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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 13, 2014 3:00pm-4:01pm EDT

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>> you're supposed to work up the courage to talk to someone face to face. my hands are getting sweaty just thinking about it. melissa: that's all we have for now. "countdown" starts rights -- right now. >> as the bull withs try to stampede their way towards another record day on wall street, which companies will get them there? fiat chrysler trying to rev up sales and gas mileage but not by going electric or turning to hybrid. our jeff flock has the inside scoop live at a brand new plant in tipton, indiana, with the ceo. what a marriage between at&t and directive, would it challenge the number one player, comcast? we look at the potential winners and losers and find out whether the planned comcast/time warner cable merger suddenly has more or less momentum. and making friends with some of
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china's 1.3 billion people. so far facebook's been walled off, but it may be getting ready to set up shop in beijing, a move that could pave the way to an even more friendly and profitable future. "countdown to the closing bell" starts right now. ♪ ♪ liz: good afternoon, everybody, i'm liz claman. so glad you're with me, it is the last hour of trading. yes, we've got a generally, yes, we're in record territory for the dow and the s&p, but, no, there's not a lot of oomph or strength to this rally. despite the fact that the s&p did something it's never done before. yes, earlier today the s&p 500 crossed the 1900 mark, though it's since come down just a bit. but if the s&p and/or the dow close anywhere in the green today, i mean, up one-tenth of a percent, it will be a record finish for each index.
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that, of course, would be the second day in a row. in the meantime, let's get to the stock story that broke yesterday after the bell. at&t's on again-off again flirtation with directv seems to be back on again, and both companies appear to have their eyes on an end game, a deal that could be announced in the next few weeks. yeah, at&t marching together with directv. we're looking at shares of both of these names, down just marginally. neither really reacted dramatically in the after market session when the news broke yesterday. let's get to retail sales, this could have a much bigger impact. they slowed in april as consumers cut back on purchases on everything from electronics to furniture. retail sales for the month of april rose just one-tenth of 1% last month. kind of like the gdp number we got, up one-tenth of 1%. in just a moment, this man, michael gould, was at the helm of bloomingdale's for 23 years. he knows from retail.
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we're going to ask him his take on the american consumer and whether he thinks all retail sales stores are created equal, which ones are best positioned. one business that's definitely seeing green today, the coffee company, green mountain. they got a big boost after coca-cola disclosed it is hiking its 10% stake to now 16%. all you have to do is look at this chart, shares jumping 7, nearly 8% or $8.67. it's been a nice picture all day. pulling back in these last couple of minutes though. still standing intraday, right now at $119.38. let's look at coca-cola shares, the dow component at the moment, and, again, coke is the one that's taking about 16%. coca-cola is up about two-thirds of a percent. to $41.09. all right, let's talk about the markets here because, again, we're telling you that the rally is great to look at, but when you really dig down beneath the skin of it, it's a very thin
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rally. what will it take for the markets to show some real conviction? with volume a little bit stronger? let's get right to the floor show, bring in our traders from the new york stock exchange, cme group and the nymex. teddy weisberg, does the lack of volume worry you, or is this the new normal? >> we haven't had volume really on the upside for almost four or five years, liz. i think the market has broken out of a trading pattern which goes back to december 31st of 2013. and the market's going to go higher. liz: oh, okay. teddy says the market's going to go higher. we've been talking about the fact there's some real tailwinds pushing this market along. what could you see derailing this? >> well, a couple of weeks ago we had all that deterioration particularly in the tech sector, and the market internals were looking very, very weak, but clearly we have broken to the upside. if you look at the chart of the daily, of the dow on a daily basis, it's -- if it were a stock, you'd probably buy it
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with your eyes closed. the market, quite frankly, has broken out on the upside. liz: you could do it with your eyes closed, says teddy. peter, looking at the energy complex, it looks pretty strong here, i'd say a percent gain on west texas intermediate for crude is pretty decent, but, listen, there's no other trade other than energy and stocks at the moment. gold is just simply not there. the metals aren't doing anything. corn and soy are moving higher, but it's not really a commodities market right now, is it? >> it was a pretty quiet session for most of the day. most of the rally happened into the close, after the close, about half of it, and the market looks pretty good. but it should slowly creep higher. i would expect it's going to trade up to around 103.25 at some point. but the big feature is you have our heating oil contract which is diesel fuel going over gasoline. that was the strongest thing, so it looks like the real demand is in diesel and not arbob or gasoline. liz: okay.
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the demand was also, i should say though, in treasuries, bill. going to the cme, to see a yield for the ten-year at 2.61%, suddenly what happened here? just happened to not be watching treasuries today. we were at 2.66% just two days ago. is this the retail sales number that came in weak and scared people? >> yes. retail sales played a big part in this. the market is at all-time highs in the s&p, but really when china data last night the fixed income investment, industrial production, that was definitely a disappointment to not beat expectations. and we're starting to see a little bit of a risk-off trade at these levels and moving into treasuries. liz: yeah. but to see techs do so well yesterday and then today not so much, the social media names kind of wavering, again, this makes people wonder what happens if there's one scary headline that comes out and spooks the horses? >> well, i think it could get pretty ugly really quick. but the fact is that until something dramatically changes,
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liz, on the landscape -- and that's going to be fed monetary policy or something really unexpected -- i think the lines of least resistance continue to be up. liz: yeah. and believe me, janet yellen does not want to set up a gun behind a herd of horses. quick look at the transports right now, they too are in record territory, up about 33 points or about i want to say -- well, year to date they're up 6%. i like that number. nice market here, the volatility index just about flat. gentlemen, thank you so much for giving us the real feel of what's going on all the trading floors around the united states. thanks so much. after years of doing business around the edges of china, yeah, facebook is finally getting ready to dip its toe into this massive market even though its service has been blocked by chief news censors since 2009. just like google, remember that? jo ling kent joins us. i guess they exited because they felt they did not want to be told what to do -- >> they didn't want to engage.
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but what facebook's doing here, i want to read you the statement i got earlier today. because of the rapid growth these businesses are achieving by using facebook, they're talking about companies that advertise on facebook. we are, of course, exploring ways that we can provide even more support locally and may consider having a sales office in china in the future. and, liz,i want to show you a timeline. basically, facebook has been working on a soft power play in china despite the fact they've been blocked over the past five years. first, december 2010 with, mark zuckerberg goes on a private visit to china, actually ran into him in beijing. we had a nice discussion about how he was not accessing facebook from within the great firewall. fast forward to last fall, sheryl sandberg shows up and meets with the head regulator of the internet in china, posts a picture on their home page, very big deal for china. then just last week the vp of development there, corporate development, saying they do robust business in china, they are inching closer and closer to
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going back. but i don't think a lot of analysts do not believe that they're actually going to be unken -- uncensored and unblocked anytime soon. the economy, of course, we've been covering that, is wavering a bit, so don't necessarily want to allow people -- liz: but don't you think there's something else, or is there something else that's similar to facebook? we're always talking about the google of -- >> renren. liz: could facebook overtake it? >> facebook could do it, and they definitely could have five years ago, but if you look at the past five years, renren, wii chat now which is part of ten credibility, they're all doing very, very well in china. why? because there's no international competitor. the only company that away want to talk about first, linkedin doing very well because it's real name verification, the chinese government can monitor you, linkedin saying they're launching this chinese-language
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site, that happened in february, and the ceo, jeff wiener, saying, you know what? we're going to go with the censorship because they want to connect more people in career paths. very interesting, different type of calculation compared to google. liz: but it sure looks like facebook executives are going in there to try and tenderize the meat that could be china, right? >> there's a lot of opportunity, but again, according to most analysts, we won't see the unlocking anytime soon, but they're looking at it. liz:on jo ling runs into mark zuckerberg on the street in china. [laughter] she has a way. top reporter here. closing bell ringing in about 50 minutes. will at&t and directv finally make a marriage of it, and what would it mean for the proposed merger between comcast and time warner cable? are they trying to settle that? we'll take a look at the quest for pay tv supremacy. and better gas mileage usually means going lighter or going
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electric. fiat chrysler's ceo going a very different route. by the way, you're looking at video -- okay, how often do you see this, a ceo getting hugged by members of the uaw in detroit in the auto world. well, guess what? it's happening right now. fox business cameras caught it. sergio getting the bear hug from our own jeff flock. the real story at a new fiat chrysler plant in tipton, indiana. he's got the tip, stay tuned. ♪ ♪ (mother vo) when i was pregnant
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but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. liz: the strategic corporate chess mh in the telecom and tv business is getting very interesting, indeed. the latest news is that at&t is said to be in talks the take over directv in a deal that could be worth close to $50 billion. then, of course, you have comcast and time warner. so is this deal going to go through? what would it mean for the comcast/time warner cable proposed merger? also what does it say about the future of the entire television business? joining us now, two of the smartest minds in media, jameses dicks, and brad adgate, he's verizon senior media vice president of research. when this news broke yesterday,
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my first thought was why aren't the stocks moving? because in a way, at&t, you would think, might have some movement, and certainly directv, they've barely moved an inch. does the market believe this is going to happen? >> i think there's a lot of pushback from the comcast/time warner deal and perhaps they're taking a step back and seeing whether this is going to happen. there's going to be a lot of scrutiny. you know, these are two very big deals. you take those two companies together, those two deals, you're going to wind up with 55 million, you know, cable subscribers, telephone, you know, people who can get cable television. that's half the country. over half the country. liz: james, if you approve time warner/comcast, don't you have to approve at&t and directv? >> well, i mean, you would think so. certainly from the fcc perspective, you would think there's some logic to doing that because if the logic of consolidation is to allow for more investment and more services, you know, the same logic would apply --
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liz: how many times does a, the and, the have to get turned down? they wanted to do all kinds of deals. sort of like are they, is the fcc being unfair with at&t? i'm really propelling ahead here. >> well, you know, i mean, they should perhaps take a deal with comcast. [laughter] comcast knows how to make a deal and get it approved. they learned from their mistakings. liz: comcast has hired lobbyists who used to work at at&t. either way, somebody should take a lesson here. what do you think, james, what kind of synergies would we see here with at&t and directv? >> leverage in the retransmission markets, right? that's been one of the stories behind the economics of television which you referenced earlier. you know, cbs had a negotiation with time warner cable last year, got pretty hefty increases in the retransmission they're getting. one of the issues is, you know, what's the scale of each player on the side of the market, right
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in and time warner cable with comcast would be much bigger, and, you know, likewise, you know? slightly different dynamic -- liz: and, brad, this at a time where just down the street at the javits center they're having the time where all the ad companies are trying to buy in advance for the shows that do well on cbs and nbc, fox and cw, etc. >> abc's later today over at lincoln center. liz: right, exactly. >> the upshot of this year's is content. they are investing a lot of money in content, and something that both nbc and fox said yesterday, event programming. you know, creating events. both of them are going to come out with musicals, fox will bring grease and back live, and, obviously, nbc did so well with sound of music, they're bringing back peter pan. so -- liz: again, these are live productions, live on the air. >> yeah. like sports. liz: 19 million tuned in to see nbc's sound of music. fox said we can do grease, it's
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a hipper show. [laughter] it's a classic to see sound of music. i don't want to diss that, but greece is amazing. we'll see -- grease is amazing. and are those selling? are the ad companies saying i want in? >> oh, yeah. because it's live, and the commercials are being seen. there's conversations on social media. it's like sports, but it's not sports. so we're seeing the networks create events kind of along the lines of the super bowl or the oscars. liz: i can see where comcast would certainly capitalize on that. at&t and directv would have a piece of that having retransmitted it. >> can yeah. it's really the networks that have to create that content, and then they decide how much they're willing to pay to put it into their systems both on the broadcast and the cable side. liz: what do you like here though? are there anymores where you feel investors should jump in at this point? >> i thinkoks pretty compelling because they've invested in scripted content down through the years. you know, fox made -- poked fun
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of them a little bit last night at their up front about how they've had multiple versions of csi and ncis, but that's a great model for, you know, expanding your scripted portfolio without having to do pilots, and -- liz: nbc's doing it, law and order, law and order: svu and then, of course, chicago fire, chicago ped. >> yeah. cbs would say nbc -- >> i think also we're getting away from procedural genre, serialized shows, limited series runs, 8, 10, 12 episodes. fox is bringing a show, grace point, something that's going to run ten wednesdays next season, and it's something that you can watch on demand or stream, perhaps go on netflix and catch up, and then there'll be a season two. and if it's like breaking bad, you'll get more viewers, and they'll be younger. liz: before we go, does the at&t deal go through? >> we, i think it will. liz: okay, i like that.
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he's one of the few that just says, yes, liz. [laughter] good to see you both, james, brad. thank you very much. love to have you guys. the closing bell ringing in 40 minutes. a dramatic new twist in the video game console wars. microsoft turning up the heat on sony. in its world wild battle to boost sales, we'll tell you just exactly what they're doing in a moment. it will surprise you. also shoppers all but stopped spending last month. is that a pause, the tail end of the bad winter? start of a pullback that could drag the entire economy down? literally, we have the best person to ask on this. michael gould is a man with his finger on the nation's retailing pulse. he's been through great times, bad times, horrific times, he's bloomingdale's former chairman and ceo with us live in a fox business exclusive. we'll ask him. ♪ ♪ we're moving our company to new york state.
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breo may increase your risk of pneumonia, thrush, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking breo. ask your doctor about b-r-e-o for copd. first prescription free at liz: it's a video game console wars t are like a game of chicken. microsoft has blinked first in its global fight with sony.
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microsoft today announcing it's cutting the entry price for its xbox one console by $100. listen, it was already $100 more than sony, so now the price, $399, the same price as sony's playstation 4. however, the new microsoft base-level console will not include the kinect motor sensor. listen, either way this is a victory for sony. microsoft says the move is designed to give consumers more choice, but it's also about trying to catch up with sony's console. the playstation 4 is winning the global sales race so far. sony says it's sold seven million devices to customers while microsoft has notched up sales to retailers of five million units. looking at microsoft's stock right now, it's trading higher by about 1.5%. flipping over to sony, sne, we got that? sony is moving up by nearly a percent. and just remember who shepherded that playstation 4, jack
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trenton. who was head of sony computer entertain. i say was. why do they let the people who know what they're doing go? i don't get that. fiat chrysler is making a bold bet. what they're doing is not what everybody else is doing. the auto giant is looking past electric and hybrid cars and suvs and focusing on transmission specifically. you're not a gearhead, don't tune out because jeff flock is going to explain it all. he's live at the brand new fiat chrysler plant in tipton, indiana. jeff, we saw some incredible video of his workers hugging him earlier. >> reporter: he is a rock star in plants like this all around the country. this is the world's newest transmission plant. it's not far from the world's largest transmission plant. and this is the bet with, liz, it's right here. this is a nine-speed transmission. nobody else has a nine-speed. it makes the engine much more efficient. and take a look at the impact, what the impact of that is. if you look at the old jeep
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liberty that they replaced with the new jeep cherokee, take a look at the mpg difference, about six miles a gallon, and that's 30-plus percent. it's huge. as you point out, he's got real reservations about the wisdom of ford going to an all-aluminum truck, he said that quite cleary, and he also says believe it or not electrics have been overblown by the media. here's what he had to say about the media. >> i'm also not convinced that especially in this country that the equation on going to electrical is really that wise. we need to do a lot more work on combustion -- >> reporter: a lot more work in combustion. he thinks a lot more can be done, making engines more efficient, and that's why they made this plant here. this is 800 new jobs, and curiously enough, liz, this place went bankrupt twice, this plant. it was going to be a solar panel plant at one point, a transmission plant long ago. lee found a way to bring it back to the -- he's found a way to
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bring it back from the ashes, and that's why you see him getting hugged. they want to pose with him like he's mick jagger or madonna or something, and it's a big burden for him in some regard, but kind of nice to see. back in the day when i used to cover the auto industry, they didn't want anywhere near the ceo of a company. liz: i worked in local news, so did you, jeff, and both of us are saying is that a guy in a costume? [laughter] listen -- i'm kidding. they like this guy. he reopened shuttered and mothballed plants, he has opened new plants, he has fixed jeep. people are buying jeeps like there's no tomorrow. i got no problem with this guy swooping in and getting a better deal. i don't care that he's italian. we have a lot of people in this building who sometimes say how could you let the italians get that deal? it's an iconic american company, and he kept it alive. >> reporter: and now it is truly an american company as well. it's a worldwide company, and that's what we're going to in a lot of industries. liz: it's all in the
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transmission. jeff flock, thank you very much. closing bell ringing in about 30 and a half minutes. blackberry, we haven't talked about them in a while, let's talk about them. it tries to prove it's still in the smartphone game with brand new device unveiled today. up next, we'll find how how this handset stacks up against its competition and what investors think about blackberry's big reveal. and with retail sales flowing to just a crawl, we'll ask bloomingdale's former chairman and ceo michael gould when he thinks american consumers will open their wallets again. it's a fox business exclusive you don't want to miss. ♪ ♪
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♪ ♪ liz: as the weather finally heats up, many home builders are basking in the sunshine. finally, nicole, these names have been beaten down a little bit. >> that's right. and we've been watching the home builders very closely, and we're seeing names -- i'm actually standing and wanted the show you right now, we're taking a look at toll brothers which is up nearly a half of 1% at 34.89. but the group overall really is doing well. this news here that fannie mae and freddie mac won't have to lower the limits for home loans that they buy back is helping this group along. dr horton up 2%, lennar up 1.5%, and overall on this record-setting day here on wall street, liz, this group really is doing very well. we are seeing the vixx, the fear index slightly to the upside, but keep an eye on these home builders as we go into the closing bell. liz: so the s&p is up just
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two-thirds of a point, folks. it doesn't matter. if it's up 1-99th of the a point, it's still a record. well, not a record. what we saw in retail sales coming out for the month of april after posting the strongest gain in four years in march, the latest retail sales data disappointed bigtime. wall street was looking for four-tenths of a percent gain. what'd they get? a mere one-tenth of a percent gain in april. what does this all really mean? what's going on with the american consumer and the psychology here? earlier today fox business' maria bartiromo posed this question to liz anne saunders. here's what she had to say. >> consumer discretionary, broadly, as i said, has been in a corrective phase since the incredible outperformance, and retail in particular has taken it on the chin. look, the consumer's not in great shape. i think deleveraging has largely passed b i they're still -- but they're still kind of in hungered-down mode. liz: could the consumer be in
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worse shape than we believed, and what does that say about the broader economic recovery? joining me now in a fox business exclusive is, i am sure, somebody who at least has a sense, michael gould, former bloomingdale's chairman and ceo, at the helm for 23 years. >> yes, liz. liz: well, you've been through thick, thin and really thin, i'm sure. what do you think or do you even watch these retail sales numbers? >> yeah, you can look at the number, but the fact is this a trend or really an aberration of weather. i've never let the apparel people talk about weather as an excuse. but i think there was such an aberration over the last three months that i think it's going to be very difficult until you see the second quarter numbers to see whether this was some weather issues or whether there's a fundamental change. liz: you're mean. you were such a tough boss, i bet. i don't care that it was snowing, you better make these sales. i mean, that's the thing. a lot of these stores came out and said it was the weather. you don't buy that. >> no, i do buy that. what i meant to say is this is really the first time i would
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buy it. liz: oh, the very first -- >> other than the, obviously, a snowstorm, but for an extended period of time, it usually but when you look at irrespective of a later easter and you look at some other numbers, it would just indicate that the weather was much more of a determined factor in this quarter than ever before. liz: how long does the residue of weather continue? >> well, i don't know about the residue, but you're going to have a lot more markdowns than you had in the past because spring is here now, and now we're in the second week of may. you have to clear these goods by the end of june. so the fact of the matter is there aren't enough weeks left to sell at regular -- liz: and people always talk about having that must-have piece. floral suddenly got very big in retail, and i had a lot of people say i've got to at least buy one piece that has flowers all other it. isn't that something retailers really need, sort of that one trend that looks good? >> i think you need a trend a lot more than a floral. i mean, that's one of the
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challenges right now. my observation is it's still the accessory business. it's still strong. the other buzz, i think that's strong is the active wear business, but the women's apparel business in general is really soft, and there are probably a number of reasons. liz: who impresses you? when you look at a business model or a company, you look at that and say that's a nice business they're running. they've figured it out. >> well, if i didn't say bloomingdale's, how could i forget after three months? liz: well, you mentioned active wear. say, for example, huh lu lemon. -- lou: lemon -- lululemon. >> i think snored stroms has done a decent job with it. but i think the businesses as it relates to a total retail business, online and outlet business. of. liz: there's so much more to retail sales. there are auto sales, we should also keep that in mind. it's not just apparel. but because this is your
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expertise, looking at, say, for example, the big box department stores, the sears, the jcpenneys, they have struggled. each one has a unique problem, i would think. not the same problem. do they eventually survive? >> i don't know, time will tell. i think sears and pennies are going to be real challenges going forward. but i think they're department stores, stores like bloomingdale's, niemans, i think those stores have great future. people have been talking about, oh, well, the online is going to put the stores out of business. but the fact of the matter is the online business is about 5-6% of total retail sales. so the store business or the market business has been in existence since the greeks. and people want a place to go. people want a connection. and i think that stores run as excitement, as theater, as energy have a great, great future. liz: well, you can touch and feel stuff, and it's interesting, we've been focusing on how brick and mortar is back or it never was gone in the first place. for example, 1-800-flowers, jim
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mccann talked about how they're saying people want to walk in, see what they're ordering and know it's out the door. radio shack was going to close many, many stores, they've scaled that back. part of the reason due to demand about debt and things like that. but either way, there's still a real opportunity for doing brick and mortar correct he. >> well -- correctly. well, the stronger the brick and mortar, the stronger the online business. the shopper who shops in both channels is probably worth four, four and a half times more than the shopper who shops only one channel, and my guess is the same is true at niemans and nordstroms. the fact of the matter is there's no one thing. and i think the more exciting the stores are, the more people come in the stores, go online to see what's in the stores and vice versa. liz: what would drive you nuts when you walk into one of your stores and just as you're observing employees or store traffic or how things are displayed, what's the one thing that irked you and most and you said if we do this right, we'll get it right? >> well, i think the thing that would irritate any retailer, an
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associate on the floor that's inanticipative, an associate that wasn't engaged. people come into a story for a reason. we have to be excited. [laughter] >> let's face the facts, there really aren't a lot of things you need in apparel. but if you have engaged associates, people that want to create a relationship with you, we have all that ability at the register, then why can't the store continue to be greater and greater? liz: 1991 is when you started as ceo of bloomingdale's. >> yes, it was. liz: i already tried to ask him what's next. he's not getting into it at the moment. michael gould, former ceo and chairman of bloomingdale's. closing pell ringing in about 18 minutes. an old smartphone powerhouse makes a play for emerging markets, launching a brand new device in hopes of reviving its shriveling market share. too little too late or just the right idea? we've got the details on blerply next. and the markets may close at
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4 p.m. eastern, but so much happens after that, and i'm always on call for you. head to call. join claman on call. what it is, i'll give you a recap of the major headlines of the day and the most important after hours action delivered in 09 seconds right to your -- 90 seconds right to your smartphone. don't miss it, come on, sign up. ♪ ♪ up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up.
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liz: record territory for both the dd the s&p at the moment. we're looking very healthy with the transports, the nasdaq can't
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quite make it, the russell pulling back today by ten points after a really good day yesterday. let's just keep that in mind. the fight for the world's next billion smartphone users is heating up with an old powerhouse, making a new play in emerging markets. we're talking about blackberry which launched today its new touch screen z3 phone, but they didn't do it here, they did it in indonesia. not expensive. $190. now, look, i say it's not expensive, it sounds cheap compared with prices for high-end phones from apple and samsung, but it's still much more costly than the new $25 firefox phone unveiled by mozilla at the mobile world congress earlier this year. that device may not have the capabilities of an iphone 5s or a galaxy s5, but reviewers were generally impress with the the device. however, even cheaper smartphones could be in the works. the chip maker arm, arm holdings, right? recently predicted we could soon see android devices with a price
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tag of as little as $20. just about 10% of the new blackberry phone's price. checking blackberry stock, it's higher today by one penny? poor blackberry. they unveil stuff, they bring in alicia keyes, nothing works. still a great product, i think. the wall street puzzle palace has everyone guessing at this hour. will the dow and the s&p 500 close at another record high or take a step back? our next guest says have no fear, the best is yet to come. to hear why he's running with the bull, we bring in jamie cox, harris financial group managing partner. have you ever gone to pamploma, spain, and run with the bulls, jamie? >> no, no, that's not my game. liz: yeah. not going to happen. but you are running with the bulls, so to speak, because you feel that things are looking pretty good. but you're also looking at a correction possibility or no? >> yeah. i think you're always looking at a correction possibility. that can happen. it happens generally a couple times a year, so i don't think
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that's really a story. i think the bigger story is we've all been talking about what's been happening the last couple months, whether it's weather related, whether it's not. and i think the overwhelming majority of people out there believe that the winter was a factor in the economic data for the first quarter. so it's going to be back loaded. we're going to see, you know, probably a lot more spending, a lot more consumption in the second half. so that's why i feel like the stock market has a lot more to go. we've got a lot of runway left before we end this game. we're sort of mid cycle. a lot of the stocks that did really well in the early cycle, your small caps and things like that have already made their run. so what we're seeing is large companies really take over and start to do well. i don't like the utilities so much, but i think in this space in energy, banking, financials, i think you're starting to see those take the baton and sort of move forward. liz: well, a couple of sectors that got smack inside the face were social media and technology. they started to come back. having a little bit of trouble today, but let's talk about that space. do you like anything in there?
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if so, what? >> well, i love social. i mean, social media's sort of the new fad. but in that collapse that we had over the past couple of months, there have emerged a couple of opportunities. one of them is twitter. i mean, i love the technology, i use it all the time. it's a great way to bring people closer together. liz: what are the profits, jamie? i'm very concerned when billionaires like jeff green are shorting it because he says the valuation is ridiculous? >> twitter is too early in the cycle yet to determine exactly what their profit is going to be a couple years out. but if you look at what they can do, we're not yet seeing the potential of this, of the communications strategy. we don't know what the monetization is yet, but it's worth the chance because one of two things is going to happen. either twitter is going to be swallowed up into a larger company like an apple or a samsung or a microsoft or something like that, or it's going to fly on its own. think back ten years ago when youtube was on its own, and look what google did with it.
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so same thing could happen to twitter. you've got two possibilities to make money in that stock, and it's a pretty compelling value. you buy it in the early 30s, if you can -- sun trust thinks it's worth 45. so it's a good place to be. liz: yeah. at least some cream to skim off the top in the future. >> correct. liz: a lot of people are coming on and talking about the energy space. it is higher today on balance, but do you like any energy names, and if so, which part of this complex? you could go soup to nuts, you could go to the guys who extract it, the re2350eu7bers, those who sell it. refiners, those who sell it. >> i think a lot of larger cap companies, exxon, those companies have run already. the place where the value is to be educate tracted is more -- extracked in more in like an apap chi or schlumberger. apache's been called up in a couple of things, some assets in egypt, and free port bought some assets from them a couple of
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weeks ago. so that's a good spot to be as well. so i think if you're looking in the energy space, go where the exploration is going to happen. because if the $100-a-barrel oil leads to a lot more exploration opportunities. liz: when you're looking to pick stocks for your portfolio, and you've done pretty darn well, you now have nearly a billion in assets under management, jamie, what one or two characteristics must a stock have before you'll commit money to buying it? >> well, i think that there are two things, but we manage money for retirees, so we have to have cash flow. our retirees can't derive income off of growth for any meaningful period of time, so they have to have dividends. so we look for those type of companies primarily. and then secondly, we want the companies to have solid management because not only do you need cash flow, that can go away, can evaporate if you don't have the people who manage the business, make it exciting and make people want to continue to buy those products. i think that those are the primary characteristics we look for in the companies that we
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buy. liz: i like this because, again, retirees, and we're all eventually retirees, god willing, need that income, and that's the way you do it. jamie, great to see you. thank you for joining us. >> thanks so much. liz: jamie cox is harris financial group, and it's great to have you with. he's the managing partner. all right, we're about six minutes from that closing bell. we told you that keurig coffee up today, right? used to be green mountain coffee roasters, this after coca-cola disclosed a larger than the regular stake, it's up to 16% of the coffee company. coming up in the next hour, the ceo of italian coffee competitor eli. it's what we use in my house. it's been brewing some of the world's best coffee since 1933. andrea is our exclusive gifts on the prices, expensive right now. stay tuned, closing bell. are we going to see a record? gotta watch. ♪ ♪
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but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cance worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron.
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liz: david asman joins me now. record once again for the s&p. david: another record. barely. nice we didn't lose yesterday's gains though, you know? you got to count your blessings. liz: even with a fraction of the point for the s&p. let's go to nicole petallides. she has been watching every tick on the floor of the new york stock exchange. nicole, after a bounce-back yesterday we could look at twitter. jamie cox loves it right now. not doing much today. >> it is interesting. don't forget, it is down over 45% this year. for people that love twitter, love it even more 45% to the downside. they're still skeptical about the model. ad revenue and the like. you see the stock down 1.9% today. not great. it bounced back a little bit but it is near the lows. david: one thing that is more
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worrisome than no real stock gain the fact there was rally in treasurys going on of the rates were way down. when the rates go down the value of treasurys goes up. is that a concern to traders at all? >> that is interesting. that may have been correlation to the retail sales numbers, dave. liz: okay. elizabeth arden having a terrible day falling 22%. they had a miss here but that's a big punishment. what's up? >> right. that is north american sales. their north american sales have been atrocious. that is why you're seeing the stock completely to the downside as we go into the closing bell. s&p fractionally higher. david: you like healy coffee, nicole. >> i like all coffee. david: today we have the man who heads the company, on perhaps in his honor. look what happened to green mountain coffee. up almost 8%. >> coca-cola increased its stake in keurig green mountain. you see the stock went higher.
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[closing bell ringing] they are loving it. liz: here we go with the bells ringing on wall street. let's look and see how stocks finish up. is it a record for the s&p? we actually won't know for a couple minutes. right now with a gain of half a point, sure looks like it. dow jones industrials, up 19 points. today it was nasdaq and russell that were struggling again, overall very thin volume. not a lot of conviction behind this rally. david: remember, how much they added on yesterday. it was up over 2%. huge gain in the russell. they still haven't lost all gains from yesterday even though down day today. front page u.s. headlines. liz mentioned sales barry rising. commerce department says they only increased .1%. the data raising new doubts about an acceleration of economic growth in the second quarter. liz: american households racking up an additional $129 billion of debt in the first quarter, mainly because of home loans.


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