Transcripts For FBC Markets Now 20131004

Golf. Karen already has evacuations underway. We have it all covered on markets now. Dagen look alive. Connell we have it all covered this hour. I said that. Dagen youve changed. Connell why do you have to give away my secrets . Dagen it is friday. Roll with it. It is the top of the hour. We have games. Nicole you could pretend you work for barclays. A more casual friday now. We are up about 34 points. Still down for the week, though. Last friday, we slowed at 15,258. Dupont and visa and disney are leading the way. Others are under pressure. What is interesting is yesterday we saw the vix flying high. Today, it has pulled back. It looks like everyone has given up hope. Back to you. Connell thank you. She is right on top of this thing. The world is skipping ahead to the next looming crisis. President obama sending jack lew to hit all the sunday morning shows this weekend. He first, though, sat down yesterday with our own lives claimant and told her what needs to be done. Watch this. We should be working on the investment in the future. We should be working on International Economic policy. We should finish the work on fiscal policy and a sensible, balanced way. Connell with that in mind, j richards joins us. He is the author of a book. It is good to have you on. We will scare everyone before the weekend. It seems almost like the administration strategy, in some ways. What do you make of that . This could be catastrophic. It is really staggering. I honestly feel like the president and his administration are overplaying their hand here. It is almost like he is trying to go on the market. Jack lew is exactly right. What we actually did, as a result of the 2008 crisis, i think it actually makes matters worse. It makes their policy. My fear is that we actually have not fixed the real cause of what led to the crisis. Connell does that make another one more likely, in your view . This debt ceiling debate that they are having, sometimes there is a lot of misinformation that gets out there. We will not miss a payment on our debt right away. Not necessarily a bond payment. The fault on our debt still seems to be an unlikely scenario. Do you think that because of what you talked about that another crisis is more likely or if things get ugly we are not able to deal with it like we should be. I do think that we did not fix the problems that led to the crisis. It was a combination of Affordable Housing policies, flooded the markets, two thirds are held by the federal government. The president said that the administration wanted to keep advocating Affordable Housing policies. Doddfrank adds new bureaucracies. I do not think they fixed the problem. Connell do you see a chance to a crisis this time around . I do. Why would the federal government default on debt . My own view is that a longterm debt is a profound problem. It is a cultural crisis. If it takes a battle like this, then i hope that is outweighed by benefits in the long run. Dennis you should read infiltrated. That is his book. Thank you so much. Cheryl senators caught discussing their strategy on a hot mic. Listen to some of this. We fall for that. I know we dont want to be here, but we will win this. Dagen joining us now is scott brown. Is compromise in the making . I think it is very difficult. In 2011, both parties seem to have a goal of wanting to reduce the budget deficit. In this case, it is all about obamacare. There has to be something for both parties to compromise on. It will be very, very difficult. What we are likely to see is one side caving in more than the other. You are seeing a lot of the republican legislators getting an earful to fix this problem. Dagen how long it will last with a shutdown before we see an impact . What about the broader economy . The real key factor is how long will the government remained shut down . If it is a matter of days, it is not too severe. If it goes on for a few weeks, some of these workers may miss a car payment or Something Like that, they will not go out to restaurants, that will have a drag on consumer spending. If you are a business, you want to hire new workers, you want to expand new capital. You will, perhaps, delay those decisions. Consumer spending looks a lot slower than what we hoped for. durable good shipments a lot lower. The economy appears to have been slowing down a little bit heading into this. The whole shutdown will not help the economy at all. Dagen we have no jobs report to talk about today. Do you think that there is any chance that we miss an Interest Payment . The Financial Markets have been very complacent through all of this. We have been there, done that. We have been to the debt ceiling issues in 2011. We have the fiscal cliff wiehl last year. At the end of the day, they will raise the debt ceiling. When you look at the possibilities of what the president can do, he can simply ignore the debt ceiling, he can do this trillion dollar coin that some people are talking about or this prioritization, yeah, it sounds okay you are talking about a 40 reduction in government spending. Dagen thank you very much. Scott brown. Connell now one of our favorite topics, twitter. It has not named unofficially which exchange it will list on. Dagen jo ling kent is here with more. Twitter aims to raise 1 billion. Now we know it is not profitable. Twitter has growing costs. They are light on revenue. Is it worth your money. The first half of this year it generated 253. 6 million. The company said it lost 79. 4 million in 2012. It lost 69. 8 million in the first half of this year. Who stands to make the most money . Take a look. We know Adam Williams owns a 7 take. And they will only list one class of shares. No secondary shares. They will have the same voting power than your shares will have. Twitter says it has about 218 million ugly active users. The growth is slowing down. They have only added 15 million users since back in 2012. They say we anticipate that our user growth will slow over time as the size of our user base increases. We expect to see the list in november. Connell the growth rate is kind of interesting. Thank you. Dagen you look at instagram. We will talk about instagram coming up. Lets take a look. This is House Speaker john boehner speaking right now. We need to sit down and have a conversation about bringing fairness to the American People and give getting our government open. Democrats are interpreting it that at the 11th hour, could you be clear. You all heard me say this. Our goal here was not to shut down the government. Our goal here was to bring fairness to the American People under obamacare. I do not believe that we should default on our debt. It is not good for our country. After 55 years of spending more than what you bring in, something should be addressed. I think the American People expect if we are going to raise the amount of money we can borrow, we ought to do something about our spending problem in the lack of Economic Growth in our country. Care act . S about the affordable why is the government shut down right now. We sent for bills to the senate. It is as simple as that. Last question. Personality sniping between you and the democratic leader in the president. No, no. That just is not true. Most of you have dealt with you for some time. I have very good relationships with all of my colleagues. It is me. Maintaining these relationships is critically important. All i am asking for is lets sit down like the American People would expect us and talk to one another about getting our government open and dealing with the significant problems that we face. Connell that will be it, it looks like, from the speaker. The big question has been whether or not is whether the speaker moves to violate the has to rule rich edson is in d. C. With his interpretation of it. Rich i think that this is an expansion of some of the reporting we heard yesterday. When you look at the last two that ceiling increases, they have always needed democrats to get this across the line. Speaker boehner wants to send a message that he is not interested in going after a default here. There has to be a negotiation at some point. There has always been some element of democrats support. The problem is there are not discussions yet on that level. There are not any high level negotiations. I think Speaker Boehner wants to make clear he cannot go out and say, look, if we are not having a negotiation i will just put a clean debt ceiling bill on the floor. He still has to try to get something from democrats to increase the debt ceiling so he will not concede that with a couple of weeks. Connell we have come to learn not the hard way. Dagen they do not have a whole lot of time. Rich that is right. Their wish list to increase the debt ceiling that they put out two weeks ago, that is not something that they can pass on their own out of the house. They had problems putting that whole bill together. They still need to get an opening offer. It is not clear that they can do that. Dagen thanks. They wait until the last minute. No woman behaves that way. You have a dinner party coming up two months from now, you will be planning your money right now. Connell rich was right. We know they will let this drag on. That is the way it has always been. Dagen and that is why people find lawmakers connell worst and tv anchors. Lets go back down to nicole. Nicole a lot of frustration. Frustration and washington, frustration on wall street, frustration in america. They are leaving it to a game of chicken. The markets that behaved quite well considering we have been shut down half the week. What happens when we start to approach the october 17 date . What happens to our Credit Rating . We have heard some really tough scenarios. Back to you. Connell a number of side effects to this situation in washington. This is kind of an interesting one. This would be considered a crooks dream. Three of the countries top ten banks are stocking atm machines with extra cash. Banks are concerned about a possible consumer panic that may take place. Similar steps were taken a couple years ago when this happened. That is all part of it. Here are the financials. Dagen panic in the streets. Connell that is where we are. Dagen would you eat at a restaurant called potbelly . Connell or buy a stock that is called potbelly. Jeff flock will tell us why investors like potbelly. Dagen job astarte is standing by to talk to us about that storm in the gulf. Why we should all be worried about that. [ male announcer ] imagine this cute blob is metamucil. And this pk is the inside of your body. See, the special psyllium fiber in metamucil actually gels. And that gelling hes to lower some cholesterol. Metacil. 3 amazing benefits in 1 super fiber. Dagen a show at a chicago antique shop. Potbelly hitting the stocks today. Connell jeff flock has the story. Jeff i ate at the original potbelly on lincoln avenue. It is not because of what it does to your waistline. Each one has a potbelly stove. Take a look at the stock. The thing has doubled since it started this morning. It is the unique nature of the place. They have live music. Everything is very homey. They have little lamps on the table and that sort of thing. Lets look at the numbers. They have raised 105 million on the offering at 14. Now, of course, it has more than doubled. A lot of room for growth all around the country. 274 million in revenue. They really see a lot of positive prospects. They are thinking about offering one special sandwich. That is called the rack. Connell they could call that dagen thank you, jeff. Jeff love you. [laughter] dagen at the ceo of potbelly will be up in the next hour. Tropical storm karen raising some concerns for the oil sector. We have the outlook for the weather. Not just this weekend, but the rest of the fall and the rest of the winter. Connell the man who created free agency in the nfl. He is now ready to start representing College Athletes. It is big in that industry. He will join us. Do not miss that story. [ 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. You know how painful heartburn can be. For 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®. Relieving thhelp the gulfy. When we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. I catell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. Dagen here is what is coming up. Joel standing by to talk about the storm in the gulf right now. What it means for oil production. Monday in College Sports. The man who brought free agency to the nfl is now ready to wrap College Athletes. The big film is being billed as the best 3d experience since avatar hits theaters this weekend. Connell leading leaving millions of consumers vulnerable. Nicole watching adobe vulnerable. You never want to hear this kind of information. You are seeing adobe stopped acting quite nicely. The attackers did remove some information of maybe 3 million adobe customers. They are working on the situation. They are not really sure what can ensue after this. It could have various adverse affects on us. We will continue to watch this. Back to you. Dagen at the gulf of mexico not quiet right now. Tropical storm karen. Joe, what to make of this storm . Also, the ve Winter Weather we are seeing out west. The storm itself is probably a two to three day disruption of normal processes in the gulf of mexico. It will not rock over in the rigs or anything like that. It will curtail what people can normally do. It does sort of put a cramp in your style, as far as the Energy Situation goes. It will come back online very quickly. It could stage a last second intensification here so it could get pretty close to hurricane strength. I think it will cross the extreme southeast. This will come from the southwest. It will turn off to the northeast, going to alabama as a big rainstorm. With the water so warm in the atlantic ocean, this Hurricane Season has been very interesting. Big things going on globally. We still may have to pay the price. A lot of upward motion over the ocean may mean we have another lateseason storm to deal with. I will be watching the bahamas next week. Dagen are you seriously talking about another sandy . That source region, the bahamas, the caribbean, the eastern gulf of mexico, this is the pattern that we are in. What is amazing is how quiet the atlantic has been for how warm it has been. This is wild. This will probably be the earliest greatest storm system in history. Do not be surprised if next friday we have another storm in the west and tropical problems south. The snow inside siberia, way higher than normal. Dagen take your pick, east or west. Joe, it is great to see you. You look terrific. We will see you soon. Connell playing like the pros. The man who brought free agency to the pros. He is now looking to represent College Athletes. We will talk to him about a big story in College Sports. Dagen and gravity. It has everybody buzzing. Connell peter king is live on capitol hill. Fox business is coming up next. We heard from john boehner earlier. Peter king next. Copd makes it hard to breathe. But with advair, im breathing better. So now i can help make this a great block party. [ male announce advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains both an antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day. Advair wont replace fastacting inhalers for sudden symptoms and should not bused more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may incrse your risk of osteoporosis some eye prlems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. Ask your doctor if including advair could help improve your lung function. [ male announcer ] Advair Diskus fluticasone propionate and salmeterol inhalation powder. Get your first prescription free and save on refills at advaircopd. Com. I am lori roth did with your fox business brief. Jamie dimon has given up his title. His move was with a new company policy. The title change does not affect his status. The auction house may be moved after an investor of tears state. It calls on the ceo to step down. Samsung says its operating profits hit another high. 9. 4 billion. That is 25 from last year. That is the latest from the Fox Business Network. Giving you the power to prosper. Who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Dont have enough food to survive. We cant let this happen. There is something we can do about it. Please join Christina Aguilera and yum brands in the movement to fight world hunger by supporting the United Nations world fo programme. To donate go to hungertohope. Com or make a text donation right now. Your contribution will feed children and save lives. Together, we can stop the dying and start the living. And together, we can move people from hunger to hope. Connell back to washington, d. C. Earlier on the hour, we heard from speaker of the house, john boehner. He said this is not some game. The people do not want their government shut down and neither do i. Our next guest is peter king. He joins us from capitol hill. What do you make of that kind of talk . This is serious business. I believe that john boehner does not want the government to be shut down. However, we have had 30 or 40 ted cruz republicans hijacked the party and put them into this position. The government is shut down and it is wrong. There is no reason for it. There is no basis for it. The president cannot just stand on the sidelines. He has to get involved. Connell what does that mean, get involved . What would involvement look like to you . He is the president of the United States. He has an obligation to do something. I am not saying he should give on healthcare. We have a budget that is so large. We have a tax structure that is out of whack. I am not saying he should surrender. I am not saying he is at fault. But he is the president. He is the head of the party. As president , he is president of the entire country. We have to do all we can to find a way out of this. Connell we have these two deadlines coming together. The debt ceiling comes up by ootober 17. The ceiling has to be raised. The question before the speaker is will he be able to raise the debt ceiling with the help of some democrats and moderate republicans, assuming they are real preferring to people like you. I think that there is legitimate grounds for the speaker and republicans to negotiate with the white house. We should have started this a month ago. I think there are more than enough issues that can be negotiated there. I do not consider myself a moderate. I consider myself a bluecollar conservatives. We have to assert ourselves. Connell you are public about it. How many people like you exist in congress in the Republican Party . At least 2025 who said they would vote to reopen the government without any positions. You will not get the chance to vote on it if Republican Leadership does not put it on the floor. Connell i know you said that the president needs to step up and maybe there is negotiating that he needs to do, but the president pointed out yesterday, if the vote was brought up, we would pass it. As president , he does not have the luxury of saying we are more at fault than the democrats are. As president of the United States, he has the obligation to get involved and do what he has to do. Connell is there a next step here that you can see . Is there a next practical steps that you see happening that at least gives the government reopen . Right now it looks as if they are coming together. Again, remember, three weeks ago everyone was saying the government will never shut down. The government has shut down. It is irresponsible. History will look back on us and think that we are crazy. I do not know. I would vote whatever has to be done to keep it open. We have a lot of people in our party who are pretty dug in. Maybe they realize the real world we are trying to live in. I agree with you totally. Connell do you think that some of those payments may be missed . I do not see the way out of it. I hope that common sense prevails. Otherwise, you may as well have imus running the government. Connell on that note, we should probably leave it. Thank you, congressman. The only show on america that can talk about the government and fordham football in one breath. That is a true new yorker. Dagen if the congressman was not in the conversation, i would say, shut up. The movie gravity in theaters this weekend. Dennis kneale on the money expectations. Connell college football. That is coming up next. The man who created free agency in the nfl. Billions of dollars on the line. We will talk about it next. Thank you orville and wilbur. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Connell we like this part of markets now. This question of paying College Athletes has been all over the headlines this season. An argument that the players deserve a cut. Now, big development. The First College focused division. Thank you, sir, first of all, for coming in. We appreciate you being here. You are the god who created, well, not personally, but you were involved in creating free agency. Why College Sports now . It has been apparent for a very long time that they have all been living under the tight control of the what is different now is that it seems like people are starting to be ready for a fundamental change. Connell such as . You are referring to what . The ncaa at the highest level of football, mens basketball, womens basketball, some of the other sports are basically running a gigantic billiondollar business. Not an academic institution, but a business. What we think, or at least what i think and many people think, is that the same laws and rules that apply to other big businesses should also apply to the ncaa when it is operating as a business. Connell say i go by a athletes jersey, they should get a cut. That is one of the many issues. The two sports that they make a lot of money is football and basketball. If you start to cut into that revenue, what happens to the other sports . Does womens volleyball have to be caught . Could there be unintended consequences to all of this . No. I think that is a false issue. It does not mean that there is nothing for other sports. Right now though one group we know its nothing are the student athletes. We will have to keep in mind about those athletes is many of them do not graduate. Connell should they all get paid a salary and should it be across all sports . This is not necessarily about salaries. There are a lot of complicated Business Issues here. A lot of things that the athletes are asked to give up that have nothing to do with playing on the field. Connell we will keep talking about this. There are a lot of Business Issues. We are just starting out on this. It was a pleasure. Thank you. Dagen an incredible topic. Connell we have talked about it a number of times here. Dagen there is always big money at the box office. Gravity is hitting theaters worldwide. It is expected to take the number one spot at the box office. Connell it is an incredible visual experience. Drama and space. Sandra bullock and George Clooney. Charles i have nothing else to say. I think you summed it up very well. George clooney and Sandra Bullock, two of the most likable people on the screen. People are actually comparing this to 2001 space odyssey in 1968. Avatar in 2009. They are saying it is that good for special effects. The question is, do you care about the character . A 98 rating. Dagen the acting is there based on the people. Charles is that grouping trailer . That idea of floating out there in space and no one ever finding you is a little scary. Double the tweets before life of pi started. It is good for 3d and imax. Connell it seems to me like you had plenty to say. [laughter] thank you, dennis. That is all i have for this week. I am out of here. Dagen Dennis Kneale is up next joined by cheryl casone. Connell potbelly, shares on fire today. We have the ceo coming up. Markets now continues in just a moment. So we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. 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 althy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Dennis i and Dennis Kneale. At the friday. Gerri i am cheryl casone. Look at the dow. We are up 45 points but on track for a losing week. Put the blame on d. C. Inaction. Entry House Speaker john boehner said not a damned game. David dietz says theres more than Washington Investors need to be worried about. Dennis twitter question of the day, if given the opportunity would you buy into the ipo . Allstar panel here to help you decide. Cheryl appropriate twitter question. Potbelly shares on fire, more than doubling on the first day as a publicly traded company. Investors are eating it up. One on one with the ceo of the nasdaq. That and more ahead on markets now. Top of the hour. Stocks every 15 minutes, Nicole Petallides on the floor of the Stock Exchange and we are tracking the dow ended the s p 4 losing week. Nicole is not a surprise. You have to remember how much we have run up this year. The market had a great run and plenty of people were expecting some sort of pullback way before we talked about Government Shutdowns and debt ceiling is. That is added on to a possible pull back. The dow is up 50, looking good today. Majority of dow components doing so well including boeing, disney leading the way but it will look like a losing week for us, the dow and the s p will continue to follow that. Traders are watching washington, a market moving event. Cheryl see you in 14 minutes. Dennis House Speaker john the visibly angry lashing out at president obama and the democrats saying the Government Shutdown is not a damned game. Rich edson joining us with that from capitol hill. Rich this will continue for a while. The house will vote to fund small pieces of the government, democrats say republicans are playing games. The speaker says he is not playing any, quote, dammed games and pinned it all on the white house. I was at the white house the other night and listened to the president some 20 times explain to me why he wasnt going to negotiate. Sat there and listened to the majority leader of the United States senate describe to me that he is not going to talk until we surrender. Then this morning i get the wall street journal out and it says we dont care how long this lasts because we are winning. This isnt some damned game. The American People dont want their Government Shutdown and neither do i. All we are asking for is to sit down and have the discussion and bring fairness, reopen the government and bring fairness to the American People under obamacare. As simple as that. Dennis this idea in the wall street journal with this quote in the wall street journal saying the administration doesnt care how long this goes on because they feel they are winning the political aspect of all this. The white house has pushed back, saying it is an anonymous source, disavow the idea and this is shutdown politics at its best or worst or whatever. Back to you. Cheryl our next guest says with or without the shutdown, a correction in the market would not be surprising at this point. David dietz joins me now. You say with earning season coming up at this point the valuations arent there, maybe stock are overvalued. Lets start with the shutdown. Isnt the coming out saying they are not looking at downgrading our debt rating but that is the Credit Rating but that has been a fear as it plays out in washington. I you concerned about that if this goes to october 17th . Just a tragedy they are talking about not honoring full faith and credit of the market and the u. S. Dollar and the debt is the bedrock of the Financial System so no one can imagine they could go that far. Shortterm lot to worry about, long term we have a printing press. I dont think that is in the cards. Not going to happen. Cheryl that is not so much worried about the debt but you have concerns about earnings season and we start next week in the middle of all this and you say stocks have gotten ahead of themselves and also point to potential economic drag from what we are seeing out of washington. This is a bearish argument. Absolutely. We are up almost 20 year over year. The bad news is we saw q 2 earnings and only a 3 . Stock prices can continue to outpace earnings until this finally, the rubber band contract again and what is even worse is revenues havent been keeping up with earnings so if you dont have the increase in revenue theres only so much in earnings you can squeeze out of a very slowly increasing amount of revenue and even if they have done well in q3, shutdown the government, potential default on the debt, what are Companies Going to save stock prices are about looking ahead and now, comes out october rates are they going to say things look great for aluminum for q 4 . Dont think so. Cheryl you think that will happen. A couple of companies, and love one of which is oracle but another interesting point you bring out when it comes to the data. We didnt get a jobs report this morning. I dont know what you doing at 8 30 a. M. What were you doing when you did not get the jobs report . Jobless friday. That has to put a wet blanket on the market because at the end of the day we are all about looking at the, looking at the economy because the economy will help these corporate earnings but one of the key gauges, most important gauges of the economy, is not there. The Federal Reserve said they wont stop the capering until 6 . The thermometer doesnt exist. The catering is deferred that much longer which crosses the silver lining. Cheryl of the heels of oracles big america cut wind, you say the stock is a win and to play on larry ellison. Absolutely. This is the Growth Stocks have value price. You have double digit revenues, dividend, Earnings Growth over the last ten years, less than 15 times earnings but what is it they do . The software, one of the stickiest things the company has. You dont just throw your software, as it changes price, no way, they have the track record and also getting into returning money to shareholders, the last five years. Cheryl that is how you can spend all the cash. I asked about citigroup. So interesting because citigroup had a rough week in the news, ceo at the white house, god knows what that was like and also pressure from new York Attorney general, all of that combined, dont worry about it, stay with citigroup. A lot of the impact in the stock price, company is trading, that is just book value, indeed 11 times earnings, a cheap stock but what i like is a culture problem at citigroup, much glamour, types of investment no one understands, they brought to the head place a real meat and potatoes banker. People have great things to say, he is a continuation of positive aspects. Cheryl 160 countries, there you go, global name. I like to quote. Thank you very much, appreciate it. Dennis if you could, would you buy into twitters ipo . That is the twitter question this hour and we flash your responses and with their take on it, Richard Billups of albert free and company and the president of ipofinancial. Com. You are the ideal guy so first of the top of your head, would you buy . Unqualified yes. Dennis y . I dont believe anyone is thinking facebook is going to be reincarnated and this pricing plan and how the underwriters are going to present this there is going to be no similarity between facebook with Morgan Stanley and the Goldman Sachs offering of twitter. It is going to be no confusion, no drama. Dennis because the price did so cheap . I dont think it was priced cheap. Dennis twitter price that such a Smaller Company. It is a Smaller Company but has different dynamics at this point so doesnt deserve the number. Dennis lets look at a couple figures. Look at twitter at soaring sales and losses, first pet 2013 versus a year ago revenue of double but net loss also up 40 . Should we not worry about losses in the companys this new . Gap earnings, not what we would look at. We look at Free Cash Flow and the bad guy. In the last quarter even the positive but what will get the last three quarters ebitda has been down sequentially due to hi see how that plays out in the future. This is a company that will grow revenue and at lower and lower ebitda rich i am a value guy and it depends on price and i wouldnt discount another fiasco because it is not a nasdaq problem, Stock Exchange problem but overall market integrity problem. In 1992, when some of these big ideas went public, this page would be filled with brokers. These are the only brokers dennis the biggest underwriters in the business. That is a pretty impressive lineup. These guys were on and 50 other guys. What we see in the initial filing is not a real picture what this company is about. Those 1 billion the company is not going to walk out the door with 1 billion. It will be much greater. It is a place setting for the firing feet paid for 120,000 to get this off the ground. You are going to have amendments that will follow. If they have seven and the writers they could easily have 20, 30. Dennis i care about the value of this company and whether the stock goes up or down. If it doubles the first day having those bankers failed this company . Should they be pricing where the stock does not double the first day . Absolutely not. I agree that there is a gap in the price and people say you left this on the table but the underwriters have a responsibility to price prices with some semblance of a model they can defend in the event stock goes up. Dennis how do you defend the model wiki price 20 a share and at the end of the day first trading goes to 40 doesnt mean you screwed up the view are the banker . It depends on the goal of the company, why they need the money, called the company is and the way we look at it we are a small i feel like this, it is a continuum. Is like getting a line of credit to the equity market. Not necessarily maxing out that line of credit but providing a price that will make a stable price, hopefully passed 180 days where it is more likely to see a lot of stock outstanding and into the flow. Dennis i still dont have a verdict. Are you going to buy this stock or not . David says unqualified yes. E. U. Going to buy or not . If they price between, not buy or sell recommendation i am not value guide. Between 50, and 80 a share, between 40 and sixty million shares outstanding i would say a quarter of what somebody would generally by, participate, wake 180 days, see what the stock is doing after the first quarterly report, after it hit the flow and make a decision of whether facebook is an investment for five years. Dennis thanks very much. Appreciate you being here today. Cheryl ipos, wall street eating up literally potbelly. Shares of the sand whichmaker on fire just like a peppers. Dennis terrible stock pusher. What is that . Cheryl so many possibilities on this one but this is doubling. The ceo will be joining us live from the nasdaq. Dennis shutdown day iv. We are going to talk to a former congressman about his solution. Thank you orville and wilbur. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. [ engine revs, tires squeal ] [ male announcer ] since we began, mercedesbenz has pioneered many breakthroughs. Breakthroughs in design. Breakthroughs in safety. In engineering. And technology. And now our latest creation breaks one more barrier. Introducing the cla. Starting at 29,900. Dennis i will take it. Time for stocks. Nicole petallides on the floor of the Stock Exchange. Adobe with a hack attack. As the stock been hit . Nicole stock is not reflecting what could be a tough go of it for adobe. The stock is doing well and has accelerated in these last hours, up 1 . What is happening is personal information of maybe three million users, customers of adobe, their personal information may have been compromised so they are working with federal authorities, recommending changing passwords and identification codes and trying to notify the people who may have had their personal information now revealed and it could be anything from credit cards to debit cards and the like so this Customer Data is obviously attacked through hackers and began in mid august so the stock is not reflecting that but no one wants person information revealed so we will see what happens after this. Dennis thanks, nicole. Cheryl allstar show down. We are putting stock pickers against each other for months and not just fighting for a title and the trophy. They have been making side bets as well. Take a listen. Rob morgan with Anthony Rossi this morning at ginos cheese steaks in south philly and i am here because i lost a bet to Jim Frischling this summer. A philly cheese steak my stock beats yours. I am so confident that if you win i will buy you two. Cheryl 10 but microsoft is down over 9 . Orbits is up a whopping 24 . You can guess who is now the big winner. Jim frischling. I unsettling gupta day. I am getting a cheese steak to settle up. But anthony, a loss to a new yorker. How does that make you feel as a philly guy . Terrible. Specifically said it was supposed to be too cheese. Two cheese steaks to go, and the knee. Give me give me. Iman. How are you . I am all right. This Team Straight from ginos in philly and you have been a humble winner and so i am happy to bring it to you to settle our bet. One large sandwich or two small ones . The deal was two and there you go. Thank you very much. Cheese steak sandwich. They did put special obnoxious new yorker sauce on this. You really the folks at ginos are going to be watching this when this is third so you need to take a case. You want to split it . You want me to go first . I will take one if you take one. Sound good . Here we go. Cheryl did he just called i think he did. Neither of them are still in the competition but they were great sports about it, thank you so much. Now we are watching these guys. We have oliver porche, robert luna, lets see how they are doing and how their picks are doing one week into their final championship showdown. Not so good, everything is down. Robert they have three weeks to go on to the finale. We will crown the ultimate showdown where there will be more food being given away in the next three weeks. Dennis that was just wonderful. Amazon taking on apple in the tv biz. That story ahead in my media minute. Cheryl the white house and Capitol Building, police had a history of mental self issues. That is coming up. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. 24 minutes past the hour your fox news minute. The suspect in yesterdays highspeed chase between white house and Capitol Building has been identified as a dental hygienist from connecticut. Miriam kerri tried to plow her car into a barricade at the white house beginning of highspeed chase that resulted in her being shot dead near the capital. Reports that she had a history of Mental Health illnesses. Tropical storm karen is expected to hit the northern gulf coast over the weekend but the National Hurricane center does not expect it to become of hurricane. As the emergency has been declared in louisiana and mississippi. Alex rodriguez has sued a Major League Baseball and its commissioner saying theyre trying to destroy his reputation and career. The new york yankees third baseman is seeking unspecified damages. Rodriguez is appealing his 211 game suspension for violating baseballs drug agreement and labor contract. Those are your News Headlines on the Fox Business Network. Cheryl thank you very much, appreciate it. Date 4 into the Obamacare Exchanges and the white house is asking people to be patient as a problem for americans trying to register online. How many people have managed to find out so far . Gerri willis is hosting a special series, a users guide to obamacare. Pretty surprising what you discovered. Gerri it is not just signing up, the numbers we were told about people going on the web site to shop. The government saying 4. 7 Million People went to healthcare. Gov but when you dig into these numbers is surprising. California said they had five Million People on there website. Was less than 700,000. Cheryl that went to the web site. Gerri exactly. We heard there were two Million People going on the new york website. That never sounded right. There are only twenty Million People in new york. It turns out last night the new york State Government put out 44,000 people went to the web site so different from what were hearing. When you drill down and looked at the number of people who can sign up for a policy or done that the numbers are astonishing. North carolina Blue Cross Blue Shield able to sign up one person. The best states exchange signed up Something Like 3,000 people. Cheryl theyre not even getting the data. Gerri the software when the exchange is launched, it has the federal government, the information, Social Security number and communicate with the Insurance Company and that didnt happen as well. Gerri we are not getting the information we need, we dont know if it is one person or more people are 100 people, no idea yet. They are still awaiting, the systems are a mess right now and i am sure you saw error messages, the system crashed so because of that we are trying to provide real information in the marketplace because people confuse. I get emails all the time and you do too about what is this thing . Am i eligible . Lking about that 6 00, doing a live phone in show. I have a panel of experts, we will throw those questions and get everything you need to know about that. We will have a phonenumber. Get out two seconds, the phone number, gerri you have a face book page as well. We will get that number. Gerri jerrywillisat appleby and. We are entering the mets 00. Cheryl thank you very much. Over to you. Dennis karen is coming. That approaching storm in the gulf as Oil Companies pulling workers from platforms and phil flynn has the latest at the cme. Cheryl potbelly shares on fire. The sandwich chains idea of getting double the. More coming because i will talk with the ceo and we will talk about that from the nasdaq. We will be right back. dennis stocks up, spirits up, Nicole Petallides on the floor of the Stock Exchange. Nicole some movers for you, taking a look at the airline, delta doing well as we watch paula nevada lists yesterday and today have been hot on delta. Barkleys out there but jpmorgan, Raymond James raising their targets on delta as delta came out and gave us the goahead Going Forward that they see revenue growth, passenger revenue to the upside, margins improving. That is good news for delta. We will keep an eye on facebook, instagram advertising, that will be a big deal. Kissel working with samsung. Got to get to tweet versus twitter, the long awaited ipo, we got the news they file for that. In the meantime smallcompany which is a Home Electronics company, Home Entertainment is soaring because people are confusing it for twitter. Be careful. Cheryl good point. Thank you very much. Hot belly cooking up some big numbers in its market debut today. The ceo joining us from the nasdaq. Congratulations on your ipo. Great to be here. Cheryl talk about the pricing of the idea. We were looking at 9, 11 per share and now 14. You have doubled, your stock today by 33. 78, begs the question do you think the ipo was miss price . No. I think they did a fantastic job and you cant predict what is going to happen. We are happy but this begins the rest of the day, the rest of our lives as a company and we talk a lot, investors, the cfo, charlie talbot, we had a great story, the goal is to continue to deliver on the conversations we have had over the last week in days. Cheryl lets talk about that. It is about the future and what this means for those buying the stock and debt the company and i had an analyst tell me we are calling potbelly, son of chipotle because of todays success. Looking at 20 growth in profitability for your company. Year over year. Do you think you can meet projections like that . We promised to investors we were going to grow our unit by 10 for a lot of years, we are going to give 20 net Income Growth and 20 ebitda growth. Cheryl you will stay with 10 . It is a bullish call, big move up today. Tell us what you are going to do. A lot of money goes back into the company, talking about dividends, paying that out. Would you consider at this point the success today of the dividend that you are paying to your brand new shareholders . Actually, dividends to existing shareholders that we declared the proceeds, the rest of the money will go to paying off a small debt that we have and the rest will go in the Balance Sheet. We want to have a bulletproof Balance Sheet that protect our future. We are self funding with our growth so we grow our growth out of funds generated from the operation. Strong Balance Sheet, self funding, at least 10 unit growth for longtime, a lot of white space in the u. S. And my view i want to get back to work and run the company so we can deliver on these problems. Cheryl i will take that but i want to ask about the competition. If you look at the other ipos in your space they have taken off as well. Noodles is up 139 since the ipo. Chilies up 60 , to boldly at 43 and you are being called chipotle by one analyst. Lets talk about the competition. How do you continue to market the company and the brand as being different than the rest . Great question. We compete in sandwiches and we have a great experience and it is a combination of awesome product, people and place. You come into our Sandwich Shops you will find wood, you will find live music, law of attention on great quality, a cookie on a straw, every shake and smoothie, you order an audio shake you get two cookies and the real secret sauce to what we do our terrific people. We have terrific gms that show up every day serving customers well and what we like to say we hire nice people and teach them the pot belly way. Cheryl i did my research for the interview and hata said which this morning and the people at Rockefeller Center were lovely and incredibly full. Thank you very much, congratulations on the debut today. Dennis president obama out to lunch. Moment ago our president to a rare walk outdoors headed to a nearby Sandwich Shop with the Vice President. Not of potbelly. He is not expected to be with any republicans. White house says the president wanted to take advantage of a nice day and hope he enjoyed it. Maybe the president will cross paths with those furloughed government workers. The shutdown in its fourth day, no end inside some congressional leaders at odds over the fiscal stance of coming close to the debt ceiling deadline. Speaker of the house john boehner had this to say in the past hour. Take a listen. I was at the white house the other night listening to the president some 20 times explain to me why he wasnt going to negotiate. I sat and listened to the majority leader in the United States senate described to me that he is not going to talk until we surrender. This morning i get the wall street journal out and it says we dont care how long this lasts because we are winning. This isnt some damned game. The American People dont want their Government Shutdown and neither do i. Dennis shortly after this White House Press secretary jay carney tweeting this little item, at john boehner, it is no game, mr. Speaker, so why deny the house a vote on clean continuing resolution . Many will vote yes. Joining us, former republican congressman from michigan, thanks for being with us. I know you are a republican but tell me something. Have the republicans really shot themselves in the foot here . They are taking most of the blame in the media. If you take a look at it the president has shot himself in the foot. Republicans have shot themselves in the foot as have the democrats in congress. None of their positions are sustainable for the long term. They are all going to have to move from current positions. Dennis do you think ultimately the democrats will cave in and make changes to obamacare to give the republicans a figleaf to claim victory and let them settle this thing . I think you will see a number of changes. What you are now hearing, my colleagues on the hill, former colleagues are talking about they are finally starting to get some dialogue going on between committee chairman, between the house and senate, these are the people that still actually have a working relationship, they want to solve this problem, they are going to increase the debt limit, they are going to adjust the sequestration levels, they are going to make some changes to obamacare, they are going to put something together on tax reform so all of a sudden you are finally starting to see the parameters of what a final grand bargain may look like and they are starting to talk. As ugly as this is i think were starting to finally move in the right direction. Dennis that is an upbeat assessment. I like hearing that. How common is it for congress after a law has been passed, approved by the Supreme Court to go back in afterward and fiddle with it and wants to change it . I know the white house made plenty of changes but how common is it for congress to mess with it . It happens all the time. You cant pass a law, especially the one of the magnitude of obamacare and expect you have gotten everything right. You are always going back and fiddling with it to fix the things that are broken, to reinforce the things that are working, to put in additional parts you didnt think about when you initially put the law in place and as you said, the president has fiddled with obamacare at great length by providing waivers, delays and these types of things which is why his position is not sustainable. Dennis there was a column in the wall street journal talking about how Ronald Reagan negotiated with tip oneill, lbj was reaching out to the republican side. Have you been at all surprised by of very partisan president obama who is not leading the people so much as begun on one side in favor of his side . I am very surprised because for solving these problems, the leadership should start from the white house, goes through the speaker of the house and majority leader and in this case the solution is not going to come from there. It will come from people who still have working relationships, people like chairman dave camp in the house of representatives, chairman of ways and means working with max baucus on tax issues, working with senator ron widen. These guys still have the personal relationships, they still have the trust and they have the ability and the knowledge to get something done. Dennis it will be up to the guys who have to get reelected where president obama doesnt have to worry about that. Thanks for being with us today. Cheryl Oil Companies pulling workers from platforms in the wake of hurricane karen. Phil flynn at the cme standing by talking about everything hurricanes as we go to the weekend. Dennis online frogs costing madison avenue millions or billions of dollars. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. And this pk is the inside of your body. See, the special psyllium fiber in metamucil actually gels. And that gelling hes to lower some cholesterol. Metacil. 3 amazing benefits in 1 super fiber. Ashley webster with your fox business brief. Another impact of the partial Government Shutdown, no usda prices. This followed and producers in the ultimate formula using private data to determine prices since u. S. The market prices have been suspended. Hershey announced it will build a manufacturing plant in malaysia. 250 million factory will be one of the largest and the largest ever investment in asia, hurting chocolate and icebreakers. Asia and china in the fastestgrowing region and samsungs operating profits had another record high. The maker of galaxies markphones set to make 9. 4 billion of 25 from last year, that is the latest on the Fox Business Network giving you the power to prosper. R teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Dennis advertisers cashing in like a twitter and instagram. Online fraud costing madison avenue 6 billion a year. And that Firm Technology officer cameron joins me to explain. Advertisers on popular web sites, and to except robotic visitors that not real people . That is one form of fraud. There were a few variants but the most sophisticated ones will do exactly that. Is this a function of all online at buying as automated as opposed to the rest of the advertising world are more human beings are involved, and i would be aware of it is the fake website. It opens a few more doors, examples on premium websites, and traffic ends up there. Dennis a premium website could end up having broad visits so it would be an ad network facing ads on the yahoo site scamming higher fee in some way, more eyeballs that our existing. In that case the premium is sourcing traffic from a Third Party Advertising entity. Dennis they start placing ads in their feed. Twitter comes out with the ideal and insists 5 of twitter users are fake. That could be higher. It is possible. We is seen hints of it in all the social networks. Hard to tell at this point because it is such a new thing. Dennis the bandits have been pretty aggressive moving into the booming mobile space. What is the latest . There are a couple fundamental things. First is awareness. If you are advertising you should be using some sort of school like ours. Dennis make sure eyeballs reach . You should try a few and the second thing is to make sure whoever is handling it is making this a priority because what we have seen, down the food chain. Dennis not much care, as long as i get paid. Thanks for being with us. Good fun for your firms product to fix this. Cheryl this will be an interesting weekend. Tropical storm karen headed straight for oil and gas rigs in the gulf of mexico. Lets let to the trading pits of the cme and bring in phil flynn. It has been a quiet Hurricane Season until now. Jeff it phil it really has. The most since 1950. I can remember that long. Absolutely. It is never too late and this is a reminder of that. This storm, the markets really downplaying this. We are seeing more risk premium going into the market than we would have but i will tell you this. This could be significant. I dont want to sound like president obama. I hope the market is not under playing this. The track of this storm is an important area when it comes to oil and gas production. We have seen a slew of production imports basically being shut down. Imports almost four Million Barrels of oil day into that area like 3. 9 so that is going to be impacted and keep those supplies tight. The good feeling from the market is this storm is going to track towards the east coast, that should avoid the major refineries and the market is taking this rather calm lee. Cheryl head to the east coast and talk west coast, thank you very much. Here we go. Happy friday. Time for west coast minute. City Council Approved a plan that will take it off of bank of the. Deal was reached to assure guaranteed to restructure the citys 1 fifty million plus in debt and brings to an end public, long financial fight for stocks. In los angeles wells fargo has fired 30 employees throughout the city for gross misconduct to manipulate Customer Satisfaction survey is. Trying to meet quality goals according to a spokesperson from the bank. Totally worth getting fired. There is the stock, up 0. 15. Finally, arizona tourism officials are more ready than most to see the Government Shutdown end. The states jewel and biggest tourist attraction the grand canyon shut down like the rest of the National Park system. 4. 5 million tourists visit the kenyan bringing in 1. 3 million a day to surrounding communities. This is the second time the park has been shut down since it opened in 1990, shutdown in the mid 90s. That is your west coast minute. Dennis amazon taking on apple in a tv bit. That story ahead in the media minute. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn from what happened so we could be a better, safer energy company. I can tell you safety is at the heart of everything we do. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activity twentyfourseven. And were sharing what weve learned, so we can all produce energy more safely. Our commitment has never been stronger. Cheryl as we should view this as president obama taking a rare walk to nearby Sandwich Shop with the Vice President. At the shop the president said he is happy to have negotiations with House Speaker john boehner but will only do so if the House Speaker ends the Government Shutdown. He and the Vice President ordered lunch. We will keep you posted on new developments. Dennis in the media minute just in time for christmas amazon ready to unveil the new box beating apple to the punch. Wall street journal says it could sell for 50 and work well with amazons prime Video Service and a direct challenge to netflix. The device will work well with amazons kindle fire tablet. Makers like roker new and apple need to make a profit on their gadgets that amazon sells the fire at a loss because customers use it to buy other amazon products. Can you feel gravitys pool . Weekend box office looked like a winner for gravity, the George Clooney Sandra Bullock saw 5 blockbuster could take an 40 million for water brothers beating out runner runner, gambling flick with ben f. Lek and justin timberlake, as a great trailer, space station astronauts get stranded and fight for their lives against this form of flotsam and jetsam from an exploded russian satellite. Critics see the special effects as a breakthrough on the scale of star wars, avatar, box office buzz on 3d is fading. Cheryl stock new session highs is that little progress on washington on a debt ceiling deal. Dennis senior economist and l p ls jeffrey klein, gee Market Strategist joining and a mandatory on the odds of an 11thhour deal to avoid default. Of course they will reach a deal. Cheryl even when you are a luxury brand the new plan, exclusive interview coming up in the next hour of markets now. Stay with us. Adam shutdown standoff. John boehner lashes out. Lori the markets continue to gain. We are still on track for the second straight weekly losing streak. Adam the numbers you need to know as social media giant unveils its ipo plans. We are talking about twitter. Lori did you know you are watching sesame street . [laughter] saks