tv Markets Now FOX Business August 21, 2013 1:00pm-3:01pm EDT
loved there is concerned about motives with these cases. >> is the tech giant ready to buy its way into tv. >> it is not samsung, it is not apple. it is called hands on talk. adam: it is time for stock now. the dow is down for the fifth day in a row. twenty we have seen a lot of selling. last week was a dramatic one. a loss of about one third of 1%.
there are a few names squeezing out some names. there is a lot going on, of course. apply existing home sales rose 6.5%. you can see it remains a mixed bag. we should also note that toll brothers came out with their fiscal order profit. it fell 24%. there are a lot of buyers that rushed in. you can see it is up about a half% right now. >> our next guest says we are in
for some turbulence. do not worry just yet, we see some great buying opportunity. joining us to talk about all of that is scott wren. we are in a dip now. you would expect that we would reverse that. >> i think so, adam. pullbacks are opportunities. it is the same thing we are telling them now. so far, not big on a percentage basis. it is an opportunity. i would like to see a little bit more. we want them prepared for the next year and a half. i think it will overall be good for the market.
adam: do you think that the worst is over for them? >> the back-to-school season has not been very good. these retailers have been putting out a lot of unenthusiastic statement. consumer confidence will improve. i think it will improve over time. businesses will be more willing to do some spending. if you get the confidence up, things like industrials will do good. i think it is where clients overall need to be.
adam: let me talk about a technical issue would get some people interested. many trading lower than they were a year ago. we do go up quite well on the s&p. >> usually, that is a good indicator. we do have a large percentage of those industry groups that are down and are down big, that usually says you will have a big move. even with only seven down year-to-year, we have had about 17 princes on that.
on average, the market moved up about 11%. 1850-1900 for the s&p 500. that is just another way to look at it. adam: it is always good to talk to you. thank you. >> gasoline the fine and the energy pits today. we have phil flynn in the pit of the cme. >> it was a big mess by a lot of analysts. gasoline imports were down. gasoline exports were up. we produce more this week than we did the week before.
it leads to a drive on and supply. we did see stronger demand in the u.s. that is kind of a positive sign. >> we have these supply concerns. we are not seeing this at the pump anytime soon, are? >> once we get past the summer blonde, prices will start to fall. the other thing, of course, we are getting help from the crude oil it. we are getting slammed on crude right now. if you look at the drawdowns, pushing was pretty stable. i think the numbers look a bit
>> that would be great for you to. it could this celebrate the tv channels. >> the last purview safe from the web and is on demand downloads have been live sports. >> here is my question, how do they make money off of it? dennis: look at cbs. google sales are six times more. they could afford the contract
just like that. >> they get a portion from time warner. >> how will i get google on my tv in my living room? dennis: it plays anything that will play on your laptop on your tv. adam: denis, thank you very much. >> when is a tax break really not a tax break? when the money on its state back adam: new cases may soon be on the way involving large financial firms. we have details for you coming up.
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adam: welcome back to markets now. the anniversary to the financial crisis is just months away. those that contributed to it are not out of the woods just yet. peter barnes is in washington, d.c. with more. peter: the attorney general spoke to the "wall street journal." amid some criticism that the administration has not been tough enough. holder said "my message is anyone who has inflicted damage
should not be of the belief that they are out of the woods because of the passage of time. holder to a client to tell journal specifics. jpmorgan chase has come under more legal there in the. one regulators said she is worried that the justice department has waited too long. >> it helps make sure that there is full compliance and generates a behavior that we want to be in our system. i wish we would have had earlier energy on this and more consistency about the kind of cases you are bringing.
>> she said she does not know of any specific cases or number of cases that the department could be pursuing. adam: what has changed? the administrative and trying to get some blood. >> i think that is what she was in line in her comments. we also have a new sheriff in town over at the sec, mary jo white. as we saw in some recent settlements, they had to admit wrongdoing. that could also spill over into so these cases at the justice
department. adam: we are going to check markets now. two big losers on the s&p. nicole: down one quarter of 1%. staples has been a number one loser on the s&p 500 today. down 14.5%. they came out with their number. weaker than expected quarterly numbers. watching this office retailer, staples down $2.40. then there is that smart. many of their numbers were pretty good. the one area that really showed weakness was the same store sales. that was the problem in their numbers. they did raise their full-year outlook. they did have some good sales
numbers. you are seeing the stock down about 4%. back to you. tracy: to tax or not to tax. charles payne is here with the help progress the of it all. charles: the worst place in this country and it just got worse. finally someone says that the law is unconstitutional. it was a smart idea on california's part. if you cash out, you know, we will cut back on your capital games tax. it sounds like a pretty smart deal. you have a successful business
instead of selling it and moving to texas, you decide to stay. they will reach back five years. i have to tell you, this is nothing. this comes completely out of left field. tracy: it blows my mind that they pick on small business. the 16 it is absolutely amazing. they were ranked in the worst state. how do you grow an economy there?
adam: has the administration in california said this is ridiculous? charles: i have not heard anything from jerry brown. i do not know if there is any political ideology. to arbitrarily say let's go five years. once you sell a business and make decisions, you sell the money. you make other decisions. tracy: charles payne, it is a great story. we have 400 million in tax breaks. adam: target misses the bull's-eye. why he thinks now is the time to buy the retailer. take a look at how the dow is trading. ♪
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this are under discharged from the army. he will continue to give egypt humanitarian aid. the government is reviewing the program to determine which, if any, should be suspended. the japanese nuclear regulation authority said it it is extremely concerned that the contaminated water could seep into the sea. those are your news headlines on the fox business network. tracy: target shares taking a hit today. our next remains bullish. joining us today by phone is
senior analyst at m km partners. you are saying no is the time to buy these shares. >> i have been constructive for a while. the second quarter results were a little disappointing. it was more dilutive than i expected beard i continue to think target is very well positioned look at the slower u.s. sales as temporary. i think they will see an acceleration in the second half of the year. i think canada is still going to be a real win for the company. it will just take a little bit longer. tracy: let's talk about canada before we get back to the u.s.
you are saying -- why is that? >> they are opening a lot of stores in a very short time. the other half will open in the back half of the year. they started off with a bang. what seems to happen in the second quarter, the weather was very unfavorable in canada. they come out of stock issues. they are not seeing the shopper frequency on some of the basics they have seen in the u.s. tracy: they are expanding their assortment of food.
>> it has been working for them. they have been adding fresh food to their stores. it is nearing its completion. the vast majority now also create an expanded assortment of fresh food. the overall business has been a little bit slower. we are not the benefit as much as we did say a year ago. tracy: if the convent turned around, generally the thought is, you know what, i do not have to shop at target anymore. >> we did not see much of that in the second quarter.
i would highlight that walmart was pretty weak in the second quarter. it was a little bit of a funky. with the weather. yeah, i think -- the other thing that people have been talking about, there was a lot of big-ticket spending. it makes a lot of sense. i think that things will pick up from here and target continues to do a fantastic job advertising. they have more exposure to home. yes. i think we will see, you know, a pick up your. tracy: i am glad you mentioned that payroll tax. i think we are feeling it more and more.
adam: ups plans to stop covering employee spouses in the health care plan. why they are blaming obamacare in that decision. tracy: would you wear this? adam: yes. i would wear it. pretty cool, actually. ♪ [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees.
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tracy: it is that time of day. time for stocks. every 15 minutes we head down to nicole petallides on the floor of the exchange. i know you're looking at home depot and loews. what's going on? >> right. home depot and loews in the same realm when you talk about home improvement. look at what loews is doing
today. up 4.3% today for loews as they came out with numbers. earnings up 26%. they beat the street. double-digit revenue growth. raised year-to-date numbers. it is number two compared to home depot which has more contractors and more stores ultimately but really loews has doctoring lowe's impressed wall street. many analysts have targets above $50 and at 46 bucks they think there's upside potential. back to you. adam: thank you, nicole. starting this fall, ups will end health insurance coverage, at least offering it for 15,000 of its employees spouses. that will save the company, roughly $60 million a year. partly blaming palm care, the shipping giant bs one of highest profile employers so far to exclude spouses from the corporate health care plan although that is growing and growing among companies. in a memo to its employees,
rising medical costs combined with the costs of the affordable health care act have made it increasingly difficult to provide the same level of health care benefits to our employees at an affordable cost. the new employees applies to spouses of non-union employees eligible for health coverage elsewhere. what do you mean? tracy: too bad. adam: but they can get health care coverage perhaps their employer or somewhere else. not as if they're cut off. tracy: what do you know? what if one spouse doesn't work. adam: if the spouse isn't working they would be eligible. tracy: this is the beginning of the fallout. this is what they're saying t will start here and continue and continue. where will they all be? we won't have health insurance too. you watch. adam: is the second floor watching? tracy: i hope not. adam: all right. tracy: fallout from obamacare doesn't end there. u.s. businesses are hiring at a growing rate. the only problem that three out of four of the nearly one
million higher this year are part time. part-time jobs go along with the obama health care thing. liz is all over this with lizzie mack's bottom line. >> looks like the same debate that spouses have at kitchen table on what is going on with health reform. you know what is strikeing? this is based on government data from the bureau the labor statistics. of 963,000 jobs created, this is based on household survey, a whopping of were part-time jobs, 737. that is driving down household median income. it is helping to undercut gross domestic product, the consumer 70% of the u.s. economy. what we're seeing also, is, companies, i have the memo from forever 21, they're blaming health reform. a growing number about companies we're tracking last two years
are blaming health reform. forever 21 will drop associates and other employees to part-time status. other companies are basically dropping workers to part-time status. majority of those companies we showed are blaming health reform. the other thing too that is striking, new study out of san francisco federal reserve which is the turf of janet yellen, may be the next fed chief, basically d.c. policies, tax-and-spend, regulation, dropped the, excuse me, worsened, worsened the jobless rate by 1.3 percentage points t would have been 6.5%. not 7.8% last year. that means 2 million more people could have been working in the u.s. workforce. i will give it back to you. tracy: lizzie mack, people are talking about it everywhere, dining room tables. adam: restaurants going to part time as opposed to full-time. >> hot technology is what it is all about. about beating first with the
competition to the hottest new gadget. our next guest is doing that with the smartphone watch. it is called a hot watch. ph technical labs is using kick-starter to beat heavyweight samsung an apple. you heard of them. its founder and ceo joins us right now. thanks for joining us. this watch, is actually a bluetooth device. hold it up to the camera. it is bluetooth, so you have to carry your smartphone in your pocket? >> that's correct. it is tuned to the smartphone. you can make a phone call, receive texts, respond to email, facebook, twitter, you name it. tracy: how? >> by using, you have your watch here. get a call, lift your hand, start talking. it is a private conversation. we have a speaker phone as well. using hand gestures it's a private call like holding a phone. adam: you put your hand to your ire, sound waves you can hear much better. i don't have to fear walking down the street with the watch talking to somebody that tracy could hear, someone else could
hear. >> that is correct. your palm is amplifying device. we have a directional speaker using palm as amplifying device. adam:th is the speaker. that's correct. adam: you say you hold it up to your ear. >> hold it up to the ear make a crystal clear private call. tracy: then you're saying you can twist your hand and deny a call as well? >> correct. lift your hand to accept the call. shake it to reject a call. during a call wave bye-bye to end the call. adam: this is available. buy it for delivery in december. how much? >> on kick-starter starts at 109. retail price will be 169, 199 and 209. adam: do you have a device you wouldn't need smartphone and have all the capabilities without the bluetooth connection. >> no. we're dependent on a big screen. if you want to write a long email or gps or camera you still need the phone close by. tracy: i before you came on. i talk with my hands. i would be dropping calls all
day long. but, you said there is capability to turn the gestures off. >> that is correct. tracy: how do i answer it? >> we have a multiprojector screen. you can use a touch-screen to answer your calls. adam: all right. thank you very much for coming in. >> thank you for having me. adam: your daughter saying talk to the hand. she will be talking to the hand. tracy: i guess. some day. i don't know. adam: some day? this falkan buy it now. tracy: that is crazy. >> from kick-starter. thank you. tracy: check it out. kick-starter. when the nyse teamed up with ice earlier this year, officials at nyse thought it was more of a merger than takeover but that is not the way it is working out. charlie gasparino is here next. adam: 10,000 pounds of quarters stolen from parking meters. just how much it is worth and how the fbi happened even better how you can do it, maybe not. ♪ [ male announcer ] these days, a small business can save by sharing.
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outfitters are down 10% after the teen retailer forecast weak sales and profits for the back to school quarter. william ackman sent a letter to shareholders admitting he made mistakes with some high-profile investments. founder and ceo of pershing square capital management said the fund may sell its nearly 18% stake in jcpenney. he left the company's board last week. that is latest from the fox business network, giving you the power to prosper.
talk about the bank of intern. >> i want to get his name right. maurice earnhardt. we'll get autopsy result tomorrow. 6:00 a.m. new york time. 8:00 a.m. london time. remember he is a london intern. here is the interesting thing. we all pulled all-nighters. this gentleman pulled, you know three all-nighters. i think what the autopsy will show was there anything extend waiting? there is rumors about him suffering from epilepsy. we at fox business network and fox news have not got that confirmed. the autopsy should come, should show some of this. fairly tragic situation. i will say this, you know, i know a lot of interns. we, you know, it is a rite of passage for inturns on wall street to work exdreamly late particularly investment banking with sales and trading. investment bankers stay all night. they cut the deals. they do all the work and get
paid but paid sometimes until 6:00 a.m. in the morning. >> right. >> there is this macho attitude who can pull as many all-nighters. we don't know why this gentleman died but he did. apparently some still has to get nailed down. first cut. three all-nighters in a row. apparently more than 70 hours. hearts out, condolences to the family. unfortunately this is a story we have to cover. one thing i will tell you what we're hearing from banks they are starting to look at their intern policies. do they push the kids too hard. that is what they're saying on background. they're not saying it publicly. bank of america is not coming out publicly. they have potential legal liability. it the nyse story is fascinating. the merger occurred in december. ice, a computer in atlanta took over the storied new york stock exchange. i interviewed neared neared, ceo of -- duncan neiderauer on the floor of the new york stock exchange when this happened. we were first to break this was not quite a merger but takeover
by ice. we did that the night before it was announced. they seemed like they were a pretty good team. i talked to duncan personally. he said he likes sprecher. the officials at the new york stock exchange are bracing for massive cuts from their side of the aisle. 3,000 people that make up management employees of the new york stock exchange are likely to get, likely to, there are people there, whether it will be significant job losses from that as part of this merger. the other interesting thing from what we understand, officials from what we understand are largely cut out of americaner discussions. give you my sources the can't tell you who. sources very close to the discussions, first-hand knowledge. most of the stuff, the post-merger discussions, how the company's going to look when the merger closes which i believe is in the fall is being handled by jeff sprecher and his team. my understand duncan is playing a role but largely advisory. the rubber meets the road in atlanta.
let me get this out. we should point out nyse officials believed that they were going to play a bigger role in these discussions. they have not, so far. and, we should point out that neiderauer sim self will stay with the company, stay with the company one year after it closes of the he will be president of the combined entity, ceo of the new york stock exchange. we should also point it that the new york stock exchange has about 3,000 employees. this is kind of interesting. it is, more than growing pains. i mean when you have a firm like the ice, right? it is computer firm. very lean and mean. some of the people i know on the board there. this is, they're bearing down on this and you know, the new york stock exchange has a global operation. which they are going to shrink and it is a rude awakening to the people at new york stock exchange. adam: could they be shrinking too far though? could they be cutting to the bone as opposed to get being efficiencies and eliminating duplicating positions? >> i think yes they could be. i think that will probably be the case that duncan will make along the way. kind of out of his control. he sold when it came down to it.
i think they have less than 1,000 people in atlanta. when computerized company, you know, the ice does options over a, over a computer network. when that buys the storied new york stock exchange which has this global, sort of presence and then getting to your point the new york stock exchange would say, listen, we are a marketing company and in many ways. we go out and get companies to list on our exchange. we market saying if you list here, you get our imprimatur. ring the opening and closing bell. it's a good thing. share hold like having stamp of approval. like compliance and due diligence on the company. that's what they will say. in order to keep getting companies to join the new york stock exchange we need a degree of infrastructure. that is where it will go. it is pretty interesting.
tracy: charlie gasparino, you called it a takeover from the beginning. adam: thank you, charlie. we'll check in with jonathan corpina on the floor of the new york stock exchange to see how we're doing. we're down 50 points. jonathan, do you see this turning around anytime soon? >> not just yet. this will be rest of august will be. there is not a lost information for investors to feel confident to get back in this market. we have comments coming out of washington today. expect what we've seen in the past, the statement will be held very close to the chest. we'll not get a lost information. everyone is waiting for when is this tapering going to occur. we'll not get the information today. next week we head into the end of the summer, last week of august. once again as we head into sent, i think that is when we see things pick up again. adam: earlier guest, jonathan, told us we could have the s&p close around 1100 for the year. do you think that is realistic? >> that is realistic. look where we are, where we've been and where we're going to go to. we still have a full month left in that quarter.
investors will feel confident in the market once we get past this tapering. adam: jonathan corpina. thank you very much. >> thank you, sir. >> okay, so keep the change. a man in buffalo, new york actually took this kind of literally. after rigging more than 75 parking meters and collecting nearly $210,000 worth of quarters, over eight years, oh, yeah, this is according to the fbi. mechanic james badarazzo and accomplice. adam: you were raising your hand. tracy: another italian, i'm saying, tampered with the meters. i can say that because i'm italian. took the quarters and back to the bank so tellers wouldn't get suspicious. i have a vending machine business. adam: that's the ticket. >> this happen happened after the new electronic meters were bringing in significantly more money. adam: how much more. that is how much more revenue going to the electronic. tracy: inspector clousseau, what
took them so long? he was sentenced to 30 months in prison. adam: it was prison having to roll the quarters. can you imagine? tracy: they have fancy machines you dump them in. all the banks have them. adam: banks. what about the guys running vending operations? tracy: there you bottom. i don't know. apparently they're smarter than a lot of us. they made some money. adam: speaking of vending operations, we're waiting on the fed and investors are counting down to the minutes of the federal reserve's last meeting due at top of the hour. 2:00. tracy: everyone is looking for clues as to when bernanke and co will start dialing down the fed bond buying program. we have less than 10 minutes to go. so don't go anywhere. ♪
adam: the dow is headed for the longest losing streak of the year. we're down on the dow 45 points. hewlett-packard is biggest drag. we're minutes away from the release of the fed minutes from july meeting. will it be a september is remember with a start to easing? investors will be passing each or parsing word for some clues. parsing. they will read real close. treasury yields are flattening out, currently unchanged after hitting a two-year high after exist home sales highest in years. tracy: parsing because the ben bernanke doesn't use the word taper. what does he mean? adam: cut. tracy: commodities are down more than 1% after the weekly inventory report from the department of energy. we're at $104 a barrel. gold moving lower as well on strength of the u.s. dollar. adam: you will want to keep it here on fox business.
tracy byrnes and ashley webster will bring you complete coverage of fed minutes. you keep hearing, everyone on wall street says it is priced in. it will not be immediate. tracy: we'll see how the market reacts to the word taper. adam: sounds like something you have to take your dog to the vet and get medicine. adam: tapeer. >> we have all-star panel. former fed economist and steven ol'er in and above pavlick will help us break down the minutes. don't go anywhere. ashley and i will be right back. she loves a lot of the same things you do.
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and launch your dreams. at legalzoom.com we put the law on your side. i'm, like, totally not down with change. but i had to change to bounce dryer bars. one bar freshens more loads than these two bottles. i am so gonna tell everyone. [ male announcer ] how do you get your bounce? [ woman ] time for change! ashley: welcome back, everybody. i'm ashley webster. tracy: i'm tracy byrnes. we have breaking news. the federal reserve is about to release minutes from the last meeting. wall street is anxious about any clues about the taper, when will it be. we'll have market reaction. ashley: fear of higher interest rates ahead helped surge sale of
existing homes. are they rising too high to fast along with holm prices? one real estate ceo will weigh in next. >> hewlett-packard, august earnings come out, august earnings in the past were disasters. ashley: let's go to peter barnes with the fed minutes, peter. >> ashley, tracy very little in the minutes to suggest that the fed will start tapering its qe bond purchases in sent. the minutes show fed members still favoring waiting on the economic data before making any decisions to dial back quantitative easing, but, the fed members do appear to be considering changes in their so-called forward guidance including the economic thresholds that they have laid out to start raising short-term interest rates, the federal funds rate, which is a separate tool from qe. for example, they said they want to keep the federal fund rate near zero as long as unemployment rate is above 6.5%. they might be looking at tweaking that. let's start though with the qe language. minutes say, quote, almost all the participants confirmed they
were broadly comfortable with the characterization of the data contingent outlet for asset purchase, bond purchases presented in the june post-meeting press conference by chairman bernanke but they debated how to move forward with tapering quote, saying a few members emphasized importance of being patient before deciding on any changes in bond purchases. a few others pointed to the contingent plan and suggested might soon be time to slow qe. on their forward guidance, the minutes say, quote, several participants were willing to contemplate lowering the unemployment threshold. let me pick up the rest of this language. if additional accomodations were to become necessary or if the committee wanted to adjust the mix of policy tools used to provide the appropriate level of accommodation. and also, they say, that a number of participants also remarked on the possible usefulness of providing additional information.
but as you remember, back at the end of july, they voted to make no changes in the pace of qe. $85 billion a month. they continued that, but they kept the language on when they might change short-term interest rates the same. ashley, tracy. ashley: interesting stuff. peter barnes, thank you. we'll kind of pick this apart as we go along. tracy: but you see the markets falling off. we'll go to nicole petallides on the floor of the exchange. i think the market is waiting to hear already, when is it going to happen? >> we're at session lows, just holding 14,900. session lows here, folks. down almost triple digits on the dow jones industrials. treasury bond ticked down as we get the fomc minutes. u.s. dollar rises, versus its rivals. there's a look the at dow jones industrials as we noted here at session lows and we have seen obviously a lot of selling. the vix, the fear index is up over 7%. looks like even has gained
momentum in the last few moments. the dollar, as i noted very strong. we are seeing our 6th straight session of selling on the dow jones industrials. we haven't seen this all year this year. it is worth noting that. also we got in some existing home sales numbers. those are good news there, up 6.5%. areas among hardest hit are telecom and utilities. they're very interest rate sensitive with high dividend yields. utilities index has been off 5%. telecom sector has been off 4%. but the groups have been under pressure here and certainly a lot of selling going on. back to you guys. tracy: some members of the fed saying be patient. doesn't look like the market is very patient. nicole petallides, thank you very much. ashley: one way or the other. let's take a look at the 10-year yield as we continue to break down what we heard from the fed with regard to taper and everything else. this is interesting we've seen a spike in the 10-year yield, here we are, up four basis points,
2.5%. joining us to break down the minutes is former fed economist, stephen olinner, at aei and. thank you both for being here. stephen, let me get the initial reaction what we heard from peter barnes through the fed minutes? >> i think this wasn't really very surprising. i think the fed is on track, absent really surprisingly bad data to start tapering at the next meeting in september. i think they're really on track to do that and september is more likely than december. although of course today's minutes didn't definitely say september would be the month. ashley: bob, let me get your reaction. we saw a quick selloff, a drop in the market perhaps stalled down 91 points now on the dow. what's your thoughts on what you heard? >> nothing surprising again. i think the, the fed minutes reflect what was going on in the conversations in, you know, last
month. and, i think the fed is going to be on target for reducing the asset purchases in sent and i think they're going to start it off with the treasurys. most likely i think they will start off with about 10 billion reduction in the asset purchases. there is really nothing there in the minutes to indicate that but i think everything that we've been seeing in the economic data to date really indicates that the fed is on target for reducing that are asset purchases. i think it is a prudent move. i think it is the right move. i think the market is growing to accept it and the market is going to actually respond positive, once it is initiated and once it continues. ashley: that's true, bob. here we are, a lot of people say this is already baked in. the moment you start talking about it again. here we are down off nearly 100 points on the dow. why this reaction? >> very quiet market. you can't take a lot from what is going on. people in this market since
beginning of this year, with expectation, even in june, when bernanke came back and sort of backtracked on his initial comments back in may, saying that, you know, asset purchases was going to be likely. he saw reaction to the market and then backtracked. may have thought, that you know, qe3 was going to be in the cards for an extended period of time. it is really a necessary move to reduce this. ashley: right. >> this started about a year ago interest rates weren't much lower than from where they were after qe was started, from once it was started. i think it's an appropriate move. ashley: okay. >> especially with bernanke in the future here. ashley: sieve fenn, let me bring you in. critical jobs report about all of this, september 6th. we'll get the september 18th decision by the fed when it is expected tapering some form or fashion will begin. , but, what if, stephen, we get
a lousy jobs report on september 6th. does that change the landscape a little? i think it could. depends how bad the report is. if the report is consistent with the type of job gains we've had the past several months. a number like 175,000 on payrolls and not moving very much i think they will start tapering in september but if they have a number like 100,000 or sizable downward revisions from the past several months with unemployment rate going up i think they might have a tough debate in the september meeting about whether it would be time to taper. ashley: what about the issue of inflation, steve? there is continued concern, yes, they believe the inflation rate will come up but it does impose risks, doesn't it? >> it does. the inflation rate is well below the 2% target. cpi is well below an year-to-date basis. the measure they actually target, which is the cpe index
is even lower than that i think they still believe that transitory factors have held down the, held down the inflation rate and it is going to move back to target. i think at this point, if everything still looks pretty good on the jobs front, think i they do taper in september even though the inflation rate is well below where they would like it to be in the long run. ashley: bob, how much of a concern is the rising interest rates? we're seeing 10-year jump a little bit now. of course that can have repercussions. what's your thought on the rising interest rates? >> you know, ashley, everybody knows the street overreacts to almost any kind of news that's out there. interest rates will continue to move up. they will find their own level. i think the level will be 3 1/2. it may go up a little higher than that and then it will retrace a little bit and probably retrace a little bit more than it should but i think you will probably find a level around 3.40. i think the street will be concerned what is the impact to companies with earnings going forward but i don't think it
will have much of an impact. i think the economy is improving, if we look at initial unemployment claims, non-farm payroll, look at manufacturing, look at housing everything is working in our advantage. companies are making money and once we get back to that normalized level investors will be back in the market and driving stock prices up. i think you will have a very good year for stocks this year. ashley: interesting. market is still down. dow down 104 points. thank you, we appreciate your comments. tracy: all right. let's turn to reaction in the commodity market now. as ashley mentioned, the dow fell 50 points when we heard the minutes. fox business contributor phil flynn in the futures pits of the cme. what happened, phil. >> traders don't like rising rate when it comes to oil. after qe all the hot money went to places like china and emerging markets where they consume a lot of oil! but not so much when rates go up in the u.s., the hot money buying all that oil goes to other places.
oil is pushing towards the lows of the day at 103.78. the low was 103.50. you're looking at some of the commodity currency, they're taking it in the chin. the australian dollar, a big commodity currency is getting smashed now. gold and silver down, raising rates bad for commodities. back to you. tracy: phil flynn, you're right. thank you, sir. >> thank you. tracy: interesting, right, ash? the fed is really reluctant to put anything on paper. ashley: they are. tracy: holding out. ashley: typical fed speak vagueness, however, as bob pavlick pointed out things are pointing in the right direction. the economy is gaining painfully slowly but i think we're looking unless the jobs report on september 6th is absolutely awful which could change things, it appears some sort of tapering could happen in september. tracy: vegas odds? ashley: two to one perhaps. we're tracking the market's every move in reaction to the fed minutes. a live update from the
new york stock exchange next. tracy: plus can hewlett-packard deliver new evidence it is turning things around? i don't know. august, august is not a very good month for them. we'll preview its after the bell results coming up. but first, phil mentioned oil, let's check on it one more time. down about a dollar a barrel. $104 a barrel right now. we'll check on the metals too, the dow is down 83 points. we'll be right back. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out.
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tracy: hey, welcome back. post-fed minutes, the dow actually climbing back. it is off about 50 points when we heard minutes originally. it is down about 70 points. s&p and nasdaq, also moving a little bit lower on the news as well. there they are. the s&p, down slightly now. both again climbing back, of course there is your 10-year up four basis points at 2.58%. it hit 2.88. ashley: that's right. tracy: at session highs? for more on the minutes, we talked to charles payne. you were listening. what did you think? lamo? >> lamo. still going through them, i
think reaction is always lamo. this is wall street whining. tracy: exactly. >> in the past i always told people exactly what the fed comes out with this stuff, don't worry about the rest of the day. after everyone digested had cooler heads, had a few beers, maybe better way to react to judge reaction. here's an interesting thing, they say, guys. they talk about the second half. they say, we'll pick up somewhat in the second half of gdp and strengthen further there after, in other words, 2014. the reason for it would be highly accommodative monetary policy. you can't say, we'll improve if you take away the first thing you cite as driver for improvement. they're assuming mortgage credit availability. we'll see. lending officers have said they're getting somewhat easier with respect to lending, a little. no one is getting significantly easier with how much they, the receding effect the of fiscal restraint.
whole thing supposed to happen. you have pent-up demand. that fed go on to talk about express concerns about higher household wealth not translating into greater consumer spending. market is up 9,000 points. house is worth more than four years ago. why aren't you in the mall. why aren't you using the credit card? it is confounding the fed. tracy: we have september jobs number coming. depend which way it goes. ashley: will give them time to pause. tracy: talk about a game-time decision, right. >> there are a couple of participants who say they may use lower unemployment threshold. they know why, they understand, if a million people leave the job market, number goes down, that is not authentic. that is not a good sign. that is a bad sign and being honest about themselves. i think the whole notion of tapering next month is goofy it will be based on the economy. if it is based on the fed, you know what? risks no longer matches the
reward. it doesn't work, tried this now. 3 trillion-dollar balancewe'll d girls. you're on your own. that is something the street would be afraid of. there are people on wall street only believe on the fed, the fed. for the economy overall, sooner out of this thing, the better. ashley: better. >> might hurt initially. the better. ashley: about time we stood on our own two legs. absolutely. tracy: charles payne, thank you. ashley: still quarter past the hour. check these markets. nicole petallides on the floor of the nyse. what are you hearing on the floor? >> traders watch the dollar carefully and we're watching which is jumping versus rivals. that is something worth noting. we saw the dow jones industrials fall to a level of 14,880. that was a loss of about 122 points. so that was, at the moment, just after those fed minutes were released were at session lows we've seen here in these last few minutes. we have since recovered some of
those losses. that is worth noting, the vix, fear index which shot up and pulled back but still has up arrow. on the dow though the market breadth has been across the board not only on the dow but across the board. market breadth is very weak, leaning toward negative side. dow jones industrials with a few names like wal-mart, bank of america. but majority of the names have held back, names like hewlett-packard and technology has been under pressure. nasdaq composite down 1/4 of 1:00%. back to you. ashley: thank you, nicole. gold off a little bit. nothing drastic but moving a little lower after the fed minutes. tracy: think they were looking for more. coming up hewlett-packard shares have more than doubled from their fifth low so will today's results give the long struggling, emphasis, long-struggling tech giant another boost? we'll have a preview next. ashley: you're saying it is long-struggling. we'll look at the u.s. dollar. the dollar is strengthening a
>> 22 minutes past the hour, i'm lauren green with your fox news minute. syrian opposition groups say government forces killed more than 1,000 people in a chemical weapons attack in damascus. the accusations coming three days after a team of u.n. weapons inspectors arrived in the country to investigate prior claims that the assad regime used chemical weapons against its own people. u.s. army soldier bradley manning sentenced to 35 years in prison for his role in the wikileaks scandal. manning will also be dishonorably discharged from the military. he will have to forfeit some of his pay and have his rank reduced. national interagency fire send says wildfire in the u.s. could cost as much as one billion dollars this year. beaver creek fire in sun valley, idaho region has cost more than $1 billion to fight. that is the stories on the fox business network. back to tracy. >> lauren, thank you very much. hewlett-packard out after the bell with their earnings and the stock is up almost 80% this year
which is crazy, right? will today's results be enough to keep investors happy? jason nolan, senior research analyst at baird joins us with the latest. based on all the trouble this company has, to see that the stock is up 80% is kind of confounding, isn't it? >> it was off so much, last year. tracy: yeah,. >> it was a bounce-back from where we were and trading six, seven times earnings. not up substantially. certainly not expensive at these levels. tracy: they offered a quarterly dividend. i suppose that makes the stock attractive. really all about the service division, right? so if, because pc sales are way off. what do you do? do you buy this thing here? >> we're not buyers. we have low expectations on the quarter and fundamentally going forward, they obviously have a lot of secular and pricing pressure in the pc and printer division, especially, pcs. especially consumer pcs.
about half revenue and half operating profit. services is an area that has been challenged. they have some opportunity there and new niche activities around cloud and big data. some of legacy servers, headcount, intensive businesses are under pressure. enterprise group. it is the largest profit contributor to hp. there is lot of expectations there around server storage and networking. >> really there is no good news story here, other than the dividend. does dell going private help them at all? >> there is really, there's not, there is rumor that the head of the enterprise group is going to be reassigned this evening also. there is not a lot of positive from a top-line growth standpoint. there is cost cutting, cost cutting and a dividend and new initiatives. they're just small. of dell going private, could, could impact pricing in the industry. dell has been more price aggressive of late. lynn novo has also. we expect lenovo to stay
aggressive as private company. we'll see what happens. dell could arguably act more strategically. not worry about quarttory quarter financial performance of the company. but i don't know it changes things dramatically. i expect dell to be price aggressive in the pc market. tracy: all things digital reported reassignment as you reported. ceo meg whitman has challenges. 8 billion-dollar write-down for eps. august has not been the best month for the company. you're seeing going into earnings. you're not loving it and buying it into. so what happens to hp? >> well, there's a number about huge changes going on across the i.t. landscape. landmark changes. cloud computing. big data. security is a huge theme. hp needs to be more efficient in the commodity divisions like pc and print. they need to invest strategically in some new growth markets. they have performed poorly there in the past. investments like autonomy and eds have not panned out.
they haven't innovated internally as much as they would have liked. this is really key give all the changes. really big company. 300,000 plus employees. $100 billion in revenue. they need to be more efficient in commodity divisions. invest intelligently and into growth market. tracy: can the print and ink cartridge business carry this company? that is openly thing they have going for them. talk about their cloud computing and what they're doing with amazon? >> none of those things go away like print and pc. they're still profitable. they will not die overnight. there is pressure especially in consumer. cloud computing hp has a new product called moon shot they will try to sell to large cloud computing companies like amazon. they will try to compete with people like amazon. we don't think hp can do both of those things at scale. hp and other large, large cap
tech companies need to decide, do they want to supply to the cloud or do they want to compete with the cloud? that is still not clear where hp intends to go there at scale in the long run. tracy: jason nolan, talk about doom and gloom from baird. appreciate your insight. clearly he is not suggesting you buy the stock into earnings. thank you, sir. >> thank you. tracy: don't miss fox business's full coverage of hp's earnings after the bell, about two hours from now. boy, not good news, hey? ashley: help wanted but with a catch. many companies are hiring but the jobs might not be so attractive. we'll have details next. tracy: still ahead, head turning numbers on july home sales. we'll look what's behind the surge and whether it could last. fed taper talkers want to know about thats that's for sure. let's look at some of today's winners and losers on the s&p 500 as we head out to break. nicole is talking about lowe's earlier, up 3.6%. we'll be right back.
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underway. the stock is doing well. target, on the flipside, well, target is under some pressure. they have an expansion going on in canada. as a result, easy target under some pressure. ashley: thank you very much. tracy: u.s. employers are hiring. three out of the four jobs are actually part-time. they played health reform. elizabeth macdonald is here with her bottom line. >> look at the number. 953,000 jobs created so far this year. a big three quarters of those jobs are part-time. you will see 731,000 jobs
created. no surprise why the u.s. economy is flatlining at 1.5%. people cannot spend. it makes perfect sense. what we are also seeing is a san francisco federal reserve is also making note of this trend. we also have this memo from forever 21, this big retailer. this is a trend that we solved end up last year. now it is accelerating. ashley: you have people working two part-time jobs, but getting
no benefits. the unemployment structure is changing in this country dramatically. the question is, will it ever change? >> it continues the pace. time and again, i am so struck by what the federal reserve says. the u.s. jobless rate last year would have been lower. san francisco fed is saying d.c. policy, d.c. uncertainty. wow. you know what that is, that is 2 million jobs. tracy: the uncertainty, i think you hit the nail on the head.
if you just do what havoc they were. >> precisely. span you know. that is why you keep coming back. ashley: closing down a dollar in $0.26. topping all expectations. one of the top realtors breaks down housing's next move. that is coming up. tracy: first but let's take a look at your tent and 20 year treasuries. your third year of three baselines. we will be right back. ♪ [ sizzling ] more rain... [ thunder rumbles ]
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the office-supply retailer also lowered its view for that year. shares of american eagle outfitters are down nearly 10% after they forecasted weak sales and profits for the fact to school quarter. the level of promotions have been unprecedented. that is the latest from the fox business network. giving you the power to prosper. ♪
numbers. the medium price across the country of $2,213,500. that is impressive. what does this tell you? >> this is for real. it is over. we will not see price drops anymore. when you see these big, big numbers, just remember, that when you see 13, 14%, it sounds like a whole lot. ashley: is not enough inventory still an issue? >> of course. people were on the sidelines waiting, waiting, waiting. interest rates are moving out.
they are not high enough to turn anyone off. it is still low. if you are on the fence, you are making a move. we do not expect them to go down. ashley: they are succumbing in? >> they were always part of the market. they are not out of the market. they see the u.s. and parts of the u.s. as a solid investment. >> how easy is it to get a mortgage these days?
>> after all, they have to make money. ashley: the rates are so low. for people wanting to get into the market, is it 20% down? >> it is tough. they double check your score a week before you actually close the you cannot take any credit cards out. you cannot do anything. you virtually have to be very, very good. they are all coming back.
any healthy way. you do still have to have a job. ashley: people without jobs were getting those mortgages. thank you. we appreciate it. tracy: okay. ashley: that is great news. tracy: is everybody ready for some football? it may be on google. it may be a lot closer than you think. dennis: google may be interested in bidding on the nfl sunday ticket package now controlled by direct tv. officially nfl does not want to
comment on specifics. youtube finally is ready for prime time. and much of the way our boss used a money losing nfl contract to build credibility for the fox broadcasting network in the 1980s. so far today google stock has been up in a down market. more probably, a google deal with the nfl would help accelerate the deterioration of the old media. google could easily afford the billion dollar a year contract. it has over $50 billion. google's revenues are over three times of that of cbs. now, for the to be sure
paragraph. this could be there negotiating ploy by the nfl. still speculation that google will bid. also, we always overestimate how the new stuff wipes out the old and we under as to how good the old come are. tracy: dennis cook i think it is fascinating. >> they are incorporating new stuff. ashley: let's go down to jonathan at the nyse. what is going on?
>> a couple of things happening here. when we get these fed minutes coming out, they are making all of the traits. i call them fictitious traits. you take a step back, you read the statement. you digested. we should taper or we should not taper and when it should occur. there are some real deep conversations going on here. it will really come down to the wire in september as to when to turn this spec it off. ashley: the volume is pretty low right now. is the fat tapering in september, is that really take into this market?
>> it is continually baked in. when this does occur, september or october, it will not have a big affect. people are preparing for this to come. ashley: those pesky algorithms. tracy: coming up. american teenager not ready for college or the workforce. a cte is out with a disturbing new story. ashley: let's take a look at some of today's winners and losers. we will be right back. ♪
ashley: fox business has confirmed that the fed will appeal the judge's ruling going out the debit card swipe fees. let's take a look at the latest markets. it has been an interesting hour. at 2:00 o'clock, we shot down. we have worked our way back up. the dow is in positive territory. tracy: here is a question that cons of parents are asking. the report tested student
preparedness and for basic subjects. the results are really troubling. 34% are under all four. we are joined by the president of the a cte education division. sir, thank you for being here. let's talk about who are testing. you test about half of all high school kids. >> that is right. tracy: do kids get to choose what they take these days? >> they do choose. tracy: are 54% of them taking it or is it a plot of the lower income school districts? >> it is a lot of the whole country. twelve states now give that a cte to every student.
it is a desperado under of our entire population. we are not making the improvements that i think we all want. the progress has been very slow. at the same time, more and more students are participating. tracy: on the other side of this is a story that we are testing math and science. if i become, i do .no, a business anchor sunday, i do not need to know what and of cumulus cloud is for algebra. >> they are definitely critical to the entry-level college
courses that a student needs to take. tracy: it is more about critical thinking then. >> yes. the countries work towards common course state standards for all students. that is a very good first step. we are clearly in the progress. we have a pipeline yet to fix. tracy: thank you for coming back. ashley: green bay, pick football team, small city.
it just seems that there is not enough room for all the football legends. the city of green bay running out of street to named after former packers and coach. brett favre already has a street named after him. tracy: we need top of communities in green bay. "countdown to the closing bell." connecting the entire planet. teaming up with some big hitters.
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