Transcripts For FBC Markets Now 20140124

We are watching foreign currencies. We are watching a show. It has come under pressure. The dow is down about 150 points. The s p 500 down 1. 1 . We continue to see the vix jumping. You continue to see the flight for safety for gold and the like. Also, the ten year treasury 3. 7 . Microsoft came out with their quarterly number. Profit on the rise. The stock has gotten several upgrades from many of the analysts. That is Something Else that we have been watching. Back to you. Connell thank you. Dagen at the fb i digging up 20 hacking cases over the last year that have the same fingerprints on them as target. Connell more of the same kind of attacks are on the way. The concern over the security overpayment card networks. Undetected for 19 days after black friday. That compromised personal information of 70 million customers. Dagen two separate breaches that we were talking about. Then, of course, we found out about neiman marcus. Sitting on the information about how many people were attacked. Now we know that the attack lasted for several months. Went undetected for those months, starting may be in the. 1. 1 billion credit and debit cards. Our fundamentals are good. Why the selloff . You say emerging markets, but weakness in the emerging markets, how does that not impact our economy and the market . It definitely does. What i like to think about is, yes, there is no dow not that it seems to be focused on a lot of the emerging markets. The key is, you got numbers out of europe in terms of the pmi. They were better than they have been since 2011. Things are frankly Getting Better and much of the devout mu developed world. In the end, i think, this will be an opportunity. Dagen how low can we go here . You know, unfortunately, you asked me the hardest question. We are three times over due for even a 5 pullback. You know, i will say i believe it saves something to the 5 range total. Stocks are not dirt cheap in the u. S. They are not really what i would say superexpensive. That leaves you with the opportunity of more volatility. In the end, the long game which is making sense to look to buy on pullbacks. Dagen they are not expensive here. Would you add to an allocation to those markets. We have kind of help that. We did it prematurely. Emerging markets being part of that. I kind of think about holding off a little bit. Typically, rising rates in the u. S. Do kind of bring this about where you uncover a lot of what buffett talked about, where the tide goes out, you find out who is swimming naked. I think i would be a little careful for right now. Dagen it is good to see you. Thank you very much, sir. Take care. Connell we have a brandnew study that is out. Contradicting the president s claims. Dagen ridge as it is all over it for us in washington. Rich the numbers say they are wrong. Upward mobility in recent years. A new study by the bureau of economic research. The study says the runs of the latter have grown further apart and equality has increased. One of the studys author says the results were unexpected. We looked at the extent to which kids moved up and down the economic ladder. What we found is the extent has not varied a whole lot of overtime. Charles it is the political priorities this year. The study says a child born on the lower fifth of the income ladder has about and 8. 5 of making it to the top. For those born in 1986, their chances were 9 . Back to you. Connell thank you. A whole type of mobility year. More than half is expected to be lost in taxes. These numbers were crunched by americans for tax reform. Over the seven year term, they are expected to pay out nearly 87 billion in federal, state and city taxes. No surprise exactly right. Dagen have fun. Such warm, loyal fans. Facebook tries to get smart with princeton. The university questions how may people will stop using the social network in the coming years. Connell one of the most memorable ads in history. Apple used these images to launch the back. Dagen congressman eric cantor tells you why he is there. [ 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 who believed they had thpower to do more. Dell is honored to be part of some of the worlds great stoes. That began much the same way ours did in a little dorm room 2713. This magic moment go [ male announcer ] its chaos out there. But the mclass sees in your blindpot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2014 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protecon. And because usaacommitment to serve current and former military meers andheir families is without equal. Bin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Connell we are back on markets now. Facebook trying to get smart with princeton. Reports showing facebook would lose 80 of its users over the course of the next three years and then died out like the flag. Google search queries. They found that printed would have no students by 2021. 5511 facebook shares. Dagen 2 is now 30 something. Apples first mac turns 30 years old today. 2500 back in 1994. Word processing was on that computer. Happy birthday mac. My life is better because we met. Today we salute everything you stand for. Here is a look at how apple has traded over the last year. Connell at the same time, it is not really that long. Lets talk about black berry, while we are at it. Shares of blackberry heading back down after a little pop this week. Nicole a pop and then a drop. That is exactly what we are talking about. They were not ordering new blackberries. Now, the department of defense is clarified that they are not ordering 85,000 new blackberry phones and they are using existing ones. That came out of a press release. When the news came out, that made blackberry pop. January has been a great month for black berry. Obviously, doing something right. To now find out that the department of defense is not ordering new black areas, that turns the story a round a little bit. Blackberry, the one thing that we should say is that they have high security. They are still used by the department of defense. No new orders. Back to you. Dagen thank you. Connell liz claman is ready to speak to the majority leader. Eric cantor. That is coming up. Dagen we have a chief executive on a company that lets you access your work data securely. Connell markets now. We have jeff flock with a pretty interesting report. This conservative filmmaker under indictment out. The documentary 2016 obamas america. That made it the secondmost popular political documentary that was ever made. Expected to be arrested here today in new york. Long rant for senate. Some trouble there. Dagen tomorrows business today. You could see your doctor without one of these. It will soon be a thing of the past. Handheld ultrasound machines will soon take their place. Some doctors are not ready to give them up. If you want to play doctor, it is probably a nice accessory. Nurses uniform and the stethoscope. Dagen i was going to make you guess what i was thinking. Connell fresh, squeezed juice is everywhere these days. Dagen designer juice is becoming a business. Americans are cleansing themselves. Jeff flock is live. Jeff you need to be as healthy as you can. We are talking about high end juices. Yes, we are. When you juice, you never can consume enough greens on a plate. Jeff green crazy people out there eating fruits and nuts. You are wrong. The chairman of starbucks wants to do the same essentially for juice that he has done for coffee. I see your team back there working. This takes a pot of doing. It takes a lot of raw material. Yes, it does. Jeff does one of the girls want to make some juice back there . We will show you what this looks like. Talking about the possibilities. I leave you with some stocks. Starbucks recently buying a major juice company. Whole foods, john but juices out there. Is this replicable on a big sale the cleanness juice you will ever get. You can do and extra one. 120 bottles a juice an hour. Jeff juice. Juicing. Not that Alex Rodriguez kind. Connell that is a whole another story. Dagen we were going through and confuse. Letting you plug into your Companys Network securely and easily. Connell liz claman is about to speak to eric cantor. Stay tuned for that. [ male 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. Of their type 2 diabetes with noninsulin victoza®. For a while, i took a pill to lower my blood sugar, but it didnt get me to my goal. So i asked my doctor about victoza®. He said victoza® is different than pills. Victoza® is proven to lower blood sugar and a1c. Its taken onceaday, any time, and comes in a pen. And the needle is thin. Victoza® is not for weight loss, but itay help you lose some weight. Victoza® is an injectable prescription medicine that may improve blood sugar in adultth typ2 diabetes when used with diet and exercise. It is not recommended as the first medication to treat diabetes and should not be used in people with type 1 diabetes or diabetic ketoacidosis. Victoza® has not been studied with mealtime insulin. Victoza® is not insulin. Do not take victoza® if you have a personal or Family History of medullary thyroid cancer, multiple endocrine neoplasia syndrome type 2, or if you are allergic to victoza® or any of its ingredients. Symptoms of a serious allergic reaction may include swelling of face, lips, tongue, or throat, fainting or dizziness, very rapid heartbeat, problems breathing or swallowing, severe rash or itching. Tell your doctor if you get a lump or swelling in your neck. Serious side effects may happen in people who ke victoza®, including inflammation of the pancreas pancreatitis , which may be fatal. Stop taking victoza® and call your doctor right away if you have signs of pancreatitis, such as severe pain that will not go away in your abdomen or from your abdomen to your back, with or without vomiting. Tell your doctor about all the e and if you have any medical conditions. Taking victoza® with a sulfonylurea or insulin may cause low blood sugar. The most common side effects are nausea, diarrhea, and headache. Some side effects can lead to dehydration, which may cause kidney problems. If your pill isnt giving you the control you need ask your doctor about noninsulin victoza®. It covered by most health plans. Connell day three of our coverage in switzerland. Dagen we have liz claman with a very special guest. Liz. Liz i have eric cantor who is leading the house delegation here. He has been meeting with world leaders. I need your comments. The markets have been a bit of a struggle today, yesterday. Nonetheless, the markets have done pretty well over the last year. I think overall, one would say both sides of the aisle should be concerned about working middleclass americans right now. We will go look this year to see what we can do to put in Place Solutions that have been nonexistent. We have to focus on job creation. We have to focus on upward mobility. Wages have not been increasing the way that they should. We believe a growing economy will allow for wages to increase. You have to be focused. These are the kinds of things that we will be focused on. I am hopeful that we can make some progress this year with the president. Liz what is different about this one . You really are focused very much on meeting with world leaders. We have a situation in ukraine. How serious is that . We will be focused on an american that were. Same internationally. I met with parliamentarians. They want americas voice to be heard because frankly they are being run over by a president in place right now that seems to be looking to Vladimir Putin for help versus been trying to go the freedom route. Liz the back story, the leadership has allowed itself to bb under the thumb of russia versus striking a deal with the europeans. Eric, the perception of the United States overseas, how is it now . I have been talking to a lot of ceos who say that there was happiness over the deal. The republican say our goal is to make america the best place to invest. The best place to create jobs. We believe that we have the solutions. If the white house in the president would just sit down and discuss how we can make it more conducive to grow our economy i mean, look at the solution to the keystone pipeline. The canadians are sitting here asking when in the world we will in fact get with it. We have such an advantage when it comes to energy. Why is the president standing in the way . I think longterm, eventually, the white house will realize, you know, what we are about is fixing the problem on the debt. We cannot keep spending and borrowing the way we are. That has been the frustration dealing with this white house. Liz is secretary luke correct when he says we may see another debt ceiling battle in early february. We would be in the territory, if you will, of the unknown. Somehow we would be in default. None of us want that to happen. We will hopefully have a cooperative white house. Lets work to grow this economy. You cannot even expect to get close to a balanced budget. Something has to change. Liz what do you say to some of your membership. Congressman boehner seem to be up here. The obamacare debate back in 2009 rob moms and grandmas and dad and others that had never been involved in politics before. Our system allows for that kind of robust debate. In the end, our government belongs to the people. Not the other way around. Liz we speak to a lot of ceos. A lot of them seem to be saying they just want to conduct business. Do you feel that you can work with those across the aisle this year . Yes. We have a skills act that we passed in the house. We need a white house that is committed to collaborating. Liz it is a pleasure to have you. A very busy day for all of the people here. Coming up in the next hour, we have pain capital. You have got to hear his story. Stay tuned. That is coming up in an hour. The market almost down 200 points right now. Nicole we have levels we have not seen since october. There are plenty of stories stocks to speak of. Qualcomm accumulating from hewlettpackard. The smart phone. That is an undisclosed amount. Hewlettpackard down 2. 5 . Both are stellar performers. We are seeing a lot of movement. Market currencies have been tumbling as well. Back to you. See three nicole, thank you. Cyber security seems to be on everybodys minds these days. More of us are using technology to either work from home, work after hours, secured telecommuting becomes a top priority for a lot of businesses. I want to talk to you about mobile. That seems to be the thing that would be worth talking about. Just the idea of telecommuting. Our companies being scared off . I think Many Companies today have to balance that concern. I think the demand is there. We have to find solutions that will protect us. Connell that makes sense. Let me talk to you about the mobile world. All of us have a phone. How do you those devices secure. Is it more difficult to make certain types of mobile devices than others . Certainly. You are really looking to protect your data. That really requires a strategy. If the phone becomes compromised, your data would be perfect it. When it comes to the various different kinds of devices, you know, we take it as the devices will be compromised on some level. As the cio, that is not a responsibility that you will necessarily outsource. When you choose to support more than one type of phone, you do not want to be the guy doing security testing against the operating system on every phone. Are those types of things changing with the various companies . It absolutely is changing. There was a preference for giving people a secured phone. We have seen that users take matters into their own hands. You have actually created the data leakage that you are trying to prevent in the first place. You have to do both. You have to give them a user experience. You have to protect and secure the data. Connell as we have established, this is an area that is growing very quickly. What are your plans . We will not comment on an ipo. Clearly, we are the leader in the space. Most of our customers take security very seriously. We are very excited that this is becoming a broader conversation. Connell we have done a million of these interviews. When a ceo does not want to answer, they just start laughing. We are very excited about the opportunity in front of us right now. Connell one game at a time. Thank you very much. Good luck with everything. Thank you for joining us. Thank you. Dagen how about some shrimp and mayonnaise in the snack aisle. Where . We will tell you. Connell rick snyder with an incredibly smart idea. Dagen treasuries. Talk about a flight to safety. There you have it. 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. Lori i am lori rothman with your fox business brief. Boeing knew at a new factor rate. The highest production rate ever. Pepsi announcing plans to invest 5 billion in mexico. It accounted for 35 of net revenue in 2012. Sacramento kings have bought a site for a downtown arena. This comes one year after the team narrowly loses seattle. That is the latest from the Fox Business Network. Giving you the power to prosper. 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 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. 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. Connell the governor of michigan and rick snyder wants to those over the next five years. We have to go to immigration person. You like this idea . I love the idea. It makes so much sense. The economy starts progressing. It makes too much sense. Sent in washington, d. C. Does not prevail. Connell one of the things about immigration, it is one story as opposed to a number of different stories. We want to make Everything Black and white opposed to everything gray in the middle. Why do you think that is . The Democratic Party is obsessed with citizenship. They are Holding Everything hostage. The economy is being held hostage to one single issue which does not make sense. Connell what is the political argument that would move the discussion forward . How do you convince people that that is the right way to go and you can still do with the other issues . How do you make the argument . The people would agree with it. If you told anyone in michigan, we bring in 50,000 immigrants and if they buy a house or employs a company that helps americans, we will let them stay here. It makes a lot of sense. The trouble is that the people. The trouble is the politicians. This is what stresses me. I have wrote a book about it. Everyone agrees with me. Common sense does not prevail. That is what is hurting this country. Connell it does make us less competitive. This is kind of leading into that. If we dont let them in here, they will go other places. You go to chile, for example. The whole economy is booming right now because of skilled immigrants. Canada. It is flourishing because of immigrants. We are really screwing up our own economy over this silly battle that we are fighting about asking for one thing and letting everyone else suffer. It is not right. Connell good talk. Thank you. We will talk again soon. Thanks again. Dagen i love living in the United States. This is one reason why a may want to move to japan. Shrimp and mayonnaise flavored snack chips. Or maybe read those, that is. It will only be available for a limited time. Until march 17. Wish i knew someone. Connell you would be all over that. Anyway. Chrysler is rolling out the first ever do so pickup truck. We will keep on top of the markets. We do have some individual stocks that are up. Here is a look at some of the winners at the nasdaq today. Dagen rams new diesel pickup truck expected to hit dealerships next month. This is not just chryslers first light duty diesel. When kerry came out here i went, what . Do you like it . It is great. It really is. Ram is going to go this way. They will put a diesel in there and see how that does. Dagen the market is therefore diesel. Yes. All the german brands, we saw a lot of models. Now we are seeing the american brand. They were figuring about 10 of the mix. That engine is now going into the ram. Diesel fuel is still more expensive than regular gasoline. Do you save more money . I was getting 28 miles per gallon on the highway. Using those numbers, an average driver will save 500 a year. You are talking about 1000 a year. Before talking about businesses that do not want to buy a commercial truck. They see opportunity here. For someone who toes the boat, you spend a lot of time on the highway, this is a great opportunity. Dagen pretty awesome. I cannot wait to talk about the ford f150. People are worried that they are going to mess it up. Do you think that they will . Drive safely. Connell a mess on 78. More on that as the dow is on track for its worst week. Dagen an fbi warning to retailers. You could get hit just like target. Dennis and cheryl are next. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwaere here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 180052550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. Our goal is to make america the best place to invest and create jobs, best place to leave and we believe we will have the solution. Cheryl eric cantor, one of the global power players in davos, switzerland, i am Cheryl Casone with Dennis Kneale taking you through the next hour of markets now. This hour from davos we heard from one bank of America Executive his after five years ofs and downs his bank is back. We are looking at the friday pressure, one market insider tells us why he believes the easy money days are over and the fbi warning tie thats credit card reaches only the beginning, we look how what is happening at retailers could be part of a bigger threat to the u. S. Economy. All this and more in the next hour of markets now. We are looking at a selloff once again, the question is is this the corrections so many analysts are predicting on the show and telling us it is on its way. Dennis or merely consolidation where we regroup bbfore you head back up, that is the key test. Cheryl lets bring in Nicole Petallides on the floor of the Stock Exchange. Global worries driving u. S. Markets to its worst week in eight month for the dow. Nicole that is right and we are down over 1 on each of the major three averages we followed so closely, the dow, the nasdaq and the s p are down 1 today, down for the week, down for the month which would now be the new year, 2014. This months january is shaping up to be at down arrow at the moment, and we are facing some losses since last august so investors on wall street are not used to so many down arrows so traders on wall street think a pullback is healthy, and refreshing but at the same time when you worry about global worries, that is not refreshing at all. That becomes worrisome. You see people flocking to safety, utilities, telecom, they act like a bonds because they have high yields. 2. 73 on the ten year. Theres a lot of action on wall street and one of those days, the best bet. Dennis correction or consolidation . Stocks in turmoil, could be the start of the correction did take stocks down 10 . Darrell sees consolidation. The c i o of the northeast region, thanks for being with us, this is making me nervous, two triple digit dodges in the dow two days in a row. Sparked by china and the data yesterday, weaker currency today, we have needed a little bit of this, if you go back to the last two weeks of december the santa claus rally diaz and people on 3. 8 . The last two ekes of the year taking a lot of that back and i agree with Nicole Petallides this is the pause that refresheses and we encourage investors to use this as opportunities they dont have the right exposure, equity markets the great opportunity. Dennis the last few days, the with of possibility of years in the developing worlds, headlines on bad week currencies in turkey and brazil and russia none of which has anything to do with the cost of eggs in the u. S. And yet what are the chances some traders worry there is a contagion that starts with these wild market . P we always knew correctionsf this were to be one start with a catalyst that is not foreseen, maybe china. When i look at china i would say china is in the process of moving from this export leverage based economy to a consumption reform based economy. Dennis they can afford to buy stuff themselves. Doesnt come up with some hiccups and bumps along the way and that spilled through emergingmarket currencies, what you are seeing is highyield highly leveraged economy so it makes sense when capital flight happens, many of the emerging markets the currencies that sucker the most will be the emerging market highyield currencies. Dennis i had local currency. The turkey lira, the russian ruble, South African rand, and under pressure today, because of the capital dennis i remember in the 90s asian contagion, the tiniest little flicker in thailand that started this big selloff, talk about a big jolt can lead to a big correction and a big selloff. If something went wrong in brazil or turkey, is wall street institutions, are they hedged, already thinking about this . I dont know they are fully hedged. If you look at the data, the amount of money, the margin on the nyse is up in absolute dollar amounts setting record levels. And squaring of those positions but against the Economic Data when you look at the u. S. Japan, china, the entire globe from an economic standpoint is accelerating, not decelerating so any correction would be something where you would use that dennis to buy a little more. That takes a lot of faith because when fear rises it is hardest have that faith yet you have got to hang in there. This will hope things get better, not worse so you have a china slowed down. 7. 7 gdp growth we would kill for half of that but also better growth in the u. S. Fourth quarter was close to 4 , and everything okay. If the u. S. Gets better is and that really good for the developed world and might worry about this because we can buy more of their stuff . Absolutely. People forget when you look at the u. S. Economy as a percentage of Global Growth between 20 and 25 gdp on a world scale but the reality is when you look at the Security Market 50 of the world Security Markets i u. S. Dollar denominated had foreshadowed by the u. S. Dollar so the point is an acceleration in u. S. Growth plays bigger on the global stage and Global Growth and the 20 gdp. Dennis overall i just inherited a new 100,000 from some granma. We are going to wrap it up. Thank you, take care. As the fed has begun to take investors put more emphasis on corporate earnings and Economic Data and with the dow down for the second straight day triple digits facing the big large selloff for 2014. Peter barnes joins us from d. C. Peter on december 17th and the day before the fed announced a bring billion dollars a month in quantitative easing bond purchases investment manager Kelly Campbell came on fox business and said watch out. Q e 1 ended and went down 11 . Q e 2 ended and went down 14 , what we expecting now . Could be along the same lines. Immediate Market Reaction to the taper announcement was no problem. The dow higher through the end of the year ending 16,000, but in the new year, it seems the dawn on investors, the fed is serious about slowly ending five years of stimulus for the economy. Market based on fundamentals, not on easy money became investors focus recently and now corporate earnings matter as to the fundamentals of foreign economies. We brought Kelly Campbell back in this morning. We are not getting Positive Side earnings surprises we got in the last few quarters, now companies are saying we are hitting earnings but not going well above earnings and what that means is you cant just get in the index and think you will do well. Campbell says it is time to get more selective about stocks, sectors and Asset Classes and the fed meets again next weekend is expected to continue to taper. Dennis thanks very much, peter barnes. Cheryl the fbi is warning retailers to prepare for more cyberattacks. It is holiday date a breach, worse than previously thought. Involving 1. 1 million credit and debit cards but retail hack attack may only be the beginning. For more lets bring in kevin freeman, author of the book game plan and a former assistant secretary of defense at the heritage foundation. Welcome to both of you. You say the Technology Used against target has been used against the stock market and government. That is correct. 53 of the worlds markets have been hacked in the past several years. There is a directed, focused effort to bring down the Financial System of the world, cyber espionage. Dagen do you think this is a growing threat . Something we are not talking about enough . It is very much a growing threat. People like getting more and more capable and the infrastructure we used to protect these things everything from the swiped machines to the Larger Networks are falling behind in their capabilities. Cheryl one of the things you talk about in your latest book is because we had no more paper trading and markets, other governments around the world, terrorist groups as well could indeed take down the u. S. Economy and could push the dollar down and that is their goal. Can you explain that please . General Keith Alexander recently said in a statement there is no doubt that foreign governments and foreign governments have the ability of terrorist groups, could bring down our Financial System if they made every effort to do it. Our dollars at risk, we are in a Global Economic war. That is the bottom line and other nations see our preeminent position in the world economy, they know they cant beat us militarily so the way to beat as is cyber or economic. Cheryl we have the bank scandal hitting in the u. S. Dont we do the same thing to other governments . Is it possible u. S. Government is trying to manipulate other currencies the glass you this on a day when we have global currencies recalling. The nsa scandal brings an interesting points showing the vulnerability from governments and number 2, it shows the vulnerability to rogue employees like ed snowden as a contractor, all secrets are eligible. As for the United States we have conducted Economic Warfare in the past, that is documented as mentioned in my book and i covered and it is waged against us but most americans are unaware of the economic war so i wrote the book to help learn how to protect themselves. Cheryl why do you think this hasnt happened . The assumption that the point this is happening and we need to be worried about why hasnt this happened already . We are an open target when it comes to cyberattacks . It is happening every day but mostly in terms of people stealing intellectual property, stealing our money, stealing our identities, no one at this point has a vested interest in collapsing the system because we are all tied together. That doesnt mean no one will ever do that. Doesnt mean they are not putting things in place so that they could do it in the future and in answer to your question about are we doing it we may be looking at other currencies and things but we are not stealing other peoples intellectual property mostly because all the good stuff is on our systems. Cheryl if you look at where we are in the world today, one of the ten financial exchanges, dont have any protections in place, is that how a terrorist group or a nation that wants to see the dollar fall like china, like russia, is that how they infiltrated the u. S. Economic system like our exchanges . Our exchanges are one way and in fact there is some movie out there based on the tom clancy character that shows that but the reality is we are so interconnected global the and right now to date everyone has incentive to keep the dollar strong but that is changing over time. They can have cyber as force multiplier when they are dumping bonds and stopping using the dollar for trade and oil, multiple vulnerabilities, cyber is one of them. Cheryl governor tom ridge use to run homeland security, back in august the day after the flash crash, we were discussing this and is the administration doing enough . He said absolutely not. That was in august. It is january. Is the situation still the same . It pretty much is the same. The Financial Sector is one of the best sectors for critical infrastructure. As far as cybersecurity is still very vulnerable. This administration has spent a lot of time giving briefings, making pronouncements but not a lot of effort or time fixing things. Cheryl thank you very much for being here on a fascinating topic, we appreciate your time. Thanks for having me. Dennis market sell off this friday, the dow back to the 16,000 level and a live update coming from the Stock Exchange next. Cheryl you dont have to be an insider to get in on an ipo anymore. We will tell you about that coming got but this hour we are showing you nominees for record of the year, the grammys of this weekend. Take a listen. Dennis take a lunch. Cheryl continuing to follow the market selloff, the dow down 180 points and the biggest drag on the dow general electric. Want to show you the impact on the dow, four points. This is a broader selloff, most of the names we cover here are in the red so we are following a lot of things and some of the sectors we are watching, volatility is very high, continuing to watch the Financial Sector, all those earnings and a lot of news has been crossing with regard to the banks, and we watch jpmorgan chase, big news with jamie dimon, getting a raise this year, they have a kind of salary in half in 2013. We will give you those numbers and want to show you major markets, the dow and the nasdaq and the s p, worst week we have seen for the dow in several months. Lets bring in Nicole Petallides for contacts, and focus on the other side of this in the middle of a selloff look at apple which as a stock has been performing fairly strong and they got some big news today. Interesting to look at apple. Apple has been a winner over 52 weeks, today it is down 1 2 at 55254, they are set to launch larger screen iphone later this year. The i phone 3, 4, 5 were not enough, a lot of shareholders have been waiting for more innovation from apple, they hope to get its and when you hear about a large iphone this is it, carl icahn has been backing apple at least in part with his moneysaving he added 500 million worth and another 500 million worth so he is up to 3. 6 billion in investment and continued to add buybacks for shareholder value. Right now it is 55251 for apple. The annual high is 575 with was reached in early december. The alltime high is 700 so we will see if we get to that point also. Cheryl see you at the bottom of the hour. Dennis bad weather causing turbulence for air travelers. Data co. Mass flights says 33,000 flights have been canceled so far just this month because of winter storms more than double the cancellations seen in january of 2013, january of 2012 combined but despite this massive travel hate investors can read easily, Flight Cancellations are not expected to Impact Airline profits with savings on jet fuel and salaries making up for losses in revenue. And they got to travel in the next day or the day after. Cheryl a new report is contradicting the president s claim that it is harder for the court to rise up. We go to washington with details on that. Dennis getting in on the ground for not just for the elite any more. Loyal iii. Heres another one. Grammies record of the year. [ 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. That began much the same w ours did. In a little dorm room 2713. This magic moment this magic moment anbe a name and not a number . R scotade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. 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 number setting is 35. Youre the rock, at. And as your needs change er time you can adjust your bed to sleep better together. 48month financing available through february 2 only at your local sleep mber store. Find your sleep number setting and know better sleep. Cheryl liz claman bringing us the best in global business, spoke with a man who runs one of the most profitable divisions of bank of America Merrill lynch and he says after five years abouts and downs his company is back. An indication of five years since the merger, first time the we have been able to make that statement, the quality of the platform, the quality of people and consistency with clients. Can you tell here in davos this year that you got a little more juice, more gas to mix metaphors, you guys are successful, taking in more meeting and more in demand . The attention, the success of the company having a bigger effect. Not surprisingly if you go back three or four years a lot of topics being discussed, all about the success of the business. Cheryl later on today. Dennis bank of america back from the debt of 20 in four months, wheres it going next . Wall street in love with the company. The stock is hot, wall street, will buy traditional valuation metrics, i would not talk him out of bed and below 16, having said that, there is the other side of the story that bothers me, bank of america, of the countty, i am looking at last quarter, the loans outstanding were hardly up at all and deposits up 1. 3 , employees actually went down over the last year, a total amount of employees go down, First Mortgages are down year over year. This despite the fact provision for loan losses dropped dramatically. And 500 million less provisions for loan losses. And you have two stories here, and banking sector, and to mirror the proxy for this they are not there. Cheryl look at the Financial Sector they are dealing with regulation and ball. Imus in the morning for the fed comes out with this survey at the top, loan officers, getting a little better, and up to the point they start making a lot of loans. I find that hard to believe. Having said that, they are in a position to make money continue to clean up their Balance Sheet and have a win win situation if you get my drift. I hope the next time there is a problem, and they can bail them out. Dennis ideas no longer the exclusive realm of the swells. The rest of us can get an idea opening price. That is coming up. Cheryl new fraud claims and accusations the company is preying on california immigrants in the west coast minute. And the best record of the year, sundays grammy. Is that one company letting every day investors, gasoline prices head higher. Malcolm to am japanese pitchers new tax bill could have him rethinking the. Dennis Nicole Petallides, a lot of freddie cats out there. We have a few movers that are worth speaking about. It turns out because theyre a good profits, stocks are up 2 and that is a winner and they raise their guidance Going Forward up 30 in the last 52 weeks. And china actual wheat accounts for a third of the global sales this year, interesting move, this profit doubled so kimberlyclark looking good 2. 8 . And some winners here, jpmorgan, jamie dimon gets an upgrade, 74 pay raise, 20 million from 11. 5, and we see that as a winner. Cheryl a new study contradicting president obamas claim that it is harder for the score to rise up the economic ladder. Rich edson is on this tour joining us from washington. Rich americans of moving up and down the economic greater at the same rate the past few decades, quote, we find all the rank based measures of intergenerational mobility have not changed significantly over time. Of probability that a child reaches the top fifth of Income Distribution given parents on the bottom fifth is 8. 4 for children born in 1971 compared with 9. 5 for those born in 1986 and one of the studiess authors says the effect of government initiatives is unknown. There has been an expansion of various social programs over the past 25 years and the big question is the extent to which those programs have been helping counteract an otherwise declining mobility that both those programs dont work. Incoming quality and ability are the big qualities is youre pushing issues like higher minimum wage and a better picture of the president s 2014 agenda tuesday when he delivers his annual state of the union. Cheryl rich edson in washington. Thank you. Dennis ipos for everybody. Used to be a wall street fat cats to get on the ground floor but one company is looking to change that, helping ordinary investors and first timers to buy at the offering price and the ceo Perry Schneider joins us, thanks for being with us. You guys are out of the quiet period on the amc theater idea which you had a hand in. What do you think was going on with what you are trying to pull off. It is a great example of our desire to democratize the markets and make it easy and affordable for everyone to invest in the brands they love and that includes audios at the same price, same time as wall street, first time ever. Dennis lets talk about fans, a chart made up for us, the amc stock offering, turns out the ideal flips the stock over in a single day, 98 of the buyers at your web site did not sell on the first day, 93 held, amc after a month, alleging actually bought more. Going back to the old days of loyal fans and investing. Back to the future and she did this because they care about multi members, they care about their employees and so they made their Stock Available to our platform and look what happens. People show more of finnerty, more care and hold on to the stock. It makes sense for the company and the individual. Dennis you were telling me studies show when a fan that is how dell created millionaires, people used the computer and bought the stock, reebok did the same thing. When a fan buys a stock and the company does trouble instead of selling the wall street does the fan often buys more. Absolutely. I asked a question. Why should the everyday person be locked out of ideas . Why should they be locked out of the market which they are from an Economic Perspective . Our platform makes it easy for them and free for them and allows them to invest as little as 100 in ideas. Dennis a couple tweets from the latest movie fans who were able to buy their firstever shares of stocks. In addition to simply letting a regular investor get in at the ipo price, they are able to open investing to lower income people who never would otherwise be allowed under old sec rules and they are able to get in for 100 on your site and to buy stock for the first time in their lives. New Capital Formation but more than that, you are delivering on american principle of a level playing field. Why should the person that has 1 million sitting in a bank account have the ability to invest in ipos and the person who is going to invest 100 or 500 not to. Dennis you have done three ibms in 20 months. You and i met a year ago and i was excited that you had 400,000 shares at amc, 18 million, this is 2 presents liver. When will we see the idea of the fan and the newcomer that percentage go up . I hope very soon. We are getting a lot of traction, companies are seeing this make a lot of sense to me. We are working with big banks on wall street, we are very supportive, complementary and augmenting what they do. Our plans are ubiquitous. Which is redundant. Dennis thanks for being with us today. Good luck in your efforts to make ipo investing available to far more regular guys out there. We appreciate it, larry schneider. Cheryl time for west coast minute, the attorney general meeting with a coalition of herbal life critics who contend the company praise on povertystricken immigrant. The lead of latin american citizens says that proves the company is defrauding hundreds of thousands if not millions across the nation of people with corporate structure. Look at the stock, and herbal life behindthescenes of the company. And the Sacramento Kings have decided on a site to build a new arena making a deal to buy downtown plaza. 448 million arena site include office towers, hotel, housing and retail shops, some time in 2016 and check out this awesome video from hawaiis big island. Lot spewing 32 feet from one of the most active volcanoes in the world, is erecting a, has been erupting since 1983 off and on but this level of activity hasnt been seen this close, and that is your west coast minute. Dennis the new Justin Bieber, the story of his d y arrest not only on every tv network but subject of a primetime special tonight. Cheryl we are heading back to davos, liz claman sitting down with bain capitals, owner of the boston celticc. First, the best records on sundays grammys. [ tires screech ] [ 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 through february 28th. 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. We new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Tracy tracy byrnes with your fox business brief, Union Membership is at its lowest level since the 1930s, Union Members make up 11. 3 of the workforce in 2013, same as the previous year. It remained at 14. 5 million members. Belling is rolling out its dreamliner built at a new faster pace through 10 planes a month, the highest production rate for the one ill airplane up, and procter and gamble reporting Second Quarter earnings. And boosting a profit of the 1. 18 per share missing the estimate by 0. 02. Sales of emergingmarket debt 8 . Cutting costs to 10 billion by fiscal 2016. That is the latest from the Fox Business Network giving you the power to prosper. Let cheryl private equity snapping up companies and discount prices and a hit its lowest level in eight years as the economy improves will there be a rush or slow down in buyouts as prices get more expensive . Liz claman found a perfect person in davos, switzerland at the World Economic forum. The managing director of bain capital, pioneered the private equity Fund Approach with 65 billion in assets under management, what they searching for . Can they find anything with their relationships in davos . I want to point out to our viewers the coat you are wearing is accompany you bought as well. We made investment in canada do summoned to go. My partner runs the retail firm at the term, senior partner and it is a wonderful company, first time i have been warm in davos for eight years. And we are excited about it. Cheryl davos is a busy time, you said you havent got any sleep because youre constantly doing meeting that events. The world has become globalized and this is a place where leaders from government, business, nonprofits, social organizations, Internet Companies get together in one place. It is tiring but he efficient. Liz have you identify any opportunities since you have been here . If you go back three four years the discussion was euphoria in the emerging markets and that has turned around. Theres more of a sense the developing markets have gotten through the crisis, the economy of the United States is doing well, oil and gas boom driven the economy up. There is a shift back to looking at properties in the developed markets. Liz you call the oil and gas boom the salvation of the United States. We have seen more permitting, more action, but if prices fall and theres a glut dont you worry that might end up working the reverse . Energy is such a huge factor, low energy costs are the better off as consumers as a competitive advantage. Cheryl great for the consumer, the companies that are trying to distract and produce it, we did know there was supply and demand. It is good for the economy. Cheryl what is performing best for you guys now . We are performing well across the board. Gerri you look and say thank goodness we got that . The healthcare practice is fantastic and grow the retail practices. And vertical markets, can you transform them . We dont adjust build a model, transform and go to number 3 or no. One . How do you grow . Private equity is about growth for investors and build Great Companies . Liz you are coowner of the boston celtics. Talk about the return you have seen since you first bought it how many years ago . 12 years ago. Liz what are you at . It was never about the money, it was championship to boston. The boston globe says venture capitalist record price for a team. They survive the team. Values are going up. It is must see tv. The partner, the ceo, back on a championship. The fans came back, supporters for 12 years, we got a young team now, rebuilding but fun to watch. Liz we are in a rebuilding stage. If you are lost are you where you wanted to be . We have 7 directors over the next 12 years and come off of the championship and all the players and a exciting Young Players and our fans appreciate that and that is how you build a championship team. Liz celtics and boston are far from here. We talk to ceos and Business Leaders and ask about their lodging experience, a lot different from for example the Fourth Season in boston. It is very rustic. I said can i get a wakeup call for 6 00 and the gentleman at the desk said no. No wakeup call . I said why . He said there are no phones in the room. Everybody has cellphones. Inexperience and. It is nice and rustic, it engenders a Community Feeling where everybody can talk to each other. Liz the managing director of bain capital, great to have you. Please come back again. We will send it back to you in new york. Dennis one of the biggest headlines out of davos is bill gatess claim there will be almost no poor countries by 2035 and u. S. Television exclusive, liz asks the matters of founder how this could be possible. When i was when you were in a rich country or poor country and nothing in the middle. Now whether it is china, brazil, mexico, most people live in middleincome countries and if we dedicate ourselves to helping out the ones that are still low income, that means generosity and looking at that, we should be down to very few, less than 10. Dennis dont miss the full exclusive interview at 3 00 eastern on countdown to the closing bell. And commuters beware, gas prices set to rise in the next month but by the end of the year you could be saving some pennies once again. Lets get to the trading pits of the cme, phil flynn, use that high gas prices were on their way and you are right about that. Phil forget gasoline prices, shortterm they go down, the longterm picture for gas is looking good but today it is about winter chills giving traders, a heating oil, natural gas on fire once again, longterm forecasts continuing to stay cold, natural gas hit 5 for the First Time Since 2010. Gasoline prices are creeping back up, oil prices down. Between those two but the cold temperatures are speaking volumes in the trading pits, heating oil and natural gas. Dennis thank you, phil flynn. Friday media minute, Justin Bieber air, this is news . And 19yearold man child had house and busted for driving 60 miles an hour. That is enough to prompt a primetime special tonight on the no. 3 Cable News Network cnn. Justin biebers wild ride airs at 10 00 eastern. Of feeding frenzy by albion the notion that he may be the nick Lindsay Lohan and they mean that as a bad thing. Cnn was a saudi standard of hard news, the prime time Justin Bieber an hour and new moves as it tried to stand out of a crowded news base, 30 years ago this month working on the next one. 30 years ago this month one of the most famous tv ad of all time aired in the superbowl. Apples at for mackintosh pictured ibm as big brother, ibm, better applies to google. Or apple itself. We are one people. Gerri that was your media minute. Coming up uncle sam taking his cuts. Been a good deal with the yankees and it is a big one. We will crunch the numbers for you coming up next. Dennis another player for record of the year for the grammys on sunday night. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That rectly gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trer app. From td ameritrad voseeker of the sublime. Ro. 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 e sle. 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. Cheryl time to have more clarity into what goes into the food we eat. After 20 years the fda nutrition level on all packaged food is getting a little bit of a makeover. The labeling was developed a societal focus was very much on the fads that were in we each. Today our diets have shifted dramatically towards calorie count, portion size comeback added sugar and whole wheat percentage. The fda wishes to cater to these trends, and a new label should more clearly state these new numbers to look out for so we can all do that. Dennis Masahiro Tanaka will be unlucky to see even half of the 155 Million Contract to new york yankees gave him yesterday because more than half is expected to be lost in taxes. According to americans for tax reform. Thank you, n. Y. Over the 7 year term of the contract Masahiro Tanaka is expected to pay out 87 million in federal, state and city taxes. Cheryl should have gone to the rangers. We have grammies coming up sunday, big news. In the next hour adam and lori will go behind the music and have an interview with the marketing geniuses who call katy perry, mary j. Oblige and taylor swift clients making the cut on fords 30 under 30 list. Dennis superdeals on the super bowl. Next our travel zoo around this year outlandish prices to help you save big. [ 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 who believed they had thpower to do more. Dell is honod 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 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 diversity of Energy Sources helps ensure the electricity we need is reliable. Take the energy quiz. Energy lives here. But with less ergy, moodiness, i had to do something. I saw mdoctor. A blood test showed it was low testosterone, not age. We talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected sis of puberty in children or changes in body hair or incased acne in women may occur. Report these symptoms your doctor. Tell your doctorbout all medical conditions and medications. Serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Adam we have some breaking news for you. The dow is hovering right at the 16,000 mark. Hello, again. I am adam shapiro. Lori i am lori rothman. The dow on track for the biggest two day drop since june. Adam too much money and nowhere to put it. Lori the marketing geniuses behind big names. They are just 30 years old. Adam the cost of getting to the superbowl. Travel zoo says there are still deals to be had. Lori letssget you updated on the markets. The dow is on track to the worst week in a month. Briefly dropping below 16,000. It is not to say that it wont or cannot happen. We drop below 16,000. Our lowest point was 15,982. The dow is down 2. 7 . It is a tough week. You see the numbers fluctuating. Using gold and utilities and telecom and volatility. The highest level in more than three months. Right now it is at 1615