Bad news and it is apple stock. Unfortunately apple hit a 52week low today, intraday trading. Do investor have any hope for the stock doing what it used to do . Of course. There are so many people that have a lot of big bets on apple. You have the phone watch, right . That is something were looking at. The apple itv. You see 4 30, a 700 stock. Credit suisse gave a shipment number for iphones not too promising. David on the other hand, there is always on one hand and the on the other hand, groupon was the hit very hard but the announcement of their ceo leaving we have a full screen. This is what the ceo said on his departure. I decided like to spend more time with my family. Just kidding. I was fired. He goes on. I love that. This was a 20 stock, dave. Now look at it. It has been abysmal. He got the boot right out the door. David we didnt make it to the alltime high. We looked to various indices, we didnt have a update. [closing bell rings] good day when you have green arrows across the board. Thats what were seeing today. Dow industrials up 37 points. S p up 3. 7. Nasdaq up. 3 as well and russell 2000. Liz, all of the stocks indexes were in the green. We were hoping against hope that we would possibly be breaking some type of record. But we didnt. Again investor momentum continues, liz. Liz it does. I got to tell you, i dont know i have to ask ben willis and some of our traders if we broke a record. Every single friday since the start of the year we moved to the upside. They were wonder will it happen again . Watch out for monday. Every single monday has been down. You see green on the screen. One thing that wasnt green, oil. Oil is moving lower. There was activity on the floor, people watching closely to see if we would hit it. They said 40 minutes ago, today is not the day. David some stocks did extremely well and hit highs. Yahoo hit the highest level it has been intraday since 2008. So, yahoo , doing very well. That is, it is a huge push for that. Lets talk about Warren Buffett though. Nobody in the world has been a better stockpicker than mr. Warren buffett. He will come out with his letter to the shareholders, always very folksy. Liz, are we expecting in the letter . Liz were looking for predictions. Predictions on the housing market. When he makes predictions from others. He doesnt say he thinks he will see. He says here is what i see that makes me believe it will continue. He made a mistake yearandahalf ago on housing. He admitted that. He thought housing was ready to come back. It was not ready to come back. Obviously remember he has housingrelated companies in a big way. Acme brick, shaw carpet. Benjamin moore paint, yes, buffett owns that. Clayton homes one the largest in the world that makes prefab bring indicated hopes. Im interested to know about discretionary things. I owns several Jewelry Stores including, what floor borsheims. It will be interesting to see if people. Housing relate stock. Insurance business, that is always the clue, david. David will he say anything about heinz . The sec is investigating up with of the deals with heinz of the will he have any indication about when that deal will come through. By the way well talk about the budget deal or the lack of one if washington, that meeting of course is automatic reduction in the growing budget. It will go into effect. Coming up well talk to Harvard Economics professor, marti feldstein. 3 he is a genius when it comes to economics. He was so smart in that regard he was president reagans chief Economic Advisor. Find out if he thinks the reductions willing as a damaging to the economy as the president claims or will it be a excuse for poor economic growth. He has a plan to cut literally trillions of dollars from our overall debt. Hopefully lawmakers are listening. First well tell you what drove the markets today, with todays data download. A sea of green as stocks erased earlier loss. The dow rebounding from triple digit drop with all three major indices ending the week higher. Health care and Consumer Discretionary were todays Top Performing sectors while energy and industrials lagged. Copper an aluminum falling to three month lows following reports that manufacturing growth did slow in china. Copper declined more than 1 to a intraday low of 3. 47 a pound. The euro falling to its lower level of the year while the dollar index soared to a sixmonth high. Euro fell below 1. 30 for the First Time Since december in intraday trading on weaker European Manufacturing data and Slower Growth in asia. To cover all this is mike in the pitts of cme and also our market panel. We have scott from Granite Investment Advisors chief investment advisor, lee munson, portfolio llc founder and chief investment officer. We have liz claman down at the nyse as well. Mike, let me start with you at the cme in chicago. Lets Start Talking about oil. I thought it would drop below 90 a barrel. It is at a low right now. What will happen with oil and why is it so low . Well, first of all there was a little bit of a misnomer because you had the big 200 day average in crude at 90. 38. We did violate that by a couple dimes. You thought you would get the follow through but that didnt happen. That was correlated to the way euro is trading against the dollar. Dollar strength not well for the crude and. Why is it happening . As you were talking about the Industrial Metals market out of china. Slowdown in manufacturing will relate to consumer demand as consumer demands diminishes anticipating lower demand in oil. David mike, excuse me for interrupting. We have breaking news on Warren Buffett shareholder letter. Shibani go ahead. Well filing through everything. We have earnings per share, 1704 per share. The street estimate was for 1755 and some change. Obviously the meat at thiser sttff everybody cares about the context of the deals and the quarter. A couple of highlights from the shareholder letter. Warren buffett describing Berkshire Hathaways performance in 2012 as subpar, saying the percentage increase in book value, which i think was somewhere around 14 , was less than the s p percentage gain. This in a shareholder letter. Also saying that he is disappointed by the lack of major deals, saying as a quote, i pursued a couple of elephants but came up emptyhanded. Just digging through the notes, shareholder letter talking about america and i know that, we often listen to him for his gauge on the macro environment. Talking about American Business saying that American Businesses will do fine over time. Just as some of the highlights. He does cover a broad array of subject matters in this shareholder letter and were still filing through it right now but again, Berkshire Hathaway coming in with the quarterly reports and were going through it right now. David nobody knows what is inside the head of Warren Buffett better, perhaps some of the people in immediate family do, but liz claman knows a lot about his way of thinking. And, liz, what do you sense from his letter thats notable . Liz i will tell you again, he immediately puts up front what he is disappointed about and what mistakes he feels he has made. Again, shibani has got it in front of her. Im just looking. We can put flashes on underneath me as they become available. The fact his book value did not pace with the s p 500, you know, over time, he has done better than anybody, any Living Investor and steve cohen comes pretty close at sac capital but Warren Buffett over time, were talking since 1965, has had better returns than anybody else. He follows the benjamin gram Value Investing theory. You look at this, in the past day, Berkshire Hathaway hit an alltime high. When you see the expensive stock price for ashares, dont flip out and say that has to be a typo. Its not. He has never split the stock ever. I can stand here say very confidentially he never will. He will not talk about a dividend. He doesnt believe he should be spending cash in that way. David let me stop you because there have been some rumors that perhaps they will begin to issue a dividend. Of course theres a lot of, a lot of people under their breath, even some the shareholders gee he is taking all the dividend from all the companies that offer dividends that are in the portfolio of berkshire and doesnt give them to us. Maybe he should share some of the wealth. You say he will not budge on that . Liz i doubt he will budge on that. I announced when connect cola announced a dividend. He said i dont care either way. I dont judge ceos how much they give back to shareholder. He wants to see returns, wants to see sales, wants to see revenue. That is what he wants to see. He believes in companies he says has a mode of competent activity. He bought names like wrigley gum. Heinz was a big purchase. Shibani said he was disappointed he pursued with his he will fapt gun and pursued a couple elephants but didnt pull the trigger. I have no knowledge really what is happening some were energy companies. He owns a part of first solar, one their, one of their efforts that theyre doing over at first solar. He was dipping into solar because it was really cheap recently. He of course has by. Did, build your dreams, that chinese electric car company. Something tells me would love to own exxonmobil or Something Like that. Thats a big elephant. David he goes for the big elephants, the big brands as well. Liz will stay with us and mike at the cme. We want to bring in the market panel, scott and lee. Lee, let me go to the you first about the news inside the beltway. The market is shrugging off all that bad news. Sometimes what happens in the beltway does affect the markets when there was a possibility of a Government Shutdown, it affected the markets, the debt ceiling but this time no. Seems like the market has had it with d. C. Well i mean, fool me once, shame on you, but fool me twice. The American Public right now is very well aware, a lot of people got swindled out of staying invested through december and january by falling into this lie about the fiscal cliff that the world is going to blow up. Now we have this new deadline, i think people are starting to think wait a minute, the real enemy are entitlement programs going out years from now, not something right in front of us. Most investors if you poll them yes, or main street usa they dont really see there is this impending doom for the sequestration that we need to start selling stock. In fact, what i hear a hot of investors ask me is, do you think we can get a little dip so i can get some cash to work . David right. Scott, do you think, even though the president recently has kind of pulled back on some of the scare talk that he was using earlier, he is little milder in that but does the market fee as most people do, that the president was overstating his case of the effect of these cuts on the overall economy . You know, i think to lees point i think what investors have realized for lack of a better term political theater. Yes the president wasnt that dramatic. I thought i heard it will cost 800,000 jobs. There is little bit of drama going on. 85 billion which is what the cuts are, relative to federal Government Spending is not that much. I believe they get 85 billion out of federal spending without reducing much of anything. Get rid of some of the fat. David politics are based on threats and promises and markets are based on the bottom line and mike, the fact is that the bottom line of a lot of these companies is doing pretty well right now. Which is why i will not be surprised to see the s p trade up towards and through 1562. And then maybe even threw those levels. I think astute investors long this market for quite a while are looking for that last push to take some profits and wait on the sidelines for a little bit longer. But again this market will not be stopped in the near term. Sure as heck not out of what is coming out of washington. They need more concrete scenarios like europe, crude oil and even precious metals. David liz, were you hearing anything on the nyse what was going on in washington . The political channels were all full of the information. But i didnt hear traders or investors talking much about d. C. . Liz well, ill tell you something, a couple of screens are on the news channels, fox and cnn they were watching earlier in the day, not now, david. Theyre not really that interested. I think they all decided around here on the floor and a lot of them started to clear out, i talked to john corpina ben willis. Theyre all saying in he is tense theyre not really looking at what happened with the sequester. It just wasnt an issue. David so, lee, if things are looking pretty good in terms of American Businesses why are you going overseas . Your picks involve emerging markets and vanguard international. Why not keep the money here . What is Warren Buffett thinking about me right now . Nothing of course. First of all give some context, dave. The largest, by two times the largest amount of money i have in any position, any in of my equities models is the s p 500. But if you want to know where investor today worried about the runup can put some capital i like emerging markets. I always have a small amount of it. They didnt have the runup over past month or two the s p does. I suspect they will outperform, today, dave until the end of the year. But you know what if youve been long the s p you have to stay long the s p. When we get to that the alltime that will happen, we have to remember is europe still there . Is japan still following through . And then maybe you adjust down a little bit or keep it rolling. David guys, weve got to run, but i have to ask scott about apple because that is one of his picks. Will apple pick up today . It is at a 52week low, scott . I fully understand that but at end of the day we have relatively simple thesis with apple. So long as they can make devices that make peoples lives easier and better than their competitors they will continue to win. Quite frankly even though we buy microsoft we bought a microsoft slate. No one in our office knows how to use it. And we have pretty savvy technology people. Apple continues to make peoples lives easier and i expect them to do so. David they have Great Customer service. Scott, lee, mike, thank you gentlemen. Good to see you. Liz will be coming back. Thank you. David a lot more on the budget automatic budget cuts going into midnight. Martin feldstein, the chief Economic Advisor for president reagan, he will join us. The ceo of a Small Business that relies on federal contracts about to being axed, he will tell us in the future how he will be forced to rely on private contracts instead of government once. In a couple weeks our government will be running out of money again. Is a Government Shutdown next . Well head to d. C. For the latest. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shoing ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Why do more emergency workers everywhere trust duracell . Duralock power preserve. Locks in power for up to 10 years in storage. Now. Guaranteed. Duracell with duralock. Trusted everywhere. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good fobusiness. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Liz welcome back. Were getting more headlines out of Berkshire Hathaway letter. Here it goes. Berkshire operations according to Warren Buffett shot the lights out last year. In other words did incredibly well. He says he and charlie monger, his vicechair say be in the market. It is a terrible mistake, quote, to try to dance in and out of the markets. He believes you should just be in because stocks will do well overtime. Finally nicole, no dividend, david. What did i tell you. We consistently followed a different approach at Berkshire Hathaway than other companies. No dividend. I want to add the companies where he is likely to increase the stake that is very key. Everybody wants to invest like buffett. That would include, american express, cocacola, ibm and wells fargo guy. Three of the four are actually dow components. He is obviously a big believer in American Companies. Looking for more acquisition. And like i to increase his stake in the four companies. Ibm is newer addition. He is on ibm and cocacola for years. He talks about the five Powerhouse Companies berkshire owns outright. Among them, Marmon Industries a huge conglomerate he bought a couple years ago on Christmas Day no less. Now heinz and burlingtonnorthern. Will, should, deliver higher earnings in 2013 but that he and charlie monger resumed their search for other companies because he says simply they need acquisitions unrelated to our current businesses. That is the part that really amazes me. They are out there. They work so incredibly hard. There are companies that are still profitable. They dont give up. They try to find better once with a better performsance. They were not 100 happy with 2012. Liz they put younger men to shame. Buffett 82. Charlie among ir79. David well come back to the laiders. Automatic spending cuts will kick in at 11 59. That is only half the battle. If the government does not come together in three weeks to reach a settle amendment on new spending levels. Rich edson with the latest on that. David, get this. It looks promise. Washington has less than a month until march 27th funding. Without a deal the government shuts down. It appears democrats and republicans agree what it will take to keep the government open. House Speaker John Boehner says the house will vote next week on a spending bill that fund the rest of the federal government for the rest of the fiscal year. They plan on setting levels including aumtic cuts with the sequester in a way that will blunt the impact that affects defense. President obama signaled that is bill he could support. I made a deal for a certain budget, certain numbers. Theres no reason why that deal needs to be reopened. It was a deal that Speaker Boehner made as well, and all the leadership made and if the, the bill that arrives on my desk is reflective of the commitments that we previously made, then, obviously would sign it because i want to make sure we keep on doing what we need to do for the american people. If the house passes the spending bill and the senate follows, washington will have cleared the way for a continued fight over these automatic spending cuts and the next debt ceiling deadline coming this summer. David, back to you. David here we go again. Rich edson, thank you very much. Good to see you. Coming up next well talk about the budget battles in washington and their effects on business and the rest of the country with a guy who really knows his stuff. If seen him before he knows his business. He advised president Ronald Reagan chief Economic Advisor, harvard professor, Martin Feldstein. Find out what he would do to, a plan to reduce 2 trillion. Knot phony budget cuts. Real budget cuts. Not cuts in the increase in spending. Marti is coming up. [ male announcer ] how could a luminous protein in jellyfish, mpact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. 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If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Liz welcome back to the floor of the new york stock exchange. Im making my way over to show you how the s p futures close. Sph at 1516 up about three points. What does that mean . We possibly could see records broken on monday. I remind everybody, david and i mentioned on this before. Every monday since the start of the year has been down. Ben willis one of our fav traders says watch out for monday. We did not break the trend friday. Every friday has been up. We were up today. Watch out for monday. The levels for actual s p traders are looking for support next, 1520. Not quite there yet. Back to you. David im thinking of the Billie Holiday song, stormy monday. Seems every month of this year. Thanks for your good work down at the nyse. President obama has warned coming budget cuts will do serious harl for the economy and our markets and disrupt our lives even though overall federal spending will be increasing this year. Even with those cuts. Could a slowdown of federal spending increases drag our underperforming economy down even further . Joining us now, Martin Feldstein, Harvard Economic professor and chief Economic Advisor under president reagan. Always a pleasure to see you, marti. Thanks for coming in. Good to be back with you. David let me first Start Playing sound with the president earlier about the economic affects of these automatic decreases in federal spending. Lets play the clip and get your reaction. Every time we get a piece of Economic News, over the next month, next two months, next six months, as long as the sequester is in place, we know that that Economic News could have been better if congress had not failed it act. David so, marti, what do you make of that . Any bad Economic News that we now get in the future will be because of the sequester . Well, not any bad Economic News. There are other things that can hit the economy. We know oil prices can do it. We know weakness in europe can do it. But certainly is true that the sequester, very badly designed way of shrinking Government Spending, will hurt not only the defense posture of the United States but will hurt the economy. David but at the same time, is it not true that in 2013, overall, netnet, we will be spending 15 billion more with these cuts than we were in 2012 . That number doesnt sound right. How much more . David 15 billion more in 2013, overall, because of some of these automatic increases in Social Security and everything . Yes. So thats about 1 , a little less than 1 of gdp increase. Of course revenue goes up. So the deficit will be coming down a bit but all of that misses the point. That the longer term deficits over the next five, ten years, and beyond, are just out of control. And that we have to find a way of dealing with that. David all right. But we just had a 160 billion tax increase that the president put into effect that republicans finally were kind of painted into a corn are and signed off on it but, 160 toll billion taken private sector in the form of tax increase, isnt that more harmful to the private sector than 40 to 80 billion taken out of the government sector . Well, you know the government sector is spending that money in the private sector. So i think that is a bit of a, of a false distinction. I would say that the key thing now is to slow the growth of Government Spending, to cut the, role of Government Spending, but that means weve got to go after the Government Spending that is done through the tax code because if you look at the defense budget, its on its way down to levels we havent seen as a share of gdp since before world war ii. And nondefense discretionary programs are also shrinking to about 3 . So the real domestic spending is being done through entitlements and through the tax benefits that are called tax expenditures. David tax expenditures, what we would call the special deals with the special interests. Those are the things that the president wanted to get rid of. The republicans wanted to got rid of before tax increases. Theyre not just special interests, theyre not just special interests. We all get to benefit from things like the mortgage deduction and state and local Tax Deduction and the exclusion of employer, but you know, Health Benefits but we just cant afford to do all of that. Were either going to have to raise tax rates which would be very bad. David which weve already done. Which weve done, and would have to raise them on, lower income individuals, or weve got to put some kind of limits on these tax expenditures, these deductions and exclusions. David while we may see some spending in some places in the government go down the overall debt continues to increase. If we can put up the debt clock because it seems to, it seems like just yesterday that we popped up past that 16 trillion mark but look at this. We are now at 16. 6 trillion. Were closer to 17 trillion than we are to 16 trillion. Seems just like yesterday we were at 16. Despite the president s call for a balanced approach, we had two plans from the president , one december, january, and more recently in the senate. Neither one of which has any real spending cuts. Since the president is not going to do it. Since the democrats controlling the senate are not going to do it, dont we need Something Like sequester to it . Sequester will do something but it is such a badlydesigned thing and the damage that it does to our defense activities, and to the way the world sees our defense budget, to me is very, very dangerous and very damaging. So i would like to see us drill down on these tax expenditures, on these special features of the tax code, that are really Government Spending, and see cant, we get rid some of them . Cant we put limits on some of the others. David well, if you could trade them for tax rate decreases is the president once said he was for doing, maybe. Well see if that happens. Now he you could. David quickly. You could, if you put a limit on the tax expenditures, you would raise enough revenue that you would make a significant longterm dent in the deficit, and have money left over to do some rate reduction. David professor Martin Feldstein from harvard university. That little place up in boston. Thank you very much. Good to see you, marti. Have a good weekend. Good to be with you. David Cyber Attacks supported by government likes china are dangerous and very costly to our economy. Coming up the president for alliance for American Manufacturing says our government is actually entabling these attacks. How so . He will tell us coming up. David . Later on even though overall federal spending will increase as, the coming cuts will directly affect Small Businesses dealing with the government. Well talk with the owner of one of those businesses coming right up. You know how painful heartburn can be. F fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. David the war of words between the u. S. And china. China is now accusing us, the United States of attacking two Chinese Military web sites after report from the a u. S. Security firm alleged china was behind hacking attacks on u. S. Firms. Well, now, we have someone who says the u. S. Is financially supporting chinas activity. He has a way to end the cyber war. Joining me, scott paul, from the alliance for American Manufacturing. He is the president. That organization. Scott, good to see you. Good to be with you, david. David lets get right to it. In what way, what possible way could the u. S. Be supporting the chinese attacks on u. S. Business . Well the Chinese Military and government gets money some way, and one of the primary ways they get it through our trade deficit. We have a 315 billion annual trade deficit with china. And, that costs the United States some jobs. Our manufacturing base, and it enriches the regime in beijing. So like it or not, our economic policies have brought trillions of dollars into chinese coffers and make this possible. David i gotcha. On the other hand for American Consumers its a great deal. There are tons of things. Just about half of the things we buy and use are manufactured in china at a very cheap price and that makes it good for consumers. We dont want to start a trade war. We dont want to cut off their exports to the United States, do we . Well, i dont think this is a binary proposition. Either we trade with china or we dont trade with china. I think we have to be serious about the terms under which we trade with china and unfortunately were not. I mean china has been in part of a broader, kind of free trade arrangement. It is not a freetrade agreement. But for about the last dozen years and we just simply havent held china accountable when it comes to intellectual property. David we dont have much time but specifically what would you like to do . In what way would you hold them accountable in a way theyre not being held accountable now . Im pose trade sanctions. It doesnt mean cutting off trade but they depend on access it our market to keep people employed in china. They dont want to lose that either. Unless you show beijing you are serious, they will not take you seriously. David what kind of sanctions . This could coast consumers quite a bit here. Were facing higher prices at grocery store. We dont want the same thing to happen elsewhere. You bet. The fact were not dependent on china for a lot of stuff. We get a lot of imports from many less developed countrys. There is very little we could do without if we needed to. It might create a crunch for a big box retailers like walmart and what have you, but the actual impact on our economy would be very minimal. David but where . Sounds like youre talking about, sounds like, scott, youre talking about an overall sanction against goods coming from china. You have got to be specific. Well there are is number of ways to structure it. You could certainly penalize china for specific products where we know it is cheating and does that on number of ways. For its currency. For its intellectual property. Hit them where it counts on some of these technology products. They wont Pay Attention if they start losing access to our market. There will not be a trade war. China needs to keep the lines open as well. We need to tell them that theyre serious about the sanctions and about stopping the cybercrimes. David these cybercrimes are costing American Companies about 300 billion a year in lost intellectual capital. So it is hugely expensive for American Companies. If we can get them specifically on that, im with you. If it is a broad sprok trade war, that broad spoke trade war that scares me as well. Scott, good to see you. Thank you. David thank you very much. All next week fox business will sit down with some of the biggest names in cybersecurity taking a look how cybercrime impacts your money, your investments, your business the whole ball of wax here. Its a series you wont see anywhere else with Connell Mcshane and dennis neil. That is it next week. Defense budget cuts are not just trouble for the big guys, for the big contractors. Some Small Businesses could get hit and as you know the smaller guys are usually hit harder. Coming up the ceo and president of a small Security Company that could be directly in that line of fire. Hes next. Im Shibani Joshi with your fox business brief. Stocks moved in a wide range near record highs but not hitting the october 2007 alltime high but ending the week on a high note. At the closing bell, the dow finishing up 35 points to 14,89. 66. Michigan Governor Rick Snyder declared a financial emergency in detroit. The next step will be to choose an independent overseer to tackle detroits 327 million budget deficit and 14 billion in longterm debt. Spacexs Unmanned Falcon rocket launched this morning carrying a ton of supplies to the International Space station. Nasa paid spacex to deliver the cargo. Dow jones and spacex see sunday as a possible linkup between the rocket and the space station. That is the latest from the fox business network, giving you the power to prosper. Aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401 k to hidden fees. Thankfully etrade has low cost investments and no hidden fees. But, you know, if youre still bent on blowing this fat stack of cash, theres a couple of ways you could do it. Or just go to etrade and save it. Boom. David super bowl sunday is kind of Buffalo Wild Wings christmas and new years all rolled into one. Here on fox business we pointed that out over the past five years. Investors who bought shares of Buffalo Wild Wings on the close on the last trading in day in january, just before the super bowl and held the stock until the last trading day of february, well, youre looking at an average gain of nearly 15 for the obvious reasons, super bowl. This year the stock jumped 7 in february, exceeding the 1. 1 return in the s p. So, if you were watching fox business, and had listened to us and picked up pen and piece of paper, writing things down, you had a chance to make money once again. Meanwhile the president and congress have failed as yall know to reach a deal on spending cuts. So now the automatic cuts will be kicking in. While overall federal spending actually will still increase, there are certain cuts that will directly affect Small Businesses that have government contracts of the one of them is a Security Company that works with federal agencies called trinity protection services. Its ceo and president , greg hollis joins us now. Greg, what have you been told, if anything by some of these federal agencies you do business with . Well, david, fortunately, for us, our largest client is the department of defense, dod. We learned within the last 24 hours that we wont be directly affected. Those employees will not be directly affected, meaning they can come to work but what we also dont know is, some of the government employees, who do things like process our invoices, that allow us to get paid and pay those officers, we dont know what the status of those guys are going to be. David i see. So were safe on one end and on the other there is still a lot of uncertainty. David your security personnel, these are like security guards that work at agencies. Absolutely. David they will keep their jobs but they may not get paid because the person writing checks may not be there . Yeah. The whole deal with the defense, dod contract that we carry, its critkral infrastructure or restricted access buildings. We cant just not show up. These are restricted access buildings. What we learned as part of this whole sequestration idea that some of the government workers will either get laid off or furloughed or maybe not come to work. So some of the work load, some of the processing of workload and most particularly invoices, that sort of thing, we dont know where they stand. I dont know. David that uncertainty kills you. Worse for business than uncertainty. If you dont know, if must be difficult to make plans but are you changing any of your Business Plans as a result of not knowing if the checks are going to be rolling in. Well our Business Plan is sort of on a daytoday. We understand that right now, congress, can, make a decision that they can agree with things with the white house and maybe not have these restrictions, or these roll backs take place. I understand maybe Homeland Security and coast guard, there are immediate effects. With dod there may be some resume that, some time that we have, they can make a quick decision that wont affect us. Once these guys, start furlough and they cant, wont go to the cleaners, wont go to the grocery store. And this whole thing will start to trickle down, who knows what will happen. David i want you to be absolutely honest with me. Just out and me talking. Yeah. David which would you really prefer. If you have choice between government contract and private contract, would you take the private contract over the government contract . Well, in the words of marco rubio,. Had to do that. Sorry. There are pros and cons, with both. There are pros and cons with both. In a normal environment. The government, even though the margins are a lot lower, it is a more secure contract. There are rules. They dont just kick you off of a contract because their friend wants to come in. There are rules that are set up. On the other hand, on comercial in the comercial environment, its, the margins are a lot higher, but, youre subject to go on a 30day notice, just at the whim that someone new started and he wants his company or his contractor to come work for you. Six in one, half dozen of the other. What i see right now, the comercial environment has sort of withdrawn in our industry. Say for the shopping centers. They seem to come online with more security. Everyone is in wait and see attitude. Puts us in the same environment. David a great economist once said there are no solutions. There are only tradeoffs. This seems to be perffct example of that. Absolutely. David greg hollis, even pros like you have to take a drink of water during live interview. Good to see you my friend. Thank you very much. Good to see you and that thank you to the did you havers. David best of luck to you. Walmart says its cheap food prices save families billions of dollars. Coming up next, liz mack, liz mcdonald tells us if it is good news for investors. The answer could surprise you. 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 bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. David walmart says it saved shoppers billions of dollars with cheaper produce as the first lady visited one of its stores to applaud its antiobesity efforts but is cheaper, healthier food really helping walmarts bottom line . Here is with that story is my buddy, liz mcdonald. Is that helping walmart . We love to get into the guts of a company and to their strategy. Walmart is the nation hes biggest grocer. One out of ten retail sales are spent at walmart. 2. 3 billion over the last two years is what walmart said shoppers saved in cheaper produce. Look at their samestore sales. 1 growth year to year. But heres the name of the game and this is why walmart has been doing groceries for over a decade now and ramping it up. It is essentially saying visit, number of people come to the store and repeat visits, more than quad group peltz. Quadruples. Get more people in and crosssell pharmaceuticals. The other thing is, you want to watch this, while more people come into the store to basically get groceries and buy, spend more money on other things, what happens the profit margin is getting squeezed tight because Grocery Stores have really slim profit margins. 4. 4 is their profit march inif, barely beating target. So weve got to watch out for walmarts strategy to see if it pans out for investors or if they will face a lot of pressure because it takes a lot of money to store food that goes rotten, right . Even get great food that people want to buy that is actually healthy. Which surprises me is skim milk has 14 grams of carbohydrates. Who knew . Who knew that . David there are no solutions, only tradeoffs. Liz mcdonald thank you very much. Sure. David the number one thing to watch next week will be the jobs report next friday. Economists expect the Unemployment Rate expected to remain steady at 7. 9 . Liz mcdonald, well be watching that. Very closely. David what do you think . I think that it is not going to get any better. That is just the bottom line. David even though, even though things are improving in certain areas and the stock market. Certain areas. David and the stock market continues to expand at almost exponential rates. 2 gdp growth. Thats what were dealing with right now. David what are investors saying . Do they really think jobs, unemployment factor is going to affect the stock market . No, not at all. Not at all. I think the earnings picture is perfect if you want to get in in terms of where it was couple years ago. Earnings are rocketing ahead. David liz mcdonald one of the stars on for example on fox on Fox News Channel at 11 00 a. M. Money with Melissa Francis is next. Here she is. Have given way to sleeping. Tossing and turning where sleepless nights yield to restful sleep. And lunesta® eszopiclone can help you get there. Like it has for so many people before. 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