tv Markets Now FOX Business August 28, 2013 1:00pm-3:01pm EDT
lori: stocks rebounding after a two-day slide. >> you have that right. stocks pushing at session highs right now. this is a rally. if you look at the numbers for the week, the dow and s&p 500 are down about 1%. adam: fear of a u.s. missile strike in syria said oil prices to a five. sandra smith is in the pits of the cme with today's trade.
sandra: just below $100 a barrel. traders have conflicting opinions on how much a premium is right now. one dollar to $10. we have been talking to folks on that. some analysts think this is a great possibility. they are continuously monitoring the supply and demand situation in the oil market. meanwhile, looking to gold. not seeing it in gold prices right now. down about one dollar. we made the big job, still down
on the session it is a wait and see mode. markets are watching very closely. adam: thank you. lori: meanwhile, the president weighed options. the assad regime is preparing for a chemical. rich edson joins us now from the white house. rich: they are still going over it. they are still trying to plot the best course of action.
you mentioned a cabinet level meeting discussing these issues. on the international front, a un security meeting. nato convening a meeting. what has happened in syria. no sense or no course of action has yet been charted. on the domestic front, in an attempt to sell any type of military action says it will be coming out with an intelligence report at some point this week. they say the administration is simply reacting too slowly. >> this is the same president that two years ago said that bush are assad must leave office. where is america's credibility.
i promise you, those who say we should stay out of syria do not understand that this is now a regional conflict. rich: the administration would have to go through congress. engaging our military in syria would violate the separation of power that is clearly delineated in the constitution. lori: thank you so much for that report. adam: we are in the green.
the dow is up. oil is up. you guys think this will be a short-term interruption. did we get back to normal. >> exactly. syria is another short-term reaction. for the first time, we were seeing some life out of china. we are seeing economic growth in the u.s. the fed is starting to talk about tapering. when the dust clears, it is a short skirmish. commodities have overshot their own supply and demand
fundamentals. adam: if we are to believe the markets, it will be a short-term situation. this will not spill over into the region. is this the time to man up and perhaps dive into equities? >> i think that you have to be select this. in the affects of a spillover will not be dire. we produce a lot more of our own oil now. if you look at the s&p which has pulled back four or 5%, that will not be as effect this. you see some of the other names really start to move.
you can actually start to see stocks rally on the news of higher energy prices. adam: phil flynn was saying we should see oil fall back to $100 a barrel. two or three weeks from now, where should i be putting my money? what market would it be wise to invest in at this point? >> i think that the u.s. is probably the cream of the crop right now. the rebound in europe is still early. probably not too convinced that it is for real. with emerging equities, we would tell people that an area to concentrate would be south korea
adam: if we would see commodities come down in price, that would help. >> absolutely. commodities are a big part. adam: thank you very much. give our best to everyone at wells fargo. they are on the program quite a bit. lori: let talk about this latest cyber threat. the "new york times" website entering its second day of disruption. name.com suspended the website of the electronic army for a breach of contract. it was worth the attempt for syria and world peace. connell mcshane asked brian
finch if we will see more of this kind of cyber warfare. particularly, as retaliatory attacks if the u.s. should strike. >> they can certainly do things that will be distraught if to the economy. lori: two steps back, two steps forward. the shares of express may not be as good as they look. adam: the fire spreading deeper into yosemite national park. ♪ [ male announcer ] these days, a small business can save by sharing.
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hopefully, you are in the right direction. by the way, the chart looks fantastic. revenue was up like 55%. it is a semi conductor play. they have over 1000 patents. audio for smart phones, tablets, the house, the car. all of that stuff. i love the chart. i love the way it is acting. lori: even though a lot of analysts are saying it is saturated right now. >> we love our tv. these plates have done extraordinarily well.
forget about it. find guys that make the chips and sell it to these guys. adam: best buy. charles: you want to talk about a year for redemption. three dollars. it is over $10 right now. i have rarely seen this. you go to the company's website and they tell you why you should invest in this stock. the company said that. i found that hilarious. most companies are afraid to even touch that stuff. lori: it is always a lesson. >> some guys don't even want them to know they are public. lori: we will let everyone else
know what you are up to today. charles: we have been rocking on the show, by the way. adam: it is time to check the markets one more time. >> i do not know if you have seen this. the popular colored shirt. a hot seller. it is trendy items like that that are rocking the sales. the stock is looking tremendous today. of more than 9%. adam: we flashed out on.
lori: she was talking about it as a high item. adam: charles was talking about the young people. >> you guys are under 30. lori: donkey kong and mario brothers taking a pay cut. nintendo will also be offering a new portable gaming device. the newer device lacks the 3d capabilities. nintendo had to issue a warning.
it could impact vision for users under the age of six. the price drop is an effort to make it into your home. adam: what goldman sachs wants goldman sachs to get ahead. lori: but first, the ending unemployment line. what it will take our economy. we are back after this. ♪ [ male announcer] surprise -- you're having triplets.
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the boost containment to 23%. the fire has consumed 293 square miles. the tomatoes were flying in spain. 130 tons of ripe tomatoes. the town needs the money to pay down debt. by the way, portable showers are available. lori: thank you so much. the unemployment rate may be down. according to my next guest, it will take years for this to return to full employment. you did some of your own calculations on the unemployment situation. we need 2 million more jobs to
get us back to where we were. how did you come to this number? >> that is the difference between how many people were employed and how many were employed in july. the actual jobs deficit is bigger than that, however. lori: what is the deficit? >> between seven and seven and a half million. lori: since we follow the payroll report on a monthly basis, how many new payrolls need to be created in the economy. >> if we have job growth of about 80,000 every month, that would be enough to keep the unemployment rate unchanged.
it is almost 7.5%, which is terrible. we have to add jobs at a faster rate than 80,000 a month. in the last 2.5 years, we have been adding at the rate of 80,000 per month. that is pretty slow progress. the jobs deficit in spring quarter was about 7.4 billion. lori: you are throwing out a lot of numbers. as we have seen in recent payroll readings, would you say that is a recent improvement?
>> we have done better in the last 2.5 years. we have been closing the jobs deficit. we have cut it back by about a quarter. it is an incredibly long recovery. adam: can you pinpoint why? >> a lot of ways to account for this stock. there is not enough demand in the united states to put to work everyone who is willing to hold a job at the current place. my judgment, we began hacking away at the stimulus way too soon given the depths of the
recession. that is condemning a lot of young job seekers to unnecessarily long and painful spells of unemployment. lori: thank you so much. so far, it is slow and steady. they want good jobs. this is a general term. the jobs that are being created are low-paying and part-time jobs. adam: you can call it debt ceiling three-point oh. we have less time than first thought to fix america's spending problems. steve forbes is next. lori: putting your foot down at work, literally. what happens when you ditch your chair for two years.
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syria. raytheon, northrop grumman, lockheed martin and boeing, all with up arrows today. back to you. adam: lauren simonetti, thank you. >> okay. lori: is it deja vu? the battle over the debt ceiling begins, again after treasury secretary jack lew says congress will have to come to a deal by mid-october, sooner than we realized or risk default. can we keep kicking this can, here comes the phrase, the phrase is back, kicking the can down the road or is it time to fix the budget once and for all. joining us now "forbes" editor in chief and media chairman, steve forbes. >> good to see you lori. lori: as you know we're under the sequester which meant significant spending cuts in the defense budget. if we engage syria will that put more pressure on the defense budget? >> it will put some pressure on but sadly given the nature of the sequester and president wanting to raise spending again i'm afraid you will not get
agreement among republicans, a serious agreement where you can keep cuts in at the same time and give some relief to the defense department. it is just going to be one of the casualties of the gridlock we vix so we're moving towards the national debt being over 17 trillion. nobody in washington really seems to want to stop the growth. they talk about, but never do anything about it. the argument a lot of people make why nothing gets done, it would hurt the economy. is that a valid argument? >> absolutely not. if you have government spending where do they get resourcing from? they get it through your through borrowing money or printing and taxation. it hasn't helped our defense posture was the sequester earlier in the year. the first time in years you actually had real spending cuts, not phony ones they always engage in. that was very helpful for the economy. lori: steve, the republicans are stirring the pot though this time around. they're saying we'll keep the sequester in there and some of the tea party republicans as well are saying we demand defunding of obamacare if we're
going to approve any kind of budget to raise the debt ceiling. what do you think about these tactics? >> you're not going to be able to defund obamacare. what they should do instead is take up the president who said republicans have no alternative. they have a variety of things that can be done. nationwide shopping on health insurance. equalize tax treatment. if you're an individual you get a deduction if a company gets deduction buying health insurance. positive things to make that your program. set the stage for 2014 because the senate will not agree to defund obamacare. obamacare sulfaing on itself and i think that process will continue. adam: as we get into the argument in october about raising the debt ceiling what we've done with the sequester will there be a loud voice saying look the sequester has not hurt the u.s. economy, it's actually benefited? will there be rational voices making the case that the hugely they talked about in the federal government did not take place and it didn't slow the economy or did it? >> no, it didn't.
it actually help the economy and think republicans will lead with that. the president will fight very hard and play the card of a scare again, we barely escaped the last one. now this will be truly terrible and try to set the stage to try to get thing repealed. normally you would get a compromise but unfortunately the republicans don't trust the president. they don't feel they're going to get real cuts and returns if they take the sequester off. and one of the things republicans should do in the debt ceiling crisis, setting the stage for 2014 is, realize, you're not going to get real reform on medicare and social security right now. but instead, say, let's have, instead of just the debt limit, why not instead have a percent of gdp? if you don't meet the percent of gdp, congress's salary is cut, other salaries are cut. there is real incentive. things like, and then, look, statesman-like. 1974, presidential powers to control the budget were removed.
mr. president, even though you're the opposite party, we'll give you those powers of impoundment back again so you can help get control of the budget. he will reject it but the public will be impressed. this is it statesmanship. you're trying to really do something. lori: this is fascinating. we appreciate your take. it would be wonderful to see that nation under fold and avoid another, you know, debt ceiling showdown that ultimately results in a default of our sovereign debt and then a lot of tumult in the markets. >> we won't get the default but we'll get the tumult. lori: we'll get tumult once again. >> a lot of drama. lori: if syria, fed taper hasn't done enough to roil markets these are the times. steve forbes. thank you. >> appreciate it. lori: we have a programming note. it is for me. i'm hosting for lou again. 7:00 tonight, lou dobbs. joining me retired lieutenant colonel bill cowan. we'll continue to discuss the syrian crisis and what the president should do about u.s. involvement. hopefully by the end of the day we'll learn more and get the
intelligence reporting on what the weapons fair scenario is in syria. adam: not green but envy? senior correspondent charlie gasparino on what the bank is buying now. lori: gold prices wavering after sharp gains. we're get a check of treasurys. let's check the 10-year yields. yield are backing up. treasurys are selling yesterday after a huge bid of the flight to safety. investors south out the perceived security of u.s. government debt. gold, oil, all on syria. again it is 24 hours later. yields are backing up, 2.79 on the 10-year. we're up after back after a short break. union. father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock?
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hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. >> i'm cheryl casone with your fox business brief. jpmorgan chase face a million dollars in fines from u.s. regulators. 9 bank is under investigation for allegedly selling identity protection products to its credit card customers with false promises. the fines could come in september. sales fell 2.1% in decline. the national association of realtors says that it is the second straight month contracts to purchase previously owned homes fell. mortgage applications fell for the third straight week. the mortgage bankers association says applications also include refinancings dropped by 2.5% last week. the average rate for a 30-year
adam: all right, we're on the record, all of wall street knows goldman's number two executive gary cone is envious of lloyd blankfein's role as the firm's ceo but what else does he covet? charlie gasparino, i'm having trouble talking about today. what is going on over there? >> i think it is safe to say goldman is in a little bit of an identity crisis right now. the firm is known for taking risk. risk now is a bad thing on wall street in a post-dodd-frank world. what have they got? they have a business model that involves trading but they can't really trade as much anymore. used to involve private equity and stuff like that. they have to divest from private equity in a dodd-frank world.
so now they're looking around and they look at morgan stanley and this is the key thing. morgan stanley was always, of the two big sort of investment banks, white shoo-in investment banks, very prestigious, it was goldman in the lead, morgan stanley number two. now i'll tell you, the tide is shorting to shift on wall street among analysts. morgan stanley stock price is doing well. james gorman convinced analysts he has a right business model. it is based less on risk and more on advice. that comes to one of the biggest brokerage networks in the world on wall street right now. that brokerage network is something gary cone sources are telling the fox business network have told people he is very envious of. what is interesting, those statements gary cone has made starting to get around the street is fueling speculation that goldman itself may sort of take a dive into retail brokerage. we should point out, this comes up every so often. it came up during the internet
years, 1998, 1999. i have remember talking with people at goldman saying they actually entertained buying a online brokerage like ie, like a schwab. not buying brokers themselves or something like that because they needed to get what's known as retail, the average investor and that is a stable source of income and that speculation is going on. we ran this by goldman firly. pr people have no comment but when you talk to some other people inside the company they say as of right now there is no effort to buy something. theoretically they could buy ubs's brokerage department which every three years -- adam: they will need a name. something the retail investor -- >> ubs has a name. the old painewebber brokerage. it has some very good teams. lori: there has not been a lot of banking consolidation lately. >> how much else can there be? lori: yeah. >> there are five or six big banks. what is interesting, cohn making the statement i don't know if they go that route and buy retail, i don't think they will anytime soon. what i do think is going to
happen, it shows there is a huge identity crisis at goldman sachs about what type of bank they're going to be. they still make a lot of money. still have a lot of smart people there. gary cohn obviously wants to be number one. he has been number two for a long time. i hear he is chafing at the bit big-time internally but him making that statement says something about the internal, about the identity crisis at goldman. adam: i'm going to switch gears real quick because you just brought up smart people. no doubt larry summers is a smart fan. no surprise. the administration is leaking he will now be chairman. >> we did the story last week. adam: peter barnes has been talking about that. >> peter barnes has been doing this a while. i initially thought it was janet yellen. that was the street's pick, that is first name they put out there. what is interesting about summers he has a lot of friends on the street. adam: right. >> it seemed like they came to his aid and they pressed administration this is a smart guy. we reported last week it was 60-40 he would get in there all
he has to do is vet him now. cnbc is trying to take credit for the vetting story. we had it days before. i don't think that is such a big deal the vetting process. why are they growing with summers? adam: right. they beat up wall street all the time. >> i think, and i think what a lot of people on street think, the president believes in couple three years, remaining time in office there will be financial issue. lori: another credit freeze if. >> maybe not what we had in 2008. probably not what we had but we'll have an issue. we could have an economic downturn. we could have a some sort of a spillover from europe or whatever's going on in emerging markets. obviously the fed's going to have to tighten rates which will have an impact on the economy and the markets and think i they feel more comfortable with summers in there than janet yell en, he has more steadier hand, more knowledgeable. adam: let's hope we don't have another 2008 again. no one wants to go through that. >> i believe the president believes we'll have a economic
downturn again. lori: with the fed coming in to you are point, tightening too soon. >> by the way the markets -- lori: we were talking with steve forbes about the possibility of another credit default if we screw up the next round of budget negotiations. >> steve's friend of mine, do you think that, steve didn't say -- lori: he said he does not believe there will be a second default. >> i agree. lori: but there is always the risk. >> i don't think so. adam: we'll take it up over drinks. charlie, thank you. lori: think someone already started drinking. adam: me? no, i keep the scotch on the 18th floor. all right, charlie. lori: we want to check markets, zero in on gold. david williams joins us from the floor of the new york stock exchange. so, david, welcome to you. gold clearly behaving as a safe haven play yesterday. that seems to have turned around. just a one-day strategy? >> i don't think it's a one-day strategy. in fact i think it is a lot longer strategy. syria had a big effect for one day, yes, but i think gold is a much longer term play right now. lori: they were talking to me in
my ear right when you said, david, longer term blank, can you repeat that? what is your forecast for gold? >> i think it's a longer term play. gold is roughly two-year downtrend, two-year downtrend since two years ago in august. it has been fading and it actually hit a low in june of this year. and since then it has been rebounding pretty nicely. so the syria situation has come into effect but it is very short term i think. lori: of course we have the fed likely starting to taper, maybe tighten next year. that could be very bullish for gold prices too. does that support your theory? >> i think regardless what the fed does i think gold will be okay because gold went to such low levels. if the fed tapers it will be okay because the economy gets better. there is all sorts of excess reserves in the bank. those reserves get loaned out. that is a little inflationary which helps gold. if the fed keeps qe going that there is money to buy gold so i think gold is very solid at
these levels. lori: david williams, thank you for your take. >> thank you. adam: forget hawks, forget doves, the employees at federal reserve are just plain chicken. why workers are afraid to speak out next. lori: the perils of sitting at work all day long. one man's unusual step to ditch the chair and stand tall on the job. his story is next. ♪ hi, i'm terry and i have diabetic nerve pain. it's hard to describe, because you have a numbness, but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at that point i knew i had to do something. once started taking the lyrica the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior.
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improved his work experience. welcome to you. standing up, appropriately enough. how long have you been standing. >> that's right. i've been standing for two years now and the changes in how i work and how i feel have been remarkable. adam: what are they? >> well, i used to have a bad back. i used to feel sluggish. i used to end my day, even if i was sitting all day i would end up with no energy. but now that i've been standing basically all day long i have more energy, my legs feel stronger and i don't have any back pain. lori: now you're not wearing high heels. i imagine you don't wear high heels on a regular basis, so how can woman, who want to dress professionally in the work place, who enjoy wearing their high heels i would imagine being more challenging speaking from personal experience to stand up eight hours every day. >> yeah, it could be. if you want to set up your own standing desk situation you may want to experiment with padded mats on the ground, different types of shoes. i know here in new york a lot of women will wear sneakers to work and put on heels while you're at
work. lori: that doesn't fly at fox business network. >> you might have to experiment to figure out -- lori: if you're standing up to do your work, what do you do when you take a break? >> yeah, good question. i actually take lots of breaks during the day. that is part of the benefit of standing. i'm more active when i approach my work. i will meditate during the day. take a nap. leave my desk for lunch and i will take frequent walks. so, i sort of have to do that or i else the standing gets actually harder than i want it to feel. adam: how do you become more productive if you're taking all those breaks. >> good question. i feel like when my energy is good, my mind is good, i'm well-rested i'm able to get more done at the time in front of the computer. when i'm in front of computer sitting all day long, it is easy to mindlessly surf the web and get distracted. when i'm standing i pace my work and get stuff i need to get done. adam: we were talking in the segment, you started working out
doing two year experiment of standing. could the fact that you started exercising, could you attribute that to the increased productivity around feeling better about yourself as opposed to standing for two hours or two years while you're working? >> that is really good point. standing while you work is definitely not the solution to all of one's ails. anding i exercise, try to keep my weight low and, and, sleep well in addition to standing all day. but, just by standing people burn an additional up to 500 calories a day. lori: wow. >> depending how much you weigh. adam: a bunch of people in the building stood up. lori: what does your building look like or your office? does everybody stand up? we're talking about movement in standing at work in the tech industry in particular. tell me the dynamic in your office. >> i have work in a shared work place, which is new phenomenon in the tech world where different companies work in all one big room without any walls between them. you can literally see how everyone else is working. i've seen in my office the last few months i've been there at
least three other people have started standing. it is spreading and i learned this practice from watching other people in the startup community too. lori: thank you. for sharing your story. we're motivated. adam: in fact, his work place may have improved by standing. maybe workerings at federal reserve should, corny thing to do, give it a shot. looks like the federal reserve employees may have a morale problem. there was an independent survey conducted of 400 of them back in april. it show as workforce that is demoralized. ever try to go through security at that place? that is enough to demoralize you. "huffington post" requested the survey. it showed zero team work at the fed. they want to bring in larry sum officers good move. employees feel underutilized and that discourages creativity. summers will fit right in. half employees disagree with the statement, i trust the senior leaders of this organization. the fed responded to fox business saying the
employee satisfaction results were within industry and government norms. that is great. division leaders will continue their effort to foster a work environment that supports employee best efforts to promote a safe and sound banking system. lori: well, at least larry summers isn't boring? adam: no, he will fit right in. lori: coming up oil and energy stocks are rising i have a long with expectation force a military strike in syria. "wall street journal's" gerry seib says there are clear reasons why the united states is being pulled into this conflict. he joins ashley webster and i stick around next hour on fox business. stay with us.
gainers. lori: "the wall street journal" is reporting that the white house wants to move fast and stop another possible chemical attack in syria. washington bureau chief gerry seib is here in moments. ashley: america's shale boom, aqua america, spending millions on a water pipeline for the use in fracking. the stock by the way, near an all-time high. we'll have the company's chairman right here to talk about it. lori: first, top of the hour. time for stocks now. let's head to straight to lauren zimmmerman on the floor of the new york stock exchange. lauren, stocks near the highs of the day, so far reversing yesterday's deep he willing. >> we're seeing a bounce-back. in fact the s&p 500, yesterday was at lowest level since june 20th. its biggest drop since then the dow is seven or eight points from its high off the session. we got a report on pending home sales for the month of july. those are instances where contracts for the homes are signed and they fell more than expected n fact they fell for
two months in a row. this is a leading economic indicator for sales of existing homes. and that just goes to show you that higher rates are starting to affect things right now. existing home sales happen when that contract is actually completed. this is a list of all red arrows here. i want to bring up d.r. horton. they actually did hit a 52-week low a little bit earlier. back to you. lori: good information. thank you as always, lauren simonetti. ashley: well, the u.s. and its allies are weighing options for an attack on syria hoping to prevent another chemical attack. the question is how soon could we see military action? that is the big question, with rich edson live at white house. rich? >> the administration says they're still weighing that. they're weighing the specifics of any type of response. meanwhile on the international front we're seeing the same dynamic on the u.n. security council we've seen quite some time, the other four permanent members against russia. u.s. state department say the
russians at every move have failed to hold syria accountable. meanwhile there are u.n. weapons inspectors in syria. a u.n. spokesman says its chemical weapons team has not requested an extension to stay in the country longer than its september 1st deadline. meanwhile when you look at some other dynamics of this, hacker group, calling itself the syrian electronic army, going against two websites yesterday, helping to, the post, "new york times", twitter along with that. when you look at the next stage of any type of international fight here, capabilities when it comes to non-state or even state actors will get better. >> they will be making investments in those capabilities because they know it can work and, it, can have a pretty significant effect on our politics and our economy. >> meanwhile back here in washington, an argument with the a number of republicans on precisely what exactly the administration should do before
it were to lawn of any type of response to what's been going on in syria. you have a few dozen republicans in the house requesting that the administration put any type of action to a vote in congress beforehand, something that's been echoed on the senate side by senator rand paul just coming out with a statement right now. congress is saying they want to be involved. one problem being, congress is out for the next couple of weeks. back to you. ashley: rich edson at the white house, thanks very much, rich. lori: let's continue with the topic of syria. for that we head to gerry seib, "wall street journal" washington bureau chief. gerry wrote a -- wrote a fantastic piece in the "wall street journal" why u.s. may have to engage, take action against syria. welcome to you. >> thank you. lori: want to begin with the day's developments. all criticism on the obama administration for taking its time, getting this intelligence on the reality and whether or not we can confirm the chemical weapons use in syria? >> well, look i think everybody has been burned over the last decade in various places about the use of intelligence.
i think administration wants to be careful. they're sort of getting it from both directions. people who think they waited too long to get involved in syria. people who are not really eager to see them jump in now. i think bigger issue is not intelligence. i think bbgger issue is making sure there is some kind of an international liance that is formed before action is taken. as rich indicated that will not be the u.n. u.n. security council is pretty much a dead end because of the russian factor there but there is a desire to have an international element to this action whatever it may be. that may involve the u.s., u.k., and maybe the french and the administration is trying to get that knitted together before it does anything. lori: critics of the coalition suggest the u.s. is being pressured by britain and president olan yesterday they would fund the opposition, the rebels about. do you think -- go on. >> that's a good point. there have been a pressure from the french. they have been leaning forward on syrian opposition. they're unhappy about the administration not doing more to
support the opposition. they clearly want action now. whether they participate or not is a question. whether the british have more military assets to bring to bear. that will be a question. will it be u.s. only military action or multinational effort made. even if it is only a symbolic multinational effort. you're absolutely right. the allies have been pushing administration toward acting in syria even while some domestic political forces, senator rand paul, for example are trying to hold them back. lori: do you think it is imperative for the u.s. to get involved in syria because of chemical weapons? to your point, to the crux of your piece the other day, syria is virtually proxy state of iran and very dangerous and scary nuclear program and fallout from that? >> you have to distinguish between getting involved in a syrian war and doing something to back up threats about chemical weapons. i think on latter there is not much doubt left the administration will do something. on former it is trying to do that without getting directly involved in the war.
iran is important factor. it is the elephant in the room in some ways on several levels. first of all, as you say, this is really not just a syrian civil war anymore. it's a proxy war for syrian axis. iranians, syria, president assad and hezbollah on one side and just about everybody else in the middle east on the other. secondly iranians are the main force that has been supplying the regime in resupplying the regime. they supply a lost arms. third the iranians have a nuclear program. they will watch carefully to see how the international community treats syria chemical weapons program the i don't think anybody wants iranians to conclude that you can get away with misbehavior on the weapons of mass destruction front when that will be a big subject in coming months in dealing with the irrainsian themselves. lori: gerberry, is fair to say that syria deploys weapons in an effort to lure the u.s. and coalition into another prolonged, devastating, deadly, economically devastating as well engagement similar to what we're
dealing with in iraq and afghanistan? >> i can't imagine why syrians would want to lure in the u.s. that is one of the questions people are raising? why would syrians do this now? what would be the point. maybe they misread intentions of west. must have been rebels used chemical weapons. why would the syrians want to draw in the west. i more than likely they need to decide to find out what the outer limit was and make some strides whale they come. could they went after places in the damascus suburbs where rebels remained strong. lori: one final question, what are the u.s. plans for syria indeed are? >> i think we're talking about days, not weeks. i think once you've signaled as clearly as the administration has that you're going to act, one you have gotten an
international linement in places as i said before, you might as well move and do it. i think we're talking about a matter of days. lori: gerry seib of "the wall street journal", the washington bureau chief with the paper. thanks so much. >> happy to be with you. ashley: stocks pushing higher after yesterday's 1% drop. top market strategist david kotak says syria, it is indeed a high-stakes game. we'll find out what he is adjusting his strategy next. lori: aqua america gets in on the america's shale boom. the chairman will talk about the company's multimillion-dollar pipeline next. oil breaching 110 a barrel mark. all on syria and disruption concerns. we're back after this.
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syria here and we certainly seen that reflected in the markets but at least today we're clawing back some of yesterday's loss. >> well, we're clawing back some of it but we've got a development after possible shooting war, military action. you have a oil price shock. if you take oil stocks and energy stocks out of the stock market today, the rest of the market is flat. this is being powered by one sector, the upward movement in the broad indices and averages. one has to ask two questions here, are there unintended consequences if the u.s. acts? the u.s. is going to act. at this point the line's been drawn in the sand and what's the multiplier of those consequences? this is a very dangerous area of the world. in our shop, we've got a cash reserve. we're not fully invested and we're actually reallocating some moneys to bonds now that interest rates in the tax-free sector are up around 5%.
ashley: is that in direct reaction to syria or have you been taking the strategy prior to this? >> syria piles on the evolution of the strategy about the federal reserve. tapering, how much, when, what's the policy. and then, summers, yellen, the politics of the fed, who's going to make the policy and now along comes syria and we have another question we're going to learn about maybe in this military action. what's the impact of the sequester on the defense budget? and how does that play out? this has become a very complex quagmire. ashley: yeah. >> mind field. ashley: when it comes to your clients, david, i read a note of yours recently, you said you went on massive four-day trip, 7,000 miles, visited six cities. three-time zones, meeting with clients across the country. you say they are concerned. what concerns them the most? >> they don't, they don't have confidence in monetary policy because they don't know what it
is. they don't have confidence in the political system because we have a divided house in washington, and it is dysfunctional. and those were the two things i found in my client same time, wa geopolitical event. and we do know we're going to get a change of regime at the federal reserve. but we don't know what it is going to be. so the combination is disillusioning to clients and investors, to audiences in this trip. i came away, and i said we've got a very big uncertainty premium in markets and it is likely to stay there for a while and when you deal with that, you got to have a little cash on the sidelines. ashley: but you do like the tax-free municipal bond, but does detroit give you cause for concern? and other cities across the country that are in similar condition? >> well, i wouldn't touch the cities. you've got to do your homework. so, cities, whether it is harrisburg or detroit or
stockton, california, they're are a number of cities you've got to get under the hood and look at the credits but if you look at the highest grade, quality tax-free bond today, they're out there with the yields between 4 and 5% and they're not city credits. they're not detroit's. when that analysis is done, at our present tax structure the taxable equivalent yield is about nine. where are you going to get nine in a liquid investment of very high credit quality? i don't see very much of it. so we shifted allocation to tax-free bond. ashley: very good. do your homework. always good advice. david kotok, thank you so much for joining us. we appreciate it. >> thank you. lori: let's take a specific look at the market because the gains thus far are evaporating slightly. lauren simonetti joins us from the floor of the stock exchange. you're watching a couple big movers on the session. >> on earnings, we have a winner and loser. let's start with teach very.
that's a winner. shares are up 5% the company announced its highest net revenue and profit in the company's history. investors encouraged by that. additionally, several settlements of companies like cisco and motorola means teach very has more -- teach very has more cash to invest in research and marketing. overall this is good report. the bad report came from joy global. this is an industrial company. shares are down 4% today. joy global warning of sharply lower revenue as coal producers which is really china, cut back and revenue for joy could drop another to 20%. back to you. lori: what are you doing in 15 minutes, lauren? >> i will show you some movers right here. lori: we'll see you then. >> i will change my location. ashley: don't tell us where. >> i will change the shoes. i have flats on now. i will put the heels back on. ashley: we'll have to tilt the camera up. that is a lot of information.
have you had run much? >> i did. chicken salad from the cafe. lori: that's nice. all right what are your plans for after work tonight. >> my bed. i'm liking the couch or my bed? and you guys? lori: i will be sleeping here. as you know, right, summer vacation season. filling in for all our friend. ashley: all the markets, everything else you want to know. lauren, thank you very much. appreciate it. very informative. oil prices' we know pushing right around $110 a barrel on syrian concerns. sandra smith on the story next. lori: let's check the dollar maintaining its safe-haven status. axle merck is joining us. he will talk currencies, investment strategies, who is winning and who is losing in the foreign exchange market. we're back after this. [ male announcer ] these days, a small business can save by sharing.
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>> at 21 minutes past the hour, i'm patti ann browne with your fox news minute. president obama will speak on the steps of the lincoln memorial today on the 50th anniversary on the march on washington. the day martin luther king, jr. gave his "i have a dream" speech. in the final refrain of the speech dr. king says, let freedom ring. at 3:00 p.m. bells from churches, schools, historical
monuments will ring out. the wildfirer in yosemite national park is the largest on record and expected to grow. it consumed 293 square miles and 23% contained. the fire prompted air quality warnings more than 100 miles away. george zimmerman's wife has been sentenced to one year probation an community service. shellie zimmerman pleaded guilty to misdemeenor perjury charge for lying at a bail hearing following her husband's arrest. her husband was found not guilty in the shooting death of trayvon martin. that are the latest headlines on the fox business network and back to lori and ashley. lori: thank you, patti ann. on line media to add to the portfolio. >> if you've been watching me on this network for the last two years because i always go back to sina. it is one of these companies where you have got everything sort of working out for you. they start out as a traditional online portal but the play now that webo, a mix of twitter,
facebook, it is, they have got 30% market share, like 500 million registered users that was coming into the year, and they are making money. i think their mobile plan will be huge. that takes them even higher. china issues, government over. lori: throw it all out at you? are you certain that that stock is actually making money because -- >> i feel confident. i feel confident. i will tell you this though, i always tell people the revolution in china, the next revolution, if you will, will be powered by webos of the internet. they should them down in the past. it has been a while now. i think in 2011, we saw a whole pattern where the government tenned in to respond to certain -- lori: that chart look as little top heavy. >> what you have to do is pull up a three, four, five-year chart because it has been higher. the next leg will take it through 92. ashley: there you go.
>> look at that. lori: ask and you shall receive. the main reason, the number one reason you should be investor in the company because of its ceo, charles chow. anytime a guy named charles is in charge of a company how can you go wrong? that is how i pick them. that's right. lori: got anything else? listen, been really helping people out from 6:00 to 7:00 tonight. i'm having a ball, making your market. try to make money. not enough people have. they have excuses. can't wait for the crash. what i say, too bad. you're out of a lot of money but not too late. lori: making your market with charles. >> "making your market." lori: see you then, charles. >> okay. ashley: crude, tending gains is being crude, isn't it for a second straight day on concerns over u.s. military action in syria. sandra smith in the pits of the cme with today's trade. even with by the way higher than expected crude inventories,
prices still staying up there. >> shows you how bullish this market is ride now, right, ashley? look at wti, front month. we're looking above 110 bucks a barrel as we speak. watching prices in the last 60 to, 60 seconds or so, we've seen about a 25-cent jump. so the volatility we're seeing in these oil markets right now is unbelievable. so farce where the -- as far as where the prices o based on an assumed attack by the u.s. on syria, soc-gen put out a note that they believe the wti contract could see $115-barrel on the u.s. attack and brent contract, the european benchmark, could jump to $150. obviously they're putting a lot more premium on the european benchmark contract because the brent crude is more used by the europeans, obviously we're using wti. but nonetheless, guys, there is
a very bullish market happening in anticipation of action over in syria. no news yet on that happening. it is expected to happen tomorrow. meanwhile these markets are watching closely, also to see if possibly we could see the obama administration tap into the strategic petroleum reserve. i talked with dominic at energy management institute who said they believe that is a possibility. we saw it last, during the libya crisis in 2011, the tapping of those emergency reserves. that is a possibility. they say this time if that were the case, we could see an immediate selloff. last time we did that we saw an $8 selloff in the price of crude. markets are in a wait-and-see mode. we're watching it. oil $110.10 a barrel. we're at two-year highs for the contract. ashley: brent contract, that is really a worldwide benchmark, not just europe as you know. that did hit 150 bucks that would have some impact. thank goodness we're producing a lost oil ourselves.
sandra smith, thanks so much. >> yeah. lori: we're digging deep near syria's impacts on global market with currency expert axel merk. ashley: toyota is pulling out all the stops to show the hybrid vigor. jeff flock from michigan. jeff. >> perfect car to talk about on the day when oil prices are going crazy. folks at toyota says the future does not begin with e for electric but with the letters hy, for hybrid and hydrogen. bob carter behind me will talk about that and also tell us, i hope, sales projections maybe. secret information, only on the fox business network as we drive. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes.
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ashley: all right, here we go. looking at the top 30 chart. more green than red, which is a good sign. the energy stocks moving higher as oil moves higher. exxonmobil on the downside. lauren simonetti at the new york stock exchange where the dow is still up 61 points. lauren: i told you i was going to move, so let's move. chevron and exxon powering the dow. that is half of the games, actually more than that. we are also looking at marathon, the top gainer on the s&p 500. gold is taking higher as well, we can see they have up arrows. we do have a little bit going
on. to stocks going up for everyone going down, much better than the situation we had then yesterday. we will see what happens in the final hour where we often see a reversal of the trend throughout the day. ashley. ashley: lauren simonetti walking in her heels. lauren: they are new, do you want to see them? ashley: styling, look at those. lauren: they are hurting a little because they are brand-new. >> break them in and we will see you in 15 minutes. as u.s. military intervention in syria seems more and more imminent, they have been fleeing risk with the u.s. assets. in particular the u.s. dollar. the u.s. should only be a small part of your currency portfolio. president chief investment officer, pleased to welcome you back to the show. so the dollar has not lost its safe haven status.
is it proper, or was it overdone? >> it has been mixed. the dollar benefiting versus the emerging market. today the euro is a tad weaker. ultimately there is no longer any safe havens. even the u.s. dollar purchasing power is at risk, old is up today. ultimately we are in an unstable world. syria is going to be gone and over with very soon and it is backethat the other issues on te table. we just don't know what will happen with the federal reserve and more importantly we cannot afford high interest rates down the road. we're going to have very active policymakers. the nice thing about the currency market is if you think of the currency war or the policymakers, you can put your money where your mouth is. lori: l wants to pick up on one of the first things you said.
there isn't a currency that is a safe haven right now. can you expand further on that? the dollar for today against some of the trading partners look to be playing a role. >> most people are not aware the euro is a best-performing major currency last year, the euro was up under the dollar. that is how great the cleanest will speak. companies like apple are great companies yet the share price comes down. there is a mess in europe, yet it can move up. we have major challenges on sustainability, entitlement, so forth. when everybody things the world is safe in the u.s., maybe that is priced in, spreading these eggs little bit, the chinese are spreading the eggs by diversifying the currencies, so they can do the same thing. if you do it on the currency
side, you're not taking on the equity risk and not taking on interest rate risk. while it was great while the party was after. with that there is quite common. lori: record lows, why is that important to keep an eye on it if you are a novice? >> the market is down, but we're going to have volatility in the bond market. the decade with tranquility in the bond market is over and the pain will be most felt in the less liquid market and these countries didn't take advantage of the good times to induce structural reforms. the money chasing is coming out, it will be brutal. even when it comes back, i would not go to those markets. much rather stay with the advanced asian play like for example china with the chinese.
lori: looking back on the discussion with the fed, so they hold off on hiking the interest rate even longer? more than they expect right now? >> the problem is the fed has no clue. they need to have a plan, and it hath rather than look at every data poin pointing everybody els doing, that is uncertainty. it is creating jitters in the market as well because you cannot price the risk or what is going forward. we don't know what is going to happen going forward, so we can complain about the printing press all along but the good thing is at least we know what to deal with and they are losing the purchasing power but at least i know i can sell the dollar because i know the printing press in the u.s. will be far better than the printing presses an in the rest of the
world. lori: always an interesting conversation. axel merck. ashley: we have talked about it all day, closing at $110.10 per barrel. the 1% gain, the highest close by the way for oil since may 2011. more than two years ago. the major automakers battling it out to be the number one in hybrid vehicles. jeff flock in michigan where toyota is showing off a worldwide line of hybrid. jeff. jeff: breaking big news today. i am in a very special hybrid which i will show you in a moment. we are with bob carter exclusively rolling down the road, the ford chief for toyota. you brought the whole automotive press in today to show the 23
worldwide hybrid models. you want to make it clear you are the hybrid leader, right? >> we have 70% of the hybrids from the world today worldwide are toyota. we are very proud of that fact. jeff: i know it is a sting from ford because it attempts to. i had to ask you about tesla. you would not think of them as a competitor. with the success they have had when the focus you put on hybrid, are you neglecting the all easy market? >> no, not at all. tesla is a good partner of ours. we source the powertrains from tesla. a toyota body on it. jeff: if you look at the
numbers, you sell 30,000 prius in california, by far outstripping everybody. >> right. the electric market is a very important segment of the market itself but it is going to remain small for the next couple of years. for most consumers hybrid is the way to go. jeff: this is hydrogen and electric, you think this is the future. this is the future. all the amenities a customer wants with pure water coming out of the tailpipe. jeff: does not get any better than that. on the market in 2015. is that electric? forget gas may be. always appreciate it. ashley: and testing stuff, jeff flock. how about that, water out of the tag two tailpipe.
lori: maybe i will have my dog to test it. maybe we should have just tested, i like my dog. ashley: we like jeff. lori: a look at how the syria conflict could impact the precious metal. ashley: plus aqua america shares jumping 20% this year. the chairman and ceo will be telling us how the company is getting a boost from the shale boom. i look at the treasuries going at the break, moving up 10 basis points. meanwhile, on the 30-year, pretty much the same story up 6 basis points. 3.76% three at we will be right back. has come to a delightful e. then i better use the capital one purchase eraser to redeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight
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and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. adam: i'm adam shapiro with your fox business brief. the cause of the three-hour nasdaq fail will be the focus of industrywide meeting next week. and industry committee including exchanges and officials from brokerage and technology firms will need to examine the cause in response to the nasdaq failure. swiss bank is adding 1000 jobs in tennessee. the governor announced investment bank will create a support hub in nashville. at in those over the next five years, you already have 2000 employees.
lori: fears of a possible u.s. action against syria and the debt ceiling driving investors back the precious metals driving prices, but is this really the safest bet? elizabeth macdonald is here with the bottom line. liz: we were reporting that. the last couple of months. the federal unwind of stimulus, they were in retreat hitting around $11.80 in may. depending on what to look at, so
now what is resistance level for gold. the tapered it back down. it did point down. is the resistance 1420? you don't want to be day trading gold right now. we are at three and a half month highs, what happens with syria? will we see it up even higher for gold and a pullback if the problems with syria settle down. you don't want to be caught on the wrong side of the street. ashley: asked to begin to get focused on the fed and tightening up the monetary policy. liz: it was 15% for the year, so the bull market is 20% up, it is
not in the bull market territory so be careful about getting in and dumping out gold right now. be careful with it. lori: thank you be at ashley: a quarter until, time for stocks as we do every 15 minutes. we are joined by good friend ben willis. still up 45 points, very much headline ridden again for so long we have been headline driven, seems like we're very much in the same boat, especially with syria. >> we took one step forward but two steps backward yesterday and the day before. still leading to an in correction mode. still forming a correction pattern. i don't think it is over yet but long-term investors, that is an opportunity to be buying and adding to your portfolio, not panicking. ashley: we got the old budget battle looming in washington. and of course, let's not forget
the fed and the taper coming, there is a lot of headwinds out there, don't you think? >> the big picture to keep in mind for a long-term investor is if interest rates are going up, it is an indication of a healthy economy, healthy economy means profitable companies and those are where you should be looking to put your money, people realizing over time you get the quarterly report the money you had in the bond funds you have been losing money. ashley: thank you as always for joining us. lori: how about getting in on america shale boom. the chairman is our special guest. ashley: first a look at the winners and losers. one step forward after two steps back. we will be right back.
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ashley: now the fracking industry is a booming dismiss with water pipeline spending serious cash to create the infrastructure to transport that h2o, but not without risks. they build a pipeline, chairman and ceo joins us now to talk about this. it is interesting to talk about this because i did not realize how much water the process needs. >> they can use 4 million to
5 million gallons of water. ashley: high-pressure water and release the gas and oil and that it rock. >> turning do right, do left, hydraulic fracturing is what it is called. we called it fracking, but it is hydraulic fracturing of the rock. ashley: standing all the water to the well site. >> aside as a logistical issue. having to climb up thousands of miles. it is a logistics nightmare. we thought we could build a pipeline that would work, 1000 pounds per square inch. not a simple pipeline upend down hills. it is working. ashley: are you the first company to do this?
>> the first that we know of in the area. ashley: your help now is the shale boom kicks into high gear. speak we have $4 billion in assets and this is a $50 million asset. we see ohio and pennsylvania as a couple key energy states 10, 20 years from now. without the proper infrastructure, they will not get there. ashley: where do you get all of that water from? where does the water come from? >> it is regulated. we get it from the commissions and so on. right now the trucks are going with every stream. it is much different. huge flows that we're pulling in from. ashley: is there concern the water will drop to a level that makes it a concern? >> no.
if it gets too low, we cannot hold water out. it is for protection. if it is high enough, it will only end up in the ocean anyhow. it is fresh water that will end up being saline. ashley: what happens to the water effort is used in the process, can you recycle it? >> about 20% is returned, that is recycled and used with about 80% for the next well. ashley: there has been by some accounts a little bit of a slowdown in the shale boom. some have not been as promising as expected. are you concerned there will be a little bit of a leveling off? everybody was looking at fracking and the amount of energy it could produce. but there is a little bit of a slowdown. >> it is below $4, slowing down production. people are waiting until it is cost-effective to drill.
the second slowdown is because the pipelines are not in place to take the gas away. and contrary to what you said, ashley, the wells that had been drilled are actually prolific. ashley: no guarantee that it will be that way. very interesting. so this is a huge investment. are there plans for any other pipelines, or will you see how this one goes? >> the oil company now understand that the advantag ads has over using trucks. i think they're willing to: vest or sign a contract before we start our next one, which we will do. it has been a success, we feel it will be around for 10, 20 years. ashley: your stock hitting an all-time high this month, stock
up nearly 20% on the year, things are going well, congratulations. >> thank you very much b good ashley: thank you. lori: sticking around, i will be filling in on "lou dobbs tonight." let's not get too excited. we have a serious situation unfolding in syria. we will have that discussion how it is impacting the u.s. market and policy with our lieutenant. and the 15th anniversary of the "i have a dream" speech. and the president will speak momentarily. a lot to cover this afternoon and this evening on the fox business network. ashley: coming up on "countdown to the closing bell," problems with jpmorgan. government fines could reach into the billions according to at least one major financial newspaper. we spoke with them to get their side of the story. that and the market actions straight ahead with cheryl casone.
♪ ♪ cheryl: hello, everyone, i'm cheryl casone in for liz claman. it is the last hour of trading, and if a u.s. strike on syria is imminent, you would not necessarily know it judging by major u.s. markets today. they're rebounding from tuesday's big selloff. right now take a look at the dow, the s&p and the nasdaq. all of the major indices higher right now, dow up by 56 off of session highs, s&p is up about six points as well. and take a look at oil, one of the biggest stories we've been tolling as those conflicts have continued to escalate. oil and all that's related to oil in the meddle east. $109.88, that's up 87 cents. and you're also