Transcripts For FBC Markets Now 20130913

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on markets now. ♪ dagen: do you have to be surfing the internet to get on twitter? connell: off tv and what is going on -- he does. when it friday night announcement, try to sneak by s and you can't do that in this day and age. always watching. they accused the nobody read this saturday piper. connell: don't read any day, always on line. dagen: nicole petallides is at the stock exchange. nicole: i still like a good piper. let's talk about what we are seeing for the dow jones industrials, great week for the bulls seeing a lot of green, triple digit gains, the dow jones industrials up 51 points, that accounts for 1-third of 1%. tech is under pressure for the tech heavy nasdaq but on the dow jones industrial average a majority of components will into the green. intel had an upgrade today, overall we have gotten economic news, as good as anticipated but the trend to the upside continues, oil and gold falling back, gold down $13.5 at the moment. connell: all the big news is twitter announcing it is taking first steps toward becoming a public company and doing it with a single tweet. dagen: robert gray is in san francisco with more. >> taking notice obviously of the san francisco chronicle and this is twitter, social media that the social generation uses to chronicle the now-dated tweeted at it out, al else would denounce the idea. under the new jobs that they don't have to publicly declare because their revenue is $1 billion so they were back in 2006, seven years old and exploded with egyptian protesters using it, talking smack back and forth for saying the line is too long at a coffee shop around the block. the value the company had $10 billion to $15 billion is what is estimated right now. revenue 5 funded million dollars of $600 million a revenue doubled last year to $280 million from prior year 2011 expected to double again this year so you are looking at $1 per registered user which is $500 million of those so goldman sachs likely to be the lead underwriter for this deal, ibm expert telling me this morning it will not trade on the nasdaq harkening back to the debacle that was face book's ipo and shares held for an hour and investors stuck with stock they didn't want. we have a full screen that shows you social media ipos including the gargantuan facebook $16 billion pay raise trading on nasdaq and you can see the return back above water at record highs at the close yesterday and where the others, linkedin going parabolic, yelled up 320%. unclear which way this one would go but certainly generating a lot of buzz and not just in the twitterus fear. connell: robert gray out west. dagen: here is going to cash in big time once the company goes public, original investors, we don't know what their percentage sticks are because it is private. dick costello is c e o of twitter, jack busey, co-founder and c e l of square, a huge hit and evan williams. all of the ones who put them on air early on. connell: are you on twitter? chief investment officer of cumberland advisers, charles dean with us. charles: i blame you. connell: you had no profile picture. dagen: a robot. >> we learn from facebook? what is your take? >> we will find that out. facebook heard people who bougha score card of winners and losers and the losers are big losers, winners are big winners and facebook is the round trip that broke everybody's heart. where is twitter going to go? i think twitter is very popular. a lot of people use it, serves up purpose of why expect this will be a successful offering and investors will cash out. dagen: robert said half a billion users but i thought it was closer to $300 million. charles: i was surprised how large was. i don't know how they are monetizing it. how are they moneta rising these eyeballs? i think it is going to be a, quote, successful ipo for the company. whatever they want to raise the race for the investor, you can go to facebook, or linkedin, go public, 6% of your shares, let the stock pot on the first day, you got gypped by goldman sachs and later on when the stock is up 450%, without disrupting stock or hurting anyone's feelings or killing good will because it is part of the business model for social networks. connell: what you think of the process? >> i agree, the facebook offering is the standard of the worst way to go public. you hurt the people who believe in your company, hurt the people who invest in your company and create an image of a dysfunctional wall street in the process. everything went wrong with this book. dagen: ted purdy the image -- and investment bank that basically -- >> i agree with that direction. absolutely. >> are we arguing, made do we are, financially this company sustainably makes sense whether they modify or all the things we talked about. charles: that is always the question and it did pretty well, the table we had, groupon is struggling big-time. monetizing, they have eyeballs, get the eyeballs the product is good for. dagen: i argue the likes of groupon was the commodity. very obvious that discounting model, anybody could come in and do it. twitter could be low hanging fruit in terms of their revenue. ten times the valuation for facebook, ten times the revenue now but just beginning to figure out how to push it through, incredibly loyal. >> there is a social network exchange traded fund. it has them all, the good and the bad, a way to be in the sector, diversified, not depending on a big winner or big loser in. is not public, when it is there will probably be a change. the evolution if you want to be an investor in a piece of social network is to use the e t f, spread it among several companies and not try to guess which is which. connell: charles's point. dagen: and on going public, they have to and they need the liquidity of that. connell: charles payne, david, thanks to both of you. dagen: lands end ceo says earlier suppliers did not show any violation after a report of branded with a glance end label focus in north korea. the label belongs to seer's outsourcing of any element of clothing production to north america buying that $1 million fine or 20 years in prison. land at end is investigating and will take appropriate action if needed. charles: the latest on syria. the other big story of the day and the way president obama says he is focused squarely on domestic issues but what does that mean for syria and the middle east? dagen: 4 on the president's serious strategy what we expect next in the middle east, where join by political analyst juan williams. hey! this is just political. trying to get people to stop talking about serious screwups on behalf of the administration and cutback to the u.s.. >> it is important politically if you look at the numbers, the president's approval rating going down and largely a function of democrats buying off the president, independents, women, young people, his constituency running the other way and why are they going the other way? syria. connell: have you talked to anyone? looking from the outside you look at some of the things that happened by accident or on purpose and start to say what happened the last couple weeks? what have they been doing? >> not as bad as your question with success -- suggest. what they think they were doing was being responsive to the american people. the american people don't want to go to work. you have a president out of sync with the american people, a president who was elected to end work, not begin war. i think -- we will take the risk with congress, we think we will win. to quote david axelrod, the president's top political adviser, congress, where they going to do with it now? republicans got it back but it turned out not true. i think that is the surprise and totally messed the mob. dagen: don't you think it gets handed back to the president from vladimir putin? where does it go? does it fall back to the president's lovell ultimately? he is talking the big case. >> if vladimir putin proves to be an untrustworthy partners in these negotiations it goes right back into the president's . i don't think at this point he has the political capital necessary to independently or unilaterally fire those missiles. i don't think so. it could be the case he makes the argument to the international community, not the congress, somebody else has got to do this and i will support you and the saudis will pay for it and it will get done. connell: tough spot to trust vladimir putin. what you most worried about? something real big or would just take forever to play out? >> i worry what we are forging here and intentionally is cockeyed out, iran, china, russia as a new alliance. they can't even get together and all of a sudden they are being forced together in response to the u.s. action. that is really a threat. dagen: one last thing. if you were the president would you nominate larry summers to head the federal reserve? >> you like larry summers. he thought larry summers did a good job. it just happens that most democrats, republicans, democrats don't agree. dagen: most of those wanting to be the federal reserve chairman because we talk about him. i can't wait to. if that man is head of the fed i can't wait for the first press conference. he is going to suffer. connell: won't be boring. will they are won't they? united airlines has to decide whether to honor some ticket sold for next to nothing in an online ticketing mistake that was made. we will talk about that. they make and we were just talking about, larry summers makes fed chief. more smoke around this fire. connell: remember this guy? former imf chief domenique strauss-kahn? he is looking at aggravated charges in france but he has a new job. that is the news. then coming up on markets now. stocks are. how about oil? 774. we will be right back. connell: we are back on markets now. we love this story giving away the airlines. dagen: a horrible experience. connell: the flight delays covers the airline sector. let's bring back nicole petallides. nicole: there's a lot going on in the airline industry. let's forget the airlines and how they are tearing at the moment. dimension some issues with jetblue, obviously a problem there, they may experience some delays throughout the day but at the same time they reported traffic up 6%. and jetblue is up 1.5%, the merger between bell pc, u.s. airways and amr is getting good comments, and looking great. united continental, united airlines, selling tickets, $5 before shutting down the bookings that could be done on the web site. we were not taking reservations by phone. any immediate comments but mistakes have happened before. it is not the first time or the last time. these were $5. this is what we continue to follow and i will even take a seat on the wings. but $5? what a mistake that is. connell: at least we think it was funny. like you said, get one back at the airline. dagen: they are on -- one of my other favorite things, slurpedy with beef jerky and organic trail mix adding healthier snacks options to the shells of its 8,000 u.s. tours. soon to be in store chain attracting new customers with products -- all natural popcorn. the new products range in price from the one dollar and $0.49 to $5, displayed prominently at the front of the first aisle customers see when they entered the store. there's nothing better. connell: >> jenna lee -- said it know that about her. dagen: she is a coca-cola fans. i am the original cheri. connell: more secrets as the show goes on and larry summers. dagen: many are saying he is the president's choice as the next federal reserve chief. we will see. that report out of japan. the white house said not so fast. connell: cheaper corn costs firing up the ethanol debate which we haven't had in a while. some cars going around the track. dagen: they run all of the cars in nascar run on the 15, 50% ethanol. connell: i thought you wanted to see some video of car racing. let's go to markets now, currency, $132.71 for the euro. larry summers and everything else. 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[ male announcer ] one pill each morning 24 hours. zero heartburn. >> 23 minutes past the hour your fox news minute, the taliban attack that american consulate in western afghanistan. militants set of two car bombs near the consulate, afghans are dead with another 17 injured. the state department says its personnel are safe. the rain continues adding to floodwaters in boulder, colorado. emergency crews finish the evacuation calls for thousands of homes, 17 people are unaccounted for as the water isolated communities in the rocky mountain foothills leaving them without power or phone service. firefighters in seaside park, new jersey are pouring thousands of gallons of water on what is left of the iconic board blocked. crews are trying to control hotspots following yesterday's ten alarm fire, the blaze raged for eight hours leveling 50 businesses and destroying the boardwalk which was rebuilt following superstorm sandy. those are your news headlines and the fox business network, back to dagen mcdowell and connell mcshane, tough stories. dagen: prayers for all those people. connell: denying the report did cannot of japan that president obama is in the final stages of net naming larry summers as the next chairman of the federal reserve. dagen: he has a lot of change in washington d.c.. the president loves him but he has a lot of people who did not want him to run our central bank. >> i will get to that in two seconds but the white house took the unusual step of tweeting out of denial this morning on twitter, white house spokesperson weeded, quote, latest rumors this morning, japanese press, are not true. the president of the united states has not made a decision on offense and chair. larry summers is one of the leading contenders for the fed chairmanship. and the race has revved up a bit in the last week or so. three democrats on the senate banking committee have announced they will not support larry summers as he is nominated meaning he will have to win some republican votes on that key committee. 350 economists send president obama a letter supporting him for the job, so at cornerstone macro they say that the race still seems open-end they give summers and yellen equal odds of getting the nomination. dagen: thank you for that, peter barnes in d.c.. larry summers is going to be surly and talked down to be bland talk to anybody like this and i certainly hope the is central bank head for that very reason. connell: asking some questions absolutely. dagen: some really dumb questions to make him mad. connell: don't give it away. this new poll out about congress we haven't seen in a while but congress may be improving in the eyes of the public. wayne rogers is coming in and we will see if he agrees with the public on that. dagen: if you have more ethanol in your tank, the bumper corn crop being predicted and the whole movement that is anti ethanol, 100% pure gasoline, talk about that and nascar and here are today's winners on the s and p. 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[ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? ♪ >> i have your fox business brief. consumer sentiment fell sharply in september. it is down from an august reading of 82.1. the lowest level of confidence since april. people are real concerns here that higher interest rates could slow economic growth. august retail sales came in weaker than expected. americans bought cars, furniture and appliances, but cut back spending on clothing and building materials. increasing the minimum wage to $10 within three years in california. gerri brown indicated he would sign the bill. that is the latest from the fox business network. giving you the power to prosper. ♪ ust minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. connell: the price of corn has been falling. that is why we have this ethanol story today. ethanol back in the game here after last year's drought. dagen: e-15. jeff flock, are you at the track? you are in chicagoland? you did not tell me. jeff: i bet you wish you were here. she is reading word for word. it is at the track. did you know that, as you pointed out, connell, all of the national nascar series run with 15% ethanol now. take a look at the corn prices. that is one of the american ethanol cars. take a look that corn prices. when corn got up to seven, eight dollars a bushel, you just cannot make ethanol work. take a look at the subsidies that are still in place. if you get involved in advanced biofuels, there is a grant and a payment program for that. if you replace oil and gas as a driver for your ethanol plant, there is a tax credit for that. we will be talking to, i want to talk to kenny wallace who drives the american ethanol race car. the wallace family is a very famous racing family. they are all running on corn. we will be here all day. dagen: are you going to the race on sunday, jeff? you should. jeff: i should. if i had someone who could guide me through it and show me where to go. dagen: we will get you on top of one of the boxes somewhere. jeff: all i have is a cold pass. you would get me a hot pass; would you not. dagen: you are talking about the cars being on the track and racing, technically they are not racing, they are just practicing. connell: thank you, jeff, as always. dagen: some dimwitted check talking about football calling it the 20-foot line, you would correct her. connell: that really improved things. all right. where were we? we do have to get serious. talks between john kerry and his russian counterpart continue over in geneva. thank you for coming on. if we can begin by looking at john kerry over the last couple of weeks, you are not the most partisan person in the world, what do you make of the way things have been handled? >> inconsistencies flown from two different realities. the syrian situation is a mess. as a consequence, i am not entirely sure if john kerry knows where the president stands. he stands, however, as a defender of a military strike against the syrians, i think. they have to convince different, multiple audiences of different things. if he can deliver this, and that is a big if, stocks will go up. there is no question. connell: on "imus in the morning," doctor richard haas is not overly partisan, he called the president, i believe, and apt. what is happening? is it something that has always been there in this president? >> the deal is this. the dividing line for american foreign policy is not between left and right, republican and democratic, it is between dumb and ineffective on one hand and smart and effective on the other. this president has wisely and willfully avoided the role in syria. you have a set of bad options. those bad options have led to a lot of ambivalence. obama wants to avoid war. so do most of the american people in the congress and international community. he has to do so in a way that he does not appear to be pressured or panic. connell: vladimir putin wants him to win that civil war. >> winning may not be an option. he stepped up at a moment where he sees a divided public. he sees an opportunity. what he wants most of all is to avoid another unilateral american strike. he wants to avoid setting a precedent where the united states can essentially act unilaterally and intervened. you have an opportunity here, the question is, can you square the circle? connell: thank you very much for coming on. >> always a pleasure. dagen: talking about the federal reserves getting together next week. what is expected to happen? is all the bad news factored into the market? >> it is. we have been talking about this for so long. we know the date on the calendar. we have seen the speeches in the past. the pullback, the tapering, we believe it will occur. whether you think it is going to happen now or not going to happen now, traders have already priced either swing into this. things will go back to normal. we will get back to looking at the newest headline out there. we will go back to the economic data. i think we will continue to see this market trend higher. dagen: thank you very much, jonathan. connell: gold is another headline mover in the markets. we could see prices below the $1000 level. dagen: sandra smith has a safe trade next. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. connell: let's talk about cold now. headed for its biggest loss. dagen: sandra smith has the latest in today's trade. sandra: it is all about the u.s. dollar. everyone is trying to predict which way the dollar will go. look at all the red arrows here. here is gold right now on an intraday basis. down 1.2%. take a look at a one-month chart. gold hitting the lowest level in about five weeks now. jeff, the head commodity analyst over at goldman sachs is not ruling out a move below $1000. he is saying in the near-term, there will be a temporary base. the move to the downside will be exacerbated or probably dip below $1000. everyone preparing for that. silver is getting hit just as hard as gold. it is down 1.3% right now. hitting its lowest level in a few weeks as well. connell: thank you very much. sandra smith. dagen: can they succeed where facebook initially failed? most importantly, should you try to get some of these shares? connell: the fox business all-star showdown. the winner moves on to the finals. stay with us. b markets now continues in a moment. ♪ m and win fiy thousand dollars. m congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. folks have suffered from frequent heartburn. butetting heartburn and then treating day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn. cheryl: noon eastern. markets now. i am cheryl casone. dennis: i am dennis kneale. our panel is ahead. cheryl: stocks overall rising today. robert luna and scott martin weigh in on what is driving the markets. then they will do it out in the final round of the fox business all-star showdown. connell: the cops latest weapon to fight crime. how smart phones are being used. top of the hour. stocks now and every 15 minutes. nicole petallides. i cannot believe we are going to close the week up. nicole: a gain of about a half of a percent. the nasdaq is down. it is a mixed market. it certainly is a winning week on wall street. we have talked about intel leading the dow. there are pieces of news in each of the sect theirs. cheryl: thank you very much. twitter using its own service to announce its plans to go public. robert gray joins us. >> i think i can hear the talk of the town playing all over the place. we have a copy of the tweet to show you right here. they do not have to disclose their financials. they can do it confidentially. we also should take a look at some of the other ipos for social media. you talked about the returns. they are looking to cash in for sure. their sales just $500 million. the ceo will look to rake in some big bucks. they will be looking for an exit strategy. this could serve as a freeboard for even more tech ipos. cheryl: especially for someone on wall street. robert gray, thank you very much. dennis: can twitter succeed where facebook once failed? size matters. in this case, smaller may be better. they spoke was expected to have a $1 billion market cap. twitter would be roughly $75. look at this. facebook was that more than four dollars per user back then. you are paying a lower price, but revenue per user 54% lower. which one is a better buy upon ipo? >> what is the opportunity here? companies have $5 million in revenue. three times the amount of users of pandora. that is probably an opportunity for revenue. it is a little bit pricey. you have 30-40% downside. dennis: it goes down rather than -- >> there is a 5050 chance that wherever you buy this thing you'll be down 30 or 40% in the first year. connell: let's go to charles payne. we can cite all of these metrics, but emotion and sentiment. if it is behind the stock, the stock rises. >> they can look at the facebook model or the linked in model. in the end, they are still selling stock higher than the ipo price. no feathers have been ruffled. i think we had maybe a $15 billion that you know, maybe they sell so much anticipation that the ipo price goes up. in other words, if they tried to snap every single penny out of this thing, it could end up being a mess just like facebook. dennis: is that not an investor bankers job to bring me as much money as he possibly can? >> that is exactly right. the work of the company first. the investor in the company, the company will want to maximize it's, you know, how much money it receives. the investor is walking into that transaction. we were looking at the ad agencies because they seem to make money. charles: this is a social media. your audience will be a part of your shareholders. if you rip them off, you make them mad. linkedin is up 450%. they did it the right way. >> you cannot say that that represents value. if a company loses 10% of their revenue, will this company be a good business? with the share prices today, it reflects what / traders do. i will get all of my money back. charles: the point -- dennis: you cannot see my queue for charles to speak. charles: ultimately, this is all a game of how to play the stock for a pop. you have to find a way to grow this company. dennis: expected to be over a billion in revenue. thank you very much. twitter has to fear instagram. it is a big hurdle. cheryl: twitters ipo news capping off what has been a hot year for an initial public offering. the highest number since 2007. robert luna and scott martin both are here. robert, you, i know, in the past have always liked financials and you have always liked technologies. it is actually healthcare ipos. is twitter and the hype surrounding it worth it to you, robert? >> it is really tough to determine what is going to go on right now with twitter. if you look at the amount of users that twitter has right now versus facebook, it does appear that there could be some upside. i think a big thing will be momentum off the block. we saw that lagged with facebook. we will be sitting back taking a look at it. it will be an interesting story. cheryl: do you think it is an undervalued company, and overvalued company, scott? >> i am expecting it will go up. as we saw with facebook, the valuation was very rich. the ipo opening was a complete snafu. mainstreet got totally screwed in the deal. cheryl: wall street, goldman sachs, they will be the ones that make out on twitter. our viewers may get burned. a lot of them do remember facebook. that is a good point. >> it is pretty new news. people that are able to get in on the ipo, if this is priced right, i think they will leave some money on the table. it will be very few of the viewers out there. the people that could wind up getting burned potentially are the people that buy it on the first day flop. cheryl: i do want to talk treasuries with both of you guys before i let you go. you said a 3% yield is a breaking point for you. >> treasuries have rallied. prices have gone up. they have come down in the last couple weeks. i think 3%, as far as treasuries go, is the line. at some point, the treasury yield on the ten or 30 year mortgage to a point where it will attract investor dollars again because the risk reward will be better than stock prices >> treasury yield at the present, i agree. i would not be looking to short treasuries right here. i think the fed will come out next week. cheryl: this has been a bad real estate summer, if you will. thank you very much. you both will be back later. dennis: television networks making big bucks. how arming your future enemy could eventually cost the net lots of lost viewers. cheryl: larry summers. the report, white house saying not so much. we will have that coming up. ♪ with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. 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[ crows ] now where's the snooze button? cheryl: breaking news into fox business. barry bonds has been upheld. he was convicted for being evasive during grand jury testimony. he has lost that appeal. we are higher by 68 points. a couple of stories going on right now. as far as intel, it is the leader right now. verizon is at 47.93. let's bring in nicole petallides. nicole: thank you, cheryl. you have the analysts talking today. jeffrey is basically saying there is a cheaper chip. they are making a less expensive chip then some of those that are offered by competitors. they upgraded the stock from a buy to a whole. it should bode well for them. from 23 and change up to $30, they believe that there is potential. back to you. dennis: thank you, nicole. reports that fresh shirts with the land and naval surfaced in north korea. the label belongs to sears. it is punishable by up to a million dollar fine. cheryl: smart phones and how they are being used to foil criminals. the damage to businesses in seaside heights, new jersey. we will have more on that coming up in the fox news minute. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that youan't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. ♪ >> 23 minutes past the hour. i have your fox news minute. secretary of state john kerry and the russian foreign minister met today. they discussed a conference aimed at a traditional government in syria. national guard troops have reached the colorado town. thousands of residents there were told to head to higher ground there overnight. the rain continues to fall. new jersey governor chris christie said the fire that destroyed the seaside park boardwalk is 95% contained. it could take days to distinguish hot pockets. it leveled 50 businesses. those are your news headlines. dennis: such a heartbreaking story. thank you. intelligence going mobile. san francisco police department rolling out a new app. justice mobile has the potential to save big bucks. let's bring in the founder and ceo who made this app. nick selby joins us from san francisco. would a cop on the beat, what is the current methods? >> our company did not invent this app. this is a public initiative. when you are out in a police car, out on patrol, you want to talk to somebody. you need to get the information as soon as you can. what this app does is it takes the samm information. dennis: i got that part. what does a cop do today without the app? >> oh, he will get on a radio and call in or he will get to a police car. this app cost about $28 per officer. dennis: the biggest obstacle is government is among the most backward tech users. >> the face of government is changing. they have to sit there and wait for the vacuum tubes to warm up. what we have seen is an order of magnitude decrease in the cost of making this kind of software and bringing it out there. the software causes a culture where people had to find work around to get past this awful tech knowledge he. now, we have to wait for the culture to catch up. dennis: i have to think that's the privacy prudes will, after you guys. >> it absolutely will. these guys have done a tremendous job addressing the security issues. nothing is uninhabitable, but this is very safe. there are a whole bunch of really interesting things that they have done. dennis: nicely done. thank you for being with us. cheryl: coming up, our all-star showdown competitors are back. there is more on the line than reputation. scott luna and scott martin. i am hungry. dennis: larry summers day in the sun. the white house denying reports that he is a guy that will replace bernanke in the fed. we will have reaction had. ♪ life's an adventure when you're with her. and i. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop takg cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. and this pk is the inside of your body. see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber. metacil. when you do what i do, iyou think about risk.. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum latility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives,risks, . read and consider it carefully before investing. risk includes possible loss of principal. dennis: time for stocks now. let's go to the new york stock exchange. nicole petallides. nicole: and lots of movers to speak of. taking a look at safeway. taking a look at some of the other names. this is a beauty maker. we are watching all of the airlines. jeff blew another one that was experiencing some it problems. however, traffic is up for jetblue. you can see the stock is up over 1%, as well. cheryl: a missed opportunity. thank you very much. japan stirring the pot. the white house is denying reports. no decision has been made yet. what do you think about this? this report coming out of japan. >> ultimately what matters is we do not know what is going on. we can move on. right now the federal reserve is doing all of the things we are doing. cheryl: larry summers is a little bit more of a wildcard. >> while printing money, you have wall street. maybe the federal reserve will focus more on his regulatory aspects. at least we know the politics of larry summers. ultimately, if there is another crisis coming, we know that larry summers -- cheryl: and a lot of people tend to forget that he was a george w. bush. that is a very important point that you make. do you think that we will get something small? do you think that they will pull the button on the paper? >> whatever it is, bernanke wants to wrap up his legacy. he needs to say, hey, i am done. i did a great job. cheryl: he does not look so good if he makes a smaller amount of tapering. >> it does not really matter. the markets are forward-looking. it does not matter what they do next week. it matters what they do next summer. ultimately, we do not have the stronger recovery. cheryl: the housing market is getting killed. this is the kind of power that he has. >> that does not change the fact that he says i did a great job. we need to get to the next stage. cheryl: i love talking to you. thank you so much. dennis: remember this guy? dominique strauss kahn. you will not believe where he has surfaced. cheryl: they are back and they are ready to duke it out. robert luna and stock market. we will see who sticks performed the best. we will be right back. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. bounce keeps my clothes fresh for weeks, even when they've been sitting in the drawer a long time. like those jeans you can't fit into anymore. uh...by that, i mean... [ male announcer ] how do you get your bounce? long-lasting freshness. ♪ >> i am tracy byrnes with your fox business brief. office retail sales came in cheaper then expect it. consumer sentiment slipped in september to 76.8. that is the lowest level since april. the latest thomson reuters index found consumers confirm that higher interest rates could slow economic growth and hiring. dominique strauss kahn has a new job. he will become a new economic adviser. in 2011, he was arrested after a new york hotel made that he sexually harassed her. he now faces aggregated pimping charges. that is the latest from the fox business network. giving you the power to prosperc ♪ and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. ♪ cheryl: here we go. this is it. the semi finals. we are getting closer to crowning the winner of our alternate stockpicking competition. today our results are in. robert luna and scott martin. they made their picks back in mid august. welcome back. we have tracked your pics for more than a month. robert, let's start with you. this is the vanguard ftse. here is what you think of it. you said you like foreign markets. you said you did not really like the u.s. >> i still feel the same way. i think that foreign markets have a way to play catch-up. i think you will see catch-up play going over the next year. cheryl: now let's move to stop. here is what you said on the 16th of august. >> they are creating tons of jobs. with oil prices going up, this should lead to more development in that space. i still like it here. cheryl: this is the one pic of the stock. you said at the time it had on him. >> the stocks taking off away from the index. a lot of insider buying right now. that 4% yield is actually 40% of where we are expecting earnings next year. we really liked this stock a lot right here. cheryl: tvs, scott, this was you. at the time, you said bonds were oversold. >> there is no stock that will give you inverse exposure to rates. this is a really important one. if you own treasury bonds, it is a great way to play it. cheryl: who will move on? roberts of almost 2%, scots rose a half percent. robert's second pick, the onll stop plate of over 5%. this scots came in lower. our winner and our first person to move on is robert luna. [applause] >> thank you. cheryl: scott, how are you feeling, buddy? >> scott is a good guide. i congratulate him. cheryl: how do you feel? >> he was great. i think he just played it a little too safe with his picks. cheryl: let's discuss the food really quick. how are we going to get the pizzas to phoenix? >> i have not said this since i worked in ohio as a teenager, let me know what you want on those pizzas and i will get them to you. >> i am a pepperoni guide. cheryl: great competition. we always love you on this show. championship round. we will have week two of our semi finals. do not miss how it all shakes out next friday. they will be in studio. there could be full-blown punch is happening. i do not know. just saying. thank you very much. dennis: as charlie gasparino first reported, jpmorgan faces legal woes. >> it has been spending nearly $22 billion because of the legal and regulatory probes. last year it made $20 billion profits. jpmorgan chase is also saying it is beefing up its compliance. it has to resubmit to the federal reserve its capital plans. listen, nor capital plans, meaning your stock buyback plans and your dividend plans are at risk here. you are having problems. at that time, the federal reserve said you can go ahead with your stock buyback, you have to resubmit by the end of september. if the fed rejects, they cannot do stop buybacks for the end of the year. this is a broad back drop. dennis: would you spend 18 billion or $20 billion on mere compliance, that is unproductive money. >> they are hiring 5000 workers to deal with regulatory and compliance issues. i guess you could say that the government really does create jobs in that sense. the capital plan, it does want to continue with the stop buybacks. it cut in half the stop buybacks. jpmorgan chase is saying, listen, jamie dimon said i am going to beef up compliance and regulatory controls at my bank. he said that explicitly. dennis: never mind that the inefficiencies are bringing on new people. we spent hundreds of billions of dollars to try to bail the banks out. >> citigroup executives telling me personally that we are having meetings to talk about meetings and meetings with the government. they are answering to so many different federal and state governments. dennis: thank you very much elizabeth macdonald. cheryl: time for your west coast minute. the california legislature has approved a measure that would raise the minimum wage to $10 an hour in 2016. governor brown promises he will sign that measure into law. let's stay with the legislature on another issue. allowing illegal immigrants to apply for driver's licenses. california has the nation's largest immigrant population. they have been pushing for a bill like this to pass. an update on the honolulu harbor molasses bill we told you about earlier this week. the department of health is warning. valassis does not harm humans, the amount of fish dying means sharks and other hungry predators may swarm the coast. dennis: the television networks making big bucks from netflix. ♪ our long-term goals, not their short-term agenda. 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[ male announcer ] at edward jones, it's how we make sense of investing. ♪ dennis: netflix and then that threat. a new study shows while the network has received huge money, it could cost them dearly in ratings. the cartoon network ratings down 10%. half of the lineup started running on netflix earlier this year. speaking of cbs, they are renewing a deal. it tells the story of a mysterious giant don't dow falls over an entire town. maybe god lost a contact lens. we are off to see the wizard in 3d. take the wizard of up with 3d effects almost 75 years later. a one-week release of the film starting september 20. cheryl: it has been five years since the day lehman brothers filed for bankruptcy. fox business will be taking a look back at that day was some of the key players that were in the white house and on wall street. we'll also look forward to how far we have come since then. a special edition of markets now. dennis: that will really be something. changes for president obama's economic team. twitter going public. if you have been watching fox business -- cheryl: charlie gasparino's exclusive reporting. ashley and lori will have more details coming up. ♪ [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. 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[ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? the 3 twitter going public. i am ashley webster. laurie has fallen news. thanks for joining us. we will be back. lori: the tweet that has everyone talking especially charlie gasparino. he told you it was coming and has new details. ashley: larry summers will be chosen to replace ben bernanke at the fed as early as next week but the white house says that is rubbish. potomac research group for chief political strategist on why he thinks summers will be an enormous miscalculation by the obama administration. lori: september 15th, 2008. it was the day lehman brothers filed for bankruptcy and the financial crisis threatens the stability of the financial market and the entire global economy. this hour of the warning from mark williams why he says nothing has changed five years later. ashley: for rory, rolls-royce, they are all in lori rothman's garage and could be yours this hour. we will let you know how. lori: drove the mall in from the suburbs. stick around for that. hopefully won't rain on our parade later this hour. ashley: we are in the positive. let's get to the stock exchange, nicole petallides, stocks still on track for weekly gains. nicole: i saw those cars this morning, those are hot. dino they're going up for auction. look at what is going on, the dow jones industrials up 57 points and clocking in a winning week on wall street. last friday close 14,922 so it is going to be another winning week on wall street as you can see with the arrows. a majority of sectors we are following closely from air

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