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tv   After the Bell  FOX Business  October 21, 2014 4:00pm-5:01pm EDT

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>> no doubt. bank of america sup 2% as jpmorgan. great day on wall street. [closing bell ringing] liz: bells ring on wall street, it's a win for the bulls. dow jones industrials if not at i highs of the session, up 211 points. nasdaq had a huge gain here. david: wow. liz: 2 1/2%. that is good enough for 103 points. the russell 2000, also back on track, up 17 points. having pretty much erased much of the loss it is had endured over past couple months. let's get right to it. "after the bell" starts right now. david: this is the biggest gain of nasdaq since 2013 a huge rally, we've not seen the likes of well over a year.
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we have tom courtney. he says, bewarery of commodities. someplace for your money, not commodities. stan neiman, tell us why energy and technology are the best places for your money. certainly was today. larry shover joins us from the pits of cme. lair sy, did you see today coming? >> absolutely not. goes to prove the pain trade works in both directions. last wednesday we were 6% lower, 1820. today the market rallies as much as it does much the reasons are long and furious but really nothing changes the narrative. right now traders admit this is not a fundamental rally but more of a psychological. the same reasons the market went down last week, no one seems to know. what's really changed, the only thing that changed is sentiment much last week everybody thought 1800 on stx cash was inevitable. that did not happen.
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now it seems prerogative we'll hit 1950 tomorrow or thursday when we have cpi or ppi coming out. liz: we're not counting ebola patients. maybe that had something to do with it on a day -- >> there you go. liz: we see a lost green on the screen. tim courtney, why are you saying be wary of commodities? energy sector was up, soft commodities, grains were higher today, it looks pretty good? >> i think a commodity basket or even individual commodities, when you have such low inflation around the 2:00% annualized rate, historically commodities have actually lost, lost ground. they have negative real returns. so with a lot of the growth stories around the globe, europe potentially slipping back into recession, emerging markets like china, their growth is slowing, commodities i think are a pretty risky play considering how volatile they normally are and limited upside they have with a
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low growth scenario. david: dan, you were you are hot on three hot oil energy stocks. why are you hot on oil even though we have a strong dollar, even though we have lower demand from china and europe? of course we have very little inflation. doesn't look good for oil as a commodity. why are you hot on these oil stocks? >> well, dave, i'm hot on the oil stocks today because they have been beaten up so recently. i think what you saw today was cash coming off the sidelines. i think that will happen in oil refining industry. it will happen in the oil, companies that supply for refiners. really the chevrons, occidental petroleum with high dividend yields, really low pe, continuing to make make money. they have been hurt because the price of oil came down. in the long term they're great buys at prices they're at today. liz: larry shover, you see a great day that gets people confident. is this a mistake to chase this
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rally? we try to teach people you don't jump when the market is up another 200 points. at the same time if things start to look better, you don't want to miss a longer term move to the upside? >> yeah, great question. i feel the same way. we have to look at our portfolios holistically and put a little of everything in the portfolio. that said if you assume the s&p feel hundred earnings next year are $132, we're looking 14 1/2 times earnings or times multiple. that is reasonable. so, yes, this is a good time to get in because we're still seeing double-digit earnings growth and i admit china is slowing but it is still growing from a very, very high base. keep in mind, capital markets are broking 25% a year. i personally don't belief europe will go into recession. it is complicated but it will work itself out. it is still expanding, but expanding at a very, very small rate. so yes, i would look at things hole is i cannily and balance my
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portfolio. get in the market. david: larry or tim, i want to go to tim on this, despite what larry is saying a lot of people are worried, continue to be worried what is happening in europe. china came out with the numbers, the slowest rate of growth in china for more than five years. china is slowing down but still pretty good growth by our own standards but not by their standards very much. liz mentioned, ebola fears are gone. nice to have those fears shaken out of this market. with slowdown in europe an china, are there still concerns? >> yeah there are. certainly the growth is a major concern, not only in europe and china but even in the united states. we would like to see higher growth here too. i think the market is largely priced that in. international markets and emerging markets like china, comparable companies are trading at about 35% discount to their u.s. counterparts. so i think the market has priced that in and i think they are going to get through that. they're going to get through their growth muddle through and
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address some of their problems and over the long term those markets should actually outperform the u.s. markets because we're trading at such a discount. liz: dan, i want to get to your picks. you really like intel which is up 3% today. you feel confident about tech stocks. we want to mention yahoo!, numbers, david are out at moment? david: they are out. the stock is trading up after-hours. we're going through the numbers right now to figure out exactly what the misses or the beats were on eps and revenue. as soon as we get those, we'll go to. >> let me ask you, dan, intel or qualcomm, they're kind of competitors here. i know they have different wheelhouses in which they show strength, but, you take both of these in your portfolio? >> i think you take both of them. you capture both competitors. they are only ones in the markets they're in. i think again back to the yield strategy we have in our portfolio -- liz: hold on, we have to go to yahoo! with the numbers. cheryl. >> we getting number, liz and david. earnings per share, a big beat,
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52 cents. the estimate was for 30. fifth two cents on earnings per share. revenue, ex-stack is 1.09. the estimate was 1.4. revenue, a nice beat, headlines crossing from yahoo! right now, in particular it looks like display revenue, display ex-tac was down 6%. it is all about the advertising with yahoo! they ended quarter with $12 billion in cash and marketable securities. one of the big questions on the conference call, what are they going to do with the alibaba revenue. 5.8 billion they got from the yahoo! ipo. what will they do to make bigger acquisitions? that those headlines will not likely cross until the conference call. mobile revenues, $2 billion. that is another thing. the stock moving higher. is up by 1.8% right now as we go through the third quarter results for yahoo!. but again, acquisition costs,
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earnings per share, big beat guys, big beat on earnings per share for yahoo! >> now up 2 1/2%. quickly, larry shover, mobile revenues in excess of $200 million on a gaap basis. looks like they're doing pretty well on some of these levels. i'm sure the naysayers will find something negative though? >> yeah, i think they will. including me. long term, even short term the fundamentals are clouded. search, a lot of is done through dib shun deals. to me that is not a good long-term strategy. short-term probably a good stock. if the stock rockets on that basis alone i probably look to sell the stock because i do believe, good grief, they have spent $1.3 billion since 2012 on acquisition deals. they want answers on some of these acquisitions like tumblr. it takes time. trading $45 a share. is it 45, $50 stock? we'll see. you're taking a lot of risk to buy the stock and waiting for it
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to back down below 40 to get into it. david: we have a special coming up. maria bartiromo will host a one-hour special tonight, right after this program, on what is happening with yahoo!. a lot of questions about how much of that cash hoard they have is going to be spent in stock buybacks. whether or not their market cap, their holding of alibaba stock are almost equal to their entire market cap. is yahoo! just alibaba? what do they have have? or is it terribly undervalued company? it is actually one or the other. dan, i want to go to you because there is another stock in the news today. that is mcdonald's, a mainstay of americana as well as coke by the way. two big brand, coke and mcdonald's at that are not faring well. are the old brands on their way out? >> i don't know if they're on their way out per se but i do think that you have trouble building growth in those kind of brand. i think from value perspective you will not see as much value. obviously mcdonald's didn't beat estimates but they're still making money and still paying a
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dividend. i think coke problem may be deeper. people are moving away from coke products or those kind of products coke makes whereas mcdonald's is trying to be ahead of the curve in the fast-food industry. two different problems, two different companies. mcdonald's happens to be in our portfolio but i think the long-term growth trend for mcdonald's is definitely ended. liz: it is in a lot of people's portfolios, one of the most widely-held stocks. tim looking the fact both of those names, coca-cola and mcdonald's have international exposure you actually do like an etf that go into international value. first of all, define for our viewers what international value is and what is the opportunity here? >> yeah. i think, in today's market you've got large u.s. companies that are operating in all the global markets and you've got international large companies, also operating in all of those same markets. and so, this international value sector really is going and buying a lot of the larger
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companies, many of them in europe and asia, which are operating in the same markets as u.s. companies, but they're value oriented. trading much more cheaply on price to earnings basis or price to book basis f we can buy those at large discount, say 30% discount to comparable u.s. company, history shows over time we should actually achieve higher returns and that is what we're going for there, looking to buy value with the higher expected return. david: tim courtney, thank you very much. dan neiman, thank you. larry shover always a pleasure. we just talked about mcdonald's and coke missing their earnings. we want to hear from you about this. are old brands like mcdonald's and coke dying out? send us a message or tweet us @fbnatb. your answers coming up. liz: yahoo! as you noted reported moments ago. beat on top and bottom line. the stock is moving higher. is it time to get in or get out? larry says sell.
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does that mean marisa mayer's plan beating estimates is paying off or is starting to? we'll break it down. david: we're two weeks away from the midterm elections. two weeks from today, the results will have a big impact on your money. we break down names and sectors that will lose or win big if republicans take the senate. liz: who will win big in the world series? it kicks off tonight on fox. prices for the games are skyrocketing. the second highest on record as tracked by tick i.q. what is behind the surge. and how high could tickets climb? ♪ how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy.
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liz: shares of yahoo! jumping 4.3%. following earnings moments ago. david: let's head to nicole petallides on the floor of new york stock exchange. they like what they see in the numbers. >> in after-hours the stock is jumping, beat on top and bottom line and earningsings per share and revenue. you see a beat here for yahoo! maries say mayor is hot topic. activists investors have been pushing, marissa mayer with breakup of the merger with aol to beef up shareholder value. they beat the street with the numbers and stock is higher in the after-hours. they still have, according to s&p analysts, 800 global users and analysts here in the after-hours also noting that they are really using those
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users to their strength. we'll watch this one tomorrow but certainly a win here is what we're seeing. back to you. liz: nicole, thank you. david: for more on yahoo!, bringing in ron josie, jmp managing director and senior research analyst. great numbers, ron. let's take a big chunk of this problem with yahoo! straight on. yahoo!'s market cap is about $40 billion. its alibaba holdings are worth about $35 billion. that means it is either a small $5 billion cap company or very undervalued company. what seems to be happening right now after-hours, the market thinks it is undervalued. what do you think? >> yeah, dave, thanks for having me and i think that is exactly right. that has been the debate for yahoo! last couple years, really how much is the core business worth? i think a lot of fun fun investors looking at this business, they say, okay you have a company really isn't growing in a growth market where margins have been coming down. now you had this quarter, search
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a little bit better, display a little better. guidance is great and highlight mobile a big part of reason for growth or call it better revenues. maybe you have a little bit of a debate back and forth is the core business doing better if that is the case, then i think you can make the case for pretty decent valuation autocarp levels, so. liz: when you have the choice of google and facebook, who knows what yahoo! offers american users and american content users, what does marissa mayer revitalize core contented and display to make it more attractive? >> that is the question. facebook is our top pick. when you think about the web -- liz: more so than google, ron? >> more so than google, facebook is our top pick. it is doing very well. we'll see what happens with results a week from today. back to yahoo! with the question, if your investor in yahoo!, it is a turn-around
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story. it has been a very long time in coming. you could argue it is still coming because one quarter doesn't necessarily change the trajectory. that is a nice deposit. so facebook is one we continue to see outsized growth and riding the wave on social and mobile and video, et cetera. yahoo! is benefiting from certainly their alibaba assets. you hope that, you hope that what ceo mayer is doing in investing in social and mobile and video these different ad formats can drive higher prices. frankly we're not seeing the higher prices quite yet but you are seeing better overall results here. so it's a good deposit towards that but there is a still long way to go. david: for years alibaba was sort of piggybacking on yahoo! only way to get into alibaba by buying yahoo!. now it looks like it might be the other way around. is it conceivable with alibaba with a market cap, what, over $200 billion, compared to yahoo!'s 40 billion, is it possible that alibaba could buy yahoo!?
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>> well, i mean anything's possible. alibaba certainly has all the resources in the world available to it, given its market cap and recently successful ipo. i think the big debate or things people will be watching for at yahoo! next several quarters, what does yahoo! do with 33, $35 billion call it investment or ownership in alibaba? and so, you know, could alibaba buy yahoo!? that is a possibility. maybe they minimize some tax impact around that deal with ownership today but it's hard to say for sure what would alibaba do from yahoo! perspective, i think the either way you can't deny there is a lot of value from their ownership in alibaba. liz: boy, we shall be watching it along with you, ron. thank you so much for joining us. david: thanks, ron. liz: coming up 5:00 p.m. eastern, maria bartiromo breaking down every detail of yahoo!'s conference call, what it means for your investment and maybe some of those competitors.
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he loves facebook. david: does indeed. >> u.s. tightening restrictions on travelers from west african ebola stricken countries. we have details on new regulations coming up. liz: midterm elections coming up in two weeks. how could the outcome affect your money and portfolio? stay tuned to watch. david: key television provider dropped key channels including cnn who will be impacted by them? details next. ♪ she's still the one for you.
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liz: dish network playing heart ball. it stopped carrying turner broadcasting channels after the
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company failed to renew a distribution deal. david: what went wrong and what cans nels will be missing from your lineup. ashley webster join us with details. a couple of news channels, right? >> dave and liz, as always in disputes about carriage it is about money and two sides blame each other. after lengthy negotiations, neither turner broadcastorg dish network could agree with new terms on distribution deal at that already had been extended. the report claims that primary sticking points are issues related to cnn including carriage fee increase turner wants, scope of digital rights that would be licensed and the length of the contract. dish wants to release online video service by end of this year and secured rights for several media outlets. so the question what does it all mean for the 14 million or so dish customers? well as it stands they're losing access to total of seven channels including cnn, turner classic movies, trutv and cartoon network. not affected by the blackout are
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turner broadcasting flagship cable networks, tnt and tbs which are not part of the agreement involved in this dispute. dish has been involved in several high-profile carriage disputes including that 2012 standoff with am cnet works that lasted for months. a statement released by the senior vice president of programing for dish said quote, in the past year dish has successfully renewed agreements with many large content providers. as a result we're confident that we offer ad deal to turner that reflects an appropriate value for our customers. turner meantimes claims it already made concessions in negotiations and blames dish for the channel's removal. the blackout comes as turner has seen steep ratings declines at several of its networks. just early this month announced it would lay off 10% of the its workforce as part of a cost-cutting plan. as it stands, liz and dave, we are in limbo. liz: ashley, thank you. david: i want to know what that adult swim network is. i miss the adult swim network.
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who knows? kind of intriguing name. homeland security officials announcing traffic restrictions from western africa. liz: peter barnes is with us from the white house. talk about the new regulations, peter. >> hi, david and liz. starting tomorrow all passengers who are coming from ebola outbreak countries in west africa, to the united states, must now arrive at one of the five airports, five u.s. airports that have enhanced screening and resources in place. the five airports are jfk, newark, dulles, atlanta and chicago. the countries are liberia. david: sierra leone and guinea. basically the department of homeland security is patching a hole in the system here. the cdc says currently 94% of the passengers from those countries already arrive in the u.s. at one of those five airports. it is about 140 people a day. so this move should sweep up another 10 or so passengers a day from those countries who
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likely have escaped the enhanced screening. >> it ensures that individuals who are traveling on commercial airlines to the united states are funneled to these five airports where there is personnel available to pull them aside and insure that they get proper screening before entering this country. >> but while some republicans welcomed this extra layer of protection they also renewed their calls for an outright travel ban from these countries. bob goodlatte, the chairman of the house judiciary committee, said in a statement, quote, the administration must do more to protect americans. obama administration officials openly admit that these enhanced screening measures would have never detected the disease in thomas eric duncan, a non-u.s. citizen, who later infected two american nurses in dallas. when duncan arrived in the u.s. as you recall, showed no
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symptoms of ebola. liz and dave. david: peter barnes at the white house. peter, thank you very much. well the midterm elections is just two weeks away. a lot is at stake for your money. energy, health care, banks, just a few of the sectors that will be heavily impacted by the outcome of this election. we break down the potential winners and losers. liz: plus the world series kicking off tonight. tickets are going for more than $1,000, on track to be the second highest ticket price ever for the world series. why are so many fans drawn to the series? and how high could these little slips of paper really go? ♪
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but, this may be the most impressive number of all. introducing the all-new mercedes-benz gla. mercedes-benz. the best or nothing. liz: time for a look at today's market drivers. quite the green day on wall street, with all three major indices closing higher. the dow rallied for the third straight day. s&p and nasdaq posted four straight days of gains. nasdaq posted the largest gain since january of 2013. gold not doing too badly either, hitting a five-week high. the precious metal rising $7 to, settle at $1250.70 a troy ounce. sales of existing homes, this is good news too, rising in september at the fastest pace, sales climbing 2.4% from the previous month to seasonally adjusted annual rate of
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5.17 billion. -- million. >> so how do elections affect the stock market? two years ago, remember many analysts predicted that president obama's re-election would lead to a market contraction. boy, were they ever wrong. the opposite happened. we had one of the strongest two years stretches of growth in the stock market history. with midterms elections just two weeks away, how will the outcomes impact your portfolios? joining us lauren smith of capital alpha partners in the nation's capitol. robert van battenberg of new edge. thank you very much, gentlemen. lauren, for for you, look at overall picture if the republicans win the senate, how do you think it will affect the overall markets? >> well, david, thanks for having me on. historically the markets actually do pop after election day but not necessarily, and as you mentioned in 2012, it is not necessarily an endorsement of w. more relief that the
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uncertainties that been lifted from the markets. david: robert, let's take the opposite case, what if democrats win the senate? that would provide a certain amount of certainty that things will remain the same. >> well, in our analysis we highlighted very clearly that the market clearly has an expectation of about5% odds that the republicans will take senate. democrats, lo and behold if they win, there will be a shock for the markets. i don't know if that leads to dramatic selloff but it will definitely away from the best-case scenario which is that republicans will win the senate. one problem is, that there are a number of runoff races, georgia and louisiana, and might not give us a defining answer of who controls the senate until january because louisiana runoff, the first, election will be on november the 4th but the second leg will be in december and in georgia, the second leg will be in january. so that may create some sort of
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uncertainty that the markets have not really anticipated. david: okay. let's look at what is at stake here. loren, look at health care first of all, in particular insurance companies. a lot of insurance companies depend, maybe depend is too strong of a word but look forward to continuing subsidies, obamacare subsidies, written into the law, if republicans take over senate they may push back and may halt the subsidies and may hurt insurance companies, no? >> i think that is exactly right, david. i think there is a clear negative implication for insurance companies. some hospitals may be negatively affected as well. really a massive swirl of implications on health care. i mean, it could be positive for many companies such as large employers and retailers but for insurance companies i think possibly negative implications for sure. david: robert, might you grow so far to short certain health care companies if in fact republicans do not win the senate? >> well, i wouldn't go that far.
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i'm more thinking along the lines of where the republicans will attack the affordable care act around implications of the senate control under the republicans if they win. david: right. >> i don't think that the republicans will have that majority that leaves them, allows them to revoke the affordable care act. i'm more interested in some of the items that are very high on their agenda, which is more of budget control. david: right. >> which allow to be able to pass through and get on obama's desk without the filibuster of the democrats, even if they have a sliver of a majority in the senate. things like, for example, the keystone. david: keystone pipeline. that is great. loren, the point is, the republicans taking over senate, they will not overturn obamacare. they will not be able to overturn dodd-frank financial rules, but there are certain aspects to rules and regulations they could chip away at. robert mentioned keystone pipeline. in financial affairs i wonder what particular regulations that
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banks might be lobbying to change right now? they may be to overturn with a republican senate? >> david, you're absolutely right, and robert made an excellent point as well. for the republican senate majority, a theme that we've been discussing is, size matters. do the republicans gain a majority of eight or even nine or 10 senate seats? that gives them a more muscular majority to advance some of these policies? a major, another major standoff over the budget. possibly the debt ceiling. could be a vehicle for republicans to push for changes to the dodd-frank act of 2010, obamacare. and that is really where the rubber could meet the road in terms of real serious potential changes to these laws. david: robert, what about the overall again, pulling back finally? do you think it will make one, one difference one way or the other if the republicans win the senate? because we've seen this market kind of single focused on the federal reserve board more than
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any other particular issue. and that's not going to change over the next couple years. >> first of all there are a number of new fed members of the board and have to be nominated and approved by a senate which at that point will be a republican senate. so that will, you know, create some, a level of uncertainty but i don't expect that. what i'm more interested in to what extent can republicans look for tax reform and more budgetary control. i take away some of the pork currently in the budget, with respect to alternative energy. this will weigh on fiscal spending. this will weigh on economic growth. this will benefit treasurys more than anything. so that is what we're looking. the last time we had this kind of stuff was in the mid '90s. newt gingrich, contract with america took over congress and controlled, essentially boxed in bill clinton and federal budget deficit went down, treasury rates went down, treasurys went up as a consequence of this. david: that was of course with newt gingrich. we don't have that kind of a
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blueprint. the republicans don't, anyway, at this point. gentlemen, thank you very much. lauren smith, robert, we appreciate you coming in. >> thank you david. david: liz? liz: the world series matchup between the san francisco giants and kansas city royals gets underway on fox. this is one of the most expensive series if you want to go watch it. we'll tell you how much fans are forking over. plus, mcdonald's profit plunges in the third quarter as sales drop. will the company's new campaign to win back diners be enough? if it fails what is next for the stock?
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liz: breaking news. this just hitting the tape. daimler bend is selling its stake in tesla. tesla's stock is reacting a bit. down a percent at the moment. daimler says it will continue to work with tesla. as you know it has a deal in battery making and all kind of relationships there with mercedes but at the moment it appears that daimler says it has sold its tesla stake, most likely at a profit. more on that later. >> first game of the world series gets underway tonight on fox as the kansas city royals take on the san francisco giants. ticket prices are absolutely soaring. just short of record highs. how much are fans paying to see these two teams play? and they're very different teams and what is behind the jump in prices? jessie lawrence is watching each tick of the price because he runs tick i.q. he is founder and ceo.
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you're a big ticket dealer looking at these numbers. get right to the royals. they are an expensive ticket right now. how much? >> the royals are hot. $1300. $332 average price of kauffman stadium, which is higher than the at&t park in san francisco. liz: giants are little cheaper there, 1159. >> right. what is interesting the giants in 2010 were $1700. so really all about supply and demand. the giants hadn't won in 54 years in 2010. huge pent-up demand. that is the case this year in kansas city. 29 years. giants in 2012 was 1250. this year down to 1150. liz: look at bottom row. 010 that was most expensive ticket ever? >> giants hadn't ever won in san francisco and hadn't won in 54 years as a franchise. liz: these numbers are fluctuating right. >> sure. liz: the royals were a little more expensive. they have come down now.
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why is that? >> market settles. buyers and sellers find equalibrium. liz: what was the high? >> royals were up to 1450 at one point which would have put them number two behind the red sox or a ahead of the red sox in 2013 for the home average but they have come down talil over 1300. liz: conversely giganticket prices are climbing since friday. >> that is interesting. the giants are on verge of history. this will potentially third world series in four years. there is a bit of a dine necessary forming. liz: a bit of? >> giants this could be historic. let's go out to see the game. liz: good weather to see games. >> definitely. liz: major league baseball post-season seems to have jumped in popularity, hasn't it? >> it is always a great run. depend who is in it. depends on the storylines. baseball storylines are so important. royals underdog story sold phenomenally. liz: against the goliath. that is just a great story. >> great story. not just ticket sales.
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we, lids is a site that sells merchandise, hats, shirts. royals memorabilia is up 200% compared to last year. not just tickets but other stuff people are going for. liz: but the tv viewing, you have a big market san francisco. >> right. liz: you got kansas city. we love you kansas city but it is not the most major television market. does that mean the viewership might suffer just a bit. >> this could be one of the worst tv viewership ratings last five years? liz: why? >> kansas city small market. san francisco has been there three times. east coast, west coast dynamic. you will miss some audience based on when the series is starting and when events are starting each night. as good as ticket prices are, tv could be just as bad. liz: can't belief the stanley cup is smallest number. i'm a big hockey fan. >> i know. liz: talk about the hottest sport to watch? is it still football? >> sure, football is always, supply demand. less events. less seats in a season. baseball, you have to sell
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3 million seats for every team every year. so many tickets out there. with football, looking a third of that. so it is different dynamic. liz: coming up on nba season. >> yep. liz: the hottest ticket right now is a shock to many, not to me but it is? >> lebron and the calves of course. liz: cleveland cavaliers. >> that's right. liz: opening night is october 30th. that is the first home game lebron playing back in cleveland. the price is what? $902. >> not cheap. liz: whoa! >> it is up 281% relative to last year. the season average for the caves. they have jumped significantly. lebron is great story. hometown hero comes home. people paying to see it. liz: you get to go to cleveland too. >> thank you. liz: jessie lawrence, whipping through the ticket prices for mlb. watch it tonight, david. it is on fox. david: i am definitely watching. i don't care what anybody else says. one brokerage firm getting bullish on biotech.
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we'll tell you which five stocks it says have 100% or more upside potential. concise don't appear to be loving mcdonald's earnings plunged 30%. jeff flock at the country's first mcdonald's for answers. jeff? >> hallowed grouped here are david. take a look. ray kroc's first mcdonald's opened in 19556789 what is the future of the company. back in a moment with some of that. g. waiting. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.
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david: we saw earnings. now we see gains after-hours. shares of yahoo! gaining following its quarterly earnings release. giant beat on top and bottom line with earnings per share coming in at 52 cents and revenue of 1.09 billion. that was greater than expected. yahoo! reported that price per click increased 17% year-over-year while the price per ad decreased 24% since the same quarter last year. good and bad news. coming up 5:00 p.m. eastern, maria bartiromo breaking down every detail of yahoo!'s conference call, what it means for your investment. looks like the stock was undervalued by action after-hours. liz: take a bite into mcdonald's numbers. world's biggest burger chain
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announcing third quarter results. sales fell around the world. are customers turning their backs on it. we decided to head to the streets to ask people last time they eight at a mcdonald's? >> the last time i ate at mcdonald's was boise, idaho and two months ago. >> i really don't know. i think five, six years ago. >> i realize what the gross stuff what it does to your body. i didn't want to do that. >> something to fill your stomach. that is about it. >> i can't even remember, been so long. i don't eat mcdonald's. >> we're not mcdonald's customers but we do like egg mcmuffins. >> i don't eat at mcdonald's. david: wow, i don't eat there, five or six years. when was your last time at mcdonald's? liz: a long time ago. my kids don't want to eat there. david: i-95 during the summer. place on i-95. can mcdonald's hold on to customers as well as investors seems a lot fewer people are eating there. joining us, jeff flock live from the nation's very first mcdonald's in illinois. jeff? >> you guys don't spend enough time on the road.
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i ate there yesterday. but that's fine. this is actually a piece of mcdonald's history this is ray kroc's first franchise mcdonald's. great story. bought out the mcdonald's brothers and now there are 35 million mcdonald's. people are not loving it today. put them up. the number for september was actually the worst number, same-store sales, since 2003, down, over 4%. and the forecast for next month is for another decline. what do they got in mind? what will they do about this? i was on the conference call with don thompson ceo of mcdonald's who say, we'll simplify our core menu. we'll allow our franchisees to customize more and something create your taste which you will be able to do more complicated stuff. i tell you. look through the window over here. this is ray kroc's vision. what was on the menu. a hamburger, cheeseburger, french fries and something to drink. that's the whole menu. that was simplification he had.
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seemed to work back then. the other thing of course, is people, as you heard and folks you interviewed on the street, concerned what they're putting in their stomach. mcdonald's asked people, ask us questions. what do you want to know? one of the questions what is the in mcrib. they answered the question and here was their answer. the mcrib patty starts with pork ground from the pork shoulder. they don't say what it end with, however. consequently, mc's stock is not doing so well. any major competitors out there, look at chipolte and look at burger king for example, all doing a whole lot better than the golden arches. this was the golden age. we'll see if it can return. david: i still like french fries and fish fillet. liz: get you on the french fries and their coffee. real truth comes out, jeff. david: thank you, jeff. looking for some return on your investment? we'll tell you what three stocks one investment bank says could
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rally 100%. liz: skechers announcing unlikely spokesperson. one who's famous for singing about being under the sea. we'll tell you who, when we go "off the desk." can you start tomorrow?
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yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train.
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big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. liz: merrill lynch compiled a list of biotech stocks it says has upside potential of 100% or more and are also cheap. first up, gw pharmaceuticals. that is down 30% over the past month this company has impressive pipeline of drugs including one on the verge of being approved to treat help pick patients. this company has fallen 25% in past couple weeks. currently trades $34. merrill lynch with a $57 price target on the stock. another stock, beaten down name, down 33% over the past month. the company recently received
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approval for an obesity drug. merrill sees that stock headed to $9. vital therapies and mps pharmaceuticals rounding out the top five. we'll put them on the facebook page. david: time to go "off the desk." skechers has a long history of selecting celebrities for its brand t has gone into left field for the latest spokesperson. 74-year-old beatles drummer ringo starr. he always wears those kind of shoes. shed to appear on tv print and online platforms. the marketing campaign lasts through june 2015. liz: we asked you if you think old brands like mcdonald's and coke are dying out. here are some responses. lisa on facebook says these brand along with ibm have yet to reinvent themselves for the new new millennium. david: brian on facebook was more blunt, like general mcarthur, irrelevant brands
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just fade away. liz: number one thing to watch tomorrow, is yahoo! maria bartiromo's call on the stock is due in next few minutes. maria, what should investors scrutinize on the call. maria: we're focused whether or not the company holds on to stakes in yahoo! japan and alibaba. we have the fox special report on yahoo!. we'll be answering big questions, will the company sell those stakes as the activists want it to do? will one of america's highest profile ceos keep her job? it looks like a very good number in extended hours. it is all coming up at top of the hour in just about a minute. >> this is a fox business special report. here is maria bartiromo. >> hello, everyone, welcome to a fox business special report tonight. yahoo! coming out with earnings just moments ago. a big beat on both top

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