Transcripts For FBC Markets Now 20140121

Earnings related. The s p 500, a bigger, broader index 500 stocks other than the 30 that are comprised of the dow. S p 500 virtually flat which shows you this push and pull action we have seen mimicking that if last week, the whole week we barely saw a move despite the fact you had 100point swings. Today at a 200point swing. The dow down 83 points. In the meantime, lot of the analysts talking about higher prices by the end of the year, higher target for the industry. As i mentioned earnings, verizon, travelers, Johnson Johnson, three names with earnings all on the dow. Nine negative dow points, Johnson Johnson 12 negative dow points. Back to you. Lori thank you, nicole. It is an anticipated week on wall street as the tech giants reveal their fourthquarter earnings. Sandra smith has the stocks to watch. Sandra where watching ibm, texas instruments. Ebay tomorrow. Microsoft later in the week. Apple, yahoo, facebook, google next week. Right now Technology Names making up about 18 of the waiting on the s p 500. So whether Technology Stocks goes, so goes the s p 500. That being said, guys, look at ibm. Down 1 today. Look over the past year, the stock really struggling to make any progress. It is about flat over the past year. Down about 4 , so investors looking to turn this around. They will be looking at certain names in earnings after the bell tonight. 17 drop last quarter, spending on new data centers, china will be huge, cloud computing. These are two things to look for. On revenues of 28. 25 billion for the quarter, guys. As we await the earnings slipping back, look at not only ibm but texas instruments. This has been a big winner over the past year ar up about 30 . After the bell tonight. Lori thank you, sandra. Adam president obamas ratings taking a hit as more and more americans find themselves dissatisfied with the state of the u. S. Economy. Rich edson joins us from the white house. Rich this is the first day of his six year in office. Increasing the minimum wage, try to stand longterm unemployment benefits, but this awfully difficult with these poll numbers. Starting five years ago at nearly 70 approval. He is now what they call upside down, more americans according to gallup disapprove of the president S Performance than approve of it. Americans confidence in the economy has slipped in the past couple of weeks. There was a gradual rise according to gallup after the federal government shuts down, that has halted and gone the other way. Now averaging negative 16 last week down from negative 13 in the first couple of weeks of 2014. A lot of that has to do with what they perceive americans as a result of economic recovery and many of the gallup poll numbers have to do with the botched rollout of health care. As the economic proposals the white house is trying to push, one political analyst says the president has a tough job. To move forward with yet another tidbit, yet another set of lets try and create less income inequality in the country while wall street is enjoying tremendous benefits from the quantitative easing makes all of this a very difficult to sell. So it is a tough sell. Democrats and republicans are about as far apart as they ever have been. That is why the president is saying he is going to create a year of action in 2014. He will use revelatory changes were congress can step in raising questions amongst republicans as to how come he is not willing to work with congress and unwilling to do so in the pastt for this you heading into the Midterm Elections in november. Back to you. Adam thank you very much. Lori sounding a little congested, i hope he gets this hudson and warms up a little bit. Lets sta show you the chart. Jeff kleintop tracking the chart. Jeff found the second year of a president cycle or president ial term tends to be the most volatile for investors. Heading deeper into the second year of obamas second term, how can investors protect themselves if they follow along with this theory . Pleased to welcome you back to our show. Curious for your take on the market, the volatile weather is causing some volatile market today. Jeff maybe. It is gone from very macro focused to bury micro focus. A lot of a mixed current today. Some stocks up, some stocks down. It shows more of a focus on the micro economy than the mac pro as they have Different Things from an earnings perspective. That is a healthy sign as they differentiate amongst Different Companies rather than throw them all together on a good day or a bad day, maybe it means a little less volatility in the near term. Lori appreciate your explanation. It seems to happen on a second year of a president s term. So take it from there. We get a lot of volatility in the second year of the president s term. If you look back at nine of the 13 president ial cycles, you get the biggest peak to trump declines. Doubledigit decline even though the second year on average has a gain. Cant really find a connection between what is happening in washington and what happens to the market. Some uses has to do with iraq invading kuwait or corporate scandals or Asian Financial crisis, but i think the washington does in effect because it does put us in a certain move, usually a year after the election, buyers remorse, some Midterm Election year. This hard to say exactly why. Usually a doubledigit decline around the end of the First Quarter all the way through to the end of the third quarter. Lori i have to ask you this, International Monetary fund upgraded the u. S. Economic growth this year. This is the first upgrade in two years to 2. 8 from 1. 9 pointed to Consumer Spending and the easing of Government Spending cuts. The talk about the fundamentals the way you see it right now. The fundamentals look pretty good. They have all raised their estimates and they are right, but Economic Data does not go in a straight line. If you look at each of the last four years, it was in the spring we saw soft spot in the data. We saw a pullback. Last year only 5 , but in prior years it was a doubledigit decline in the spring. We can get another one of those this year perhaps if things soften up a little bit. An overall gain for the economy, 3 gdp. But they are not headed higher after the fed committed to tapering, that could be enough to cause the curse to rear its ugly head again. Lori thank you, jeff kleintop. We will see you again soon. Ad gordon chang has been warning of a collapse, perhaps, of the chinese banking system. Author of the coming collapse of china and he joins us now to talk about a Wealth Management product in china called credit equals gold. On the verge of default. Why is this perhaps a test of the Chinese Government ability to bail out everything and what happens if they dont . China has never let a shadow banking project ever default. They have been timing defaults but they have always paid back investors. This is a 1. 8 trillion in these dodgy products, and this one is in trouble. So basically industrial and commercial bank of china, the Worlds Largest bank in which marketed this Wealth Management product are saying i am not paying. Everybody else is saying i am not paying. The chinese economy is somebody who is illogical. Adam to break this down to make sure we understand what is about to happen. In our own experience we had a mortgagebacked securities bundled up. In china, a Wealth Management product is the same kind of device, but the people who invest in those and put their money on the line are average moms and dads instead of leaving the money in the bank, that is what is about to befall. The government doesnt bail it out, what happens to those investors and what happens Going Forward . Those investors are not going to get paid back if there is a default. These people went into this because it was paying three times with a could of gotten at a bank. Essence about 2010, beijing has permitted investors to go into these very risky products because they kept the economy going. They kept credit going to a lot of companies that should have died. Because they did that, they have gdp growth. The real issue here is you can have credit these up, the rate skyrocket, and eventually you can have a contraction of gdp. That is what really people are concerned about. Adam the Chinese Government injected 22 billion through the standing when a facility that this bank would have access to, which it could then borrowed to make all the investors in credit equals goal, why would they not do that . They wont do it because beijing has told all the parties they want a managed default. They want risk. A gross misallocation of credit over the last three or four years as china has used basically stimulus to create all of the gdp during the downturn. Because of that you have ghost cities. You have a debt crisis. Adam you want to teach the Chinese Investor credit risk. Our government attempted that with the Lehman Brothers bankruptcy. Are we on the same part . It is the same dynamic but it is worth in china because this is going to be the first default ever. That really means all these investors have said for the last four, five years no problem, they can chase ultrahigh returns and the government will bail them out. There are too many of these Bad Companies to bail out. Adam we will be watching that, hope to have you back real soon. Thank you. Adam you are welcome. Lori that is pretty impressive but you cant make this up. Crews are working to patch up a massive sinkhole next to be bailed out automakers office in the renaissance center, which of course is based in detroit. A bankrupt city that has the potential to be another massive sinkhole. The 30foot deep crater believed to have been caused by a water main break. There have been no injuries and it could take days to even begin to fix it. The government bailed out gm to the tune of 50 billion to taxpayers taking 10 billion loss. Adam the world is awash. Any warning and why surging Oil Production is about to hit a wall. Lori fall off the target credit card breach. The downgrade and the chase to the mexican border. Adam the midwest is in a deep freeze, midwest is being hit with snow. The latest as the Weather Forces washington to grind to a standstill. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Dell is honored to be part of some of the worldgreat stories. Tt began much the same w ours did. In a little dorm room 2713. This magic moment is your tv powered by coal . Natural gas nuclear . Or renewables like solar. And wind . Lets find out. This is where americas electricity comes from. A diversy of Energy Sources helps ensure the electricity we need is reliable. Take the energy quiz. Energy lives here. Adam take a look outside, the winter storms pounding the east coast, causing the federal government to run for the hills before snow even touch the ground, federal offices in washington, d. C. , announced they will be closed. Nations capital bracing for six or more inches of snow and we will be having the latest from janice dean in the Weather Center in a few moments from you. Lori a lot of tough new yorkers braving it. Turning to the latest and targets massive data breach. Nicole petallides joins us in the New York Stock Exchange. Analysts are now look at the Financial Risks for target, right . Nicole at his heart stephen gage with the risks may or may not be. That is why you hav see multiple downgrades. The latest to do so, they continue to talk about the fact in one of the headlines in their note says we dont know how much money were talking about, but it is a lot. They may be liable for so much, many of the gift cards people purchase, 40 million of them likely also now have to be replaced. That is just part of it. Working with texas police, recent arreets made to clarify whether or not there really was a correlation or not. Something else we are following. Lori thank you, thank you, nicole b of adam are the oil markets drilling straight into a wall . Booming show production driving Energy Output to new highs, but International Energy agency is warning the u. S. Must act and left its export ban. Fox business contributor phil flynn in the trading pits of the cme. The agency says u. S. Demand outstrips china for the First Time Since 1999. And it is. The other thing they said calmly Production Growth we have seen is faster than anything we have seen from any country in the last 20 years. This is significant, talking with International Energy agency, it is on countries like opec. They had to create more oil to meet demand. The tables have turned, now the producing countries are looking at the u. S. Because what they are saying is because we are producing so much oil, our pipeline and refiners can only keep up with so much. At some point they will not be able to refine the oil, prices are going to collapse. When prices collapse producers will quit producing and the economic benefit isnt going to happen. That has got to change to lift the ban today. It is not the 1970s anymore. Back to you. Adam five years ago we were talking about the peak oil, the end of cheap oil. That is the history books now . It is. I used to call them the peak freaks. The market left to their own devices would find a way. This is exactly what has happened. When prices got high enough, somebody build a better mousetrap and they did the impossible. This is how the markets work so you will never run out of any commodity. Tasttightness for a while but hh prices get the noggin to work before you know it, we have a problem. Adam phil flynn, thank you very much. Lori intel settin selling off v business. Now it is time for verizon to get it to market. Adam treaty password as simple as 123456. The best and worst passwords that are hackers dream. [ male announcer ] e new new york is open. Open to innovation. Open to ambitio open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. [ chicken caws ] [ male announcer ] when your favorite food starts a fight, fight back fast with tums. Eartburn relief that neutralizes acid on contact andoes to work in seconds. Tum, tum tum tum tums i am lauren green with your fox news minute. Some developing news, should any campus of purdue university. Ty fox news one person is injured and another in custody. The school is urging students to stay in shelters while police searched the area. Russian forces searching for three females suspected female suicide bombers set on a technicality for two Olympic Games in so she, russia. One note is already inside the perimeter, the socalled ring of steel. Putting a picture of her right now. U. S. Military sources say our plans to provide assistance in russia if an Evacuation Order is necessary. More violent clashes on the streets of ukraines capital city. Riot Police Firing what is believed to be rubber bullets at protesters holding their ground near the building. Russian foreign minister says dont interfere with ukraines political crisis. Those are your headline, now back to adam and lori. Lori thank you, lauren green. Lets make some money. A much brighter note with charles payne. Investors are looking for a boom this year, so what are you looking at . Charles zillow. Zillow had a great year, but they had 27 net new subscribers, more than the previous six years combined. You have to prove more than that to us. 49 are below or short. The negatives are the shorts got killed last year, but they always come back rejuvenated, if you will. 48 insiders selling, we will call that a yellow flag but the company will be focused this year on the rental side of it. The rental listings they didnt charge any money for was huge. They will start charging now. They are growing fairly well. The stock is down so much, i like the risk reward here. It is obviously extremely volatile stock. Lori we had the ceo of trulia, competitor, he said the evaporation of refinancing demand has had an impact on their traffic. Is that something should keep an eye on for zillow as well . Charles i dont really see. I did not see where that really influenced their numbers a lot. What will be more importantly for my macro point of view is people have enough money to start moving. I still think the trend, always thought of the market as being reflective of younger people, but it is the baby boomers driving that dramatically. Moving into a townhouse or an apartment or a condo, that is the kind of thing that will continue to drive business for them. Adam thank you, charles. Intel is getting out of the tv business eventually. The tech giant cell and intellectual Property Rights of the cloud tv platform to verizon. Intel planning a service that would stream tv channels over the internet but it hit a roadblock getting access to the notnels. Disclosed, but the price tag around 500 million. The Company Expects the deal to close this quarter. Shares are down more than 1 . Lori choosing a next password always an annoying decision. It has to be simple enough to remember but not too simple as to invite an easy hack. The company compiled a list of the most hacked passwords of last year. Not too many surprises. At number five, abc123. Number four, qwerty. Number three is 12345678. Folletts number two is password. Coming in at number one for 2013 is the classic 123456. They also want users to avoid passwords based on the name of the website or application you are accessing. I am guilty of that. Some of the passwords you need for so many different access. It is memorization, which i am terrible at. Adam wild Winter Weather is wreaking havoc on millions of people across the northeast, thousands of flights have already been cancelled, temperatures are dropping quickly. Lori spotify, pandora, now beats music. Dr. Dre holding on the success of his headphones with a new streaming music service. Mark on why he thinks pandora will continue to hit the high notes despite the competition. One of the miller twins has a hearing problem. And shes fed up with the daily hassle of her old hearing aid. So she got a lyric in her life and everything changed. Which one . Youll never know because the lyric is in her ear. 100 invisible. You cant see it, and its the only device that works rou the clock with zero daily hassle. No batteries to change. No taking off and putting onveryday. In their report, a leading newspaper said yric appears to have overcome many of the problems associated wi aditional hearing aids sound good . Call 1 800 350 3292 now for your risk free 30 day trial. This is the lyric. Its teeny. Its soft. Lyric fits comfortably at the sweet spot right next to your ear drum for truly naturasound quality. In fact, 95 of lyric users prefer lyric sound quality to their old hearing aid. 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Withso call nowassle and ask about your risk free 30 day trial. Get a lyric in your life. Lori lets get you up to speed on the markets because it looks like the dow is coming back. The s p 500 trying to snap two days of losses as well. Lets head back to the New York Stock Exchange to see what has caught nicoles attention. Weve seen the back and forth action. There was very busy trading in the first half hour of trading which suggests some offshore moves, right, from abroad as they were interested in our markets at the closed yesterday. We have names weighing on the dow jones like verizon, travelers and Johnson Johnson and overall may have been selling after you broke 1840 on the s p 500. There are a lot of stories, a lot of names on the move. Blackberry is jumping. Dow chemical hitting a new high, dan lobe, taken a largest equity stake and now theyre only with this big hold on the stock but also making moves on what the company should do saying it should spin off the petrochemical unit and focus on special materials. Well see whether or not they do that. A big hold and vote of confidence for dow chemical. Lori thank you, nicole. Adam pandora is in a big copyright fight with the Industry Group known as ascap. What is at stake, dennis . The federal trial begins today against ascap for pandora, the American Society of authors and bepublishers. It is seeking to reduce the fees it pay. Pandora make as good point it, amounts to 4. 3 of pandora revenue, but traditional radio pays ascap a 1. 7 fee the wall street journal said the split is even worse and second far costlier fee, performance fee paid to artists and music labels. Pandora paying fully half of all revenue to artists and labels but traditional radio pays diddly, zero. Artists say pandora is ripping them off, billy joel and rihanna and 125 artists lobbied congest against a fee cut for pandora. Never rallied for zero payments with old line radio. Why does pandora pay up and radio doesnt . Demonization of bits because make tech pay because it is new. Pandora has losses and profits if the fee schedule matches old radio. Pays 3 million a year to drake and little wayne and million bucks to coldplay but to the artists its not enough. The implications of trial go beyond pandora to other Services Including spotify. Adam . Adam Dennis Kneale, thank you. That is not the end of that. Lori you set us up beautifully, dennis. Dr. Dre iconic head phones beats, it is jumping into the beats music. Will it be pigbig enough to take on the top dogs in the business, pandora and spotify. We have Rbc Capital Markets director mark mahaney. Not betting on it. Great to see you. As of earlier this month pandora was number one pick in the auto tech plays space. Youve outperform rating on pandora, price target of 35. Do you stand by that . Now that beats is space is there room for everybody . There is lot of competition. You didnt mention itunes radio. Keep them in mind. They have a big corporate sponsor there. Spotify, spotify, itunes, radio, beats they move theres market here. Pandoras advantage they have had the market to themselves for five years. They have 75 million active listeners, the second biggest service, spotify, a third of that time. Youve given pandora a pretty big lead time and they could still screw it up but if theyre good with Product Innovation and branding they are still the winner in the space. This is tough Economic Business but if anybody can make money it is pan door ray, i do spotify. I only do free spotify. I dont pay. Dr. Dr. Re, have to pay. Pandora is totally free. Going into automobiles. It will be like radio to leave to the Supreme Court to figure out the revenue stream. That is where pandora leads even though they havent made a profit yet, right. There are two points. Which will be bigger market, subscription market or advertising supported free market . The bet we would make, if youre buying pandoras stock you have to bet the advertising supported radio market will be bigger. Most of us are used to free music over the radio. I think that is reasonable bet. Second one, how big automotive opportunity . Pandora accounts for 8 of all radio listening hours. 8 of all radio listening hours in the country and theyre barely penetrated into cars. A third of all new cars being launched have pandora integrated into them. We think the 8 doubles next five years. Theyre further down the track if you will, integrated into cars, making it seamless for you as user to step into the car to have pandora play for you. That is a major advantage they spent five years investing against. Lori pandora has vast Music Library and word that dr. Dre and his beats are trying to get out there they have much stronger method of discovery following which music you prefer and remembering that and bringing it to you. Is that something to consider as an investor . I guess as consumer it is really what your own taste is. Yeah. Absolutely. The switching costs really here are really low unless youve really spent years building out our stations on pandora or on spotify. Generally the costs you nothing to go from one service to another as for an adfree service. I think that 10 bucks a month fee that beats is charging i think that will limit the size of that company. Look, these services are competing on features, functionality, personalization, user interface. Somebody could come through were with a breakthrough product will be a risk for every single one of these names. The question if somebody comes through a break laugh through app or feature how long will it take somebody to copy that . You will see a lot of that in the industry. For somebody to beat pandora they have demonstrably better free product. We havent seen that yet. Adam we get youre bullish on pandora. If they win the fight in court that Dennis Kneale is fighting about, potentially those buying into pandora today could see very big games because their costs of delivering their product would essentially make them even more competitive withter rest teal radio. With terrestrial radio. This could swing a lot of different ways. Arbitration and mediation will go through the end of 2015. I wont say it is binary, almost is which means it is not binary. Those fees pandora is paying could move up materially or come down materially. My best is they will continue Price Inflation they have been paying year in year out. Arguments both way. Very hard to get ahead of that event. I think there is price risk if you will, Regulatory Risk if you will to pandora but well not know about it until very end of 2015. Lori mark, thank you, sir. Spotify, huh . Thank you, maam. Adam spotify. Lori i always thought you as pandora. Adam in spotify you pick what you want. They all have ads. Spotify you go right there. Lori i maxed out my station preferences on pandora. Adam can you do that . Lori unless imusing you profitably. Eagles. Air supply radio. Disney tunes. Absolutely. Adam he built one of the most successful Money Management first in the world of finance but larry fink isnt done yet. Lori Charlie Gasparino is here with exclusive new details on finckes next career ambition. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who stard it all. With a signature. Legalzoom has helped start over 1 million businses, turning dreamers into business owners. And were here to help start yours. Im Cheryl Casone knee with your fox business brief. Federal judge rejecting former Global Global jon corzines bid to dismiss a regulators lawsuit. The suit claims that corzine played a key role in one of the largest bankruptcies in u. S. History. Mf globals bankruptcy left 1. 6 billion of Customer Fund missing. Delta air lines reporting betterthanexpected results. Fares and traffic increased and fuel costs declined. The carrier says it expects to increase capacity by two to 3 this quarter. International monetary fundraising its Global Forecast for the first time in two years, predicting the World Economy will grow by 3. 7 this year. That is up. 1 of a percent from its october view. Imf sees u. S. Growth at 2. 8 . That is up. 2 from its previous forecasts. That is the latest from the Fox Business Network. The dow is down only42 points. Adam larry fink may have created the Worlds Largest Asset Management firm basically from scratch but people close to him say he believes his career still has a missing piece and he has not given up hope for desired move to washington, d. C. Charlie gasparino joins us now on how Hillary Clinton Administration May actually be able to fix that. Reading the tea leaves and talking to a lot of people from what im hearing from larry fink, listen there, is not that much larry fink needs to do in his career. He created the largest Money Management firm. Knockout earnings. He is one of the key power players on wall street but ill tell you, this guy wants to be treasury secretary. He put his hat in the ring when geithner stepped down , tim geithner stepped down in 2011. As we know it didnt go to him, but went to jack lew. People close to fink, people know him on wall street, he is still making noises he wants the job. What he is eyeing is a Hillary Clinton presidency that puts him in that job. How do we know this . I can tell you i talked to a lot of people on wall street. We spent, julie, my producer around i spent the last two months researching this story, talking to people that know him. Talking to people at blackrock, obviously going through this with blackrock. An extended story is on foxbusiness. Com if you want to read it. It is on my twitter page. Gives you all the highlights. What were getting from people this guy still wants to be treasury secretary. Interesting sort of move that he made late last year. He appointed cheryl mills, a confidant of Hillary Clinton, not exactly someone with a lot of financial experience. She was in the bill linton administration. Chief of staff with bill clinton when she was secretary of state. Appointed her on the blackrock board. Adam is giving me a face. She lawyer. Adam raises an obvious question where youre going with it. She wouldnt be there if, is he raising money for hillary . What we should point out, i havent seen that yet. That is not the time but he is talking about a Hillary Clinton presidency. Should also point out larry is a throughout political player. Also talking about raising money for paul ryan, chairman of the budget, house budget committee. Vicepresident ial candidate for republicans. Does he see paul ryan being president . Not what i understand. What he sees, if he stays at block blackrock or treasury secretary, paul ryan is somebody he will have to deal with. He is very impressed with him. He is telling people he may raise money. I would urge people to read story on foxbusiness. Com. We also get into the succession battle that is likely to happen, if he take this is job in 2016, if he gets, a lot has to happen. Hillary has to be elected president. Democratic nomination for president and appoint him f that happens there will be succession battle. Lot of people say could be the president , rob capito that runs blackrock, second largest Money Management firm. Greg fleming, head of Wealth Management, very close friend of fink , he is the guy fink may bring it from the outside to run blackrock. Lori why do you think fink was passed over to succeed tim biteer . That is a good question. We do get this in the story if you read it. I think they were, it was a combination of the Obama Administration is very antiwall street. Jack lew spent time at citigroup, mostly an economic bureaucrat working in the clinton administration. Obama administration. Chief of staff before he became treasury secretary. Larry spent last 40 years on wall street. There was a little bit of that. Larry is known as kind of a gossip. From what i understand, vanity fair once called him wall streets yenta. I think from what i understand that scared people in the Obama Administration. The fact he has this network of sources. Always chatting with people on wall street. Lori could be you . Im not say but im just telling you that, that did hurt his bid adam he wouldnt pay to the whole theme of income inequality and class warfare either but would he be a good treasury secretary . Among the democrats he would be the best. Hes a smart guy. He knows the markets. He would be like a hank paulson equivalent. I actually think hank paulson was a very good treasury secretary, particularly when we needed him at that point during the financial crisis. He was former Goldman Sachs chairman and went on to become george bushs treasury secretary. He would be like hank. Im sure theyre both smart twice. I think larry is a little more market savvy. Remember, larry was a trader. Hank was an investment banker. Being a trader having a granular feel for the markets is something that is key. I can tell you this, hank paulson did not take the looming financial crisis very serious until it was happening. In the spring or late, late winter, early spring of 2008 when bear, when the bond insurers were starting to crater, that is when hank paulson was starting to get scared. Before that he thought they were dealt with. As i can tell you someone covered the financial crisis, larry fink in summer of 2007 really believed headed for financial armageddon. Lori how is his signature. A lot better than jack lews, ill tell you that. Adam thank you, charlie. Lori dow back toward the break even point. It is off 45 points. Lets see what is going on with keith bliss of cuttone company. A large swing in markets. What is all the volatility . You expect this volatility this week because we have very little marketmoving news from the economy or global economy. Fed president s are in the quiet period ahead of next meeting in january. Well flip back and forth based upon earnings and based on whimsy how people feel in the market. What is interesting this week due to the lack of other news the market is clearly sensing for direction. It is at its alltime highs. We need to get pack to being dependent on Company Earnings to trade on this market. Lori good stuff. Keith, thank you. My pleasure. Adam the Denver Broncos and Seattle Seahawks are getting ready to clash in the firstever outdoor super bowl to be played in Winter Weather and fans are paying record amounts to avoid bitter temperatures. Luxury seat prices for indoor seats at Metlife Stadium hit the one Million Dollars mark, making double the asking price for suites at prior super bowls. Lori another group, taking notice how the weather will impact the big game, of course las vegas. Sports books are delaying release of prop bets, such as how much touchdowns Peyton Manning will throw and what will be the longest field goal among others. They have account for 60 of all super bowl bets and being delayed until a more accurate weather forecast. Adam we hope the weather on the east coast right now does not stick around for super bowl. Lori indeed. 3,000 flights already canceled. Latest forecast from the fox Weather Center next. [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it is the story of where every great idea begins. And of those o believed they had thpower to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment open to innovation. Open to ambition. Open to boldids. Thats why n york s a new plan dozens of tax free zones all across the state. Move here, expa here, or start a new business here and pay no taxes for ten years. Ere new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Lori were in the midst of a winter storm, a blizzard, if you which, gripping the east coast here. Janice dean joins us live from our Weather Center with the latest where the storm is headed. Janice. All of the big cities are going to get quite a bit of snow, lori. This low pressure hasnt even gotten its act together. Were waiting for it to come from offshore and become a coastal event, really strengthening because of atlantic ocean. In d. C. Up towards philadelphia and new york city as we pointed out. The jackpot where we could get over a foot, Central New Jersey and jersey shore and coastal massachusetts and well see Flight Cancellations and delays for awe the big cities you see shaded in red as well as d. C. Then towards the northeast as we continue to see this storm move northward and eastward. We think eight to 12, maybe higher totals for philadelphia. Eight to 12 a sure bet for new york city. Eastern long island could get 10 to 14 and that goes for coastal massachusetts where we have blizzard warning with wind in excess of 30 miles an hour. Were seeing wind gusts in excess of 20 miles an hour. This storm hasnt made it onshore. We have trying time for the northeast ahead. You deeper shades of blue. Talking about 50 mileanhour gusts. Lighter shade of blue is 30 mileanhours which will cause blizzardlike conditions. This afternoon, tomorrow night, into tomorrow morning difficult for travel in all the big cities. 80 Million People impacted by this next winter storm. Lori i think i will be sleeping here in studio g looks like. All of our sleeping bags are lined up. Lori you got it. Adam speaking of weather, just the threat of snow shut down the federal government in washington, d. C. Does this speak to the work ethic of the nations leaders . Your tweets and more on the polar vortex part two coming up. Lori his story moving markets down. Wall street journal correspondent Jon Hilsenrath joins tracy and ashley in the mention hour of markets now. Five tech stocks withore 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. [ car alarm chirps ] [ male announcer ] we dont just certify our preowned vehicles we inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedesbenz dealer for 99 financing during our certified preowned sales event ththrough february 28th. She loves to shop online with her debit card. 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We all have to protect ourselves. [ male announcer ] while Identity Theft cant be completely stopped, no one works harder to protect you than lifelock. You even get a1 million service guarantee. Thats security no one can beat. You have so much to protect and nothing to lose when you call lifelock right now and get 60 days of Identity Theft protection risk free. Thats right. 60 days risk free. Use promo code notme. Order now and get this document shredder to keep nsitive documents out of the wrong hands. A 29 value free. Dont wait until you become the nextictim. Tracy hey, happy snow day, im tracy byrnes. Ashley and im ashley webster. Taper tantrum. The dow is down bigtime after the lead story in wall street journal warns that bernanke, yellen and company will further trim back the bondbuying program at next weeks fomc meeting. Tracy that is why the dow is down 46 points. We have the man who wrote the story and often moves these markets with his reporting. Wall street journal correspondent Jon Hilsenrath joins us next. Ashley just the threat of snow shutting down federal government in d. C. No surprise there. Does this speak to the work ethic of our lead officers your tweets and were live in the fox Weather Center, straight ahead on the return of the, oh, yeah, dreaded polar vortex. Tracy how cool is this . Bugee the robot. He follows us around in our studio. He can follow you around with your stuff. Ashley and i are chased by a robot. You dont want to miss it. Ashley plus theyre calling the nsaproof smartphone. Cofounder of the company who founded it is here. By the way he is member of the internet hall of fame. How cool is that . That and so much more ahead in this hall of fame nominated edition of markets now on this snowy, snowy day as tracy referenced. First top of the hour, time to look at these stocks. Lets get straight to Nicole Petallides down on the floor of the nyse. Dow is back from dunn over 100 points but still not looking great. It is as you noted about a 200point swing from top to bottom. People obviously had to make up for yesterdays holiday. Financials are weighing on the markets overall. The dow is down about 46 points. Nasdaq and s p is higher. Nasdaq up onehalf of 1 . Were noting that the s p 500 is at 1842. It dropped below 1840. That may have obviously triggered some selling. I mentioned financials. Pull up names that may be related to that. Goldman sachs,down is. 9 . Jpmorgan down 1 3 of 1 . Wells fargo squeaking out a gain. Bank of america, Morgan Stanley also lower today. Travelers, another dow component were focusing on the insurer came out with profit numbers that wwre good but there are concerns about competition Going Forward and travelers was down 1. 7 at the moment. Back to you. Thanks, nicole. We dont actually see the cheers but we hear them. Sound like theyre having fun down there. The dow is down as traders are worried about more taper talk. Page 1 lead story, wall street journal, chief economic correspondent Jon Hilsenrath says the fed is actually on track to continue tapering its Bond Buying Program when it meets next week. The man who often moves markets, Jon Hilsenrath here, along with doug cote chief Market Strategist with ing in connecticut and foxs own Liz Macdonald on set. Are you okay. Yeah. Tracy okay. Well go to jon first, you wrote the big ol story. Tell us, will it continue . Can anything derail the continuing of the taper . I guess we could call it round two. They have got eight round to get through and, no, i mean, the one report that had some people secondguessing whether or not they would go was that the jobs report a week or so ago. Most people at the fed are looking pass that. It was one weak number. A lot of Economic Data came out since meeting in december. All in all theyre looking pretty strong. Looks like growth will pick up in the second half of the year so they have got a plan and theyre sticking to it. Ashley doug, lets bring you in. So much is talked about the jobless rate, 6 1 2 . So many key areas that fed under mr. Bernanke talked about. I dont know the jobs report based on brutal december number which could be anomaly, but do they need a different measure and clearer one to signal to the markets and everyone else . No. Thats fine but what you focus on is taper means economic growth. And one statistic is not going to derail that i believe the fed will continue 10 billion at each meeting and, they wont stop because all of the, excuse me. All the fundamentals look good from consumers, from manufacturing, from corporate profits. We are in a strong economic trend, not only in the u. S. But globally, this should continue. Tracy lizzie, for all the money we spent, we talked about this last time you and jon were on, it has not trickled down to main street. Right. Why we dont have inflation either at the wage level or in inflation generally and also natural gas, you know, our production here is keeping that inflation down helping out the fed. That is really an issue too. When will rates, when Federal Reserve will raise Interest Rates . We know it is not any foreseeable event. It could be in 2015 and how the fed basically calibrates guidance Going Forward, or rather, Forward Guidance in terms when they raise rates. As jon pointed out you cant do it prematurely. You will choke off weak recovery and if you do it too late, inflation will come in. The jobless rate is backward looking number. Its a sixmonth lacking indicator they have to get it right. Ashley jon what is the best Economic Indicator if not the jobless rate which liz pointed out backward looking and december not particularly reliable. Right now it is backward looking, upside down and turned around. That is the problem the fed has now. They have held the 6. 5 Unemployment Rate out there as a very hurdle they want to see the economy get over before they raise rates. Looks like we could get there fairly quickly and theyre still not anywhere near raising rates. I think this is really the issue that theyre going to be debating at their meeting next week and at meetings at least, the next couple of policy meetings is, how do they gauge their decisions and how do they describe where theyre going to the public . Because the Unemployment Rate isnt working very well for them. They dont really have a firm answer right now. Thats a good point. Basically the bottom line theyre looking at a bunch of stuff. When Unemployment Rate gets down to 6. 5 they will look at things like people participating in the labor force. Ashley right. Economic growth. Payroll growth employment. The market might have to get used to a little bit of uncertainty when they will raise rates. Tracy yeah. Go ahead, lizzie. With the jobless rate. What is being called a nonbinding indicator. Meaning the fed is not bound to it. What jon is talking about is the Labor Force Participation rate. Tracy right. What is scary, in other words, dropouts. People dropping out, driving jobless rate down. Ashley right. What is scary, Goldman Sachs says this is structural problem. Bluecollar jobs are in collapse. Federal reserve act says, the Federal Reserve has to be about maximum employment. Not minute umm under employment, right . Ashley right. Going forward Goldman Sachs is saying 0. 2 continued decline in the Labor Force Participation rate you have got to wonder if the fed is looking at that too. Ashley doug, bring you in on that. What is a better Economic Indicator . The jobs is pretty bleak when you consider how people have given up looking for work all together. Make sure consumer strong. We had alltime record retail sales last week. Look at manufacturing. Manufacturing leveraged to the economy is very high. As elizabeth said, on the energy side, it is really helping with fracking, lowering cost of natural goose to manufacturing. Look at trade deficit. The trade deficit is arcane statistic that will drive markets topline gdp forward because the trade deficit is narrowing faster than anybody predicted on this Energy Fracking revolution. I believe gdp will be ratcheted up. The imf this morning raised their outlook for Global Growth to 3. 7. Just a couple months ago they lowered it to 3. 6. Now its back. So i think theres a lot of good signs out there. It is not all about unemployment. So those three things, consumer, manufacturing and corporate profits. Guys, if i could throw out one other idea, to get at this, ashley, youre pushing on this what is the best indicator. Ashley right. I think it is inflation and heres why. The fed wants to push the economy as far and as hard as it can without causing inflation. So you know as long as theyre seeing Inflation Numbers under their 2 target i think they feel comfortable continuing to push but if they see it starting to rise, then that becomes something that tells them, all right, maybe there is not as much slack in the economy as we thought and we have to pull back. I would really, really watch the cpi numbers and pce numbers very carefully next few months. Ashley good points. Tracy unfortunately we have to wrap this. I would love to know what you think will happen at end. Month. Doug cote, Jon Hilsenrath, lizzie mack, great story. Well see you all soon. Ashley appreciate it. That is last Liz Macdonalds appearance on 2 00 p. M. Show because she and all of us could be replaced by this, bugee the robot. Tracy lizzie wont carry her own coat. This actually is a good thing. Constantly makes me carry her jacket for her. Ashley coat and purchases. Do my laundry with it. It is better looking than me. Ashley no it is not. Were only kidding, lizzie. Come on. Tracy has trying do convince a court to lower its music royalty costs. Ahead in tech minute, whether the companys stock price depends on the ruling. Ashley return of the polar vortex. Youre looking long island, new york with our nations capitol. It is just as bad. Just the threat of snow there enough to shut down the federal government before the snow even got there does that speak to the work ethic of our leaders . Give us your answers. Well be live in the fox Weather Center with latest chilly details straight ahead. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. More than ever before, americas electricity is generated by it. Exnmobil uses advanced visualization and Drilling Technologies to produce natural gas. Powering our lives. While reducing emissions by up to 60 . Energy lives here ashley it is that time to make some money with charles payne. Gas and oil rallying thanks to yeah, this major winter storm that is pummeling east coast. Coming down pretty good. A time when it snowed like this natgas would really go up. These stocks are doing well. Cabot, i liked this a lot. I talked about it a lot last year. It is one of the stocks that look fantastic. Execution is great. They are mostly located in marcellus shale pennsylvania area. Top 20 wells in marcellus they had 15 of them. What i love how theyre executing. Their cost per drilling, in 2012 it was 325 per square foot. Coming into this year they got it all the way down to 228. Meantime natgas prices are starting to move up. The stock looks relatively cheap using most metrics at least peg ratio. Earnings estimates look sub alley higher. It will be a fantastic play. Ashley charles, you are producing natural gas in freezing cold . It doesnt feel like you can but of course every time natgas takes off becomes a little bit of a dry spot. I think nonstop war on coal, because my coal call has been completely wrong. Global demand because we have it so cheap n this particular case, they have have a bunch of pipelines that go into marcellus including the Appalachian Pipeline they expand now and 2017 might be a lesson for other pipelines people want to build. I think double top at 40 bucks. When it breaks out from there my target is 50 for 2014. Write it down. Tracy wow. Ashley as long as keeps snowing. If it does it might be 50 this week. [laughing] ashley charles, appreciate it. Thanks. Tracy it is quarter past. We have to get a check on markets. Nicole petallides on floor of the exchange, watching dow chemical. So is dan lobe watching dow chemical, tracy and ashley. Dan lobe of third point releasing its largest equity hold something actually dow chemical. That is more than a billion dollar investment. Also encouraging the company to make a spinoff. The slowgrowing petrochemical unit and go a la one of the other names, dupont. Well see whether or not they actually now adhere to those kinds of requests. Meantime, stocks is up about 6 , highest point weve seen in a year for dow come kel. Back to you. Tracy thanks, nicole. Well see you in a bit. White house revealing president obama will meet with the pope in march. Well have details ahead in your fox news minute. Ashley snowy white white house. The snow shutting down federal government. Does that speak to the work ethic of our lead officers first sign of a snowflake theyre out of there. Well have the very latest on the polar vortex. Well be right back. I boug a car, over and tells you, and youre like. A good deal not. Looking at truecar. Com. Theres no buyers remorse. Save time, save money, and never overpay. At is 19 minutes past the hour im lauren green with your fox news minute. And new fears today that the female Islamic Militant is already inside the heavily fortified security perimeter. Youre looking at a picture of her now. U. S. Military sources say there are plans to provide assistance in an evacuation is necessary. New Jersey Governor Chris Christie swearing in for his second term today. In his address he said lawmakers cant put political wins ahead of policy disagreements. Christie made no mention of the controversy surrounding him though. More than a dozen of his staffers are subpoenaed over a pair of political scandals. And president obama planning a trip to the vatican in march. It will be his first meeting with pope francis. The stop in vatican city is part of a larger european tour. The president will also visit the netherlands, belgium and other parts of italy. Those are your headlines. Back to ashley and tracy. Tracy lauren green, thank you very much. Sure. Tracy so it is polar vortex part two. Like a movie. 10 states have a winter storm watch in effect as frigid temperatures and know move across the eastern seaboard. Already over 3100 flights have been canceled. Were looking at misery map for those in front after tv. Lots of pain in chicago, new york and of course the nations capitol. For the latest on this path and accumulation is janice dean the weather machine in the fox weather studio. What the heck is going on. I feel like groundhog day. Every other week im telling you about this. D. C. , this is the difference between this storm and last one, d. C. Will get some measurable snowfall. You havent seen this much snow in three years. That is why the city is shut down. Up toward philadelphia and new york reporting heavy snow this area. There is our little map showing temperature and what is going on radar. Heavy snow for d. C. Heavy snow for philadelphia. Heavy know for new york all around here. This storm hasnt even even gotten its act together. Its a clipper system, fastmoving storm across the northeast. When it gets out in the atlantic we think it will bomb out, means strengthen across the ocean. Looking what well be dealing with really next 12 hours, even three a. M. On wednesday, we a r long island, coastal new jersey where you could get upwards of 14 inches as well as coastal massachusetts where we have a blizzard warning. Behind that, very cold air. Arctic air mass moving in with temperatures in the Single Digits and teens with windchills well below zero for many of the big cities. As i mentioned forecast snowfall totals eight to 12 around the new york city area. However long island upwards of 14 inches for you as well as coastal connecticut, massachusetts and cape cod and islands certainly and Central New Jersey as well, you could get in on the jackpot what we call it when we see the most amount of snow. Already seeing wind gusts in excess of 30 miles per hour. Lots of flights delayed, canceled. That will continue for the foreseeable future until tomorrow morning much windchills, it will be frigid, anywhere from minus 10 to minus 30 degrees. Well have all the snow, tracy, but our kids cant enjoy it because it will be too darn cold tracy again. It is groundhog day. This is exactly what happened the last time we had snow. They couldnt go out and play. I feel like bull murray over and over and over again. Tracy we have 67 days until spring. We should start counting. We are counting. Ashley one day at a time. Thank you, janice you. Got it. Ashley just the throat of snow this morning shut down the federal government in d. C. Does this speak to the work ethic of our fine leaders . Your tweets are at the bottom of your screen as we head to our brave rich edson, who himself gathered hupp his sled dogs this more thanking and mushed his way into work. Actually this morning there was no problem. There was no snow until the morning commute. It didnt come until after 9 00 this morning much were starting to see heavier stuff. Finally it is accumulating on the road here and the federal government has been closed. Another snow day if youre a nonessential worker for the federal government. Congress is basically autopilot right now. Theyre technically in session. You can go to the house floor if you want to makk a speech. Theyre not doing anything in congress. The white house mostly shut down. The Daily Briefing by press secretary jay carney been canceled. There was another event on the president s schedule. That has been canceled. D. C. Is basically shut down. We dont do well in this city. Before a few years ago the government, office of Personnel Management would give you the option of taking vacation days. It was known as liberal leave basically, if you had certain vacation hours you could take it if the weather is bad. The government now recently taken to canceling days. That is the turning point probably what we called commuteageddon here. The federal government caught a lot of heat for not canceling government work basically on a certain day. This snowstorm came in out of nowhere, 3 00, 4 00 in the afternoon. I personally was stuck in my car four 1 2 hours, going five miles on highways here. That event really stuck in the mind here. Theyre a lot quicker to call it a day which they have done here. D. C. Is a ghost town. Much of the white house is as well. Except for us. Back to you. Ashley except for rich edson and his glasses getting fogged up and snowed on. Rich, thank you very much. Tracy god bless him. We have a quick stock alert for you. Were watching shares of apple today after a federal Appeals Court temporarily blocked a monitor to make sure the tech giant complies with antitrust laws. This came after apple was found liable for conspiring to raise ebook prices. Separately Societe Generale down growedded apple to hold from buy ahead of companys Earnings Release coming out next monday. Apple up about 8. 8. 44. Ashley not bad. Ahead in next half hour of market news the robots are coming, the robots are coming. Theyre already here. There they are, coming down budgee the robot here in studio. Others are on their way. A robot by the way that carries your packages and more. Could be good for the wine bottles. Tracy i love that. They are calling it an nsaproof smartphone. Cofounder of a Company Behind it will join us next. Ashley plus premium tv channels like hbo losing business to netflix and other streamers. Dennis kneale will be here shortly with the business consequences and oh so much more. Watch out for budgee. Well be right back. [ me announcer ] this is the story of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the sry of where every great idea begins. And of those o believed they had the power to do more. Dell honored to be partf some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment cozy or cool . Meow or woof . Everything the way you want it. Until boom, its bedtime and your mattress a battleground of thwarted desire. Enter the sleep number bed. Designed to let couples sleep together in individualized comfort. Hes a softy his sleep numberetting is5. Youre the rock, at. And as your needs change er time you can adjust your bed to sleep better together. 48mth financing available through february 2 only at your local sleep mber store find your sleep number setting and know better sleep. My dad has aor afib. Brillation he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats why i take my warfarin every day. But looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctoif you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your beding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirinnsaids,er, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell your doctors about all medicines you take. Adaxa side effects include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. 90 minutes until the close looking at the dow 30, two thirds of dow component in the red as the exchange is down 51 points. One of those moving lower ibm, it is over here, keeps moving around. Ibm in talks to sell its low end server business to chinas leno group. It is down the one dollar and 0. 31 at 1. 88. Ibm due to report Fourth Quarter earnings after the bell today. We will see what impact at has. Nicole petallides at the Stock Exchange with another dow losers, j and j, johnson and johnson. Nicole it is a dow component, it is a loser today. If you are shareholders good news and bad news, the numbers for the latest quarter beat the street for those earnings pershare and revenue, stock is to the downside and is weighing on the Dow Jones Industrials about 11 negative dow points. Johnson and johnson down 2 and a lot of this is because of the outlook. The outlook concerns drug sales, not growth momentum that they see, will likely decelerate. It wont be the Growth Potential arc and so far. The areas that will do well, consumer products, medical devices and also some comments pertaining to obamacare and how that affects our numbers, not in a good way. Cheryl tomorrows Business Today imagine a smart phone that critics emails at Text Messages from hackers and snoopers and even the nsa. That actually may exist. Silent smirk and the hones out of spain created black phone and they say it is not hackable. Internet hall of famer bill zimmerman, cofounder and president of silent circle. Many people didnt know there was an internet hall of fame. Start by saying the most widely used email Encryption Software is your baby and that is why we are holding you on such a high pedestal. Tell us about black phone. I would like to say we never said it was nsa prove. We are trying to build a mobile phone, a smart phone that puts privacy first in this architecture. We think we have improved security on it better than any other smart phone and we are giving you the ability to make secure phone calls so nobody can wiretap your phone call. And secure Text Messages. We have ways of connecting to servers that are secure using virtual private networks. We have a lot of other things that protect your phone from malware so we are putting it all together and letting you do secure web browsing, putting it all together in one sort of tracy black package. So the phone is unlocked, is that right . That is right. Tracy messages are all encrypted. That prohibits using things like facebook and twitter . You are putting yourself out there with that stuff. We cant protect you from yourself if you really want to do that. People who use facebook often puts the patient but we cant stop you from doing that. Tracy do we know how much the phone is right now . We plan to price it competitive with other smart phones. It will be cheaper than an unlocked i phone 5, cheaper than comparable samsung phones. In the price range as other smart phones. Tracy any carrier will be the same thing, verizon or t mobile and you will all have it eventually. We made deals with four carriers around the world so far. We are talking with others. Tracy a big part of the phone is a system called private that is really what makes the phone as private as you can commit to without saying it is nsa proved . That is right. Is a variant of android and we have locked it down as much as we can given that we have to use existing hardware and existing android, we are kind of stuck with the limitations of what the industry is capable of producing but we will do a better job on focusing our priorities on privacy than anyone else. Tracy the nsa have to do their jobs. That doesnt bother me as much as preventing hackers from hacking my phone and stealing money from my bank account. How do you know they wont be one step ahead of whatever technology you now have available and pack into that . It is always an arms race. It is just a matter of cryptography, krypton pressers the bed ahead of the best script analysis but not just about cryptography but hackers breaking into your phone and if they break into your phone, they use cryptography to go around the cryptography. We think we can do about good job locking down the phone. Tracy fingers crossed. A lot of people will be loving that. Phil zimmermann, thanks for sharing your new project with us. So more of tomorrows Business Today, ideas come out of the World Economic forum and liz claman is live in dog votes dav davos. Keep it here on fox business for her interviews with all kinds of industry leaders. Ashley thank you. Time for your take minute. Pandora and music publisher in federal court to determine how much the on line radio giant should pay for the internet composition. Pandora is arguing it should not have to pay publishers and songwriters anymore than terrestrial radio broadcasters do which is 1. 7 of revenue. Pandora pays 4. 3 of its revenue. A ruling in pandoras favor could spell trouble for the biggest publishers who are already considering leaving the organization so they can negotiate directly with media services. Shares of pandora are up 232 in the last year. Today not so much, down 1 . Intel selling its online tv products to verizon for an undisclosed amount. Verizon will buy the intellectual Property Rights of cloud tv platform and offer 350 jobs to intel employees. The deal is expected to close in the First Quarter of the year subject to regulatory approval. This news comes as verizon reports Fourth Quarter earnings that beat the street. Telecom company posting profit of just over 5 billion compared to 4. 23 billion loss a year ago. Coming back to the table, Parent Company of travelocity has filed for an ipo of 100 million. The company was taken private in 2007 by silver lake and see fiji funds, 2,000 ideas than offs for American Airlines Parent Company a m r. Hope theyre keeping up with that. Travelocity competitors mixed today. Price line and orbits on web, expedia down 4 . Tracy the best. We have been talking about it. Take a look at the snow. New york city highway you are looking at. You cant see anything so you are not missing anything. It is noaa and gray and dark. 30 one hundred flights have been cancelled today thanks to the polar for tax part ii. Ashley speaking of cold how cool is this . Buffy the robot, multiplying, walking from the greenroom, this one is not to be missed i guarantee you. Already moving and taking over the studio. Sign of things to come. We will be right back. [ me announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. voseeker of the sublime. You can separate runway diculousness. From fashionhat flies off the shelves. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national isanked highest in car rental Customer Satisfaction by j. D. Power. natalie ooooh, i like your style. vo so do we, business pro. So do we. Go national. G i am joline kent with your fox business brief. Ip Healthcare Software company is part of g es efforts to expand its hospital operations, management business. Terms of the deal were not disclosed. A federal judge rejecting former mfglobal ceo jon corzines bid to dismiss the lawsuit which chlamys jon corzine played a key role in one of the barges bankruptcies in history, the 2009 bankruptcy left 1. 6 billion of Customer Funds missing. The International Monetary fund raising its forecast for the World Economy. The global Lending Organization says the economy is expected to grow by 3. 7 in 2014 up 0. One from its october yield and sees u. S. Growth this year will be 2. 8 of 0. 2 from its previous forecasts. That is the latest from the Fox Business Network giving you the power to prosper. Ashley it is being hailed as shopping companion of the future, a portable light weight robot that follows you around and carries all types of things created by five elements robotic, it is available for pre order and will be at your doorstep by december. It is very cool. Joining me is the company ceo and founder wendy thank you for being here. Lets get right to it. What can it do . Why is this something handy to have . He follows you around and carries your things. It is a simple concept but so useful. This is great for people in new york city, going from your apartment to the store or going to your workplace and carrying things around. Ashley do they travel well on the sidewalks . In the outdoor. You are holding the device that he will follow. And this is what they follow. He is in manual mode, both his eyes are listen so when we turn him on, once both lights start blinking he has caught the signal. He will maintain a distance of 50 centimeters that that is adjustable to your iphone or enjoy identify walked with egos backwards. Ashley like the tractor beam almost. Just follows you around. Ashley what is the biggest use for Something Like this . Shopping for mothers with small children. Tracy how much can he hold . Can i put a kid in there . He folds up so that if you want to put him in the trunk of your car he is under 20 pounds, easy to carry, has a handle back here for easy lifting. Can you show us how he folds . No. Ashley i got you. You debuted this, had a lot of interest that the Consumer Electronics show that was completed in las vegas. What reaction have you had and are you getting orders . It has been very positive. A lot of media coverage, over 100 online articles in tripoli, lot of online places and a lot of coverage on some of the news networks, bbc covered us. Tracy 1,400 and you were explaining, we are watching on the air now. Down to nothing. You were explaining earlier that you control it with your phone too. You can control it with an iphone, android. Tracy move it manually like a video game. Yes. Tracy if you could explain to everyone how it works together. With the sensor it is sonar. With the i phone or the ipad it is bluetooth, in manual mode you can drive it, turn it around, do whatever you wanted to do basically. Ashley do you have to be pretty tech savvy to have one of these . It is good for an elderly shopper, not sure this is only optional. You dont have to have it if you dont want to. It is very simple, it follows you around and carries your stuff. To turn him on all you do is touch his head and when you touch is head he lets you know. Ashley i do that too. And for this one what you will do is simply turn on once it starts ashley flashing. And point this chasing me lately. Come on, honey. Ashley how did you come up with thename . My son, always called my daughter that growing up. We thought it was a really cute name and what we are trying to come up with names for the robot, we wanted to get to the people when they saw the robot had heard the name, as they would be we thought a cute name would be good for a robot, not gary, wanted to be something that is almost like you have a household pet. Part of the family. Ashley we wish you success and we hope these will be arriving on doorsteps in the summer. Towards the end of the summer, roughly August September time frame. Ashley with five element robotic, a couple of them. Tracy it is quarter till, time for stocks. We headdto the floor of the Stock Exchange. Im sure keith blitz would love a little one in her home, on the floor it seems like everyone is in the snow. Still a lot of us here including myself and i will have to try the new jersey your. We have some activity going along. When you have a big earnings day like this people need to stick to the market, look at what is going on. As you noted throughout the day we are vacillating back and forth across the zero line so there are opportunities to trade in the market and as we digester Earnings Report after the close we will be here and taking care of business. Tracy are you listening to these reports . From the wall street journal, the fed will continue to keep tapering. Does anybody care . Or did they bake that in . We need to Pay Attention to what is happening with the fed. John l. Sinrap has been spot on for the last two years, it is the right move for the fed. The economy is getting back on its feet regardless where the Unemployment Rate may be, time to exit the program. Let the economy stand on its own two feet and see if that is the case with these Earnings Report. Tracy thanks so much, be careful getting home. Ashley watch out, hbo, netflix and other streaming Services Taking over your business. Dennis kneale ahead with the numbers that how you can play them. Tracy you wont believe how much someone is paying for this bottle of whiskey. With the we are going to tell you about it next. Dow down 40 points, dont go anywhere. Tracy every two decades dominated the pay tv business but look out, here come the online ears. Dennis kneale with the story. Dennis new numbers out from npd group show hbo and its paypal channel bret baier reached 32 of u. S. Homes combined, is down 6 Percentage Points from 30 in 2011 aad in the meantime online streamers including netflix, who lou, amazon prime gobbling up a bigger share of homes, their combined share of 4 points from 23 of homes to 27 currently so how big a victory is this for outfits like netflix . Netflix is in a dead heat against number one 8 channel hbo and number of subscriber homes but netflix turns 20 million in fullyear earnings, hbo 1. 5 billion in annual profits. One reason is netflix is so cheap, 8 a month after a one month trial, hbo charges 12 to 15 a month, and is on prime Service Offers free videos and at on when you pay 70 a year of unlimited shipping. The online is cheaper prices are a key factor for why they are gaining in households but the bigger threat may be more original hit shows, house of cards is as good as any network show, Second Season premieres on valentines day, all 13 episodes of binge city. And the other streamers over pay channels it is so on demand. No extra cost, hbo shows on demand, tablet or smart phone anywhere you want to be and any time you want to watch. One problem is Services Like hbo go and increased demand for on demand convenience of rivals contributing to their own you got to go. Tracy got to cannibalize yourself. Dennis kneale. Ashley this restore maybe hard to swallow. It cost more than your mortgage. Town whiskey set a world record for the most expensive with the sold at an auction. The fixed bottle of mccallum in a crystal went for 628,000 at sothebys auction in hong kong, over 100,000 more than expected, sold to an unidentified buyer, net sales proceeds will be donated to local charities and that is something we can raise a glass to. 628,000 for a bottle. Tracy they were actually expecting that. What did that take like . Really good many. 628,000. Tracy i hope so. Coming up on countdown to the closing bell activist investor dan lowe take an interest in dow chemical, strategic review, look at the investment record of what his involvement will mean to the chemical giant. We will be right back on this snowy day in the northeast. Dont go away. [ tires screech ] chewleys nds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. 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The s p 500 and nasdaq composite higher for the Dow Jones Industrial average, as we begin this hour by 48 points. A slew of new Earnings Reports, dow component Verizon Communication reporting 31. 1 billion in Fourth Quarter revenue up from 3 from the same quarter a year ago. Verizon adding a one. 7 million wireless subscribers, a large portion on new contracts for contact, a new deal to buy intel at stevie product and services. Shares of verizon i down better than expected by 1 full percentage point. As we told you at the start of the show