Also in this playlist...
This transcript is automatically generated
But when the president dot com live I'm Tracy burns is Chris got -- we are unfortunately down about a 192 points or an hour down by almost 200 earlier today the market is taken in the chin.
On the -- the Massachusetts election we have saw the -- -- Republican come out on top but we did you run up yesterday to this.
Health -- stocks were holding on earlier today but we got bank earnings in they weren't all that and so the markets reacting the F housing starts that are down not that that's a big surprise.
But here we are.
This the modern this miracle of modern technology not because the computer because it's actually cancer in here somewhere running this things eventually -- -- -- -- -- -- Calmly.
Here's the thing though I think today.
The date it was all that that.
And out of the debates are all that bad certainly nothing worse than -- really expected.
IBM last night -- -- great to me I know it's had a great run but.
I mean you expect that it it what your expectations and then I'd sell it what I -- wrong -- -- -- what do you expect IBM date they'd be on top and bottom.
You -- this market works you got it got to step up.
Expectations -- -- I wasn't good enough.
Table that then here's the point if expectations are too high with IBM -- -- apart in so having a great quarter last we can reporting.
Mom are we looking at it Google tomorrow.
Late eBay later today.
And you know some of the technique and certainly the Amazon's the world the apples of the -- later.
I'll sell off on all them when they report did not report much better record than -- IBM gave -- last night.
Yeah yeah yeah yesterday volume yesterday later that was on Friday watt.
Why everyone on the sidelines -- -- election waiting on what happened but then if that was the case.
You can't argue that the results of the election in Massachusetts more positive market positive you can't argue that they -- So why are we down 193 I can understand that he gave back much of what we learned yesterday but we did Baghdad in what we -- have down 193 -- and I can't remember the last time I grant you I do think though that it is but it's still uncertainty out there even with -- -- just election still have uncertainty.
In the financials of the banks that banks still also increasing credit losses on Bank of America is bouncing -- we still see.
-- I agree but -- it seems to me like that that piece of what they're put setting aside the the provisions is slowly.
That at that 2010.
Looks like anywhere.
You're going to be able to put that towards earnings for the first time -- -- -- actually the reverse that trend.
But don't you think that overall -- now in these bank reports were the consumer stills pretty much is certain yet soon greatly do you have a lending consumer everything -- JPMorgan said -- Bank of America.
Really think America didn't have Merrill Lynch and in the investment banking arm the numbers would have been catastrophic.
The data we're having today is no surprise the bulls out there and we have had no surprise the bears I should say we have one of them sitting next to get right -- Kathy Boyle president shape and advisors -- when you are here too long ago.
You -- bearish on the market then I'm guessing you.
Probably still are now we are we are we are this is more of by the rumor sell -- news yeah you know and -- IBM's numbers and you look through them.
There's a shift -- a lot of that revenue with consulting revenue.
And then if you look at the banks and so it involves running Intel's news of like semiconductors selling to more computers in sold -- that shelter with -- would seem more hardware on the -- I didn't see it and then when you look at the banks and you look at the cautionary notes raising loan loss provisions.
Worried about the consumer Wells Fargo worried about the commercial real estate.
-- couple big issues that are hanging overhead and they haven't gone away.
But I think that's a great point with IBM it's an -- service company.
You know I think it did that any revenue from hardware it almost doesn't count anymore it's all about their bookings they're servicing their contracts what do they have going on.
And unfortunately then you give you it's much easier to gauge what the future looks like.
And it might have these -- people thought.
Right and also where is that revenue coming from.
Who's hiring them and is it temporary higher is it filling a scratch.
Are they 1099 people where this company seized a full time employees what is that revenue whereas it so you know -- this -- some of the concerns so look this market is very volatile.
Last week we had to began town days and you know finish the week down slightly Monday start after the races with health care leading.
And and now I think we're back under where we started the week last week.
-- you can give me any credit earlier this morning on mining companies would -- the only one yesterday that said that this that we didn't live in a vacuum.
And that all the other day and I think that getting really loud I get credit for.
He does he get credit for saying something funny you didn't look funny indeed unique effort say that the market would necessarily be up today if brown wanna.
I think decent and -- now.
On the so what do you make -- the election though it a seminal event.
Something that OK it's good for the market but.
You know that doesn't necessarily mean a whole lot.
On now I think it does mean something because the fact that Obama traveled there.
You know she actually was supporting Hillary should he wasn't really happy go there he went there because he had to make -- -- the fact that the president states -- and -- a local election and didn't win.
And for so many years it's been the damage control you know part of it was they were asleep at the -- the -- I also believe is an unhappiness with the current administration.
So how do you -- 2010 do you see -- -- you know a little bit of a change going on.
Many will say that yesterday was a vote for capitalism.
Do you see that going -- does that make you a little bit more optimistic no I'm not I really think you know what's gonna happen is we're gonna get a lot more practice about.
The money is being turn on spigot if this big hit from the government can be turned off.
It right now the report card is really bad the programs they've done have not worked look at the loan modification programs -- -- -- -- complaints only 31000.
Of them -- processed some 700 some odd thousand.
You know the problem is that there is getting sucked the programs are not working they're not achieving this still a disconnect between main street Wall Street -- Today dean do you take much out of today and if we end up down 200 points.
This today is they meaningful or is it just again another -- -- volatility might be -- 450 tomorrow.
Well we actually watch the S&P -- what's the future so that's our trigger.
So right now you're approaching some critical levels.
If it breaks just 1127.
Real critical area 12011 when he took it breaks that we're going further down.
If -- can hold those series and bounce up that we might have another bounce back up to 1167.
But I think the -- you have to look at your -- reward.
So if we're at 1130 let's say at the end of the day with 3540.
Points on the upside vs potentially a 150 on the downside.
You've got to examining if you're ready made money in so many thanks shots -- -- with four dollars last year.
Even if fifteen you know you almost made 400% of your money look at Ford.
Some of these cheap cheap stocks and go back and look at the volume on these cheap stocks back in August that's where they were really trading a lot of volume last year was typing into trading.
And also a lot -- little tiny stocks people are betting on you know on dollar stock is up forty cents he made forty cent.
Persists -- four -- a -- -- a penny you win but talk about the volume because to me that's a big story if there it is.
Absolutely and that's been a real concern we've seen that across the board the last several months mark been stuck in -- trading range.
And also remember the leading groups like you look at Goldman Sachs -- flight 93 and September it's 160 something today -- managed to get back up once every six last week gave all that back.
Look at -- people are not talking a little -- that really focus on apple Google six when he night and you know because some of the other market pundits were calling it a value with 600.
Short term and somebody put a price not a target of seven Oz on today I don't know who was but.
The short term than through earnings season.
You 1980 sell -- little bit right now because you'll get apple will be just like IBM global might be like IBM they beats and yet.
They had such a run in 2009 in over the last couple weeks that people just say.
I don't sell on the take -- his -- Adam's apple.
Right you know yellow a lot of late money to them to the table here and late -- can get burned they're gonna get out tax -- because they were still -- from last a lot of late money didn't get in March since you've -- and if you had a nice run if -- recouped a good portion of the losses from -- -- Take some off the table and look at the sectors that are beginning to weaken.
You know financials are beginning to lag excel left is a great little indicator to -- TF for financials look -- if it breaks this you know 1460.
Range then it's going lower and -- take the market lower the market does not -- up without finances participating.
Leaving it out get sick sector and -- -- we saw a load of institutional buying.
In those in particular stocks Humana -- at all those kinds of stocks what -- up because of the institutions right that this institution can trade Tracy you know they go in and back out in a day individual clients can't do that and for the most part and -- should stay away from the man you know the sector -- -- in it in the last quarter of last year we got out right now I'm afraid when the market goes down all -- Canada.
You know city -- really there's no safe place to hide -- the market's going -- you you really have to look at it individually have to some hedges built in.
To your portfolio or take a little gains off the table.
-- there's have to put their money somewhere as well what are you like right now anywhere oh where -- where would you suggest you apply that money kind of ride this thing you know we have what we call chicken laws -- we have.
We have a fund a global allocation fund that's only 55% equity so we feel like we'll have some time.
To get ahead Chad we'll have a tactical fund that can go short the market if -- indicators so when things that are tracking the market not all the way up and -- up one they Michael point seven.
But the market falls one knowing fall -- half.
So you want to look for sort of defensive names like pieces in those isn't like a Merck is it light gun Altria is it let are you talking about defensive names like that from an equity standpoint -- -- the tactical fun is actually buys accused police fighter is and then it -- -- So it does things you know what indicators we are so yes the 45% and that the global allocation fund as a black -- fun it's got 55%.
Equities in it and the rest is bonds.
Bearish as always Kathy Boyle thank you for -- You know that's all well.
Can't have everything that we do everything you can thanks -- and seven now and advisors thank you for being here and right and Clinton.
-- we'll see we'll see you again shortly as.
Albert says it is sort of ride around the corner -- -- -- -- -- Acela -- -- really fast frantic goes from the Oregon in DC joins us right now been following this.
Election very closely rich.
On the now in the fallout is on health care specifically I think in the short term long term.
-- worry about cap and trade and the rest of by the president's agenda but at least for right now.
What does this do the Republican win in Massachusetts was it do for health care.
Then there are no good options here for Democrats it's really tough they were negotiating their health care bill as though they had sixty votes in the senate they went.
With that mind -- all the way up through yesterday and now they've only got 59 that's -- Big majority in the senate but it's a big difference when your only negotiating with folks in your own party -- now.
They've got it either open this process up to Republicans try to snag at least one Republican in the senate perhaps even more.
On the other side they could try in the house to pass that senate passed version.
But tell you -- we're talking to folks who say they don't think that this bill could get a hundred votes in the house that senate bill so it's it's real tough and how they're gonna actually work this through.
So is it debt.
I think as we know it the current bills that have passed the house of the senate I think it's safe to say that those versions.
What they're looking to do we -- is perhaps paring that down a smaller version but the problem with Health Care Reform is you -- always say well let's start with the insurance market reforms let's make sure.
That insurance companies can't drop you for any reason let's.
Put those reforms in place in nimble work off the bat well the problem is.
In order to get those reforms in place you've got to deliver insurance companies more customers to deliver more customers you have to provide tax credit for them to buy insurance.
Provide those tax credits you've got -- tax people elsewhere cut Medicare Medicaid and so.
You know one small reform leads to a chain reaction -- ten other reforms that are politically unpopular on either the left to right.
Rich what sentiment down there today I mean did did this rocked.
DC a little bit this -- up in Massachusetts.
Out yet but definitely it's you know you're feeling it from both sides on the Democrat side.
Other mostly quiet they're kind of feeling their way through -- how they're doing that the PR games are making sure that.
They can gradually Scott Brown win -- and that they look forward to working with him Republicans can barely contain themselves are looking forward.
-- to the to the election in November as possibly this this being a good signal of of perhaps them taking control.
Of the house may be even descended and they have that there are other sites that fairly high for Democrats -- -- that damage control.
-- doing much that they did a couple of months ago like a New Jersey and Virginia saying these were isolated events they were based on.
Candidates the specific candidates in each state.
It's not a national referendum but you know.
We've now old -- national referendums -- states -- state elections in Virginia New Jersey and Massachusetts and New Jersey Massachusetts.
Those are fairly Blue States.
Live -- we've known for all roughly twelve hours they live it longer that that masses of -- seat was gonna go republic -- How long until we know for sure that health -- is dead -- you mentioned some things that people can do what's our timeframe here are we talking about a few days before we finally say.
That's it we know it's that let's start from scratch we talk -- a few weeks.
The question is when the administration Democrat leaders are actually -- publicly talk about a plan C yes plenty.
Planned -- sounds like it's dead on arrival you know right -- and the options are palatable they're saying we're going to continue to negotiate the bills.
Like we had been doing two days ago and before that the house passed version.
And the senate passed version but there's no way that they -- negotiate one bill and find a way to grab one Republican senator first of all the Republican party's fairly united on this state.
Voted consistently against what Democrats have been putting up.
And secondly -- there's nothing really in there to compel a Republican.
To break for their party and still keep the Liberal Democrats so they've got to find something in the middle they've got to find something smaller.
But maybe that's a really tough task it sounds pretty easy -- just pass -- smaller bill but it's there's no really golden way to do this.
And -- -- actually it was great interview with fat Bart Stupak earlier in the snow and the point you know I think he had and he is one that said -- play and -- dead.
Come on we're already seeing DE you have break out.
Right ABC was surprisingly candid you don't always get candid members -- in congress but you know EDT said look.
We we overreached here leadership over reached here we've got to go back to the drawing board and that Massachusetts race.
Certainly should send all of a semester down here right great point -- thanks good to see.
That's -- nice -- comments on the site that it's wanna talk about.
It's not such a fait accompli that now only sentence.
-- sounds and isn't that sad that I would circle of friends around.
On that the Republicans are taken some of these seats in the hands in the mid term election because aid if Coakley and I agree with somebody wrote -- that she was not a good kid I agree -- -- can I agree with that easy win.
For the Republicans get in that state that C.
Is she should have been beaten and she was a -- good thing -- is open.
You know what date from Pennsylvania says -- -- better not get their hopes up too high there are some -- that are in trouble too it's not like that the the Republicans that are in place right now we're gonna have an easy time staying out what -- I don't Republican Party in general right it's got to get its.
Act together if I mean -- it's basically you're handing it to them on a silver platter -- have to get your act together and take the -- -- run.
The principal announced.
The long run otherwise we're back to coming back to square one I'm glad to fill -- football and incidentally I don't like what then -- -- -- but I don't know what the Republicans are bringing it to us think also -- -- point there was a little bit of Kennedy fatigue like another with the Kennedys are -- enough but the cannon that.
Like honesty that's -- -- years ago I'm gonna take a break not enough of -- already got 45 more minutes you know when Giuliani second at home more football analogies yet.
Welcome back foxbusiness.com.
Live kind of runs by the way -- friends were upset with the US military in Haiti for nonaligned when their planes to land we talked about this guy you're gonna say differences of separating the way you said.
It accomplish that now something -- and we talked about it earlier in the day on Varney coming out about how the US military should take a leading -- not the UN in Haiti.
And that that does set up the US military for it to have the entire world upset with us in the -- by the time -- -- down with I think.
Mean literally we were responsible for the tsunami we we can with it becomes our fault for everything and and it will I promise you.
Before it is all said and done the US in the US military will be -- and he needed.
The US in general be hated for what we do any of three that's -- it -- which is terrible because.
Which isn't in very good shape right now in the states much less anywhere else Cameron Findlay chief economist at Lending Tree joins us right now -- and we got.
Some -- -- two different data points early today housing starts were down permits were up.
This -- though is really volatile isn't any you really put much stock and so when we get this this time here.
Yeah let's look a little closer the results if you look at the October to November.
You know we we sore big -- of -- -- -- December beginning.
Let's -- -- and so October to November we -- the drop November December was hoping for the Klein.
So you have the dropping in the magnitude -- to the northeast and you know like 20% magnitude.
And rising 20% so when I'm looking at the -- I'm looking at -- not a day moving average.
To give me any real indication of the results.
And you've got to look more specifically pockets the markets that are.
You know -- improving also like California as a broader market as an example what we're seeing.
Yet despite heavy unemployment of around four point 3% was still seeing price improvement driven by speculation on the market.
So what do you seeing as far as interest rates go.
We have a you know a government that saying it's in his potentially stop or make an attempt to exit buying mortgage backed securities.
That could send rates you gotta -- housing tax credits that are going away that could do something so we have a lot of balls in the air right now.
-- -- a lot of changes happening in the origination process.
You take everything from rest -- the real estate settlement procedures act which took effect on January 1.
That's change the game in terms of how the defense -- provided to consumers.
You've got other factors come into play like agent licensing.
And in specific to rates.
You look at you know we're expecting to see ten years as a base formation -- ten years to rise from -- -- -- -- at 37380 levels today.
-- have been averaging two around 440 by the first quarter 2011.
So that's a pretty significant jump.
If you expect puts -- in just -- for twenty tenure by the first quarter 2011 you tack on another 180 basis points for the -- spread.
You're looking about a 6% though -- consumers.
By the first quarter of 2011 that's a substantial rise that's gonna make it -- for consumers to get in the mountains.
Cameron also you know you talk about these structures well I -- -- games is such a big part of first time homebuyers raising fees.
Well how is that -- impact first time homebuyers especially.
Significantly -- those changes announced today.
You know your your Segway from politics into the FHA discussion which is -- a heart concentration of the mix of originations in the market.
Over the last couple of the special -- couple months through last year or so.
Really plays an important role in in borrowers trying to get in the homes as opposed to speculators.
Trying to get into the market.
So the decisions about what if I take clearly send -- that note to the community and truth to borrowers to said look.
You know we gonna try and help -- is going to be guidance as as far as how much we can help.
You know I think it's estimated that -- -- congress for around 400 billion dollars and 2010 which is a substantial number.
And if you look at the the overall magnitude of what's going to change in the landscape of mortgage origination.
You know we expected to see around to just in refinance activity around 363.
Billion dollars in the fourth quarter of 2009.
But -- first quarter of 2011 we expect that to drop down to 6970.
Odd billion dollars that the decline of 80% in refinance activity.
That's substantial win.
-- if you could take a step back right we have all this government intervention.
Loan modification programs tax credits from where you -- did any -- work already -- just postpone the inevitable.
No I think it's it's one of those things where you've got one of two choices -- -- you ought to take a really.
Hot hit on the front end and you -- you hope that the penicillin the injection works.
And and you get a result -- the patient gets better we didn't -- take that approach we took the approach of let's kick the can down the road a while and see things get better.
Which is what to alluded to a lot of it it it changes the game back in October 2000 night when the economic stabilization act stop it.
That really was the changing point for the entire -- where.
The government came -- and said look you know what we gonna do is we're -- better control the supply of money to the market in terms of how much money is available out there to lend.
Obviously if there's less money to lend its going to be a more competitive environment right.
So what they've done now by allowing themselves to pay not only on the required reserves of banks.
Which is what's happened -- the the deficit funding.
Is there are also paying they can -- on the excess reserves held by banks.
That's substantial because that means that's going to basically discourage banks from making more money available for loans if they needed.
And with the one point 25 -- you -- to would be.
You know -- the agency MBS acquisitions.
You know bringing a full circle that's basically come to an end march 31.
Once that happens is expected to push rates back up again.
Myself that hasn't hit it's it's it's being prosecuted.
It's him and -- -- inflated and -- that was Cameron Findlay chief economist at Lending Tree thanks so much for joining us to help the comeback -- Banged -- slowly but I think the whole thing is.
Smoking years smoking anything but he's right he had to do I guess he had to do something.
My guts and that is instilled in your general question actually.
Here as day easy at times.
-- that they are gonna start charging.
For web service in 2011.
In other words if you go to -- -- times website.
On magnets are paying for certain things that he did and neither it.
Still there -- a lot of sites -- like this right now you go there.
You can read.
On certain stories are certain parts of stories and if you wanna dig deeper -- -- stories then that's when you have to pay if you're a subscriber to the paper New York Times not to pay anything.
This is just.
The latest in annual -- will be a long line of and news services newspapers.
Television stations radio stations.
That are going to pay for -- and so.
Starting in 2011 -- gonna spend the rest of 2010 putting a plan in place which will involve mobile as well it's such a huge thing.
On your PDAs and Smartphones and whatnot and by 2011.
They will have a plan in place would you pay for us.
For the right service yet I would maybe not -- at times but for me may be and yes the end with a sporting news I think what is that they are there are alternatives I mean you know -- even think you're at times.
I'm not gonna say the post I was gonna go there that long because it isn't really alternative but you get what I'm saying about one ESPN -- -- pay fortified and go to sporting news and not be what.
Then that's what I'll do because they.
For the most part it's ubiquitous isn't it.
I know -- all guests on this that you might like a video times you get that he attacked the times as such if that's the liberal paper of New York.
And the post is the you know.
I mean aside from the food section.
Well united united dedicated kind of zipping right from your point is exactly -- not -- -- by the way on the website well what would you pay.
But -- I think -- point setup if this is going to be -- challenging this is going to be very challenging if you asked me to charge for web -- because.
Someone else is gonna give the finally for for.
Let but the point is slowly but surely everybody is getting to a point where they're not.
But for the first to challenge is the first.
One to do it now has to convince advertisers stay on board even though web traffic is going to be reduced the very they got there.
What they should do is get ready new exam time they'll all be forced to pay for something that's what we would call communism and I know -- and I'll tell you that -- all have to do it that way.
It's not not live an animal farm these days anyway aren't we have to go to occur arena model -- again at the death vice president of political risk -- our -- -- services thank you for being with us afternoon you got to sit out that.
Would you pay union plans content I only Chris I've -- depending on the contact depending on.
And then you know the publication in New York Times that did first of all New York has such a huge newspaper falling.
I'm a few cities -- left in the country with a newspaper really means something in what newspaper you read.
Is important says a lot about yourself in other cities big cities I don't -- -- -- it Chicago when Atlanta Dallas schlepped this kind of paper and that's.
That -- on the train wherever you are an annual you know whatever beat somebody is picking up magazine -- -- really represented there.
And their views I want.
Good to talk to you about what's going on Iraq right now because -- over the last week.
I've been reading about.
These oil fields that are putting up for bid and a lot of these huge oil companies not so many from the states not so much of the -- the marathons.
And the Chevron's but a lot of the huge oil companies it's -- -- of the world Mariah Dunham wrestled are beating on these oil fields.
And they're -- billions and billions of dollars on them and I started thinking.
Is it safe to go back into -- not in the waters is safe to go back into the desert so does that in Iraq and so that that's what I wanted to bring you wanna do your thoughts on that.
Yeah I mean I think it if the end of the day one at the three things that I would -- as far as.
The business risks if you will of doing business in Iraq are there regulatory risks.
Security risks at the moment as well as the infrastructure risks you know and all of you know we can talk about each one.
You know -- starting with the regulatory risks right now.
There's a process that's begun and I lack and in the process of what are the rules of engagement what you know what can foreign investors expect when they enter into a concession agreement with the -- -- Barack.
And the reason why the regulatory risk at the moment is quite high is because there is some.
Disputes if -- well I mean you've got these eighteen provinces and -- -- you've got Baghdad.
-- agreeing with what the rules of engagements are we have kind of uncertainty.
Correct we have companies taking shots already at this right out there -- Halliburton Baker Hughes water Weatherford International -- numbers at all out there already tried it the proximity to I ran an issue because -- mean that's that's a security issue.
You're actually right Tracy I mean that is did a very important point to bring up its security issues.
There are external security -- so your point about Iran being perfect that's one external issue but also internal issues I mean there's as we know.
There -- a lot of factions that -- actors right you know there's there's some.
Fear you know when the US military withdraws what's gonna happen there you know it's been a lot of conflict internal conflict at the moment so.
I'm at it what investors should be.
Aware of is.
A physical damage to their assets due to security type.
And also having to potentially abandon.
A very large investment in me and these are not cheap.
Politics is she now needs expensive to go in there.
Invest a lot of money in oil and gas.
And then have -- -- civil war or potentially a war that drives you act of the country and so then what half.
As long as we've seen it happen in Venezuela with Hugo Chavez and some of our American companies and -- it's happened already and yet basically what we're saying then if that.
The reward is worth the risk to go to Iraq right now.
Yeah I think you really need to know what you know what type of -- -- mentioned some of the companies and you know and and everybody does different things that you.
If you are.
A contractor plant and equipment you have certain types -- risks if you actually.
Signing oil and gas concession agreement you have very different types -- risks but they all fall under either or all.
And infrastructure and the -- -- a big thing I mean here's you know I know -- has been a great job trying to revamp their infrastructure and that's how great.
It's not nearly there.
So you know what if there's a power -- how does that affect your investment and I'm you know things like that that we take for granted -- work in this country are not working as well and I -- I being a former banker I know a thing about credit people and people who are paid to avoid risk to -- -- that it was.
There is always like this series -- I want to make money I wanna lose money there was always that conversation back.
Your thoughts right now on -- -- just in general.
Not worth of they reward the Tracy talks about a hold off a little while what are your thoughts.
My thoughts are.
You either hold off a little while or go away and really mitigating those risks now we want those risks are you know understanding I'm not saying you have to buy insurance for everything.
Mean obviously we you know we think any -- I've representing our services that work for company and that's what we do for a living.
Is too you know look at companies that are doing business in and typical places in all around the world -- of these other risks that you're facing families can be mitigated.
Either through insurance or otherwise that you know know what you're -- but be careful because it is opaque at the -- it's not clear the rules of engagement are not entirely clear.
Incidentally that there's a trickle of oil coming out of Iraq now with these bids -- -- that Iraq could challenge Saudi Arabia is the number one producer of oil in the world in.
Five to ten years that just goes to show you how far we've come and where we can go and you know -- Actually I'm glad you mention the obviously are ho.
Our whole his -- that -- the company is too.
Continue to promote business worldwide.
And but do it in smartly know what to risks are -- mitigate them if you can one of our viewers wrote in we should drill here first I've firm believer in that -- recent evidence of policy here at home.
Before we go over there and risk lives and companies and everything as you said the infrastructure is not there the security.
And now I'm not sure things it's worth it thanks I had some months.
-- vice president political risk for chaotic risk service.
That's a quick break when we come back when -- -- -- move in this market decidedly lower although off lows even though just barely got a 181 points and going.
But I go there.
Welcome back to foxbusiness.com.
Live it is 1230 on the East Coast 930 -- the -- good morning to all of you out there watching.
We hit a market it's down about a 182 points on the Dow right now and then bank numbers.
We got housing starts down were coming off -- run up from yesterday's election.
I -- -- to be expect didn't.
-- I -- expect this and I guess I don't know I don't know but it's also too which had a market that's been run and for a while I mean I think a little bit of take people taking money off the table we still have uncertainty we have very light volume I think that's an important point to make -- was he later yesterday than it was on Friday.
Coming off a long weekend so I think people on silence.
Com I guess so there's no conviction the downside -- so I feel bowl legacy can say that -- this what eyebrow a little bit but.
What is moving this market is obviously that five companies and almost unfair most of them -- to announce.
No I'm -- -- Oslo productivity come on I got one down -- only because it caught my -- I wanted to know more about it CSX yesterday right after hours fourth quarter profit grew 2.4 percent.
I'm prior losses -- -- discontinued operations so that's accounting stuff so it didn't.
Necessarily grow back right that's the point revenue fell.
And it fell short of washing expectations so it's down and we weren't -- about -- yesterday it's -- it's a reality overall tell for the economy so not so good in all the other rails down as well.
And coal shipments are down it was very interesting you know and yes often made his big investment it was.
Everybody was thinking is getting in the cold he's got his eyes on call because it's under appreciated undervalued at the moment and -- CSX comes out last night and says coal shipments were down that was a big reason why.
We failed this quarter.
Yes and I didn't think that was a positive but on the -- side.
Mac -- exploration this is on my list last week they were due there -- driller they found.
Juicy juicy stuff in Davy Jones and they found -- today they reported that they revealed additional hydrocarbon bearing sands.
In its discovery at these so called.
McCain don't block.
-- -- -- -- -- -- Isn't there isn't Davy Jones NASCAR.
An open wheel -- TV just in monkeys is DA VE YRMCLCDAV.
Why this run has done much to clear things up -- -- -- -- -- locker.
-- -- international the ticker -- each EA TC still leans on the border.
The bar surprise -- loss in its fiscal second quarter this is because of -- charges in closings and things like that still continue to decline wasn't all that but.
Its stock is up.
At a slower pace in recent events restaurants -- -- at a slower pace in recent quarters but they topped expectations and that's all that matters.
Two interesting things to note though is that their teens in the -- like chili's for those of you out there so what are they doing now later.
-- -- And it's going from eight pages to you know shoot eight pages from twelve I've never been chilly so I tried between India is good and it's twelve page many -- confusing.
It is it's it's Rosie is not as confusing as a diner and -- going to be -- diner gets out and -- Cheesecake Factory that is displayed an encyclopedia.
Right here what would you like anything in the world profit beat expectations -- -- so that's always good news Rambus -- on the -- since the ninety's.
Yeah on the Sansa electronics agreed to pay them as much as nine and ten million dollars in five years this is all part of -- deal to settle this high profile led litigation.
That is focused on the memory chips they settled again and money Rambus stock up decree number one.
-- favorite as -- I've -- tells me he's been seeing in creed song fiscal second quarter profit tripled.
This is a semiconductor.
Late admitting that die guide company that's LBD stuff I learned that light emitting diets toss and come to witness didn't need a light in any diet he's still into them much but the stock is up 70% of the -- -- although I have to say.
It's been out.
It's been up and it is up again I know so this and that is so windy you know that's a question -- -- an -- here when you know pulled the trigger he's he's going.
Let's find a little more about with some people in the know like the accounts portfolio manager that.
Months -- quality -- -- and equities director David Stanley Jackson associates joins us right now does -- tell us how you can make some money at home Daniel look at the show.
While -- thank you for having -- -- -- let's start with very general thoughts on the market at first we're down a 181 points right now on a day when the news wasn't so bad that we -- be down like this.
Eyes this is the start of maybe a little bit of a correction in your mind.
I don't know but so much -- cracks another or reaction to the fact that we've had such a move up in the market.
Leading and earning season that it's really -- the -- -- healthy breather if you will because we were up such a large degree.
And December in the first week of January -- to be expected that we give a little vacant that is -- back if we get the news at people were expecting.
Daniel -- -- -- -- buying a binding really late do you think a lot of people who just sit back wait this out to -- would earning season turns out.
I think there's some of that I think expectations are much higher this earnings season and they were the last two or three quarters.
I also think.
A lot of it has to do with just the money step aside when the markets moved up a lot of people waiting for a healthy correction to come off the sidelines so I think what we're seeing today could be a good thing for the market in that regard.
Before -- in this specific since 2010 you Daniel in general what sectors do you -- -- -- -- what sectors are you bearish on.
We're we're positioned in the portfolio right now where a little bit more bullish on industrials.
We have been a little bit bullish and regard to energy and some of the commodities I think a lot of that has run its course.
And you start to see some of the industrials pick up the next leg of the market's move technology's been strong but last couple of days you've seen has been some of these technology companies that are reported earnings.
Had been traded down and what looked to be good news naturally because they've had such a law a healthy run.
Over the last few months they were by far the best performing sector in 2009.
OK so let's just -- your picks the first one is.
Americans -- this is a -- -- operators say your communication towers.
It is basically if you think of all -- the cell towers that you see when you're driving around the country they basically are the largest player in that space and what is the plan as the fact that as more and more people are using cellphones to -- surf the net and other data usage is.
And move into the next generation three G four G networks that requires a lot more bandwidth and.
All the big carriers have to go out and put more equipment on more towers to be able support all of that data growth and.
American -- the primary player in that space is very well positioned to benefit from those -- Daniel earlier in the day Tracy -- and I want to show of cloning company and we talked about.
How the cable companies seem to pretty resilient Verizon -- can't put the put a dent -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- moving forward.
We did actually like DirecTV -- like DirecTV for a lot of the things the companies doing specifically that aren't really dependent on industry trends there -- a lot of competition from the cable companies.
Always fighting each other to this subscribers and now you have the the telco companies out there when their offerings like U verse bios.
DirecTV -- as a company that is an actually has these these these strongest organic growth of any players in the pay TV space.
And not only that they have some exclusive content some exclusive arrangements or relationships.
And content side and the NFL Sunday ticket which has been very popular.
The distribution side they have agreements with AT&T.
And a couple other of the Telecom carriers to -- -- satellite services part of their bundled subscriptions and now.
If they -- but some of the very favorable position why other things we like about the company.
Is they Wear a tracking stock about 3540% of the company was held by Liberty Media -- that has now been merged together.
And now that's the case and allows them to go out and get much more proactive in the use of their own capital and we think that they'll use cash flows to buy back.
45 -- 30% of the company over the next couple of years.
He's stepping ahead -- you need a better system and that it'll.
Being dish yeah.
Come on now what's that all about it.
So cognizant tech so this -- -- person well.
It's headquartered in Jersey I love this.
But it's in a Jersey outs -- -- outsourcing which is very interesting to me because most outsourcing of courses well based overseas -- Correct then added that the companies headquartered in New Jersey but 85 plus percent of their employee bases in -- got left in there.
They're unique company and that there are now -- outsourcing companies they're utilizing the lower costs -- very talented.
-- T talent pool in India but because of the fact they're headquartered here in the US they haven't local presence at the other Indian outsourcing companies do not happen that puts him in a very favorable position to.
Continue picking up new business here domestically and also in.
In Europe and Asia as well.
They do risk getting -- -- -- -- if this administration continues on these tax cuts and and changes the tax rules surrounding employees that are sent overseas.
There -- be that you know apparently example of a coming that would get hit by that.
They could -- it actually because their employee base is in India it's not here in the US you if you think about.
Taxes on employees come in and better overseas employees or some of these arrangements everything else that's required there they really have a unique model and that they're able to have.
Domestic presence with US based companies that our employees have been here and obviously continue to add to their employee base in India to ramp up from the new work they've taken on.
Daniel thanks for your time it's -- -- -- delegate on the road San.
Now you welcome thank you for having me -- Daniel callous manages a portfolio manager Mathieu equality -- -- -- -- equities director Davis Hamilton Jackson.
& Associates via cell on the board had interesting question.
I thought today's the day to buy stuff.
-- and it might be but I I think a lot of people think that it's not enough and it's gonna come down more before people really jump off the sidelines start buying things.
Don't you haven't had such a huge run.
If you look back it's only a little bit -- a pullback even though it seems like today -- a 185 points we have had a down when 85 and a long time.
It's still not enough I think to get it was a fine in that and I do think too that people -- -- -- see what happens -- earning season.
I'm good -- I think we got a lot more to talk about including this.
Product from apple global -- -- The question of the what if anything it's confusing us this we know it's going to be a couple of them that you know it's going to be.
Does not come lot continues tighter turns January 27.
Is the dates.
And for this in the -- -- -- -- new product you know what it's going to be.
They have a media event.
Dan -- the executive director PC mag dot com good to see again Dan.
I I said I knew it too -- -- you immediately said I don't know what it is so obviously I don't know what it is is it is it that much still up in the air it's not a tablet.
-- -- I can I know everything about the product except for what it's called what it looks like what it's for how much it costs -- suspect.
OK so we got a fancy on us made us so it's not.
Called it's not the tablet.
It might be -- in the room with the tablet rumors have been going around for two years now we've been writing about it we've been guessing we've been trying to figure out what.
What screens they've been ordering what technologies that -- bet on.
So there's a ton of -- work that goes into this and I've contributed to it as much as anyone.
But in terms of hard facts we really don't know.
At this point I would say probably a tablet like what is just wish Steve Jobs is is it under the penalty of death that you dare whisper anything about a product they do you have lawyers -- -- not afraid to use them so they the people who do know don't talk and it's really there's very few of the companies and keep the secret -- -- apple.
So it's it's it's kind of precedent does create this -- -- -- -- -- talking about it a week before the announced.
I'm dinner trying to seventh we're not even sure what their unveiling we don't we think -- it's a tablet meaning.
Meaning what actually looks at -- trade me.
The way I would -- we -- we've got around PC -- a couple times from put in a box and figure out where it fits the way I think of it is sort of a large iPod.
A large iPod or larger iPod Touch that is something you can I hope read -- on browse the web on check your email.
-- look at photos play movies I'll play music so it's sort of like an Internet connected device all the things that you do with your laptop now but it's a little clumsy -- doing so.
I think that there's room for device like a tablet to sort of fulfill those -- Here's the real rub on this thing -- on all the tablets.
Can't we do or if -- can't do it now we really close to be able to do everything we want to do on a cell phone.
So why -- we need something bigger than we can fit in our pocket.
It's I think it's really there's so much of these places -- -- do their new categories coming and going you can do most of these things on your phone.
The one thing you can't do on a phone is really change the size of the screen too much.
Right got to be something that -- and your puck and then -- that larger screening experience until now you've always had to have a laptop.
Laptops are still -- clunky kinda heavy and they've got that that big physical keyboard.
You know they're not great for you know watch a movie on the plane you can barely get the thing open you know so I can sort of see that there's -- room for sort of PC companion -- -- compared.
So this is like a laptop without the keyboard.
Hmmm I think that you're gonna see more and more these devices that are basically screens.
There there's screens have been -- -- -- the Internet.
Applications can be written for the and you can you get your FaceBook.
Updates on -- you can get your Flickr updates.
You can do little -- word processing if you really need to check your email but it's not it's just it's really just a window on -- so why -- I.
That's the question is how what what is the price point -- -- -- like this and in this -- thousand netbooks you can get a netbook now for 250 dollars.
Com -- had the same size ten inch screen full keyboard.
That's a pretty cheap price.
I don't know what extra value and utility you're gonna get out of the at a tablet device that costs a thousand dollars.
You know gene Munster from Piper Jaffray is an analyst -- works on apple.
The -- it said it best.
-- -- -- evolutionary or revolutionary when they come out with a product and if it isn't revolutionary.
It was sell the stock is gonna -- byte at stock up until launch in it and expect the world and who -- the newest latest and greatest thing.
And if it's an improvement to the iPod.
-- and run for the hills kind of thing there.
And I'm not if I'm not a stock analyst on a technical element.
But you know the wanting remembers that there will be other companies that are -- -- products that -- very similar things.
I know you know Dell HP you know a number of other companies were all talking about tablets and and building something around this form factor.
The thing to watch is not so much the hardware.
But all software that goes into it.
All the applications do they have deals with book publishers to they had deals and TV networks him what kind of content is going to be available there it will all be incorporated into the iTunes store.
That's where I think they've got sort of an advantage that some of the other hardware makers may not have.
If -- makes a great point when they said you know the last big announcement was they added a video camera to the iPod are you kidding.
And you know I need to take pictures with it it's strictly video -- -- -- -- -- get a blood from my kid and -- even know what the heck it was an -- to take a big ethnic.
-- that's it was a -- That was not a huge amounts those silly post that this idea on that from what I'm sensing and not just the -- but also many industry sources.
Is that this will be a bigger announcement.
It's certainly being treated as such in the industry I'm flying to San Cisco -- to cover it.
So I'm expecting more and numb and I actually pretty excited about it.
So this is one of those things.
Apple in 20102011.
Your mind candy keep such a dominant position.
In mainly because of the cool factor will they be able to hold off Google with a new cellphone Els got to say Edwards got a Smartphone.
And -- attacking them.
Are they going to be able to hold these people off -- the cool thing.
You know I -- when it comes to cool I never bet against apple.
I mean they have consistently built products that.
Maybe we're not first generation the most innovative you know the geeks -- say -- we know it's missing this it's missing that the thing is the V do -- cool products are designed elegant products.
And they market them appropriately.
And that's some that's the thing that apple does really well we got rumble real quick and they do without Steve Jobs mean Steve Jobs announced mom -- and -- I'm going to be chinoy it's a big company Steve Jobs and undeniably vision behind it but it's a big company that a lot of talented people right.
And year counted we love having you but I gotta tell you I don't know who's gonna I'm very curious I was -- -- -- how many things do we have to lot of people that by apple stuff by everything.
They're brainwashed I kind of I personally I think something comes off the screen -- launches you integrated -- by more.
When we get you know bring on the show and we'll do that thanks -- -- -- -- -- executive editor -- -- editor at PC -- Getting is that they have what's gonna happen on the 27.
You with Apple's best as -- -- and nobody really knows is that this is the job of keeping it secret hate.
But -- -- -- right and what we're southern outsourcing.
And it seems that India.
You know outsourcing capital the world right now is benefiting from our little recession because as.
It's cheaper to send people over there.
So they are seeing more and more industries send an outsourced over to India so India actually doing very well -- -- consultant services.
-- -- -- pro all expanding their global workforce is.
And all benefiting basically from us here not being able to afford to hire people here none of a weird little -- gonna.
That is you wonder how long that continues yes much you know and it's not even really a part of what a lot of our Conosoga -- the -- reaches of the world talk about.
Mom the trade deficit in held that has to improve in order for us to get out of this recession and to start adding jobs here -- We're even taking service jobs and and putting them overseas.
Yet everything and yet one of the things that you and I have constantly heard here is that the companies that have done well.
Have great service -- up to LL -- we always bring up Nordstrom service is here in the states they're people that.
You can understand -- understand you know so it's it's a little interesting phenomenon if you asked me.
Dave in Pennsylvania great call perhaps apple will come out with a new teleprompter.
Very interesting -- I don't look.
Apple is -- cult I'm -- unless the minute that you break at the end of the fix the script so when we come back -- and I can read a teleprompter.
I was -- hitting -- -- I don't know.
Going comments we don't need no seat in -- -- -- think -- time -- we don't -- teleprompter and it probably shows.
-- tennis here CEO bill -- and Peter I've got an issue I just read up my two year contract with Verizon.
A week ago Monday and then four days later they come out with this whole new thing about though lower rates -- all you can talk -- like twelve bucks and there's something like that.
Look what what's my every course has really get an all bills with cell phones what's my recourse to go back and say look idealism is good you can actually slips of the new plans without having to -- perhaps you and -- out.
I -- Verizon and AT&T just change all of plans -- What happened Peter Ed because that's all I don't know where these these just started shelling out more and more and more and I think for a while I'm really paid attention we're just happy to have cell phone service like being happy to be able to tax day.
You know things are looking bill and it's it's lined by -- -- I think the economy and think.
You know spending a hundred dollars a month -- your cellphone bill adds up to your contract when he 400 dollars commitment and it's time it can revisit that -- yours and mine are we seeing a ray war right now on your minds absolutely food considering that in the last six months all four major carriers.
Change something -- straight now.
Unlimited call for any network.
Right it's not just spending calling T-Mobile came out with plans that.
You can get no contract pricing for almost twenty dollars less than with contract.
So eighty dollars and -- element of voice text and data without a contract but yet -- bio phone and then this week with -- Verizon and AT&T and it the other it's better for everybody.
In your mind is one plan what is there -- the best plan to rank them.
It's not it's all personal so one of the things we focus on is individuals.
Where do you live where do you work with the coverages who do you call so what network or your friends and family -- -- the most what -- daily day of the week.
Are you heavy -- heavy tax.
You with all Smartphones and devices out there.
It gets pretty and Peter you can input all assimilation into your site and then you'll help figure out what the best carrier ten million cellphone plan combinations.
Between four and.
And who -- that the the ten million combinations and you were able to be able to identify ways that people can save money that they don't know about that idea I didn't realize I was paying this much -- I didn't need to pay that much that it's a big part of it too.
-- you don't -- know sometimes what's on that but what's.
Data with text looks.
Talk you know all that stuff -- -- -- PDAs responsible -- when things you can do is actually import your cellphone bill on -- sites will analyze your bill -- real time look at what networking make phone calls on I was texting him here.
If -- exact kind of -- your calling pattern.
-- it might just be within the same network to -- it's not always have a switch it's just being Smart and saving money 80% of people pay too much from them.
I think I'm one of them an -- especially when you start getting into this family plan right.
You know for the low price of forty bucks or whatever you can get another kid on and new mom I'm an answer -- I'm pretty sure I'm getting robbed school.
It's without a plan gets confusing and then who's using that -- -- using the data of -- he had this thing called.
Eight possibly -- five numbers to call for free.
You Verizon has five and ten people they can -- for -- but it depends on the planet -- on.
And the main changes this week were actually Verizon even though they lowered their prices on voice minutes actually raise the price of Davis of incentive.
Twenty dollars a month for -- -- now.
Thirty I don't like that it would talk daily I hate the one thing I'd love about over the last few years is now I can use tax I thought everybody else thought that the call Hillary Clinton -- I didn't pick it up a voice message how long does it take to get that these machine thing going it -- -- everything that's -- likely and that's what I think I call.
They still had five minutes to get there.
Still it would you talk about.
You put on eleven ways wireless provider.
Screw you over.
You did it purposely trying to sway over the -- -- give me we -- educated enough with this new technology go to figure out our bill I don't know if it does nefarious than them trying -- I think that.
People aren't paying attention right here in in your -- which at little things you know you shouldn't be using the 411.
From your case -- charted off from city five -- -- dollar 25 you can -- due for 11 that's Google's free for 11 service and a little things -- that.
Of making sure that.
You're on the right texting plan sometimes they're charging you 25 cents at forty cents at tax message -- -- -- on the -- But isn't this also part of the economy focus on one hand at times -- -- now the sun and check in my building on the other hand these companies can't make money they have to figure out a way to do it.
It's a combination of both but you know there's two -- eighty million cell phone subscribers in the US.
And point 5% of the people or move in between one -- -- every year you know there's a lot of competition I think.
Now more than ever with so much attention with the iPhone that apple the Verizon's appeal the -- in Google nexus one's the fourth tension up.
I want the new staying I think -- -- and -- a little bit more attention -- to 200 dollars phone.
That's also 2000 dollar commitment what am -- doing.
Yeah that that brings me to -- like that -- flown in the Nexus One these unlocked phones you think they'll grow in popularity because they are a lot -- help.
If he -- 500 dollars on -- Nexus One.
How much is your -- going to be every month how much less again I think people don't really know that yet so it's actually pretty good deal if you -- the phone and in.
Moved on all locked plan -- reasons six months now nine months now and you want to get now you can just leave -- -- -- -- penalty.
And guess what -- bill sold off on any day.
You know a couple hundred dollars and -- become mostly cost OK so Europe is all about unlocked allows you to switch between -- all the time I'll be talking about 20% of the normal bill 40% of the winners only to fight a fight -- the Verizon insane and got a new phone here.
Or vice and the next one when we're Verizon T-Mobile to have -- -- phone here.
My monthly ability about points -- T-Mobile only actually the other -- they actually they don't give -- discounted TV deals it would still evil villain gives you deal Edwards did you know.
We have a lot of time tell people quickly they go to bill -- dot com.
And they what do they do.
All they do is answer a few questions how many minutes -- -- taxing who they call the most where do you live in warfare bail them.
And -- information that off your bill right yes or.
If you have online billing username pass for T bill war import your bill and actually parks that entire bill for you and analyzing real time and then on ongoing basis.
We'll email you if there's a better deal six miles -- wants him.
Wonderful -- -- CEO of ghosting so good to see you in person in studio Peter has been on your questions your money with digging down -- on Saturday.
Thank you had a bad stuff that's happening and the fear that that I'm doing this -- -- -- romped.
You'll I know I'm getting -- I honestly I don't and I do we know what's going on my bills and things like that.
Very good about.
You know understanding and peace that but I'm telling you I sometimes with these bills especially on -- head Smartphones and if you're apple certainly examples -- 4% say they don't want a paper online -- common -- -- yeah -- -- the puts -- -- 5% said they would pay a flat -- -- article.
TV way -- in cable came long these underpaid -- landed mean I would be happily.
-- Gonna happen now.
-- happened -- a 190 points have a great dad than than we you have a great -- -- that.
Filter by section