Transcripts For FBC Countdown To The Closing Bell 20130528 :

Transcripts For FBC Countdown To The Closing Bell 20130528



so far, no reports of injuries. that is good news. police are on the scene. the cause is unknown. trains have been the targets in certain cases, but they also needed quite a bit of renovation on the tracks. as soon as they get any information as to what happened, we will let you know. that is a live picture outside of baltimore. we will bring you more in a moment. the fire is burning right now. it appears to be slightly out of control. as we mentioned, all of the firefighters are on the scene. more crews heading to the scene. asssoon as we get more developments, we will get them to you. the markets have given investors a chance to recharge their batteries. the markets were off and running at the open. we have big u.s. major indexes up right now. of more than 200 points on the dow earlier. the nasdaq up 24 points. whatever minor pullbacks we saw on friday, i am telling you, those buying opportunities are in the rearview mirror. consumer confidence along with u.s. home prices. they tend to be pretty tightly correlated together. they jumped to their highest level in seven years. good pieces of data helped the markets early this morning. moonies raising its outlook on u.s. banks for the first time in five years. we know the track record of the rating agencies. at one point, we mentioned the dow was up 218 points. there appears to be a bit of trimming in the last two hours. let's get right to the floor show. we have nicole petallides on the floor of the nyse. >> the market is still incredibly resilient. we had a pullback from arlier highs. the market has been a little choppy just in the last few days. we have not really seen any sign of deterioration. it does not pay to worry too much about this volatility. the treasury yields, looking at the ten and 30 year, they have seen big moves to the upside. probably one of the more meaningful, technical development. liz: meaningful? >> a lot of the defense sectors are now lakers. we are seeing this flight out of a lot of big yield groups. liz: gary, i have peered over margin newton shoulders many a day, he has many stocks that he looks up. you look also at fundamental funds. we have those great pieces of data out today. >> we heard from japan and we heard from the euro central bank that their version of the quantitative easing -- when the u.s. market opened, we were already up and running. one of the areas that we did not release the pullback, because they normally oppose each other, gold. we are staying in the 1380 range. a lot of people looking for it to pop. it did not happen. it is holding still. europe and japan, this morning, really got things off to a fine start. do not forget, thursday we have the gdp quarterly report. that will be a very key number to look at. liz: gdp quarterly report. we will watch for that. let me get to john woods. we have a very strong dollar today. nearly every currency stronger against the u.s. dollar. that does not bode well for crude oil. tell me what you are seeing? >> we are at the top end of our range. you have a market, you know, all markets in general are searching for something positive to continue our rally. we are looking at a top right now. you will see a nice correction at the end of the week. essentially, we found a nice six dollar trading range in our market right now. you have some good news coming. you have a lot of economic casualties. all of these people out of work. they have to come back in to support this economy. liz: i actually watched it. how can you not love it? netflix. two stocks moving in different directions today. nicole: tiffany and company up 4% right now. you mentioned "the great gatsby." they are making a lot of jewels, ruffle cause of that era. it is no joke. valentine's day was good news for tiffany. it was their 175th anniversary. on the other side of the coin, we have netflix which is under some pressure today. it is down about 6%. the idea here is that it is supposed to be good news. liz: i saw those tiffany jewels. a little expensive. i would like to know their sales on the tiffany jewels when it comes to "the great gatsby." meanwhile, no rest for the wall street crimefighters. federal prosecutors making a major announcement this afternoon saying they will shut down a major digital company. one of the biggest money laundering companies ever. >> prosecutors here in the united states and also overseas are calling this the largest international money laundering case ever. it involves 17 companies. the u.s. attorney in manhattan made a comment just moments ago about this case. it involves much more than money laundering. take a listen. >> they deliberately operated in a way to attract and aid terminals to break the law and launder the proceeds of their crimes. serious crimes including credit card fraud, identity theft, investment fraud, computer hacking, child born under the. >> it is being called the bank of choice for the criminal underworld. the gentleman then moved to coaster recut. this is now an international operation. he set up shop in coaster recut launching liberty reserve. it involves 17companies. we have forty-five bank accounts seized in this case. the largest was situated in cyprus. twenty-two accounts in cyprus. we will be watching this developing story as it unfolds and bring you the latest details. back to you. liz: fascinating. we want to show you the picture, once again, near baltimore we have a trained derailment. it has caught fire. it derailed just after 2:00 p.m. eastern time. we do have many different emergency workers on the scene. as we look at what is going on here, the cause of the accident is unknown at the moment. to the left was a bigger, sort of fire that had broken out. at the moment, we are watching this closely, carefully. we will get any details as they come available. closing bell ringing in 49 minutes. several major banks flashing their 2013 outlook for precious metals. you decide if now is the time to grab some unloved silver. my next guest says there is always a silver lining. he will join me in a fox business exclusive coming up. ♪ liz: precious metals losing their luster today. first, the dollar is stronger. analysts at jpmorgan lowered price forecast for most metals. bank of america also sliced it 2013 outlook for silver. john smith, silver standard resource ceo and president joining me now.3 those downgrades should not affect what you are doing anyway because it is all about demand; is it not? >> it is still strong. fundamentally, you know, the whole marketplace is still volatile. there is still a transition in volatility as we see. it will still be strong for silver. it is important that people think as sober as an investment vehicle. liz: silver is at about $22.24 towns. you guys are mining this stuff pretty dramatically everywhere. tell me where you see the biggest demand. is it the electronics world? we always hold of tablets. they are in smart phones. they are in medical devices. >> silver plated on that side of the fence. as we start to see the economy take off in the u.s., you will start to see more and more used in the industrial applications. that is hopeful proof that we see into the commodity driven side of our business. liz: i do not understand this call. economies are stabilizing. people are finding more jobs. granted, at a very slow pace. it is a little anemic. maybe gold, but ask silver. that is where there may be opportunity. are you able to get the rest of the capital to fund the project that you wanted to fund? >> it is a really good project. we are pretty much well-funded. we are in the final stages this year. we are looking at a joint venture partner. we are putting our full weight behind this process. liz: sort of like real estate. just as soon as you start building, boom, you get into a bust. >> you have to be in front of the market. you have to have your product ready. liz: what about hiring right now and where are you piecing up staff or laying off? >> mexico and peru. it is a great time for companies for us to build. we can get equipment and machinery a lot quicker and at the right price. we are in the right spot to be doing the right things at the moment. mexico and peru, that is where we are driving. argentina as well. liz: i wore a silver necklace just for you. thank you very much. it is great to see you again. john smith. we like to watch this and do the counter story when there is a jpmorgan story. fac capital still in hot water, but now temperatures going up. some of its largest investors may be pulling out more of their money. charlie gasparino has the scoop on how much they really stand to lose. plus, twitter going public. when? the company starting to take on popular radio sharing. we decided to make a countdown countdown to the closing valve video. check it out as we go to break. ♪ ♪ withhe spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. 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[ male announcer ] from broadband web hosting to mobile apps, small business solutions from at&t have the securi you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ liz: china continuing its rampant use of cyber espionage. chinese hackers are again gaining access, this time to the united states military most critical weapon systems. jo ling kent is here with the story. >> that is right. the washington post is now out with a report saying more than two dozen critical weapon system designn have been stolen by the chinese. it gives the chinese a huge leg up against the chinese military. they have effectively taken all of these designs and skipped over their own research and development. definitely a large amount of designs. analysts and people are telling us that this is really bad news. the chinese continue to deny that. there is a new 100 page report coming out, it came out last week, actually, from former utah governor. the company should take it into their own hands. build their own network security to fight this off. certainly, a very bold recommendation. one hundred pages of that. on the flip side, of course, this could affect the way that contractors and companies do business in china. we will have to keep a close eye on it. one last thing, analysts are saying, are telling fox business, the u.s. government needs to step up a little bit. they should be outlining concrete cost. figuring out what the offense of strategy is the defense. liz: it will be really expensive if something really bad happens. let get going here. steve cohen making points to show that he is a family man. fox business sr. correspondent, charlie gasparino is here. charlie: this is a big story out in wall street. all of these big wall street firms would love to be the underwriter of the twitter. there will be no twitter ipo this year, or i should say highly unlikely to be a twitter ipo in 2013. why is that? the company really does not need the money. unless there is a rapid spike in valuation, where you kind of want to cash in real quick because valuations of internet companies have gone off the chart. it is not really going off the charts. twitter will not do an ipo in 2013. you would probably have to get started next week or in the next couple weeks. it takes a long time to work. what they are telling me is to not expect a twitter ipo this year. liz: it is the video version of twitter. i have not really heard of it. charlie: have not heard of it either. liz: my daughter says do you know what line is? i said do not let anyone videotape you. suddenly, it hits critical mass into second and twitter is already on it. they own it and they are smart. charlie: my point, take it for what it is worth, maybe they are wrong, baby it is week-old information i am giving you, they are telling me that it is not happening this year. they do not need the money right now unless valuations go up. there has been a lot of speculation on what will happen at sec capital. bloomberg, about a week ago, pointed out one of the negotiating options with the u.s. attorney's office is that somehow he closes down, he manages his own money which is the $9 billion he holds inside the $14 billion hedge fund. here is what i understand is kind of in the works. it is rejected as of now. what i understand is that sec may act on its own to basically become a family office. what is driving that? they will get massive redemptions. a lot of people think blackstone will come out. there are lots of reports out there. liz: when would this happened? charlie: this would be happening in weeks. i think it is mid-june. we are talking a couple weeks away. i will give you the best information i have. compare it to other people's. there is a massive investigation. they are focusing on steve steve cohen and the fund. likelihood is, the government wants to shut down the fund. this is my reading. i am just laying it out. they will not deny, they will not confirm it, they will not go near it. it becomes a game. is there a racketeering charge? this is the legal and game which has yet to play out. it will be interesting. liz: thank you very much. twenty-nine minutes before "the closing bell" rings. dow jones industrials on track to close at a high. we show you how to find the stock that has an expected 20- 20-50% growth in the next year. we have home prices jumping the most in seven years. is that a good thing? is it time to invest in your second home? we show you the best places to buy a vacation home. coming up next. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, onehing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ >> let's get back to the breaking news involving the derailed csx freight train, shares of corporate down after one of the trains derailed, as you see here, outside of baltimore. you're looking at a live shot right now. we want to let you know according to one report out of nbc news, the crash did to the happen on a commuter rail line, and that regular amtrack passenger service has not been affected. we got calls into csx o get better read on what may have happened, but so far, nicole, no injuries, good news, certainly. nicole? >> all right, oh, sorry, i was not able to hear you right then, liz, but csx down 1% at 2529, a stock that had been up earlier prior to what we see as the freight train derailment near northeast baltimore. as you noted, there's been fire, there's been smoke, building collapses, we have not heard about loss of life, but large plumes of smoke rising from the area, three rail cars could be seen off of the track, and so csx, unlike other rails that actually are still high or trading higher, csx to the downside, continue to watch live shots there with smoke, fire, and derailment pushing the stock as wl to the downside. back to you. liz: keep the shot up. the fire is still burning. black smoke means out of control. learn that in local news. so far, we're hearing no injuries. that'sed goo news. we'll get back to it as soon as we get details available. the important news for, perhaps our viewers, no injuries and amtrack service going on. stocks moving higher. dow on track to close at a record high again. still money to be made in the market? what do we mean by that? can you pick names with room to run? jack hao joining us now with specific stock names you say are set to jump at a faster growth rate. how did you screen the names? >> i actually called around and spoke to analysts. there are two problems with this growth at a reasonable price approach now. there's not a lot of growth there. sales, actually, for the s&p 500 flat lining now. it's tough to find growth, and what few companies grow are expensive. amazon, netflix, and whole shares grow nicely. look for companies where they have not been great growerring up until now, but for one reason or another, their growth rates are about to jump. you can find shares like that cheaply. liz: don't go for the growth at a reasonable price? if the po ratio is richer, there's still growth opportunities? >> yeah, if somebody's having a higher pe rich owe, earnings are about to jump making shares priced. do you care about diff p dens? >> i care a great deal. generally speaking, but on these particular companies, not as much. it's a growth. liz: first pick is a name might not be familiar to the viewers, but people in texas know it. it's called cons. it's a chain store with home goods, but specifically for people without great credit ratings. >> if credit is fine, you get the cheap deal on amazon, no credit whatsoever, you go to week by week. if you have some credit, want a better deal, go to a cops, and you buy it and use in-store financing, like 70% of the sales is in-store financing. you probably already talked about the housing numbers today. liz: fantastic. >> right. this company benefited from that. they remodeled stores to make room for furnishes and ma tresses. only 670 stores here, mostly impacted with room to stand. liz: okay. another analyst is by yo script. >> yeah. this company's involved in home infusion therapy for drugs. now, the new drugs are much more complicatedded than the drugs we have up until now. drugs pending fda approval have to be injected because they are complex. go to the hospital, expensive, save money by doing that at home with the skill nurse. this is a company that specializes in this. you make money from the next class of drugs. liz: could jump 50%. i covered the company for a long time, making equipment for wifi companies. >> right. there's a lull in spending. growth is nowhere to be fund for the company, but demand for data is still rising. these -- these wireless companies have to increase their spending next year. liz: how much growth there? >> i think next year 10% growth on revenues. what that means for earnings could be a significantly higher number, but going from no growth now to some growth could get an increase in the stock price. liz: final pick, totally different space. popeye's -- >> when was the last time you went to one? liz: l.a., a long time, used to go all the time. look at this. >> classic turn around story. new management, and what they do to improve sales are not complicated. they are using national advertising where all stores benefit. they are timing the drive-through windows, things like that others have done for years and years. they move in the right direction, and 5% as many stores as kfc has overseas. there's room to expand. chicken is easy to push overseas as well as spicey food. this has both. liz: great to see you. go on the facebook page, facebook.com/lizclaman. we'll put the picks there. thank you so much. >> thank you. liz: closing bell, 17 minutes away, housing recovery is in much stronger force. is it time to buy your dream vacation home? that little cottage, that mcmansion, we tell you the best places to buy your second home after the break. ♪ 'one size fits all'. it doesn't. that's crazy. we're all totally different. i

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