Transcripts For FBC FOX Business After The Bell 20130212

Dave. David all right, apple. The stock was getting a little pumped up by the suggestion by David Einhorn that they go out and do something with that 150 billion of cash they have. Well, guess what tim cook did . He poured water on that, calling David Einhorn a silly side show, and the stock didnt like that. Reporter he thought the whole thing was somewhat bizarre. He said that the idea of preferred shares and dividends was a creative one. David tim cook, dont fight the tape, dont fight the tape. Thats clearly what hes trying to do. Liz okay, and here comes that closing bell, and the bells ring on wall street. Didnt quite make that fiveyear record high, but here we go, were looking at green on the screen. Dow jones industrials moving higher by about a third of a percent, adding on once again. And look at the s p 500, not quite at 1520, but you could call it pretty much there, 1519. The russell 2000 looking rather healthy, up half a percent. Its the nasdaq dragged down, i would say, by apple that is having a little bit of trouble. Cisco also lower. David shows what happens when you get into a shooting match with David Einhorn. Financials key names in the sector, bank of america, citigroup trading at the highest levels since may of 2011. Jpmorgan, by the way, touching the highest levels since, get this, june of 2007. Remember those good times . And Goldman Sachs hitting levels not seen since early 2011. The s p financial index is trading at the highest level since the lehman crisis. Liz housing stocks building big gains today. Shares got a lift after some Home Improvement product maker, masco, reported better than expected earnings. The gains led by hovnanian, and that Group Pushing the philadelphia housing index sector, and here it is. Look at that. A nice move there. Thats a fiveyear high, once again. David our friend is cheering, 11 gain on hovnanian. Were going to talk about action in the currency markets as we get set for the g20 meeting later this week, i believe thats thursday. The yen gaining against all 16 of its peers on comments from g7 officials, some members expressed concern about the countrys excessive moves in their currency, but all currency markets have been wild this past week. Liz speaking of wild, weve got a wild Earnings Report after the bill. Tangor outlets, bull low wild wings, were going to have those numbers as soon as they are released. Plus, in just a few minutes, rimm i dont imaginers joining us in studio. He expects the to have not one, not two, but a few lost decades, but that doesnt mean you have to lose. Hell tell us where investors need to be putting their money right now. David by the way, his book is street smarts, and hes one of the smartest guys on the street. Were going to be heading to the white house for tonights big state of the Union Address, plus steve forbes in studio telling us what he thinks president obama needs to say and do to grow our economy. Liz but first, todays data download. The dow and the s p 500 hitting new fiveyear highs today with the dow pushing back above the 14,000 mark. The nasdaq, though, as we showed you ending the trading day in the red. Financials and telecom were todays Top Performing sectors while technology, Consumer Staples and health care were the ones that kind of lagged behind. Did you see corn . Corn falling for an eighth session in a row on reports that output is expected to climb in south america. That supply goes up, corn hits an intraday low of 6. 93 a bushel. The grains lowest price in one month. And u. S. Small Business Owners confidence increasing just slightly last month but remaining near record low levels. The National Federation of independent businesses reporting its index rose to 88. 9. The survey says uncertainty about the economy has kept small Business Owners from hiring and expanding. Its the old u word. David by the way, it has been a wild day for Buffalo Wild Wings on expectations of their earnings. We dont have to expect 234eu78, weve got the earnings. Adam shapiro, what are the numbers . Reporter thats right. The adjusted earnings per share came in at 89 cents, the convenient was expecting 96 cents. Revenue, however, is a big beat, the stteet was expecting 294. 4 million. The stock is trading down after hours. Here is something that might be driving all of this. Samestore sales increased just 5. 8 at companyowned restaurants. The ceo actually making a statement about all of this talking about the difficulty in some of the comparisons that people will be reading as they go through this Earnings Report. Quote we are energized and determined to achieve net Earnings Growth of 25 for all of 2013 when compared on a 52week basis to last year. Im going to throw it back to you. David by the way, the stock ended the day at an intraday high at 81. 07, so it was at a high peak when it was kicked around a little by only getting half of it right on the earningsment it is off of the lows after sessions at 78. 62 which is the bid right now. Lets get to todays action with larry in the pits of the cme. Larry, first buffalo wild wigs. It was trading wildly high, its come down to earth as a result of these earnings. Yeah. This is the important takeaway with Buffalo Wild Wings, 20 of its stock is being held short, naked short by people that are very bearish on the stock. So no matter how you feel about the company, its going to temper any down move in the stock. So many people short it looking for any way to get out of the stock, buying it back. David interesting. Yeah. Some people think its had its day in the sun, some people think that chick p wing prices chicken wing prices are going to increase in 2013 holding down pressure, but the fact is theyve got the Market Segment correct. Its a great store for a 12yearold or an momentum who wants or an adult who wants a beer, have dinner. I think its a great stock for the long haul. Liz okay. By the way, were waiting on tangor outlets which is the only pure play outlet mall company and bank rate. Com, so were waiting on that. But in the mean time, lets talk about the action here today, larry. Not bad at all, and we inch closer and closer to what is the big number, 14,16 i dont know, is it 3 . 5 . Ive lost count, renewed and released during the year, and a lot of investors will be looking at the occupancy rates within that report. Back to you, liz. Liz okay, thank you very much. Well, the ask is higher, but the bid is a little bit lower there. Record amounts of inflows, well just say record inflows, into fixed income funds worrying some of wall streets top investors yesterday. I sat down with Goldman Sachs president and chief operating officer, gary cohn, heres what he had to say about the trade thats been on for more than a year. What we can tell you for sure is a lot of money has gone into the fixed income worlds. Weve seen two or three years of almost record issuances. tis. Liz doesnt that worry you . It does. At the end of the cycles, they change, and no one knows its the bottom or the top of the cycle. Weve been in a 32year bull market in bonds david so is the bond market about to burst . Joining us now, jim rogers, author of the new book i guess its about your 145th book called but this is the best, folks, buy street smarts. Look at that casual jim rogers who is, i assume, standing in singapore. Chinatown. David bond traders have been the butt of jokes on wall street because theyve had it so easy for 30 years. Now theyre going to have to work for a living. [laughter] 32 years. David 33 years. What are they going to do now, these bond traders . Ive been short bonds a couple other times and been dead wrong, so dont trust me for tommy, but im short u. S. Government bonds. David what happens to these bond traders . I hope thai going to go bankrupt. [laughter] i hope im going to make some money instead of them. Liz jimmy, you know timing is everything. I know. Liz its just as bad to be early as it is late. Youre not wrong, and you heard gary cohn say the same thing, it is worrisome. And weve watched it for more than a year where people piled into that fear trade, but when the herd eventually shifts and moves, although you could argue thats happening now with a lot of people going into equity, who gets stampeded . What can you anticipate . Well, the previous bear market in bonds was 35 years. This bull market has been 32 years, so i hope, liz, that im not getting on top of a 35year bear market. So finally ill make some money. Liz where will you be long at this point . Im long russia. I bought russia since we spoke last. Im long the ruble, and im trying to buy the russianing bond market, speaking of bonds. David now, you were short the euro last time you were here. Are you surprised the staying value of the euro . Im startled, im more than startled, im stunned. David have you lost money . No, no, no, i got out. I bout swiss francs because i figured it would maybe break free. The euros gone up more. Speaking of timing, you see how smart i am, you know . [laughter] david you win some, you lose some. Well, listen, the swiss franc is up david why the russian ruble . Everybody hates russia. For 46 years david i like the russians, but i dont like putin at all. For 46 years i was bearish on russia. I think theyve changed. I think mr. Putins changed. I didnt say im inviting him to dinner, but hes changed. Liz well, you are heavy commodities, we just had the ceo of the Worlds Largest aluminum company, hes doing just fine going into norris nickel. A lot of that opportunity is really there, but then the question becomes you said im trying to buy russian bonds . What do you mean try, you cant do it on the open market . Its just that im too lazy. I dont work hard like i used to, you know . I just got to get around to it. No, but when i get around to it, im going to buy russian bonds. Liz okay. How do you feel about u. S. Ec weties . Equities . Id rather own japanese equities. Of the two, id rather own japan. David arent they going into the a recession . Their policies youre not a Big Government guy, and they still are, right . But, david, youre supposed to buy low. I know your parents taught you to buy low and sell high. Japan is down 75 from its alltime high. Many problems david couldnt it stay down a little longer . It could stay down the rest of my life. Liz but then youd be fighting the tape because right now you have the Prime Minister saying im all in, and hes almost behaving as the Federal Reserve here in the u. S. Did a couple years ago by pouring in tons of liquidity, devaluing the currency. He said, and i quote i will print unlimited amounts of money. And hes doing it. And then mr. Bernanke said, wait a minute, i can do that too. I mean, youve got everybody in the world. You heard what larry said before, everybodys racing to the bottom, everybodys trying to deway their currency. Debase their currency. David liz asked you about u. S. Equities, and you immediately went to you russia. What is jim rogers impression of the state of the American Union . [laughter] with do you have to ask . Look out the window. Things are not great here. What i did, i went to liz weve got a recovering Housing Market. Yeah, things are better, but i mean, please, liz, weve been in a complicated situation for some years, our debt is going through the roof. In the last five years our debt has gone up more than the entire 200 years before that of the republic. This is not good news. David if the United States was a stock, would you be long or short . Id be short. I hate to say this, id be long russia and short the United States, long japan and short the United States. This is just whats going on in countries. And japan, by the way, japan i cannot conceive of owning five years from now, but at the moment, id rather be long the japanese stock market. Liz well, its working right now. Were talking about stocks now. Im an american citizen. Im an american taxpayer, so dont get too carried away. [laughter] david all right. Another picture of his book, please . Street smarts is the name of his book. Ah, jeez. You know what . Well put one on during the hour. Absolutely. And you were right, its better than the previous books. David is it better than the motorcycle book . There it is. Liz thank you, jim. People keep writing me that its better. David youre now the king of singapore, right . No, i guess somebody else has that job. Liz dont chew gum. [laughter] tonight the economy and jobs are supposed to be front and center at president obamas state of the Union Address. What can we expect to hear . Will it bring lawmakers together or cause more divide . Up next, we go live to the white house for a preview. David also, in the last few days we heard two Different Things on housing. Yesterday right here gary cohn, president and coo of Goldman Sachs, told liz that housing is back, but David Stockman told us we are at start of a bubble, another one. Later this hour find out one of the biggest names in real estate is saying, dolly lenz will be here with her views. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct suting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. More likes. More tweets. So, beginning today, my son brock and his whole team will be our new senior social media strategists. Any questions . Since we make radiator valves wouldnt it be better if we just let fedex help us to expand to new markets . Hmm gotta admit thats better than a few likes. I dont have the door code. Whos that . He won a contest online to be ceo for the day. How am i supposed to run a business here without an office . [ malennouncer ] fast, reliable deliveries worldwide. Fedex. Liz bank rate reporting earnings jut minutes ago, lets go back to nicole on the floor of the New York Stock Exchange with the numbers. Reporter liz and dave, these numbers are not what analysts were expecting. Lets delve into these numbers, what the expectations were and how bank rate missed. Well start off looking at the earnings per share coming in at six cents versus estimates of 11 cents. So, obviously, shy with that one. And then when you look at revenue, 93. 2 million which that was below the 106. 27 million. So really missing here on the top and bottom line. And then how about the outlook . Sometimes if you miss on the quarter and give a great outlook, its good news. Well, theres no great outlook here. The outlook is actually quite weak, and theyre talking about revenue not being good news here, talking about it being flat. They expect, basically, flat compared to 2012. And when im delving into the revenue numbers, not good news there. Theyre based in north beach, florida, and the last thing i wanted to note is this stock closed above the 12 mark, so, obviously, the shares are getting hit, and this is in addition to what weve seen in the last 52 weeks. Its down 50 over the last 52 weeks, and tomorrow certainly is looking like another down arrow for bankrate. David 20 down after after hours. Well see. Well, if youre looking for something cheap, maybe go in after the bears get in there liz if you loved it at 12, youll really love it at 10. Thanks. David one way to look at it. President obama delivering the first state of the Union Address of his new term tonight. Liz what can we expect from the president as lawmakers continue to battle over the budget . Peter barnes at the white house with the very latest. Peter . Reporter hey, david and liz, thats right. On the budget, at least, were probably going to hear a lot of familiar ground, the same, pretty much the same familiar blueprint from the president tonight. He wants a balanced approach to deaf of sit reduction that would combine both higher tax revenues from closing tax loopholes, at least on this go around again combined with spending cuts including some entitlement reforms. But i also asked the president s, one of his top economic advisers, gene sperling, this morning what the president would say about energy. For example, would he announce his support for the Keystone Pipeline . Heres what sperling said. The president thinks that energy is a critical part of our economic future, and he will certainly talk about that, and hell talk about that in many ways but most specifically on the importance of what that can mean not just for our energy security, but for our Economic Security and for jobs and innovation in our economy. Reporter so i didnt get an answer, obviously. [laughter] now, on the question of spending cuts and how serious the president would get about proposing those, Speaker Boehner told reporters this morning, quote r eporter and by the way, the Senate Democratic leader, harry reid, said that he would have his first meeting in quite a while with Speaker Boehner later this week. David and liz . David all right. Well, you asked the right question. It wasnt for want of trying that you didnt get an answer of some kind. Thank you, peter. Well see more of you tonight. And tonight it all begins at 8 p. M. Live coverage of the state of the Union Address hosted by my buddy, he is back and roaring, neil cavuto, delivering well, hes not delivering the state of the union, but perhaps someday he will. You never know with neil. Nothings going to stop him. Liz neil for president. We will have much more on the state of the union and the president s plan for Economic Growth when steve forbes joins us later this hour. David also, where are companies turning to raise money . Were going to take a close look at why public debt and equity issues are falling at private and private issues are rising. This is a very interesting story about where companies are getting cash. Details in a moment. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gas turbines are now poweringome of americas biggest cities. Siemens. Answers. But we can still help you see your big picture. With the fidelity guided portfolio summary, you choose which accounts to track and use fidelitys analytics to spot trends, gain insights, and figure out what you want to do next. All in one place. Im Meredith Stoddard and i helped create the fidelity guided portfolio summary. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Liz the term crowd funding didnt en exist a couple years ago, but now it does, and how will crowd funding affect the public and private markets . Our next guest is anticipating a major shift as Companies Increasingly move away from the highly regulated, costly Public Markets to private markets and money from strangers. David and private markets which are a lot less regulated and costly for a company. So as the sec prepares to issue new regulations, will they be able to maintain that balance between public and private markets . Joining us now is daniel, mil Ken Institute director of Financial Markets policy. Great to see you, daniel. You had a wonderful this is why we got you on here. That piece in the wall street journal called who needs wall street was provocative and, essentially, talks about crowd funding, visavis the new jobs act which allows for much more freedom for companies to issue stock in the private sector as opposed to the Public Markets which are much more highly regulated. So what how would you balance that out . What could, what can you do if you issue in the private sector that you cant do in the Public Sector . Yeah. Well, first and foremost, thank you for inviting me on to your program. David of course. Look, the jobs act is a bill thats focused on improving Capital Access for american companies, especially startups and small businesses. It was a bill that sailed through congress with overwhelming bipartisan support but really seems to have flown under the radar of many Market Participants and observers. It does mark a major change in securities laws, and as youre mentioning here, two of the ways are by, one, making private Capital Markets even more robust and liquid and, secondly, by legalizing securities crowd funding for the general public. David so, daniel, let me quickly intercede because usually we talk about more regulations is a bad thing. This was a new regulatory structure that really could benefit private companies in america. Yeah, thats right. So what title ii of the jobs act does, its going to change the Way Companies Market Private securities to wealthy investors and financial institutions. Basically, a private security doesnt have to go through costly sec registration which is a timeconsuming process as well, and it allows, it allows companies to raise money without much regulatory oversight. So it is much more Cost Effective for them. What the jobs act does is it lifts the ban on general solicitation for these securities. And what that means is companies for the first time will be able to mass market these securities to wealthy investors and financial institutions. And this could be a bit of a game changer as new investors enter the marketplace and provide more liquidity in private markets. So if youre a company and youre looking to raise money, you may opt to pursue private Capital Markets and defer or put off altogether going to Public Markets through an initial public offering. Liz and you dont even have to fly to sand hill road in Silicon Valley to do it. The old way was to sit there and beg the Angel Investors out there or the venture capitalists, but now its kind of impressive that an act out of d. C. Was really helpful to businesses that want to be created. What kind of job creation do you see eventually down the road . I know its not going to be instantaneous, but if all of these companies and ideas out there can finally get some funding without going through these onerous regulations, what does this really mean for job creation . Well, look, this could definitely be a boon for private Capital Formation, especially in private markets, and then when we talk about general public crowd funding, thats another avenue where average investors will be able to or average citizens will be able to invest into startups and small businesses. And were talking about local community, mom and pop shops, restaurants. These kinds of businesses that have been starved of capital whether its because of tight credit markets or because, as you say, its been very hard to get money from traditional investors, this new boon, this ability to tap multiple smaller investors and aggregate capital could be a bit of a game changer. They certainly will be able to grow and expand their businesses. But, look, on the flip side here and what the sec is grappling with as well is putting in place proper regulations and balances to make sure that investor protections are in place as well. Because we are changing the way that Capital Formation will take place. David you bring up an interesting point because greater freedom always means greater risk, and many people are always pointing out this is a risk averse administration, the Obama Administration. They spend a lot of time worrying about the risk that investors entail. Wont this sort of eventually demand a whole new set of regulations, for example, on how you resell some of these unrebelling straited securities . Unregistered securities . Yeah, look, its a great question. And i will say, you know, what made the jobs act so unique is it truly was a bipartisan effort. The Obama Administration was very much so behind the jobs act and especially public crowd funding, but theres no question that there are going to have to be proper checks in place. Title iii of the jobs act that deals with public crowd funding already does have some restrictions in place. Theres limits on how much capital can be raised and how much individual investors are allowed to actually invest. So that kind of limits the downside risk. But with the private Capital Markets markets and when were talking about wealthy investors, what we see is there are 8. 6 million accredited investors in the u. S. , but only 3 investing in startups and small businesses. Now when you can maas market to these folks, theres no question that some of these sophisticated investors or at least who the sec presumes may be sophisticated may not be. So do we need to put in place some baseline regulations that allow proper information disclosures so that people can make sound Investment Decisions . David isnt it nice to know, though, they can do something right inside the beltway occasionally . Once in a while they get it right. Daniel, great to see you. Hes one of those geniuses that really watch over things and make sure we do the right things in d. C. Good to see you. I appreciate it. Thanks for the conversation. Hirs liz tell mike and the game we said hello. David tonight, president obamas supposed to focus on the economy and job creation, so what does the Business World need to hear . Coming up next, were going to ask steve forbes, hes chairman and editorinchief of forbes media. Liz plus, google could be paying apple a billion bucks . Find out whats going on with that in todays speed read. My mother made the best toffee in the world. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Ijanet long and i formed my toee company through legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. Oh this is lame, investors could lose tens of thousands of dollars on their 401 k to hidden fees. S that what youre looking for, like a hidden fee in your giant mom bag . Maybe i have them. Oh thats right i dont because i rolled my account over to etrade where. Woah. Okay. They dont have hidden fees. Hey fern. The junkrawe why would they. Is that my gerbil . You said he moved to a tiny farm. Thats it, im running away. No, no you cant come [ male announcer ] etrade. Less for us. More for you. David it is time for a quick speed read of some of the days other headlines. Five stories, one minute. Barclays is planning to cut approximately 3700 jobs by 2015. The majority of the cuts will be in the Investment Banking division. Burger king teaming up with starbucks own seattles best to sell 10 coffee beverages. More than 7,000 burger king restaurants will be selling the coffee. An intel executive is confirming the company is building an internet tv service. The project is to launch later this year. Live tv, on demand, apps and a settop box. Google will likely pay a hefty price tag to be the default internet Search Engine for apple products. A report from Morgan Stanley says google could pay up to one billion dollars in 2014. Wrestling will not longer be an olympic sport. The Olympic Committee voting to cut wrestling for the 20 games to make way for a new sport later this year. Wrestling has been a part of the olympics since 1896. That is todays speed read. Liz . [buzzer] liz we have breaking news on comcast. The stock is jumping afterhours. Jumping for a lot of reasons, liz. Comcast will purchase the remaining 49 of General Electrics ownership interest in nbc unverial. They will pay 11. 4 billion out of cash on hand. 4 billion they will finance through debt. They will borrow 2 billion as well on all of this. But the other news making all this jump, comcast will purchase back 2 billion of stock in 2013. They will also increase their dividend roughly 20 to 78 Cents Per Share on an annualized basis. Liz . Liz juicy. Well look at all of that more. Well watch the opening bell tomorrow on that. David yeah. Liz the president is set to deliver his fifth state of the Union Address tonight. A laundry list of topics are expected in the speech from jobs to the economy to Climate Control and also spending cuts. David but what is expected to be the most important topic covered by the president tonight and what tone will it set for his second term . Joining us forbes media chairman and editorinchief steve forbes. Good to be with you. David lets talk about what well probably hear first. The economy is fine. Were on the right track. Yes, we had a slight uptick in unemployment but basically were creating jobs and everything. Will he touch on the fact that the economy should be growing stronger than it is right now . Of course not. Otherwise he would no have been reelected if he acknowledged the economy was growing at subpar base baste on history. When you have a sharp downturn you have a sharp upturn. The question is can you sustain it. We never had the sharp upturn. The jobs he created are low pay jobs. They are not the caliber we had in recovers in the past. Yes he will put a gloss on it and make it sound like prosperity is just around the corner, coming and coming. Things are getting better. The deficit will be getting smaller. Wont talk much about entitlements and onerous burdens on health care and everything that is depressing us, david. Liz to be fair and balanced, david, the past couple times we had the president speak on a jobs day he has always said, yes we have job creation but it is not where we want it to be. Dont you think that the important thing that he now needs to do is look forward and say, heres x, y, z what we really need to do to make that happen . And if you could fill in the blanks, what should that be . Well, unfortunately he will stick with the old playbook. More investments which is government euphemism for more spending. Tax increases. He will do it taking out some of the preferences in the tax code, increasing taxes on the upper income people which will be a downer for the economy. What he should say he is firing bernanke, will have a stable dollar. Number, two, real simplification of tax code to lower tax rates as the simpsonbowles Commission Recommended and take a relook at the Health Care Regulations and what it is going to do to job creation. You are already starting to see percolations of that, and as the year wears on, especially in 2014, that will hit and hit hard. David on taxes a subject you had a thing or two to say about in the past couple years, the marco rubio will be delivering the remarks after the president , the republican side of things. He is a very smart guy but i would think if he was really inventive he might go back to a report issued by the president of the United States. This report, the president s plan for Economic Growth was issued in 2011, september. He talks about the principles for tax reform. This is the president talking. He says, lower tax rates. A little steve forbesish. The tax system should be simplified and work for all americans with lower individual and Corporate Tax rates and fewer brackets. This is the president talking. Why doesnt marco rubio put this up and say, mr. President , were with you, 100 . We agree what you said back in 2011 . He might do so. Actually the most we could hope from this president is doing something, david, in terms of reducing Corporate Tax rates. Everyone now knows, even democrats, it is the highest in the developed world. If you put something constructive there, that would be a real blockbuster but i dont see any scenes of it. Maybe he will sure rise us in a good way for once. Liz looking at title of this, living within our means. David oh. Liz this is what a lot of americans are trying to do these days. Why is this so difficult . And to that end, march 1st, when the sequester kicks in, in a way, if it is allowed to happen, it would be painful but couldnt it in a way be forced spending cuts, forced austerity . It is actually put aside for the moment what it will do to the military. I think military does need reforms. That is another subject for another time. Overall this will be a good thing for the economy. The first time we get genuine spending cuts. Not phony ones, lower Interest Rates in the future. Savings on afghanistan and that kind of junk. Will be real. The democrats are starting to scream about. For once the republicans hold the pen and they have to sit back and say, let it happen. David steve forbes. A guy with a terrific gig on fox business as well as coming on fox business. Every saturday morning 11 00 a. M. Got a great host. David got a great title. Forbes on fox. Force on fox, every saturday morning. I love these lovefests. Liz both of these guys. Thank you. David is there a housing bubble rising or not . Last week former reagan budget director David Stockman warned that there is. He did that right here on the show. Well play a clip and then get another view. 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Plus get this document shredder free but only if you act right now. Call the number on your screen now im adam shapiro with your fox business brief. The dow and s p hit new fiveyear highs today. The nasdaq the only index closing in the red. Shares of harristeeter supermarkets jumped following a wall street journal report that the Grocery Store chain is considering a seal and working with jpmorgan to pursue options. Harristeeter has a market value of roughly 1. 8 billion and operates 200 stores along the east coast from florida up to delaware. Our Charlie Gasparino has been reporting on significant changes coming to sac capital. The hedge fund run by steven cohen, is planning a soft reopening for new investors in its major fund. The goal is to counteract redemptions expected to begin later this week in reaction to an Insider Trading probe. Sac declined to comment. Thats the latest from the fox business network, giving you the power to prosper. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . If your ba doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Ally bank. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Liz big move continuing in the aftermarket session for comcast. Take a look at the shares, jumping on the big news. Comcast will buy the 49 of Nbc Universal it didnt already own. Theyre buying it from General Electric for about 16 billion. On top of that they will be buying Ge Properties used by Nbc Universal at 30 rock and Englewood Cliffs where cnbcs headquarters are. They are spending a ton of money. Here is the whipped cream. 2 billion Share Buyback spread across 2013. The stock is moving right now markedly higher in the aftermarket session. David are you watching apple . This is what happens in when you buy back your stock. Is the housing recovery for real . Last week former reagan budget director David Stockman is was here. He says were at the start for a housing bubble. Here is the reason he gave, look. That is speculative money. It is not Owner Occupied buyers moving in for the long haul. David thats why he says were in the midst of a bubble. Liz no, on the total opposite vied, yesterday i had an opportunity to speak with gary cohn, president and chief operating officer of Goldman Sachs. He said about housing this. I think housings back. The good news about housing we cant outsource it. We need to build it here in the United States and thats a great asset for our economy. Liz a great asset. What is really happening . Who is pieing propertis . Is this recovery sustainable . We have someone with the finger on the pulse. Markets. Dolly lenz, Douglas Elliman vice chairman who do you agree with. Without question, David Stockman. Endusers is not buying houses being be a toward. If it is not end users or investors sometime back soon it will come back in the pipeline. When it is endusers you will know it is a real recovery. David youre saying like stockman, youre saying the rise in prices in housing is all pumped up by investors that are looking for a quick turnaround . That plus absorption. So it is both, right . Pricing and absorption is investors. Liz are you saying that those Beautiful Properties that youre selling in manhattan are simply to people, because youre dealing oneonone with these people. The people are going to flip it . Theyre not moving in and living there. Some people will flip it. Some people are just investors that will rent it out for a while. Some people are parking money. All kinds of reasons. But across the country it is hedge funds, it is private equity firms. People making an investment in property, which is good. It is better than no investment in property but not as good as an end user. David but it has been enough to stimulate the home bidding market. We just saw today, i dont know if we can put up charts of the homebuilders, 11, 10 rises in stock prices of home bidders. This is going on for months. Theyre hearing all the good news. It is all this flurry of good news. You hear gary cohn, you hear this one and that one. David are they building homes based on their own capital based on a real market or real demand for their homes . The fact that is the stock is up doesnt mean theyre building so many homes, right . It means the stock is up. Well see how many homes they actually build and what they use their money for and whose mon money it is. Liz ara hovnanian was here on the 3 00 p. M. Show, he said were selling houses before we put a stake in the ground. Yes. I saw that. Liz youre putting apartments homes on the markets, in two weeks theyre in contract. There are parts of the market, the very highend part of the market. These are generally endusers. That part of the market is very good. So im talking about the rest of the market. The average market. The guy who actually needs a mortgage in order to close on the property. Thats not what were talking about here. David dolly lenz is talking about average market. That starts at 20 million for a home. To make that clear you deal in highend. You said this is not just the high end. This is all across . Exactly. David dolly lenz, thank you i think. Less than hopeful news from the Housing Market from dolly who is in the Housing Market. Liz have you seen the latest Sports Illustrated swimsuit evidence digs. I bought it in the cleveland airport. We can speak slowly. Could be good news for the markets, specifically the cover model choice. Dennis kneale on that after the break. Wow. These are really good. You act surprised. Aah aah practice makes perfect. Announcer you dont have to be perfect to be a pfect parent. There are thousands of teens in foster care who dont need perfection, they need you. Liz Sports Illustrated swimsuit issue is out today. Cover girl kate upton could actually be a good sign for stocks, david. David that or it is a good excuse so show you some lovely pictures and videos. Dennis kneale is here with more. Go ahead. She is fabulously curvy and far more ample than the stick figure fashion models of old. Kate upton is the first model in 20 years maybe to snag the coveted cover of the Sports Illustrated swimsuit issue for the second year in a row but does curvy kate have what it takes to lift the markets. The si swimsuit issue is hitting newsstands is refleet with dozens of carefully coifed shots of girls young enough to be your daughter. Kate has yet to turn 21 years old. This could be millions in ad sales, calendars and sparks tens of millions of web visits. A one bright spot in time warners ailing magazine business which is axing 500 jobs as time warners stock is up 20 in a year. Get back to kate. Last year after she appeared on the si cover the stock rose 16 . Might a trend be at work . They looked at 35 years of swimsuit issues, stocks perform up to 50 better when an american gal graces the swimsuit cover than when it features a foreigner. Sap 500 rising 15 in the year following an american supermodels cover pose. That is almost half again better than less than 11 rise in stocks when a nonamerican is out front. And bespoke says when american is out front, stocks spike 88 of the time in positive territory. Compared with only 76 for foreigners. Sounds a little silly. What could a swimsuit model have to do with stocks except for animal spirits and testosterone. Then again it may be a better predictor than the average wall street stockpicker, liz. Liz all right. I did like paulina back in the day. Thank you, dennis. 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