Transcripts For FBC FOX Business After The Bell 20131008 : c

Transcripts For FBC FOX Business After The Bell 20131008

House Speaker John Boehner will give his response in just 30 minutes. Well carry that live. David titfortat. International Monetary Fund saying today that a failure to increase the Borrowing Limit and a selective u. S. Default could seriously damage the global economy. Liz in a fox business exclusive, Philadelphia Fed president Charles Plosser telling fox business the fiscal battles in washington are a real risk to the economy but he also tells peter barnes there is not much the fed can do to address shortterm events. David very good interview. Win for apple in the latest battle for the global patent wars. U. S. Trade Representatives Office upheld a ban on importation of older samsung products. Liz at t ceo, Randall Stevenson says he sees what he calls a huge opportunity in europe. He is looking for ways to expand at ts business in that region. David google is making a new push to sell laptops that sell the chrome operating system. This is partnership with hewlettpackard. The chrome book costs 279 each. After the bell starts right now. Liz as we close, very close to the market close, we get todays Market Action and reaction. James lowell, chief investment sister, look he is already ready for this, this is buying opportunity, all the fear for investors. Larry shover in the pits of the cme. Lair remember is also smiling but probably for different reasons. You guys love the action as much as anybody but there was quite some action as the president began to speak and we closed pretty much at the lows of the session. Youre right. Liz go ahead, larry. Anxiety is rising here. I mean as the death r debt drama continues to rise it is is being up all the oxygen for the market and for traders. Up until today traders were at a standstill. Some were waiting for rebound and resolution rally. Some didnt want to stand in the way of some type of crisis selloff. When you consider the s ps fallen almost 4 since august, im sorry, since september, the vix is up 60 from august, all these things, the bias is starting to tilt a little bit. Were listing to port. People are starting to get a little more conservative. We see that today with implied volatilities. David jim, lets talk about the word default because the definition is being stretch ad little by this administration. The president and treasury secretary say as soon as you hit the debt limit a default, they suggest is almost necessary. You will be defaulting in some way where as before a default was very specific word. It meant if you dont pay the people who doubt your bonds, thats a default. Theyre very muching that definition. When the president specifically was asked, if you had to prioritize your payments, if we hit the debt ceiling, would you first pay off the bondholders first which is essentially International Law . The president would not answer that directly. He deferred to his treasury secretary. Does that concern you . It does not concern me. This is washington at its worst, which i guess weve come to expect as washington, kind of being at its best. Reality the default is still a long way down the road, even though it feels like it is weeks away. The weeks, caucus ticking. There is no question in my mind. At least as of yet. Well not be able to figure out some sort of a solution that helps us manage at least in part or in whole both debt ceiling and default question. Liz in essence, maybe wait until that high fear moment, where the market drop as bit more. The market says buy what, jim . Liz, i get the fact this market is as nervous as a seal in a shark tank. I dont think anybody doesnt understand that but reality is that is when you want to begin to look for opportunities. Were still in the aquarium. There are not cracks in the glass. There are no water leaking out of the tanks. As an investor this is good time tock looking. I put it another way. No one made themselves rich selling on fear. As fear continues to be the catalyst well continue to look at fundamentals both in economics reports that we can get our hand on as well as earnings to help us deliver what we hope are reasoned approaches to reasonable longterm gains. David well now, jim, you specialize in Exchange Traded funds of the you dont do individual stock picking as much as you do the fund. I think most Retail Investors agree with you. Theyre gun getting to picking individual stocks. But whats interesting to me is that despite these talks about the default, what it is, whether or not, in fact the bondholders might get screwed the way gm bondholders were screwed years ago. You have two financial fund. You have one that focuses on Consumer Finance and one that is Financial Sector portfolio. Explain what they are and why they appeal to different sectors of the finance community. So, david my premise there, that consensus is almost ruling out consumer and their desire to spend but i think you buy what enables the consumer to buy. That is Consumer Finance, visa, mastercard. Liz hold on one second, jim. I will let you finish that in a moment. Weve gotten alcoa earnings. This is the Aluminum Company of america. Very much a proxies on global spending on things like aluminum needed to grow. They have met the eps number at 5 cents excluding items. They have beaten on the revenue. David good. Liz this is unusual. Alcoa has struggled recently over the past several quarters and whats happening . The stock is responding in kind. It is jumping about 2 in a moment. Excuse me as i put on my glasses. A couple things you need to see with alcoa. How is the flat roll business doing . What do they see comes to actual pricing. The pricing in aluminum has been challenging. Aluminum dropped in price. Alcoa has had a difficult time to be able to charge more. They have 16 or 651,000 metric tons in selling, smelting capacity offline. So they cleaned up the business. They narrowed their opportunities to be spending too much money. In turn they have Beat Estimates on david liz, another very important thing hitting the wires right now during the Third Quarter the settlement discussions with the department of justice, of course the department of justice has been coming down on a lost corporations recently not only in the Financial Sector but also alcoa. The sec continue with their discussions. No settlements were reached but it seems like reading between the lines here, that alcoas is suggesting that perhaps they have gone a long way to settle their problems with both the sec and the department of justice. Liz they are reaffirming david, their forecast of 7 global aluminum demand. That is exactly what clause klein felt, the ceo told as you week ago. We had the opportunity when we spoke to them exclusively on 125th anniversary . What do you think of the debt ceiling battle. He was pretty much disgusted, from a business standpoint, raise the debt ceiling. You dont want to see this cause global gyrations, alcoa, very much a global business. David indeed it is. Larry shover i want to go back to you for a second. The question of whether or not the deficit was responsible for the problems that we saw at the last tick of the wire. Sounds like theres a lost activity at the s p right now. Closes in about 10 minutes. What is happening behind you . A lot of screaming going on. Same thing i mentioned earlier. Half the crowd is looking for some type of resolution rally rebound. The other half are worried about a crisis selloff. That makes for a perfect market. Hold on a second. We really havent seen any kind of a crisis selloff going on. Weve seen a slow fading of the markets. Yeah. David what do they think would cause a crisis selloff right now . Well i think the bias is tilting a little bit. Weve fallen below the 100 day moving average. I dont care about technicals that much, however it creates a lot of momentum in the market. Sooner or late we start to leak. We list to port and panic will end up hastening the rotation into other Asset Classes that look of value compared to the United States that would be europe. That would be china. That would be japan right now. Whether it makes sense or not, people are worried. So there has been a lot of mixed reactions behind me especially in the last 10 minutes. Liz see then the worry, the discussion comes back to jim, who is out there trying to pick and choose some stock names. How should people be watching and deciding what to pick, jim, at this point . Stay focused on the fundamentals, not on the fear. Will james said the art of being wise is knowing what to overlook. If there is elephant charging at forest that will be easy to sidestep but look for the tiger behind it. The reality unlikely the default will take this market down. Likely be something we havent factored in but i like fundamentals especially in a consumerdriven economy where i see the u. S. Consumer remaining strong. David i love how all of your analogies have to do with animals. That is why we have you here, jim. Youre an animal lover. We love you. Thanks, jim lowell. We appreciate it. Larry well check in with a couple minutes when the s p futures close. We love the animal analogies. Liz i love paws and animals and alcoa is jumping on the numbers. David it is indeed. Liz talk about the twitter frenzy is reaching a fever pitch. Could the social Media Company be a better bet than tis la . We find out whether twitter could become the new darling of wall street. David the ponzi kings hide away. Bernie madoffs luxury penthouse. Well show you parts of the penthouse that has never been seen. Also the desk which Bernie Madoff was working when the fbi was looking in. Liz gorgeous view. Wow. Todays facebook question is this we want to know from you, if you had 17 million to spend, because that is what it is going for, at least that is what it is up for, would you consider buying madoffs lair . Real estate, right . Log on to facebook. Com afterthebell. Well bring your answers and date pictures, you will see them here first. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. From td ameritrade. Always go the extra mile. To treat my low testosterone, i did my research. My doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and meditions. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg 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, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about e only underarm low t treatment, axiron. Liz look at shares the monster beverage. Why . Because they were on the rise today following reports of strong september sales. Lets head back to lauren simonetti. She is on the floor of the new york stock exchange. Lauren . Hi, liz, monster was number one performer in the s p 500 on a day when almost everything was down. Monster was up 3. 25 . There is Fresh Convenience store data that monster beverage sales were up 10 in the month of september. So that is excellent news for the company and for investors, who might have been seeing a slowdown in the energy drink market. So bmo Capital Markets had very positive comments about this stock and it is a winner today, liz. Liz thank you, lauren. David well the market wasnt a winner today. We heard a lot of activity in the s p pits. Lets go back there to the cme and larry shover. Larry, i hear a lot of shouting even though the market just closed there. As the present morass continues to persist the dips are shallow and brief. The longer we march along the path without a deal the ground will become unstable and very volatile. What is impact . Gdp, delay of tapering or lastly we could see a rotation into other areas of the world and out of the u. S. For no other reason than we can not get our act together. It will be fun to watch as a trader. Very nervewracking for investors at home. David a lot of traders are cash heavy looking for dips like that. So you know at a split second these guys could come back in and buy up bargains or perceived bargains. Larry shover, from the pitts of the cme. Liz this is amazing to me. Twitter hasnt become public, has more time to ipo and has noise from investors looking for the next big stock bet. David can twitter become the new momentum darlinging . Joining us, jeff reeves, our darling from investor place. Com, the editor. Great to see you. A lot of people are saying tesla, could twitter be the new tesla . What do you say to that comparison . It could be. There are a lot of similarities between the two. Tesla offered when it was not exactly making money and used ipo to fund growth. That is vastly different from facebook. A lot of people that got rich were executives and didnt make a lot of money they deployed to make the company grow or ultimately change. Twitter has the opportunity like tesla, they go public, make money on the markets and invest in their company. That is the american Success Story we like to see a public offering. Liz can they monetize, jeff . Can they make money over at twitter . In some cases making money isnt exactly the biggest deal at the moment. Amazon, we were talking about this anyway. Amazon could keep losing money but twitter keep wanting the stock. Twitter as a newbie, will they be as tough on facebook can they monetize mobile, et cetera . Can they do it . Twitter has figured the mobile problem out. 75 of the users are mobile. 65 of users are mobile. There is not a shift they already need to do. Theyre already there. Twitter is puting a lot of money in r d. This year they spent 112 million of research out of revenue of only 250 million total. About 40, 45 of their entire is in r d. Theyre investing heavily themselves. People have to understand this is a company that is ramming up. It is looking for the hockey stick. If you look at threeyear chart of tesla it didnt do a lot for the first two years out there then it went like gangbusters because it proved naysayers wrong. David i have to stop you there, jeff. It is easy to understand what tesla put money in. Tesla cant produce enough cars. They have more orders than they do cars, you wonder what twitter would do, ipo new capital to invest in expansion growth. In what would twitter invest . We know what tesla would invest in which is cars. That is very simple. What would twitter invest . I think a question to figure out a way to use the social media platform bettory monetize people but reach for information david that is vague, jeff, forgive me. Thats a vague answer. Be specific. What would they get into that a lot of other sites arent already into . Twitter is already experimenting with video right now. One of the biggest problems they have is large contract advertisers they may not have that much twitter in current user baseballs theyre only 1 5 of the size size of facebook. If they get scale you tap into a pool of bigger advertisers simply because of the reach with bigger campaigns like that. I dont think twitter has to reinvent the wheel. I do think there is opportunity for growth and scale of existing model. Monetizing better and using different medium. Twitter doesnt have a lot of video tape graduation now. Video is the way mobile is going. C. Pms are better for video than conventional display ads. There is lot that can be done with the existing model. That is the spirit of an ipo. Raise capital and deploy it to make your business go to the next level. That is something where people understand. Even with twitter operating at a loss right now theyre putting that money to work in the r d department. It is not bleeding cash because it is not operating. Each time people think twitter is jumping the shark the micro blogger turns around and serious in hollywood situations. Miley cyrus tweeting after twerking situation. You have issues in egypt involving twitter. You look at this, you say there is real opportunity here. The question becomes, jeff, do you jump in when it first goes public or do you wait until there is a little bit of a shakeout . I do think twitter is run like a real company. People need to kind of look at facebook as a different thing. There are two classes of shares at facebook. Zuckerberg hat 2 stake. Executive team at twitter collectively has a smaller stake than zuckerberg does. Ceo as 1. 6 . They dont have two classes of stock. Theyre running like a publiclytraded company, not a vanity project. The narrative is very sexy. Investors when you look at the Balance Sheet and the s1 that was filed you look at shares structured. It is a legit company. Linkedin showed us that that wasnt a social media fad. There was a money behind it and they showed a way to make a business profitable and investors made a lot of money. Just because you see a Miley Cyrus Twerking tweet that is all it is about. There are serious business. Liz they were smart enough to get him in place the ceo. He is a grownup and smart businessman. They have a real future. Jeff, good to see you. Thank you so much. Thanks for having me. David you have to explain working tweet at some point during the break. Still not hip, i dont know the twerking tweet. President obama uses uncompromising language. He calls on republicans to raise the debt limit without conditions. In just a couple of minutes Speaker John Boehner will give us his response to the president. Well bring you his comments live. Liz hollywood is over the moon over the new scientific movie, gravity. Imax entertainments ceo whether the film markets the beginning a

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