Transcripts For FBC Markets Now 20130820

All that and more coming up on this hour of markets now. Dagen we stretch for reasons to talk about tom brady, is that it, or just run a video of a chick in her underwear . Connell thats more the case. Dagen 40 million plus is a lot of coin. Connell great country. Dagen h and m, ousted others to get the deal, and tom brady is not the breadwinner. Connell capitalism at work. Dagen stacks losing five days in a row. We are watching the stock markets closely. So is lauren. I am, dagen. It was a day where the dow industrials slipped to 14992, now comfortably above the level, but its a shaky session. Ibm trading lowest in 13 months, something we are watching, and you cant ignore jcpenney today. Traded up, down, and heres the news. Profit, revenue in the previous quarter miss the expectations, samestore sales down in the double best of my knowledges, but but jcpenney said its looking promising and theres 1. 5 billion in liquidity. Depends what to focus on, but jcpenney has a green arrow. Back to you. Connell the twitter cofounder, ceo, head of square these days, has a relationship with Larry Summers, leading contender for the next fed chairman. Summers is on the board at square and when asked about the possibility of the appointment for summers, this is what dorsey had to say. I think Larry Summers is a great board member and i trust his guidance for our company, but, yeah, thats between larry and the federal government. Connell all right. I dont know if thats an endorsement, but joining us, director of research, and this has been the debate all summer, Larry Summers or janet yellen and who is better for markets, what do you think . Well, it would have been c, ben bernanke. It should have been like coach k coming back for the third term. Thats the right decision. Theres a chance, a small chance, but between janet and summers, summers is the safer choice, the known quantity, and, right now, its a turbulent time in the bond market, and they want safety. Connell well talk about that in a moment. Youre right with the money coming out of bond funds, a big story here in the last day or two, and the move upward that weve seen in Interest Rates. Why do you like ben bernanke so much . Theres other guests saying just the opposite that, you know, its part of the problem, rates too long, too long, all those arguments. Why are you a ben bernanke . Summers would continue policies; right . Well, right now is an extremely tensive time in the market. They could be 250 or 4 . One move one way or the other is difficult. Ben bernanke showed himself in the Great Depression doing a wonderful job. Could have had a calamity, and he was a big part of how we got through that. Connell the 30year now, but the 10year 283, could be 250 or 4 . Which is likely . Heading higher. You have been nice enough to have me on the show, and i tell them to sell all their bonds. I think a lot of that has happened, but bonds are over priced. Were more likely to go over three than much lower. I think the u. S. Economys getting stronger and tapering is going to start, and were going to end up where we should have been, in the midthrees. Connell whras the effect on the economy and target which we have not talked about yet with the 10year over 3 if thats what we see . Yeah, unfortunately, i feel confident about which way Interest Rates go, but its an uncertainty how it affects the market. Nobody really knows. Were in uncharted territories here, and the stock answer is true. If rates go up while earnings are going up and while the economys better, the stock markets going to be fine. If connell is that your prediction or you yeah, we are bullish on the u. S. Economy. Connell okay. We think energy, auto, and housing are going to produce good, high paying jobs to bring unemployment down. We think europe has bottomed, is going to get better, so we are relatively bullish on the u. S. Economy, and so we think the stock market can work while bonds continue to go down, but my level of confidence is not that high on that statement. Connell all right. Thanks for starting us off today, charlie, appreciate it. Dagen thanks, charlie. More on the bond discussion. Look at the numbers, time to make money or avoid losses with charles payne. Investors yankedded nearly 20 billion from bond mutual funds and Exchange Traded funds so far in august, the fourth largest monthly withdrawal on record according to trim tabs. You had heavy losses. 16 loss in the tlt, that Exchange Traded fund, since early may, and, of course, all of that selling is pushing longer term rates to twoyear highs. Connell carls charles with answers or suggestions on whats next and how to handle it all. Whats interesting with charlie, i kind of agree with him with respect to the bonds, yields over 3 , but i dont buy the u. S. Economic argument. What we might be seeing here is a more reversion to the main. Remember, when the world melted, everyone went into u. S. Treasuries. It was defactor safe haven for the entire planet. We are seeing that unwinding trade more than the u. S. Economy. Again, i dont disagree with the energy, auto, housing aspect of the u. S. Economy, but the broad economy, i dont know its so great that the bond market should be taking off. You had an unprecedented run in treasuries and bonds with Interest Rates falling, really, since the early 8 s, and once the selling starts and the losses start piling up, good luck stopping that vicious cycle. Im saying youre talking reversion to the saying Interest Rates could be higher, not based on economic fundamentals or inflation, but just because people dont stop selling. Thats right about risk and right about momentum because what investors have done over the last 30year period is chase performance, you know, whether it was the stock market, housing, baseball cards, whatever it was, theres a tendency to chase performance. Dagen yield now. The market benefits from that and the notion that, hey, its safe to hang out, but, yeah, once that snowball starts to become a boulder, be careful. Although, we have not we dont know what they will do with the money yet, you know. Its mostly moving to the sidelines. Some in the target, but theres a one to three ratio, savings instruments against equities. Dagen when i say chasing yield because treasuries yielded so little, they went to extremes to get yield from emerging market debt and the like. Connell well come back, important stuff, thank you, sir. I have a jag, i want to know what model caught on fire. Connell keep it here. Dagen jaguar is keeping a close eye on the investigation that caused dick van dykes car to be engulfed in flames. He is okay. Connell while hes here, you want to hear about giselle shaking her moneymaker to the tune of 42 million a year. Thats good; right . Dagen is that really the best video . What about strutting on the cat walk . Connell a money network, money story, way ahead in leading dels in income. Dagen hold judgment on arod. Ken rosenthal, our favorite sport reporter with fox sports, says theres more to know about the upcoming legal battle, and ken is here to tell you all about it. The oil market, barclays coming up on egypt, the impact, and if prices will go lower. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. All on thinkorswim. A quarter million tweeters is beare tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. Connell breaking news on the situation in e gipped as we try to figure out whats going on there. A pentagon spokesman told fox news that aid, u. S. Military aid to egypt, is not cut, not being cut secretly. This was after senator leahys office said the white house was temporarily cutting off aid to the country. Dagen with saudi arabia promising to cut any aid thats cut potentially, would any move by us make a bit of difference . A senior fellow at the council on foreign relations, but, isabel, a reputation of the report that were quietly cutting aid, should we cut at all, at this point . Cut all the aid . Dagen yes, to egypt. The only leverage we have is military aid. I dont know that it makes a difference at this point cutting off aid is too little too late at this stage. The egyptians have clearly made their bed. They are in bed with the saudis who are calling the shots right now, and as you see from the release of mubarak yesterday, this is something the saudis wanted all along. The harsh crackdown, something saudi arabia, i think, is all for, gung ho, and at this point, i dont know that cutting aid makes a difference in cairo. Might make us feel better as we watch in dismay whats going on in egypt, so in that sense its a strong rebuke of the government, but in terms of cutting, halting the economic aid, but keeping the military aid, i dont understand that. Connell well, it does seem difficult or confusing because its almost a definition of whats going on in egypt. We have not heard the Obama Administration come out and describe this, at least publicly as a coo. He did, the president , or members of the administration, then, i guess, by definition, if theres a coo in the country, you cut off the aid. You could do that behind the scenes and not call it that. It seems like theres something going on we dont know the details yet of. Well, i think, you know, i think the administrations trying to, you know, split hairs here and try to have the cake and eat it too, and its not working, clearly, the Egyptian Government is not listening to the United States, its very clearly listens to its more influential gulf allies right now, and our leverage is very limited, but, you know, do we also stand by and watch the military government take egypt down, what i think is a dangerous path at this point. Theres an idea that they can crush the Muslim Brotherhood and restore stability. Thats not a recipe for long term staibt. Dagen whats the end game for us . Well, the end game, i think we share an end game with the egyptian people that we want to have a stable egypt. How do you get there . From our perspective, from the United States perspectivings you cant go back to the days of authoritarian stability. I think tahir square in 2011 shows the days are gone. Whats next . Theres a scenario where the saudis regret what they bought. Egypt, as a country, has 90 million people, poor, and, yes, they stepph five billion in the immediate aid, kuwait gave four, uae three, and thats more than we have given. Connell thank you very much. Appreciate it, thank you. Dagen its not quite egypt, but bad things are happening at barntion and barnes noble. Great transition. Shares are tanking. Dropping the bid, and lauren is watching it all. Hi, da. Owning 30 of barnes noble shares dropping his bid for the retailer to buy the stores, that is. As you see, the stock is down 16 . The nook business, those sales in the quarter down 20 , still, barnes noble is looking to release at least one new nook in time for the holiday season. Barnes noble reported a quarterly loss of 87 million, and revenue fell 8. 5 , but there were positive which is sales of the hunger games, and 50 shades of gray. Back to you. Connell the company is responding to the fire that engulfed the car that belonged to mr. Van dyke on the l. A. Freeway. Heres the statement, we are aware that there was a fire incident in a jaguar xj in which he was driving, no injuries reported. We have new information at this time as to the details of the incident, but will certainly look into the matter further. Now, we have video, curtesy of tmz witness to the fire, went to the car, helped van dyke, 87 years old, by the way, helped him out of the car and it was engulfed in smoke. It just started making a noise, and i thought i had a flat at first, and then it started smoking, and then it burned to a wries p, but there was a fireman, a nurse, and cop who was just passing by. Wow. Somebodys looking after me. God is looking straight down on you. Connell thats right, man, nurse coming by there, look at that, no medical treatment, by the way, hes already. I guess thats good news; right . Dagen nothing attracts attention like a car bursting into flames, not just on the freeway, but National Attention whether the car is safe or not. Connell not what jaguar is looking for. Dagen no. Especially with a celebrity driving it. Barely dressed, but the breadwinner in the family, gieslle wears the pants. Bradys better half is the highest paid model for the 7th Straight Year raking in 42 million last year winning high profile jobs, spokes model jobs with h and m, chanel and the like, and thats how she made more than the second highest paid model, karr, with 7 million last year. Brady brought in an estimated 38 million last year in salary bonus and endorsement deals according to forbes, she makes more money. Connell thats a good twoincome household. Dagen i talked to her behind the scenes when she was with victorias secret. She looks good in person. Other models look like horses horse face connell didnt need to go that direction. Dagen she looks great, beautiful hair, great skin, and a great figure. Connell could have stopped at she looks good. Before you pass judgment on the big money case surrounding arod, more you need to know, and youll find out from Ken Rosenthal coming up from fox sports. Dagen i could have made an obscene gesture with my hands, at least i didnt do that. K07b connell just keep reading. Dagen debate of tax reform if you need cold water to put the fire out, maybe thats it. Rich has it. Connell what does giselel think of tax reform . Join us at projectluna. Com its now 23 minutes past the hour. This is your fox news minute. A military judge in maryland has started deliberating on the sentence for Bradley Manning for disclosing classified information through the welcomes, wikileaks. He faces a prison term as long as 90 years, prosecutors asked for 60 years and defense lawyers say it shouldnt be more than 25. The colonel will announce the sentence tomorrow morning. The best selling author has died at the age of 87. Now, according to the website, the author of more than 45 books, suffered a stroke last month. His best sellers included get short question, out of sight, and many became successful movies so they may sound familiar to you. Meet the latest addition to the white house. The family now has a second dog, sonny. See him right there. The obamas have adopted another water dog, and now bo has a friend to play with at the white house. Thats your fox business minute, back to you. Connell that is cute. They are so lucky they didnt get a puppy. Sonnys a year old. Connell exactly right. Another turn in the scandal, whatever you call it, saga could be a better word. The attorneys for the suspended third baseman, suspendedtobe, still appealing, they are expected to file a lawsuit against the team doctor for the practice misdiagnosing the injury. We have Ken Rosenthal with us from fox sports, senior Major League Baseball writer. Good to see you. I dont know, malpractice is the argument, some said its a distraction, but arods now attorney basically saying the president of the yankees told the doctor he never wanted him on the field. Crazy stuff. It is wild stuff for sure. I will say this. This is not new. Also, this is separate from Everything Else with the suspension. The different dispute. When the hip surgery announced in december, i heard at that time from a source that he had been to the emergency room in the playoffs, that he was on painkillers in the playoffs, and crank yes then and now say the left hip was not an issue in the playoffs, and thats the heart of the dispute. He says, hey, theres an mri showing a hole in the left hip, and yankees say, well, your problem was the right hip, didnt talk about the left hip, its a he of he saidhe said, and where it goes, hard to say. Connell to the extent if it is true he could have been doing steroids the entire career, but if they really did that, basically, youre talking black sox scandal, putting a play out out there to make him fail. Thats hard to believe, and the idea yankees would purposely lose to make the player look bad, possible they were negligent . Thats possible, but, again, these are pretty highly thought of doctors here. Chris is well. That was a, quote, passing comment. Didnt mean they messed up the surgery or took that. I have a hard time believing, a, he suggests that seriously, and, b, the doctor looks at it that way. Connell what do you think is next here . Anything in the reporting . Our head spins every day with the story, new allegations and stories coming out every day. Of course, it has to go to settlement or appeal. Thats the suspension. If a settlement, thats for less than 211 games, and if theres an appeal, its not heard until november, december, maybe beyond that. We wont have a result. Connell rest of the season no matter what . Unless they settle before the end. I have a hard time believing that happens. Con cop the other players are not happy he plays through this. Not happy, but its part of the union that agreed to the rules. Connell contactually right, another discussion for another day. Thanks for coming in today, ken. Appreciate it. Thanks. Dagen that was great. Making tax reform a reality. Rich edson talks with two lawmakers in the middle of the battle, and rising number of tax on smart phones and why its happening now. [ male announcer ] these days, a Small Business can save by sharing. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Dagen . Of. I work. The event struggle for tax reform. It has to do, of course, with oil. Cant we come up with a reason to roll the video once again. Connell talk about pork prices. The rising price of pork. I would rather talk about gisele, but bob evans it is. Rising pork and bacon prices is the reason. As you can see, some stuff up because of all of this. Connell thank you. Dagen crossing party lines and hitting the road. Connell rich aten has an exclusive interview. Rich talking about that intense reform. Right now, polls are saying that they can still get this done. I asked them how they navigate that. We are both working towards the same goals. Much more simple. We want to make American Companies much more competitive. We want to close loopholes. We are all in agreement. There is an opportunity for others to say, good work. You are on the right track. It is a free competitive world. We want to lower the unemployment rate. The lower we can under the and help businesses, while they are paid their appropriate share of taxes, the better. I talked to democratic leadership of this revenue. I cannot give a number. I do not think it will be that high, but i cannot give a number. Rich what kind of catalyst will get this done . They want a clean debt ceiling increase with no policies attached to it. Back to you. Dagen rich, great to see you. Thank you so much for that. Rich down in california. Lets talk to brett fair now. You have been getting along. Sitting there smiling talking about tax reform. Will it amount to anything, do you think . I actually think that there is a chance. I think there is a possibility with tax reform. Dagen again, the difference of merging quite quickly. Maybe attaching this to a debt ceiling increase. Do you have a sense to how it would move ahead . The they are pushing it ahead to early september. I think it is possible that it gets attached to the debt ceiling. It is a big deal over all. It could stand on its own. Dagen revenue would have to be raised, would it not . They will have to figure out some kind of deal on that. Dagen you get into the fight of raising revenue. I wanted to bring up Larry Summers. What are the chances now that he ends up being the Federal Reserve cheese . I think it is pretty good. They have real anxiety about that. I think janet yellen is well respected in the administration. I will give the lien to summers just because of what we are hearing in washington. Dagen is it just a political reward for summers . You bring in somebody who is, i guess, is trouble getting along with folks at points in his career. Dont you think that both of them would essentially have similar polys on dragon similar policies. It is a big deal. Dagen i am anxious to see him do one of those press conferences. It was great to see. Thank you so much. Every night you can see brett hosting special report on the fox news channel. Connell oil is the reason Saudia Arabia is willing to jump in and help egypt. Dagen a rise in the Cyber Attacks that you see on smart phones. New information shows how you are at risk. We have a fox business exclusive. Connell Dennis Kneale will have updates at the top of the hour. One of the big stories has been Interest Rates. We will be right back on markets now. To treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; 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 d blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Folks have suffered from frequent heartburn. Butetting heartburn and then treating day after day is a thing of the past. Block the acid with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. Zero heartburn. Nicole i am nicole petallides. Checking the Dow Jones Industrials right now, it is up about 53 points at the moment. Shares of best buy are rallying. They reported a secondquarter adjusted profit of 0. 32 a share. Slightly down from last year, but still topped forecasts. On the housing market, that is helping home depot. They reported a secondquarter profit of dollar 0. 24 a share. Revenue climbed 9. 5 from last year. It topped the estimate for 21. 8 billion. Home depot is also raising its 2013 fiscal year guidance. The boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . Oh, you guys and with double miles you can actuay use, you never miss the fun. Beard growing contest and go win whats in your wallet . Dagen Saudia Arabia has promised to back any day withdrawn from egypt from the west. Joining me now, one of my favorite games ever, senior strategist at barclays. You need the Egyptian Military to close the suez canal. They will not further antagonize the west. We think it will remain open. There are a lot of libyan weapons floating around egypt. Dagen if you do that throughout the middle east, we were just looking at the map. Egypt we do not read about. What about these other nations . This is something that we want to ahead of our own government. You do have to look at oilproducing companies. Dagen talk about the destabilization some of these projects. We mentioned about Saudia Arabia pledging to match funds. Not the only nation spending money to egypt. We look at the arab spring. Before that, they did 75 to balance their budget. Now it is north of 100. Dagen is there anyone in oil will below 100 for any reason . We now have about 3 Million Barrels off the market. Could prices get lower . We have a lot of volatility in the middle east. Dagen it will be above 100 for at least the next year. Absolutely. If you have oil sustained below 100, coming to the market to raise prices by cutting production. Dagen can we offset that in the United States . Even if we are talking about 2020, we are not going to be independent from the rest of the world. Dagen better, but not there yet. It was terrific to see you. Come back any time. I love your show. Connell mark newton is next out that the new york Stock Exchange. Our market seems all right today. We talked to you earlier about Interest Rates. The u. S. Is the one bright spot today among a dark situation. Today has equally as much of a chance as yesterday. It gives investors a chance. That leaves the question, are investors overseas more concerned about the possibility of tapering in the u. S. . The answer is likely, no. It could push up the cost of oil and other imports. It is a slow month. Volume has been drying up. Even though we are down to new fiveweek lows, we are still fairly resilient compared to the rest of the world. Connell thank you. Mark newton. Dagen the rising tax on smart phones and why it is happening now. Connell some of the winners that we are seeing today over at the nasdaq. Connell the cyber threat of thing we been reporting on on this show for months now. Mcafee is out with its latest threat report. A large spike in mobile malware. The biggest target, android users. We have mcafee executive vice president. Lets focus for a moment on android. Why is that a bigger problem . The Android Marketplace is fairly open. You can have multiple stores to download from and a market sample. It is worth the time of the attacker to focus on that space. Connell does it depend on what kind of business you do . What advice would you give . Well, some of the core advice would be be careful where you are downloading from. Make sure you are downloading from a reputable store. Ted the permissions that you give the apps. The other is common sense. If you do not understand why you are getting that app free, you have to understand that you are the product. Are you okay with being that product . Connell what about the specific app that you download . Are there specific types of apps, categories, that are more dangerous than others . Recently, we have seen a spike in certain apps. We have trojans, and that manipulate your thinking cap. They get in the flow of that banking transaction. We have also seen a news resurgence of adult apps. Connell is it safe to think using an app on your phone . I believe that it is, provided you have the right security in place. It is as safe as if you are on your pc. Connell fair enough. The new numbers are in. Michael, thank you for coming on today. Thank you. Dagen can we say rest in peace, elmore leonard. We both got the chance to meet him. We think about your family today. When bad news is good news. Jcpenney reporting horrible earnings. Stocks up. Way up. Cheryl and dennis go behind the numbers and whether or not the company can even provide. Connell making big promises. The Fox News Media analyst will be joining cheryl and dennis on markets now. Keep it here. This cute blob is metamucil. And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Metamucil. Every day were working to and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Dennis i am Dennis Kneale and we are back together again. Cheryl it has been a long time since we have seen each other. I am Cheryl Casone take a look at the stock. Here you go, right now it is actually up by 0. 53. Dennis what is bugging me . Cvs and time warner. My thoughts ahead and then i want to hear from you. Tweet me. Cheryl i will go oneonone with a company ceo to find out why meta fast is succeeding. Dennis making an process promises. Howard kurtz will be joining us. Lets go to Lauren Simonetti on the new york Stock Exchange. I am looking at the board right now and i see green. It is shaping up to be a pretty good day. Earlier this morning, the dow fell below, but up 58 points right now. Seeing a lot of stress from retail. The top retailers are all the best performers. Back to you. Dennis thank you very much, lauren. Cheryl it could be another nail in the coffin for jcpenney. Ceo says jcpenney is a damaged business that is turning around. Paul, you agree with him. But ive been very bullish on the company. The stock is high right now. You think this company is poised to make a comeback. How so . If we rewind to the end of the first quarter, no one expected us to turn around on the dime. During the quarter, people got excited. More than two years of plunging sales. Department store sales are in slowed the client. The strategy that he has announced on the earnings call, which i listen to, cheryl, i am not sure it is enough to assess the tape. They went through a serious cash burn. Here is the strategy. Bring back the private label brands. More cash registers in the store. It also involves blaming the retail steve jobs, ron johnson. Cheryl listening to the conference call. The chief Financial Officer basically said, look, and that of our capital was spent on the Home Department renovation. Jcpenneys was one of the only two in the home section. These have some missteps. It is so frustrating to shareholders. The home strategy was set in place sixnine months ago. Some of the missteps were that the openings were delayed. This was all set in place prior to him taking over. One of the other comment was that the Home Division online was actually a positive, even though after the home vision launched in stores, was actually a negative for traffic. Cheryl this is another issue for this company. You cannot just let them off the hook. Traffic was down. Customers are not even walking in the door. That is because they alienated their customers in favor of the younger, wealthier crowd. As for the instore brands that they have brought in mike arthur stuart, those look like expensive showrooms in those Home Department of jc penney. Jcpenney is right now is smaller than the gap. That is bad for the company. Let me jump in there. That is all correct and i agree with everything that you said. They know that they made a mistake with and overdesigned Home Department. Yes, it looks great, the question is, can they get the middle american customer . Can they get that shopper back in . It is not for sure, but i am guessing yes. It depends on financing. Will wall street still believe their turnaround story in time for jcpenney to turn it around . It depends also whether wall street continues to back them as well. Cheryl cash burn is another area. How can they stop and at the same time save the company . We can listen to management and speculate about what they are really saying and what they are really telling the truth on. Payables actually went up in the quarter. They had to re merchandise a lot of the stores. Payables would have shrunk, actually. I think that is actually an area where i believe that the vendors are trusting management and giving them some breathing room. Yes, cash burn is at the top of my list. Obviously, big swing factor is the fourth quarter, will they make actual profits, neutralize the cash burn or will be another negative . Cheryl we should say that the stock is down 44 over the last year. Elizabeth macdonald and paul, thank you very much. Appreciate it. Thank you. Dennis our next guest says equities will bounce back big before it year and. Thank you for being with us darrell. The s p saw 1460. It is now at 1660. Where will we be at year end and talk about 2014. 16501700. We are at the low end this morning. We still think that there is room for expansion. I do not know many bull markets that and at a 14. A little bit of multiple expansion with a target of 1750 to 1800 at that time. Dennis this forecast assumes that the fed does what. Certainly, we think that tapering is a little overdone. There is this great debate about september. We will see the july fed and its tomorrow. Whether tapering happens in september or gets put off until december. Tapering needs to happen. We are seeing better economic data. Companies will parlay that into earnings growth. I think that will continue to be good for stocks. Dennis we go back up and then we go right back down again. We are barely holding on to the dow 15,000. I am personally offended by it. I think that it is still debatable. I think that there probably is a little bit more data that would suggest that september would be the month. The markets and the fed are fixated on the jobs data. If you look at the weekly jobless claims, they are at a prerecession low. With the fed fixated on jobs data, i think that is important and they will want to start that tapering process. Ke will want to start that tapering process. Remember, we had the same reaction in june when the market went down about 9 . This is not unprecedented. The markets will typically do this. You can bring the equity allocation back up. Since 20007, we have seen a billion dollars. Only 10 of the money has come back in. Dennis about time some investors woke up. Thank you for being with us. What is bugging me today is Time Warner Cable and cbs. Cbs has been dark. An oddball of assortment of kids shows. I want my new york jets football and my under the dome and the ten cbs owned showtime channels that i pay to get. I have a message to both companies. I do not care about your needs and you should care a lot more about mine. This is a fight about money with two companies that are doing very well. Here is an intervention. The typical monthly cable bill runs about 75 a month. Time warner pays over five dollars of that to espn. Raise that to this magic number. 1. 25 a month. Two words, verizon. Tweet me, how would you settle . Your comments are coming up. Cheryl all right. It is killing me. They are killing me. Well said. Profiting on loss. Weight loss, that is. The ceo of medifast. That is coming up. Dennis many dow it has a chance against fox, nbc, cnn and fox business. Can it be backed and succeed . We have the great howard kurtz next. Cheryl as we go to break, i want to take a look at the energy markets. Rbob is up. Be right back. 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. A quarter million tweeters is beare tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Cheryl we have the dow higher. Intel is leading the dow higher right now. Johnson and johnson down. Lets bring in Lauren Simonetti from the floor of the new york Stock Exchange. Three pieces of bad news that i want to focus on right now. They say that their notes and ebook Business Sales are down. Chairman said he was abandoning plans to buy. He said he wanted to buy the website. That is not happening. He says they need to focus on where they go from here. I guess his dad was a distraction. This is a big loser today. Cheryl lauren, thank you. Dennis a special media minute. Almost no advertising at all. Seen by some critics as sympathetic to radical islam. Howard kurtz joins us now. Good to see you. You too will have your own flying media logo. One thing unquestionably well so far. Spent a lot of money. Hired some people that were stars at other networks. It is a much tougher climb up the mountain to create a new channel. More serious news, less flop. It starts at a very low base. They are starting at 1000 journalists. A global paper has an Editorial Staff of 550. The channel is owned by the americanled are. In order to, you know, gain a foothold in the u. S. Market, of course it has to spend money. You mentioned at the top that people are wary of the brand going back to the iraq war. There has been an interesting shift. The focus has moved away, at least from what i am hearing, from the International Coverage. Will it be fair in its coverage of the United States . Will it be interesting . Will people want to watch . Are we not already covered. To some extent, and less there is violence in egypt or 82 or a war or some other dramatic national disaster, there is not a lot of International Coverage on the networks most of the time. At the same time, this may apply to some liberals. You know but is there a possibility that this could catch on . I suppose so. The odds are it will take a long time to build a major audience in the United States. Dennis will advertisers follow . I will just not touch this channel. Lets say that he does everything right. I think some advertising agencies will manage to say this is a place on will put my clients. It is funny that they did not pick another name. Dennis thank you so much for being with us today. Howard kurtz. Take care. Cheryl jaguar telling fox business it is now looking into the incident on an l. A. Highway. We will have more on the investigation into the incident coming up. Dennis sneezers wanted. We will tell you what the term means to social media advertisers. Clients are always learning mo to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. All your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. 25 minutes past the hour. The floodwater caused by heavy rain from the philippines are starting to rise. Roads have become rivers and tens of thousands of people are trapped in homes and shelters. At least eight people have died so far. Elmore leonard has died at the age of 87. The author of more than 45 books. He suffered a stroke. Many of the novels went on to be successful movies. Dix vandyke says he is lucky to be alive after a passerby pulled him from a smoldering j dwyer. They tell fox business that they are looking into the incident. We will keep you posted. Those are your headlines. Dennis time to make some money with charles payne. Lets talk about guns. Charles they could not go the way they were going. The background checks have been enormous. It is interesting, though. It actually goes back to 2005. This brings me to the idea of investing, making at some point, the party is over. You can see the doc has pulled back recently. There is no other reason for the stock to be pulled back. It will be difficult, but the street, you know, it is down from fiscal year this year. I still think that this stock, you have to look at it. I think you make a mistake when you try to pinpoint the top. Often, people are wrong. Right now it is trading at 15 price multiple. You can argue that the price of ratio is a little expensive. I have to tell you something, the company is firing on all cylinders. Dennis fast and serious. Thank you so much. Cheryl thank you, charles. The fox business allstar showdown. We have jim and all of her. They are packed to duke it out in our semi final round. Pretty sweet. Check out jims pick during his battle of round one. If you played along at home, you would have made some major dollars on both of our guys. Only one of these guys will move on. Dennis i cannot wait to see that one. Cheryl there argon jokes. Dennis let talk tax paid. Rich at the end will latest. Cheryl most major Weight Loss Companies are losing customers. One diet company is seeing it in case. The ceo of better fast is here. Dennis we want to hear from you. Tweet me. [ male announcer ] how do you get your boue . Bounce is great because the freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. Stocks are up and reversing what was on longest losing streak of the year. I figured i would make you hungry, it was up 1 , 409 and change with an upgrade today, jefferies saying traffic is increasing and food gloves are helping the company. Other big movers include ibm, the most heavily weighted component on the dow. We hit a new low today although it is up and pandora hit a new highend there been one of the biggest winners on the s p 500, Urban Outfitters reporting earnings that were better than expected. That stock in the double digits and facebook up three days in a row above the 38 ipo price a little earlier today. Jamie dimon is upgrading the company, also very positive comments that facebook should benefit from a massive move to mobile advertising. A big movement today. Back to you in the studio. Dennis is rare a democrat teeming with the republican but democrat senator max baucus saying the additional revenue is needed for tax reform that wont cost one trillion dollars as he goes on a road with republican congressman to push for overhauling the tax code. Rich edson is in santa clara, calif. With more on his exclusive interviews. At intel talking to folks pushing tax reform. Yesterday we caught up with them and talked about how they are going to get tax reform started and whether or not they push too a attack tax reform to any budget fights, the congressional fight over Government Spending which is coming up for a debt ceiling increase. Hard to know when you get into those discussions but any evidence that will allow us to complete fundamental tax reform i am for. I agree. The debt limit, when it takes to get it done, cant get done without it. It is more for the clean debt limit and our debt limit structure is tends to cause more problems than it solves. Having said that my major goal is to get tax reform fast and is hard to reflect what the right combination would be, what the chemistry would be, what the pieces will be, what the shape or the pieces of the puzzle are and answer that question. It is true. We dont know how quick that will play out but typically the debt limit had policy attached to with and we will see the discussion and debate and we will get there and hard to know when because treasury has the information in early november but not clear when we will reach that. Can we do it without a catalyst . We should try. I think we can. Frankly over time, more members of congress saying it is a good thing to do. While they are working together they meet at least once a week, they talk more than that. There are number of policy differences between the two. They plan on coming out with different proposals when they move through committee and you saw on the one side chairman dave camp saying it should be at tax as part of the debate when it comes to increasing the debt ceiling and he would like to take any avenue to get this done and max baucus siding with the democrats saying what the president wants is a debt ceiling increase with no policy attachment so he is for that but you do get the sense that of max baucus could get it any other way get tax reform in their this is a legacy item for him, his last term in congress. Dennis thanks to the henry clay of fox business, rich edson bringing those polls together. Good job. Rich thanks. Cheryl revenues in Companies Like when watchers, and addresses of all fall in as people turn to Free Internet sites and apps in the battle of the bulge but one company is backing the losing trend in the industry. Emanual Michael Mcdonald is back with me. Good to see you again. 15 months ago you were here and one of the only survivors. I want to ask what you are doing differently from the other groups, in particular Weight Watchers whose ceo resigned and profits up 150 in the Second Quarter. Where is this coming from . What you doing differently . The good thing we have is multiple channels and one of the big benefits is the hold Coach Network run by dr. Anderson. We have 11,700 Health Coaches to focus on helping people lose weight and people who lost weight and it is almost a direct approach to selling. It is facetoface versus doing online meetings like whitewaters is doing. They dont have that kind of personal system. Ours is more multilevel in that approach and we have internet that competes with neutral system and clinics that compete with Weight Watchers. In those malls we are seeing pressure in the economy in both those models similar to what newt resistance and when waters. Cheryl what will obamacare due to the industry . Est lot of companies putting pressure on their employees are giving them incentives to stay healthier and trevor to keep costs down. That could be a great benefit. If more people move to Preventive Care and use diet products before they get obese and lose weight it would be a great opportunity. The thing we have to see is what are they going to cover . In the past they cover Prescription Medication for people but if they start covering programs to help people it will be a great benefit. In baltimore the First Mariner Bank actually gave the employees, are around 30 on the Program Using our help coaches and lost weight and it has been a benefit to the bank. Many companies themselves are taking action to help their employees without waiting for government action. Cheryl going further to get their costs down which are out of control and making an interesting move and this is a bullish sign you will be more of a Franchise Organization kind of like outside the Dunkin Donuts model, successful stocks, you are also going to go that route as well. What is behind that choice . We had 40 franchises and they were doing double the revenue of the companyowned locations and our franchisees were on for for north who knew the local areas and do a great job operating the local operations. We have decided to really franchise everything and move to a model we today have 87 companyowned and 36 franchise model to all franchises. We like to go to 300 in the United States. Cheryl that will be an expansion opportunity for shareholders. Michael dell, good to see you again. We appreciate it. Cheryl all new products we are looking not. Mack and cheese. There you go. Dennis thanks very much. They have a most impressive list of clients from mcdonalds to m ms. Find out why these Big Companies are paying a small firms and big bucks to better tweet their messages. Cheryl phil flynn live at the cme and why you might want to get in on o. J. And cocoa. Phil flynn is too. Dennis sounds like a rap group. Nicole petallides and i will be talking with wall street journal economics reporter john held in rap, the man with his finger on the pulse of the fed. [ male announcer] surprise youre having triplets. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. Ashley i am ashley webster, four Straight Days of losses, taking a look of the dow, the blue chips hanging up 38 points and shares of best buy rallying after the companys latest earnings beat the estimates. Best by reporting Second Quarter of adjusted profit of 0. 32 a share compared to the estimate for just 0. 12. Revenue of 9. 3 billion down slightly from last year but still topping the forecast to 9. 13 billion and americans taking the biggest car loans and payments, trans union says the average loan balance rose 4. 5 in the Second Quarter from last year to 13,400. Trains union said the rates of car loan payments late by 60 days or more was essentially flat in the april to june quarter. That is the latest on the Fox Business Network giving you the power to prosper. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Dennis caesars want it. Not to pass around the flu. The social media term to describe the power some people have with influence on the sights when a visit facebook and twitter and the company hyperactivity is working to show big brands from m ms to mcdonalds how to harness that and we have their ceo joining us, mark fishman. You talked about one is a Company Lucky enough to get someone like in facebook, not enough companies are doing enough after that happens and what do you do to help companies do more . Thank you for having me. With social media there has been a challenge over the last few years, companies have been building fans and followers and you have Companies Like cocacola, 70,000 fans on facebook. There has been the challenge that first of all using social me as a broadcasting full close and 1way communications and that is a mistake, new media have come out in the past, we talk about activating those fans and followers, getting them to tell your marketing message, your brands message to their fans and followers and what happens is the message starts going viral land the industry starts talking about it across social media. Dennis where do sneezeare as coming . Influencers or Brand Ambassador or sometimes hyperactivators and those are people when they talk about a brand get their friends to activate around that brand. Imagine somebody selling 100 cars. We want to know who is talking about honda and the difference to baja on day and we help identify through the new platform we rolled out. Dennis and haldeman and what do you get them to do . Incentivize to become them to become Brand Ambassadors . Through participation marketing which is we make it fun for a fan or follower to talk about a brand in social me the and spread the marketing message and we have many applications we do it with and one which has enormous popular one is hash tag our mosaic, as people tweet in facebook posts there profile becomes a thailand Bigger Picture like a puzzle piece. Dennis we are looking at this, this picture for revlon, each dog that shows up, this took weeks, time lapse photography, took weeks to show up and every time someone posted, there photo or image becomes a tiny pixel. Why werent they posting . What was the question that went out to fans on this . We were getting people to talk about casting a spell and that is in line with the marketing message, all about spellbinding and magical so had people casting a spell and those spells word wishes they wanted to come true, casting a spell to make it come true. Dennis a photo flunked. We will see where it goes to the next level. Appreciate you being with us today, mark fishman of hyperactivate. Cheryl time for stocks, joining us from the floor of the Stock Exchange, market newton of gray wolf execution partners, markets rebound after this four day slump. Are you buying into this rally . Not just yet. We did seem a bit of a bounce and the breadth deegan 41 led by Consumer Discretionary and a lot of retailers, important to know that a lot of things that sold off when Interest Rates are rising are rallying as rates come dagen . These groups are fairly strong today and treasuries and equities are rallying on the same day. Europe has been the real concern with the merging markets and both of those are negative for the session but we take what we can get in the u. S. And we are one of the brighter spots in a world that most stocks are falling today. Cheryl i am shocked europe is out of a recession. Thank you very much. Dennis it is going to cost you more for orange juice and chocolate. Phil flynn has the scoop from the trading pits of the cme. Phil these markets dont care about fed a green. They worry about supply and demand, a big issue. The highest level in eight months, delivery to the ivory coast, well below expectations at a time when demand is widening. On top of that concern of hurting the upcoming crop, but in the market on fire. Orange juice as well. We pulled back today after surging as the orange juice crop could hit the lowest since 2007, citrus and the loss of acreage hurting those markets, pullback today but still a lot of problems in the o. J. Grows. Dennis thank you, phil flynn. Cheryl california not a liberal state you may think when it comes to food stamps coming up in the west coast minute. Dennis your last chance to get in on what is bugging me. How would you settle with the fight between cbs and Time Warner Cable . Join us at projectluna. Com [ villain ] well mr. Baldwin. It appears our journey has come to a delightful end. Then i better use the capital one purchase eraser to redeem my venture milis for this trip. Purchase eraser . Its the easy way to erase any recent travel expense. I just pick a charge, like my flight with a few taps, its taken care of. Impressive baldwin. Does it work for hotels . Absolutely thank goodness. Mrs. Villain and i are planning our. You scare me. And i like it. Lets go whats in your wallet . Cheryl time for your west coast minute, president s on food stamps more than any other state in the nation. Human rights Attorney Says eligible applicants are being wrongly rejected. Critics pointing to issues with online applications and paperwork requirements. Federal Government Sponsored Program misstated ministers the benefits. We will get you posted. Casinos getting a big revenue boost from the cows, latest Earnings Report from las vegas, stands and mgm strong based on chinese operations. All three Companies Reported las vegas operations also showed a bit of growth. Take a look at those stocks, how the sector is fairing and these guys have been on a tear so keep an eye on these big names. Finally major expansion plans, the vegas based Airline Coming off of ten years of profitability, charlotte, virginia, New Hampshire and oklahoma, one executive saying new yorkers like the deal, they think we achieve. Dennis make it cheap enough we will do vegas instead of atlantic city. Southwest started to go in. Ever flown out of there . Dennis it takes an hour to get out there. And i guess 70 miles or whatever. Dennis that way they can lose more in vegas. Earlier in the show i asked you to weigh in on what is bugging me. And now we are going to hear from you. Cbs and tw see, andrew, better settle otherwise many will pull the plug who would never consider doing so. Stability in my opinion. J. D. Flint, an old colleague of mine said i would do mall hard and not their Heads Together and from j bruck, how about if we get to choose specific channels and decide if the price is worth it . Time warner offered to let cbs do that. Dennis he made a point earlier about the fact that subscribers are paying for showtime so is there a refund . Dennis big that refund. You better pay up. Dennis cheryl twice a week until this thing is figured. Dennis all right. Cheryl replacing ben bernanke, ending stimulus, buzz at the jackson hole meeting, front and center for the markets in a few minutes, and the inside word on all of these stories. Dennis when bad news is good news, j. C. Penney addition, disastrous quarterly loss but as investors saying to buy that stock. Cheryl 35 states a better than minimum wage. That is coming up next. My mantra . Trust your instincts to make the call. To treat my low testosterone, my doctor and i went with axiron, the only underar low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; 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 d blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Dennis stocks jumped after the longest and losing streak. Retailers powering that after Quarterly Report surprise the streets. Cheryl there are 17 s p 500 Companies Left to report, they disappointment on as in the capital, christine short. Dennis both said minutes due tomorrow and jackson hole meeting on friday. And the wall street journal, Jon Hilsenrath on Larry Summers and janet yellen. Cheryl rich edson talks to two lawmakers, Senate Finance Committee Chairman max baucus and that is ahead. Dennis the shocking study on how much you would have to learn to be better off than being on welfare. It is time for stocks as we do every 15 minutes less go to the Stock Exchange where Lauren Simonetti is keeping the finger on the pulse, stocks finally in the green after four days down. Up arrows everywhere. Down the ten year down, Everything Else looking positive, 41. And declined today. Home depot is to talk about and 78 and now it is looking lower, one of the biggest decliners on the dow industrials today. And the housing market, the