Transcripts For FBC Countdown To The Closing Bell 20140113 :

Transcripts For FBC Countdown To The Closing Bell 20140113

Today. Its much lighter than its predecessor because its body is built nearly entirely of aluminum, the body of it. That means better fuel efficienciment will it mean hotter sales . Right now we look at shares of ford, they are up just about eight pennies. Its not a huge jump, it had been up more than a percent earlier today, but on top of it, the redhead at the helm stays. Not me, alan mulally. Fords ceo and president joining us live in four minutes. No more are you going to microsoft to run that companyer. Thats done. Well ask him whether this lighter truck can stay on top of its rivals. And is raise your glass if you like bourbon or even better, honeyinfused. The maker of jim beam and makers mark has agreed to be acquired in a deal valued at 16 billion. Thats actually a 25 premium over fridays closing price. As we look at the chart, we can see that shares of beam are staggering up high, about 16 at the moment. Thats a 24 rise. So it is staggering, indeed. And yoga wear giant. Lou lemon going into that downward dog position in more ways than one. Lululemon facing downward of after lowering its Fourth Quarter outlook. Lululemon made headlines after one of its yoga legging lines was deemed seethrough. Shares moving lower by 9. 80. Lets get to the good stuff here at the Detroit Auto Show, a handful of auto parts makers, not just the auto companies, the parts makers are hitting alltime highs, so lets race over to nicole on the floor of the new york stock exchange. Reporter were talking about auto parts, makers, also some of the components. And i know youre going to see some down arrows, but you know what . A lot of these names all hitting 52week highs. Delphi automotive, johnson controls. Another one to take a look at, vision corporation. All of these names hit 52week highs today, some of which have since pulled back. We do have a down market, were down 163 points, but you could call it the Detroit Auto Show effect. Johnson controls is seeing a pop after vc agreed to buy jcis Automotive Electronics deal, thats a 265 million deal. Toyota motor, hondo motor, General Motors to the down side, gm getting closer to reinstating thattive dead. Ford motor, you just showed the new hot f150, and nissan also with an up arrow. Its interesting to take a look at the auto parts makers which have been hitting some highs, and heres a look at the automakers themselves. Back to you. Liz thank you, nicole. I know you and i both watched the Market Action on friday in the wake of that very disappointing jobs number, and it was kind of exciting the markets didnt fall all over the place. Well, today, what is it . Is it sort of the hangover of that number . Or is it that when Goldman Sachss speak, investors really listen . Goldman came out today saying that stocks are starting to hook overvalued cue to the s p ratio due to the s p ratio number. We knew that. So is goldman right . We have traders at the new york stock exchange, cme group and the nymex. Ben willis, the price to earnings multiple of all the s p 500 companies now hovering around 16. Historically, thats not so expensive, but do you think thats why the market is down so much, or is it, oh, we wake up and realize that fridays jobs number was that bad . I think its, the market is catching momentum to the downside because of stories like Goldman Sachs. But if youve been listening to fox business for the last zell weeks several weeks, youve been hearing guys like me telling you that the market is wavering. Even though its 16 times pe, were in the middle of historical range, but the run weve had has not been made healthy enough without a significant correction. And within goldmans quotes this morning, they talk about the perception of looking for that 10 correction where it may be a better opportunity or Entrance Point for their customers. Weve been telling the world that for quite some time on fox businessment so weve been business. So weve been looking for that to happen. Not only did we get the kickoff on the way down from Goldman Sachs, continued taper regardless of the jobless numbers or the job numbers that we just heard of. Theres also another story in the fixed income area that theres a fight going on between china and japan thats not fully disclosed yet about the islands in the chinese sea. So thats all adding to this breakdown on the technical basis through some of the support levels that has this momentum to the downside right now. So with the confusion to the individual investor at home that keeps hearing from guys on fox business saying look for the correction, its not happening as past as wed like, but it looks like its happening. Liz so as you put it, catching momentum to the downside. By the way, ben, im glad you brought up those tensions between china and japan. Folks, listen, they are much, much hotter and running a lot louder than you really hear at the moment, so thats an important thing to watch. Let me get to the cme. Ira, is anything reflected in the treasury markets thats worrisome, or is it simply what ben is saying, and that is its been a while since we saw tripledigit loss that held to the end of the session on the Dow Jones Industrials . You knew something was wrong the first week of the year when the markets didnt go for the highs they made on december 31st. And if you watch momentum indicators, it issued a warning sign that the market might retreat back to ill call it the 18day moving average of closes, a key average we watch in the futures. And thats exactly whats occurred. Its not the beginning at this point of a bear move, its a corrective move. And, yes, in the treasuries were all looking at that friday number on nonpharms and wondering what the heck is it . What if they get a 100,000 number for the next one . That would be pretty bad, and all of a sudden wed wonder just where the fed is. So, yes, the feds going to hold pat right now, but theyve admitted theyre numbers driven. Well see what happens next. Liz one number doesnt, we do have only one stock thats high on the Dow Jones Industrials, thats merck because it filed early for approval of a skin cancer drug, but thats it. Mercks the only one. Tom reilly, looking at oil today, we never quite made it above 101, 102, now were well above that for the moment per barrel. Yeah. Were going to continue this selloff, i think. Seven of the eight trading days here in 2014 weve been lower, and i think if you see the stock market continue to sell off like most people think its going to do, youre going to see oil back down to that 87 number i mentioned last week. Liz good to see all of you. 91. 50 at this moment. Well bring back tom so he can take a victory lap. [laughter] thanks, gentlemen. When it comes to autos, ford is playing big. F series trucks, you know the story, theyve been the nations best selling vehicles for more than 30 years, but ford not resting on its chassis or on its laurels. Trying to act like i was thank you, benny. Benny gave me a laugh. The brand new f150 truck being unveiled at this years north American Auto show in detroit. What is so new about it . Well, its body is now made nearly spirally of aluminum entirely of aluminum, making it lighter and more fuel efficient. Skeptics, those are the ones sitting in sort of the bleachers and not trying anything out there, but skeptics are concerned that manufacturing delays may pose a problem for the automaker. Lets find out if that is the case. Fox business jeff flock in detroit with alan mulally, Ford Motor Companys president. Alan, i dont know if you heard what i said earlier, and the redhead stays, i didnt mean mean me. [laughter] i heard your joke, and i was laughing out loud. Hi, liz. Liz indeed. That unveiling looked very, very good. Tell me about the aluminum part of this, okay . We should say that the frame, im sorry for the flickering in and out of the camera here and the audio, but we think its important to hear from you regardless. The frame is still steel, but what makes it more attractive as aluminum when it comes to the body . Oh, absolutely. The most important question. You know, liz, aluminum pound for pound has been stronger and tougher than steel itself. So this is the material of choice, in the past we havent had the quality of these Aluminum Alloys which we have now which are the same we use in commercial airplanes. And by putting it into the f series first with all the volume that goes with that, were going to be affordable to all of our customers, and they get the value over a 700pound Weight Reduction which turns into towing capability, fuel efficiency and increasing quality because its more durable. So its a very exciting day for the f series. Liz it looks like its infused with diamonds. A. M. An, youre so valuable that we want to fix your audio. Were going to take a quick break, well bring alan back in just a momentment jeff flock will not let him move, dont worry. Weve got the closing bell ringing in 50 minutes. Well be right back. Liz we fixed it. Lets go back to alan million hallly, president and ceo of Ford Motor Company with that gorgeous f150 behind you. What we cant really see, alan, is that it is made of aluminum now, money less so than steel. Well, this is really neat development, liz, because, you know, pound for pound aluminum is a tougher and stronger than steel, and weve been held back in the past because of the pricing. Well, now with the volume that were going to do with the f series, we can now bring all of this capability and the lightweighting and the new fuel efficient engines now to the f series customers with all that increase in hauling capability and toughness and cargo capability. So very exciting today for the f series. 37 years, the number one truck in the United States. [laughter] liz jeff, i know theyre not resting on their chassis, as i said, or their laurels, but its so competitive, isnt it . Reporter well, he did what, you know, liz, i think arguably other ceos would not have the courage to do, which is to fix something that aint broke. I mean, you lead the way for 37 years, why the hell would you change the truck . What were you thinking . Well, you know, jeff, thats a good point. And the reason that the f series has been the preferred vehicle not only the truck for 37 years, but the number one vehicle in the United States for 32 years every new vehicle we have brought the technology to enhance the quality, the fuel sicialtty, the safety, all the things truck owners really do value. All that capability. And this is another step. Reporter but are these truck owners going to buy this . They hear its totally different, its lighter, oh, wait a minute, do i want to change . Oh, no. The truck owners absolutely treasure fuel efficiency in addition to reporter found that with the ecoboost. Absolutely. And they know trucks. They know the ford tough, they know this is going to be even tougher, and theyre going to really appreciate the extra capability that you get with this new truck. Liz hey, alan, ive got to ask one more really quick question, what is the next line that you will roll out as more aluminum . Is it the ford focus . Is it the fusion . Is it the escape hybrid . Whats next . Sure. I think that, liz, over time well see aluminum move into all the vehicles. But clearly, the value is the greatest for the heavier vehicles. So the larger trucks, the suvs, those will be the next ones thatll benefit from the new materials. But over time well move aluminum into all of the vehicles just because of the value it has for strength and durability and light weight. Liz and then i wonder about the reporter ive got one more thing, liz. Liz oh, or go ahead. Reporter well, this is a silly thing, so you ask your serious one first, and then ive got a silly one. [laughter] liz okay. Electric vehicles, the last time we spoke with you when you were unveiling that mustang was you said versionly you would believe that perhaps the mustang will be at least offered in electric, that you want it more as a pick and go as you choose customizing vehicle. When do do you foresee that actually becoming a reality, alan . Where people can say i want that car, but i want it hybrid, electric or not . Well, you know, were really quite a ways along on that strategy. So if you look at the focus today, you can get a petro version, a diesel, a plugin hybrid with a bigger battery or an all electric which is only electric without any internal combustion engeneral. We actually engine. We make those on the same production line. Liz exactly. 70 of the parts are exact the same, so were accelerating henry fords original vision of giving you the power of choice and doing it most supportively. Reporter speaking of henry ford, did you know, liz, that after henry ford and henry ford ii, do you know whos the longest serving ceo in history . Do you know who that may be . Liz oh, maybe its alan mulally, the superstar redhead. [laughter] reporter i got a tip today on his next job. You know, they have a Football Team near detroit. Hasnt done particularly well. The rumor on the street is hes going to become the head coach of the detroit lions. Lets put that rumor behind us. I absolutely love serving the Ford Motor Company, and im so excited to present the next new dynamite version of the f150 to you both. [laughter] liz what does it say the demand of the f150s, alan, what does that say about the housing industry . A lot of contractors use that truck. Are you getting any insight, any window into how the Housing Market is . Absolutely, liz. And its really strong indications. We think that based on the availability of the truck and how people are using it across all of industry, that were seeing very strong demand. Our sales were up last year, our market share was actually up last year also. And we think that thats going to turn into a gdp expansion for 2014 of upwards of 2. 5 . You take he average age of vehicles, liz, as you know its around 10 years old, you can now economically obsolete your older vehicle with any one of these new ford vehicles. So all that investment in the past has resulted in this fantastic family of reporter and if this gets 30 miles to the gallon, you will get rid of your truck. We havent released the fuel mileage, but clearly, its going to be best in class. Liz hey, alan, before we let you go, when you do become a man of luxury and retirement, youre a superstar leader, if asked to serve a United States president , would you go into the government . Liz, at this point i am absolutely thrilled to be serving ford, and is my focus is to deliver all 23 of these fantastic launches. But thats very nice of you to ask. Reporter if hes smart enough not to become a football coach, hes smart enough not to go into the government. Liz alan, thank you. So much. Good to see you. Liz and apparently the truck is going to be in showrooms at the end of this year. Closing bell ringing in 40 minutes. Leo dicaprio celebrating his golden globe award for his role in wolf of wall street, but outside hollywood jordan bell fort squaring off with a u. S. Attorney. Charlie gasparino has the latest on that, hes going to tell us why. And, listen, were about the business of people. Charlies on that story. And anybody out there want a bentley . Turns out even the super rich occasionally have to turn to a pawnshop to fund their high roller lifestyle . Details on that nextment. As a business owner, im constantly putting out fires. So i deserve a Small Business credit card with amazing rewards. With the spark cascard from capital one, i get 2 cash back on ery purchase, every day. I break my back around here. Finally soones recognizing me with unlimited rewards meetings start at 11, cindy. [ male announcer get the spark Business Card from capital one. Choose 2 sh back or double miles on every purchase, every d. Whats in your wallet . I need your timesheets, larry whats in your wallet . He has the most my dad hacommon kind. Llation,. Its not caused by a heart valve problem. Dad, it says yourst my dad haafib puts you. Llation, at 5 times greater risk of a stroke. Thats why i take my warfarin every day. But it 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 doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometis fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immedia medical care for unexpected signs of bleeding, like unusualruising. Pradaxa may increase yo bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney probls, especially if you take certain medicines. Tell your doctors about all medicines you take. Pradaxa 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. 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. Liz staggering and swooning, thats what the markets doing right now. Okay, we havent seen this percentage amount fall on the dow since early october, i want to tell you. Here were down 174 points, pretty much hovering, or i guess languishing at the lows of the session. The nasdaq down about 68 points or one and twothirds percent, and you see the russell 2000, the small and mid caps that tend to take what money they make and put it back into their companies, down about 1. 5 as well. We also have i just wanted to mention the vixx, the volatility index is moving higher by 10 , so a little more fear in the markets at the moment. It appears the hack attackers werent only going

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