tv Countdown to the Closing Bell FOX Business October 17, 2013 3:00pm-4:01pm EDT
china. apparently they've signed a nondisclosure agreement to look at the smartphone maker's books, but let's look at shares of blackberry, and anytime anyone's mentioned thai interested -- they're interested in buying blackberry, the stock has spike. this almost half a percent, but at $8.21, this is a stock that used to have 70% market share. pretty sad, but right now it's a happy day for at least anybody who got in recently on blackberry shares. now to washington where federal workers back on the job today, but the economy is expected to feel the cost of this budget and debt showdown for months. president obama speaking earlier said there were no winners in the government shutdown. >> nothing has done more damage to america's credibility in the world, our standing with other countries, than the spectacle that we've seen these past several weeks. liz: reputational damage aside, real cost estimates due to the shutdown looks to be around $24
billion. that according to standard & poor's, the ratings agency. standard & poor's also estimating that u.s. gdp growth will fall from 3% to 2.4% in the fourth quarter. i'm going to caution you, though, a lot of people on wall street are calling for just 2%. dow jones industrial average is the one major holdout today, the rest look pretty good. what's going on with dow? well, the fact that it's ibm, ibm is really dragging it down. ibm is a problem, has to do everything with the computer services world n. the meantime, though, the s&p 500 is on track for a record close as long as it can stay above, and here's the magic number, 1725, two points above it right now, we'll see if that happens. the russell 2000 hitting all-time highs earlier today, but the biggest earnings news of the day comes after the close. it's google. google reporting third quarter earnings. remember, it missed analyst estimates on revenue and profit last quarter, it's got a lot of
wind at its back. a lot of excitement around that company at the moment. right now google is down about $9.26, just a percent. we'll be watching it and getting you those numbers after the bell. let's get back to washington, because it continues to be a huge part of what's going on in you, the investor, in your mind, but part of the new debt deal calls for the creation of a bipartisan budget committee with members from both the house and the senate. so what's this new committee's job, and can lawmakers find enough common ground this time around to prevent another battle the likes of what we just saw, rich? >> reporter: well, liz, congressional aides are skeptical they can resolve some differences, but when you talk about this new committee, this is actually a concept that's constitutionally what we're supposed to be doing on capitol hill. the house passes a budget, the senate passes a budget, and they're supposed to create a conference and work out the differences between the two. we've gotten away from that, and now they're returning to that. take a look here, here are the
top lawmakers on this thing, senators patty murray and jeff sessions, top democrat and republican in the budget committee, and in the house, chairman paul ryan and the top democrat there, chris van hollen. major differences they have to work out here, the house passing a budget known as the ryan budget, major curbs to entitlement spending over the next ten years. meanwhile, democrats have nearly a trillion dollars in tax increases, republicans have no tax increases. so they're going to have to figure out a way to work around that. if they don't come to an agreement by december 13th, all is not lost, but if they were to come to an agreement, it could certainly push off the next fight over the next goth shutdown by january 15th. and, of course, the debt ceiling, that could also player into this. so there's some pope that they could -- hope that they could reach a short-term, medium-term budget deal, maybe even a long-term budget deal. but given how these things have gone in the past, there aren't too many people on capitol hill who are optimistic. back to you.
liz: that's the thing. after what everybody's been through, very tough to have any sort of clarity on that. rich, thank you so much for joining us and giving us the update. i think he has an air mattress on capitol hill. he's been working so hard lately. now, if the markets owned a car, this would be a car that had no rearview mirror. why? because investors in the markets are always watching what's next. our traders no doubt know what the markets are looking at and peering toward with. let's get right to the floor show, traders at the new york stock exchange, cme group and the nymex. nicole on the floor of the new york stock exchange, we were just talking about some big moves as they pertain to earnings. obviously, ibm is a leader in this list. >> reporter: right, a leader in a laggard way, and what we're seeing is the dow jones industrials to the downside today, and if it weren't for ibm, it would be a different picture, we'd be positive today. you've got to take a look at the s&p 500, it's up one-third of 1 %. the dow really is not a great gauge of today.
ibm is down almost 7%, the revenue numbers completely missed analyst estimates, so you can see that has been to the downside. also some other names that have been on the move, for example, goldman sachs has also been weighing on the decline, quarterly revenue there. fixed income decline was larger than expected, and then there was verizon, third quarter net was up 40%, wireless subscriber growth, good news there. but you know what they saw with the iphone, the iphone 5c sold under expectations, no surprise there, and how about the 5s? the pricier one? that was in short supply. that is a winner today for verizon, up nearly 4%. those are some of your dow movers. liz: i know. that phone so exciting until it isn't, you know? let me get to john corps pee know, if the markets owned a car, they wouldn't have a mirror, it's all about today and tomorrow. >> tsa exactly -- that's exactly
right. we put what happened in washington in the past for now. yes, there are dates on the calendar that we're going to eventually have to face, but we've become so used to the kick the can mentality that we've been able to figure out that on a short-term basis kicking the can might be okay for the markets. not for psychology, not for emotions, but for the markets it is okay. this market continues to trend higher, and now we turn the page. economic news, earnings. these two things are going to continue to drive the market that we're going to continue to see. look for google, interesting to see how they are going to report coming out. liz: i google is huge. ibm, still, that has a long tail, the negativity going through the markets. let me get to the cme and larry levin. we have seen b the dollar strengthening yesterday with all of the drama in washington d.c. does that play into what you're seeing when it comes to commodity prices today and equities? >> yes, certainly in equities it's paid attention to, certainly the stock market and stock index, the s&p that i trade every day, liz, has been
moving higher. the only thing i would say as far as the dollar's concerned is just like equities, it seems to be running out of buyers. while they're sitting on the highs today, again, we're sitting here, we're not really selling off, we have run out of buyers, and i'm concerned about it. i really think earnings are going to have to blow out tomorrow and over next week to keep this market going up. if that doesn't happen, i think you'll see a decent amount of profit taking, and that's what to watch. liz: yeah. and really when we talk about oil prices, we don't need to get into the weeds, but when we're hovering just slightly above $100 per barrel and yet we have some clarity in washington, d.c., what does that tell you about the next weigh station for the price of crude? >> as i've been saying in the past, this is a market that's heading lower. we're getting back to reality. in fact, the axiom of buy the rumor, sell the news held carefully yesterday. we had no inventory figures to go by, so the expectations that we were going to have a deal, the market was sympathetic and worked its way higher.
but today is a reality day. we've come off. we're going to test that $100 level like i said about two weeks ago and, in fact, it's going to have its hands full even holding it. right now if this market intends to rally up to that 102 area, you must sell it with two hands. [laughter] it's on its way down to the inevitable $95 where we started before any of the international crises took place because that's where the market was fairly priced and working within that area. i don't see the market going anywhere but there in the near future. liz: your old school, you can still do the hand signals, what does 95 per barrel look like with your hand signals? >> this is usually a 9, so -- [laughter] you'd do like 95 or something -- liz: right. which makes perfect sense that this would be with 9. i mean, you guys -- i'd lo to have our whole viewership go down to the nymex and watch you guys in the pits. thank you so much. until hundreds of thousands of
people show up. jeff will be like, sorry, didn't know all these people were coming. closing bell ringing in about 52 minutes, so should investors sit on the sidelines after this debt deal, or now should you jump in? we've got an all-star panel to tell you how to trade the political and economic risks. the belly fund's chris marange and brad mcmillan, they have some picks for you, so stay tuned. and we are going to introduce you to a true turn around king. a man who was faced with a dropping company. he reinvented the spire thing, more than triple profit in the last quarter. record revenues. co-founder and ceo, it's a fox business exclusive. stock is up 44%, sandisk, stay tuned. ♪ ♪ when we made our commitment to the gulf, bp had two big goals:
help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
liz: breaking right now, the much-anticipated announcement of just who would run hulu, well, the hulu board of directors has just announced that mike hopkins, the company's new ceo, he gets the nod. it was widely expected he would get it, but he has served as president of distribution for fox networks group, he's been there since about 2008, but he
will be based an hulu's headquarters in l.a. his appointment is effective immediately hulu is a consortium between fox, nbc and disney. tried to go public recently, didn't quite work. we'll see what happens under mike hopkins. okay, let's get back to d.c. what does this deal in washington really mean for your portfolio, and where should you be investing right now? we have two very smart guys who have made good decisions, chris marangi along with brad mcmillan, commonwealth financial's chief investment officer. i want to tell you guys, meaning our viewers, between the two of these gentlemen, they have more than $100 million in assets under management at their companies. so kind of know what they're doing. all right, to you, chris, first. the situation in washington, did it ever affect how you were picking stocks or investing over the past couple of weeks? >> well, not really. the market since 2008 has figured out this gore nance by
crisis -- governance by crisis well. unfortunately, the day after a lot of issues whether it's tax reform or regulatory reform still are left unaddressed. liz: well, you know, i look at what's going on, brad, and i agree with chris, and when we talk about what's going on in d.c., really smart people are always looking at the long term when it comes to stock picking, correct? but you have a bit more perspective in the negative, right? a little more pessimistic? >> oh, i think there are a couple of things going on here. the important thing to realize is we have kicked the can down the road, but we haven't solved the essential problem. so this is something where we didn't can change our fundamental allocations, commonwealth has been cautious on equities for a while. but at the same time, we were aware that this could have short-term implications. so in other words, don't plan your portfolio around it, but maybe be aware of it when you're putting money into the market. going forward, what we see is we see the economy is going to take
a hit from this. first of all, from the direct impact from the shutdown, second of all from the increased uncertainty which we're actually going to see over the next, until january 7th. liz: yeah. >> this is not going away. this is going to continue to negatively affect the economy. and that is going to make earnings even more problematic than we thought they might have been anyway. liz: that all makes perfect sense, but all the market has done is climb the wall of worry, brad. it's just done remarkably well under the circumstances. over the past year of all kinds of crises. >> well, if anything -- >> that's exactly right. and what that tells me is a couple of things. first of all, the fed is succeeding in what they are doing. if you look at the correlation of the s&p with the fed's asset purchases, the fed's balance sheet, it's extremely high. if you look at the correlation of the s&p with the accumulating margin debt out there, by making it so cheap to borrow, the stock market is the only place to be.
liz: chris -- >> that doesn't mean it's going to stay that way forever. liz: well, exactly. chris, what did you do? as far as your investment strategy is now concerned, between now and let's just say the holiday season, december, what are you looking at? >> well, that's a very short time frame, but we're looking company by company, industry by industry where we have a core competency for stocks that are trading with a margin of safety. and that's what we do. we're looking for catalysts. we do think that along with low interest rates comes more deal making, and that's good because that is a key catalyst to serve as value. liz: what type of catalyst? >> well, m&a is certainly our favorite, but financial engineering's popular, spin-offs, buybacks, all these things in part fueled by the low cost of debt. liz: okay. we're going to get to chris' picks in just a moment, but, brad, give me your investment strategy looking ahead. >> well, i believe in the fundamental strength of the u.s. economy. we're going to take a hit here, but really the economy is well on its way to recovery, and
we're starting to see some real signs of life in wage earnings. so i see consumer income increasing, and i see consumer discretionary is an area where there's some potential for some outsized growth. in addition, as a play on the recovery and the rest of the world and the fact that valuations in the rest of the world are pretty cheap, i think either emerging markets or europe are a good play and, certainly, industrials in the u.s. tack service those markets. liz: okay, you give us the broad, now drill down, chris. you like some names that would capitalize on what brad just talked about, perhaps strengthening the consumer, vivendi and madison square garden. >> that's true. i have venn da is a play on the stabilization in the economies of europe as well as some improvement in secular trends in music and on telecom. vivendi has been a decades-long transition. we're in the late innings of that. the company sold off their 62%, most of their 62% interest in
act vision, they're going to split the company, financial engineering into sfr which is the number two wireless company in france and an immediate company that's going to have universal music and brazilian broadband company called gvt. so ultimately we think it's going to get sold, and the company probably gets broken up. liz: a quick word about madison square garden because we cover it very heavily here at fox business, they're could be the street -- they're down the street, but they're expanding pretty exponentially. they brought the los angeles forum, this stock up 44% year to date. so tell me what you think about this one and where it goes from here. >> well, it's october which makes you think around orange things, not pumpkins, but basketball, the knicks open their season in a week and a half, and they're opening in a new building, the transformation is complete. they spent almost a billion dollars to do that, and they're left with a terrific arena and lots of free cash flow which they're going to return to share holders. liz: brad, in a word, what would you avoid right now?
>> i think the thing to be careful right now is materials. i think they've had an enormous runup. we're still looking at overcapacity in that space, and i think the growth point forward is going to be less led by materials. liz: brad and chris with more than $100 billion in assets between them. good to see you, and we'll be watching. thank you so much. >> thank you. liz: closing bell ringing in 40 minutes. bank earnings season in full swing, so which major bank could still hit it out of the park after goldman sachss, slightly disappointing results. charlie gasparino making his way down the hall to tell you what's next. and facebook's controversy by loosening restrictions on its youngest users. but will it pay off in terms of higher revenue and earnings even though mom and dad are the ones with the pursestrings? i don't get this, but we're going to drill down and find out after the break. ♪ ♪ thrusters at 30%! i can't get her to warp.
losing thrusters. i need more power. give me more power! [ mainframe ] located. ge deep-sea fuel technology. a 50,000-pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. our current situation sems rather extreme. why can't we maximize our... ready. ♪ brilliant. let's get out of here. warp speed. ♪
for its junior users. dennis kneale has more on this story. privacy settings, is that what they're looking for now? >> facebook wants to link everyone to everyone, and i guess this is, you know, in pursuit of that. now, the stock today pops up another 1.5%, it's almost $52 a share, and i kept trying to figure out, well, why is that? how is it that looning restrictions on 13- loosening restrictions on 13-17-year-old would help. if they explicitly say yes, the friends of friends can see it, now facebook says your posts can be seen by anyone on the entire internet if you want. facebook itself has a billion users, so you're already exposing kids to plenty of people. the privacy police will be upset about it, but one thing it does now is that you can have your posts without telling facebook, it could be exposed to your friends but also your friends' friends. that expands the a audience. if it's also available on the
audience, maybe get more eyeballs, you charge higher ad prices. but another thing, you mentioned about teens fleeing the service. overall maybe 20% of users in the u.s. on facebook are under age 18. but by some estimates when you just look at all kids on facebook, you know, facebook says you've got to be 13 or older to get on the site, 20% of all kids are way under age 13. and while facebook came out and said, hey, kids are savvy users and they want to be heard, you know what? a 10-year-old kid is only so savvy, so look for politicians possibly to take a look into this and for privacy prudes to come after it. mean meantime, though, facebook helps to sell more ads. liz: no go for my kids, no way. >> me either. liz: thanks, dennis. dennis kneale. >> lloyd blankfein. >> and goreman. ceo of morgan stanley --
liz: not us fighting. >> no, those are the guys that are going at it. goldman reported earnings today, morgan tomorrow. goldman is generally considered the king of the crop, the crown jewel, the big investment bank. the envy of wall street. the envy of morgan stanley for many years. liz: it struggled a little bit with fixed income. >> we should point out goldman's earnings were pretty lousy. liz: you telling me morgan stanley's going to blow them out of the water? >> listen, what do i do? i talk to people at various firms, analysts. people inside morgan stanley are feeling pretty cocky today. they feel like tomorrow when they come out there, they're going -- this is going to a repudiation of the goldman sachs business model which is heavily based on trading and investment banking and a sort of confirmation of what james gorman has been trying to do at morgan stanley which is move away from the risk, be a sort of global advisory firm both for
companies, do their investment banking arm and to individuals to the biggest brokerage network in the country, their big -- i think it's 18,000 brokers they have, their wealth management arm. so tomorrow according to people inside morgan stanley will be the day where they think their business model will shine. and that crown that has been perennially -- is it actually perennially? liz: that's correct. >> i know, because you went to berkeley, didn't you? [laughter] anyway, i went to pace. because you went to beverly hills high school. liz: that's right. >> okay. i went to yorktown high school, they didn't teach that over there. perennially, it's an s.a.t. word, right? okay, i know what that means too. perennially that crown is on goldman sachs' head that it gets maybe half on both of theirs tomorrow, both shared by gorman and blankfein and goldman's grand experiment which is to make in the brokerage advice
capital of the world. liz: he told that to you a year ago -- >> did i believe him? liz: you were a little skeptical, but then you said watch morgan stanley. charlie, just so you know, he trolls the hallways on the 12th floor, grunting on occasion -- >> cursing. liz: but occasionally, you'll blurt out -- >> i think tomorrow's going to be an interesting day. i can tell you that he's running around, you know, he's not -- he obviously can't say what the earnings are going to be today, but -- because they come out tomorrow, and it's kind of a quiet period, but people who know him say his body language is very, very positive, and this is going to be pretty interesting. and when this thing comes out tomorrow finishing they do beat them, if it looks a lot better, they're going to tout their business model over goldman sachs. and, you know, i know lloyd has grown a beard, and i know gary cohen has been ducking me for years, but let me tell you something, gary cohen's the number two guy over there, you know, i think they have a
business problem, model problem over there. i, you know, there's just something about goldman, it's not what it was. they can't take the risks they used to take, you know? here's what you have -- liz: we had a guy on who's written a book called what went wrong at goldman sachs -- >> i've seen that. liz: he used to work there. he was important over there. >> i like greg smith, the kid that wrote -- liz: why i left goldman sachs. >> you know, he was very earnest. i think if you're going to write a book about goldman sachs, i think greg was too nice. i would have ripped them a new you know what. i mean, i would have got in there and really talked about -- liz: that's when you get, the big money in the book. >> i'm just saying i think greg played it too nice. and i think mandes probably did too. to understand the culture is to understand how a harvard mba will put a knife in your back when you're looking the other way. i mean, that's goldman sachs, and if you don't cover it like that, you almost have to cover
it like the mafia guys in the nba. they'll still kill you, but they went to harvard. liz: the bear stearns guys were scrappy. >> well, they'd kill you to your face. that's goldman. you've got to understand that. and by the way, that's equally treacherous. i think that's a problem. so tomorrow we're going to see it'll be gorman's time out there, and if it's better, i think it's going to be better than at least the market's saying it is if you look at the stocks today, well, it's going to be business model time. liz: so charlie's going to be back here tomorrow, and we'll talk about this. thank you very much. >> okay. liz: he's going back up to the 12th floor to troll around -- >> why do i troll? why don't i, like, report and analyze? i don't report and analyze? >> huh-uh. liz: no, you troll. thank you. you're not a troll. >> okay. get that straight, please. liz: 29 minutes before the closing bell rings. what government shutdown? earnings season heats up as san
disc blows through third quarter earnings -- sandisk. record revenue, shares of the stocks soaring to a brand new high. joining us new york stock exchange, the ceo and president, it's a fox business exclusive. did i mention that? and they can check -- check this out, remember the submarine car in james bond's the spy who loved me? one of my favorite, sold for nearly a million dollars. now it looks like the secret buyer is the ceo of a high-flying u.s. company. we'll tell you after the break and, yes, roger moore, in my opinion, was the best james bond. muck. ♪ ♪
cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. 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, isn't that what retirement should be, paying ourselves to do what we love? ♪
liz: okay. stock alert. the s&p 500 closing anywhere above 1715, 1725. we have hit an all-time record. what does that tell you? real optimism. president obama did speak earlier today for the first time since congress voted to end the government shutdown. he had a clear message for the republican party. peter barnes. peter: he did take a shot at conservative and tea party house republicans when he thinks democrats and reasonable republicans this morning. that was his term. for approving the legislation last night and reopening the government and funding the government through january, raising the debt ceiling through february. take a listen. president obama: some members pushed for the shutdown say they were doing it to save the american economy.
but nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises. peter: the president's site in, for example, increase in short-term interest rates we saw about the debt ceiling. liz, this is a very serious subject, very serious matter but i do want to mention to all the kids who are watching including julian and gabby, in fact with the government reopening, the national zoo's panda camera is back up and running, and you can see for yourself now the mom and the new baby cub eight weeks old. on a bipartisan basis we would all agree she is adorable, both of them are adorable.
liz: that and soldier pay, those oare two things i wanted back up and running. peter, thank you very much. there has been a lot of complaining. some of it very well placed, others complaining just kind of fetching. don't use government gridlock as an excuse. there is a company that did anything but, totally tuned it out, unfazed by the fiscal turbulence and crushed the earnings. it is sandisk. the third-quarter results, shares are up 45% year to date, so what is behind the secret of the success? it has not come easily. sandisk cofounder, ceo and president. before we get to the solid numbers you came up with, solid revenues, jumped the washington, d.c., issue.
how closely were you watching the development? >> liz, first of all thank you for having me on the show. we were watching and washington, d.c., pretty closely, i am glad, certainly thinking the economy can get back on track and looking forward to driving sandisk. liz: a divided government is still in essence what we have. how does a divided government affect your day to day operations, if at all? >> added to the extent any of the stable economy like any other business we cannot indicate that. i would like to point out to you sandisk business is at the very heart of mobility content and conductivity. that is really helping sandisk deliver results we used in the
third quarter and positioning us for 2013 as well. liz: in essence you are saying if it is directly tied to the government contracts, you must have some of those on the fringe. what you have done at sandisk is turn a consumer-based company into more than an enterprise opportunity. selling the business is. how well did that serve you this quarter? >> we saw another quarter of revenue growth. i am very excited about the enterprise business. sandisk has strong leadership, the growth engine of sandisk business moving forward as well. this is part of our strategy of the mix of portfolio solutions. that is what is really helping sandisk drive such excellent
results in third-quarter and looking forward to 2013 as well. liz: in certain areas of what you do, somewhat commoditized. can you tell us what you foresee for third-quarter prices? your competitors have said they are expecting softer q4 prices. >> we have not provided guidance on pricing. we expect it may be somewhat higher decline in the third quarter. we saw 3% decline, yet for the fourth quarter guidance in terms of revenue growing in the range of 1,650,000,000-720 million. we have gross margin range of 48%-50% as well. liz: the market so do and investors really want to hear that. you think pricing will be even slightly softer and yet
expecting solid numbers you feel you can hit those targets. >> yes, we have the expectations of the pricing and our guidance for the quarter we provided yesterday. liz: acquisitions. you've made some pretty smart ones but are you expecting anymore big ones? >> you know, we do not speculate on a position, but what i can tell you is sandisk is focused on driving growth to the extent there are any assets that we believe we need to have to continue to deliver our strategy. we are open to acquisitions at this point i will not speculate. liz: let me push you on mobile. some are concerned about a slowdown in mobile sales overseas, perhaps china as well. what are you seeing for your business? >> we continue to see they are
growing. 900 million smart phones expected worldwide. flash is a key enabler. in the market like china, the chinese manufacturers are upgrading the features they are offering the mobile phones, creating flash storage in those markets as well. sandisk today is a supplier of flash memory to the smart phone and tablet manufacturers worldwide helping contribute to strong results. liz: i should have let our investors know early on, that is exactly what you do. folks, had you watched a year ago when he was on our eri air n he could have decided for yourself that might be a stock you want to buy year to date. thank you for joining us. >> thank you for having me on the show, liz. liz: anytime. sandisk cofounder. closing bell ringing in 15
minutes. google coming out with numbers in a few minutes. 10 attorneys earnings around after ibm disappointing flop? we have your playbook as we gear up for google's report. and what did elon musk drop a million dollars on recently? it drives like a on land and dives like a seal in the ocean. that story next. [ male announcer ] need help keeping your digestive balance in sync?
from shelling out nearly a million dollars for another piece of cultural history. we're talking with the famous submarine car. 1977 james bond flick "the spy who loves me." suddenly it grows wings and an engine and is able to swim. elon musk, founder and ceo of tesla motors, paid $989,000 for the submarine car when it was sold in london last month. he is the man behind the wildly successful tesla model s sedan. tesla's talk is a opposite of underwater having gained more than 500% over just the past year. tesla trading at $183 per share. if you were to look at the one year chart, it would give you a much better sense of where this stock has gone over just 52 weeks slightly down today but
remember this, he is also the chairman of solar city, moving higher by about 3% today. you can spend a million. not bad. oil and earnings a drag on the market. nicole petallides at the new york stock exchange. google earnings in a couple of minutes, what is happening? nicole: a lot happening after the bell. google in particular. some of the things he will be looking for in this earnings report, some ad revenue coming in. product listings growing. the spending. don't forget google right now down 1%. watch google closely. some other names we will keep an eye on is capital one financial bid chipotle mexican grill. and e*trade. some of the big movers.
the price of the ads will be the top story for google, certainly. liz: lets go to sandra smith at the cme. sandra. sandra: we're watching oil prices. a significant drop down $1.63. we are holding onto $100 per barrel, but important to point out we had not breached the $100 level since july 3, a day before the fourth of july. a low of $100.03 pennies today. just three pennies shy of reaching that number, that is what everybody is watching. the lowest levels in three and a half months. also on the oil prices, they will be putting out the latest energy report, the inventory reports that have been stopped due to a government shutdown will be released next week for the week ending october 18. looking at gold prices, $38
right now. $13.20 per troy ounce. this is the biggest we have seen in about four months, liz. maybe gold is not the safe haven play it once was. it went down during the government shutdown, but indeed today the safe place to run when you don't want to own the u.s. dollar down on speculation the fed and not be willing to stop this stimulus anytime soon. back to you. liz: thank you, sandra. dow jones industrials nearly turned positive according down more than 100 points earlier today. down just won a second ago. look at what we may possibly get back to the flatline in advance of this. with the s&p 500 up 10 points, we are above the key number of 1725. making it an all time new high. stay with us on the closing
breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. liz: okay, we are above 1725, that is the key number for the s&p 500. anything above that will be a record and look at what is the leader. sandisk is the s&p leader up nearly 9% today on major earnings numbers. very nice. dow jones industrial appears to be struggling to get even to the flatline. a pretty decent feet having been
down 100 points, but google earnings, so much more. david asman standing by. he is rocking them. david: you mentioned the s&p. american express up 4% right now, 5% right now as we are talking. leaders on the dow as well trying to push into positive territory. it was briefly and oh so slightly positive territory. nicole petallides pushing for all the stocks at the nyse. if it was not for ibm there's no question the dow would be in the plus category. ibm looking at a disaster here. nicole: no question. ibm was a real disaster on the revenue number. when you put it in terms of points, it was 89 negative dow points. you can see ibm really dragging it down today. liz: another thing falling is
the volatility index, the vix. nicole: this is after yesterday it dropped. waiting to see what congress was going to do. we saw it flying up. we really have been on a white knuckle ride here on wall street. david: gold traders are very happy today. those betting on the dollar are very sad. talk about gold up almost 3%. nicole: you saw gold, lot of the gold stocks went along with it. seeing stellar gains today. liz: these are a couple widely held names. google and chipotle releasing earnings after the bell.
nicole: they are exciting to watch. we also have e-trade and capital one. david: the bells are ringing on wall street. the s&p at a new record. the nasdaq is doing quite well also. remember ibm. the dow itself would be in the green, ibm pulling the dow way down. even with ibm on the dow, it is close to positive territory. even though it looks like it is down, it is a good day for the market today. liz: a good day because of the panda cam at the national zoo is open. we have other front page headlines in the past hour. blackberry shares started jumping. news update% the chinese computer maker lenovo which has gotten extraordinarily hot may be considering making a bid to buy the struggling smartphone maker. dow jones reporting lenovo