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tv   After the Bell  FOX Business  November 14, 2013 4:00pm-5:01pm EST

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everybody would take that. [closing bell ringing] david: another record on wall street. we'll take that, all green arrows. we're talking about a good day of trading. not a spectacular day but again when you consider day after day after day, all of these records we do see a down movement on the russ cell 2000, but just -- russell 2000, slightly so. the other indices doing extremely well. the leader of them all is the s&p. this market just can't seem to find a ceiling, liz. >> in fact the previous ceiling according to mark newton was 1795. we're not too far from that. time for the front page headlines. fed chair nominee janet yellen signaling, it would be quote, steady as she goes for fed policy if she is confirmed as chairman n the testimony before the senate banking committee, that it is important for the fed to do what it can to insure a strong recovery. david: charles plosser said the central bank should have a sing
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mandate of fighting inflation. instead of dual focus of inflation an unemployment. liz: the number of people applying for first time jobless claims fell. the total dropped by 2,000 to 339,000. david: walmart stock little changed today after the retailing giant lowered its full-year forecast. walmart customers facing continuing economic uncertainty. many are shopper at cheaper dollar stores. liz: shares of another bigger retailer, kohl's getting hammered after it cut forecasts. lower profits. same-store sales fell disappointing analyst who is had predicted a small gain. david: president obama backed down on a key part of the affordable care act. he will let insurers renew health plans for one year for americans policies that would otherwise been canceled under obamacare. we'll get details on that coming up. "after the bell" starts right now.
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liz: we are awaiting earnings for jwn which is nordstrom of course, and not to mention applied materials. meantime we have action here. robert luna, sure have. est chief investment officer. will tell us changes investors might need to make to your portfolios and alan knuckman in the pits of cme. some of the recent ceilings i've heard from guys like mark newton, chart guys at new york stock exchange, 1792 to 1195. we're not far from that on the s&p 500. do we hit it? do we go through it? what happens next. >> there is nothie left. we talked about a month ago, 1815, from the 1757 high, down to the 1735 low. we're almost there. look at dow, only 30 stocks but the dow traded between 15,000hundred and 14,600. for many months it broken to the upside. the projection is 17,000. that is 7.5% away, extrapolate
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that on the s&p, 1925 is upside target after we take out the 1815. david: robert we first heard about it right here on "after the bell" yesterday afternoon. janet yellen coming out with comments early suggesting she would keep on printing money. what makes you think despite that despite the fed continuance of printing money if her confirmation hearing, if she is confirmed, what makes you think interest rates are going to go up? >> well you know, i don't know that necessarily they're going to go up here right away. i don't think they will rise as nearly as fast as people are worried about but i think when you're an investor you have to look at all possible range of outcomes you can face placing dollars in this market. and one of the biggest headwinds by far right now for investors is rising interest rates. as an investor when you're positioning your portfolio you want to take that into consideration and make sure you're taked advantage of opportunities. david: how, how should that affect the way you should
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invest? >> i think there are three things investors should be looking at right now. i think there will be a premium on growth stocks versus value stocks. i think also when what you want to look at instead of buying stocks like utilities and telecom with high dividend yield, you want fast dividend growers. i also think right now, emerging markets, developed international, europe and japan significantly underperformed. >> okay. >> investors should start moving into those areas as well. liz: very good advice. get to jo ling. we have to interrupt. applied materials, a amat is out with numbers. jo ling. >> we have beat on eps and revenue. eps coming in 18 cents, 19 cents which is beat of 18 cents. revenue at 1.99 billion. which is a beat on 1.97 billion. the ceo is looking ahead to 2014 they expect stronger investment in the semiconductor and display customers and major technology and looking into the first quarter of fiscal 2014 according to the report, they expect net sales to be up 3% to 10% from
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the previous quarter, liz. >> well, yes. and remember, they made a huge merger with tokyo electron. that is still in sort of the regulatory approval process but that could make this company a giant in the industry if it is approved. 17 countries they have to look at. we see the stock reaction. not much movement. it is solar business, is it not, jo ling where they do equipment for solar chips that has been really something that is touch-and-go? >> sorry, liz, we're going through nordstrom's, right now. it is definitely poised for good growth. executives at the top of the company certainly feel very comfortable with it. the ceo says this all plays to their strengths. they're not being shy bit, liz. david: alan knuckman, we don't see a lot of movement. in fact the movement is to the downside after-hours, despite a pete on both top and bottom line. why is that? >> that is not a big impact on the s&p. looking at that individual stock though it has been trading in dollar range for the last month.
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actually between 15 and 18 last couple months. it is 20% higher. i like the defend. it was up 75% coming into today. looking a momentum you might see people taking profits at an all-time high. david: would you buy tomorrow? >> buying here and leaning on the 17, that is the support point for the last month. liz: bid is 17.70. we see jwn. the price action in after-market session for nord strom. let me get it up here for the moment. we do have the stock moving slightly lower than the close. the close was $63.43. the bid is 62.30. same-store sales for 2013, for full-year they're predicting would be 2.5%. jo ling, are you looking because we have more? >> that's right. we have numbers, eps came in a beat for nordstrom. revenue at 2.8 million which is a miss.
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same-store sales are up .1 of a percent. we're looking through this to find more information on how perhaps the $102.5 million they spent on the new flagship store we're expecting in new york may have affected their bottom or top line here, liz. david: robert, let's talk about nordstrom for a second and retail sales in general. when the average out there has less money their pocket, what makes you think this is a place to put your investment money? >> nordstroms in general has fair valuations. as 2% dividend yield. one thing nordstrom is moving down slightly because the stock ran 15% in the past month. to see it pull back here is not a big deal. it's a fast-grower. it's a $12 billion market cap. they have a lot of room for expansion. one thing to recognize nordstrom, they have more nordstrom rack stores than flagship stores. david: have you seen action on the part of the consumer? that is my point, the consumer out
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there has less real money their pocket to spend. isn't that eventually reflect what is happens to the retail stocks like nordstrom? >> well you know i think nordstrom has a very solid customer base. you do have jobs right now. it is not something like a kohl's or a walmart who those people might be a little bit more impacted by that. i think those people are doing fine. they're opening up their stock statements and taking advantage of this s&p rally or maybe a walmart customer, for example, might not be able to participate in that. liz: let me spin it forward to two stocks you love right now and one of them, haines celestial, great leadership by irwin simon, who took this from a couple little kosher companies into a gigantic food conglomerate. he always said he wanted to be the kraft of health foods and now he really is. where is the upside because it has done quite well? >> i think this company is in the early stages of growth. it is not an inexpensive stock but no great growth company is
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inexpensive stock. general mills is $32 billion market cap. hain is the largest supplier to whole foods. outside of that if you listen to irwin on the last conference call, they want their products anywhere there's a cash register and groceries. there is a lot of expansion opportunities. when you look at grocers, conventional foods are growing 1%. healthy organics grow 10%. that is structural change in america they're taking advantage of. david: robert, we cut you off because numbers were coming in from the earnings reports but we were i can talking about rates if in fact rates go up what stock do you buy? two stocks in particular you think are well-positioned if rates go up, chubb and cincinnati financial. why? >> right i think the insurers in general, many insurers could benefit from investing reserves at higher bond yields they would be able to get. but one thing like i said you also want to get away from the high dividend yielders like utilities. both of these companies are paying decent dividends, 2 and
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3.4%. when you look at chubb they raised the dividend every year for 31 years. cincinnati financial for 53 years. so the ability to get a rate right now equivalent to the 10-year and these companies will be able to grow those going forward, that is an important part of the dividend component of any portfolio. liz: alan, let's quickly get back to the markets. i ask this because you follow something called the e-minis. explain to the viewers what those are. what, 1754 is you're looking at for the e-minis here? >> 1754 has been a critical number because that was end of week finish on october 201st, end of that week, and november 1st, end of week finish. it made an amazing pivot for whatever reason. that is the low of this week. it bounced right off it so an area technically to keep a serious, serious eye on for any reason. it keeps coming up in the charts. >> 1754 we'll watch it both of you. robert luna, alan knuckman. david: ceo and cofounder of
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solarcity and cousin of tesla founder and ceo elon musk. lyndon rife will join us for a fox business exclusive. about a partnership with tesla and electric car and the future of the entire solar energy business. liz: call it the yellen effect. investors cheered janet yellen's testimony on the hill but are markets getting a little ahead of themselves? we're going to game it for you. david: and our facebook question is about obamacare. president obama's retreat on a key part of the affordable care act. so we want to know will insurers be able to reinstate those five million policies that have been canceled under obama care? log on to facebook.com/after the bell. let us know. ♪
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it's not the "limit the cash i earnvery month" card. it's not the "i only earn decent rewards at the gas station" card. it's the no-games, no-signing up, everyday-rewarding, kung-fu-fighting, silver-lightning-in-a-bottle, bringing-home-the-bacon cash back card. this is the quicksilver card from capital one. unlimited 1.5% cash back on eve purchase, everywhere, every single day. so ask yourself, what's in your wallet? david: during a senate hearing this morning federal reserve chair nominee janet yellen defended the fed's stimulus perhaps but warned it is important to monitor developing consequences from the program. take a listen. >> it is very important for us to monitor financial risks that could be developing as a consequence of the program, for of low interest rates more generally, or, even more
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broadly, of developing financial risks in the economy. >> now, what would you argue would be the biggest reaction? the area where we saw the biggest spasm on janet yellen's comments was in gold. gold started jumping even with reports of weak global demand in gold. so how are other commodities impacted? we bring in our team. nicole petallides on floor of new york stock exchange. and down at cme we have our own sandra smith, fox business contributor, our fav, phil flynn. great to see all of you. phil, take you first. we saw the interesting move on gold, you can comment on that but talk about oil. oil is moving on real fundamentals? >> it really has been, look what happened to gold, we saw the explosive move. this is the dove we thought we were going to get and this is the dove we got and gold traders love it but i think there is an underlying story for gold. we've seen demand on physical side dropping last couple
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months. it hasn't been dropping naturally. it has been dropping because indian government is intervening with the goldmarkket. china expected they would get some financial reforms and they held back on gold purchases. we have pent up physical demand for gold. very difficult for a government to step in and stop a demand for a commodity. they have been trying to suppress it. i don't think they can suppress it forever especially with a fed printing money. that will be very bullish. david: that is a great point. as soon as you lift price controls up the price tends to go way up. apparently, inda yaw, by the way actively discouraging people from investing and high taxes and outright bans of gold coins in some cases. sanday, talk about oil for a second. phil flynn said it was overpriced at over 100. does it slip much more from here and why? >> look what happened. oil made five-month lows today. as we heard the words come out
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of janet yellen's mouth, oil market and energy market in general turned around finishing higher. oil prices are going back up toward the $95 mark. the best performing commodity down here today was rbob gasoline, wholesale gasoline prices. we've all been enjoying prices at the pump but enjoy them while they lasts. one of unintended consequences financial risks that janet yellen was referencing may be inflation. if we pump money in the system, devaluing the dollar, guys, a lot of commodity prices may be headed higher. a lot of the big investment banks have been saying the super cycle for commodities is over. but guess what? if we have janet yellen and more of this at the fed we could certainly see commodity prices go higher from here. liz: i'm glad you brought that up because we have seen a lot of big banks, so-called smartest people in the room saying that, nicole. was in any price action in particular to stocks related to soft commodities or hard commodities, that jumps out at you that shows you any
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different? >> a lot are moving along with the commodities themselves. what i was thinking pertaining to janet yellen's speech today. just the fact that you know easy money continues at least for now. i was watching things related to homebuilders and your home. for example, loews hit a new high again. home depot was higher. homebuilders were higher. much is dependent upon low mortgage rates. so for now we saw that group doing well. we know janet yellen right now is not moving in any way, she says we made good progress, but we have farther to go during the crisis and recession but now she is still feeling america's pain. david: you wonder what good progress is meant in those terms? the economy is so damn sluggish and unemployment rate seems stuck. liz: that line jumped out at a lot of people. david: it really did. nicole petallides, sandy smith, phil flynn, folks, good to see you all. >> thank you. >> well, audio equipment, people are touchy about their stereos,
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their speakers, everything that foes into listening. the audio equipment powerhouse behind the sounds of the rockettes is expanding from the big apple to brazil. harman international's chairman ceo tells us about his global ambitions and about the stock which has been on a tear. it's a fox business exclusive. david: president obama backing down on under political fire on a key component of the health care reforms but do three 20-year-olds have a quick fix for obama care? are they doing better than thousands of bureaucrats and a billion dollar program? we'll be talking to them coming up after a break. ♪ (announcer) scottrade knows our clients trade
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liz: time for a quick speed read of some of the day's other headlines, five stories, one minute. lockheed martin will cut 4,000 jobs in a response to decline in spending by the federal government. the large government contractor cut 20% its global staff since 2008. volkswagen recalling some 2.6 million vehicles worldwide due to technical flaws. 2.6 million, okay. the recall vehicles include the tigan, suv. the pickup truck not sold in the u.s. sales of google's chrome book, 11 have been suspended because of overheating charges. google and hewlett-packard arr working on program. used cars fell to the loyest average price since 2009.
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according to edmunds.com, average price, $15,261 lars. financial times saying using three deprinters could reduce weight and production time of aircraft components. that is today's "speed read." >> printing engines, imagine that. okay, well the disasterous obamacare rollout cost a billion dollars, employed thousands of bureaucrats and still can't get it right but in a little west coast office three 20-year-old programmers have put together an interface for health insurance shoppers that seems to be working just fine. so is this the fix supporters of obamacare could be looking for at least the website? health insurance site is called, health sherpa, it look the programmers less than three days to put together. joining me is michael wasser, the cofounder. great to see you, michael. thanks for coming in. >> thanks for having me. david: okay, the government just to reiterate here, the
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government's failed internet sites cost a billion dollars. it took thousand us of government workers and they have 3 1/2 years to do it. why did yours work even though you only had a couple of weeks and three people working on it? >> so, we started with the thought that is we could build a better experience for browsing health care plans and with that goal in mind we were able to really narrowly focus on a specific problem and solve that in a very meaningful way. david: again, i just have to ask, i know you came into this thing kind of with great intentions. you wean looking to make millions of dollars here but of course the government wasn't supposed to be making money either. they failed with 3.5 years and a billion dollars. why did you succeed with so little time and so little money and so little workers, so few workers? >> i think our problem was very scoped down. we weren't actually, and we aren't actually signing people up directly. we aren't verifying people for, for subsidies or anything along
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those lines. but we do help give an interface that helps people browse the plans very quickly and easily and identify the plans that are right for them. we believe by just scoping the program down dramatically we're able to just find some of the hardest, or the, not necessarily the hardest but easier sides of this problem and solve them. david: well, wouldn't you think that the government would have thought of that? >> well, you know i think that when you start any large technical project where you have to meet the needs of a very large set of the population it is very easy for that project to get scoped up to a large set of functionality and we were able to say, well, we're going to start with 80% of the population and address the needs of a smaller sunset of the population before, before we even started so. >> scoping it down, that seems to make so much sense, particularly when you deal with
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1/6 of the economy. why do you think the government started with everything, a big ball of wax that melted? >> we honestly don't really know what their intentions were or how they approached the problem to start with. you know, i think that a lot prove project that is have been going on just in general, you know, this is just the way that you want to approach a problem at a government level is make it accessible to as many people as possible where again, we're just trying to address a subset of the population to make it very, very usable for the broadest set that we can by taking the scope down. david: again, which is what we thought the government would do but clearly they have been incapable of doing otherwise. has anybody from the government contacted you and said, hey, look, you know, maybe we had our, our eyes were too big and we have to focus on the smaller stuff like you guys are doing? >> nobody directly reached out to us, actually just the other day senator angus king of maine,
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he put out a press release that he recommended people temporarily use the health sherpa over healthcare.gov. david: now, has that led to an increase in the number of hits that your site has received? >> well, just through the press in general and yes, through that, we have seen a large number of people visit, and just the last few days we've seen probably 1.4 million page views on our site. david: whoa. >> yeah. and about 150,000 people have clicked how to buy on our website. david: michael, i know you got into this without the intention of making money but you have to be thinking about making money right now. this has the potential of turning you guys into multimillionaires. >> so, you know, we've been very, very focused on getting as much functionality there as possible and making experience as good as possible and getting as accurate estimates as we can possibly provide to end-users. you know, but at the same time, yes, we do, all of us have an entrepreneurial background we'll be potentially looking into the
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future but right now we're purely focused on idea of getting plan information to the people. david: all right. >> making it as usable as possible. david: okay. in addition of course to the website not working as it has, you have the awful problem of at least four million people losing, losing their policies that they were happy with. that is not a good thing. the president today said that people can quote, reenroll in plans they have lost. you've gotten to know the insurance industry a little bit. how easy or difficult do you think it will be for people who lost policies to get them back like the president wants? >> i honestly, i can't really talk to that all that well. i don't know the details of that or how that is going to be implemented. david: well they could do a lot worse than to hire you guys to figure a solution for that as well as for the website. michael, all the best to you. you've clearly got a brain for the business here and, you could make a lot of money doing this.
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michael, good to see you. appreciate it. >> thank you. >> liz? liz: solutions can be simple. david: 20-year-old, three 20-year-olds in a small office doing better than a huge bureaucracy can. liz: bubble trouble. that is what federal reserve chairman nominee janet yellen was asked repeatedly on capitol hill today. we'll tell you how she answered and whether she offered any hints about taper timing and inflation. david: the sweet sound of holiday music. harman international, maker of high-end audio equipment launches its new york flagship store. we'll speak exclusively to the chairman and ceo coming right up. ♪ [ male announcer ] this store knows how to handle a saturday crowd.
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with the perfect vehicle that's just right r you, no matter which list you'ren. [ santa ] , ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900. david: time for a look at today's market drivers. stocks pushing higher following federal reserve chair nominee janet yellen's comments at her confirmation hearing. both the dow and s&p 500 closed at record highs. also climbing on comments from yellen was gold of course. precious commodity snapped its five-day losing streak rising 1.4%, to settle $186.30 an ounce. first time jobless claims declined less than expected last week. first-time claims dropped to 339,000, liz. >> well, she could be soon the most powerful woman in the
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world, federal reserve chair nominee janet yellen, who was on capitol hill today speaking out on fed policy and economy giving us a window how she thinks, will she follow in ben bernanke's footsteps? david: peter barnes followed the action and is on capitol hill. peter, what stood out to you? >> david and liz, what investors wanted to hear about as well as some senators was future fed chair's, we believe, feelings about when to start tapering these quantitative easing bond purchases, $85 billion a month. and, professor, dr. yellen stayed right on message and just said, as we heard from, ben bernanke, it depends on the data and the decision is meeting to meeting but that for now, the economy still need the fed's help. that unemployment, for example, is still too high. but she admitted that, back in september, at the meeting that markets expected the fed to start to taper, fed members
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decided against it because they were worried that interest rates had backed up too much just on the talk of tapering that had preceded that meeting. and that got one senator, saying, well, that sound to me like maybe the markets have got the fed boxed in. >> seemed to me, and i think you discussed this a little bit in the office, that the fed had become a prisoner to its own policy. >> we did have to ask ourselves whether or not that could potentially threaten what we were trying to achieve. but overall we're not a prisoner of the markets. >> an aide to the senate banking committee says the committee will vote soon as possible on yellen's nomination. that could be early as next week. we've already got one no vote however, right here on fox business earlier today. republican senator david vitter of louisiana said that after the hearing today, he plans to vote
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no because he didn't like what he heard from professor yellen about quantitative easing. and the too big to fail bank problem. david and liz, back to you. david: peter barnes in washington. thanks, peteer. >> the holiday season is just around the corner and world famous rockettes, you can not come to new york without seeing them, right? they have just started performances for their christmas spectacular show at radio city, with a major change that audiences just wouldn't be able to enjoy the show without. audio equipment giant harman international is now providing the speakers through which the songses and music come through. they will soon be able to experience all of harman's products at the company's new new york city flagship store. joining us in a fox business exclusive, harman international chairman, ceo and president, dinesh paliwal. we're a business investment. let's get it up front, your stock is up over 111% over the
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past year. what do you attribute it to before we get to the big store opening? >> we've always been focused on technology and connected lifestyle, whether the home or car or in the office. the people are demanding that we give them seamless content-based connected experience. and we have been on the leading edge. that's why we have 20 billion-dollar pack log in home and -- liz: sorry, 20 billion-dollar in order backlogs. >> automotive and home. liz: you need to start working and churning this stuff out. huge part of your business is the sound systems in cars. only 13% is for the average individual who would walk into a store which i'm bringing us to right now. you're having huge 8500 square foot store on madison avenue to sell what to the average consumer? >> all these years we've been taking backstage stage, whether
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radio city hall or madison square garden. we're taking center stage. want people to have seamless experience whether a head phone, wireless speakers or good ol' sound experience which hollywood artists have been playing and performing. this is more of an interactive experience and people will also buy. liz: look at, we're showing pictures of the store right now but you know the model to which everybody looks is the apple store. how are you going to make the harman store experience as interesting, as glitery as something like apple stores? >> intent obviously to do as well as apple and i think we have the technology and product and a lot of fashion behind. this is our first flagship experience store and we hope to share with you some of the experiences in a few months. >> do the music for lincoln center as well, not just the rockettes. how did you convince the rockettes and radio city to switch over to your equipment? >> i think they have been using a good ol' long time, yesterday,
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this comes from 65 years as professional audio heritage. liz: well, we see a lot of old, arenas that have been bought. say for example, on nassau county, the nassau coliseum. the old, fabulous forum will now be reopened january 15th. is that a possible revenue stream for you to be outfitting a reasons has? >> absolutely. where sound matters, harman is definitely one of the top contenders. yankee field, dallas cowboy stadiums. that is what we do. all disney theme parks have harman. we're definitely proud of that we'll work on all the arenas. good thing u.s. economy is rebounding, venues, a lost installations are due for outfitting and technology is moving from analog to digital. that is where harman is playing a big role. liz: let's go back to autos, that's where we usually see audio equipment from harman in cars. go back to "cash for clunkers."
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some criticize that program. some believe it saved the auto industry. what do you think about putting audio equipment in cars. >> that was right thing at the time. we're seeing a lot of pent-up demand coming up. most importantly to the connected environment. people can not be connected in the car without being safe unless you have a good quality audio experience inside the car. we're a software company. we put in 18 to 20 million lines of code in bmw and mercedes and porsches. and with that goes audio tuning equalization, noints cancellation. the whole package is giving them a save, sound experience still connected to the clawed experience. liz: dinesh, great to see you. we're blasting eagles and foreigner in our cars. store opening on madison avenue. harman's dinesh paliwal. >> thank you, liz. liz: solarcity, david, take it. david: solarcity, 400% markup
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the past year. now they are teaming up with bmw. solarcity ceo, lyndon rive joins news a fox business exclusive to give us details on how the green energy leader will power up bmw's new electric cars. coming right up. you don't want to miss it. thero way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪
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>> i'm jo ling kent with some breaking news on berkshire hathaway. according to their quarterly 13-s, sc e-filing, they're taking 41 million share stake in exxonmobil. at the same time they're cutting their stake in conocophillips by 44%, to 13.53 million shares. meanwhile cutting their stake in glaxosmithkline by 76.6% so about 345,000. berkshire hathaway also increasing their share stake in davita health care partners to 31.45 million shares from about
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15 million shares. liz, dave. david: you know, liz. i misspoke before, solarcity is up 400%. it is up 500% since the first of the year. this stock is just on a role. solarcity today announceing a new partnership. the company is joining forces with bmw to create an exclusive solar service package for bmw-i drivers. that will make it cheaper for bmw drivers to buy the energy through solarcity than the local utility. how do they do it? liz: joining us for fox business exclusive interview, lyndon rive, solarcity ceo and founder. we were you in 2008 when you were small and now you've gone public. you're making a pretty big deal with bmw i. lyndon, tell us about how it will work. >> we're very excited about this partnership. when someone buys an electric car you now move your transportation cost on to the
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grid. and, with the solar systems you can address that transportation cost and provide the homeowner as we as the car with a lower source of energy, lower cost of energy. also happens to be clean. liz: 10% discount you're give together home, to the homebuyer i guess or to the car buyer for their home solar offer, is that how it is going to work? >> yes. so any bmw customer buys an electric car, when they buy the electric car around they then decide to address their transportation costs with solar, solarcity will come in, we install the solar system for free. there is no installation. no maintenance. and we insure it. we take care of everything. we sell them electricity at lower rate than they can buy from the utility. over and above that, we give bmw owners a 10% discount. david: lyndon, i know that solarcity and tesla are two different companies but they have a lot of overlaps. aren't you, in helping bmw with
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this, and i'm sure they wouldn't have gone into the partnership if it didn't benefit them, aren't you helping a competitor to tesla? you. >> know, what is really important is the way we deliver, change the way we deliver energy and change the way we drive our cars. so it is more important to see more auto companies come out with electric vehicles. really need to change the way we, consume, consume energy. so i'm actually excited to see bmw come out, i'm excited to see other car companies come out and we'll try to help everybody consume, cheaper, clean energy. liz: reason we make connection for viewers who don't know, chairman of solarcity is elon musk, no concerns of what about dealing with tesla? he said he can't wait to outfit his fremont plant with solarcity products but he can't get the loan yet which we thought was funny. >> that's true. liz: then becomes the question, what about the actual cop and how do you make money?
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i finally saw solarcity truck on the g.w. bridge. it was working going towards a job. this is great. to see a company come full circle, talking about the actual moment when you're profitable, how will you get there. >> so absolutely. so, when you look at our financials, it is a little confusing as, we have to recognize the revenue over 20 years. although we get the cash on day one. liz: right. >> we have to recognize the revenue over 20 years. so from a gaap p&l perspective, won't show a profit for a very long time. but from a cash flow perspective we'll be cash flow positive, forecasting cash flow positive for this quarter. we were cash flow positive for last year, q4. cash flow positive again in q2. this quarter and we plan to stay cash flow positive onwards. and the business model works as follows. we buy all the equipment. we install all the equipment and then the customer pays nothing and we sell them the electricity at a lower rate than they can buy it from the utility.
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so from a homeowner's perspective you get cheaper, cleaner energy and you don't have to worry about it. we are now supplementing their existing energy bill with solarcity. david: now, lyndon, the naysayers of solarcity have been wrong time and again. , in terms of the stock. the investors. but there is, there is the complaint about the solarcity model, similar to what you have against tesla. of the without the subsidies. without all the federal and local and the state subsidies, tax subsidies and credits and so forth, you guys would be, would not be as good investment as you are. could you survive without all those extras? >> you know, this is really key. all energy, has been highly subsidizing the stock. solar energy, solar specifically in the u.s., the state rebates have declined at aggressive rate. so if you look at states like california or arizona they used to be $3 a watt rebate.
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now it is gone. they are, most of the states they are no more state rebates. liz: well, that -- >> solar is still seeing massive adoption. liz: which makes your story all the more compelling as we follow it. lyndon, good to see you. thanks for joining us live from california. lyndon rive, ceo of solarcity, a stock, as david said up more than 500%. david: it is huge, huge. bought into the stock, made a nice amount of money. a lost insiders buy the stock. if you watch that kind of thing. liz: that is a good sign. rise of the drones not just in wars overseas but for civilian uses. that is giveing a new lease on life for some universities. the ♪ [ woman ] i'd be a writer. [ man i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be,
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is. david: so you want to learn how to build, engineer and actually pilot a drone? liz: well a growing number of universities offering degrees in drone technology, garrett tenney reports. >> when people think of drones, they typically think of this. the future of drones though could look a lot more like this. >> it is fun. it is really easy to work with. >> it may just look like a few students playing with toys, but in the next 10 years analysts expect unmanned aerial vehicles to explode into a
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multibillion-dollar industry. students like these at the university of north dakota will be a big part of that. >> that is what is most exciting for us with r&d, we can be at the beginning of a like a big change in aviation and airspace and all the technology we utilize it for. >> plug them into the power distribution board. >> in the unmanned aerial systems program at und, students earn drone degree by designing, building and flying their own uavs. >> people don't think i go to school. my roommates think i toy around. i go fly for fun. >> that training could pay off in growing number of industries finding ways to use uav technology, farming, energy exploration, search-and-rescue missions an even hollywood, with many graduates earning six figures right out of school and with 100% job employment, und's program has grown every year since it began in 2009. >> not a day goes by that we don't get an e-mail, tell me about the program at the university of north dakota.
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>> dozens of other colleges and universities all across the country are also adding courses in drone technology. dave and liz? david: garrett tenney, thank you very much. >> a hollywood bar is whipping up one very expensive drink with premium liquor, eddiedable gold and belgium chocolate? the story when we go "off the desk."
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just by talking to a helmet. it grabbed the patient's record before we even picked himp. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and adiums. but, of course, 's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.
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but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon. david: time to go "off the
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desk." the powder room is taking extravagance to new heights with a 500-dollar booze milk shakin' concluding belgian chocolate and edible gold. liz: mine was 2.50. it was pretty good. david: no gold in it. >> everyone is still pretty upset about this obamacare website. it has got all these glitches and nobody is signing up. they are so desperate to turn this thing around that the department of health and human services e-mailed 275,000 americans encouraging them to give the obamacare website another try. then they said but one at a time. so we don't want -- melissa: obviously obamacare at the top of the agenda again today. it looks like we all may be able to keep existing health plans after all but what is the cost of that now? we start off by crunching the numbers for you because even when they say it's not, it is always about money.

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