tv Markets Now FOX Business July 23, 2013 1:00pm-3:01pm EDT
dishwashers. sears trying to look luxurious. lori: in the red-hot. a quick yes or no all based on your picture. it is linking couples and second. two prophets come that fast? let's get an update on the markets. nicole petallides watching the earnings report from some major names after the bell today. nicole: i got a little giggle. it will be interesting to hear about it. the dow jones industrials up about 22 points right now.
we did see record all day intraday highs. we also continue to follow, in addition to the major market averages, these three names came out. we are also watching dupont. travelers has been to the downside. they did well with their second-quarter profit. we also have united technologies. that is the third one we are continuing to follow very closely. those are some hot stocks to watch in the dow jones industrials. adam: thank you very much. another bellwether name reporting today is ups. customers chose cheaper and slower shipping options.
have customers given us a clue about the global and u.s. economic recovery? we will take that to benjamin hartford. are these earnings a statement about what will happen? >> i think what we have seen, you know, ups spoiled the fun so to speak about ten days ago when they preannounce earnings. the transports have said what the broader industrials have said. i think expectations are being reset here. it is still very much to be determined. that is what we have our eyes closely on. adam: they were in negative territory.
for the most part, volume was of. the margins may be tighter because it is cheaper shipping. >> we are not seeing out and out volume contraction. we are seeing the trajectory of growth lowered. we are not seeing contracting growth. that is a positive. i think these transport stocks are at the pivot point. we will closely monitor it as we go into september and over. adam: i think that accounted for a great deal of the drop.
>> airfreight out of asia is an important barometer. airfreight has been weak. it has been weak for the last three years. they are seeing a phenomenon of trade downs. it is something that is ongoing. they do not appear to be deteriorating. that is a month by month basis. i think it is an important data point to watch. adam: i think the stoke from you is the stock is appropriately priced. >> yes. we are looking for the growth.
the volume growth to re- accelerated. adam: a lot of us will be watching. thank you very much. thank you, sir. >> thank you. lori: natural gas prices jumping more than 8% here. storms off the coast of africa. >> we cannot get a break. it was supposed to cool off. forget about that. if it has no place to put the gas, they have to shut down. they are taking off oil production as well. that has also brought the oil of as well. of course, this is the season.
you have to look attstorms when they may come or they may not come. some traders are being safe rather than sorry. adam: thank you. jacking up the price of aluminum. they are delaying shipments. guess what, you, me, all of us, we are paying for it. rich edson joins us now. rich: subsidiaries control a network of these warehouses. the brewers save the banks are cleaning up. they are stuck paying more for
aluminum. >> the current system is not functioning as others do. >> goldman sachs denies any scheme. this warehouse system only controls about 5%. -@goldman sachs says delivered a loom aluminum prices are lower. the congressional committee and federal reserve are examining whether they should permit it. currently, they are allowed to. they are re-examining the government regulations.
right now they are being evaluating how much they should be allowed to do. adam: thank you. lori: rotten tomatoes for netflix. adam: the latest on the southwest aircraft that had a problem landing at laguardia airport. another boeing plane was involved in that. lori: china's drastic move to avoid a hard landing. that is next. ♪ friday night, buddy.
charles: last june 209, the first time at $33. it was at a 5252 week high. they report tomorrow. here are the things that i like. absolutely phenomenal. the last quarter that they reported, i think was a serious business and function. they were down 1.8%. you never see this in retail. the older stores are starting to pick it up. i love management's attitude. this is what he said.
aggressively pursuing the market. we will use advertising, more advertising. we will expand our market. lori: how sensitive is the company to lumber prices? >> i think lumber prices being down does not hurt them. right now, i think because lumber prices have come down so sharply, it may not hurt them. adam: what we start to see some of these prices go up? charles: on average, six months -- in other words, i think it will spark more demand.
i see a win-win. you will see demand for more building. as they become even more confident, and you know, they get real confident real fast. charles: they really seem to be extraordinarily focused on the retail side of the business. it has been a phenomenal story. a lot of people always feel like they are chasing and they do not buy a stock because of that. lori: i know that you like that thesis.
from one stock to many stocks. let's get an update on the broader market with nicole petallides. nicole: let's take a look at netflix. stocks have been to the downside. it seems good. however, it did not surpass or even meet wall street expectations. with that, you see the stocks reacting negatively. for 2013, it is up 182%, roughly. the analysts seem to be split. adam: 7% as a target. jo ling kent joins us with more.
>> that is right. according to chinese state media, 7% is the new byline. the nation cannot allow growth below that number. for so many years, he is well-known for his skepticism of the gdp numbers. the finance minister recently said in washington, 6.5% would be tolerable. lastly china reported second quarter gdp. basically, we can expect 7.5%.
7% is now considered to be the lower limit through 2020. four investors, this is encouraging news. analysts say the comments show the government may be willing to act to support expansion. this seems to be a move to support. adam: we appreciate you keeping an eye on the chinese economy for us. lori: the best bang for your smart phone. adam: we will introduce you to a businesswoman. the new high end look for the struggling retailer.
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>> 21 minutes past the hour. i have your fox news minute. the royal baby is absolutely beautiful. kate's parents say that they are absolutely thrilled. the british public is still waiting for a name and their first glimpse at the new royal. costs drop by about a third compared to three years ago. in brazil, the post pulps driver took a wrong turn. pope francis, well, he was smiling and waving. those are your news headlines.
adam: i am just thinking watching the pope stuck in traffic, he should come to manhattan. sears, the store known best for ceo edward lampert is pushing his struggling company. it is a pleasure to have you here on the fox business network. thank you very much. the third largest, as far as visitors. >> we met them at a conference about a year and a half ago.
we look at it as a new opportunity. adam: it is down today. almost 3%. one of the struggles that sears has had is reinventing itself. do you think consumers will truly want to repurchase luxury items from sears? we just bought my mom new appliances from sears. will they be able to get that luxury customer? >> right. i sure hope so. i think that they are working really hard to expand their apparel department and fashion department and really put a lot of time and effort into it.
i think the people will calm. lots of people shop online. they are looking for a good deal. dennis: is it really sustainable to you? >> they are just starting out. we are just hoping that this is the beginning. we hope they will put a lot of time and effort into it. it is exciting for us to be on the ground floor of something that could be really good. adam: sears and kmart have all of the charm of a dollar store without the prices.
this is a brick and mortar operation. they are trying to go in a different direction. have they missed the boat? >> a lot of companies still trying to get into the game. the fact that they are in it right now is pretty exciting. they are known as a brick and mortar store. hopefully they can get other merchants and sell higher and goods. adam: i think when it was discussed that you would be on the program speaks volumes. we appreciate you being here with us. >> thank you. lori: we want to direct your attention to the lower right-hand side of your screen.
that is a live look at st. mary's in london. this hour we are told within the next 30 minutes or so, as you know, people, the media, everyone, they are focused on not windowing. we understand the new family it will proceed to kensington palace. as soon as the royal couple and new baby son emerge, we will bring it to you live. what is wrong with you? that does not even carry -- we have to split. apple earnings out after the valve. what that may spell for that tech giants. adam: we will introduce you to tender. ♪
adam: we want to check stocks again. we do it every 15 minutes. we're going back to the floor of the new york stock exchange. nicole petallides, who is watching some earnings and winners for us, nicole? >> that's right, it is earnings season. we're constantly looking for names on the move on this day which is a record-setting day on wall street. we'll look at lockheed martin and wendy's for example. wendy's has been a stellar performer. it has been up 12%. it is up 56% year-to-date. that is changing as it continues to gain. it really has been a great performer with higher profit.
also new things on the menu such as pretzel bacon cheeseburger. lockheed martin, also another name we continue to follow. their earnings jumped and seen strong profits. good news for lockheed martin, up 2.3%. back to you. adam: nicole, thank you. also making news today, shares of sourcefire soaring to a new all-time high on news that the cybersecurity company will be purchased by cisco. cisco will pay $76 a share. the deal is expected to close in the second half of the year and been approved by both company boards. the purchase price valued at $76 a share, represents at 28.6% premium over the target monday closing stock price. new york's laguardia airport and runway have reopened after the nose gear failed on a southwest airlines flight from nashville last night. the boeing 737 front landing gear collapsed upon touch down. ntsb, faa, boeing, united
technologies which makes the landing gear are investigating that incident. lori: apple, as you probably know already, set to announce the fiscal year 2013 third quarter earnings after the bell today. many analysts predicting that the tech giant will fall short of expectations. as consumers steer away from costlier high-end smartphones, how will apple and other smartphone makers stay competitive? we have the president of the technology blog, tech buffalo. he joins us here with a breakdown of smartphones and which gives you the most bang for your buck. welcome to you. >> thank you for having me. lori: apple as you know reports tonight. do you have expect more evidence that the smartphone boom is ending? >> i think we're seeing slow, i wouldn't call it a burst but slow letting out of the air on the smartphone bubble. the race to get more and more megapixel higher resolutions screens are finding themselves facing a a more saturated market. lori: how about merge merges? we were covering china and slowing economy there but there are
other emerging markets out there but what is the potential? >> sure. we'll see apple which earnings comes after the closing bell, expected to announce a lower cost iphone in the september-october time frame which should position them very nicely against lower cost ndia, south america,kets like where a huge, huge untapped resource of smartphone buyers will be lurking. lori: not only do you have a saturated market, you have a crowded marketplace. you mentioned the android phone and blackberry hanging on by a thread some people say, samsung galaxy 4. what do you think is best positioned to benefit in a slowing demand marketplace? >> i think if apple plays their cards right they're really well-positioned. their vertical integration has thhm well-located to maintain everything from the phone and keep component costs low. they make hardware and software. they can control everything. there are no external variable supply chains they are worrying b they're facing direct
competition from samsung for every angle of the mindshare and market share. samsung is many about everywhere with their galaxy s-4 available with all four carriers in the u.s. they have a lower priced battle. they're fighting the battle at every price point where apple is fighting one. if they get there i think they will give samsung a run for their dollar. lori: we have the two models side by side. what are the most important characteristics consumers think about purchasing a smartphone? is it price? screen size? how easy or difficult it is to customize? >> subsidies on two-year contract are the same. folks purchasing samsung prefer larger screen size. it has a 5-inch screen versus a 4-inch screen on iphone. samsung is notoriously more open customizing experience. folks with apple look seamless experience. apple has the ecosystem nailed with 800,000 applications at the
apple app store. you get everything and it just works. people with apple computers can live inside their garden very happily. lori: which smartphone do you use most offoften? >> sitting next to me i have the samsung galaxy s 4, google edition with stock android. lori: thank you for your time. >> thank you for having me. lori: bringing in talking about new york attorney general with charlie gasparino. adam: traders take ahead of all important dell shareholder meeting urn tomorrow. we're back at the new york stock exchange. lori: show you 10-year quickly. this is the yield on the 10-year treasury note. we're back after a short break. for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns doub mes on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward
>> i'm melissa francis with your fox business brief. the new york stock exchange is looking for regulatory approval for a new disaster recovery plan. the new plan would allow the exchange to close while trading big board listed stocks shifts to an all electronic platform. the proposal filed with the sec would replace a standing plan that faced resistance in the midst of superstorm sandy. shares of phillips 66 partners are soaring on the company's new york stock exchange debut. the company plans to use the $378 million from its initial public offering for general business purposes. coming up on "money" at 5:00 p.m. eastern psychologist
lori: well a number of big banks are prodding congress to do something about new york attorney general's office when it comes to regulating the financial business but will the biggest bank of them all join in the effort? fox senior business correspondent, author of his new book, "circle of friends," charlie gasparino. before we get the latest on the ag situation, want to ask you about "new york times" about the goldman and aluminum price fixing and. >> i did not understand that story. i read it three times. i had my producer who is very financially literate, read it three times. i don't quite get the scam.
it came out yesterday. it is causing congressional hearings. we do know this. this is what i understand people at goldman, they are going to war with the "new york times" over this story. from what i understand they're demanding a massive correction or corrections, they think there are several mistakes there. on top of that they're to put out another public statement. they put out a statement about an hour ago. from what i understand, another one is coming. this is what we do know. it is goldman versus "the new york times." people inside goldman believe "the new york times" has it out for them as epitome of bad guys on wall street. they think this story is an example of that. like i said, i've read it a few times. i have tweeted it out. sophisticated people come back to me said they don't get it either. i'm sure everybody -- lori: soda can prices are going up because of this? >> but the scam -- adam: alleged they delayed delivery of aluminum with drives up prices but they would say -- >> goldman says they don't control the delay. you take your gold to any market or warehouse.
they will go out and they will press "the new york times" for corrections, additional statements. they're going to take them on, i've been told inside goldman, to be determined exactly what they do. adam: as well they should. if they're not doing anything this perhaps even the bigger of picture? washington wants blood because of financial collapse? >> of course. adam: even with schneiderman, the new york attorney general. >> we'll get into that in a second. as you know there are hearings on this thing. this story looked like it was leaked right on the eve of these hearings on this one issue. i can't imagine that the senate, the senators that are going to hold these hearings are going to understand this if i can't get it but that's where we are. we'll see a lot more of this. goldman versus is the "new york times" and wall street versus eric schneiderman. there is an effort growing on wall street to take on eric schneiderman as effectively as a regulator. one bank i hear not part of this thing, or at least from what i understand, quote, unquote, on the fence is the biggest bank jpmorgan. the reason why they're on the
fence to basically take him on they face a ton of regulatory issues including lawsuits by him but from what i understand, this effort among the big banks, we're talking about the major money center banks here, is growing. they are talking to congress, basically to hold hearings, to do something to rein in eric schneiderman. using his perch as new york attorney general with the martin act, a very expansive act, just by the fact that you threaten someone with a martin act action, which could be criminal, you can force them to change their policies. banks, as you know are regulated generally by washington, not bit new york state attorney general. that is the case the big banks are making. we should point out, and this is kind of interesting, the biggest bank appears i doo't know, wimping out is best way to put it. lori: this is nothing new. new york ag, eliot spitzer, notoriously went after wall street. >> no, no. what's new, is the banks are trying to -- lori: now the banks are stepping up? >> they're stepping up you're right. that is nothing new. that is the problem.
they're sick of it. it has been going on since spitzer set the standard. they believe schneiderman is more political, believe it or not, than spitzer. lori: we heard moments ago, steve cohen, the trial or first hearing is set for august 26th. >> this is an administrative proceeding. a proceeding basically to bar him from the banking business, excuse me from the hedge fund business and i think it's one step but i think, regulators, based on what i've been hearing there could be more. there could be criminal charges against the firm. i think, what we're seeing here is the end, you know, this, listen, they could lose this case but they generally don't. i've heard lawyers for defendants before administrative proceedings call it the sec's kangaroo court. you kind of don't lose. they will seek the maximum which is barring. i tell you, "new york times" wrote bit today. i wrote about it yesterday. been talking about it all week. shows you how powerful the sec is. they don't have to charge fraud. charge somebody like steve cohen with failure to supervise guys
that might be committing fraud. in this case insider trading and they can throw you out of the business. it is a very, very powerful tool. lori: the investigation went on for months and months and months and boom, got first hearing right away. very telling. thanks, charlie. adam: as we do every 15 minutes we'll check markets. this time with keith bliss on the floor of the new york stock exchange. keith, what is the word among traders regarding dell? we just saw the letter carl icahn put out what, about an hour ago, urging shareholders don't do the buyout deal. what are the traders saying? >> we're watching it with interest like everybody else is. it has been an ongoing saga. the special committee better allow a vote to go through on silver lake and michael dell's proposal otherwise it turns into a sideshow at this point. we have a week to accumulate the votes to get this deal done and i don't think they will be able to do and most traders down here don't think so.
carl icahn and southeast management will come in with their proposal and make a decent proposal. adam: if michael dell loses the vote what happens to the stock price? will it go up because of icahn's deal? we're seeing 15 to $18 after the deal is done. >> not sure they go away that they will be losing at price they are overing for the company. they may come in with a higher bid. in fact they may come in with a higher bid overall. the stock is down today because of technology shares overall. everybody suspects that deal will get done at a higher price, maybe closer to $14. >> keith, we should let viewers know, they want to make money on it. we're going to texas on it. we'll be live outside of boston. lori: who is the handsome devil? adam: i don't know. but we'll be covering dell. thank you, keith. facebook is testing ads and maybe your patience. a new noteification system that may be more annoying than helpful. lori: a smartphone app taking
adam: these are live pictures from st. mary's hospital in london. any minute they will introduce their son. actually the duke will make comments. we'll have them for you when they happen. lori: what comes before, baby, adam, love? adam: and marriage. lori: courtship and marriage. tinueder is a new app taking the
dating scene by storm and now it is spreading to android. so the app uses gps to show you other tinder members nearby. apparently you anonymously like or pass on that person. if someone you like likes you back, well, it's a match and you can message one another and go on a date and get married and a royal baby. with 100 matches so far it is a phenomenon among the young and single. how does the company plan to, we're business network, folks, monetize it? we have the ceo. thanks for your time. take us back to day one. how did you come up with this idea? >> well we realize as humans we an innate need to meet new people and there were plenty of social networks out there that did a wonderful job of helping you keep in touch with your existing network of friends but there wasn't a platform out there that effectively helped you meet new people. that is what tinder is all about. lori: doesn't it play on people's insecurities though?
>> we may pop out a couple royal baby as as result too. lori: what strikes me. i'm not a tinder user, i'm happily married of course, but if i'm a user and i'm anonymously passing or liking somebody, is there any, it is anonymous, right? there is no way you would know if you're passed on? because that could be really upsetting. >> yeah. so the person on the opposite end never knows you're passing on them or not. it is all positive reinforcement. it is all anonymous. lori: so do you sell advertising? that here, how can you keep this a thriving business? >> yeah, so we do have a clear monetizaton path that we are going to take. i can tell you that it won't be through the conventional ad model or monthly subscription model. anything that we do around monetizaton will only enhance the user experience. lori: what does that meann3 exactly? >> so, i can't tell you exactly what it is but we'll be launching with app purchases
first. so, that's all i can really say at this point but it's a proven model. lori: because i know facebook and some of the other social sites are experimenting with ads that might actually be linked on to your own status line or whatever. that's really a nuisance. i know you told me you're not going to disclose the secret here but i mean is it going to confuse or delay or get in the way of your experience using tinder? >> absolutely not. it will make the user experience better. so right now, i'll give you a little example of one. you're restricted, conversations are restricted between two mutually, two double -- both sides have to actually want to talk to each other. so one of the ways we may introduce monetizaton is being able to drop a line and maybe give a virtual gift and say something, hey, i may not be the most attractive guy in the world but i'm really funny, give me a chance. lori: gotcha. previously tinder was only available on i phone. you're expanding to android.
what does that mean for you? >> it means there is much wider audience out there for tinder and especially with international growth. i mean, 70% of the smartphones overseas are android so we'll have a much wider audience that can use tinder. really excited about the launch. it is going well so far. lori: best of luck to you. justin is one of the founders of tinder. >> pleasure to speak to you as well. >> i never experienced the online dating scene. i was dating -- i feel like i really missed out. adam: as long as we're talking about the new world and social media, facebook is testing a new way of catching your eye with advertising. the social media giant will launch a new approach for its mobile gaming ads. inside your noteification tab this is where you find out who has liked your photos and who is writing on your wall. it is considered to be one of the highest areas of engagement on the app. in response to the new marketing
approach, biz founder says facebook should charge for an ad-free version. stone says they could charge them 10 buck as month. if only 10% signed up a month it would amount to $1 billion in revenue. where is the dr. evil music. one billion dollars. lori: this is the way, now. if you're not into social media, people are putting up with ads. adam: click through them quick. lori: get the 4-g. we continue with royal baby watch. live pictures from london st. marry's hospital the now famous lipped dough wing. any moment the duke and duchess of england are expected to bring out the brand new son. we'll bring you live pictures and comments when they do. we understand the duke and duchess will cradle the baby. put the baby in a car seat, return and perhaps even a name. adam: it will be great to watch comedy shows later this evening. coming up, america's shale
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tracy: yeah, so cool. what to expect from apple. wall street really anxious to hear the tech giant's results after its profit drop in a decade last quarter. we'll have a free preview of that ahead. dennis: first we have top of the hour, right then, time for stocks now. let's go to nicole petallides at the new york stock exchange. nic? >> we're looking at the major market averages which right now pick up a little steam. the dow jones industrials are up 1/of 1% at 15,583. at one point the dow hit an all time intraday high at 15,684. we had some winners here on the dow but right now the nasdaq is up a quarter of a percent but the s&p is pulling back on a day where the dollar is lower and indices are mixed. for example, drugs are doing better and banks are pulling back. look at names making moves on the dow, the biggest winner and biggest looser.
and so, you do see that one as a winner in hitting new highs here. also, then we'll look at travelers which is under pressure and that's down about 3 1/2% at the moment. you can see that down, and also, 3 1/2% to the downside, 23 negative points for travelers. you can see after earnings you do have some big moves. volatility comes into some of these particular shares. dennis: travelers earnings up 85%. no pleasing some people. thank you very much, nicole. tracy: storms off the coast of africa are pushing natural gas prices higher. fox business contributor phil flynn of price futures group in the pits of the cme. phil, this is just like a major oil platform in the gulf of mexico that is kind of shut down because of all this, right? that's part of the problem. >> that is part of the problem and it is called thunder horse. people might remember a few years ago when we had a big hurricane a few years ago and it got dislocated and was floating
around in the gulf of mexico. it is shut down not because of the gulf of mexico but it is a problem on land. enbridge had to shut down because their processing plant for natural gas is shut down. if thunder horse has no place to put the natural gas they shut down the entire platform. the problem it shuts down natural gas production and also shuts down oil production. so giving both of those market as big boost. whether hurricane season, something brewing off the coast of africa, it is early about traders are also talking about it. tracy: sure. they're also talking about gold and silver. gold pulled back after yesterday's gains, right? >> it did. we saw some profit taking in asia. some concerns that india was concerned about the recent influx of gold and their impact on the trade deficit but that's changing right now. we're seeing gold trying to make kind of a comeback right now. down about a buck 1/2. almost eight bucks off the low of the day. there is a lot of talk in this market about a very tight physical market and a very big
short position on the speculator side. tight stocks of gold supplies at the comex delivery house. there is a lot of talk we could see a big price spike if the shorts don't get out of the market in an orderly fashion. a lot of traders are watching gold and it could get more exciting as we get closer to expiration. tracy: sure is. phil flynn, thank you very much. >> thank you. tracy: we're watching arrival of the royal baby. dennis: little guy is coming up. let's remember, there have been a few billion born over the years. tracy: come on. come on. dennis: earnings season kicking into high gear but even as companies are beating on the bottom line, some are missing revenue expectations. my next guest says earning growth will have to accelerate for the markets next leg up. joining me bob doll, chief equity strategist for nuveen asset management. good to see you, bob. >> thank you, dennis. dennis: 70% of s&p 500 have reported beats on earnings but only 50% reported beats on
revenue is that a problem? >> it will become a problem if @t doesn't turn around. that is to say we do need more revenue growth. as you know the first quarter was a similar story. earnings beat expectations and revenues were ho-hum. we eventually need some revenue growth. i'm not sure we'll get it with a balance of reports for the second quarter but hopefully in the second half with a slightly bert economy and easier compares revenue growth looks better but that is a lot of ifs in my statement. dennis: you're figuring if the fed, even trimming back on the bond purchases and does the so-called taper and it won't mess with interest rates and won't raise interest rates outright for several years. is that a good or bad thing? >> well as long as the eeonomy is not operating kind of on both feet, meaning just one foot, we still need the help of the central banks. so those near zero interest rates certainly should be that help. i think in terms of quantitative easing, and bond purchases the
chairman has told us many times that he's been 100 mile-an-hour tail wind for us and he will only be 80 at some point going forward. dennis: you say having a positive view on the market depends on earnings getting back to an upward trend but now give me a bold prediction hire. are we going to have earnings back on an upward trend in the second half? will there be a positive view on the market? >> i think there will be. the question is, will it be enough. in other words, i think second half earnings will look better on a year-over-year basis than the first half. the question is, will it be enough? we may have only earnings growth move, if you will, low amid best, single digits to mid, maybe high single digits. high would be good enough to get the market going. i'm not sure 4, 5, 6% compares are good enough assuming we need earnings and therefore revenue growth going forward and that is my assumption. dennis: you also like it says here you like industrials and
tech. seems like a lot of big tech guys maybe missed out on some of the rally lately. overall though do you think stocks rise, which has been fantastic this year? i think we're up 19% in the s&p or something? is it souffle, just a bunch of hot air fed by the fed or is it real, economy is getting better, companies are earning money? >> it is definitely some of both to talk out of both side of my mouth. look, the fed certainly has been a help, we can't deny that. having said that the economy is doing a bit better. consumer confidence is up but not where it needs to be. business confidence, the same thing. we need slow by steady improvement in those areas and you hear me in the second half into 2014 i things will get modestly better. consumer spending a little bit more. cap-ex likely to pick up. the recession in europe is becoming less severe. so everything at the margin and slowly improving. the question will be, is it enough? my guess is we'll get there but you know we got spoiled.
19%, that's where we are today in seven months. we're not going to repeat that over the next seven months most likely. dennis: hard not to take profits off the table. the dow is at 15,589. i say we're at dow 16,000 or higher by year-end. will you second that emotion? >> yes, i'll second that. i think that we can get that done. that's not a big gain from here. dennis: okay. liking that. let's wrap it there. let me quit weill i'm ahead. thanks for being with us today, bob doll of nuveen. >> thank you. tracy: always my motto too. here's a big question. does dell have the votes it needs? well michael dell is going to find out tomorrow when shareholders are expected to weigh in on his proposed 24 billion-dollar buyout offer with silver like. the same vote was supposed to happen last thursday but they pulled it actually at the last minute because of lack of support. six days later might end up being too soon. the "new york post" is reporting that dell might have to delay the vote yet again. this is killer.
dell shares at this point basically flat, down just slightly. the meeting will happen tomorrow and fox business is all over it. adam shapiro is actually on his way to the airport now to report live from dell headquarters in round rock, texas. he will be there all day tomorrow and thursday. michael cross, michael dell excuse me, saying a lot of novinas if this doesn't happen. not looking good though. dennis: if you didn't like the deal, might go ahead and sell out of dell anyway. that might be your vote. we're also on baby watch waiting for the most famous brit in the world to make his debut. they don't have a name for it but they're betting like crazy on this? tracy: i hope they use spencer in some part of his name. that was diana's maiden name. dennis: dion. tracy: prince dion a rap star. coming up our special report, america's shale boom. we have pennsylvania governor tom corbett. he will tell us how natural gas
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♪ it's not rocket science. it's just common sense. from td ameritrade. dennis: a big shift at the defense department spell as major victory for wireless phone companies, internet broadcasters. the pentagon plans to auction off valuable space they use to train the military like drones. we have. liz: mack act's bottom line. >> broadband has been such a problem were this country. get this data point, the sec, government is saying by next year mobill data traffic could be 35 times it was in 2009. the information superhighway has been really crowded. the right now the pentagon has folded temporarily. they said, yes we i will agree to share spectrum, very valuable bandwidth space, spectrum space
that will go up for auction by february 2015. this will be one of the biggest government auctions in half a decade. already wireless carriers like t-mobile is saying this is significant breakthrough. the president backed this. see what the white house been saying this. white house is been wanting this since 2010. they want it because it will create jobs for economic development. mower mobile phones, like i pads. broadband speed, dennis says we're down there below south korea in terms of broadband. wireless technologies could be developed. usage charges as well. the pentagon remains very concerned. take a look at what the defense department is saying about this they're worried about national security needs. they're worried about interference if they're sharing space with companies like broadcasters. broadcasters are very worried about it and they're worried about their operational responsibilities. i'll tell you something, telecoms have been buying this space. verizon spent nearly 4 billion for wireless spectrum from cable
companies. at&t has made moves acquiring, leap wireless. tracy: we have to break in. we're all dieing to hear the baby. hopefully we will. there is the duchess kate with the newborn son. he was born yesterday at 4:24 u.k. time. eight pounds, exsix ounces. let's listen in. [applause] [shouting] [cheers and applause]
>> got a good pair of lungs on him. he is a big boy, quite heavy. we're still working on a name. we'll have that as soon as we can. first timeewe've seen him really. we have a proper chance to catch up. [shouting] [inaudible] >> i think any parent would be -- [inaudible] know what they're feeling. >> very special. [shouting] >> it wasn't. i remind -- a bit older. so hopefully you guys can all get back to normal now and we
can look after him. >> [inaudible] >> thankfully. >> no, no. [shouting] [inaudible] >> we'll wait and see. we'll wait and see. [inaudible] thank you. [cheers and applause] tracy: no name they said. prince william, very sweet, holding his son, i know dennis you will comment. you but he made cute little
comments. the baby had more hair than him. he will remind his son when he is older how long he made the media wait. thankfully he said she has her look. that is very sweet. dennis: the dow is up 42 points at -- tracy: stop it for a second. dennis: a little bit of feel-good. the dow trades on emotion and kind after feel-good moment. tracy: a feel-good moment for the u.k. dennis: i think it's a wonderful thing. tracy: actually this child will help the u.k. economy. when everyone starts buying mugs with that kid's name on it. dennis: there is the whole multiplier effect and stimulus plan. tracy: i'm hoping they use spencer somewhere in honor of diana. dennis: given the way the queen felt about the whole thing i wonder if that happens. i think she runs the place. we'll see. tracy: at least we got to meet we're still waiting on a name though. nicole pet waiting on the name with bated breath. she is down on the floor of the new york stock exchange. >> that is exciting moment.
the nation is waiting and coming out and being so loving. the boy is very cute and very loving. it will be a day that goes down in history. we made an all-time record high on the dow jones industrials. today we moved to 15,604. we're watching restaurant stocks in particular after quarterly numbers. wendy's has been gaining significantly. off the highs of the day but they had higher profit. they hit a new annual high. on the other hand you're seeing domino's pizza pulling back after its quarterly report. it delivered a profit that did beat the wall street expectations but you do see it pulling back. it hit a 52-week high prior to moving into the red. back to you. tracy: thank you, nicole. we will see you again in 15 minutes. so america's shale boom could untap energy, solve california's fiscal problems, once and for all. can you imagine? we'll have all that next. dennis: first here is how the
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in london the world now has its first look at royal baby. oh, my goodness, the duchess of cambridge and prince william brought the baby to the steps outside of st. mary's hospital moments ago to the cheer of bystanders and me. prince william said that he is a big boy and they're still working on a name. prince william by the way, they just put his son in the car seat, that famous car seat we're waiting to see. and prince william, he was driving the suv and they drove @he family away. kate was in the back with the baby. another news, in boston the police photographer who leaked official photos last week showing bloody boston bomber, suspect dzhokhar tsarnaev has been disciplined. sergeant sean murphy has been placed on desk duty at this with no contact with the public until a further investigation is completed. murphy said he released photos to counter the "rolling stone" magazine cover. parents are relying more on grants an scholarships instead of their own money to pay for college. according to a sallie mae study,
average parent spending for college costs dropped by a third compared to three years ago. those are the news headlines. get you back to tracy. i don't know about you, but i'm ecstatic. tracy: how could you not love a baby, come on. healthy baby boy, big brother to who knows who will come next. she definitely will have another one you know that. >> soon. tracy: thank you, arthel. we keep talking about babies. we have to move on because america's shale boom, that is what we're talking about, our week-long series looking at nation's push for energy independence. we kicked off yesterday with legendary investor t. boone pickens and his plan to break us out of our dependence on foreign oil. >> put together now, show some leadership in washington, put together a north american energy alliance an then use the canadian crude, the mexican crude and fill ours out with theirs and then you've got a real deal going because it gives
you all the security you could ever want and you don't need the opec crude. tracy: well, california could be a big part of the solution. the golden state is potentially sitting on 15 billion barrels of oil in its untapped monterey shale field. that is the equivalent of five years of oil imports. our next guest says there is no single opportunity as big for california or the country quite frankly than the monterey shale. joining us, mark mills, a senior fellow at the manhattan institute. the numbers are crazy, if they are really true. we're talking 15 billion in tax revenues for every bill barrels of state oil produced? economic benefit could reach a trillion dollars. these are crazy numbers for california. >> they're incredible numbers but it's a little hard to talk about oil on the day of the royal baby coming out of hiding. that is more exciting. no, they even want to frac in england now.
so he will oversee an economic revival al in england when he is king. tracy: there's that. >> the numbers are absolutely true. the monterey shale, this is not a new discovery. this is predicate that is important. we haven't discovered new oil in america. the u.s. geological survey identified the monterey survey, 100 years ago. what unleashed is technology. it is smart fracking. we don't drill dry wells. it is steer wells. california used to be the biggest oil producer. it could become number two in export oil and refined products and make hundreds of billions of dollars of income for the citizens. hundreds of billions of tax receipts for the state. you can pay ridiculous salaries to prison guards in california if you just unleash the monterey shale. tracy: that's good news. north dakota overtook california as one of the leaders in all this. >> right.
tracy: california full of environmentalists. momter ray shale goes through wine country, santa barbara area. there's, there's a lost concern as to growing things in this area. what is the state found as far as health issues? >> well, first of all the modern oil and gas industry is much more like a manufacturing business where you're essentially synthesizing oil out of rock 8,000, 9,000 feet under the earth. industry in the sense people have in their heads. from the infamous oil spill in 1969 on the santa barbara coast. the modern technology of gas and oil exploration has changed as much as television has last 50 years. locking your heads into the black and white tv is the same as oil industry 50 years ago. tracy: there is tech revolution going on, isn't there? there is underground economy of tech geeks coming up with new
ideas. >> a lot of little tech geeks. you put your finger on exactly the key thing here. this is revolution on two things people are sort of missing in this dialogue about the oil and gas change in america. one is that the tech centric revolution, it is information technology, big data, analytics imaging unleashed oil and gas engineering. engineers in the oil field spend half their time on a pc, not on the oil rig. the other big issue here, this is not a big oil change. these are small, mid-sized businesses. >> right. >> this revolution came from 18,000 small and mid-sized businesses in america that took risks with new technology and exploited it. this is not exxon and bp in it. tracy: right. >> this is exciting american entrepreneur revolution. tracy: mark, i've got to go, but quickly, i have to ask you, governor jerry brown a big environmentalist is kind of weighing this. which way do you think he will go. >> i'm still betting the governor understands technology can make it clean and safe. he needs
hundreds of billions of dollars and can do it right sensibly. i think he threads the needle and he goes for it. tracy: from your lips to god's ear. mark milton from the manhattan institute who by the way has a degree in physics. i don't know many people that have gone far in physics after the first class. this. >> thank you. tracy: we have much more in the hour, our special series, freeport, michael smith makes the case for exporting natural gas. pennsylvania governor tom corbett tells us how the shale boom helped the keystone state. we have all that ahead. dennis: also ahead we have apple under pressure ahead of quarterly results out two hours from now. we'll tell you how some are embracing for disappointment. that's next. ♪
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serious inveors are choosing fidely. now get 200 free trades when you open an account. ashley: 90 minutes until the market closes. nicole: coal stocks have been out of favor this year. the first has reported its quarterly numbers. that would be peabody. peabody doing very well. reporting a surprise second-quarter profit. they also helped move along the rest of the coal group. taking a look at arch coal and alpha financial resources. peabody has been raining and it's costs and analysts have
been impressed with that. tracy: coyle closing up again. it just keeps going up. a string of disappointments from the tax act there. will we see the big outlier? jo ling kent in the news room with more. >> not expecting much when it comes to apple's earnings today. an eps of $7.32. after the bell today, if apple meets on eps, it will be down to the nine dollars.
this alongside new products. over the last four quarters, shares have fallen each day after earnings have been released. take a look at the last four quarters. after iphone sales missed estimates. it would be especially bad news with apple stock down nearly 40% over the last 12 months. currently pricing a move. of course, investors and people like myself will be very interested in future products.
tracy: full earnings coverage. tune in tonight after the bell on fox business. you do not want to miss it. don: how much of our natural gas should be sold overseas. japan, china, south korea. a premium. the obama administration signed off on the bid to build and export terminal. the first approval in two years. we have michael smith with us now. we appreciate you being with us, michael. >> thank you for having me. the approval is for us to build the first two strings of capacity to export gas from the united states.
our customers -- ashley: how do you ship natural gas. i somehow see a whole bunch of weathered barbecues and those little gas tanks all filled up? >> natural gas will change its form to a liquid. as a liquid, it can then be transported long distances. the side of a beach ball down to a ping-pong ball. they put it into large vessels. ashley: what is -- how much
higher does it have to be? >> well, right now in japan, they are paying about $15 in ncf for the gas. today, natural gas is selling for $3.75. to get it there, it is a very expensive process. for us to get our money back with a good rate of return, with what we charge for our services and then for the cost of billions of dollars worth of specialized carriers, it will cost about an extra $6.50 to get it to japan.
ashley: you can sell that baby for $15. what do you say to that argument? we have been overly dependent on foreign oil. finally, we are taking back the night. now you guys will just sell it overseas to the same people that have been sticking it to us for decades? >> i do not think they have been sticking it to us for decades. i do not understand why it is okay to export corn and no one feels about that. they won't yell about is selling a product we have had for 100 years. ashley: you are shifting points.
>> i think it's has to do with those. natural gas is the cleanest burning fossil fuel. until we can switch over to other sources of energy, at least we will displace dirty coal. otherwise, japan would have to burn it. ashley: carbon emissions from utilities dropped to 20 year lows. we wish you well in the best of luck. thank you for being with us today. michael smith of freeport. >> thank you. tracy: we will have much more coming up. governor tom corbett tells us how his state has completely benefited from it all. ashley: first, it is time to check ten and 30 year treasuries. ♪ announcer: where can an investor be a name and not a number?
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spending. that is unheard of in broadcast spending. four decades, univision has all new original programming. in the key demo, univision is up 6% this month. disney's abc is down 4%. comcast, nbc, down. it has grown 37% in ten years. now 53 million people. it is growing fast. advertisers, take no. tracy: those are some fighting words. it is a quarter till.
time for stocks. keith, what do you think of this market? one of the levels was the old, old all-time high. there is really no overhead resistance at this point in time. the sales figures are not spectacular for this quarter. we knew that they would not be. we expected to grind higher. tracy: these are fun, fun numbers. what do you think will happen with the apple earnings? >> i think that they will come
right in line. even still, if they hit the number, what the street expects is down dramatically from a year ago. we knew that the sector would be weak this quarter. apple will just add to that. their are a lot of competitors. they will come out with great new products. i am really curious going forward. tracy: you and everyone else. thank you, as always. >> my pleasure. ashley: what do you think they will name the new baby? >> that was my next questionn i got cut off. tracy: the dow is up 52 points. how the big guys are dragging on
eventually, we will be getting into some of these. it is really growing jobs in pennsylvania. tracy: you are also getting migration from other states. if you can explain to us what other states charge when they do fracking and that in their state. >> we have loyalty taxes. we have sales and use taxes. in fact, we have raised $1.8 billion since 2007. we decided, i decided, that we taxed enough on this. we wanted to make sure that the industry comes to pennsylvania.
the impact fee, 60-70% goes back to the communities and the county that are directly impacted. what we have raised so far in two years was $404 million just on and impact the. >> who knows where it is up. >> someone comes to the state government, but most of it will go back to the counties. it can be used in the schools. it can be used in the courthouses. it really goes to them for them
to use as they see fit. tracy: there was a study recently about the impact on your drinking water. >> the national energy technology lab, it was done about a different wells. they were testing to see if the fluid was working its way back up to the rock formation. it was done at 8000 feet. 3000 feet above that, there was no indication that the fluid was moving up to that. this was a very good sign. i am sure that there are many people that are a little leery about this. tracy: the jobs created in your
state alone are enough to keep testing. the president has basically called not only a war on coal, but also a war on jobs. >> these are good paying jobs. we have good uses for coal. we need to address the issue of our energy in a balanced approach. i believe that here in pennsylvania, i wish the administration would go along with it. coal can be used properly.
>> thank you for taking the time to be with us. >> thank you very much for having us. tracy: there is much more ahead. clean energy fuel ceo is trying to get our trucks and cars by building america's natural gas highway. ashley: "countdown to the closing bell" is nnxt. liz claman sits down with the dean of the top business school. of course, with will be watching apple very closely. ♪ ♪
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♪ liz: the tech giant has a big drop in the stock price. we will tell you what to expect. is now the time to buy or sell the stock? goldman sachs, goldman claims british landlords. they are trying to find out if the power house is playing a game of musical warehouses. a high chance of landing a good job. the type of job may surprise you.
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