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Good afternoon everyone welcome to this year on foxbusiness.com.
Live and foxnews.com.
On strategy -- Chris Goddard Sandra Smith with -- I -- and they're great to be there happy Tuesday abundance.
Of talent that the purple and having a good look -- you stand on how he's going to.
Odd things are going pretty well talk a little bit oil today I think you know and it's and I keep saying there's no more summer slowdown for the market he feels like every day haters.
Something crazy happening with a huge rally yesterday we had -- -- just a little bit the -- down seventeen points right now for the most part though.
There's a lot of bullish optimism and.
And all things considered how like seventeen points the downside could have been a lot worse was a lot worse even earlier in the day to kind of -- a little bit -- -- -- grew -- 200 yesterday.
You know it's the a lot of nerves obviously gonna -- kick in and -- talk about what's gonna happen on Friday with the jobs report but.
Still all in all so far I think it's been fairly positive.
One interesting angle to all of this though is that as the stock market continues to go higher oil prices are now becoming a little bit of a threat -- now trading at.
Over eighty bucks a barrel so there's a lot of talk about her next stop 87 dollars a barrel if the equities rally continues to.
No -- breakthrough maybe because we've been in that.
74 dollars to eighty dollar range really since early may in -- -- in military and 82 dollars this morning.
You know we've seen is that corresponds to the price of the pump clean and -- that two dollars and 712 dollars and 70% average.
Going back to -- where we were up almost three dollars a gallon back in early may before we had that big -- Return hasn't affected prices at the pump yet -- but when you have the general public start to hear all the talk about higher oil prices again.
Can become a little bit scary especially when we look at the cover -- -- Americans turning thrifty fifty -- you wry humor.
It's interesting to lumpy on a day when -- car sales that's big ticket items.
Coach gave -- earnings earlier in the day not so bad for the most recent quarter.
But than nervous about the quarter moving -- -- relying heavily on China again like a lot of these.
-- retailers aren't luxury goods companies are seeing flat in the United States and hopefully things are looking great in China with you really wanna -- that a company that is -- Really -- China anymore.
You please tell me that and a coach I know I've never been an -- it's still -- I own nothing that is coach I think they really are kind of targeting this is only the man.
This code that they do what they sell a lot of flags and laws banks that is delivering a man battery life and -- and Baghdad.
Every Saturday and I had a man bag with a little dog -- a little.
Clueless on the unit will will would you think of me he's questionable work I think everything is surprised gets you millions -- and I know -- -- jabs joins us right now from grand isle Louisiana we're all led nervously anticipating the static kill.
To finally end this the shaft where -- with this -- another delay this morning did we have one.
What was the what the headline this morning.
Who had another delay didn't -- -- that -- -- last night it gonna do this says.
So they can get a static kill but there was a hydraulic there's a -- and hydraulic line down to the cap.
That has been fixed and now they are actually I'm talking to you also try to figure out what you're doing with a man her.
I don't have one -- -- my point I've never I've never been a close the lawyer wrote me off but.
I would hope that's -- Good news here -- like what the -- no fly go in the in the doggy bag with me coming into the you know the musical ability to really use -- you mean.
That's the Multi Color.
I was serving with the idea -- you know Jimmy Neutron with a march.
This is going on as we are talking right now they are actually -- things.
The procedure which is pumping drilling mud -- heavy stuff.
Into the the well bore and then the well shaft.
And if the drilling mud which is heavier -- appropriately worked properly it will push the oil and the gas back down toward the reservoir.
If that succeeds then they'll be able to inject cement and and kill the well Thad Allen said this morning that the well we'll not be considered dead once and for all until mid August.
When they finish the relief wells gets a man put in it that ended well but it's all positive news -- -- -- they're doing that test right now the other headlines.
Is that the official -- now is that BP's well spilled four point nine.
Barrels of oil into the Gulf of Mexico and you know that's hard to figure out what they're really means -- bottom line is that could wind up costing BP.
Anywhere from five point four billion.
Billion dollars in -- If by the government determines BP caused this fill out a gross negligence 21 -- -- -- if it's not gross negligence five point four million.
Adam what's the talk is there about it though longer term picture -- -- talking looking out decades as far as the impact of the oil.
On the bottom of the ocean could have down there.
Right you have yet but the -- -- -- that that is that they don't know we we were worried this marina right now Bayside bridge side marina.
On grand aisle and -- still oil out there machine at least we're talking with a guy from Louisiana department of natural resources and they actually saw pockets of oil Sheen over on grand Terre island today of -- -- get pulled back and has the there were rainstorm early this morning but he also had a discussion and -- you know it's not a popular thing to talk about.
But one of the things you hear people very quietly -- about here's what if the environmental impact of this whole thing is an off.
As severe as his hear the answers they just don't know.
But you know I'm thinking about when we're down -- about a month ago there was a story about autopsy done.
Dead Sea animals they had found an 80% of those animals have died from causes other than oil.
And it you know one thing they have not seen -- the massive kill you know the fish -- and all of that.
What they're conservative Alexander was talking about and is a concern which they really don't know the answer to.
Is has the oil killed the creatures at the bottom of the food chain the microscopic plankton and that kind of stuff.
It's killed that stuff and that's gonna trickle up with a food -- and we'll have long term impact.
The other issue is -- -- the other day the dead zone which appeared in the Gulf of Mexico every summer as algae blooms and you know takes out the oxygen.
It was larger this year than it's been in years past not a result of the oil that is done now.
So unfortunately when -- -- I think the question that we all want to know what's long term environmental impact is that even the brightest minds among us the experts.
Simply don't have an answer for.
-- and she'll be on top of the -- appreciated is always.
I will instead that you gotta say he say about him because that's how they feel it every day because Adam will now be careful about -- -- I hope the good people Louisiana hired.
-- -- -- -- They are they are wonderful people that have by the way there gonna tell you the stories that are also being -- resilient group.
Those for the most resilient you absolutely.
They patterns and confused angry and I'm.
Italian -- a lot of people it's not very natural thing why don't people just leave that area they get with him with hurricanes now oil -- everything horrible.
You can possibly imagine happen.
But they stayed there and I'll play like to speak to his culture that's the left in the United States in the and some of the -- list.
And you know having on a school down there and analysts -- Kenny Lang grabbed joins us right now to talk markets -- the founder of Kendall capital management is in Austin, Texas.
Hello -- how -- you.
There yeah -- -- do we have Kenny.
No we don't come here and had to go back to Kenny is -- if they -- you know I hate us now picnic and I'm here not here and -- I AEA now you get down to business Kenny what do you think about the markets today and really over the last couple of weeks.
While putting it may in June may be behind us and starting a little bit of a rally here -- today kind of hang in on -- yesterday's rally.
Yet today's pretty good just to hang and just what the big day that they got day that we had yesterday I mean it's.
Really in the last months since you got past fourth of July there's a lot of visibility.
Lot of the the fear factors that we had out there with the BP oil spell.
And then the Goldman Sachs situation and then the situation in Europe but the banks -- -- that's cleared up and now we've got into.
Profitability in -- earnings reports and -- men you know very good.
It's investors got a little bit more visibility right now I -- all that -- said Kenny where's should be investor B I know that you like agriculture tells about that.
In terms of where that where the market leadership this is this really switch -- probably the last six weeks domestically it's agriculture commodities whether we're talking about.
Just -- commodities you talk about women about oil back about eighty.
But really the big theme that we've seen is is the foreign markets so we're talking about the you know switch back to Europe emerging markets.
Asia China India Latin America.
And you've also seen you know or -- in the strength of the dollar so money is going back into the Euro and so that's kind of -- -- -- winds.
You know it the technicals are very much better now than that what we saw probably two months ago.
Mean domestically the 200 day moving average emotion you're indexes are above the -- day moving average and that's that's pretty positive.
So we're still in the summer months than still time to be cautious but.
You know who you know we're fully invested right now but we we are cautious on what we're doing.
Given to move the ball goes averages as you just mentioned in the technical standpoint.
Obviously looks fairly bullish but what are you expecting on Friday's nonfarm payroll report number and how much do you think that will move the market one way or another.
That's always and it's always a big marker maneuver in terms of employment.
It's not gonna surprise me if we have payroll numbers down we still have the effects -- the census the season census workers are coming off.
You know the focus will be on.
What what happens in the private sector and turns out and then it and then unemployment you know does that stay at nine point five is a good down doesn't go up.
Well it's like corporations are still gonna probably be holding back it's a question of the people give up looking for a job.
And and our situation not I don't think there's going to be big changes throughout the rest of the year as you get into Tony eleven I think you start to see some changes and in the unemployment.
Numbers I don't I don't think we're gonna see in a big numbers there.
Again we always say if you're waiting for appointment to show up it's really the last stint -- if you waiting for employment you you know you probably missed the market news.
So as an investor it's an important factor it can be volatile markets but.
-- we saw see a lot of opportunities like I said I mean a lot of our portfolios we have heavy international exposure right.
Now and and you keep going back to that point that how important international exposure is and how important emerging markets in Europe far right now.
So it -- Kenny I mean just because oil is now becoming not only at such a big story.
From a trading and investment point of view but also for the consumer there might be concerned there.
Sitting at 81 dollars a barrel today where are we going from here prices going higher.
I mean they could go higher you -- where we had that the drilling ban in the gulf.
You know we're going to be coming out of the summer season so you know it could it wouldn't surprise me if prices drift up into the ninety's.
I mean kind of the key point is that if you go past a hundred then you can really see a pretty big pull back.
And then as you get in at the pump as it goes above three dollars.
Then that's you know you're gonna see somewhat that's kinda it is that consumers start -- we need to save a little bit money on driving costs but right now I mean Texas is still -- Still below three dollars so.
I don't think that's the major concern right now -- -- -- -- us do you think what I think is even talk about a little bit here on the Fox Business Howard is that the prospects of a nice GOP mid term election coming up.
The -- investors are already sort of price that into the market -- evening they will -- leading up to November.
I think they cut I mean they're if it means statistics show returns show when you have basically gridlock which would you you have you know split -- -- vs where it's in the White House.
Then it's somewhat gridlock you're -- you're not -- -- -- as much change and history shows the markets actually do the best if the Republicans can take back.
The house and -- the senate.
Then you get more of a gridlock and I had think that's going to be a little bit more bullish for the markets I mean history shows that's what happens and so -- it looks that's that's what's gonna happen.
I mean investors are gonna start lining out.
To invest accordingly so.
-- from all the polling we saying we think that's a pretty good possibility of retaking the house.
And maybe maybe the senate but he's only -- that already police CNN already in the market over the last two weeks maybe that sentiment starting to push the markets higher.
I think the questions being asked I wouldn't I wouldn't say that's the fact right I would say it's more the visibility of what's happening earnings -- earnings are pretty good I mean a month ago we were still getting all the talk about double dip recession.
I mean it's possible that is probably not probable that we're gonna get double did.
So I mean the visibility.
Investors right now have a lot of -- -- better visibility in some of that the risk factors that were there.
You know with the goal man with the European banks.
Situation that's been cleared up.
So and and then again the BP oil -- so that that was a big negative.
So -- -- cleared up and then you know we get kind of into the -- summer summer months and then we really come back into a pretty bullish season.
-- -- going forward.
Think Kenny what do you say to those folks out there who -- saying why don't want my money in the stock market went.
I look back over the last ten years the stock market's done nothing they might not do anything -- the next ten years what's your argument back to that.
Well that they're talking about the S&P five so if you eat you look about a at a balanced portfolio where it's.
Part bonds part equities if you're looking at small -- if you're looking at foreign markets I mean yes the US was the worst.
But I mean ten years ago everybody was saying put it -- you know NASDAQ -- put it in the market all -- do is buy and hold and we know that's the wrong answer so.
Once everybody says this is the right and yeah -- -- you say no that's the wrong answer is everything okay bonds bonds bonds and and -- and how we we'd guess.
You know with interest rates at record lows.
You know you just gotta wonder in ten years if you can look back and say well again that was the wrong -- somewhat certainly doesn't look one thing says that's the right answer that -- -- that's the wrong answer.
Good changes you have really got to go here but I I would.
Follow up by asking what percentage.
-- average portfolio right now should be in stocks and bonds and and gold he.
That really mean it varies per the investor.
I mean what do you tell it what do you time people right now what's your suggestion.
I mean we honor our aggressive portfolio as we're probably at least 60% on the equity side but I mean I had a hard time telling somebody to be all equities and so I'd like to see high yield in the -- like -- -- -- -- I liked seeing things in there where they're gonna get paid while they way.
And I just think that's Smart.
You know given the environment we've been through where it's very volatile.
And it's tough coming in you make big run and then you see it all go away and you know just -- short period of time with the volatility it's good advice.
-- -- Thanks again you're recommending great yeah.
-- -- Did I who asked not condone capital management at a loss than we certainly appreciate -- -- on TV when we come back specifically Jersey Shore you don't wanna go anywhere at all.
-- and Smith with the -- Dow is down 22 points.
The al-Qaeda as you can see from the graph there about where we've been -- one of those slow summer days from light volume blame Europe 200 points yesterday some kind.
Hanging on to much of those gains that is a good signs him Malloy is witness on the desk he's managing editor TV guide dot com -- good to see him.
As permanent we -- marking yesterday about how -- amazing the Jersey Shore is now second season.
Beginning on MTV five point three million viewers.
This is this a sign of the apocalypse.
Upon us right that many people -- watching it.
I think the side of the apocalypse is when kids outside the eastern seaboard -- -- selectors for characters I think right now it's contained.
But once this comes natural trend all over the country then you probably -- -- -- -- -- cabin in the woods stuck probable.
I don't know the -- -- I just don't get is -- nothing better to watch.
Well there's definitely a cultural anthropology -- I think I mean this is this fascinating tribal people who die themselves or injured how weird dances mopping fist pumping and even.
You know a lot of no it's not the out of it.
Yeah sure I don't know jwoww the situation.
Ali you're my head of the eleven that DJ's name is finally cardiac Paulie.
Chris Syria and happy you know what I don't know why I've watched.
Too -- minutes of the first episode of the first season.
But I know all of their names I know all of ballot on.
The situation makes a million dollars a year in endorsements and whatnot so what we know more about them and then actually people -- Michelin -- to be good news for MTV they want people want to show them already.
It's what -- -- themselves so well -- -- in the second season that basically just started playing the characters they weren't the first season and they all know this is my catch phrase I've got to do the situation they -- -- -- -- -- -- Snooki knows she's supposed to get -- and fall down I mean no basically just following the Prius -- -- That's a how many people are after watching this show.
Well upwards of five million but.
You know how many of them want -- for somebody combat -- to another hot -- I mean is it getting more viewers and American Idol and rebound and on American Idol as the champion all the way it's probably there were American -- us cats but for a cable show I mean the cost nothing to produce a system went to -- out of the beach.
The contract has been incredibly profitable should she just got arrested is this -- do you think -- a boost ratings and.
It could be this is where it gets a little -- Andre it looks though and disorderly conduct should have beer bong.
We don't know what was in the beer -- if I -- -- Coca-Cola.
That being like me you get into the issue here of -- these people in on the joke.
You know some of them definitely seem like they are Snooki kinda wonder I mean you're getting busted for this.
Will we see a drop off in week two weeks three weeks what was a lot of fascination because like I said everybody now knows about these characters are they'd never seen it before they wanna see -- one and then now we'll start to see -- Buffy thing.
-- last season a growing group yes I mean I think you're getting this season people who were really following the show the first time around another heard the jokes on late night and everything else -- and you know they -- to what's -- all about and maybe that maybe those people to other friends and it could get bigger and better and.
I'm trying to think about when we've seen something like this before and it was really hot and then it just fizzle out I mean.
And -- think Jessica Simpson reality show that was it.
All the buzz when I was -- on TV but I mean this could go away tomorrow right.
Absolutely and I mean.
-- attending a lot isn't really good for a career in television I think I -- -- -- -- -- along these guys who hasn't.
It's a good point and any other part about this too is MTV the actual network community -- 19 years old this past weekend.
They certainly -- a lot different now than they were when they first started.
Where -- they heading because MTV VH one it's all a reality now isn't about that -- music television anymore but how much can they push the envelope what where's the next reality show coming from.
What they've got to try to find the next sort of this like this type thing not that this is this is kind of a freak show kind of a sideshow I think.
But they've got to fund the thing that really watches on people and then the kids will embrace and go that's what I wanted to be here.
You got some that I've never heard of before.
And I think he demographic.
Of this show are people in their forties and fifties I think there's a few I mean my mom measurement in Jersey Shore but it's mostly young people -- watching going like a.
This isn't real right.
The imam is that she's -- right now for mentioning her in the Jersey soon -- it -- Thanks candidacy is little evidence to -- managing editor at TV guide dot com we'll cut your -- are cellular call -- -- -- involves schools one that I -- -- you are not on this list let me say something.
The Princeton I don't know if you want to be -- -- -- -- once -- I think.
The Princeton Review gave us there a list of the top party schools in the country here you go right there.
On number one the University of Georgia by the way that's where I -- MBA from the university of its.
I'll -- does that tarnish the degree what does that make you more about -- let me ask you that I think it -- -- university Mississippi on their Sheppard would be proud -- elements -- Smith went to school now.
It a couple of interesting things about this -- they also have a lot of different.
Rankings the Penn State is on there Ohio you went West Virginia who studies the least the University of North Dakota stone cold sober school BYU.
That these students Brown University -- least happy students.
Fisk university in Nashville Tennessee which is strange because this is known for their jubilee singers in the least beautiful campus New Jersey tech world.
And our X that's in Newark because so you can only imagine.
I have a one promise this and you could understand coming from Baton Rouge we went to school lets me with the school -- -- from -- Columbia.
Was the -- was the greatest college town Colombian and.
That's New York as a college town a dozen -- college towns are Athens Georgia Boulder, Colorado.
That's because you had that type of college experience others who'll have had a City College experience.
Might appreciate it.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I had the united several older without the university Colorado.
Is an outposts around -- you know I mean yeah you absolutely need those -- so that's my thought process and it was congratulations you -- Georgia I think -- great level of price yeah Chris I really -- a lot and as you can see I'm really using it we're gonna take a break.
And we'll be right back got to hit the beer -- -- -- whoever is singing is OK we're down 24 points and -- -- -- Baker Hughes oil services -- -- -- -- get punched in the gut today down 13%.
Is the worst in the S&P 500.
Profits fell short of targets is in key regions they said.
They -- the drilling moratorium is gonna have an impact on the profits moving forward at this big -- he's down 13%.
Code should be mentioned them earlier down four and a half percent on the day profits of 34% but.
Basically in line with expectations a city and have gross margin pressure in the second half doing well in China.
Flat here in the states something I don't mind why is there any one of the dogs that Dowell recently.
This seems like it always is.
But if you want yield you wanna dividend notify today's -- and up their dividend they were up 5% on the day.
They beat and beat on the top and bottom lines as well and better guidance.
Procter & Gamble he wanted to like the Dow is down -- most and that's -- -- seven points is PG down three point 8% today.
Fiscal fourth quarter profit down 12%.
Cautious forecast in just the standards do we get a lot of these consumer staples companies -- kind of disappointed a little bit you know -- Palmolive last week.
Yes and and not only that the stocks it's kind of a double whammy for -- for the stock to take a hit because a lot of folks are moving away from the safety stock in to see the -- pick up and they're getting -- -- you -- Solarfun not a safety stock that's the number one seven point six this as a lot of fun though if you if you were there this morning and you're still and it's a lot of fun blow away earnings they -- they ever had fifty cents a share we're expecting 26 cents.
This Chinese company they raise their outlook in -- want chemical that's -- South Korean company agreed to pay a 5% premium for 49 point 9% stake in the solar fun.
Speaking of fun -- calls to his penzance -- -- and good to see it.
-- ties are yellow and on the day today it's a good look William gets caught up last night.
Not so much that I think this is a perfect day for you to be here you're always looking at -- sector -- and you know you look at the big fix the global picture as far as investing is concerned.
What is that I -- PM ETF you're now looking at lithium I've actually been on this looking train for awhile and I night on lithium in the lancet.
Let him what does it use -- what these.
If you did everything we have in my Blackberry.
It's good to -- we're gonna stick with that kind of articles on the ground -- -- -- it doesn't affect your battery within yourself I happen.
Yet battery that goes -- laptop -- and more importantly Arctic that did Tesla cars that came out those electric cars.
Thousands of -- that he and ion batteries the Chevy Volt so all these new cars are gonna be watching this -- -- -- -- Seattle IT pretty easy lithium.
50% -- invested with him miners in the -- -- actually battery makers because that make the -- they go in the cars and nasal device -- -- -- -- -- that it's got the companies that minor metal and that it's got your top three rescue and which is Chile mining company FMC and Rockwood Holdings of the three largest -- miners I don't FMC ready for clients.
You know I allies say not yet just came out last and how they buy in a little bit pull back I'm okay.
You also like Brazil -- several different ways the flavors of -- your perspective you like PR.
-- is a small cap resilient yet so you're investing companies that you can best thing.
Here a New York Stock Exchange is like eighty yards from -- trade here you know I liked this better because this actually takes advantage -- of Brazil in the consumer.
I think about the World Cup coming here Olympics are coming there you know a lot of local companies will benefit from that that's -- I -- advantage of it -- small caps and without.
Find out one stock this diversified therefore he's a great entry into just the actual Brazilian -- I've resilient economic.
So a lot of the larger cats that I've done really well in Brazil the DVR is the world then sales one of -- -- my -- You're not looking at those in with this one.
I don't -- DVR look I think this is a better way if you -- pure play on Brazil because your body and it PB RV you're buying into the global kind of -- the Chinese buying he had a lot of exposure to the global -- this is just Brazil.
I don't think that's going to be such a crazy story by -- -- I was reporting -- caterpillar yesterday and was looking inside their earnings.
For the second quarter.
He had none of machinery that they bought.
And a three month period doubled.
From the year before.
Brazil yes yes Brazil because the infrastructure -- to be ready for World Cup and Olympics and this is it.
Not a Third World country but it's still emerging market that they have to do amazing infrastructure -- need all the factors that move this earth forever -- no way they're going to be done and ready this.
What I already but somehow they and elegiac and how many do I think how many -- -- and actually getting China ready -- -- -- -- -- that's the -- -- -- -- nothing -- with Brazil -- I would be scared to death.
To go into one of those days because you know the last six months and just get it built at all costs you thought I -- -- -- on that our coverage on CNN.
The personnel are going through our campus and alienating.
Women who build another -- gone.
Because of skin is so creative and I don't Rubicon Technology RBC this is.
A smaller player.
The big leader in this sector is the only.
This is actually supplies a lot of the the back and two companies such as tree OK so they can really benefit.
From a lot of different angles.
Oh and this is that the future of -- -- really keep telling about it yet alleviate I want another -- so root cause a small player really good earnings it just pulled back about 15% I think today -- -- this week.
It's -- -- buying the stock little aggressive but.
I've been hearing there's something about there's such a variance and a leading lighting companies you can't just say hey I'm bullish on -- lighting cities around the globe that are putting -- -- you have to look inside the company because they're having a major problem.
While some cities are going in and putting LEV lighting in that all the stoplights -- on the city some of them are burning out faster.
Then they originally anticipated and it into the cost savings isn't as much as they.
And the problem is it if he's innocent tallies are going bankrupt this stuff that is an extra money for it new life since my dream for example one L that's the big that's a leader in this entire sector data contract of Wal-Mart so wal -- expanded so you're gonna see Wal-Mart -- -- -- is gonna have.
BC ballooned from -- com what's your thoughts on the -- real quick just in general other.
-- I love the market here.
I said -- two days -- -- guys NBC Xavier -- stocks now when he you know stocks need deviation is the most attractive levels in over a decade except for the six -- post Lehman.
You have to buy stocks that you're going to be in the market mean what else they -- but we need to get a two year yield up point my outset what about a well.
Well no I ran up the last week -- 81 needs to win.
Okay I'm ready -- come -- -- -- -- -- oil today -- and no I wonder how do you think it's gonna hit ninety's if it's so you think it's gonna go back to a hundred.
It's night before had seventy and it will hit 100 a quiet early next year down ten.
Beautiful stuff -- good to see and thank you thank -- but I know you think that boulders have been a market town.
Then you have to tell -- exactly I had to say without university that's how does nothing for assault and helpless with several schools.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And it chased down the biggest parties holding that yeah -- body was a time on the list and have a call thank you very much for your hands -- okay so -- -- -- -- Look public -- is the housing market -- This isn't really happening so we had all -- government stimulus -- it played him.
We had the tax credit for first time home buyers -- That caused to -- the market that caused the market pick up for a little bit and -- that everybody got all bullish on the housing market here in the United States.
And I tell you.
We just got the National Association of Realtors index of pending home sales get this down two point 6%.
For -- and that's had a month to month basis down eighteen point 6%.
From the same month last year -- nearly 20%.
We thought it was bad.
This from this month -- in June last year.
This 40% worse this year finally and as after all the tax credit respect expired -- as this goes back to the argument that we heard from so many economists who said.
All that's gonna do the government putting in place that first time the home buyer tax credit -- -- gonna do it's it's gonna push up those that were waiting.
To make that person is not new homes -- just break cash for clunkers and and spurred it up there.
Willingness to purchase the one thing it didn't bring in new buyers from cash for clunkers.
Is we had that spike right and it went way up is that we got in before the end of cash for clunkers that he had did.
Drop off a cliff average cash for clunkers but you've seen a steady rebound since and he drew a line.
In this from -- -- of total cars sold every month -- from where we were before attacked for close to where we are now it's steady upward will we get that in housing at some point time after -- fall off the cliff with her falling off right now.
Will we get the steady rebound because may mean.
Then you'll have people that were thinking about buying.
In June July August put it off start buying.
Just -- you hear me keep pressing on is gas and oil I think -- pressing as many real estate agents around the country on the question -- whether or not we're gonna see a double dip in housing.
And the answer I get 99% of the time is that things are gonna get worse -- housing they get better life he says it Debbie downer today on this I.
-- -- I I'm just telling you what I'm hearing is that the housing market's gonna get worse -- the numbers you got today from the and they are are proving that.
-- so as a result the stock played the consent.
You know he's you know they -- like crazy and it's been a lot of volatility that some of them have bounced back told brother's ex saturn's.
Seems like we're getting used to hearing these numbers on housing and doesn't because we never -- good on housing every single week if that -- pending home sales new home sales existing home sales.
I thought I hit driver on Chicago driver on new York New Jersey area -- -- for sale around on top American Manuel and hate the market is down 32 points right now -- taken a little bit of the did downward not exactly sure why release of these auto numbers come -- in.
-- forward to July sales of three point 1% you knew that that some of these and it never had a huge numbers in the spring it was gonna sort -- -- -- catch up to little bits of board up a little bit.
Hyundai is up we'll give you those throughout the course that showed -- -- in -- start trickling in but I -- -- letters of 5%.
Or like you said though that pace -- which we've seen auto sales pick up has slowed and that can be sort of but downer for the see how that moves the market moving forward when we come back.
-- zappos is gonna join -- is a great company -- you -- row I'd order she's example I have your rights women's.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Do you get their -- -- that didn't work and whether you get a coach bad.
That's the question.
Welcome back everybody Chris -- or send us an affair and we have an amazing guests right now ready but -- -- -- -- and potentially a lot of other things.
-- CEO Tony Shea -- -- -- -- you just flew in from.
Las Vegas they get yes worried -- -- Vegas Vegas outcast them.
Amazing companies hopefully it does he go on line and that the designer items that don't have -- -- themselves.
Their items are sold through your website yet.
Well regardless of whether they have what's there how we work with about this.
15100 different brands and we -- -- where we're expanding the clothing -- themselves and beauty products housewares consumers so.
We've basically been around for eleven years grew from -- sales in 1999 to.
Not doing over a billion dollars and we present ourselves every year.
And then recently.
Selling to Amazon.com.
Now how how is that impacted.
You're business your company essentially as -- not well so the acquisition was officially announced almost exactly a year ago last July and it closed in November.
-- it's actually very -- And for most of the acquisitions that Amazon has done because most of them they -- the plan is integrated into the parent company.
As a precondition for even talking about the deal we let them know we -- its remaining and in -- contained.
To continue to grow this Apple's brand and our culture our way of doing business -- -- so.
They've kept their word basically instead of flying to San Francisco once a quarter for a board meeting we now -- is.
Seattle wants -- So -- so -- at what stage -- you now listen this is a done deal.
Yea cause in November of -- we continue operating independently so if you come to our offices in Las Vegas you would have no idea so how is gross bookings since this acquisition took place what that was one of the reasons why we wanted to do the acquisition is so which would have access to more resources and grow faster and our Q1 this year our net sales were actually up almost 50% year over year and so we continue to grow.
One of the things I thought was fast things and about reading about your company about that -- you constantly make mention of culture.
What what makes your culture still much different from others do you think and and rises might even successfully -- well.
And for us we have ten core values and so we hire people whose personal values -- the corporate core values and a lot of corporations or companies may have.
A common core values are guiding principles or whatever but the problem is usually the very lofty sounding and kind of read like a press release the marking department -- out.
And maybe you -- about it on day one and on orientation and then just because it's meaningless -- -- -- lobbying law whereas we wanted to hire people.
You're -- actually -- dual core values mean we're willing to -- under -- people.
Probably the one that -- us up the most during the hiring processes be humble so.
There's a lot of Smart -- people out there that are also -- it's just going for us this is not a question we won't hire them whereas -- a lot of other companies might say well.
This person might be annoying -- the wrong -- better.
He's gonna have values that he -- at all.
Embrace and drive changed.
And we also have one that's called create fun and a little weirdness.
I like that one from Chris Perry does I don't know who -- And one of the hottest selling items.
Well it's really seasonal so nineties a brand that's really strong with us right now and Q4 and when we get in the holiday season.
Season is one of our big sellers step up.
-- -- -- -- -- Difficult visits and -- thought he'd zappos is known for shoes that you -- from the start me that's really where you need to neat how difficult is -- to expand the clothing.
And you convinced that people.
That's great shoes were still gonna have great -- and now you become -- -- all -- other things.
Wolf for us our focus has really you know we start out -- his time but we really -- to build the brand to be about the very best customer service and so.
Included in that are things like free shipping both ways -- 360 -- Is this as a -- about the company is I cannot stand Chris I don't know if you order things online that much.
You -- zappos they send you -- the easiest thing doesn't work out just walk into that your local shipping star.
Just handed to -- they know exactly what to do it it's seamless and you get a receipt right away that you forget him.
We pay for this certain -- so basically it's just educating customers.
That we now have clothing and it's the same service.
-- from an entrepreneurial standpoint you sold it was this was the first company founded the F 24 years of age.
You sold it to -- Microsoft -- exchange for 265 million dollars.
If I sold any of the 265 million dollars -- -- -- -- -- you know all kind of sailing around the world and -- do they work for a little out you couldn't help yourself with a jump right back -- could well.
Ways I try to stick around -- and basically left after five months and because I wasn't too happy Microsoft and a big reason why we ended up selling the company was because the company Coulter just went completely down him and I remember when it was -- -- return us that was kind of typical dot com we -- it was a lot of fun working with friends and and we didn't have known better to pay attention to company culture.
And so that's really what drove us cellular company and so.
Really after that less than a year investing in and realize that for me investing was kind of boring I really miss being part of building something and so.
That's when I got involved with what's the -- what's the future look like for your company.
Well they -- and we.
While the clothing is a big push for us for at least the next several years we've talked about wanted it to be established airlines has just about prayer service and that was inspired to get -- the airline that -- anything yet because it's so annoying when you.
I guess I just try to you know get involved with stuff that seems broken -- -- what -- what do you think is the way to solve that what would you how would you be different.
I there's lots of randomized but for example -- Look like when you go to a -- -- like he goes in a bar in your hand you're hanging out in this one place for two or three hours.
Instead what do you -- going instead of going up on an airplane -- deficit somewhere years.
Going into like a bar for two or three hours and we want to barter -- your -- boy insanity -- you stumble out of me.
Anglers and I don't know or imagine like flights are delayed you.
Get annoyed everytime a fight is -- but what -- for every minute that's delayed and you get paid a dollar.
And then you would -- Andrew -- Look at that there are receiving right so that your book is that delivering happiness and a copy of it right here it's a couple things that jumped out -- -- that this book.
Instead of giving me a bunch of people on the back that's love this book from some newspaper that I didn't know I care about giving it ten reasons.
Why should read this book -- everything -- -- -- the easy quoted more obvious in here from the matrix and tell Soledad the scenario -- so again.
And -- you're not even the -- here it is right they're not even the -- equal and more it's.
One thing -- I noticed about this if you talk a lot about service serving the customer how that's important in the book.
The individual customer is serving that customers no longer priority for corporations they're worried about how many millions of customers they have the way about this quarter vs last quarter I found large corporations one -- them Venus to Seattle based coffee company it's.
That really doesn't care a whole lot about serving.
Meet Chris Cotter at 5:30 in the morning when I'm trying to get -- -- -- guys.
-- -- anymore.
Boycott but to me I think that's gone do you agree with that in general.
I think it really depends on the company and I think we're actually and M 8050 years ago companies felt like they had to choose between maximizing profits are making customers happier employees happy event.
I think we're actually at the beginning of this special time where because we're all hyper connected through.
You know Twitter FaceBook -- information travels so quickly that it's actually possible -- I haven't often make customers happy make employers happy to have that drive.
Growth and and profits and that's really part of the.
My -- we had to -- attorney Stacy your -- as always -- -- -- -- -- -- the honor to welcome the jobs that happens I can't move very very stuff that's out outstanding thank you so -- -- -- to initiate CEO of zappos.com.
Important deals that our guys get.
It isn't a lot of important stuff.
He's got to see -- -- a lot more important in center but nobody is more important than Jeff Flock joins us right now from what the -- Illinois talk about the new car sales.
And we're talking about it earlier about Florida about 3%.
GM was -- up about 5% Sanders said earlier Jeff how we look at on the day.
Well I'm just to just got a heads up the Chrysler is about to come out which is why I'm sitting here you -- table trying to look at the your computer.
But I don't I've just refreshed again and Chrysler know.
But both I would say GM and Ford both somewhat disappointing based on.
It's funny here's my little sheet that tells me who predicted what I was like to see who predicted what and what to.
What went wrong.
A true car which predicts these things says -- was going to be up 23%.
They were five.
Edmonds said 9% they were up five Ford did true car predicted eight point 4% -- -- four point six.
Edmonds also had him at thirteen under four point 62 so.
I would say somewhat disappointing you know what I've seen is a trend though and its interest and maybe have but Bob the following around here.
The -- that are actually less fuel efficient.
Did better than the ones that are more fuel efficient for example -- over there was down on the month and the mustang next to whip up on the money.
The trucks did well to explore the old explorer did well the F 150 truck did well for Ford here GM the cadillacs did well.
Their trucks did well where's your veil and the cobalt the fuel efficient little cars they were off so.
Short interest and.
So I see some folks -- in there behind you -- Jeff what are you hearing among customers I -- have some of these.
People been waiting in putting off a new car purchase and maybe now they're out there may be -- a new fancy cars spurring them to get up and shop.
Well I do think there's good product out here people -- -- asking about that we had to recommend this morning ask about the new -- now that won't be out until.
I guess it's deep winter they said winter I think probably be around December or January get that new explore this is the edge by the way.
The Ford Edge which is the cross over the new explorer is gonna get mileage it's as good or better than the crossover.
The explorer is it's not -- -- -- four wheel drive anymore but they will have stability control that they say gives you is good attraction as a four wheel drive.
And it actually has.
Is they say gonna matched the Camry the Toyota Camry and six so wonder so if you can get up Ford Explorer.
But the same mileage of -- Toyota Camry.
That's probably some that's going to get some traction.
Jeff thank you -- largely -- and as a yes exactly well said that ended all thanks Jack but -- Just like there's -- -- in north Aurora Illinois in the numbers are coming in a little disappointing to be CC at the end that is Sandra.
The total annualized number of vehicles was eleven point one in June it was a very disappointing month they deliver about eleven point six million to twelve million.
In July -- that we may not here.
Right now very not a make your pride just happy to see your sales -- we're gonna talk about advertising when we come back how some ads you are memorable.
But how they may not work -- when -- going.
Poor old spice comes -- and it's good point.
Welcome back to the -- on Dow down 32 points when we are in a holding pattern right now we've been here for about twenty minutes.
And down 32 and it's where we are right now we continue to get these auto sales numbers so we will.
Continue to keep you updated all day long on the Fox Business that -- So far -- that 101000 level a -- that everybody was getting really scared down there we're in and out of that -- Kmart but we're pretty happily above that tends.
Seems like -- -- hearing more about 1110101000.
Jenny Smith joins us right now she's present Smart advantage they are an advertising consultancy firm hey Jimmy how are you.
I'm fine thank you feel we were talking a lot about TV -- -- about the Jersey Shore I won't bore you with those details.
But something else that's catchy everybody's eye on CDR commercials and most notably these old spice commercials with.
The man on horse I've got diamonds and all those other things and -- the big question out there is -- we all know about the commercial we know about the guy.
But do these commercials actually work.
Well good -- I disliked it.
Correct I'm not amortizing specials and the marketing specialists about the message.
And the spice and excuse me when he first came out.
They -- were not selling more at least from the information I was gleaning some from reports however I think now sales are up.
It's an interesting thing because I think the social media has really blame their sales.
I also I also reviewed some of their ads.
Some of them the personal the guy is terrific and down the -- ads are spot on with the way an advertisement should be.
And they have a solid message that clear strategy and they stuck to it I would through some of the other ads that there's a whole host of them that I have been.
And some of the murder and then got a little carried away with creativity and that's that's my concern with my clients and we sell them.
You know you've got to be spot on with the message to be sure you've got the meeting the -- Some do some down the old spice.
Commercials the ones that talk about this being.
-- and -- play up the masculine any other I think that's on target.
How so many others.
Let me see I have to tell you just from the -- aspects.
Old spice that's sitting on any on the pharmacy shelves in a good looking guy Chris potter not gonna look twice -- that because he's gonna think of his grandfather's father.
And now the company regardless of whether or not you think it's affected did not mention the masculinity of the product.
I think this is shed light on it it's black old spice back to a newer generation.
-- this exactly right it has its bringing it it's making it contemporary and I think that's great.
If -- -- now recently ports I just saw in the last couple of day is.
A test his sales being up they've released some figures that are not typically really east.
Now I don't have any -- that personal data from the company that shows the exact sales or the trend from when he -- first came out.
But I think you -- -- I think that the idea of bringing back a very old product and trying to position it.
For younger generation by by showing that you know there -- their strategy is it's masculine it's that the guy who wants adventure.
And down so as opposed to what they call the first true.
Since that are out there so that -- their strategy I mean that's the key.
And -- stay on strategy.
Have a tendency to work if they have a clear cut message -- -- and get your attention which this one clearly does.
It -- to stay on strategy which some of them do very well -- have to believe it.
And so far I think that when it meets those requirements don't -- -- I don't know how well it's gonna carry or you know but right now looks like it's doing well.
On the other one that I like -- I like Geico but it's interesting they have -- Ad campaigns running simultaneously.
Yet they all seem to do a very good job of conveying the message -- agree with that there.
An absolutely now that -- our little friend they get -- in the cave man.
They -- only add however in their position in their strategy every one of their ads.
He's clearly selling on price.
Fifteen minutes can save you 15%.
If that's your strategy which I have to say this entire insurance industry is selling on price.
If you look at ad after ad after ad you'll see that there's one exception that I seen recently.
Comes out and says you can either reach us through technology or through a person that's really something a little bit different than price.
It isn't industry that has completely painted itself into commodity corner I can't take every single and on price they pay grade points -- -- joining us rob president Smart advantage from for a water out thank you very much good story.
Thank you Jane remember in the legitimately get out of that we're about to lose ourselves I am -- gonna make a quick forecast ten.
Old spice this Christmas sailing through the roof because it's going to be kind of let the sudden people are getting it just a joke really muscles so I can look like that -- on a horse with Simon's leaving your Brothers or cousins -- -- -- Wishful thinking.
We'll we'll see among twelve good ones too -- and I think.
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