tv Countdown to the Closing Bell FOX Business November 21, 2013 3:00pm-4:01pm EST
third quarter profits, they did drop 47% largely due to a pullback in consumer spending and the cost of expanding into canada. right now we see shares of target, and they are, indeed, moving lower, but the percent decline is not enough to shake this market. the retail giant also lowering its full-year earnings forecast. so did walmart, kohl's and dollar tree. what's at heart here? we are told stagnant wages, the increase in the payroll tax and the partial government shutdown to blame. but the rally today, it could be going nuclear due to janet yellen. the fed chair nominee will almost certainly be confirmed by the full senate as the next head of the federal reserve after the senate banking committee voted 14-8 to approve her nomination. she has been very clear, obviously, you guys, on making sure that the stimulus of the bond-buying purchases, so-called qe, would stay in place.
the markets love that. but to explain the option, the nuclear option and how it relates to janet yellen's likely senate confirmation, we head to peter barnes on capitol hill. what next? >> reporter: that's right, liz. the banking committee voted 14-8 to move her nomination on to the full senate where it looks like she will have an easier time passing. we assumed that she would get enough votes to get final confirmation by the full senate, but then today the senate approved the nuclear option which was to eliminate the filibuster for the president's executive branch nominations and federal judicial nominations except for the supreme court. democrats and the president complaining the republicans have been using the filibuster too much to block his key nominations, but republicans saying, hey, we -- this is part of the chicks and balances --
checks and balances that were in the constitution and that democrats and the president are just trying to change the conversation from obamacare to something else. take a listen. >> the obstruction we've seen from republicans against president obama has reached new heights never dreamed of, never dreamed of, never even come close in the history of the country. >> this was nothing more than a power grab in order to try to advance the obama administration's regulatory agenda, and, you know, they just broke the senate rules. in order to exercise the power grab. >> reporter: so thousand these types -- now these types of nominations will require just 51 votes to clear the senate, but because the fed is an independent branch of government, i do have a couple of e-mails and calls out to confirm that yellen's confirmation -- her follow nation would fall under this new
rule. as soon as we get the answer, liz, we'll be with back to you. liz: i know you've been watching the markets too, peter, because you have eyes in the back of your head. we have an unbelievable rally. those who are long the market, pensions and 401(k)s and portfolios, you're loving this right now was the dow -- because the dow is on track to finish at its 40th record high of the year. been there before, but just not closed there. two member stocks of the dow 30 be also riding the all-time high wave. let's go to nicole petallides for more. >> reporter: well, this is an exciting time on wall street for everybody who's watched it from when it crossed 10,000, the financial crisis, back up to these record levels that we set day after day here on wall street. so we're sitting here at 16,000 and a couple of names, johnson & johnson and travelers, two names i'm focusing on closely, hitting record highs here. for johnson & johnson it is the third straight record high in 60 session -- its 62nd record high
of this year which almost makes 40 for the dow seem simple and trivial. looking good there. and also, by the way, the health care sector overall has outpaced so many others in the year 2013. and then we're watching travelers looking at its 39th record close today. so a monumental day here in history, particularly if we close above that 16,000 mark. liz: can i also say we've got to give props to intel. i know we've been point toking this out -- pointing this out, but their ceo saying they would quadruple, double their chip sales and shipments, and the fact is they do not make these announcements unless they have the orders, nicole, correct? >> reporter: yeah. i would say, i mean, this is a very bold move by intel. it's a great performer this year, but it's certainly middle of the road for many dow stocks. we will see if they can expand the way he's been alluding to.
liz: let's bring it to the traders on the floor of the new york stock exchange, the cme group and nymex. teddy weisberg, looking at the action today, would you guess this is yellen? i guess it doesn't really matter the reason, but we did get better than expected first-time jobless claims numbers as well. and yet you have this conflicting opinion from the targets of the world that say we're a little concerned about the holiday season. >> well, you know, they've been throwing water on -- could water on this market, liz, for months if not going back a couple of years. when you think how far we've come in a relatively short period of time whether it's this year or all the way back to march of 2009, i mean, it wasn't that far back. the fact is the markets continue to climb these walls of worry, and what is missing again today? here we are at dow 16,000. the volume remains very anemic. so, yes, a rising tide is floating some ships, no question about it. not floating all the ships, and there are plenty of doubting
thomass out there. i think for the most part perhaps they're right, but you cannot fight the tape, and the momentum clearly telling us that the market's going higher and the shorts, the shorts are just getting -- liz: they're getting killed. i mean, they are getting killed here. and, dan, look at green mountain coffee roasters. they had a tough time after the bell, but today their stock moves higher x that's a heavily shorted stock along with -- let me just quickly check tesla, that's moving higher. one of the haley shorted stocks out there -- heavily shorted stocks out there. how many times have we said -- or we listened, and we shouldn't have listened. but maybe now is the time where a mark faber of the doom and gloom report, if i had a dollar for every time he came on the -- and he used the word "crash," i don't like that because you can't throw it around, is coming, and it hasn't. >> well -- >> i mean, even a broken clock is right, you know, twice a day. so you have to put all that
stuff this the background and think about what's going on. finish if you look ott our economy and what we've been doing, the one piece of the puzzle that's been a little slow so far has been employment. now, the number today was decent, so i think the market's getting a little more positive. if we fall back, i'm not going to get panicky. i'll buy the dip. as teddy said, there's a lot of momentum, and there's no fundamental change to make me change my view right yet. liz: i'll tell you what was fundamentally changing, jeff grossman, suddenly we blinked and went from 92 and change to $t -- $95 a barrel for crude oil. does this markedly sort of pilot higher and deeper on the target or walmart news that we're a little bit worried about people opening their wallets for spending? >> the truth of the matter is what happened today is related to a perceived disruption in one of the big refiners down in the gulf right now, and that gave a little impetus to the gas leap. as i've said in the past, the gasoline has been and continues
to be the leading indicator here for the energy complex. we were hanging in the mid 93 to 94 level which is okay. we were digesting that. and today's news really took the gasoline off, the gas cracks have blown out again. as i always use that, again, as one of my indicators, and that gave us our impetus. the crude has not really broken out. it got right up to the top of the channel, right into the resistance level. so it's not a full breakout by any means, but today, again, it was a sympathetic move up with the equities and, of course, like i said, the news that came out was quite, you know, intriguing for the upside thinking. liz: yeah. i mean, very. more than a buck as a jump there. jeff, great to see you. dan, nice to see you. teddy, you'll get nothing and like it. [laughter] we love our teddy weisberg. good to see all of you. we've got the closing bell ringing -- see, teddy liked that. you've got to pay special attention to teddy, he's the giant of the industry. 52 minutes before the closing bell rings.
we've been talking a lot about activist investors who can be with annoying or upsetting to companies, or they can help companies and shareholders. fannie mae and freddie mac now have an activist investor of sorts and, no, it's not cal icahn or daniel loeb. this is a guy who ran for president several times. only charlie gasparino, our superstar chief correspondent be, has the story. charlie breaking it once again. and she was the integral part of launching one of the most transformational companies on the planet. what mark a zuckerberg's sister thinks of the frenzy she helped create, and now are we all addicted to our tablets? is it ruining our lives this a certain way? she has some surprising advice she's going to give you on what to do, should you be grabbing that phone, that tablet or putting it away? ♪ ♪ hi honey, did you get toaster cozy?
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einhorn singled out the company as his favorite long bet at an investment conference. he sometimes takes short bets like on green mountain coffee roasters, but he's taking a long view. what's behind this newfound love? micron's chips used in smartphones and video games will boost its net next year's earnings. speaking of video games, stay tuned. we are going to display and demo the brand new xbox 1. got the guy behind it coming up in just a minute. now, many of you are invested in or tempted to invest in social media stocks. the likes of facebook, linkedin and, of course, twitter. even if you're not invested, no doubt you use some of it. but my next guest -- with zuckerberg as a last name, no less -- says social media may be affecting us in a negative way. she's making a stunning recommendation to fix that. joining me now this in a fox business exclusive is randi
zuckerberg, former facebook executive and, of course, the sister of mark zuckerberg. great to see you. you've just released two new books about the impact technology has on our lives. one of them is called dot.complicated. but in a very interesting twist, you basically also released at the same time a children's book called dot about a little girl who's obsessed with technological items like iphones and all kinds of things, tablets. but let's talk about what you're saying this here, and you're in essence saying, well, you've got a front row seat in what has been the technology and social media revolution. you're now saying you want to move that seat back just a bit. why? >> so, yes. i have two books that are out the same day. when i talked to hard per collins about it, they said no author had ever put out a children's book and an adult book on the same topic, same day. and i felt, you know, technology is such a universal topic right
now, we're all addicted to our devices. now, there's some pretty staggering stats that i uncovered in the book. 40% of women would rather give up sex for a year rather than part with their mobile device for a weekend. [laughter] 50% would rather spend a night in prison than be without their cell phone. liz: what? okay, that would not be me. >> staggering. and, actually, 50% of women said they would rather lose their engagement ring than lose their phone. liz: oh, come on. wait a minute, randi, is this partly you and your brilliant brother's fault? people have gotten addicted to facebook, to twitter, and they're doing what can really only best be with described as mindless psychologicalling. out of the -- scrolling. there's no down time almost, right? >> you're absolutely right. in fact, i think the best thing about tech and the worst thing about tech, it's the same thing. the fact that we're always connected. now, on the plus side it means that we can do business from anywhere and still stay in touch with our family, our friends.
on the negative side, though, we're constantly bombarded by information; e-mails, texts, facebook messages from people we haven't seen in years. how are we expected to give the next creative idea to our business if we're not giving ourselves time without distraction? liz: when you think about twit e it's 140 characters, zynga, it's pixlated cows. i fail to see the excitement, but some people are completely into it and, therefore, we're not making connections with real people, and that takes it in a way to your children's book. but what is the recommendation here, randi? how do you tear yourself? we're all guilty. i'm holding up my old school blackberry, but be, i mean, i'm checking this thing all the time. mostly for work, but partly if i have down time, i'm looking at all kinds of things on it. >> of course. i talk to all kinds of experts when i was working on dot.complicated, and they said actually there is dopamine
that's released in your brain when you get an e-mail or text message, so it makes it addicting to check your phone. the average person checks their phone over 160 times a day, and most of that is mindless scrolling. so i think the key is to really be mindful about your devices, to make sure you're giving yourselves at least a few completely unplugged hours a day and on the weekend especially you're blocking off a large chunk of time to unlug to either spend with yourself, think about your business, with your family and give yourself that freedom. liz: amen. but you've got a little child, children and the ipads, i cannot believe. my kids are arguing over ipads, and we have three of them in the house. and a nexus. and what do you do with kids? >> yeah. liz: i have kids and, again, we've got the xbox people coming up, and it's just a fascinating device, and we'll be showing it to people. aside from the fact that they can do things like math problems which is amazing and khan academy is online, i'm worried
that they'll be playing sports games instead of actually playing sports, randi. >> yes. well, you did hit on a few things there. i think, number one, any parent you talk to, screen time is one of the biggest challenges that they face in their households. and you're right, there's a lot of wonderful things that children can do with technology. there's great interactive adaptive learning. there's incredible creative apps to promote music and art. but you are right. so a few suggestions that i have. one, give your children a digital allowance. you give this them a financial allowance probably, tell them that they have a certain amount of minutes or hours of the week that they can allocate however they want. and if that fails, there's some great fun gadgets out there. apple makes an airport that actually can turn off the wi-fi to select devices in your house at certain times, and there is even a cell phone lockup that you can buy on amazon or ebay, and you can
actually take people's phones and gadgets, lock them away, and it won't open until the timer is up. liz: i love the book, and i love the first quote in it. and it was something, ironically, that chris rock -- the actor and comic -- had tweeted. >> yes. liz: and we can put it up, but in essence, he says you only live once, and then he says, so don't forget to spend 15 hours every day on the internet desperately searching for the validation of strangers. [laughter] if that doesn't in a very ironic way say it all. but, you know, speaking of irony, it was recently reported from your own brother that maybe teenagers are pulling a bit back from facebook. but there's also snap chat which refused to be bought by facebook. all of these things, one thing gets hot, and the next thing fills it in. are we damaging ourselves in some way, shape or form by constantly jumping? but you can't stand in the way of technology, can you? >> you're right. but i also think, you know, young people, they always want to be doing the hot, cool thing. as soon as their parents get on
the service, they're on to the next service. [laughter] i know even when we were kids it was always, you know, one day you were talking in code, the next day you had a new journal. now kids are doing that with technology. so the challenging thing for parents is that i always tell parents that they need to be on top of the latest sites that their children are using. they don't have to be on all those sites, they at least have to understand, though, what those sites do, how they work. so it just makes it more challenging for parents to have to keep up with the frenetic pace of tech. liz: the book is called dot.complicated, and it will help your life when it comes to being addicted to these devices that, ironically, comes from somebody who's done very well through social media. we'll see you in davos, i hope? >> yes, absolutely. i really look forward to it. liz: we'll have you on the show. randi zuckerberg, the author of dot.complicated and dot. this is fascinating stuff. it really is. because we all are guilty.
come on, admit it. closing bell ringing in 39 minutes. what do ralph nader and zombies have in common? fannie mae and freddie mac? outspoken activist advocate ralph nader has called for the government to pay its duties to shareholders whom he says have turned into lifeless zombie bees. what's his latest demand? charlie gasparino has the collusive details, next. and the battle of the consoles is on. first sony releasing its newest play faith 4 last week selling more than a million units in just 24 hours after the launch. now it's microsoft's xbox, one-time shine. can it match playstation's success? microsoft xbox chief marketing and strategy officer bringing some friends with us. wait until you see the demo we have in store for you. oh, yeah, the other guys didn't do that. ♪ ♪
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icahn's playbook. did you ever think you would hear that? charlie gasparino has the exclusive details. >> ralph nader, activist investor. here's what we know, more details will be coming out tomorrow, but nader is telling -- or his people are telling the fox business network he's going to hold a press conference tomorrow to basically oppose the sort of plans that are in congress right now. warper and i think what's his name -- yeah, senator warner has a bill essentially to dismantle fannie and freddie. ralph nader is a shareholder, he thinks that's bad for the shareholders, so he's going to come out guns blazing in a press conference and say why this is bad, why it's probably illegal, why it violates shareholder rights. now, there's always an ulterior motive when you're dealing with nader. i think part of the reason he doesn't want the dismantling is not because he owns shares, which he does, but it's also because, you know, he thinks keeping them around is good for consumers. liz: they are
government-sponsored entities or gses that have actually, quote, helped people get mortgages. >> sometimes. and also blew up and led to the blowing up of the financial system. liz: they got a big bailout too. >> of course. and what senator corker and senator warner would say -- the two people sponsoring legislation that's making its way through -- liz: bipartisan. >> bob corker is a republican, warner is a dem, what they would say is what fannie and freddie does is buying mortgages, packaging them, selling them, buying them from banks, that process essentially created the mortgage bubble. and the eventual bursting caused the financial crisis we're still living with today. his point is now that you bailed them out, don't kill them, we need them. and by the way, i'm a shareholder. the kind of interesting thing is i never thought ralph nader and richard perry from perry capital would be on the same page, because they are. [laughter] richard perry, as you know, is one of the distressed investors in this, and he's against, he's
against what they're doing. liz: well, is ralph nader supporting the gses? this may be a rhetorical question, but because he feels it helps the little guy? >> i think there's -- listen, i'm sure ralph nader's a very nice man. i do think it's a publicity stunt. we've asked how much he owns of fannie and freddie, he apparently owns something, that's what he says. we don't know exactly what his ownership stake is. i don't believe he's a material shareholder or like a 5%. i don't think he's doing what a carl icahn's doing. i don't think he has the money for that, to be honest with you. but that's his publicity stunt to get me to talk about it which is the broader issue. for all its ills, fannie and freddie has done some good, that what he would tell you. we should point out that fannie and freddie cost tax pay questioners -- taxpayers gazillions, hundreds of billions of dollars i'm assuming is not far off.
the bailouts of those two entities cost taxpayers a lot. they contributed mightily to the financial crisis, buying up the mortgages. and over the years being prodded by congress and by the president, by hud to buy more subprime mortgages. liz: well, mike milliken of the milliken institute spoke specifically about this just two days ago and says that the government has got to get out of the business of helping people buy homes because it becomes very, very artificial. >> well -- liz: and he said the actual value of each american's self-worth, net worth has gone down. >> because here's why, because in the old days when you bought a house, you could actually afford buying a house. now you have to buy -- you get some crazy, you know, no-interest loan to buy house. my dad bought a hose, bought a very cheap house, small house. we moved out of an apartment, he bought it for something like 16,000. he had the wherewithal to put down 20 percent, and he paid it off. my dad was out of work
throughout the 1970s, we never missed a mortgage payment, you know? he would find something, and he'd be able, you know, he bended and drove a cab, but he still made that mortgage payment because we lived within our means. that was -- liz: before they helped people. >> when you help people, guess what? you actually drive the price of the homes up. liz: hurt them. >> it makes it more unaffordable to buy a house. liz: it's fascinating to see that ralph nader actually invests in stocks. that is a vise to me. >> it's going to be an interesting -- i'm assuming that you're going to try to book him for tomorrow. liz: we love ralph nader. he's come on the show many times. he and asman, i think, are friends -- to. >> oh, i doubt -- liz: they are. absolutely. charlie, thank you. >> how about -- [inaudible] i had to work it in. liz: charlie gasparino breaking it once again. closing bell -- and breaking my heart once again -- 29 minutes. look at this rally, whether it's better than expected jobless
claims numbers or janet yellen's approval -- at least by the senate banking committee -- there is no denying we are in massive rally mode. up 108 points. within striking distance of the highs of the session. the nasdaq better by 48, s&p jumping nearly a percent. guess what else is jumping? interest and excitement about the latest xbox set to launch at midnight tonight. but is there any way it can top sony's blockbuster playstation 4 debut last week? this is the stuff that big corporate battles are made of, but we've got xbox's chief marketing and strategy officer after the break with a whole host of its friends to show us how it works. ♪ ♪
♪ ♪ liz: so we're all looking forward to some hold lay cheer -- holiday cheer, but some retail giants are looking at what might be a dreary holiday. we do have a retailer coming up, i'm a little concerned, though, that i may be out of my element in just a minute. so stay tuned. you have to stay tuned in just a minute for this, but you get to your report first. >> reporter: i wanted to talk about some of the retail names we know so well. target today, right now, is over to 3% at 64.38, and target is saying what many of the retailers are saying, they're cutting guidance, they're worried about the holidays. target came out with earnings that were weaker than expected. they also showed some concern about the consumer as taxes have been on the rise and uncertainty about unemployment. and this is target that said that. i'm not saying this, this is what they said. we've also watched dollar tree. their sales increased but really
did not do as well as the analysts thought they would. so we're watching walmart and kohl's, all today now looking into the holiday season as we may see a drearier holiday than expected. of course, they're all beefing up, and they'll be hiring and getting ready. the question is the promotions and what does that that do for their margins. that's the kind of stuff we're going to be covering. back to you. liz: nicole, help me! i've been taken over! a zombie took my seat. [laughter] laugh get out of my chair. -- [laughter] get out of my chair. >> reporter: oh, my gosh, that's gross! liz: i could take her on. get out of here. [laughter] don't mess with the redhead. yeah. it's xbox day, okay? can i just say they brought in some pals, because they're gamers, and they want to have fun. and it is a huge day as they're waiting for midnight tonight to roll out the brand new xbox. this is microsoft's xbox one. of course, it's been one week is
since the massive debut of competitor sony's playstation 4. they had long lines outside of the standard hotel the manhattan, and what did they get? they sold more than one million consoles in less than 24 hours, but now it's microsoft's turn to shake up the gaming market. xbox one set to launch at midnight, but will it have as much success? yusuf mehdi is about to say, oh, yes, chief marketing and strategy officer. you know, it's not a good way to make friends with me by bringing in zombies. >> it's the gaming business. we've got to have some fun, right? liz: they've taken over our entire tuesday owe. they are -- studio. they are having so much fun. everyone tried to, you know, take their weapons through security -- [laughter] they're much tougher than that. now, these are, obviously, gaming characters, right? >> absolutely. liz: tell us as you bring those to life how it's going to be a better experience on the screen for xbox one. >> well, part of it's fun, but part of it is the message which is when you play these games, it's oing to feel like you're
playing in a movie. some of the characters are -- these are the folks who are going to get to play tonight at midnight, roman soldiers, zombies in dead rising iii, it's really going to be an immersive experience. liz: we've got it set up here, zombies notwithstanding -- [laughter] they're almost more interesting to look at. but here it is, the brand new console. and let's talk about it. this is the game that's a big racing game. >> just real quick, this is your home screen. you can personalize it for you, so you can sign in, this'll be, for example, stuff i can pin what i want. first time ever you get a personalized tv experience. these were the things you were doing last, and you see the stores where -- liz: oh, there are gladiators. >> as you want to see what one of the games look like, here is our first class racing game, one of the most visually stunning games, you're driving 212 miles an hour in a mcclaren p1.
liz: listen to me, make your case because i've got two choices right now. i've got the brand new playstation 4 that's $399, i've got you guys at $499, and i've got watch my christmas and hand country budget. -- hanukkah budget. make your case as to why you guys should be the choice. >> yeah. well, look, first of all, it's a great market. a billion play games, it's a great market for us to grow. we do more for that price, which is we do the best gaming system. we've got a lineup. 22 games, ten exclusive available tonight. and we're also an all-in-one entertainment system. in addition to gaming, you can watch live tv, you can do fitness, sports, music. we bring a complete entertainment -- liz: what does snap mean? >> you can take your screen and literally snap to the right so you can be, for example, playing a game and watch a video to help you play the game. liz: okay. because we're not all too
distracted like randy zuckerberg just told us. look, this is fascinating to me. you obviously want to be a whole entertainment system. does it work with other strategies within microsoft, say skype, bing, etc. >> absolutely. so i think xbox one is probably a flagship for microsoft that brings a bunch of things together. you've got the cloud, you get skype, you can do fully hi-def -- liz: okay. old games on the old xbox 360, do they still work on the new one? >> they don't work on the new one. liz: i'm going to kill you! [laughter] this is what i hear from people whose children have them, this is expensive. >> here's what we do that's great. we let you through a cable plug your 360 into your xbox one so you can still play your old games and few ones. liz: can you beat what ps1 has
sold? >> we're going to find out tonight. we've had the biggest preorders we've ever had, more than a factor of two to one versus 360. haven't given out specific numbers, but we're launching 13 markets, so we're launching more globally and to a pretty big demand. i think you'll see millions and millions of people using it this holiday. liz: microsoft up about 33% over the past year, no doubt xbox is a huge part of that. the mar gyps will be okay. >> >> yeah. i think we as a business we've been making profit for the last couple years, we think we have got a great value prop and a great opportunity to deliver to people. liz: they better never try and steal my anchor chair again. you tell those guys, they're just unbelievable -- >> you allowed the swords through security. liz: i did..% i got the swords through security because our crack security team, rightly said, kept them out until i said, it's hollywood. >> thank you very much. liz: yusuf mehdi, xbox chief marketing and strategy officer, and the gladiators and zombies
getting along quite well. we've got some breaking news, a u.s. jury just awarded apple $290.45 million in that patent damages suit in the retrial with samsung electronics. the stock moving up just a percent right now to $520.47. apple had requested $379.8 million, maybe that's why we're not seeing such a significant jump. samsung, however, argumented it should only have to pay $52.5 million. apple's stock did not get nearly what it wanted, neither did sam supping, but it's not exactly split down the middle. stocks holding their gains after janet yellen moves one step closer to becoming the next head of the federal reserve. we've got one money manager who says nothing, not yellen, not anything is going to stop this market's momentum. he will tell you where to put your money and in one case where not to put your money. some of the most popular stocks
he thinks stay away, and talk about a big oops, a pilot accidentally landing a boeing 787 cargo plane at a tiny airport in kansas with a tiny runway. we'll tell you all about the blunder and what they need to do to get out of it. ♪ ♪ 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? ♪
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complete opposite. total contrarian. stay away from stock market newbies. there are better choices out there, he says. where's he putting his money instead? barry james, president and ceo of james advantage fund. the fund itself is doing very nicely, year oh year up about 34%. that, of course, bests the benchmark, looking very good here, barry. first of all, why? some of these ipos have done so unbelievably well, and on top of it they're good companies. >> mr. they are. and i'm not going to speak against any company in particular. but if you look back at the history of ipos, generally the first year they do not do well. one of the things we like to look at are companies buying back shares of their company, those are good bias. those that are issuing new shares tend to dilute themselves and don't go up very much. when is the big withest issuance of shares? on the initial public offering. a company like facebook, for instance, a lot of hype about
it. fell dramatically the first year, but after the first year, that was the time to buy it, and it did exceedingly well. not to say none of these aren't going to do well, but i don't like to jump in on ipos at all. liz: i think that's smart advice because it can be awfully volatile. that said, the broader market has looked incredibly good. today we have a very nice rally. we're above 16,000, we could close in nine minutes above 16,000 for the very first time. does that mean that you feel that by the end of the year -- and there are only, what, about six weeks left of the year -- that while there may be a few warning signs and we're coming up against another debt ceiling battle that you feel pretty good about equities? >> i do. [laughter] if i can use a medical term, advanceitis. if it's rising historically, that's a good sign. i think of this kid that plays football out in washington state, they call him big tony or big ton, something like that, 400-pound running back, and it takes five or six people to
bring him down, and that's what the market has right now. easy money going on, typically 23% annualized gains when we have quantitative easing. to that's a real positive. -- so that's a real positive. and despite all the shenanigans in washington, the less that's done is actually good for the stock market. so you've got a couple things this place, plus parts of the economy are okay. there are some warning signs, but overall i think we've got pretty good view to the future be until we run into those hurdles probably as we get into next year. liz: okay. that leads us to your strategy, and with tapering potentially coming on the horizon in mind, you in essence say you look for inexpensive stocks, they're cheap with a good earnings record, etc. so let's get to some of these names. i'm looking at three that you have today, valero, horseman insurance and alaska air. all three of them up double-digit percentages which scares me, frankly, barry. they've had a very nice run already.
[laughter] >> well, you know, the nobel prize was for disproving the random walk on wall street. now, my father actually made that proof -- [laughter] ten years prior in his doctoral dissertation. liz: he needs credit! give daddy james credit. >> but it still works. it still works. those that outperform continue. it's just like a good baseball player, you know, you've got to pay him a lot of money, but you want to keep him on your team. so these particular companies are in some sectors we think are going to do pretty well. we look at the energy area, we've seen the oil come down. that's very good for refiners. anything below $100 they tend to make a lot more money. liz: sure. >> they're cheap with good dividends. horsman, they participate with this whole money thing going on -- horace mann, they're very highly respected, have been doing a good job. and alaska air, people may be with cutting back as you talked about the targets, but they're
not cutting back at the top line items, you know, the little more expensive items like taking those nice vacations to hawaii or alaska. so we still see that holding up well. great company, lots of profits. year after year after year profits, and they're rated best by j.d. power and associatings. liz: had people been smart, they could have bought between july and august at a very nice discount because now it's up significantly. [laughter] barry, that's right, i said it, get papa james the nobel prize. they stole his idea. >> there you go. [laughter] liz: thank you so much for joining us. we're going to put all of barry's stock picks and his previous picks to see how he's done on facebook.com/lizclaman. barry james, president and ceo of james advantage funds. closing bell, about five minutes. we are up above 16,000. you may witness history, and the s&p, just three points shy of its most recent record of 1798. and the dow may close above
16,000, as i said, for the first time ever. we are tracking every move. five more minutes, guys, got to see how this one turns out. ♪ ♪ hi honey, did you get e toaster cozy? yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt was full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.
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on the screen because those traders behind you may very well go nuts. we can not ignore green mountain. they reported yesterday after the bell. initially jumped and then sell pretip susly and took -- precipitously for people to find their bearings. >> they're doing well with the k-cups and brewers. as a result, it is up about 14%, up 70% this year. david: pandora, we're keeping eye on pandora. pandora and gap are about to release earnings. pandora is not waiting for earnings. traders are going right for you. it is up 4 1/2% right now. >> this year it is up 225%. pandora is a great performer. watching gap now. banana republic, old navy, are part of the gap. liz: surprised me, gamestop dropped after earnings. it had a poor outlook and still had decent numbers. >> we're starting to lose our
16,000. we're at 16,008 going into the closing bell. [closing bell ringing] david: we did it. liz: well the numbers still have to settle, keep that in mind. right now looks like history has been made, 16,009. david: where is the champagne? liz: got the applause, anyway. here we go. we have the s&p 500 also up, at 1795. russell go thousand, a nice move, up nearly 2%. david: wow! that is small and mid-size caps. folks who care about them as we do. of all the indices, twice what the dow is doing. more than that. front page headlines, this is the real front page headline the initial jobless claims fell to a two-month low last week. that is one. reasons the market did so well. the labor market could be strengthening. first time applications dropped to 323,000. economists were expecting a fall