Transcripts For FBC Markets Now 20131028

Techheavy nasdaq which really has been outpacing the major averages right now is down about 1. 5 , and the s p pulling back. Weve seen some names weighing on the dow, but ill talk about whats winning today, and those are some of the consumertype names, names like Procter Gamble and walmart, and theyre doing better today. Weve had three weve had three straight weeks of gains for the Dow Jones Industrials, each one of those weeks was up about 1 . The name thats weighing on the dow today is merck. Merck showed a shortfall, theyve also lost the exclusivity of tear asthma drug, and thats not good news. Stock down 2. 7 . Connell the online portal americans are using to buy Health Insurance, yet another glitch over the weekend, halting online enrollment adding to the growing list of problems. Dagen rich edson has a list that is growing. Hes in washington, d. C. For us with the very latest. Hey, rich. Reporter hey, guys. Well, the admission says officials spoke with verizons ceo, and the Telecom Giant promised to get the site running as soon as possible. Even if it does, technical problems still plague the federal online marketplace, and this Week Congress holds a pair of hearings to find out why the healthcare. Gov rollout was so messy. Tomorrow the administrator for the centers of medicare and Medicaid Services appears before the House Oversight committee, and on wednesday Kathleen Sebelius testifies before the house energy and commerce committee. And republicans say the web site failures are just more evidence obamacare is unsustainable. This is an incompetent rollout, symptomatic of a liberal ideology that believes government should be running our health care. I think this is just the tip of the iceberg. Eventually, theyll fix the internet problems. Reporter democrats have also criticized it, hoe they say the government though they say the government will eventually fix the problems. Administration Officials Say the site should be working for most by the end of next month. Back to you. Dagen rich, thank you so much for that, rich edson in washington, of course, we will be watching that, and here with more is tevi choi, good the see you as always. Whats the point of having these hearings . Whats going to come out of them that amounts to anything in terms of getting this thing up and runningsome. Well, thats a good question. You always wonder if theres any benefit to be had to these hearings while youre still trying to fix the problem. The point is, first of all, there are a lot of glitches. We just saw this new reuters story about people not getting access to health care. The second thing is secretary sebelius wasnt aware there were problems. What did the government know and when did they know it . And third point is, there are larger problems. Even if they fix all the code, obamacare has some serious endemic issues that are going to make it problematic to the american people. Dagen what are those, tevi . Are they flaws in the law, or are they fixable . Well, the code is fixable, but im not sure the law is fixable. President obama said that he was going to cover all these people, plus if you like your health care, you can keep it. I dont think those promises can be sustained together. So were already seeing costs going up, and thats going to continue to be a problem. If you like your health care, its not going to be the case because youre seeing lots of employers saying, actually, were going to change it, and then were also seeing the problem of people dropping folks from coverage. And even in terms of overall coverage, they said they were going to get universal coverage, but were still going to have 30 million uninsured by 2019. Dagen the goal of the law is to insure all americans, you have several million who do lose current insurance that they have or are forced to go into the exchanges, for example, with or without a subsidy, will that outrage be enough for the white house to do anything about this . I would, talking to nobody who thinks that it will. Im not sure either. But it seems to me that the white house approach is they think once the thing is up and running, enough people will be getting subsidized insurance that people will say, hey, look, its great, and they can waive individual anecdotal evidence. They can show specific people and say this person benefited from it, and they think that will be powerful enough to overcome all of the other problems that obamacares going to be causing. Dagen tevi, how long it will take years, even decades to really know what the broad Financial Impact of this will be on the nation, yes or no . Oh, yes. But i think thats what the white house is counting on. Dagen well, thats really reassuring. [laughter] the attitude is, well, were not going to know. Were not going to know if its working, and then they trot out individuals and say, look, this person is getting subsidized insurance. They didnt have it before, not counting the millions of people whose health care has been disrupted because of the law and not counting the people whose subsidies are not in effect, who dont get subsidies, and their premiums are going up. So you can say we dont really know yet, but the fact of the matter is that we already know there are some real problems, and im glad theyre having hearings. Dagen one last thing, do you think people will should or will lose their jobs because of the rollout, because the rollout went so poorly . Its very hard to fire individuals in government, so you cant really fire civil servants. In terms of contractors, yes, technically you can fire them, but because of political reasons you often dont because people say, well, be you fire this contractor, hes in a district of a powerful congressman, so we dont want to address that. And then in terms of political appointees, the wall street journal has a piece this other day where they said the pain of firing Kathleen Sebelius is less than the pain of a confirmation hearing for a replacement. So because of confirmation hearings, they wont fire her east. Dagen that was well put. Tevi, thank you so much. Well see you soon. Thanks. Connell to the markets now, and janet yellen expected to make the rounds on capitol think this week in this week as she tries to drum up support to be the next chairman of the federal reserve. The confirmation hearings are already expected to be somewhat contentious, especially following senator rand pauls threat to hold up the confirmation. We asked if that was about yellen or rand paul just hating the federal reserve. Whats your thought . [laughter] well, i think the its more of rand paul and what bill hes going to get through for transparency, it has little to do with janet yellen. So while this is going to be a bit of a distraction, i dont think it stops the confirmation hearings from happening or the confirmation of janet yellen as the chair of the fed. Connell so from someone whos a market participant, you say to yourself, all right, shes the confirmation hearings will proceed, she will be confirmed, and then what in terms of policy . Everything stays the same, the Printing Press keeps on rolling, i guess . Yeah, i think at this point, certainly the Government Shutdown added to the woes, but with the meeting coming up this week, i dont think theres going to be any real conversation about tapering. In fact, you probably dont want to change policy when theres a new chairperson coming into the helm at the end of january. So i think were talking really about march before the topic of taper comes back up for the fed. Connell all right. Lets talk about strategy in the markets. Weve had a number of interesting conversations here over the last week or so among our guests about stocks versus bonds, treasury yields, somebody like, as i said, bill flecken stein last week saying 3 s this magic number of the tenyear, thats bad news for the stock market, and others actually saying just the opposite, some other guests last week. Whats your thoughts . Youre the bond guy, how appealing the bond market is, treasury market is versus the stock market right now. You know, right now, again, wherever you may fall on the taper discussion may change whether you want to be in treasuries or be in equities. If we were to, lets say lets go as far as to say there would be a taper before the end of the year, i still think treasuries are a pretty good bet. Its what we would call the most beautiful ugly child of the three choices between high yield, equities and treasuries. The dependency of qe, in my opinion, effects more equities and high yield than it does in the treasury market. But the duration is where you want the play it. So id be backed up five, seven years in duration, i think youll perform quite well even if the fed tapers. Connell better than stocks. Thats my opinion, yes. Connell interesting. And nicole mentioned at the top in todays market you see a lot of the Consumer Staples with alltime highs, seems like people are, i guess, a little bit less worried going into this meeting. What do you think . Very little in terms of real policy decision. I do think that were going to show that the fed is a little more concerned about the economy than they might have been the previous two meetings, and there was a little bit of an indication in the last meeting. As we approach the holiday buying season, i think consumers and the fed are going to be a little concerned that youre going to have much momentum going into the end of the year. Connell record highs, also for i mentioned walgreens already, colgatepalmolive, kimer by clark. Kimberlyclark. Thank you. Dagen children under the age of 2 are using tablets and smartphones. I dont know how i feel about that. Connell well, they just know how to do it, so i guess the question is should they have it in front of them . I know. All right, people over 50, meantime, theyre the happiest people at their jobs. Showing really old people in these pictures. Thats fine, right . Theyre happy. Dagen some of these folks appear to be in their 80s. Connell were going to be really safe with the video. [laughter] dagen the street not getting behind best buys stock, Charles Payne will tell you why. And take a look at oil prices. A lot easier on the eyes these days although back to about 98. 50 a barrel. [laughter] [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the allnew fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Get 200 free trades when you open an account. [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutioning power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Bounce keeps my clothes fresh for weeks, even when theyve been sitting in the drawer a long time. Like those jeans you cant fit into anymore. Uh. By that, i mean. [ male announcer ] how do you get your bounce . Longlasting freshness. Connell all right. Happy old people if a moment, but first pending home sales falling to their lowest level of the year. Economic data, Home Builders, stocks to watch today. How they doing, nicole . Reporter as you noted, we saw a drop of 5. 6 this year, lowest level that actually dates back to 2011. Theres a look at the Home Builders and how they are reacting to this type of Economic News. As you can see, all down arrows. You can see all down arrows and, for example, lennar down 1. 6 home 1. 6 . Home depot, lowes came out with their numbers and not right there, Third Quarter profit actually fell just over 10 . They had a weak sales environment. They actually cite the slump in the recent housing sector slump that weve been seeing, and they slashed their outlook going forward, and thats sending the shares of lowes down 1. 2 . But were also seeing Lumber Liquidators down and home depot as well as i noted. So a lot of down arrows in anything homerelated. Back to you. Dagen if youre not happy with your job right now, maybe you should just give it some time, like several years. According to a new sur survey from the associated press, nine out of ten workers who are 50 or older say they are very or somewhat happy with their jobs. Older workers generally have climbed the career ladder and reached a place in their jobs where they have greater job security, maybe authority even. Many Older Workers say they remain on the job instead of retiring was they enjoy because they enjoy that they do. Connell less clear, by the way, in this video whether those people are over 50 or not. Dagen clearly late 80s. Connell nine out of ten people makes sense, people more established, i guess. From the baby boomers to the babies with this other new study thats out. 38 of children under the age of 2 can now use mobile media, that numbers up from 10 in 2011. Quos along with the goes along with the trend, you would think. Two out of every five toddlers using tablets and ipads playing game, watching videos before they even learn how to talk in full sentences. They can use these machines. The average time spent watching mobile media has tripled since 2011, thats the real issue, screen time. Intuitive. They can use them because they just dagen and congratulations, again, to my parents who are new smartphone owners. With small children do you think that this is just a mere replacement for tv to give them a tablet, to or is it better . It fends, theres a million types of apps on these things. Generally, its better. But i think the screen time for kids in general is a big issue, so youve got to limit it depending on the effect it has on kids. Whatever, but also theyre good. A lot of times they are pretty good if you limit the time. Dagen all right, just curious. Connell best buys stock now covering some support on the street and, hey, Charles Payne is coming up next. He is one of these people with a new phone or device also. Dagen i know. Its like the size of my shoe. Connell it is huge. Dagen and more on obamacare, who is signing up . Success or failure by numbers. Take a look at you know, hes very worried about the strength of the dollar and what the federal reserves doing to it. Look at the strength in the euro even though its trading down against the greenback today. Its a growing trend in business do more with less with ss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Theyre the days to take care of business. When possibilities become reality. 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Design a personalized plan that can help you achieve your investment goals. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. At 22 minutes past the hour, im laura green with your fox news minute. The spanish newspaper el mundo report that is the nsa spied on more than 60 million phone calls in spain in one month. This comes a week after france and germany reported the same. Britain, the netherlands are getting battered by a powerful storm that has killed at least four people. The hurricanestrength rain and winds have knocked down trees, flooded lowlying areas and caused travel problems canceling trains and airline flights. And Conrad Murray is a free man. The doctor convicted of Involuntary Manslaughter in the death of Michael Jackson was released today two years early. His medical license has been revoked or suspended in three states, and he continue toss appeal the conviction. Those are your headlines on the fox business network. Back to dagen and connelconnell. Dagen you know some celebrities would still go back to him. Connell Conrad Murray . Taig talking about clearly. Charles payne is here to put everything inner perspective. Connell stocks hes mentioned in the past. Heres the thing, revenge of the brick and mortar. Havent everyone wrote off game stop, best buy, the ceo is trying to buy the company in the teens, so its just absolutely amazing. Sub trust upped their sun trust upped their target from 70 to 65. Now, the companys beat the street in the last four quarters, the july quarter the number came in 125 better than the street. They like it now. And whats really interesting, you use traditional metics of 14 p etrading at three times book, 20 short position on this, so good news, a good Christmas Season for them. Dagen nown whats going d you know whats going to help . The new tablets coming out from apple and like the new playstation out as well. Thats got to drive traffic. It is. But it does seem logical that these guys would go out of business to have a tough time. Best buy, Deutsche Bank ups their target to 50 this morning from 40. Same thing. The last three quarters they beat by 167 . The companys back, and, you know, it still is a 10 short position on it, but the brick and Mortar Companies have survived, you know . It gets back to the creative disruption kind of thing that is capitalism. Companies learn how to adjust, and they get better. Walmart was going to put all the supermarkets out of business. You look at safeway and all of them, trading at alltime highs. They make adjustments, and we all benefit from it. Connell were not sitting here talking about circuit city, were talking about best buy when circuit city, a private equity fund wanted to buy them out, they said, no. Then they fired their best sales people. Okay. They had a unique business model. Dagen best buy will have the wind at its back with all this array of devices coming out, number one, and number two, theyve gotten their act together online more so than some of these other retailers. Yeah. Its all about the pricing. Youve got to be competitive. And if they start to tax the internet nationwide walmart has an apple tradein program, and best buy has one as well. The brick and more garre guys that have hung in there are being handsomely rewarded. Dagen and we just got this alert. Hey, healthcare. Gov, its down at the moment. [laughter] connell is it really . Dagen yep. The web site is down. There you go. Connell looking live. Dagen maybe its part of the fix, right . Youve got to break it, youve got to break it again to fix it . Its the same story, a brick and mortar story. Dagen were not making it up. Connell turn off the computer and turn it on again. Dagen that was funny. The number of people signing up, by the way, for Health Insurance weve gotten some early estimates. Does it point to success or failure . Will the health care exchange, steve forbes is standing by to talk about it. Connell and red flags on the Housing Market this morning, well talk about that as well. Keep it here on markets now. Speaking of markets, some winners on the s p 500, alcoa, bristol meyers, some others. Well be right back. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Nothing, thats what . Thats why i take prilosec otc each morning for my frequent heartburn. cause it gives me a big fat zero heartburn. Woo hoo [ male announcer ] prilosec otc. The number one doctor recommended frequent heartburn medicine for 8 straight years. [ larry ] you cant beat zero heartburn. And best oall, it means i can enjoy all the foods i love. Oh, zero heartburn is awesome. Just like zero clery. [ male announcer ] prilosec otc. One pill each morning. 24 hours. Zero heartburn. Connell here we are at the half hour and heres what is coming up on markets now. Steve forbes looking at who is signing up for Health Insurance and when we can judge of this is a success or failure. Down at last check again this morning. Then we may be at a stumbling point for housing. Number of people buying previous the own homes drop in for a fourth straight month, new numbers that are out. Samsung signing up for threeyear deal with the National Basketball association. Dagen 100 million, a lot of money. 57 varieties of heinz. That is right, nicole. Easy come, easy go. They had a deal, now that is done. They are dropping heinz because of former burger king ceo has run over to heinz ever since heinz was taken over by berkshire hathaway. So now mcdonald says we are not interested in heinz anymore. Right here in the United States you may not even notice unless you live in pittsburgh or minneapolis because those restaurants use a heinz. The rest use a lot of their own product, so you wont notice it. It will be something more abroad. Their profit numbers came in, beat the street, they did exceptionally well abroad with restaurant sales on the rise pretty much flat. 20. 60 right now. Dagen connell we talked about how the login section of the healthcare. Gov website is down, and it still is following the data Center Failures that happened over the weekend rich edson reported on this hour. Dagen will the programs disastrous rollout kill any early success or even longterm success . Steve forbes is here. Weighing in because the big question we dont have answers to at rx this point, will thisn people away from and rolling . If they will not get the insurance, the government would be forced to go after them and collect the fees. And the fines. Speaker this is why they proclaim they will have this fixed by the end of november. That is a political date because you cannot be beginning at the beginning of the year, so again that is something pulled out of the hat, not a realistic assertion of the program. The number of people being dropped from their individual insurance, seven to 15 million people, that is a disaster. Will they tried to go on those exchanges . Doing with the glitches you talked about. The doctors and a disaster with Electronic Medical records where the government mandated how these things should be done. Thats a disaster. It is just imploding. Connell that first part of it may be the biggest thing of them all. From the perspective of the technical problems you see the effects is working. For those people, not this morning, by the way. But that is the fix. Those people being dropped on top of that go to signup and cannot signup, that is the story that may be surprises the supporters of this. They are not able to keep their physicians. Just talking earlier of how people on medicare will be upset they may lose their physicians. When you get dropped from individual insurance you have the goat networks you may not want to be into. And then the website itself, you know what youre modified gross income is . Do you have any idea what that means, what that is . Dagen it has been a trend in new york city all of us witnessed about doctors no longer accepting insurance on the quality of health care that you might get. A lot of doctors, you go in and they say we dont take insurance at all, have you pay is up front. Good luck getting reimbursed from your insurance company. Looking at all of this, people losing their insurance, because going up, losing their doctors, will that really change anything in the way the white house and the administration do to fix the problems . They will react, but what will emerge from this is the next two to three years is a genuine new system in this country. Not what the Obama Administration would like, what you will see is a more patient oriented system. You are already seeing Illegal Immigrants when they go to a clinic in l. A. And other places, they pay cash. Starting to see what you referred to. You go in and you pay, you get somebody to walk you through the system. You make your own choices. Upper income, lower income with what is happening in obamacare, millions of middle income people will say we want out, we want to be in control. A whole new system will emerge the exact opposite of what the president wanted. Connell the longterm bet is the new enrollees in obamacare and satisfaction with the program will outweigh the people who are upset with it. I would assume, that is their longterm view this will seem like a distant memory at some point. You have online insurance now, private exchanges. These things work because if you dont, you go out of business unlike the government where you get more money and the more you fail. The idea people will be satisfied, you trust your medical records by government agencies. You want to be able to nowhere is this thing. You just have to stay healthy for the next two to three years. Dagen can Insurance Companies survive this . You need them to cover the ill and the Older Americans who arent on medicare which financially makes sense. If young people dont signup, the pressur pressures put on ine companies and if premiums start skyrocketing, then the older americas and the six start crying foul and then yo you havn Insurance Industry that just collapses in on itself. What you might see is an emergence of an insurance agency. Legacy players will play in it. What you will see is real insurance, catastrophic insurance may be a pain in the neck to pay for your filling but you wants to know you are covered 100 for a big hit. Dagen obamacare the way it is written policies are required to have a whole lineup of things. That is what peoples premiums like young people, their premiums have been going up in many states because these Insurance Companies are required now by law to provide insurance policies these young people were not buying. Why get insurance until you need it. They have to take you. The whole thing is going to implode. We will get a real insurance system where you are covered for the big things so something happens to you, it has to cover you until you are cured of the thing. One way or the other. Insurance industry today basically as you pay for next years expenses plus administrative fees and prophecies. That is not a real insurance system. We need real insurance for catastrophes, not the hodgepodge we have today. Unworkable. Dagen what do you make of medicare . Medicare starts to run out of money in 13 years from now according to the trustees report. Something we already have Government Health care for older america, there it is. On the verge of going broke. And theyre worried about what obamacare will be alluding funds for that. I think what youre going to see in the next few years before medicare goes broke his whole way we deliver health care in this country is going to start profound and change in idea must go up 5, 10, 20 per year will go by the boards. When you get Real Technology in, we will get everywhere else. No reason why we cannot get it there. As strange as it sounds. Dagen i love that he is hopeful. Thank you for bringing hope to all of us. Connell not just how everything stings, but how this is going to change. Dagen thank you, such a pleasure. Connell see if it gets and running. New questions meantime about doubtlessly Housing Market and these numbers that came out this morning. Dagen super storm sandy, it was one year ago today that it hit. There are still so many people trying to rebuild, still hurting from that devastating storm. Dagen twitter, is twitter a buy when it goes public . Cheryl and dennis will have the next hour on markets now. We have more in just a moment. [ male announcer ] need help keeping your digestive balance in sync . Try align. Its the number one ge recommended probiotic that helps maintain digestive balance. Stay in the groove with align. I am lori rothman with your fox business brief. Federal reserve says production in september up from the august increase of four temps. The largest gain since february. Meanwhile, ansi networks acquiring shallow media over a billion dollars. Amc shows including breaking bad, the walking dead. Global executives expect more deals ahead. The latest survey found 35 say theyre likely to pursue acquisitions compared to 25 last year. 65 of execs expect the Global Economy to improve next year up from just 25 a year ago. That is the latest from the fox business network, giving you the power to prosper. Connell some bad news this morning on the Housing Market with the number of American Signing contracts to buy homes plunging last month, lowest level since december. Chairman and ceo of Home Services of division of rupture halfway. How bad are things . That number is still kind of broad analyze numbers over 5 million. We had such a runup in the first seven months of this year both prices and units compared to the previous year, i think we are in for a pause, but the major cause of all of this is somewhat part to steve thorpes decision of health care in the uncertainty on that. The uncertainty around the Government Shutdown and the debt ceiling have caused people to sit back and sort of let things get sorted out. Connell som so people just taka break, letting all of this play out, maybe they will be back at it in a few months or so. Lets talk about how long that pause may be. In pending home sales figure can be fairly protective of what is going to happen in the future with existing home sales. With a 92 in lockstep, 92 of the time. This is number tell us that number will start to struggle and maybe that speaks to a larger pause quite possibly . What do you think . Were about two years into the Recovery Process of housing. And i think again, as we look at it, the recovery is not going to be a Straight Line moving north. It is going to have it fixed and stars and pauses. We have a number of issues that are causing people to pause, as i said the uncertainty in washington. I think jobs are another issue and i would say Consumer Confidence as we probably moved toward the end of the year, get through the holiday season, i think we will start to see a pickup starting in early 2014. Connell from you didnt mention Interest Rates in that list at all. We have a fed meeting this week, what do you think of the rates for the foreseeable future . Did not even make it in the list. No, they didnt. The rates moved up toward the summer and toward early fall. I do think that played a part. But lets face it, whether it is 4. 5 or whether it is 4. 67 or five, dont think the rate is really causing the pause. Connell the least of our issues. Pause is the word of the day, we will have you back as we do many times to see how long it lasts. Thank you for coming on today, appreciated. Thank you. Dagen mixed Economic News keeping pressure on stocks in the red. Keeping an eye on apple after the bell. On the floor of the New York Stock Exchange. Is this the most important complete report in your mind . I think it is probably right. A lot of people looking at apple and facebook. Both stocks have had a big move in the past month. In the last few hours. Overall very little sign of weakness in the tech companies. What is interesting as you are starting to see a shift into the defensive sectors a lot of people are not paying attention to regardless of the fact the market has been strong. Consumer staples up more than a percent. As well as telecom, but it is sort of interesting when stocks have gotten a little bit overbought. Sure, all eyes will be on apple, and we will see if we can continue higher. Dagen thank you, mark newton at the New York Stock Exchange. Connell a basketball related story. The nba has teamed up with samsung for the tablets and monitors courtside. Threeyear, 100 million deal makes sense on the official provider of tvs and tablets for the league tomorrow night the nba season getting started, good technology. Dagen some 100 million to 400 million. The front stretch renovation project at the daytona speedway is now underway with steel installation beginning friday. Part of the renovation project daytona is adding wider, more comfortable seats. Having twice as many restrooms, always important for beer drinkers out there. Three times as many Concession Stands and over six luxury suites with trackside abuse. Expected to be completed in time for speed week, the beginning of the daytona 500 stretch in 2016. A little more than two years. Connell i love when you do car racing definitions. Dagen congratulations jeff. We all met jeff in the studio. Nice man. He is in third place in the chase. Connell oh, my god. Dagen it is a big deal. Connell i mentioned basketball and you cannot help you on and on with nascar. Dagen it wasnt 10 minutes. Connell felt like it. Dagen a couple. Connell we will talk about the anniversary coming up this week of super storm sandy. People still recovering. Take you live to the hardest hit areas in our area coming up. Dagen look at the nasdaq, some stocks doing well. Peace of mind is important when youre running a successful business. So we provide it services you can rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Ido more with less with buss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Connell one year later. It has been a year since Hurricane Sandy rocked the coast. Second costliest hurricane behind katrina in u. S. History. Dagen Elizabeth Macdonald joins us from rockaway, new york. Liz good to be with you. Im here with kevin ms. Boyle, the editor of the wave. What do you think of what is happening . Business in particular was hit hard, good number of people are still displaced so they have had a hard time coming back. Liz this is a shot of the boardwalk ripped apart like matchsticks. This is an iconic boardwalk. This is the lifeline, townhall, main street of rockaway and so far there is no completion date as far as we can tell. We are asking how about a completion date but so far nothing firm. Liz 4 billion so far for recovery and essentially were seeing 65 billion cost to the economy. What do you say to people who say you should pay more in Flood Insurance . We expect to pay a little bit more, but we dont want to be chased out by extravagant fees. People out in kansas and joy the interstate highways and people take the subway every day and get subsidized. Tell me where you are and i will tell you the subsidy. Liz the president increased Flood Insurance. Saying increase the cost for Flood Insurance. Now we are hearing congress may vote tomorrow to delay the price of Flood Insurance. What do you say of that . It seemed like legislation at the time. I dont think they had any clue. Few have even admitted they had no clue it would cost this kind of money. It will be a devastating burden for people. Liz are you angry about it . Completely. We found it in the fine print. Fema doesnt publicize what they were going to charge. Yet you sign something into law, you hope they know about it. Liz dagen and connell, people arwaking up across the country realizing they are in new floodplains because the government updated the maps. The news is breaking that congress may vote tomorrow to delay the Flood Insurance price spikes because a lot of people could have felt if the price spikes were enacted. This is an ongoing battle. We will be covering Hurricane Sandy and the aftermath throughout the day. Connell a whole new world. Thanks. Dagen thank you so much. To answer people sending messages on twitter, the preregistration area of healthcare. Gov is still down. Just messing with it. No go. The system is down at the moment. So what does this mean . Time for private business to step in and fix this thing . Cheryl casone and Dennis Kneale are coming up with more. Connell and the fight over food stamps, the farm bill could drive up the cost of milk. Next hour on markets now. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. 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. I know that theyve called in another private entity to help with the security of it. The problem is they may have two redesign entire system the way the system is designed it is not secured. Cheryl House Intelligence Committee chairman mike rogers saying the entire obamacare site may need to be scrapped. I am Cheryl Casone with Dennis Kneale to take it to the next hour of markets now. The locking section of the obama site is down right now. Is it time for private business sector to step in and fix healthcare. Gov . We want to hear fromou. And the fight over food stamps in the farm bill may drive up the cost of milk into the 500 billion bill. Details ahead. Check in with the ceo of twist hotels. Beating the street in the Third Quarter and they are looking to expand. All this in the next hour of markets now. Dennis happy monday, cheryl. Cheryl happy monday. Steve joyce coming up to talk about the Government Shutdown effect on the industry, looking ahead and get out against the competition. Looking forward to talking to him. Dennis i am sure a lot of guys will be blending that, but i wonder how big of an impact it had. We have top of the hour stocks every 15 minutes. Nicole petallides at the floor of the New York Stock Exchange. Speed three dennis and cheryl, we have been watching a mixed market this morning. We saw them higher and into negative territory. Much like what were seeing right now. To the downside while the s p 500 squeezing out a gain. Dow jones industrials down nine and a half points at 15,560. The nasdaq has been the best performer of the bunch of late, today pulling back the tech heavy nasdaq one quarter of 1 to the downside. We are seeing some of the consumer names doing well. Some of the safe havens despite whatever market do have we have independent home sales which show some weakness. Our weakest numbers of the year dating back to levels of 2011 weeks in the Home Builders and home related stocks pulling back because the consumer stocks seem to be doing better today. That is something were keeping an eye on. Starting off this week at little bit bumpy. Back to you. Dennis thank you very much. Cheryl the glitches continue for healthcare. Gov as part of the site is down as we speak. Health and Human Services secretary is planning to testify before a healt house panel this. We have Charles Payne joining us on sets today. Peter barnes in d. C. And sandra smith in the pits of the cme. Peter, this issue with regards to the site itself. Kathleen sebelius seems to be backtracking, does not even want her picture on the site anymore. How should she deal with this and is it time to bring in the private sector, are they having those discussions . Peter yeah, they are trying to. The president appointed one of his advisors to come in and try to get all of this fixed, retained a private sector company, subsidiary of United Health care to help come in and fix the package sleep private sector participation and involvement has been there all along. It just seems they overshot and coordination was lacking that is the reason we have a lot of the problems we are having today. Cheryl does this make the argument we had to bring in the private sector, the government should not even run this website whatsoever. Dennis i think they should bring in donald trump. He got an ice rink done when the city took two years. The problem is when you bring an extra new eyes on this problem, you end up exponentially increase in the things that go wrong when they tried to interact with the old code and they are not talking together. Cheryl charles, what do you think . Charles the first thing you have to do is admit there is a problem. If they bring in everyone whos going to be a cheerleader, stop wasting the taxpayers time. If youre going to bring in somebody to dennis point was going to get the job done, does not have to be donald trump. We know people who will get this thing done. The first thing is to be a cheerleader for broken system, you are wasting everybodys time. Cheryl you can argue the states have done a much better job of getting the website up and running. Maybe we should bring the head of the cme to run this thing. Sandra private enterprise will always pass government when it comes to Something Like this. Bring in trump . To get this done . Get what done . Nobody even knows what is going on or how all of this is going to work. Theyve tried to put together a pretty website, we dont this was a miserable failure. But trying to get what done. The biggest problem is still nobody knows how this thing works. We are not even addressing the root of the problem. Cheryl at the same time sebelius is going to have to address all these issues later on this week. Are they ready to admit not only the multitude of problems, but to admit they need somebody else to come in and take over . Theyve already admitted there are problems and they will have to admit more. Kathleen sebelius will testify wednesday before the house energy and committee. They are ready to pounce on her when she appears not only angry about all the problems of the website, they are angry that she went out and was traveling around the country last week trying to reassure people all this was going to be fixed rather than talking to congress about it. She is going to get scorched. Cheryl she did go to california, arizona. It is warmer than washington. This is something we will be focusing on throughout the week. The New York Stock Exchange trying to avoid headaches when it comes to twitters ipo. Running a test of that trade happened over the weekend. Im curious if you think the stock is a buy. Charles the way they structure the ipo, they are not selling all of the stock. They will not be two classes of stocks. A limited deal. What they have done is so investor friendly they are not trying to rip off the users who use their product. It is more like linked in. Eventually went to 235 per share. I like what theyre doing so far. Cheryl i have to get the technical issues worked out. Dennis i will be interested to see if the opposite of what happened in the facebook cases where it wanted to go down in the first few days, can twitter manage to go of . If you have not taught it, will it pop from their . Im a timid investor, i would wait for the first week or so and see where it goes and tough it out. Cheryl what are the traders down there saying . Sandra we are still talking but a company that hasnt shown it can be profitable. But nonetheless nyse proved they may be able to get this done a lot better than the nasdaq with facebook. This still does not make it a safe ipo. This was a test run. Anything can happen on that day, investors need to be aware of that. Never a bad thing to see exchanges do something extra to prevent the investor from running into the issue as facebook did. Cheryl peter, you were covering the boston bombing and the white house response when all of that was going on last year. Twitter was a big piece of this story. There were millions of tweets going on. It was a survey out of ibm research lab showing 25 of the top 20 tweets were fake content. Twitter is not only they have potentially an ipo issue and a pricing issue, security issue, now were talking about potentially bad content that could threaten national security, peter. Do you think that could be a problem for twitter . Peter the platform is more of a feed than an editorial service. However it did just hire an editor for the New York Times to come in and be its news director, basically. It looks like theyre going to try and do some work on this front, which is to try and make sure there is some editorial integrity and more accuracy in what is completed. Dennis did not get into the business of being an editor. In antennas is the government decided to pass a law the communication decency act exempting all carriers like a will and websites from being liable for things said on their service. As soon as you start to decide what to take on what to keep up coming of the common danger of being responsible for everything that runs on there. It should not worry, it should turn away. Cheryl they would have something to say. Peter what was that . Im going to tweet that out right now. Cheryl one more thing to ask you about before we had to break. This is interesting. Another congressional standoff, shocker everybody. This time it is over the farm till. Republicans and democrats are deadlocked over the cuts to the Food Stamp Program. 500 billion bill. If lawmakers dont reach a compromise, milk prices could go sky high. Sandra, obviously that is part of the things traded down there. What theyre saying about the farm bill overall. That we could all be paying a lot higher milk prices when we go to the grocery store. Right now a lot of talk of milk prices per gallon hitting 8 by january. That would all hit americans pretty hard in the pocketbook especially around the holidays. Talking about substantially higher heat prices. Cheryl, not only would gridlock in washington leader to higher milk and beef prices, but the major blizzard in south dakota that could decrease the supply of cattle. Talking about a pretty substantial rise in food prices if the gridlock continues and a deal does not get done. Dennis americans may have been utterly unaware of the Government Shutdown, not touched by it directly. We will be really aware of Congress Victory laps milk prices double. It will be so much blowback. Overseas entire governments have been toppled when bread went up too much. There is no way congress lets the price of milk doublelowquote guys. Cheryl if you look at the farm bill. This is farm subsidies, food stamps and comment projects. That is where they could be a problem, peter. This is 80 billion of this thing is food stamps, and the house is asking for an increase. They want a decrease, 4 billion cups. The senate basically doesnt want anything cut out of this, this is political. Actually the farm bill is very much a bipartisan bill. A lot of farmers an in blue stas as well as red states. A lot of democrats fighting for this as well as republican. The issue is other than the cost of food stamps doubled memory my because there were a lot more applicants in the last four years, doubled under president bush as well. We had this recessions a lot more people applying for these food stamps. House republicans say their Program Needs to be reformed so it took the Food Stamp Program out of the farm bill at a separate vote on that. It passed in the house for the senate said we are not going to take these two, we will not break the farm bill up into pieces. So do farmers and there will be a compromise on this. Speed you how many conversations have we had on the set about fraud in the food stamp business when it comes to new york . Taken a check, going down to buy up barrels of food. Charles 100 billion over 10 years. We should not subsidize rich farmers, thats stupid. 4 billion out of 80 billion has not necessarily been a lot of money, it has to be done and should be done without hurting anyone out there. Dennis especially when youre cutting from historically high spending. President obama and his first year in office increase food stamps spending more than 50 and a doubledigit percentage increase on top of that. Only going up hugely is nothing. Cheryl thank you very much. Peter, we will be following that farm bill. Thank you, guys. Dennis now you see it, now you dont. It dissolves in seconds, and it aint for sale, not even over 1 billion. Cheryl Choice Hotels looking to give the brands a makeover. Details coming up, and we will talk about earnings. We will talk about energy. 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. [ male announcer ] once in a while, everything falls into perfect harmony. [ engine revs ] and you find yourself in exactly the right place at the right time. Just be sure youre in the right car when it happens. The 2014 cclass sports sedan. Power, performance and style in total alignment. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Cheryl you have a dow higher by seven points, Procter Gamble, merck, taking over to the downside but overall higher by six points. The technology side, maybe i cant, maybe i will. Talking but apple later on. A brandnew segment on the fox business stock radar. You want to look at tech overall. A lot of it is going to depend out of apple. Take a look at some Consumer Staples, outperforming right now. Nicole petallides. You got to see Procter Gamble was the leader on the Dow Jones Industrial folks, that is a representation of the action we have seen on wall street. We have seen the Consumer Staples moving higher. That only doing that, but hitting some record notable highs. You can see some of these names as we go through there. 1. 4 , walgreens thinking about shopping over there. Some of the others including kimberlyclark. Wthe watched newsstands ahead of the fed meetings, the earnings as well, these are the safe havens and they are showing their colors today. Cheryl nicole, thank you very much. Appreciate it. Dennis rejected. Snap chat ceo saying no to a hefty buyout offer from facebook zillionaire mark zuckerberg. Offer north of 1 billion. I heard 1. 4 million. More than he shall bow to acquire instagram which is now up to 700 million users. Snapshot is a popular app that lets you send pictures to friends and it vanishes after a few seconds never to be seen again. Which is kind of good depending on the stuff you receive from your pals. The young ceo decision make mayn out to be a wise one. Snap chat is considering a new round of financing and it would value the company at three 24 billion. Cheryl Cattle Rustling is on the rise across the country in particular happening at california. Thieves are stealing cows. We will have more coming up on your west coast minute. Dennis backup, flip it and reverse, junk bonds are back in style bigtime. What is behind those moves . Details coming up. The dollar mostly up. Its a growing trend in business do more with less with ss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. I am lauren green with your fox news minute. Another report out about u. S. Spying. The spanish newspaper reports its does more than 60 million phone calls in spain one month. A week after they reported similar allegations of u. S. Spying in france. And they parted german chancellor Angela Merkel phone was tapped. Conrad murray is a free man. Dr. Convicted of Involuntary Manslaughter in the death of Michael Jackson was released today, two years early. His license has been revoked in three states. He continues to appeal the conviction. More trouble for chris brown. He is scheduled to be in court today after being arrested over the weekend for a fight in washington, d. C. Brown and another man hav has bn charged with felony assault. Brown is still on probation for assaulting his onagain, offagain girlfriend rihanna in 2009. And those are your News Headlines on the fox business network. I am lauren green. Dennis thank you, lauren. You have questions and gerri willis has answers. Obamacare is a subject. If you want to talk about the website or your health care choices, fo fox business is a pe to turn tonight. Live at 6 00, live at 9 00. What will happen . We get an incredible response when we do this. They stay lit for the entire show so i said lets do two hours. I know people are worried, they are concerned. The concern is the young people who know theyre going to have to pay a lot for this coverage. Also people on medicare. Those are people who dont have a signup for obamacare, but they are so nervous, so worried obamacare is going to hurt their medical coverage and cost their doctors to drop out of the system, not give them coverage, not see them on a regular basis so they are very worried. Dennis one thing obamacare has resulted in is the number of signups for state Medicaid Programs rather than obamacare. You go through the same obamacare door and the devils in the details here. There are 700,000 people who have tried to enroll in obamacare, vast majority of people are going on medicaid. Dennis if youre facing a charge of 4000 per year to get insurance and yet the penalty may be a few hundred dollars, would you ever advise in favor of the young person waiting until they get hit by a bus to buy insurance . Gerri there is no real downside to waiting to say i will take my chances, roll the dice, people do it every single day. That is a problem with the system we have right now. But i have to tell you down the road at some point people will need some sort of coverage. Most young people will make the choice, they will say why pay this upfront when im not using these services . You can hardly blame them. Dennis gerri willis, troubleshooting obamacare, thank you very much. Guys, tune in tonight at 6 00 and 9 00 p. M. Eastern hosting a special live call in addition of the willis report. Answering questions for the entire hour of all things obamacare and glitches. Cheryl question one, can i get the site to work . It has been one year since super storms and he ripped up the east coast causing 42 billion in damage to new york alone. We will get an update on the rebuilding effort live from the rockaway, hardhit area. Dennis hotels from brands like comfort in, mainstay, looking to extend and update. First, look at the s p winners. And losers. [ male announcer ] how do you get your boce . Im, like, totally not down with change. But i had to change to bounce dryer bars. One bar freshens more loads than these two bottles. I am so gonna tell everyone. [ male announcer ] how do you get your bounce . [ woman ] time for change 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. Turning dreamers into business owners. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Dennis stocks now, lets go the floor of the New York Stock Exchange where the dow is the teeniest bit positive, and nicole has news. Reporter i am, im taking a look at bristolmyers, its doing very well today moving to levels that we havent seen in over a decade on bristolmyers squibb. Theyve done so well. Bmy, and here it is oh, you have it other there . You looking at the right one . Yeah. . I got nervous we were showing the viewers the wrong one. Its up 6. 7 right now, and when im looking at that stock, im thinking about the analysts jumping on board and upgrading the stock. Why are they doing this and pushing this to the levels we havent seen since 2001 . Turns out, they have a cancer study thats been in trials, and its done very well, it has shown great performance in two perioded of survival rates, both of which have done very well. And so with that were seeing Credit Suisse upgrading them, jpmorgan as well, thats why everybodys loving bristolmyers. A great performance. You guys got to see the big bristolmyers, i was looking at the maul one, hence the confusion. Dennis thanks very much, nicole. Cheryl a 6 year over year pop in revenue for the Third Quarter for Choice Hotels, ceo and president , steve joyce. You know, steve, even though earners per share were slightly lower than last year, franchising activity really boosted revenues for you. So franchise sees still want to operate out of a hotel. Yeah. And theyre getting more optimistic for the next several years, so our development was up 45 quarter to quarter. So that just represents their confidence about moving forward, investing in hotels, building new ones. Our comfort brand, which were redoing, that those Development Efforts have more than doubled over the last year. Cheryl comfort brand is one of the stronger brands for you. Youre trying to go into the luxury segment, but comfort is really showing strength. Yeah. Its a brand of 2000 hotels. Were doing a remake, which is difficult, the new design is terrific, though, Everybody Loves it, and franchiseees are in a hurry to do it. Cheryl a lot of your Hotel Properties are in national parks. 615 of them. Cheryl okay. So the shutdown really affected yeah. You talk to people in washington, and theyre like this was a paperless exercise where nobody got hurt, you know, i got empty hotels. In the hotel business, our inventory goes bad every night. If we dont sell it, were not going to sell it again. So there were franchises that dropped down to 2530 occupancy when theyre normally running at 80 , you know, our hotels at the grand canyon, yosemite, literally were 7080 off from where they normally would. Skyline drive was closed, the folks in the shenandoah area, the leaves dont wait for the government to start back up again. So thats lost business. Now, the good thing is its rebounded rapidly, and were looking for a really strong holiday season, lots of people saying theyre going to travel, 80 are going to use a hotel room, so our folks, were a big leisure company, so that Holiday Travel season will pick back up for us, and were expecting a strong year next year. Cheryl are you worried that the effect of a shutdown could maybe affect the dividend youre paying to shareholders, maybe theres a revenue issue there . Because revenue per room was up 3 over the last year for the Third Quarter, but what about q4 . Were saying were going to end up roughly the same. We gave our forecast for the year, and itll put us in sort of the middle 3s. And where we end up looking into next year looking for another 2 growth in demand, so more room nights. Hotels really arent being added to the system because construction only recently started. Those hotels wont open until 15 or 16, so the Hotel Industry from existing hotel standpoints in for a great run, and were doing lots of interesting things and adding a lot of new ones. You mentioned our Fastest Growing brand, and we do a lot with cambrio, and were adding them all over the country. Cheryl youve been adding international rots, and im curious if thats become more attractive than domestic. Domestic is a strong number more you, it always has been. Domestics coming back strong, but we, actually, interesting most people like to talk about asia a lot, we are very interested in europe. Europe largely unbranded as a hotel space and wants to be branded. So we see lots of opportunity for us there. Our numbers are up significantly. Were going to put a lot more resources behind it next year. Were expecting europe to be a major play for us. Cheryl do you see any jobs added with your brand next year . Absolutely. As were adding hotels, as that new construction boom comes up, people are going to get put back to work. But if you look at our customer base, one of the things were affected by is the job rate. 150,000 jobs a month is not going to cut it. So we need the government to help to stop doing silly things that hurt business, allow us to continue to develop hotelsput p. And then that actually not only are we creating jobs flu the travel business through the travel business which, by the way, is one of the highest job producers at this point cheryl it is. We need that to be on top of some decent Economic Growth so our folks who are normally our travelers who dont have a job now get that job back, and that will add to Even Stronger performance. Cheryl im going to make you a deal, i want you to come back in january. Were going to go through this again. You and i disagree im afraid you might be right. Cheryl steve joyce, Choice Hotels. Thank you very much. Dennis new york creating the firstever gas lean reserve in the wake of Hurricane Sandy in response to the shortage that caused long lines at gas stations around the new york area after the storm last year, and Liz Macdonald is live from rockaway, new york, an area that sandy smacked hard. Reporter good to be with you, dennis. Thousands of businesses and homes were affected in the area. We had this is the area where people were being rescued from their homes by sur ever boards and kayaks and canoes and, basically, speedboats ended up in kitchens. Im here with dan mundy, battalion chief for the Fire Department in brooklyn. What do you think of the Recovery Efforts here . How do you feel about it . I feel theyre going way too slow in terms of getting the allocated money to the homeowners. We have a lot of people who are still in tremendous need, and we have yet to see a single homeowner see reporter a single homeowner. In this area . We have only one homeowner in the city of new york where they had the acquisition of personal property, but there has been no other federallyfunded money thats made it to the homeowners yet. Reporter so Flood Insurance money is coming, but not the federal grant. You know, were talking about 65 billion, you know, hit, right . To the economy. Huge hit, and weve got a lot of people who are still in need waiting to, hopefully, be able to tap into that money to rebuild the homes. We have homes that were washed away, and they carried a 250,000 premium with the Flood Insurance program, and not a single ones been offered more than 130,000. Reporter your home was hit, right. Yes. Reporter what happened . Everything was underwater, basically threw everything out on the first floor. Reporter this is the iconic boardwalk for rockaway, and you can see its still not fixed yet. How do you feel about this . Its the heart and soul of this neighborhood. Its, you know, something that really is critical to the economy, and we know that the city officials are working hard and that theres a plan in place. It seems like now the plans starting to gain some momentum. Reporter okay. Good to be with you, dan mundy, battalion chief, new York City Fire d. Were going to be here live one year later, Hurricane Sandy. Dennis thank you, lizzie mac donald. Cheryl investors are awaiting Apple Earnings after the bell today. Im going to be r to have the latest in the fox business stock ray tar. Dennis and netflix attacking the theater industry, why theater owners might kill movies coming up in my media minute. First, a look at the tenyear treasury. So i can reach ally bank 24 7, but there are no branches . 24 7. 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 . I do. 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. Im Ashley Webster with your fox business brief. Contracts to buy previouslyowned homes falling to 5. 6 , the biggest month to month drop in more than three years. The National Association of realtors saying that its pending home sales index plunging to 101. 6, the fourth consecutive monthly decline. Industrial production increased by sixtenths of 1 in september up from the august increase. The september rise was the largest gain since february. And toyota maintaining its lead over General Motors as the worlds topselling automaker for the first nine months of the year. Toyota had sold 7. 41 million vehicles so far edging out gms 7. 25 million with sales just over 7 million. Thats the latest on the fox business network, giving you the power to prosper. 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. Dennis weekly inflows into junk bonds more than tripling in the past week as investors are on the hunt for higher yield. Paris Asset Management joins us now and, tim, whats the reason for the surge in junk bonds, and do you still like em . Hey, guys, thanks for having me. Well, ive been in the business 30 years, so ive got to still like em. I think that the issue is that you had a bit of a meltup in the last couple of weeks as it relates to money flows, but i think overall active credit is still the place for investors to grab yield. Dennis yeah. Now ordinarily i was reading your junk bond rates, your junk bonds and your stocks tend to go in tandem with each other, yet you like junk bonds, and you dont like the outlook for stocks, it sounds like. Why the diversion here . Divergence. Yeah. I think the issue is were used to the capital and the bondholder is sitting on top of the equity. I think as we look forward, what were looking at is sort of three things that investors are going to have to focus on, the three ds demographics, deleveraging and derisking. These are the dominant themes. And what that means is very, very limited, slow growth yet not enough to throw us back into a pretty severe recession. So what thats going to mean is nirvana, very, very Good Environment for Credit Investors where you dont have a lot of thing that is the Equity Investors are going to require to push this thing a lot higher, yet for Credit Investors, its sort of the best of all worlds. So we are very favorably ip kleined to credit. Depp deb you say deleveraging will continue to be the dominant theme, but i thought we were worried about too much leverage, so how come if we deleverage, why wouldnt that be good for stocks instead of bad for stocks . Well, i think im talking about the deleveraging as it relates to a global system. Im not specifically referencing credit. What were looking at is, you know, again, tie the three things together for a second, and when i say derisking, deleveraging and demographic, and that is that what weve got is weve got a western civilization in particular and lets not forget china as well that is going through a substantial demographic change. And as investors grow older, what theyre looking for is income. What theyre concerned about is outliving their money, a regular income to pay bills. And it is not going to change regardless of what happens in the short term. And as it relates to deleveraging, were talking about governments and Banking Systems which ties into derisking. So what weve got here is, you know, youve got this dramatic overlay, and i think fit gets to its to the issuance of the treasury market. To tie this back into qe and some of the debates on Interest Rates these days. You guys were announcing industrial production, again, very punk. Overrated if you strip out autos and aircraft. Then you look around the world at Interest Rates today, and we talk about our sort of ponzi scheme game going on with qe ever forever, but you look as an example canada, you look at germany, the u. K. , and you look at those tenyear rates of these other goths, and theyre all 240, 250, 260. So i think this is a bit of an overstated factor. Depp deb all right. Weve got to wrap, so thank you very much for being with us. Good day, sir. Thank you. Cheryl time now for the debut of the fox business stocks radar. You know, were all going to be looking at apple today like a lot of other investors, were going to zero in for our first stock business radar on apple and the forecast for apple. Now, the tech giant is set to produce earnings after the bell today. A couple things i want to show you, take a look at the three month price chart. This is a company that did cut prices on the iphone 5, but did that help . Here is the 25 gain youre looking at in the last three months. Since the last time that we heard from apple. Carl icahn has been using twitter, obviously, because he wants to see apple buy back about 150 billion in shares. Open letter to tim cook using twitter wanting to see that happen at the company, and also were going to be curious to hear about iphone 5s. There is a lot of feeling, a lot of commentary that the 5s sales are tracking rather strong back orders about two months depending on the iphone that consumers are looking for. A couple of things that were watching for, its also hewlettpackard. Why do i say that . Frankly, if you look over the last year or so at this company, first, let me give you a oneyear of apple. Heres your one year, right . But look at somebody when you compare this to hewlettpackard, apple to hewlettpackard. If you compare the two, let me show you something im not having good luck with my stock radar chart today, but if you hit this, compare apple, there we go. Its t magic, isnt it . Tv magic, isnt it . Be apple is in blue, hewlettpackard in the yellow. What do you see here in the trend lines . This is whats on my radar in particular is kind of that flat performance when it comes to apple. Theres a lot more momentum in hewlettpackard, but that Earnings Report after the bell today could change the pace, maybe steal some momentum. Watch for iphone 5s, thats going to be crucial. The demand for the 5c and also were going to, hopefully, get some updates on the ipad air. Dennis. Dennis all right, cheryl. Your monday media minute, netflix is picking a fight with the giant theater chains saying theres tight control over exclusive premiere or windows, quote, might kill movies. Netflixs chief commune cases officer telling a crowd on saturday. Quote theater owners stifle this kind of innovation at every turn. Entirely true but not a great way to reach out to theater chains to get their buyin. Is free speech, meanwhile, on twitter too free . Jess says the big Stock Offering is set for november 7th, tritt twitter isnt twitter isnt doing enough to stop it. 20,000 hatefilled hash tags on twitter last year, that was up by onethird. Now facebook and youtube have taken steps to curb abuses but twitter says, quote, as a policy we do not mediate content. But if advertisers complain, twitter may between a different tune. Cheryl . Cheryl well, forget about cat burglar, its cows that have to be careful. All the cows out there, watch out. The increase in thefts because of meat prices. Dennis i wonder if mcdonalds is behind that . Before we moove on, take a look at some of todays winners offense nasdaq winners on the nasdaq. Its a growing trend in business do more with less with ss energy. Hp is help. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Cheryl time for your west coast minute. California cattle theft is on the rise, up 22 prerecession levels. Thieves are coming in at night, mostly stealing young calves which are not branded yet, making them impossible the track. Cattle prices hit record highs in 2011 and 2012, and state officials point out a thief can get 100 president of the value. 100 of the value. Nevada is planning a huge muni sale in an attempt to pay back the 520 million the state owe it is federal government for jobless benefits. This is the biggest sale since 2008 for the state. Nevada was one of the worst states hit in the recession with unemployment hitting 14 in 2010. The federal government had to bolster the states unemployment fund. And finally Alaska Airlines is ordering a new wingless system for its boeing 737, it was just developed. It should save alaska millions in jet fuel costs. The pieces are aerodynamic tips that not only save fuel by making the aircraft faster in flight, but it will also cut alaskas carbon we missions by 30 Carbon Emissions by 30 percent. Boeing is at 130. 04, down 1. 50, and you can track alaska air as well. Dennis time for federal workers idled during the shutdown to give Something Back whether they like it or not. Government employees actually applied for state unemployment benefits, and with congress approving federal back pay for furloughed workers, Labor Department now saying these workers have to refund their state unemployment checks, as many as 70,000 workers had applied for unemployment, and now their going to have to pay theyre going to have to pay back those states. In states such as oregon, that could mean as much as 400,000 for everyone combined. Cheryl well, i was just talking about apple. Guess whos coming up in the 1 p. M. Eastern time hour . Billionaire investor, carl icahn. Is he using the media to his own benefit . Charlie gasparinos going to put the question to him in just a few moments. Depp deb and ending the blank check bailouts, the House Financial Services Committee Investigating the fhas 1. 7 billion bailout request. But first our peter barnes talks exclusively with the chiefs chairman, jeff hensarling. Peace of mind is important when youre running a successful business. So we provide it services you can rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Nice car. Sure is. Make a deal with me, kid, and you can have the car and everything that goes along with it. So, what do you say . Thanks. But i think i got this. [ male announcer ] the allnew cla. 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