities and states to give better numbers. the sec does not have that power right now. investors being misled in this very important market. dennis: if you are buying a muni bond, you already know that that thing is risky. >> i hear what you are saying. dennis: thank you, elizabeth macdonald. ♪ cheryl: time for your west coast minute. purchasing a heat sensing system that could have prevented the death of a chinese student had by a rescue vehicle.
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she was covered with fire retardant foam when she was hit by one of the rescue trucks. the arizona wine growers association is partnering with the university of arizona's department of agriculture in order to strengthen the state's fast-growing wine business. finally, adam levine just sold his hollywood home. it features two fireplaces, a home theater, workout rooms, security systems, four bedrooms, four bathrooms, plus a swimming pool and spa. i think he is engaged to a
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victoria's secret model or something like that. dennis: okay. is he really happy? we have details with your media minute ahead. cheryl: another poll proves what you probably already knew. we are working on our vacation. we will be right ♪ now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ but you better get here fast... [ girl ] yay, daddy's here. here you go, honey. thank you. [ male announcer ] because a good thing like this... phew! won't last forever. mmm. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. but hurry, offers end july 31st. on the exhilarating c250 sport sedan. (annouer) at scottrade, our clients trade and invest ex. with scottrade's onle banking, i get one view of my bank and brokerage accounts
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♪ dennis: tuff weekend at the box office. comcast universal are ipd cost $130 million to make, but only mustered $12 million.
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the clash of tv titans continues. cbs versus times warner. time warner cable running this full-page attack over the weekend. saying that cbs is giving new york a black guy. the showtime channel could go dark in all homes. those are your media minute. cheryl: working on vacation. is it becoming the new norm? this is according to a survey
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report. it is up from 52% in 2012. dennis: okay. we have the federal ruling that is putting the detroit bankruptcy up. cheryl: tom kloza will be joining adam and lori coming up. dennis: plus, the tears of the clown. why mcdonald's sales fell off even as people look for a cheaper meal. ♪ if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550
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and bankrupt or see. an expedited hearing as michigan rages on. adam: home sales dropping, missing expectations for a longshot. we are going to have our fannie mae chief officer join us today. lori: when can we expect some relief at the pump? jumped up 12 cents last week. steve cohen, charlie gasparino, lasting efforts to but one of the most successful hedge fund managers out of business. you have to read charlie's book, by the way. it is remarkable. if you want to talk about insider trading, easy go to. let's talk with nicole petallides on the floor the new york stock exchange. what's going on


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