tv Markets Now FOX Business September 11, 2013 1:00pm-3:01pm EDT
later. we are live at cantor fitzgerald charity day. time for stocks now as we do every 15 minutes. nicole: we have been seeing the nasdaq composite underperforming the major averages. ibm is helping the dow jones industrials with its turraround. let's take a look at apple. the question, of course it is somewhat on the news because we finally have the 5c and 5s, some of the analysts are questioning the cheaper version, the 5c, whether it is cheap enough.
you can see the stock is getting hit today. back to you. lori: many thanks. september 11 still fresh in our minds. we will never forget. they now make today a charity day. adam shapiro joins us from the trading floor. >> $89 million plus over the last nine years and the man who has made all about possible joins us now. you are taking your son to his first day of kindergarten.
today is about turning tragedy into hope. why keep doing this? >> i wake up and it is september september 11. i start thinking about my brother and all my friends. all of our employees, they wave their days pay. it makes it a very tough day. we have celebrities who come and make the day fund. >> how much of a feeling do you get that we go forward with
that? >> my employees are giving up their days pay. for them to have something fun and exciting, this is really what makes it special. >> it is not just about 9/11. it is not just about today. you will be helping people with funds that are raised today. >> my wife put together 50 of her friends. every one of those families will have a kid in school. we will give them each $1000. we will give the parents of money.
that is what we are doing here today. we know pain may be too much. we can empathize with those that have pain elsewhere. >> we spoke with regis philbin earlier. this is an uneasy time for you. you lost your brother. you lost your friends and coworkers. how do you get the optimism to be hopeful? >> 658 people lost their loved ones. how can you help them if you are just trying to do it yourselves. you cannot help them in less you a big, strong company beneath
you. we have a group of the most incredible men and women who are here today hoping to try to raise money. it makes me so incredibly proud. >> when you talk about your legacy, that includes 8000 plus employees at cantor fitzgerald worldwide. it is a community event. a lot of people are appreciative. thank you very much. i know liz claman would love to have this interview. back to you, lori. lori: adam shapiro, many thanks to you. the president last night said he
is exploring the russian diplomatic plan to end the chemical weapon dispute. lou dobbs is fired up. last night did nothing for me. lou: it was not a foreign-policy speech per se. it was a speech that never should have been given, in my judgment whatsoever. he said we are not the policeman of the world. he said it twice. he said he wants to be the policeman of the world.
there is no one out there watching us. what he did not aid knowledge is that he and his administration, over the course of the year, uttered the expression redline in the connection of weapons. he is ready to strike a solver and nation. he talked about the united nations. the united nations, the russians, this is the president who is so far field for the
reality of the global demand on this nation. it was a confused, confounding, contradicting speech. i think, arguably, arguably, the worst ever delivered by any american president. lori: how do you think that this president has done managing the al qaeda threat to the rest of the world? lou: there is considerable testimony. al qaeda is expanding.
even as he was telling the american people that we had devastated the leadership of al qaeda and we had contained al qaeda. both claims turned out not to be true. lori: why wanted the united states just say, hey, that sort of came out of left field and that is okay. it seems like there are two planes working here. parallel planes. lou: that is an excellent point. i believe this president would have aid knowledge last night and number of realities of which he is the beneficiary. one, his secretary of state gave
an offhand remark. he went on to say that it would not happen. secondly, the president could have acknowledged vladimir putin for responding positively to that opportunity provided, whether it was a mishap or not. lori: what does the timetable look like now? >> we have a number of people holding forth.
i do not understand where they are coming from. i will tell you where we are. we are as a nation having to exercise this immense power. lori: our credibility is shaken. lou: he has a 40% approval rating. it is not an issue of our credibility. it is an issue of the policies and our response to the unforeseen. we should be guided by our own principles. not by the values that have insisted. it has been exhausting to our
military, our air force and our troops. lori: thank you. appreciate it. tonight you can catch a special extended interview. discussing the year since the benghazi attack. thank you again, lou. lou: thank you. lori: kevin kaiser jolted wall street with his own gutsy call. why he says it is a house of cards. applications for mortgages are tumbling as rates increase. we have an exclusive on this one as well. it is not even mid-september, but we will show you what has consumers doing a calendar double take.
crude oil at 782. we are back after this. ♪ 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. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. your money needs an ally. ♪ [ male announcer ] 1.21 gigawatts. today, that's easy.
lori: as we do every 15 minutes, let's check the markets with nicole. nicole: they are looking pretty good. i also wanted to focus on news corporation. southeastern management has taken almost a 12% stake in news corporation. back to you. lori: thank you. elizabeth macdonald has breaking news about citigroup. >> they will be laying off 22 workers in the next couple months.
the refinancing is not coming in as strong as expected. he is essentially said we are already taking steps to make sure that the mortgage business is sized correctly. citigroup is not looking to significantly grow its share in mortgages. jpmorgan chase, bank of america, citigroup and wells fargo, workers are expected to be laid off because of the rate spikes. lori: elizabeth macdonald, thank you for that exclusive reporting.
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the nation paused and remembered today on the 12th anniversary of the 9/11 attacks. relatives and friends of the nearly 3000 people who died were at their names again this morning at ground zero in new york. we stopped for four moments of silence. the president honored those who died at the pentagon during a ceremony. families of the victims were caught -- those are your news headlines on the fox business network. get you past two lori. lori: breaking news out of
washington. rich edson has the details. rich: a number of republicans are having major problems with this. a number of them want in exchange for funding the government. what house leadership came up with, we could still fund the government. it seems like it may be coming up short right now. the plan is to possibly vote on this as early as tomorrow. they are still trying to figure out where they are in all of
this. lori: it all comes down to this fight over obamacare. the government could shut down over it. it is unbelievable. kids for holiday shopping. only 104 days left until christmas. kmart has already started airing holiday ads. take a listen. ♪ >> do not let the holidays sneak up on you. shop early with kmart free layaway. dennis: people feel like i do not want the pressure of having to shop already.
lori: people are offended? >> they kind of subbed out santa for the gingerbread man. first of all, kmart's first site is in rebellion. i have one third of the year. i think i am safe. lori: this is an ad for layaway. the layaway plan. you actually have to start now if you are going to use the layaway plan.
dennis: it has been very funny, the reaction online. this came out september 9. lori: it is layaway. you need to be proactive. all of these retailers are trying anything. dennis: all sides agree, gingerbread creepy. lori: i was offended, for what it is worth. another interview you only see here on fox business.
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no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪ lori: and stocks are gaining as our imminent threat in syria is dissipatings if you will after the president's speech last night. let's go ahead and head back down to the floor of new york stock exchange as we do every 15 and check in with nicole once again. you have a big s&p winner. >> i certainly do. this is a top performer in the s&p 500. bringing you right over to marriott, the popular hotel chain. take a look. 3.7% to the upside today. ubs upgraded stock from neutral to buy. couple things they said in their
note. citing a stable and positive outlook for revenue per available room. also overall this is winner year-to-date, up over 15 1/2%, lori. back to you. lori: great nicole, thank you. every four second as new idea sprouts out of silicon valley. we just made that up, but seems like it when pcs morph into tablets smartphones and wearables in the binge blink of an eye. this is day two of the "3 days in the valley" and liz claman's coverage. she has the someone who is the brains of all those electronic devices. liz: here in sony headquarters in san mateo, california, in the hard of silicon valley. you have playstations. none of this would work, none of your phones would work without the tiny brains with billions of transistors on teeny squares of silicon chips. all of those become the brains and drivers of all of these pieces of equipment but without
my next guest's company which was founded in 1967 applied materials and mike estimatedder, who is the executive chair, none of it would happen. we are son honored to have youin a business exclusive. you were a 3 days in the valley original six years ago. >> really? >> you came from intel obviously. >> i spent quite a bit of time at intel. almost 20 years. welcome back to the valley. liz: thank you so much. over your left shoulder is the good buddy sonic, one of gamers favorites. you look at games and playstation and graphic chips all that developed in just six years, what are your customers telling you? your customers are the intels and amds and nvidias of the world. >> what is happening right now is really a war for mobility. you can see it yesterday and apple's announcement and earlier in samsung's announcement. it really is about mobility, getting low power, high-performance chips and what really is triggering that is the
materials inside the chips and like at no other time, these materialses are enabling lower, power, higher performance, better transistors, better memories and applied materials is really at the heart of that. liz: you guys really are. there are very few competitors you and few competitors left snapped up the little guys. what happens as you try to keep up with the newest trend, ables? tell me what kind of trend you're see in able technology? >> wearable technology means you have to have antennas. you have to have flexible electronics. you have to have smaller, lower power chips again and you have to have batteries. these devices are going to be everywhere. it is not just billions we're talking about know, tense of billions internet of things they
will be ubiquitous. liz: 3d chips are starting to mix with tree d.o.e. graphics. what kind of orders are you seeing. >> 3d will be important in memory chips and logic chips. >> we mean piled on top of the chip. it is not 3d television. >> that's right. the new kind of chips that are going to be made are going to have transistors in multiple planes. this is something really new and will keep moore's law going for many more years. these new materials are going to create the transistors. those materials will be largely invented by applied materials. liz: what is holding our country back? gross domestic product is nowhere near what we hoped it would be five years after the recession? >> this is complex question what will stimulate growth but one of the things we've been talking about for a long time is corporate taxes and how you're going to level the playing field
on an international basis. today it's not a level playing field and large companies like ours, it is quite easy to go to another country and have better taxes that than we do in the united states. and it is not that the united states would actually collect less taxes, if the tax rate would go down. i believe over a period of time it would collect many more dollars in, in taxes if the tax rates were competitive at the corporate level. liz: we always like to ask mike splinter the big picture questions as well as the nine newt ones about chips because you have a great sense what is going on in the nation. thanks so much for joining us. >> thanks so much, liz. thanks for having me. liz: mike splinter, executive chair for applied materials also known as amat. send it back to you in new york. lori: appreciate it as always, liz claman. keep it here on fox business. 3:00 p.m. liz has an exclusive interview, yet another one with jack trenton, sony playstation
president and ceo. that on "countdown to the closing bell." we'll be watching liz. taking aim at the largest oil pipeline company in north america. a 26-year-old analyst that calls kinder morgan quote, a house of cards. he joins charlie exclusively next. show you interest rates today how they're performing on the back of the stock market rally. and an auction, we had an auction today. we'll look at auction of 10-years. higher. people are buying treasurys, sorry with the yield pushing down to 2.92%. [ shapiro ] at legalzoom, you can take care of virtually
>> i'm cheryl casone with your fox business brief. small businesses are finding it a bit easier to obtain loans from big banks. according to a new survey from market research firm biz to credit, 17.6% of small biz loans were approved in august. that is up sharply from 10.9% year-over-year and is the highest rate since 07. verizon has launch ad record $49 billion bond deal to buy vodafone out of the verizon wireless joint venture. prices are in line with expectations for the offering which beat the previous record of apple's $17 billion bond deal in april. hotel inventories in july were up for the first type in four months. unsold goods rose .4 of a%.
lori: after making a name for himself with a call taking on a giant energy company in july, 26-year-old kevin kaiser is not backing down. he continues to jolt wall street prompting both criticism and praise. last week kaiser sent out a note taking on the largest oil pipeline company in north america, that is kinder morgan. kaiser joins us exclusively with our own charlie gasparino. >> a very detailed report, i read, kevin. i have to confess i didn't understand everything. i'm not an expert in the energy business.
kinder morgan is pipeline company that delivers oil. >> yep. >> we'll get into that, the question why are you right and everybody else is wrong? this company has plenty of analysts on wall street. plenty big name investors are in it. they are a degree of stock promoters in it as well on other networks who say they love the stock for various reasons. rich kinder is a known quantity on wall street. you're a 26-year-old kid just out princeton, i believe. >> yeah that's right. >> how many years? >> three years. >> why are you right? >> if you think about the mlp industry in again -- >> master limited partnerships? >> master limited partnerships. this has been a fantastic sector 10 or 15 years. this is sector everybody made money in. >> right. >> i don't think people are appreciating risks to some of these companies. >> it is very complicated structure. >> it's a complicated structures. these companies, rely, their stock prices rely how much distributions they pay. >> right. >> essentially my argument
against kinder morgan energy partners that distribution is not safe in the future. >> it is not safe because company's fundamental are problematic. they don't put enough money into maintenance i read their report. >> that is the big issue. they're calling maintenance cap-ex, expansion cap-ex. they're financing maintenance. >> we should point out on your report the stock tanked a little bit. it has come back when rich kinder bought shares. >> charlie, look i'm not saying kinder morgan is going down tomorrow. i'm not saying it is going down next week. >> right. >> i am calling out risks i see that i don't think are properly reflected in the stock today. >> unless i'm wrong, i read this report, you called it a house of cards, right? those are pretty powerful words. are you saying some sort of illegal -- they're improperly accounting for stuff? that is what is suggests in your report. >> i'm not saying there are anything illegal here. i think there are some misleading, misleading statements with some of the
non-gaap financials. >> okay. >> when i say house of cards, house of cards is something that has a unstable foundation. >> right. >> when you need to raise more and more and more capital to continue to pay out higher and higher distributions, in my view that is very unstable foundation. >> capital is also in debt. >> it is in debt and more equity raises and see kinder morgan, many mlps do this every single year, every single quarter. >> when i was 26 years old i writing a story, working for the peeksville community courrant or whatever it was, the peekskill town board hated. everybody holds it up. kid was such a jerk. got everything wrong. it got to me. how are you handling pressure sure? i've read blogs. it was very controversial. your boss keith mccullough had to come out defend you. that often doesn't happen on research report. you taken on powerful people. rich kinder is a billionaire.
>> yep. >> popular guy on wall street and some quarters of the media. how are you handling owl that. >> i'm fine with it because i knew when i was doing my research and when i was going, when i made the decision to say what i really think -- >> right. >> i knew it was going to be controversial because nobody else calls out these risks. >> why? are these guys just a function of rich kinder handling a lot of big investment banking out to big wall street firms and obviously you guys are much more independent outfit? >> charlie, it is no secret mlps do a lot of banking business. they issue a lost debt. they issue a lot of equity. they do a lost acquisitions. >> right. >> i don't think the analysts in this sector really scrutinize these companies they should. >> are you saying conflicts of interest that eliot spitzer who lost as new york city comptroller, as new york ag, bragged that he stamped out 10 years ago they still exist today and this is an example of that? >> i mean, yeah. i don't think that should be a shock to anybody that knows this sector. >> really? >> yes.
i mean, really. >> the analysts are in bed with this company? >> i'm not going to go out and say that directly but i think that my advantage that i have at an independent research firm that has absolutely no vested interest in any banking fees, anything like that -- >> right. >> i think i'm at an advantage to really scrutinize and say what i think about this company, that some other analysts may not. >> let me ask you. your modus operandi was kind of interesting. it was a tweet that laid out some, and it was an email to clients and then it was a report. >> yeah. >> you know, some people would say, you know, that gave your clients a leg up to buy the puts which there was a spike in put purchasing. >> yep. >> right after your tweet. >> and after your email. >> right. >> is that kosher to do something like that. >> well i published first on kinder morgan an august 2nd. i've been tweeting about this company for two months. >> right. >> it has been quite obvious i've been negative. >> right. >> the way we operate, we can work with clients when ever we
want but we don't tell them what's going to be in any report. >> we should point out -- >> or when it is going to be published. >> what is good for carl icahn should be good for kevin kaiser, right? >> sure. >> i want to put up before we end this, we have a statement from them. kind of interesting. you'll see it. they really don't, we asked them to come on. we wanted to have them to refute. they said we do not believe kinder morgan needs defending. we have been and continue to be one of the most transparent companies in america. are they transparent? >> i don't think they're transparent at all. a great of example of this in their e&p business, they have $450 million, $400 million of capital expenditures they're calling expansion cap-ex and it should be maintenance. >> let me ask you this, the last company you wrote a report on, same sort of thing happened. stocks goes down, then it went up. took a while and it has been down. lynn energy, right? >> lynn energy you took issue with accounting practices. they're being investigated by the securities & exchange commission, correct? >> yes. there is informal investigation.
>> which really doesn't mean anything other than, that it is informal. but they haven't subpoenaed them yet but it's still a serious matter. do you think that there should be an investigation of kinder morgan and just what they're doing? does this cry out for regulators to see if they're booking these expenses right, if they're making these payments right? >> i would say that kinder morgan's issues, while, are very concerning that their issues are prod across the mlp sector. >> right. >> but theirs are more egregious than some others. i think entire mlp sector is sort after regulatory nightmare to be honest with you. >> interesting. >> that the maintenance cap-ex and what these companies are actually calling maintenance, there needs to be some regulation around that. >> we should point out though the stock is up now. >> sure. >> people obviously don't believe you. >> again, i don't know where the stock is going. i'm calling out risks. i think at some point this
distribution gets cut and it is not safe. >> not safe for investors? >> yes. >> okay. >> and i know it's a controversial call but if it wasn't controversial i wouldn't think it was right. >> okay. that's great. thanks for comeing. >> thanks for having me. lori: that's fascinating story. i look forward to see what happens with kinder morgan here in the future. thank you so much, sir. see you soon. let's get an update on the broader market. ben willis from the floor of the new york stock exchange. ben, i think it is interesting we're seeing a rally in stocks and in bonds today. what do you think of that? >> i think it is a continue ages of the idea that the world economy is improving, whether it started in china. we had, more improved numbers out of china on a day-to-day basis, our own country leading the pack so to speak. my only concern is, i find it interesting that you're seeing a rally in bonds. that is not a place where i would put my grandmother's money. lori: thanks for the market analysis. sense on the floor as we mark the 12th anniversary of
sense of 9/11? i was on the floor as a business correspondent myself and i remember being a scene of a lot of chaos and a lot of fear and i'm curious what it is like now 12 years later, if you could share with us your thoughts and observations? >> it's, it's a difficult time for me in particular. i lost many friends, count somewhere around 30. i witnessed some very horrible things when i walked into the buildings while they were still standing on my exiting from, and moist. people on the trading floors still have some connection to somebody who passed in those terrible events. so it's a somber day. however the tradition here of the new york stock exchange opening for business is quickly as we could, after we were attacked by terrorists to demonstrate to the rest of the world you may have hit us but you didn't take us down. lori: right. >> that is pretty much the way we continue today. i'm wearing the american flag tie today, something i've done since october 2001, every friday i wore it today in honor of those people and friends i lost in the tower.
that is kind of the mood if you will for the whole trading floor. lori: thank you for sharing that with us. yes, i recall the attack on a tuesday morning. the exchange opened the following monday, continuing this day to be a symbol of americ capitalism and it is a wonderful thing. ben willis, thank you for sharing your experience, thank you very much. >> thank you. lori: aspiring entrepeneurs in san francisco for the techcrunch disrupt conference. but before they make it big they need the money to back it. that's where our next guest comes in. scott white, venture capital firm anderson horowitz joins us.
robert gray joins us live with venture capital bigwig scott weiss. robert, what is scott working on these days? >> well, lori, we'll get to that in a second. a lot of names people know like uber- there is lot of company names we don't know and people like scott are here, checking out, literally demoing out the products. scott coming up as we speak. a veteran of this conference. he is a skateboard veteran as well. >> no problem. >> what are you seeing at the conference today, that is sort of piquing your interest as venture capitalist? >> what is great about techcrunch disrupt, there are so many new gadgets and unusual things. yeah, so, in addition to having, you know, companies like uber-or, even have it like ibm that's here, some of the, some of the old established companies have infiltrated it but it still has that, you know, at its core, the new, the different, and -- >> what trends are we seeing?
>> so one of the things that you saw from that electric skateboard is that we're really seeing what i would call a peace dividend from the cell phone wars. there's a lot of gadgets and these gadgets are loaded up with censors. >> they're connected to the internet. >> they're connected to internet. they have all types of sensors. at that like all the sensors on the mars rover. the mars rover, they're incredibly expensive. they can sense about any kind of compound are going down, getting on to the telephone and, i think, apple just announced like they are now putting a fingerprint scanner on the telephone. then eventually they're going on to all types of different devices. we're seeing 10 or 20 different devices here today. >> they're showing their wares attracting likes of you to givegive them more capital. how is crowd funding changing things? at love guys got money that way. >> go go, kick-starter, all they have to do, shoot a nice video.
have no product available and raise a couple million dollars on preorders. people saying hey, i think i want one of those. and, hopefully sometime they will actually ship or have to give the money back. >> scott weiss, thanks for joining us on fox business. lori, i will take a spin for myself. back to you. lori: i notice you're not wearing a helmet, be careful. on the skateboard you mean or on foot? i hope it is on foot. blue-chips rising big every day this week. big money manager michael cuggino says syria and the fed taper are priced into this market. so what could move it next? he joins tracy byrnes and ashley webster next here on fox business. stay with us. we asked people, "if you could get paid to do something you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it,
bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ 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? ashley: welcome barks everybody, i'm ashley webster. tracy: i'm tracy byrnes. the dow trying for its third straight triple-digit gain but apple holding back the nasdaq and the s&p a day after
disappointment with the iphone launch what about that rumored china mobile deal? we'll take a closer look at that ahead. ashley: whatever happened to that? breaking news from capitol hill. chances of a government shutdown after the house pulls the plug on the continuing resolution. the latest plus reaction from republican congressman chris gibson, some r coming right up. tracy: a record-shattering bond deal from verizon more than twice apple's previous record. it will help pay for one of the biggest deals in history. we'll have a top m&a attorney on what it means for corporate mergers ahead. it is the top of the hour. sometime for stocks. nicole petallides on the floor of the exchange. we're up a nice 107 points on the dow. >> looking really good here. not too far off the session highs. dow is 15,297. the majority of the dow components have green arrows. you do see the nasdaq composite to the downside.
that is thanking to apple. it comprises 13.7%. if it wasn't for apple, nasdaq would be in the green. s&p 500 at 1687. we mentioned apple after a the big day for iphones how about we mention another popular name, facebook. new all-time record intraday high, 45.05. right now at 44.97, up more than 3% after the debecause kel of may 18th of last year we all stood here. it was a nail-biter as it went through and finally opened. it was a 38-dollar ipo. it hit $45 that day. it hasn't hit that sense. today will be a lifetime high of facebook share hold here's were upset that day and dropped to 20 bucks and here around 45. that is good for them. tracy: lifetime, i like that, near-year-old. nicole, see you in 15 minutes. ashley: from syria intervention to the start of fed taperings next guest says event driven
trade something certainly the rule for the markets. joining us now, michael cuggino he maxes the assets at permanent portfolio fund. thanks for joining us. i guess we put syria on the backburner for now. does that mean the whole tapering issue comes back into focus? and from what i read in your notes, michael, you say the impact of tapering on the markets is way overblown, right? >> yeah. syria first i think in the shorter term here there's a lull. i'm not sure where it's going. in the longer term i'm not sure what effect it will have on markets, but longer term, it probably has some strategic issue in the united states in terms of foreign policy. so that remains to be seen. with respect to monetary policy and tapering, i mean, i think for the most part, some sort of tapering has been factored in. thus a rise in rates. you factor that with gradually rising rates and somewhat of a growing economy and anemic growth anyway is normal and i
think some investors are many coulding to the recognition that if the fed is getting out, even if it's a little bit, maybe that's good for the economy and i think for a lot of those reasons syria, tapering being priced in and some growth while anemic has been reasons for the stock market to go up like we've seen and treasurys and assets like gold to have sold off in the last week or so as people come back from vacation. ashley: so what do you tell your clients? when, if they're saying, hey, michael should i be taking some profits now and where should i put my money next, what are you telling them? >> it depends on your risk profile and your expectations. we run several strategies. if you're an equity investor we say stay in equities as long as the fed is involved and corporate profits hold up. there are gains there although i don't know if we'll see the robust gains we've seen so far this year for the rest of the year. we would look at growth areas like materials, energy, financials, technology, biotech, u.s. manufacturing and companies
with a global growth component. if you're a fixed income investor we would advocate staying short because the rate environment is uncertain. high quality names and relatively low duration. and for investors that aren't quite sure or they have made some money say stocks and want to take something off the table we would advocate diversification and that would be holding a bit of precious metals like gold and silver to guard against store of value issues that come up and those risks have not entirely gone away. they have gone to sleep the last few months but have not gone away in any way, shape or form, nor the threat of inflation somewhere down the road. we would advocate equities for growth though recognize bond yields are getting competitive with dividend yields. stocks are not as cheap as they used to be, and corporate earnings may decline in the rates of growth. those are all risk areas. so we have advocate die percent verycation. -- diversification. for investors that made some money, the big question is when to take it off the table and we
would saystay diversified with a safe haven for that. ashley: it is interesting, verizon had this huge bond issue today, yields over 5% but the government also had aatreasury sale and it was a huge amount of money went into the treasurys which makes it interesting to me because they're getting about half the yield, if not worse than that. so there is still a little bit of caution out there, isn't there? >> there is and that's why we would advocate sort after shorter duration, high-quality strategy in fixed income because there is uncertainty and i can't guaranty what direction we're going in. while we all believe there will be some tapering at some level of bond buys by the fed, we don't know the extent, we don't know howing a grease sievely. ashley: yeah. >> layer in the potential new chairman of the fed and rotating governors, et cetera, you have a lot of uncertainty with monetary policy although i think broader picture as long as employment remains mixed and stubborn, or unemployment remains stubbornly high and inflation remains low i
think you're going to see accommodative fed policy and that's good for risk assets. ashley: excellent stuff. michael cuggino of the permanent portfolio fund. thanks for joining us today. >> thanks for having me. ashley: more now on apple. investors on wall street not exactly impressed with the new iphones. apple shares are down now about 5% after a string of downgrades. credit suisse, ubs, bank of america, all lowering their rating on the stock to neutral. the main concern, apple's pricing strategy. now analysts are worried that its new, more affordable iphone 5c is not so cheap and will face competition from lower-priced android devices. the company still doesn't have a deal that is, to sell iphones through china mobile. the country's largest carrier with more than 700 million users. maybe there will be announcement later this year, maybe. meantime while a deal could still happen, about $730 in china, the cheap, 5c model may be tough he will sell in china.
like u.s., chinese carriers do not typically give sucksy disto bring down the cost of phones. over 700 bucks for the cheap phone in china. tracy: overall they need some sort of a contract deal to get the price of that down, otherwise that ain't cheap. we have some breaking news from capitol hill now. so the chances of a government shutdown appear to be rising. rich edson is on capitol hill with the latest. rich, what is going on? >> good afternoon, tracy. if congress doesn't figure this out a way to fund the government, sent 30th, that is when the fiscal year ends and october 1st we're looking at government shut down. the house decided to pull its version of a stopgap spending measure that would take government spending all the way through mid-december. that would maintain current spending levels but would have required the senate to vote to defund obamacare, just a vote. that is something that a number of republicans said they couldn't really get on board with because it didn't really force the senate to pass a defunding of the president's health care law.
so they had to delay this vote because of opposition like this. >> we still have a ways to go because the complete cr and the way the rules package and parts of it are not even completely on paper yet. from what i know right now i would be a no vote because i don't think it gets us where we have to go. and, it's time we stop using these continuing resolution to fund this government. >> house aides say having a very difficult time getting the votes they need to actually get their bill through. so it has been pushed off, possibly until next week but it's in a lot of trouble. they're also getting a lot of pushback from groups outside of the capitol. this is the club for growth, pushing a number of conservative members on this, rather than fighting to defund obamacare, or have honest debate about it, house leaders want to go with a smoke and mirrors strategy that avoids the issue. we urge lawmakers to oppose the rule. remember we only have until
october 1st for this until the government shuts down. two weeks after that the treasury department says we'll be looking at hitting the debt ceiling. back to you. tracy: talk about having a lot on your plate? my goodness, thank you, rich edson, thank you very much. we'll get reaction from republican congressman chris gibson next. he says no military action in the syria is the best course of action for now. ashley: verizon's record $50 billion bond deal will blockbuster wireless buy. we'll look how telecom is driving m&a coming up. first as we head to the break let's look how oil is trading right now. it is up 37 cents a barrel to 107.76. we'll be right back. [ indistinct shouting ]
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york. we are live from new york. so very happy to have you, sir. sir, can we comment first on the continuing resolution and this notion, that asking the democrats to defund obamacare, would that ever get anywhere? >> well, look, i mean we've had provisions here on the floor of the house, that delayed the implementation of the employer mandate and the individual mandate. we had bipartisan son support for that. 35 democrats voted for employer mandate, 22 voted for the individual mandate. i think that could be the basis of a bipartisan consensus in terms of putting that into appropriations language. but we'll have to wait and see. i'll tell you this, i think we're get being this worked out and have this done by the end of this month. tracy: i feel like we're losing time by the second because you guys have so much on your plate down there, you don't know what to focus on first, right? we come to the same fork in the road, this time every year. do we use a continuing resolution? do we fix this and
do it right? will we ever get this right? >> i concur. i want to sigh us get a long-term, pro-growth, fiscally responsible agreement in place that replaces the sequester, that get this is economy fully growing and continues to guide us back through a balanced budget. i think this is the time, these next couple months we'll look to do just that. tracy: sir, we'll segue to syria a little. you are on the house armed services committee. there is a lot of talk of defense cuts as part of the whole debt limit talk as well. where do you stand on that? >> as i said all along, i think we need to find a smarter way to proceed. i've been advocating for a pro-growth, fiscally responsible replacement for the sequester. i was one of 38 that voted before the bipartisan budget before this body a year-and-a-half ago. i continue to work with my colleagues to have them see, just, the virtue of doing just that you take a look at the
fact, my last year in the army, i retired a little over three years ago. the deficit was nearly $1.5 trillion. this year it will end up still too high but it will be $650 billion according to the cbo. we cut of deficit by over half in the three years i've been here in congress. what is left to do is get pro-growth policies in place, tax reform, regulatory relief and reform, drive down energy and health care costs, make smart investments and work trade and capital availability. those six fashiontores, when we work that, we change the underlying business environment. make it conducive to growth, private sector expands that brings revenues into the treasury in a pro-growth manner. we need to continue to make the smart choices looking a the expanse of the federal budget so future generations don't inherit this debt of the they get the same choices and freedoms that we had. tracy: right. otherwise my kids will be sleeping on my couch forever. sir -- so people know, you spent 29 years in the army.
you were deployed seven times, including four combat tours in iraq and a mission to kosovo, sir. so why then, you know, so many soldiers, like yourself are completely against military action in syria? i know that's where you stand right now. >> yeah. tracy: why would we ever think we could trust russia. >> well, let me just say i looked at this ink from every angle and based on my experience, both in the military and now in the congress, you know, i'm concerned if we strike that country, which is an act of war, if you think about it, if another country or earnedty struck our country, we would view that as an act of war, i think that will make matters worse on the ground in syria. i think our best chance to get a mediated settlement that will end that civil war and to insure that those chemical weapons don't end up in the hands of al qaeda, is to continue to work the diplomatic track, not just with russia, yes with russia, all countries across the globe that are interested in upping pressure on assad regime,
ratcheting that up including economic sanctions so we get assad to accept concessions. that, if you think about it, a mediated settlement, where assad is forced to accept concessions is a form of punishment. tracy: securing chemical weapons in a war zone sounds really tricky to me. congressman chris gibson, thank you for taking the time. i know you have a lot going down there. good to be with you, sir. >> thank you, tracy. ashley: just a past a quarter past the hour. let's get back to nicole petallides down at the new york stock exchange. lots of new names getting a new highs today. >> this is record day for wall street for popular names we all know so well. i will explain that in a moment. it hit a new all-time high of 314.18. look at names like starbucks, tj maxx, nike. going into the dow jones industrials next friday and starbucks, also right now, at
75.11 but hitting a new high at 75.50. let's talk about netflix for a moment. as i said, they did hit a new all-time high but there was a mid-session downgrade from btig saying some of the positive catalysts we've seen for the stock and the company itself are now priced in. so as a result they downgraded it to a neutral from a buy rating and cut the price target on the stock as well. back to you. ashley: all right, nicole, thank you. netflix by the way debuting in the netherlands today. they can finally stream netflix in netherlands. hang out in the cafes in amsterdam and you know what. a little smoke and watch some netflix. tracy: whatever they do in amsterdam. ashley: they're very happy. tracy: because of netflix i might actually drop my cable. ashley: wow. tracy: my kids are on it all the time. ashley: i see. interesting. tracy: breaking new details on citigroup's plans to cut thousands of jobs in its mortgage division. liz macdonald is all over that story next. ashley: look how the u.s. dollar
>> at 22 minutes past the hour i'm arthel neville with your fox news minute. the list of nearly 3,000 names was read once again as americans remembered the victims of the 9/11 attacks 12 years ago today. bells tolled to mark the times when the hijacked planes hit the world trade center in lower manhattan and when they fell. president obama attend ad remembrance at the pentagon which included family members of those killed in that attack. the president began the day with a somber ceremony at the white house along with first lady michelle obama, and vice president joe biden and wife jill biden. a ceremony was held in shanksville, pennsylvania, where the passengers and crew of the flight 93 were recalled preventing the their plane from hitting the white house or the capitol. back to ashley and tracy. tracy: arthel neville, thank you very much for all of that. ashley: we have a fox business network exclusive for you. citigroup is in talks to lay off
some 2200 mortgage workers by early next year with executives blaming rising rates for those cuts. citi is the latest big bank here in the u.s. planning job cuts in its mortgage lending unit, joining likes of jpmorgan, bank of america and wells fargo to name just three. liz macdonald is here with more on the story. >> latest developments. this is really fluid situation. we are hearing there could be more layoffs at citigroup if mortgage rates go higher. this is a clear signal, because rates shot up so quickly, wow they started to really start laying off. including citigroup, 2200 potential by early next year, a total of 22,000 workers will be laid off at jpmorgan chase, bank of america, wells fargo and citigroup. that's a lot of people. there could be more if rates go higher. ashley: anyone that was going to refinance should have done it by now i imagine. so when rates go up, a lot of people say hey that pushes people to get into the market at
least now but certainly amount of work for banks when it comes to mortgages are drying up. >> yeah. we have statements from citigroup ceo, he is saying just that. listen we're already talking steps to correct our mortgage business, to size it correctly, because refinancings are really going down at the banks. in fact, jpmorgan seeing a 30% to 40% decline and wells fargo reporting a quarter to quarter 30% drop-off. we also have email from insider at citigroup, warning their workers just, past couple months saying general conditions in the mortgage market, essentially are not as robust as they were in the past six months. so that comes from a top executive of citi mortgage in st. louis. so you know, i'll tell you something, the fact they moved so quickly to scott layoffs i think is a signal that bankers are worried mortgage rates could go even higher than they are right now. the 30-year is trending around 4.7, freddie mac. ashley: yeah. >> they're thinking 4.8 or 5
next year but still historically low. ashley: right. tracy: you know what? getting a mortgage, ashley, you know, you did it recently, the paperwork is you know where. to have less employees to help you get through it makes the process that much longer and harder. ashley: it does. tracy: and almost discourage people from getting in it..3 >> mortgage applications are trending around 2008 levels. refinancings are trending at 2009 levels. you wonder if paperwork is also hyped. >> it i mean you have to pick a child to give up to get a mortgage these days. ashley: take a child, any child. tracy: depending on the day i might have one for you. lizzie mack. thank you. ashley: we appreciate it. tracy: coming we're live live fm the techcrunch disrupt conference. we'll meet one entrepreneur hoping to revolutionize smart technology in the kitchen. please say it's going to make dinner. please say it is going to make dinner. ashley: one day push a button and it makes dinner. first here is look at winners and losers as we head to break on the s&p.
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there are some real balls out there that we do not even know of. it is the day after her the big apple release. i know my kids were eyeing which one they think they are actually getting. back to you. tracy: line are getting the cheap one. [laughter] ashley: it is time to make money with charles payne.
charles: you get 200 more gigabytes. tracy: they do not need that many gigabytes. [laughter] charles: this used to be a hot, hot, hot stock. they raised $14 billion. stock went up like a roman candle and then it came down and almost died. i like the idea that the stock is gaining some serious momentum. look at that.
oil closing up. today's game snaps two straight days of the clients for crude. a three-day event in san francisco uniting entrepreneurs. joining us from san francisco, robert gray with more. hey, robert. >> you know, it will not cook dinner for you, but they aim to do a better job. thank you for joining us on fox business. here is a company that started with ipad stands. they are moving to a connected kitchen. >> the skills that we see here is a bluetooth enabled food
scale. anything you put in here, you will see a visual interpretation. you see how the meal competition starts changing. >> and helps you to balance it out. if you are trying to lose weight, gain weight or have a more balanced diet, it shows you the exact proportions involved. >> we measure your food intake. people do not know what a past of something is. we visually show it. we eliminate the guesswork.
you just put it there on the scale. you set it on top of that. >> this is not available yet. you are taking pre-orders. what has been the response from retailers. >> i cannot speak as to which retailer we are going to be with. the customers just love this. >> we are showing you the products today. right now, back to you.
tracy: day two of our three day coverage in california. liz claman is at the headquarters to give us a preview of who she has coming up. liz: charles payne was just talking about momentum stocks. we thought let's set up shop for day two of three days here in the valley. coming up in the next hour, we will show you a preview of the brand-new playstation four. my friends here will help me. the playstation four is coming out in november. it will be huge. right? it better be huge.
the ceo of sony computer entertainment says this will be massive for the company. we have also brought in peter moore. he will talk about all the games. we also want to mention that the days in the valley start the start up. biochemical algae are now trying to get into cosmetics. finally, at the end of the 4:00 p.m., you have to join us. we have musicians standing by. we have the recording studio and we have not had composer.
look at the lower ticker. what a great start today. ashley: thank you very much, liz. looking forward to it very much. tracy: digital downloads. dennis deal with a twist. he will tell us how they are changing things up next. ashley: down five basis points. the 30 year also down a bit today at 3.86%. we will be right back. ♪ to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ 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 ]
♪ >> i am melissa francis with your fox business brief. 17.6% of small business loans were approved in august. more than 17 million u.s. workers are self-employed. freelancers, tabs or other workers is up 10% from last year. the connection between the federal reserve and the crisis in syria. think about it. that is the latest from the fox business network. giving you the power to prosper. ♪
it will all be available just one day after airing on the networks. target is late to this party. target is going for a simple design. they will have the service instantly available on most smart phones and tablets from the get go. still, target way beyond its core competency of a brick-and-mortar store. the service may be way too netflix will call you $10 a
three days. where do we go from here? >> the dow is actually up 500 points or so. it is certainly nowhere near all-time high territory which is what the nasdaq has done in the last couple days. it is important to watch what will happen next week. the equity put to call ratio is down to the lowest level since last spring. a lot of people are approaching this anniversary and really approaching next week thinking nothing bad can happen.
if they were to announce anything above and beyond that, it could be problematic or at least cause a lot of uncertainty ashley: we will find out soon enough. mark newton, thank you so much. tracy: a record bond deal. we have a top attorney telling us the recent spike in corporate deals will stay alive. ashley: best buy ceo turning heads. he says it is for personal reasons. we will have those details i had. first, take a look at some of the winners and losers. ♪ when does your work end? does it end after you've expanded your business? after your company's gone public?
tracy: verizon launching the largest corporate bond by ever. surpassing apples by more than double. verizon's purges and vodafone's state. we are joined by -- i am so glad you are here. is this a trend going forward? >> certainly activity has picked up considerably this year. it is much busier in the u.s. that is compared to globally.
it shows you how big the one deal was. how much it affected the deal statistics. tracy: the deals are not across the board. >> you are seeing a lot of transactions in healthcare. you go to other sectors like financial institutions, certainly consumer products, energy and, it you know, commodities. those areas are virtually quiet. tracy: we are not seeing cross-border at unity right now.
we were talking earlier about how they pulled away from europe. now are restarting to maybe come across some buying opportunities? >> to some extent, i have thought it would be this year. i think it will be the story of 2014. one is there will be a lot of bargains there. the other reason i think we will see a resurgence of activity in europe is sort of what i call the cat very type deal. u.s. and other companies go in, by a european company that has a great global network.
you go in by cat very, not just because of the domestic chocolate business, but because they have this network all over africa, all over asia. they will make acquisitions seeking to get that network. tracy: we will continue to see debt offerings? what do you think will be the trend? >> i think we will continue to see more cash and stock deals. one of the reasons, i think, we will see cash deals as companies have a lot of cash. companies can borrow cash at low rates. with the feds starting to taper,
no one really knows how long the low rates and good terms will be in place. to the extent you are buying a company, you might as well be going out and doing a big debt offerings now. their stock prices high. it is an excellent time to borrow. a great time for them to relate to it, even if they had to pay a little bit on a premium to get it done. tracy: that is a great point. we may see more and more of it. thank you. >> great to see you, tracy. ashley: jolie raising more than $10 million in the stock stale.
does not seem to be doing a whole lot for the stock. down about six tenths of a percent. all in all, it is a good story for best buy. tracy: do you buy that? or is he just blaming his ex-wife on why he wants to get the heck out of dodge. ashley: i am sure the acts -- tracy: she is laughing the whole way to the bank. [laughter] tracy: that is great. coming up on "countdown to the closing bell," an exclusive sitdown with jack trenton. we will ask him about billionaire investors failed attempts. also, the much anticipated