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tv   Varney Company  FOX Business  August 6, 2013 9:20am-11:01am EDT

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♪ if i ever find jesus, i'm kicking his ass ♪ ♪ imus in the morning ♪ ♪ >> part-time nation, that's america today, so says the house ways and means committee. good morning, everyone, it's a striking headline, the committee uses government numbers to show part-time work dominates the obama economy. the household survey says, seven of eight jobs created are part-time. opposite is president obama who will speak on the success of his economic policies. and speaking in phoenix where home prices have risen sharply and his support for home buying.
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and jeff bezos, stepping forward as the top ceo. the question, is he the next steve jobs? "varney & company" is about to begin.
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>> president obama in phoenix today. is going to take a victory lap on the country's real estate recovery, but he wants more. here is his plan. help families save up to 3000 a year by refinancing. cut red tape so responsible buyers can get a mortgage. wind down fannie and freddie and the housing recovery. this fits president obama's theme, i am helping the middle class, it's the republicans' faulty can't do more. however, the president is struggling with that message. i've got one negative item on the economy this morning, actually several, but here is the big one. part-time workers dominate the jobs scene. new numbers from house ways and
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means committee using the household employment survey, government numbers. look at this, since january 2009, we've added 270,000 full-time jobs, that's four years. during that same time 1.8 million, seven out of ten jobs created under president obama's watch. part-time work. all right, second, troubling numbers on student debt, one in eight student borrowers defaulting on loans and about half, nearly the 1 trillion in student debt loan going unpaid, there you have it. two big negatives from the government's own figures today. we're going to start and try to make you money here on "varney & company." how is this for a number. 40 billion dollars, that's how much money investors pumped into stock funds in july, big number. now check the price of gold and that's where the market actually is this tuesday morning. well below 1300 and we're now down 16 bucks at 1286. you can't forget one of the most
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unpopular men in sports, alex rodriguez suspended 211 games for performance enhancing drugs, doesn't matter, during appeal he can still play and expect more of this tonight. >> alex rodriguez [crowd booing] >> [ male announcer ] how do you get your bounce?
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♪ the same old song, but a different feeling since you've been gone ♪ >> who picked that? and president obama taking a tour in phoenix, and home ownership at a 20-year low. he speaks later in phoenix. the opening bell. come in tres knippa with something. jeff bezos is the next steve jobs, are you going to contest that point of view, tres knippa? >> it's hard to contest that. the same question was posed in 2011 when steve jobs passed away. let's be clear, steve jobs revolutionized the music industry and jeff bezos shut
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down book stores as we know them. what i like what jeff has done, he doesn't really focus on super short-term gains. you're talking about a guy who is a visionary here, a guy who accumulates things that appear to be unrelated. you know what that means? that means this is a guy with a vision. stuart: yet again, you got a dead right because you totally agree with me. you're a good man, good to be back. the opening bell is ringing and we're down a tiny bit and expecting a flat market at least in the early going today. a very, very low volume. it is after all, august and we're down 14. and general motors has cut the price of the volt. the 2014 model will start at just under $35,000. 5,000 less than the current model. you get about 7 grand worth of tax advantage, buy a volt now it's going to be under 30 grand. so, adam shapiro has it made any difference to the stock? >> they're takiig a hit.
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gm shares down at the opening bell 1/10 of a percent. they're having some trouble with this stock and it's down 1% the hoping bell. the people's republic of california have quotas and giving these things away on a 102 day supply. and this stock is down 1% already. stuart: the people's republic of california, an excellent start to the broadcasting day there. thanks, indeed. shah gilani is one of our stock watchers, do you like general motors at 36? >> i do like it here, i like it here anddbuying more at 34 and 32. if it's up above 30 i'm nervous, the voltregister, it's a blip. 23,461 in all of 2012. stuart: the big investment they're going to have to write-- that's a prediction on my part speculation, i think they will he' write it off. >> cutting the price will help a lot.
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they're above the prius. stuart: and market share for apple's ipad. look at this, down to 32%. it was at 60% in the tablet marketplace a year ago. and they're still dominating the market, however, that's down and the stock is doing what, adam. >> they're down 1/10 of a percent, stuart. because of what you just talked about. tablet share and they're down to almost 32%. samsung went from 8% of the tablet market up to 18% according to ibc in the last quarter. stuart: we've got it. and shah, you like apple. >> yeah, i like at 400. below 385, i'm nervous, but-- >> wait a second. 468, 468 now. are you buying it? >> yes, i would buy it here and accumulate it lower 2.6% dividend. more products in the pipeline.
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be about 170 by year end. and 11.71 pe. >> we hear you. yesterday, let's go to facebook, the stock closed above 38 bucks, that's the ipo price, maybe the next item has something to do with it. baby boomers are jumping on the facebook band wagon. 60% over 50 are on fooibs, 43% over 65 use the site and also up big. the facebook stock price, adam. >> essentially flat. it's above $39, but not really getting a big boost. people your age are creating facebook with uniforms and it should keep going. >> i thought you were pretty good on the new york stock exchange to start with and you messed it up. and hold on, shah, do you like facebook at 39? like it? >> no, hate it at 39. a huge gap between 26 and 30. stuart: all of those people of our age. >> that worries me. it may lose some cache with the
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younger generation. i just don't like it here. stuart: i've got one more stock market question. in the month of july, over 40 billion dollars moved into stock mutual funds. that's a huge inflow. >> that's the sounding bell of the great rotation. 69 billion came out of bond funds and 24 billion this month so that money is moving into partly to the sidelines and equity mutual funds in terms of etf's and i think it's part of the great retation and people are moving out of bonds and moving into equities and this is one of the reasons as i said the other day, you've got to be in the market to win it, that's where we're going. >> so you approve it. >> i do. >> and thanks. after this,'s chief jeff bezos net worth, between 26, 28 billion dollars. he is personally paying 250 million for "the washington post." and imogen lloyd webber says
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that this deal could give him more influence in d.c. over politics, really? >> and profit is paper, buy influence to an extent. washington d.c. obviously a company town. this is a company paper and busy trying to make inroads into washington d.c. last week obama was doing that great big jobs speech in tennessee at an amazon warehouse. and amazon has been dealing with sales taxes and that big drama recently is going to come up against regulators moving forward because it's just so big. so, yes, it buys him a seat at the table, so it's a factor buying it. only 1% of his fortune to get a seat at the table. >> do you agree with that strategy. do you think it's a good idea for the top guy in a top company to approach politics and get involved in politics, and get involved in washington, the company town, the political town? is that a good move? >> it's necessary. the tech guys have been doing that although the guys are spending a fortune on the lobbyists in washington and this
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is very clever. add to which the guys libertari libertarian leanings are fit for "the washington post." if you're a journalist and writing about e-commerce. you're thinking about it right away. >> you're libertarian, i'm not aware of the proposition. >> and publishing and he likes books and moving into newspapers and if anyone needs rescuing right now, any industry that needs rescuing is newspapers. no one figured out how to make it work in the modern media world. >> it doesn't rescue it so much as translate the medium, a print and hard copy and puts it on his amazon whatever. >> kindle. stuart: the on the kindle and makes money out of it. >> eventually. he's very good at long-term investments. and it's from the ipo and-- >> everything he makes he puts back into the business and i think he's doing that again. last one for you. my theory is that jeff bezos,
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we're british, we can get away anyway we say it it's fine. stuart: she's right. >> it's true. is he the next steve jobs? i say he is. >> i think he could well be. this is a very, very smart move and he's got a seat at the table in washington which is what you need to move forward. stuart: you ever met him. >> no. stuart: he's a private guy. doesn't give a lot of interviews, and gets in the media and goes away with his 25 billion. >> that amount. stuart: you're british. >> yes, i'm british. stuart: i think it's a testimony to america's openness, you're a good idea, brains and you can make money and enrich everybody. >> you see it with bill gates and warren buffett and giving to charity. stuart: you'll never go back, you realize that. >> i know, it's coming to me now. i've got the green card, i can stay. stuart: there's the headline of
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the day, ladies and gentlemen. i am gene lloyd webber, come and see us again. >> thank you, stuart. stuart: president obama continues his push for his own economic policies and goes to phoenix today. he's touting his policies on housing. and how his administration helped the recovery. not so fast, everybody. at the top of the hour, one realtor who really disagrees with that. 10:00, that's coming up. to the big board, we're down 70 points lower, thinly traded markets, but we are down. check the price of oil. i've been away for three or four days and 106 bucks, exactly where it was on friday when i left. 9% growth. 3% unemployment. we have the mayor after a boomtown in texas, can you guess what's driving that kind of growth? it's in texas, that's next. ♪ if you're going to play in texas got to have a fiddle in the band ♪
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[ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? >> we better check the dow industrials, we're 80 points down and very little trading going on. and it's after all the first week of august and that's what we've got the down side move. and we're down 16 bucks there, 1286 on gold. you want to talk about a boom town. the city of midland, texas, look at this, an unemployment rate in the 3% range and growth, 9%. now, a lot of that prosperity has got to do of course, with energy we've invited the mayor of perry. >> his honor is here again. and now, this is all about
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fracking, isn't it? >> fracking. >> that's what's going on in midland. >> fracking, horizontal drilling, technology based. stuart: and you've always been in oil-based. >> correct. stuart: fracking is new technology and open up old wells and get more out of them. >> the oil has been there a long, long time and more ways to get it. it's been impressive and this is a little different than your boom, bust cycle it's based on technology not just on price. stuart: traditionally, every oil town in texas and elsewhere, it's a boom and a bust cycle depending on the price of oil. you're not going to escape that. >> no. stuart: we plan on it's going down, not like 106 or 100 and we think about it 70 or 80 and we're planning on that as the-- >> what are you doing? >> buying hedges, or do some hedging strategies to kind of protect yourself. stuart: the town? >> not the town, but talking
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about the energy. what the town does, that's a good question. what we have is a good economy right now, lots of sales tax coming in so we're taking that money and investing in infrastructure. so, roads, water lines, et cetera, et cetera. we have good times. and we recognize when that stops. it's not if, it's when. we're not borrowing money to live on, we're basically using it as we have today. to build the things for our future. >> have you got a big pension line? you've got 113,000 people and not that many civil servants. >> no, probably a hundred, a thousand employees, he we manage that, it's a liability, but we're looking at what kind of pension obligations do we have and making we've got them covered. stuart: you just said you're hedging in case oil comes down. >> no, no. stuart: it will come down? and i think a lot of people are saying what on earth is doing above 100 a barrel the world's
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economy is showing down and-- it will come down. >> absolutely. stuart: do you have any time frame? >> no, that's hard to understand. because this current market is not understandable today so how do we know what's going to do in the future? >> i think we've the got a sound bite of president obama laughing about the he keystone pipeline producing only, ha, ha, ha, 50 jobs. have we got that bite? let's roll that one, please. >> and they keep on talking about an oil pipeline coming down from canada, and estimated to create about 50 permanent jobs. that's not a jobs plan. stuart: it was never a jobs plan for the republicans and the president is laughing there. >> we built a 200 million dollar pipeline for water line, almost the same size as the keystone line and we employed about 300 people during construction
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phase, plus or minus, there was construction, marketing, i mean, people getting land so 300 people for a year, it was significant. and i think of just scaling it from a 200 million pipeline to whatever keystone is, it's an incredible amount of jobs. there are permanent jobs keeping this water line? >> once it's built there are a few employees, 16, 18 people it's not a big long-term job plan, but i think the big question for us was, we have water for a long period of time. that's the big question with keystone, we need oil for a long period of time. we need energy independence in my opinion and we also need to have a way to keep our energy costs down for of our community. stuart: i know why you want to appear on this program occasionally because you've got a boom in progress and you're the mayor of boomtown. >> it really is at the end of the day, a supply and demand issue and the market figures na
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out and communities need to follow it and understand it and they have to do it differently, but the same thing. >> fracking, the world capital, midland, texas. >> i enjoyed being with you today. >> thanks for coming back. >> a pleasure. >> the spirit of steve jobs alive and well in the form of amazon's jeff bezos. i'll explain that in my take next. you know throughout history,
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>> i've got it crossing the wires for you. president george bush younger bush, underwent successful heart surgery to open up a blocked artery: and profits, 16% gain for fossil. here is what we've got new at 10 for you. and straight to phoenix, the efforts on housing today is expected to take a victory lap for his policies, should he? we have a realtor who says he should not a should not a-rod suspended for performance enhancing drugs, why is he still on the field? and student loan debt half a trillion not being repaid, one in eight in default. all of that in our next hour.
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i think it will be true to say that even the most hardened news hound was shocked by the news to jeff bezos bought "the washington post." nobody saw it coming. and today, the analysis centers on what is he going to do with it, how he might make money or bring it into the amazon empire. here is my take on the story and i think we're missing the point here and that is, jeff bezos is emerging as the next steve jobs and amazon as the next blockbuster american technology company. occasionally, it is the individual, the personality that drives an industry. that was true of jobs and i believe it's true of bezos. consider this, like jobs, bezos
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like jobs, bezos is intensely private. i think he looks down on the media and dismisses his self-important journalists asking dumb questions, but you know, there is virtue in keep your distance from prying eyes and like jobs, bezos rewarded his investors with huge gains in the stock price and amazon has not seen the plummet that apple shares went through and i don't know whether it will, but if you bought amazon in the last couple of years, you are very happy with jeff bezos. so, that's my point. you're looking at yet another in a long line of american entrepreneurs who has truly enriched us all. unlike some people on the left, i don't care how much jeff bezos has enriched himself. he's worth north of 20 billion dollars. i think that american is all about the freedom to employ your brains, drive and talent to the benefit of all, and jeff bezos is doing just that.
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it's of summer left but this on tab for the second hour. and promoting the housing policies in phoenix, and tonya is here. a-rod toast, getting grilled with him. of branding guy says you cannot come back from lying and
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cheating. part-time nation. al is the media reporting the employment crisis? we have the research and what do young adults moving back in with mom and dad, would you date a guy with lives with his mom? as "varney and company" rolls on. stuart: in a thinly traded market the dow jones industrial average is down 85 points above 15,500. we have news that investors on $40 billion into stock funds in the month of july. charles always said the little guy had missed the rally. that suggests you are wrong. charles: y? after 9,000 points not getting in? they missed a large part of a rally. stuart: the little guy moves into mutual funds and putting $40 billion into stocks in july.
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they missed -- charles: 9,000 points they missed, one of the top five rallies in the history of mankind. stuart: you would rather they didn't? charles: i'm the only person asking people to invest in the market every day. not trying to scare them out. they should never have gotten out. stuart: so you were right. charles: big news. warren buffett, washington post, started buying stock in 1973. by 2004 his position was $11 million. all records indicate he held and if he did he is up 9,000 prayers and. teammate $1 billion of of an $11 million investment. you buy and hold and write out these dips and that is how you became wealthy. stuart: the modern reality is you don't stick around for months. you say no, buy it because you like it. charles: the most frustrating thing is i have a business where
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i have to do things i don't want to do. obama 35 or 40%, if it pulls back a little bit they are scared, they want to cancel. so many great stocks, buy and hold and never look at it. stuart: you approve of me buying microsoft. hold on a second. the disappointing outlook from the clothing retailer, american eagle. where is the stock. got to be down? >> there down to basics in person. year to date they are down 18%, they hit an all-time 52 week low, stock trading $16.67. they put out a profit warning yesterday afternoon and at that to neutral, there is a problem with weak consumer demand, not good as we approach the back-to-school buying season especially for retailers but look at abercrombie and fitch, they are getting trouble too. their shares are down 6%.
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you today there are up 1.3% in the face a problem. in france they are being investigated by french authorities for only hiring employees the thunder appearance. abercrombie and fitch getting a lot of attention because when you look at the ads you wonder are selling clothing or soft core porn. that is funny. stuart: you have a wetter with those records. you know how to grab attention on a slow tuesday morning. excellent stuff, adam shapiro. president obama is in phoenix today and he is going to promote his own housing policies. team investments, a realtor based in phoenix, i don't think she is too happy with the president. good morning to you. without getting too technical you are saying these programs are programs designed to help middle america with their housing problems.
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you are saying they are all failures? >> yes. they are all failures, it was implemented and been changed three times, they vetoed the last change which was supposed to give $3,000 to homeowners and it only help state hundred ninety thousand people as of january of 2013. that i would consider a failure. when you look at the foreclosure that was supposed to help people foreclose, give them money, let them start over. banks didn't have to participate and when you look at what banks do, they really service of it is in their best interests to make the most money by prolonging that because they get paid whether the homeowners paying or not. when you look at the modification program, no bank wants to be modified because that mortgage is still under water so they are doing, reducing the interest rate but not reducing the principles so no bank wants that and there was
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so much paperwork they couldn't do it. stuart: you operate big time in phoenix and you have been on this program for a long time. why are you doing so well? are you selling houses to? >> everyone. we are seeing personal family home buyers come back to the market but for a long time as has been investors. we were buying houses when it started at $60,000 renting it hundred dollars a month and now they're buying a one hundred thousand dollars a month and run down $1,000 a month. those are great returns as the mark appreciates phoenix has seen 20% according to case schiller as america appreciates that is a long-term hold. i agree with charles their real estate is a buy and hold, you get in's the long term and create cashflow ended is a residual. stuart: you don't think it is legitimate for president obama to be in phoenix where home prices go up 25% in the year, you don't think it is legit for him to be touting the success of
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his own policies? >> his own policies have failed. what he needs to do is keep the 2007 debt forgiveness factors two more years of people can continue to short selling and keep the mortgage tax deduction, interest rates need to stay reasonable and people will come back to this market. is still less expensive to buy than it is to rent. and foreclose or short so. stuart: i'm told the real-estate market in phoenix is beginning to slow down because you don't have enough homes for sale. is that true? >> it is the inventory. we are seeing it steady and with the gains we had people cried baubles though steady is agreed thing. study is a healthy market and that is not bad. stuart: thanks for coming back with us today. we do appreciate it. the dow is down 88 points. we have some movement in a couple markets, the dow is down 80. that is a solid decline even
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though in percentage terms it is not very much. charles: a little dancing as post jobs report. stuart: what about gold, we are down 20 points active 1281. i see little bug in our screen, down $21 an ounce of downside movement in stocks and goals and the student debt crisis clearly in full effect. the consumer financial protection bureau, a government agency reports one in tweet student borrowers are defaulting on their loans and about half of the trillion dollars in student loan debt outstanding is going unpaid, the disease huge number. charles: it is a huge number but the gist of the piece is there are all kinds of programs that can help people and a lot of people aren't taking the advantage that it is a reflection of the job market more than anything else and how much these student loans cost.
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people under 30 their average loan is $22,000. in 2005 it was $15,000 growing at 300% there inflation, absolutely mind-boggling how fast this is going but i would caution republicans on turning this into a time bomb because we talked yesterday, is a time bomb or a cash machine? obama mid 50 one billion dollars of student loans last year and he made this much money off of exorbitant rates on student loans that he has also been cast as the guy who will forgive students so get the best of both worlds. he gets the use of votes and all this money at the same time. in the meantime you get republicans saying you will implode. etna dragons overnight. this is a red flag. stuart: over a longer period of time. a shocking sign of the times. 36% of the nation's youth, 18 to 31-year-olds still live at home.
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political prospect editor joins us now in new york, welcome to the program. we can put this down overhanging student debt, lack of jobs, got to move back in with mom and dad because you are out of money and have to pay the loan but something else at work. is this a fundamental shift in america's youth culture? >> you hit the nail on the head. more than just the economy. it is a definitive change in attitude. my parent's generation was unacceptable to the new parents basement. if you couldn't find work you made were, you couldn't make work you took the dog outside your industry but my generation has become a generation of dependents. if you can find a job you want using your parent's this meeting she knows and cried with the bachelorette. it is unacceptable and a change in attitude. stuart: back in my day, and i am old enough to be your grandfather, in your parents's barista this didn't come out of college saddled with a great big chunk of student debt.
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they really didn't. now they do. what are you going to do if you are 20 something and as charles suggested $20,000, $30,000, maybe more. what do you do? >> couple that with the obama economy one nine million jobs have vanished in five years, an insurmountable barrier to overcome. make it work. i know my father would have made it work. it is harder now absolutely, and -- charles: he says it is no fault of your own. what ever position your in your the victim. if you not working it is not your fault. we talk about because it is financial redistribution of wealth i find the redistribution accountability to be the thing that is hurting this country even more than economic policies.
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>> absolutely right, you can major in european arts. just follow your heart, liberal free for all mentality when at the end of the day you have to do something to add to the economy and be productive and be a functioning adult. stuart: you sound like me. only 40 years separated but you sound a lot like me. i promised viewers on would ask would you date a young man who is living at home with his mother? >> i wouldn't. you got to find a job and get out of your parents' house today and me but i've a fiancee and he has a job and is out of this aerospace and. stuart: they using gis speaker young people in america or just the very near a section? >> i speak for very narrow section, the bigger section is waking because they have to. stuart: if you talk like this, you are a conservative, you are on the right of the political spectrum, you talk like that to those young people, get a job, get out house, stand on your own two feet were you get their vote? >> no. stuart: what are you doing? >> the reality will force them
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to wake of four years down a road when you have been living in a parent's the center four years you have to wake up, reality forces you to wake up we hope. stuart: thanks for joining us, good to see you in new york. i am calling jeff besus. >> they are on fire. 65%. justin davis hit a 52 week high, 6 ended $5.18, shares up today, 6%. look backward in december of 2004 this was $90.50, steadily getting a boost today, a 52 week high, $600, $0.18 a share. stuart: a guy with a $26 billion personal fortune can definitely up $4,250,000,000 for the washington post. the bid is secure. >> he could buy the chicago tribune, the boston globe could have gotten a better deal.
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stuart: well said. you are doing a fine job in new york stock exchange, just great. appreciate it. we have the numbers. employers moving workers to part-time status to avoid obamacare. newspapers are making the link but major networks are not making that wind. we got the full research now. la [ male announcer ] these days, a small business can save by sharing.
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stuart: a bad year for betting against stocks. what is going on? charles: the next 24 hours are huge. five names to help them get back in the game or completely crush them. these are sure to kick out the game the market will go on automatic pilot. the report after the close, yesterday gonna bounce with obama doing the wrong line, had $250 million market cap yesterday. last time they reported they beat by 136%, and shares are short. the stock is up huge. the next one first solar, we talked about this a lot. they missed last time they reported. not necessarily an expensive stock, times sales, 22% short. "after the bell" these two reports move minimum 10% one way
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or the other. stuart: there are two stocks here, first solar, solar, both of the major investments getting against them, stock will go down. if they get better results for example stock goes up so those people who are betting it doesn't go and buy it to stop getting huge. charles: or they stay short and on paper. this is the worst year ever for the shorts. these two stocks that have crushed them. if they go after the market closes it could be devastating. three more names later on too. stuart: thank you. when -- from the house ways and means committee this number, seven in eight jobs under president obama, part-time. how has the media covered this? newspapers are making the link between employers not hiring full timers because of
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obamacare. tv networks are ignoring this connection. dan with a media research center joins the company with all the information. let's break this down for a second. we have a lot more part-time work, the newspapers are saying that is because of obamacare. there making that connection. you are saying this tv networks are not, they are not mentioning obamacare connection. is that what your research says? >> that is exactly it. we have major employers, subway and hardee's and regal entertainment announced obama impacting how they hire. we have these huge part-time statistics, two thirds of jobs, 62,000 job number that was already disappointing are part-time. you would think they would make the connection but we look six months of network coverage and they don't make the connection at all. you can find it in the new york journal and the washington post's and cbs or nbc.
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stuart: why is that? the tv networks are skewing left of center, some of the major newspapers sku left of center. why this difference of coverage with tv and newspapers? >> one of the things you always find on broadcast networks they don't want to talk about a very limited time. in large newspapers they got more space so they may not emphasize the argument but include it. the networks, the 60 seconds spot, the unemployment numbers are disappointing and they do that briefll but won't go into detail so they leave out the context of what is going on and the context is obamacare and obamacare. stuart: let's shift subject. was a shock to wall of us and probably knew when jeff besos.
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what is your reading on this? >> it was surprising, really surprising. my reaction was very strong. this is fun wearing the heels of the boston globe sale and we have seen tons of newspaper sales in recent memory but the key thing is he came out and said the values will stay the same and that is the crux of the problem. this is an institutional role left pro democrat most influential paper in washington, the nation's capital and the first thing he says is we are not going to change anything. basically kicked to the curb anybody who might be conservative or even moderate and their values at some point is there value. stuart: we hear you. i find it fascinating, my jaw dropped when i heard that news. i didn't hear it until 5:00
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yesterday afternoon and i was truly shocked. good to have you with us again. keep the research flowing our way, we appreciate it, thank you. does anybody like this guy any more? suspended 211 games for his involvement with performance enhancing drugs? why is he still playing? he has been suspended, he is playing. why is this? we will ask the judge. a-rod, more of this tonight. ♪ ♪ [ male announcer ] how do you get your boue?
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stuart: it is a thinly traded first week of august market meaning volume is low in deeds and we are down 91 points. look at the share price of ibm down 2%, that is a drag on the dow industrials, down 30 of
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backups but ibm below 200, downgraded by credit suisse, strong profits coming from the watchmaker fossil. where is the stock? >> of 52 week high, $0.25 a share, year to date of 37%, today there sylvio berlusconni sense but it is that revenue beat, $706 million expecting $691 million and sales were up dramatically, europe of all places. stuart: europe of all places contributed to fossils', an endless stream of good stuff from adam shapiro, you might be back. thanks very much. than we have this. alex rodriguez suspended for the rest of the season accused of using performance enhancing drugs. here it is my question.
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of this is a private entity why can't they just. the guy? they want to get rid of him, boo him. he is still playing, he is appealing. andrew napolitano is here. and this is a contractual thing. i just don't get it. why can't you say get out of judge napolitano: the answer is the players' union which is one of the wealthiest and most powerful labor unions in the country actually struck over what is engage in a work stoppage over this and other reissues and this is the ability of player to reject the decision and enjoy the benefits of the contract during the period that his appeal is being heard. the agreement says the appeal has to be filed within 20 days and silent how long it will take but commentators this morning know more about this than i do on christmas time. the issue is he gets to play the rest of the season, let's say
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the suspension is up held. what becomes of the 60 games remaining in the season. that is of to the arbitrator. the arbitrator can go away with that and relieve them of the penalty and tacked on to the first sixty games in the 2015 season. there was no obligation of due process because this is of private agreement between players and owners. players have chosen landowners have agreed collectively in the collective bargaining agreement, they have a right to file the appeal. does the law mandated that right? of course it was a freely negotiated contracts. stuart: i would maintain that this is against the interests of baseball as the game. the union is opposing the interests of the game. judge napolitano: think about what the union did. this labor union said yesterday we commend the honesty and self sacrifice of fill in the blank,
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not a rod, the 12 guys who led the doing wrong, ryan braun, the 50 day suspension. at the same time they commend that they are backing up the rod in his appeal. how do you justify that other than g r? charles: it hurts the image of the game, hurts the league but i argue this is what unions have done and business in general there was a time we needed unions desperately in this country to the point it -- at the expense of the company and the company consumer. judge napolitano: one of the charges against a rod is obstruction of the investigation and do you know how it is alleged he obstructed the investigation? there's a company called biogenesis, guess what a rod tried to do according to the charges? purchase biogenesis so he could destroy the records of biogenesis. that is how much he has
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available. we can't sell to you. stuart: i am told he is going to play in new york friday night. why i am told i don't know what the source of this is that the average ticket price of that game up 17%. judge napolitano: will the crowds play good money to cheer him or to boot him in his home stadium where he once was a genuine hero? stuart: i think they will do him. charles: they will be kicking some batteries of of the infield. judge napolitano: even if he hits the ball they are going to boo him. stuart: a sad story all-around. judge napolitano: it goes on and on. i thought it would be over with yesterday. we will be living with this. stuart: if you get caulked doing this performance enhancing drugs like in baseball to have the power to say you are out, gone. judge napolitano: what will a rod say if they put him his hand on the bible and make and admit he used it, will he say he didn't use it and the record of
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this company are wrong? i don't think -- charles: i think his argument is the punishment is too severe. judge napolitano: that is the discretion of the arbitrator. the arbitrator should flavor the players. i don't have anything against the arbitrators they always favor the players but we never had a case quite like this. stuart: he is 38 years old and coming to the end of his playing day. judge napolitano: if it works the way they wanted to working won't be on the field until 40. at age 40, young for the three of us, 15 to $17 million a year. stuart: it is in his contract. judge napolitano: you got me. stuart: come back later in the show and talk about eric holder's travel expense. judge napolitano: as if i don't have an opinion. stuart: we know obamacare is taking a toll on full-time workers but looking forward as the law doesn't affect what will that do to the democrats politically come election time?
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could they possibly lose the senate? good question. we will deal with it next. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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>> obamacare, yes, it is a drag on jobs. yes, a drag on the economy, but will it be a drag on the democrat's come election season. doug schoen joins the company right now. do you think it's going to cost
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the democrats the senate? >> stuart, it could well. i can count quickly five seats in play because of obamacare. north carolina, louisiana, arkansas, montana, alaska, all democrat incumbents and states where obamacare is very unpopular. >> so, why, why did democrats stick with the democrats on obamacare? wouldn't you expect to see some peeling away, some joining with the republicans to defund it and hold it up, delay it for a year? doesn't seem to be happening much. >> well, with the republicans having gone in what i regard as an extreme direction with funding. they've made the loyalty and politics is more than one issue in one day and the white house i'm sure said to those five democrats and others if you don't stay with me on this, don't come to us for campaign help. >> how do you see this going forward politically? we've got the exchanges up and
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running on october the 1st and more implementation in stages. how do you see-- look, i think it's going to be chaotic. what's the political impact of that? >> well, i think you're raising two questions, first, how will implementation go? and i think that's something time will tell. the indications with the exchanges, the individual mandate, obviously, suggests that there is much potential for what you term chaos. i think that's fair, stuart. and if that happens, you will see democrats to use your word, starting to peel away any way they can by taking great care not to offend an administration that, as you well know, can be vindictive. >> i think that the defunding effort will fail, that's a judgment on my part, i don't think it's going to win, at the same time, i don't think that the whole piece of legislation and i don't think it's going to be repealed. it's a piece of legislation and i think it's here.
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i think it's here to stay. chaos and all, but i think it's here, what do you i say? >> yeah, i think it is. i think the real question is if the defunding effort leads to a government shut down and a fight over the debt ceiling, it has the capacity to back fire on the republicans if they're once again perceived as overreaching. but on the merits of the legislation, stuart, i don't think you could be more right. >> now, you're in arizona today. i think air in tucson, is that correct? >> i am, yes. stuart: are you going over to phoenix and maybe suggest to the president that you could work for him in the next three years? >> stuart, there are a few things i'm sure of in life. one is that i will do better staying in tucson on vacation rrther than making entreaties that i'm sure will fall on deaf ears. >> are you cheering on hillary clinton for a run in 2016? >> well, i think she's going to run. i think she has some obstacles
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in her path, but she's the acknowledged front runner and she will probably almost certainly get the democratic nomination and looking at the republican field, she's got to be seen as the clear favorite right now. >> on that note, we'll leave you on vacation and we will no doubt see you back in new york whenever you-- >> i look forward to it. >> i look forward to it. >> thank you very much indeed. i've got to show you the big board and make sure that you're seeing this. we're down 116 on the dow jones industrials. and charles and i are looking at it. charles: summer doldrums, anti-climactic, the jobs report. take your pick. stuart: we're trying to come up with the reason for the the day. charles: the reason is more sellers than buyers. stuart: all right. advertisers, they started pulling away from a-rod back in 2009 when he was first accused of doping. one of the most disliked men in
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sports. does he have any shot of any kind at any kind of rebound? clearly, unlikely. and after the break, we're going to bring in someone who says that a-rod is toast. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investment our one-second trade execution is one more innovative reason serious vestors are choosing fidelity. now get 200 free trades when you open an account.
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and they're slamming for lack of accountability. amazon announced a new amazon art marketplace giving access to 45,000 pieces of fine arts from 150 dealers. more than 4,500 artists are included. and amazon one of the largest on-line collections available and shares of amazon down not much, but are below 300. pandora says it raez. the active listeners, 71 million and pandora's stock is flat. a-rod one of the most disliked in sports. does he have a shot at any kind of rebound? our next guest says absolutely no chance. you make a great team.
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swelling of the lips, tongue othroat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. >> maybe news for you, but you are not shopping as much as you used to and two big name retailers are getting hurt. who is it? >> we're talking about j.c. penney and urban outfitters. they've got a new marketing chief coming, but look, they're down year it to date 32% and today they're down 4%. they hit a new low today. and we're going into the crucial back to school shopping season and they need to turn this picture around. urban outfitters, they're down 6%, down today 4%. one of the things they face is a potential lawsuit from the united farm workers and apparently put it on a shirt they were selling. and that's a no-no, one of the reasons the dow is down today.
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according to mark, the trade deficit number much improved. bad news because the talks is a defense to pullback. >> we needed a reason du jour and you gave it to us, that's interesting, adam. thank you very much indeed. have you been betting against stocks? that would mean shorting stocks. if so, charles says watch out. first, short is green mountain, right? >> can i quick, someone watching the show and want to know what we're talking about shorting. stuart: go. charles: essentially when you a brokerage firm, xyz at 100. sell it. borrow from the firm, sell it at 100 hoping it goes down to 70 and you buy it at 70 and repay it to the firm and make that $30 difference, that's an elementary way of doing it. three big names that the big time shorters, guys who put billions of dollars on these things over the next 24 hours they're going to have their back's broken or up big, green mountain is one. they hate the stock and
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ironically enough, barons had a negative piece, opened down at 75 for no reason at all turned around and went to 82. 37% of the stock is short. another one, solar city, one i happen to like, report after the bell missed the last two quarters and 21% of this stock is short and finally, test la. we know tesla is killing them. the shorts go out on their shields and stubborn. the people are down 2, 300 percent on this stock from being shorted and big time huge guys and we know about the herbalife deal with the big time guys and they're big time people short this stock. and 37% floated short. another hit on this one and i've got to think they're going to really, really be absolutely crushed. if they beat the numbers and they give good guidance, this stock could be up 20, 30 points. stuart: a lot of people don't realize you can bet against a stock and bet it's going down and make money when it goes down. a lot of people don't realize how big that is in the
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marketplace. charles: it's huge. the big risk for the average person when they do it, there can be unlimited losses. when you buy a stock, you could lose 100%. short a stock and it goes to 50, you could lose 400%. stuart: i don't know anybody who shorts stocks, individual traders or investors. charles: i don't either. i bring it out there, it's good to know who the big boys are trying to crush or-- >> a long time ago i was sitting on the set interviewing a guy with eastman kodak, going to short it, and go down? what are you, a communist? >> a lot of people think you're betting against america. stuart: they do think that. the next guest says the a-rod brand is dead and no way it's going to recover. the branding expert joins us right now. so, it's dead, is it? not him personally, but his brand. he's utterly finished and i think that's the conclusion of most people, right? >> yeah, absolutely. it's not even something new, if you look at his sponsorship
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portfolio and endorsement. since 2009 when the first news came out.. it's only 2 million bucks, which is a lot of money perhaps to you and i. not a lot of money to a guy who makes $350 million. not a robust portfolio. >> hold on a second, the real killer for this guy is the mail may not make more money on his actual playing of baseball, but lost a fortune in endorsements, right? and you say, 2 million dollars. he makes only $2 million a year in endorsements, that's it? >> that's right, and he's got a lot of companies that were endorsing him, pepsi, nike, kraft, colgate. compared to what the other guys are making, it's a rounding error. on the field, sports absorbs a lot of problems if you win. he can still keep making that money, but he's fnot going to make it from the advertisers and that's where they make the big money. >> suppose a-rod is 18 years old
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and made the mistakes, i expect he could come back and brand is not dead forever, america is a good and for giving place? >> i think if he did the right stems. the guy tends to be tone deaf and doesn't hear what the fans are saying, there's another way to come back, join the tour de france and he would be like everybody else. that's sarcasm. the brand of baseball has taken a huge hit, too. >> i think so, too, it's been america's sport, hasn't it, america's pastime and the kids and folks looking to this for wholesome entertainment we're not getting that anymore. on the other hand, let's remember in sports, what matters is winning. look what the yankees had with steinbrenner, suspended twice, a felon. didn't affect their plan because they won. >> i'm going to throw this at you. i'm saying that the upcoming brand in sports, the unsolid
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brand in sports is european top flight soccer, what do you say? >> european top flight soccer rules the world everywhere, but here and the interesting thing, in the past, the u.s. has been the sun retating around us and everybody look to us. but now we've become more global, more aware of what's going on elsewhere. and with our demographic changing, that's going to become hugely important in this country, i agree with you, stuart. >> interesting. you should have seen manchester united and treated like the beatles. >> sound like you're biased there. >> and hey, bruce, good stuff. thank you very much indeed, sir. >> thank you. >> attorney general eric holder taking personal trips to atlantic city. martha's vineyard, long island and i didn't know that, didn't know that the attorney general to travel on that. we'll discuss the outrage over a
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>> obamanomics, obamacare, obama phones. the great political give away.
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joining us tonight, leading hedge fund macro investor, the fortune's group micat 7 eastern. stuart: eric holder taking personal trips all over the northeast and the taxpayer pays. the attorney general paid 4.3 million in taxpayer funded trips in three years, including almost $700,000 in personal costs. the judge is back with us. i did not know that the attorney general or any cabinet member for that matter could put $700,000 of personal travel on to the taxpayer? >> i must tell you, i did the know know it either until your producers asked me to examine this story, but apparently the theory is that they are entitled to the trappings of office, principal which is protection in his case, wherever he goes. that's an extraordinary amount of money for the taxpayers to
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bill. look, if he gives a speech at northwest university and infamous where he said the president could substitute his own version of the constitutional requirements for due process, decides to kill americans overseas, except to keep up the killing, i would xkt u.s. marshals on a government plane. if he and his wife and children go to martha's vineyard do they need the trappings of office or is he so well-known he needs to be protected wherever he is. if the answer to that second question is yes, i respect his right to be protected, but at what cost? the cost is really extraordinary. >> come down the food chain, if i can use that expression, to lesser cabinet members. surely, they wouldn't have the same-- >> well, the secretary of the interior, wouldn't be a lightning rod. >> how about sebelius as health and human services, high profile? >> i would imagine she gets the
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same, quite the same level of protection, but she could command the same level of protection. stuart: if you make the argument for safety and protection of a government officials, in that case, that's legit. if it's by a nice hotel room for your wife and family and-- >> and in fairness to eric holder, i would be surprised if his hotel rooms and meals is on there. i would think it's the hotel rooms and meals of those assigned to protect him and keep him in touch with the rest of the government. stuart: we will be sure to check, judge. >> i bet you will. stuart: and judge napolitano with two appearances today. >> what did i do to deserve this. stuart: if you're not careful, you'll be here tomorrow. and judge napolitano, your take on my take is next. [ male announcer ] how do you get your bounce?
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with the bounce dryer bar, my clothes will be fresh out of the drawer for weeks. and it's great when things last a long time. well...most things. [ male announcer ] how do you get your bounce? [ woman ] can't regret fresh. >> i gave you my take on washington post.
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here's what the viewers say p. tom sayings, my take is that it is, was, the american way to reward hard work, it's good to know it still exists. thank you, tom. jerard says, someone had to buy the post, been going downhill for decades, and any change improvement. charles, what do you say? >> i agree. >> the next steve jobs. >> yeah, well, there's no doubt about that. the papers, overpaid for the post, but he can, and it's a platform for him for his ideas. i don't think it's a profit center. >> or change the editorial policy of the washington post at all. >> for the most part, they agree with everything he likes already, and let's face it, washington face was changed, the nation thing, the paper died a long time ago. >> thank you. dagen, my time's up. it's your time now.
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dagen: was he already steve jobs? >> fair point. dagen: glad to see you back, i love charles, who we'll see shortly. the u.s. military evacuating 70 embassy personnel from yemen, and form, cia agent, mike baker, on fighting terror. newspapers are the new trophy wives for the soup ire rich. that's what we say. jeff buys the washington post, but will this be a lasting marriage? actor george clooney calling out hedge fund manager dan lobe saying he's a greedy carpet bagger who doesn't know what actors do. a scandalous affair, one guest says that's what lawmakers did by opting out of obamacare before they went on vacation. all of that and so much more coming up this hour on "markets now." ♪


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