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We actually -- hi that we haven't seen since October 3 2008 so where.
Now considering we close the year down.
On Thursday nice little day today a lot of it had to do with positive comments.
About -- as stocks in particular coming out from analysts Intel Boeing DuPont.
Morgan Stanley all positive news either upgrades increased price targets all something good and then of course the US main -- sector the numbers were good.
Second group for the fifth straight month the highest levels we've seen since April 2006 of course construction spending down shouldn't surprise anybody seven straight months.
That was more than expected at the lowest we've seen in six years but it's -- private home nobody's -- Nobody's building private homes which is exactly why I say if you're in the market to build one.
Go get him.
You'll get free -- and that viking -- Bomb is that what you want.
-- the kids are looking for these days.
I really good fool our jobs on Friday -- that is where it was certainly -- -- factory construction jobs to pick up.
You know there's a pretty wide spectrum of thought about -- jobs report on Friday.
-- I've heard some economists say we might actually at a thousand jobs I've heard some others say it's it's going to be a little bit less than that and but you certainly want to build on what you did last month.
-- -- -- Clinton's ensued and flag -- -- build on that but I think more importantly to you wanna look at the different things within the report as economists will always say our own economists.
Always says that look look for average hourly work week with its empires.
And then look for where the jobs are going -- they all going to government health -- -- some education as we've seen in the last few months or we gonna get some manufacturing construction jobs.
And I doubt that we will.
You certainly not construction message I mean to me and I guess right US exports continues so that's why we're seeing a little pick up in the manufacturing sector and that I SM number -- may be that.
But the construction a sector pretty dismal yeah.
-- up down 81 -- that happens on the weak dollar dollars sort of like all right now -- that that end of 2009 trade is over -- get back to reality here in 2000 and weak dollar oil up old well over 81 dollars a barrel.
Remember 2009 I was around 82 dollars a barrel so we're right up against that.
On gold last and I saw gold was it was -- up on the days while all metals today silver copper everything pushed up and then.
Corresponding stocks you know just looking at as C acts before -- -- out a lot today so.
Those socks are moving on really that that socks that were under pressure at least earlier in the day that I saw a lot of retailers -- I was -- the online retailers.
What sort of like.
-- -- -- knew those were in favor at the end of last year but he thought -- -- holiday season -- -- to be doing better.
Right now let's go back to what's been making sense tech names like apple like Google -- -- Intel Intel gets some good news today -- tells -- to -- leaders.
And I mean that's why you're Dow's up so you have you have some big stocks move -- -- how does that lead mine.
-- is very quiet actually -- quite a head cold last week.
I sound like.
Barry White Kermit the Frog had a baby that's what I would sound like.
Is that possible and it worked with Muppets and I'm not really sure right now they only they only meet with farm animals did the only -- Hill farm animals a lot of -- -- there's picnic I don't know.
That would be really thick -- I'm Alice LA that's it it's they had to effectively and significantly low and watched an absolute boatload of football which is my thing you -- -- -- New Year's Eve shows not one out.
Every cannot not like in football game it's evil enough -- and what -- -- all -- at all what happened when the clock.
Turned where what were you watching I was actually asleep and I works the fire was at Times Square woke me up.
So that's what kind of led by readable loser I -- still out -- I think the equity strategy.
Equity strategist at Jefferies & Company Craig we talk a little bit about -- the start of 2010.
Mom -- what are your thoughts now that we finally turn the page come into the new year about what to expect -- short term anyways.
Like if you look at the last College Board to eight weeks of 2009.
It was really.
-- -- collective atmosphere.
Of waiting and what I mean by that is we had professional investment management community that it -- -- very good year of gains in many cases.
That's being market indices.
And what we kept hearing day after day after day -- that the click the -- that this could stand to to write about the the end of the year and we -- until the calendar flipped before deploying.
More risk capital.
I'm encouraged to the extent that that's today that's one day alone of course -- we can expect a smooth and straight line from here.
But I am encouraged that this -- -- Some of the most.
I think attractive trade Turkey doubt that it -- and appear to be leading the way today and I think that the tone for.
More likely capital -- -- to work in the marketplace.
Seed do you expect to see cash to come back we still have all the uncertainties out there I'm not sure we fix a whole lot.
We still uncertainty on -- bank balance -- we still have uncertainty coming out of the government.
We're not one -- -- ensure their exit strategy.
I know they say January you know it -- can to help you determine how the rest of the year goes but last -- two -- -- actually finished down.
So what -- weeks we expecting for this first month of the year.
What -- I think that actually think it is interesting contrarian indicator.
In the latter part of 2009 was.
The fact that you had to good upward momentum in.
Virtually all equity indices without the participation.
Other retail investor.
And I think that's actually a positive train indicated I think there's still -- fair bit.
Under deploy capital out there.
In the investment marketplace -- needs to find its way into the equity world.
Six become dominated.
Is that it was last year I think that that one of the stories this year that that will.
-- the markets that if it is I think -- change in the equilibrium level of which investors are putting money to work.
Ahmed -- to tell you that infamous.
That the political uncertainty question about 2000 had to -- one of the things that this market could have become more -- Politically to get through the data flows on Friday.
Will be the employment picture.
Right now the consensus is looking for a relatively small job loss for the month of December hi I at this point is that they were seeing -- -- -- -- -- that -- to -- the economy is actually created new jobs in the month of December.
Craig I was about to ask you about that.
All we get this January effect this week will the market be holding its breath of this report on Friday could be haven't really of this bad sell off on Friday -- it even more so.
When corporate earnings are coming you know if we don't get that top line growth.
Yes I because there's there's there's -- few steps to to this story here firstly of course the payroll number.
I'm like -- I do you think that them we don't wanna -- it's too hot.
Legally move to the point now where.
From Turkey gets.
As signs of an economy that's rebounding too quickly.
It's gonna really caught a question just what the kind -- is going to be for monetary policy tightening is it you -- The consensus not right now that I need 2010.
At the earliest and it is even that is going to be relatively.
To do that and modest.
We start to see this economy come roaring back I think it's gonna.
Adopted -- -- -- -- we start to see notifications that rate increases are creep back into the investment discussion.
-- -- -- Picture goes.
I fully expect that -- the end of most companies is the most important -- being guidance for 2010 on the earnings line.
I think most companies are gonna take this opportunity to sort of bracket consensus expectations that currently exist I don't think we're seeing a lot of companies giving guidance that blows through where current insult that expectations are having said that.
I do think that -- is replicating made that -- the profit picture win now we have this conversation twelve months from now twenty better than where consensus does that say that because.
Was that the upshot of this massive demand contracts -- -- 20082009.
Hours were what was the -- the company's.
It's very very quickly -- can reduce production levels reduce expenses and obviously with the employment levels.
I think what the year that he is the economy recovers is the level of opera about -- -- -- offering leverages.
Profits go up per dollar revenue will be must really kind of surprised people.
Let's talk more about that you know Chris and I were talking earlier about how stocks like Intel Boeing DuPont all upgraded.
And those sounds to me this had to be some of the sectors that you like -- sector energy technology as well so.
I'm going back to that again because as we were seeing -- -- kind of plane retail card at the end of the year probably back to the basics should speak.
Yet -- think one of the good things you have in areas like high energy and materials and for that matter technology.
I think -- good non US levels of exposure -- and practically in.
Developing economies which.
We've had this you know large disruption that guy came up in 20082009.
Of them on the back the credit crisis you -- revert back to more fundamental split that's dictated by more.
-- -- long term strategic secular changes in consumption patterns I think that's that that -- -- back into the energy materials basis.
I think it's technology the other is that it appeared that the plate you've got up pretty heavy non US revenue base which which it was also pretty interesting.
-- encouraged about -- profit picture for 2010 but I think it's going to be probably skewed towards what happened in the middle income statement filed by virtue of.
I'll lean expense -- put -- necessarily a huge rebound back to the top line.
-- -- -- I got about twenty seconds what do you think about banks -- wait and see approach here.
I think that you probably would have to be you know more selective this year than last year.
What we are seeing is that that the smaller -- still have issues in the commercial real estate -- that he focused on the is accurate that would make big franchise improvement for the credit crisis sudden implicating Morgan.
And Craig Barrett thanks so much Greg peck on equity strategist at Jefferies.
Here in New York.
The Washington got to go to watch little -- there although not sure it's a whole lot warmer and wanting things but it was cold and around the country every Jensen joins -- right now rich and -- -- beat.
-- all of our fight congressmen and women back to -- just him but at some point time we're gonna get back to work our way.
Yet you can't use the word warmer here it may be less cold here and I find -- -- and was nowhere near warm here but yet.
I actually never laughed so congress gets pack in about a week the house gets back in about a week the senate returns a week after that they've got a long list.
Of bills they have to -- -- start to finish the health care bill really.
Usurped the 2009 legislative calendar for the past six months.
So they start to finish health care they sought to get through a number of other items they were going to work on.
The state tax is one issue we have no estate tax they want to try to tackle that right now and put it in the state tax there's that jobs bill the house passed the jobs bill the senate has to pass that they have to raise the debt ceiling.
There was a temporary while it was it 290 billion dollar increase in the debt ceiling that happened.
Towards the end of last year that'll take us to about February so that the work on that as well so that there are a number of different tax credits Extenders.
All this stuff they have to work on some of the stuff they want to get to last year they weren't able to do so and there's still that huge health care.
Monstrosity they're still trying to push through it and that's that's not gonna happen in two weeks or so I mean this is something it's gonna take some time.
Protect -- -- I they they got to tackle this estate tax issue quickly because people cannot plan and you gotta wonder.
If they can institute something retro actively adding I'm presuming they're going to at this point I think ever -- -- presuming they're going to but it it almost.
Went to his you know you must feel like it's unconstitutional that -- do -- to these.
Right and that's it and it may have to be worked out through the court system there have been a number of at least initial challenges to what they're talking about doing and that is create a state tax.
That retroactively goes back to the beginning of this year.
The Obama campaign promises that he wanted to keep 2009 levels.
And make them permanent said the expiration of this year than going back to re setting pre bush tax cuts next year he want to take 2009.
Make those rates permanent but still it's much like the Alternative Minimum Tax they -- did.
But in years past it was something that was done.
After the fact and so while folks were filing for their tax reform returns some folks who -- dirty filed their taxes had to put it ended in later that year because congress took too long.
It's creating a mess because you still cannot issue guidance and cannot plan until congress actually passes something because.
Anything can happen you can't -- -- plan for estate tax it doesn't exist so.
You're right everything is up in limbo right now -- -- there are some tax credit extensions that are out there that they want to extend through this year and next year.
Those need to be finished for planning purposes and in right now -- congress has been -- full speed ahead on health care.
They're looking into the issues with the TSA nominees now and airport security.
That's something that's been added to the list that they didn't anticipate looking into before they went on break today that it back to their list it was already a long list.
And it's gotten even longer in the last two weeks busy week for them busy month I should say busy month for you as well it's thanks man looks out what the obviously a lot -- in this month thanks threats thanks guys -- it gets in down in DC.
This -- them they're gonna have to go to the Supreme Court with this opens I -- -- cut the lead Tennessee stuff is going on in my head very easy very easy solution don't -- make life or death decisions based on money all right.
You -- go somewhere else we'll look at your hot with that but -- -- is that from.
Those crossing my mind I would think it's right wing of that would have -- about other things other than those -- like maybe that's what if it's.
US constitution explicitly bans retroactive laws that you -- -- -- Don't wrestling.
Welcome back to foxbusiness.com live happy new year everybody happy for the bulls out there -- 159 points up on the Dow Jones Industrial Average.
On the you know let's talk a little about jobs on Friday we've got the nonfarm government's nonfarm report coming out but we also have.
The challenger grade Christmas on Wednesday that the weekly sort of precursor we'll get a couple of things EDT on Wednesday as well just to give us an idea what's coming up -- -- this joins us right now president towers Watson.
He's gonna give us an idea -- what's coming up now you guys are gonna merge with.
We'll towers Watson became out of Towers -- Foster Forster and Crosby and Watson Wyatt.
You -- good these Jordan Hill as it would have been a room on the side for all those.
Today I agree with him what is -- -- mean now what did this is talk about your -- -- ladies first well bringing together Towers Perrin and Watson -- into towers Watson really creates -- what we believe in the power house in the professional services industry.
Each firm with strong and its own right but what we do by coming together.
He is we have.
Basically broader and deeper capabilities to serve our clients these not only today attorneys in the future and so we're very excited today's kind of the first official day out of -- -- Been a lot of work to get here but we're excited.
-- Europe from Towers Perrin.
You were CEO there you're taking on the -- president and CEO of Watson is John Haley taking on the role as of CEOs -- you guys are.
To head to head here working on this whole thing together your -- part was on earlier on at the end.
And one of the things I thought was interesting that they were talking about with this whole notion of company benefits -- -- not talk about that these days right.
401 k.s were cut who knows what's happening with health care I was meeting on something recently at that companies and 2010 are actually thinking about just.
Taxing their health benefits altogether just not get involved what are you seeing that that's gonna happen -- -- With the we haven't for example seen evidence that companies are gonna -- health care I think it it's such in integral part of the employment deal.
The contract between employer and employee at least for further declines that we see.
I I do think that in a time like this company's really kind kind of question what what should that he'll -- You know because what we need to do is attract the right talent not only retain that talent but engage him in what we're trying to do is -- company.
And even -- -- in a tough time like this one you know some companies have had have layoffs.
They're keeping an eye on talent in a way that we haven't seen him prior recessions because they know this thing is gonna turn.
And to be able to compete in the future we're gonna need to have the right kind of talent so ironically we're seeing companies not only kind of reexamine this.
But make sure that template to really engage.
In what the organizations trying to achieve.
So are they concerned about health care costs for sure.
They're looking for hopefully some relief in terms of that trajectory are they concerned about the cost of defined benefit pension -- sure that's a big financial.
Our risk management agenda that they've got there.
By the concerned that there there employs 41 K -- maybe lower sure that there I think looking come by the fact that well as well as an individual program.
Much more realistically is what's the deal we want to strike.
With the work force today and the workforce of the future.
You anybody forty and under really hasn't had to deal with the recession in the workplace itself.
For -- us it was every year.
We got raises that where at least commensurate with the possibilities -- that that's not happening right now so obviously in that come back where people still willing to take even less money.
Every single year year over year.
I think it you know it's interesting the -- the workforce is not only geniuses you're suggesting you know people under forty different people their forties people there from the people who are approaching retirement and that sort of thing.
And what is attractive to people at different points of their career actually changes.
So when you first getting a job may be that that that's who -- pay levels really important as you get older you realize well you know I really do need health care benefits and funny thing actually age does -- Up on you and I'm finding that out so -- pensions and savings and wellness through retirement really matters.
And could clearly in that continuum when you we have people get into their thirties they look at not only pay but.
What are my development opportunities how is this employer.
Gonna help prepare me to be employable -- -- not whether I stay with this company or not am -- gonna.
Get those kinds of skills that are gonna serve.
Me well over the long so -- the different things now that your.
Conglomerate will do what do you see as did the biggest you know bang for your buck what's going to propel you guys going forward.
You know we serve we're fortunate that we have a great.
Client base and it's and it's basically 75% of the world's biggest companies we serve in one form or another through the combination.
We are broader and deeper in terms of the services we can provide to them.
There's we have three segments the benefits segment where we you know -- some questions earlier.
Talent -- rewards that we're talking about now and then risk in financial services so there's a lot of opportunity.
That and a lot of capability that we can bring that to serve clients and that whole risk management area.
And you can think of that as financial but it's also people risk because if you can't get your people come on board to do what you need you got risks that you won't.
You know perform commensurate with -- competition so we actually -- lots of needs on the part of our client base in those areas and lots of opportunity for us as a result.
Mark we just had a few seconds left here and we -- this employment report coming out on Friday really a series of employment reports later in the week.
What are you hearing on the street you're here to -- you know to the tracks really from managers -- Yeah and I think it's gonna it's gonna be tentative.
And we're not experts are predicting an employment trends but we do you think by virtue of working with large club company's.
I think they'll have a focus on making sure they have the right talent and keeping an engaging account for the long run I think they'll be conservative in their hiring.
But I think what they'll look at is not just.
You know kind of cutting things but make sure that that -- more surgical and across the board if they need to cut maybe making some cuts here in in kind of preference for count that have been in the in the future that sort of thing so I think.
A lot of volatility and uncertainty that we saw over the twelve or -- let's -- over eighteen months has settled down a bit.
But I don't think anybody's gonna kind of predicting you know it's it's kind of victory and we're the oldest is behind us and we can just kind of open the floodgates for hiring.
But I think it's it's a much more stable situation now that.
It was -- -- you know slightly -- and hopefully we'll -- -- 401K matches -- Mark -- as president of towers Watson and good luck with the marriage and thanks for being with us my -- thank -- and thank him you.
Had a phone came -- me and that's important a lot of people they need back.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- This of course twenty billion dollar development -- part of a twenty billion dollar development -- 160 stories high possibility -- now 800 meters.
The next tallest which is the Taipei 101 talents I want F 500 meters and -- you laughing at me.
Well we've just got to laughing together about the guy and you -- Georgia Tech who is getting his Ph.D.
the intent is yes well you know is telling that there is a TV tower.
That law is the tallest free standing structure in the world in North Dakota of all places.
Know some Ph.D.
at -- design that TV tower afford to be that's all probably this guy.
900 residents on floors nineteen -- one -- -- would you live on one -- 108.
When that the kind of freaky.
I don't know I think -- -- really cool I think -- if I'm not mistaken the view from behind an eighth floor is enough and well yes desert but that's all you look at at -- I'm not sure why you would.
Wanna go all the way bomb PLC more desert -- -- -- -- to.
All of all the top forty tallest buildings in the world.
Only one is -- Australia the others are all in Asia and North America.
Not want in Africa and I don't wanna Europe and surprising you have surprising -- little -- that we would have one -- the top forty buildings in -- not one in the continent via.
What do you know what the toss isn't my sense is -- will establish talk about Willis a -- Willis tower in Chicago which is you Sears Tower.
Now I don't know what Willis is -- -- you know.
Not because after I actually we'll talk about that my -- son and I were talking about this this weekend because he's intrigued by all these tall buildings because it used to be.
Did she take that sentenced only to -- And the empire state police and then should have a thirteen on the -- by the way to say it is nothing real quick as Robert Correia joins us in rademan bring you his conversation.
You know that I have -- it's finally full BI many somebody out there really knows what it is immediate doctor -- here.
When I go to alleged -- if it's -- a bridge or building I have a real bad fear of wanting to jump off.
I don't have a fear of heights and I'm not scared like -- -- I'm Erica.
It's if you big -- get dizzy and and they really I -- I gotta I gotta run I got to get off the bills.
-- -- -- afraid you're gonna want to yes.
But so it's not the fear of heights that are not scared of -- at the -- itself I'll look over the Golden Gate -- -- you -- -- getting the job well this thing and anything a little fear of being a base jumper or whatever you know it's kind of suicidal to seize -- answered the.
Bombs if not the Selig in here right away.
Chris it is it right but some people had to I'm telling you but there are others out there that -- this scene -- -- -- of you know it's the day it.
Live prime instead to mind when you stand -- on the grids and I want a job but I don't want to know if called upon myself or anybody else but I wanna jump off my own -- you know look at her and you more what you might if you weigh in on somebody -- -- -- You know go unity they're the only in Robert -- out here you know I know it's a frightening but wait my second -- -- Tracy police quietly get -- some help I'm turning yes first they snapping doctor feeling.
And this problem of putts.
Think it's hot it's doing it I don't just that thing and -- -- completely different person I think it's a -- -- back to duplicate that but other than others here at fox have definitely use at.
On how to get them an activity that was.
We do starting up the with a bang so to speak you know it's it's kind of like Jack you've been a thorn in the Chemical Brothers what -- -- -- -- -- -- this -- parts -- this -- right.
Kind of artist behind the rest of ALCON you know -- kind not you know -- free if you've got contact lenses you may have clean them with that.
Delta I have some of -- I treatments you know talking glaucoma we're talking about.
I surgery he had product's -- then the laughter is dying down now thirty basically.
They owed to the company they're gonna cell -- -- 2% -- the remaining of it.
To al-Qaeda that's who Novartis Robin that's gonna be 28 billion dollars 180 dollars a share here's the kicker though if you bought and yet they did an IPO for this company back in 2002 if you -- those shares which closed at a 164 box.
On New Year's Eve.
They're offering a whopping 153 a share your house -- -- that eleven dollars below the incident -- 77% or so you know.
The other point 3% you know just you media and in other folks out there.
We're gonna be a take under for you guys believe that we would have to do if -- minority while older white -- to sell you don't have to an event as an independent commission that's gonna look into this and it's likely at least shareholders say this -- -- hopeful that it will come back and say it's undervalued to -- -- to up the ending this takes you back to another Swiss company remember -- -- arrival buying Genentech guests like.
Stand by for part two of this because it's going to be -- that I talked to David -- he's up portfolio manager of a thriving for the lutherans -- -- financially on the shares.
He sees this playing the same way he's hopeful they'll get more he had.
Was hopeful that in fact the offer would have been starring -- -- sixty yet not 150 -- you know the takeover offer but he thinks it's gonna go north he thinks -- still get done.
The question is at what price and the question is what does naturally do with the cash that gap they're gonna do a big buy back nine billion dollars in change of their own shares.
Buying them back -- to the level of nineteen billion dollars.
A lot of -- speculate they could team up with Hershey to make a -- it had -- witchcraft is our against the hostile bid in for or they could by Mead Johnson which of course.
Baby formula they spun out of Bristol-Myers last year.
And keep in mind -- has the Gerber brand so you know that could be natural you know.
Sort of synergy if you will and we're talking about if all goes well the end of 2000 and that's what -- say obviously there's a lot of moving parts -- -- -- basically they.
Expansive ambitions for the deal would Nestle's -- a slam dunk -- already signed the deal.
The and it is exercising that call option to get that done it's -- 23%.
You know here in the US that could be the the sticking point but.
-- keep in mind yeah they have the Ciba vision they're gonna bring in the -- free.
It definitely makes sense the deal from Novartis is -- they're continuing to branch out maybe they've gotten into generics have gotten into.
A lot of other businesses.
Vaccines and other one.
That their rivals they got there earlier they're trying to be a Euro John Johnson & Johnson basically hasn't panned out for the shareholders yet.
We'll see that does not they're rival -- -- mentioned Roche has been divesting units and their stock is up 50% higher than nine.
Novartis is is over the past five years still face any regulatory instance.
None that would not really read like a life yet intent but -- have to wait and see if they would have to devastating from the -- care because they're gonna really be dominant you know it is part contacts -- that we big players in the glaucoma and and other cataracts countries as well.
So they're there may be some monopoly movements.
You know -- Possibility they could wrap up all the contacts up into a unit and spin that out to this.
Like is that a lot of moving parts you know speaking of glaucoma you know what I learned today there are more legal marijuana stores in Denver than there are Starbucks.
This is my last little bit of useless information for all of you David I wanted to anyway and got he got and explain what what this has to do with Oklahoma people smoke marijuana helps him with dot com if you suffer from glaucoma medical medicinal marijuana is you would -- -- -- side effects so.
More of marijuana.
Stores legal marijuana still isn't in the right -- of the with a personal consumption no law there you know allowing that it's it's it's it's a -- -- business -- -- I'm experiment is well and Starbucks and more than Starbucks and twice as many as there are public schools in the Denver metropolitan.
-- -- about that stack what's that tax revenue on that addresses.
Haven't seen on easy I mean I think that they're very patterned our viewers are very concerned -- -- -- Phil Flynn and that's kind of and -- -- here's you're gonna jumble of a bridge he's gonna lunch.
-- got the board.
-- -- foxbusiness.com live from sadness that -- I was laughing so hard disk Tom.
From I guess -- or Tom and it is an MD said Chris may get -- -- I mean first in line -- can you ask that you -- a certain of the euros didn't have a -- view that we should have basically I know I guess when you sign that you're getting right Greg got eleven is down on the floor of the New York Stock Exchange at seaport securities and waiting to tell us what that -- 2010 is gonna look like yeah.
I've been here you guys so good -- you start -- new year what do you think -- -- ten thumbs up or down.
Well of course that we're we're certainly ought to of a much better start this year that we were led here.
As I need not remind investors.
January and February of -- here.
Were absolutely devastating.
Even know the Dow -- down at thirty yard they had to be with down 38%.
The first few months -- -- -- 1009.
That that -- 50% that we were down on those two minds seem to be a lot.
So it's so difficult tactics and on top of what we experience in 2008.
So we'll clearly -- you're pretty good start this year.
Though I am not that I am not as positive that is at least the performance that -- the moment that would indicate.
-- -- -- traded -- new year right.
I kind of think it's gonna be an okay -- I don't expect anything it's spectacular.
Basically looking for 111500.
On that now I still think we have a lot of -- he's out there.
Or the good news about the here.
Is that I don't think we're going to be did that the kind of volatility and the lows that we saw.
-- capitulate to -- certainly that was sort of the early part of 2009.
-- -- I think it's going to be an OK year but I'm not.
I'm not that positive in the sense that I think you're -- -- duplicate what we saw.
Teddy intraday highs today going all the way back to October of low -- As this market holding its breath a little bit for this jobs report on Friday if not bad then for the earnings later on in the month that he -- we be setting ourselves up.
For a big disappointment here well I you know I.
For -- -- it permeates I'm completely conflicted because.
My brain and my gut tell me that it that we really need to be caught it provides I think -- kind of setting -- that Clinton disappointment.
On the other hand having done this for almost 45 years.
It's always a mistake of fight that -- and and and taking today's performance out of the equation.
They kids take the at the last at seven or eight months of 2009.
All the -- all the things that concern me concern a lot of people yet the market continues to act well now an -- well without a lot of volume.
And that's simply -- it -- -- a lot of confidence out there aren't a part of the individual investor.
But the tape doesn't lie and so that -- is telling us it's going to hire my brain tells it tells me it's not going higher.
And I think it's a case that don't fight the tape the -- clearly sees something that obviously I don't see and that perhaps a lot of by the folks don't see.
Yet I find hard to believe any of your brain is telling you this market is not going higher -- -- -- -- -- -- -- -- -- -- -- -- -- you -- -- -- on the -- It's well no I think you have to play.
And I am I basically and maybe it's a product debate you know I'm -- -- 35.
But I basically want to have I want owned companies that pristine balance sheets.
That -- -- decent dividends -- cuts.
The dividends to -- are very important that I did we get into a range bound market.
I needed a Dow going from it if I'm right and I hope I'm wrong now because a lot higher but I doubt the -- of where we are now up another thousand points.
I mean is it is an OK year but is nothing dramatic by any stretch of the imagination.
So therefore you sort of want to get paid while you wait and that's why I like the dividend model and obviously I want to own company could pristine balance sheets.
Steady staying away from certain areas stayed away from banks taking a wait and see approach there's stayed away from I don't know let -- let it -- Cyclicals anything at this point on.
Well first of all I own that I -- the banks and I -- some of the big money center banks.
It's it's it's not a terribly constructive that for me basically I'm like a lot of folks.
I hand -- to what what turned out to be disasters positions and I guess hope that would time.
That they'll make -- right and and you know by the way if if if the economy turns out to be better than I think it's going to be.
Clearly that banks -- going to be participating setting might turn out to be decent investments.
But it's an area that I think I probably wouldn't act.
It it's basically give you via bankruptcy banquet K owner BankAmerica the final long term crawl and you hope that -- -- 35 years down the road.
I think technology is an area where you want to be not that -- Not because I understand that area but -- it is an area that probably will we'll we'll we'll.
Have we'll -- top line growth more so than any other sector you know a lot of the earnings that we've seen a result of companies downsizing and and cutting expenses but not -- top line growth.
I think at least technology in -- -- to be on everybody's list again for next year and it was NASDAQ was the blown -- big performer the 2008.
Probably has shot up doing very good again in game two ended 2010.
And let's not forget that in 199090000.
NASDAQ but that 5000.
So it's still 50% below its high -- Perhaps even -- were up 40% rape -- is still room for growth.
-- -- -- And he's probably okay -- you buy into the positive scenario.
But the economy and basically any he has to be a part of that provides as the economy -- -- of the demand for.
Through anything and I guess you can't ignore emerging markets.
Whether it's average bill -- India.
You know that's where the demand that's where the demand for Randy he's gonna be -- -- receive all the growth is at the moment.
So I guess you have to have exposure.
To those markets have an investor you probably want to have -- technology.
And you want to have exposure to any G and I think you wanna look if you can.
Beyond that for companies that good balance sheets that -- decent dividends.
That aren't going -- you're not gonna wake up 1 morning and find out -- got blown out of the water but they did something stupid.
And I went and listened to you until he's let -- saying I think the greatest thing it's having and thanks to -- Rob coming -- our jumpers.
Here my pleasure and good luck to you a good luck to all of you -- I hope they all have a great year and hang.
That you can't -- -- very similar securities for now we are moving -- were a 162 point 00 than.
-- you may -- -- was exactly why we are movies releases.
I could I'm just gonna continue to read our little chat here because everything has been circles they ever can with a vengeance today they're -- full effects are winning resorts is -- not part of the reason I think this is because these these the Las Vegas resorts dumbfounded that people like these stocks UBS actually.
Raised its investment rating.
On Wynn and Las Vegas Sands to buy from neutral.
Not Dubai to buy rating and -- -- -- instead about not -- -- be gambling that that carries this these stocks and it's not going to be conventions or anything it's McCarron well.
-- account that's right so that's a good bank cannot candidate it's not going to be -- basically so.
These both companies have exposure to -- so they -- -- to shore up this is -- S&P 500 leader again.
Upgraded to buy from -- Deutsche Bank now is that just has got beaten up so much in the last year's Deutsche Bank actually.
Raised their rating on the entire refining sector -- I would -- all of them up yet all of them have a nice day.
Sarah just being one of -- -- -- and killing them absolutely.
Ruth's Hospitality Group this is the parents of Ruth's Chris thinking -- can bomb I have Venus very nice century.
-- not they seem to think that.
They were upgraded as well Piper Jaffray upgraded them as well saying they're seeing improving corporate travel and spending trends and it's very good yeah that's very good it's just it's again it was just -- my I thought it was interesting.
Ruth's Chris is perfect for that because it's high high end and -- of the team you know team.
Why can't others see it in some of the -- you say yeah I mean -- that let's go there.
-- -- market Columbus Fish Market initial steakhouse they have a bunch candy technologies to China play I was gonna have a China's stock I think.
They agreed to these big joint venture with three other Chinese companies they're basically getting into this big electric vehicle technology push.
And there Bob and the stock is up that was a had a nice little pop earlier was up 17%.
And my big Biotech.
Rocket is rocket -- -- the -- for medical up at whopping 61%.
It's an acre of dermatology and plastic surgery products they're going to be acquired for her 259.
Continue this energy conversation Phil Flynn joins us right now vice president in charge of -- best -- search.
And he joins it's not about oil and energy and all that is good as the yen to 2010.
Phil welcome to the show.
Yeah -- your guide me Tracy -- -- yeah it's all right.
Why loony guy so what do you think is what we -- behind again what do we know and if it does -- keep going doesn't hold back.
Hey we have a new high for the year we haven't you all -- right now you got.
I get a bottom line right now yeah I -- right now we obvious -- -- very good we closed about beating that left a big gap and we yet.
You know this is a lot of the beginning of the year momentum.
-- -- -- -- -- And have a lot of reason to do so today I mean.
You know you have some very strong economic dated Tim really -- that kind of -- -- that you know out of China with their manufacturing data.
Our data here in the US with -- -- bullets.
For the demands out of oil and of course you have global warming -- don't want to get and it's freezing out here you know from coast to coast here in the United States -- -- You know it it would talk in Europe -- pockets I.
It's called all over the -- -- and try to find one please don't think I don't know there isn't one.
But that maybe the studio New York the only place left in American.
No warming definitely let -- -- that.
-- yeah -- you on -- yeah I crash a film we are.
I'm not talking about that are fliers and -- that they've all been upgraded today elected to soil.
We have finally seen his crack -- turn in their favor at some point time in 2010.
I think it's gonna have to press because -- we look at you know the problem a few weeks ago is that in every.
Supplies in the United States were so I had a normal that.
You know these refineries have no incentive to create supply.
And they had to work off some of that oversupply in the -- prices to come up.
For them to start refining again and I think the market finally anticipated.
That those those are refinery.
-- have to turn around because if not.
This oversupply is gonna go away we've seen it gets waved at me you're looking at the supplies of heating oil that you know few weeks ago were like 30% above the five year average.
They pulled back to about seventeen point 4% above the five year average.
That's a big squeeze in the last few weeks and you know regardless of the temperature in the studio press if you are the Sox -- -- think that it's even colder beleaguered you know -- You -- do your life after you get you can go outside preceded -- for the studio than -- we -- it and I doubt that Jack I think he got.
I think he's trying to kill the commodity goals by conserving energy and lowering demand that's what I think -- right there.
-- the market is so dependent on the global economy what's gives you the most out there because there's so much uncertainty.
What are what parts of the world I should say scare you the most.
Tiny bubbles along the -- everywhere in the -- I mean really the places we keep pocket about you know China India.
You know that it's the big story and everybody you know when everybody tells you that you know that.
That demand in China Brazil and in the brick countries as bubble -- that's when I start to get nervous it's that overconfidence.
There's no doubt that the numbers that we see out of China in -- extremely bullish for energy and commodities for that matter.
But you don't remember they -- have stimulated a lot of that was printed money.
What -- -- print money they just took our money gave it away but essentially they have -- prime the pump.
You know that can't go on forever and in the biggest concern is -- it -- you know people might be overestimating.
The demand growth in China now that it's not going to be standing not that it's going to be incredible but the first time we have a little bit of a -- back.
Or some kind of change in the Chinese armored then we're gonna see.
Obviously -- -- -- so that's a concern the other concern of course it's here in the United States.
You know when that when the market's -- start taking the -- seriously you know the Fed says that they're gonna start use him right says there you know.
Popping bubbles you know you know right now the market today seems to suggest that they they're gonna create another bubble in energy until the Fed says they're gonna stop itself.
It's going to be very interest being played here in commodities for the next couple of months.
They feel real quick to have had a chance to ask you about Exxon and the consolidation in natural gas and in -- moving in that direction and it is that what kind of a sign was that to you folks there on the floor when you heard about that deal.
I think it's obviously a long term very bullish sign on energy but I think a realization that if we talk about alternative fuels looks -- truly proven alternative fuel.
Other than -- It's natural gas and and and now we have the ability to produce a lot more -- over the long run.
I you know I think it's going to be a major -- you know everybody was critical that some mobile few years ago with stockholders -- -- -- -- let's get rid of the management.
You know they're not investing in alternative fuels -- Very Smart traders they waited for them the credit market to come down.
They waited for the investment to come down that -- for the technology to get there and they invested in in a big way Exxon Mobil's management some of the best in the world.
Felt so good to see you haven't all -- when he can you come back on the shelf life.
We'll be back any time just give me a call -- filled in vice president in charge at PNT best restart stay warm out there.
I'm going to have gotten your -- -- the government -- under amounts that are out of style are good for yeah yeah I'm gonna go you're wearing your last year you lost to prove.
I don't think you will -- -- all the way you're over exaggerating and know him being -- Dallas.
Are we come back you know let you know what everyone's doing every 1350 million of them are doing FaceBook in there a lot of dangers now.
-- -- -- You're soon to be yeah.
Good thought that -- when we come back.
-- -- album I do actually think you know go out there.
It's not a power bar yes anyway I'm like yeah it's okay it's that we got.
Continue its once I did -- she -- points up on the Dow Tracy Lawrence Chris -- foxbusiness.com.
Don't forget you can watch the Fox Business Network and cable -- 106.
And you can download this fabulous app for your iPhone so that you could watch this show in kings point Tennessee it's in the east eastern part of Tennessee in the -- -- -- mountains gorgeous place.
And -- -- categorize this morning you tell -- Of -- and you'll on Google and and you know illegal gambling go to the homepage and surrounding the name Google is like something interesting -- that -- that really like some news that -- if you click on it believe it or not it will take you to the why they chose their -- -- witnessing it today.
Considered -- Apple's so I initially medium -- thought it was going to be a crack on apple.
But it wasn't.
He's the birthday of Isaac and so you know on the whole apple fell from the tree whole thing -- gravity.
He became of course but the greatest English mathematician of his generation.
These -- -- optics and gravitational made and one of the greatest scientists the well but today is Isaac Newton's birthday.
That's why there's all these apples around Google -- a bunch of the boards thought that it was going to be there's some sort of crack on apple the company.
You know apple actually had a product called the new in.
I can't remember it -- was that that was isn't it tablet thingy yeah.
Value he felt flat -- -- -- team failures and most certainly did die an ugly death but that was named after Isaac Newton so anyway today -- his birthday in that caught my -- so now when you go to Google and you see something funky.
Click on it and it'll explain to you exactly.
That I like -- outstanding to attack at a -- this year it's.
-- -- -- Credit dot com publicize it need not end this kind of maybe on the bestsellers.
And got a haircut overnight and that's -- that's.
On FaceBook is huge as an -- -- 250 million people and growing every single day.
On and yet this creates -- just FaceBook all you know social networking sites creates a whole new set of issues and a whole new set of opportunities for foster's doesn't.
Not totally and and you know years ago and Hillary Clinton wrote the book it takes a village will now every time you join one of these communities whether it's FaceBook MySpace.
Or a number of the other communities you're now part of a global village.
And it may have been -- to share information with a small village in the old days.
But it's not such a great idea -- -- the kind of time people do and share the kind of information they do with everybody.
So what are the risks.
Well we're starting to become a victim of identity theft that.
You could become a and attack platform -- people.
Use malware to get their hands on your email list and then use that email list -- the basis sending out other attacks.
You may wanna follow a celebrity on Twitter about this celebrity may not really be a celebrity in the links they may send you to.
Could be information harvesting links were not such nice people.
Are getting all the information they need to recreate you so I'm creating a FaceBook page what information delight not split on that FaceBook page -- -- of believes that you if you have this.
Incredible compulsion to receive birthday wishes maybe give them the month and the day but don't give them the year.
In several of the -- Spirit card rooms over the Internet where they sell credit card information and other information.
They talk about.
A lot of these social networking sites as as a cornucopia.
Of birth date information so.
You really don't need to do that also if they sent you a form and these -- the 25 most unique things about me in my life.
You don't need to give them the kinds of things that could lead them to a password.
Or username and you don't need to give them your entire academic employment.
And and and and and -- the histories of all the -- you do you don't need to do that.
That he that -- you don't but at the same time what about -- sites and things like that you putting yourself out there could you trying to get a job does that screw you on the end.
It could possibly that's why you have to be really careful and they've been packs of of serious sites I -- monster has had some major.
-- hacks that have that led to a whole new way that people look.
At and information harvesting and the Internet I mean there was one case -- monster where they went in through literally the front door convince people that they were jobless Krueger's.
And people were flinging information -- them.
And it was the highest fishing response rate in history normally is four to 5% of the Phishing attack this was 20%.
And what was not only horrible for the people who got impacted directly.
But they got into government.
Computer networks like department of state department of health Department of Education.
Because people were using USA jobs -- out so you just have to be so careful just because someone sends you something.
That looks like they might be -- friend doesn't mean you have to click on button and and and when you click on something be very careful.
-- that's why it's so important to have the most up to date.
Security protection software -- your computer just buying it and not updating is like becoming a member of Al club and not going.
Sounds great that do -- in -- And there are some software programs were if you actually click on -- -- that was the wrong thing your computer starts screaming at you.
Virus detected and it surrounds it corn means that you get to delete it.
But this is all part of the process and especially don't share information that for instance is somebody you didn't know.
Walked up to -- a bus and started talking to you and asking for this information he wouldn't share it so why would you share with someone you don't know Frontline actually point it's a good way to think I think six I think we free we give out some online some.
Anonymity creates and -- and I -- you feel more comfortable like giving stuff out had a great to see him with the great -- you happy new year -- -- -- and similar -- new credit -- rules -- coming -- on -- -- Extra people -- -- -- -- you then and have been sealed credit dot com check it out soon you'll have more information on how to avoid getting stand on logically with these social networking sites by the way.
The Consumer Electronics Show is taking place this week starts on wins their -- money Joshi will be there and she'll be here on line.
A special live edition from.
1 o'clock right after us until 145 that's Thursday and Friday so you don't want to miss that this year much better than last year because flashy and -- everybody.
Leaving in the last second so worried about the economy on -- -- yes I don't adult men waste my money with my time is here to full slate exhibitors new products interesting to see how the price points all guests let them do it -- -- come down on some of the prizes on these -- Bonnie will be there.
Again -- -- Friday.
Lift clean and will be there as well -- so we'll have.
Dual reporting when we come back to something else I know actually nothing about child care nothing -- weddings last week this week out there.
There just to torturing.
-- at foxbusiness.com live Tracy thanks Chris -- Chris is -- he does -- -- -- to that child care you have nieces and nephews that a lot of them.
CC you know.
Jessica Nicklaus also knows a thing or two creator of California baby -- LA here to talk about these products in creating that Jessica.
I had three kids we all at some point -- another think that we can come up with something better.
And you went ahead and did it so you have these these this line of tell us about it soaps bath products things like that tell us what you have.
Well Catherine the baby is a full line -- only natural baby's skin care company that has come comprehensive -- -- skin care.
So it shampoos bubble bath lotions sun screens aroma therapy.
Where organic and natural baby's skin care.
Jessica tell -- the difference up between your products and say Johnson & Johnson baby -- we all use that we -- kids in.
That -- that doesn't make you -- and all those things is it that ultimate out of -- Isn't that much in organic material I guess I can -- Johnson & Johnson.
Well we we do use different ingredients there is a big difference.
First of all other ingredients that we source are either organic or -- ground that's and number wine and hang with today's mom that's very important to her.
I'm number two are what -- started this line I was looking to replace -- ingredients.
-- -- agents that are dry stripping and damaging to the -- And I didn't want to use synthetic fragrances I wanted -- line -- be around the therapy using pure essential oils.
And so when Johnson & Johnson they used synthetic fragrances in California -- use is pure essential oils like.
Lavender -- and me -- and things like that and I think today's mom is looking for something more natural and not petroleum based -- Let me ask you I'm holding -- colds and flu spreads there aromatherapy right now.
And I can't get good example is something a pet but tell me it says.
No gluten so I don't dairy or -- yes I there are that I don't know if it -- in regular.
Like over the counter products like Clinton's my son is alert it's not so I didn't even think that -- would be in something over the counter.
Yes that's right I mean there are lots of kids today have either chemical sensitivity east.
Gluten intolerance is -- They are allergic to not.
So you wouldn't think about it but if there's on the -- alien there that's something that your your son probably needs to stay away from and when we when we did that actually that was based on campus our customers requesting that we -- not so we originally had -- and I products.
But about ten years ago we removed all the -- and gluten so late -- dairy from our products based on customer requests.
And it makes it a much cleaner product so although sometimes she might react to product and you don't know why many times it could be -- because you have a sensitivity to those ingredients.
You having a caring for children is very expensive.
Have you found -- your products are obviously being organic organic stuff no matter what it is is more expensive because it is more -- producing it.
Have you found that the market place is open to spending even more than they would normally spend.
In this particular in environment especially.
-- we all know that moms and and -- and parents will pay more for their kids.
I think what they're looking for a really good quality products products that perform products like California baby.
That delivers on its brand promise he and so we have if you -- you were talking about FaceBook we have a huge very active FaceBook for an.
And our parents love California baby and what they love about them is that first of all they do no damage to their to their kids.
Secondly they help to heal.
Either collect kids today have eczema.
So those are things that -- parents are on the lookout for an am willing to pay more for it.
And our products are concentrated -- they're they're not you know just filled with the water -- -- -- field filled with.
Good concentrated ingredients and a little goes a long way yet because this.
Bottle of bubble back it's fourteen dollars my kids would use this whole thing in one time that you're saying that exactly they -- -- him.
So just saying well they don't have to yeah well that's you know I know anything about.
I had yet.
-- absolutely and but it's also a lot of money for your child to getting Easter bladder infection.
That they'll have to fight with for the rest of their lives and I'm you know taking -- your.
Good friend mr.
bubbles and then many times you know little girls and little boys get -- and bladder infections and it's because of they're sitting in a tub about product.
That is formulated to -- and yes it does bubble but it also strips.
That he had delicate -- and mucus membranes and it's something that once you get at bladder infection you are fighting it for the rest of your life.
Twelve years go on strong you're -- sales up 30%.
And grew only gradually joined his success -- joining us.
Thanks so much stick -- -- California baby -- com have a great day everybody else says it's the sense of adults -- that's me various incidents and look at the big.
He wanted -- from -- and I'd die no Satan.
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