tv After the Bell FOX Business November 20, 2013 4:00pm-5:01pm EST
future after all. [closing bell ringing] jcpenney was up about 7%. wells are ringing on wall street. jcpenney is happy of other people are but we say it has been worse than it was. dow is trading not at the session lows but it may settle there. dow jones is down about 65 points. again all of the really negative action happened after we got the minutes from the october meeting of the fed and the market didn't like what they saw there, liz. liz: let's get to the front page headlines which of course include all of that. despite the government shutdown people continue to shop. well before the fed minutes came out we got the retail sales numbers of for october. they showed a gain of .4 of a percent. that came higher than the .1 of a percent gain most economists were expecting. david: it is good if you shop. priceline.com got a boost after the company was added to the goldman sachs conviction buy
list. william shatner is a very happy man, looking at $1500 a share price target that they are poised to benefit from a european recovery. >> a deal for eagleford assets. that is the largest domestic oil and gas transaction and will boost devon's exposure to the shale oil boom. david: j.m. smucker, don't you love the name, tumbled 6% after the company cut full year outlook and hurt by a 4% drop in coffee sales. the company forecast as 2% decline in 2013 sales. previously the company predicted a 1% decline in sales. liz: i love folgers, folger's in your cup. david: like it. liz: national association realtors says largely due to an inventory shortage. we have to look deeper than just the headline number here. not enough homes that people want to buy. previously-owned homes fell 3.5%
to 12.5 million units. economists were expecting a drop of 2.6% to 13.5 million units. david: deere reported better than expected out look this morning with the shares up more than 4% after the company saw a 17% jump in profit. the company earned $2.11 a share in the fourth quarter. analysts were expecting a $1.89 a share. we have busy afternoon including earnings coming up. "after the bell" starts right now. liz: green mountain coffee roasters numbers are out. dennis kneale has them. dennis? >> yes, wow, green mountain blowing the doors off wall street expectation,9 cents a share, vastly -- 89 cents a share, vastly higher than 75 cents a share wall street expected. revenue line coming in over a billion dollars. that is really nice 5% revenue growth instead of the 1% revenue growth wall street had been
looking for. the company announces extra billion dollar share repurchase program, another good sign. overall the stock now looks to be up 5% or so in after-markets. this is a really big report and weird thing that their earnings could go so nicely. that is better than maybe 20% earnings per share growth on just 5% revenue growth. liz: they're declaring a dividend and they're declaring more share buyback here. these are big pieces of news all wrapped into this report. >> yeah. and the interesting thing was you thought there might be problems. starbucks might go into business against them with those coffee weird little things but starbucks licensed their technology. whole foods has not. so far even though their patent protection came off the little kerig cup things, even though that came off, they're not facing big competition of other knockoffs of the form which is highest profit source. man, that coffee costs 40 buck as pound by the time you get in there and drink it. david: k-cups, they are big sellers. liz: competition is more with
the actual machine. we have the ceo of dunkin' brands saying they're not getting into the hardware business. they will make the k-cups. it is like razor blades. todd horowitz, chief strategist telling us why he says the fed is the biggest ponzi scheme going on right now. okay. david kudlow, mainstay capital management is here to say that the bull market is overdue for a consolidation phase. he will tell us how to play a pullback. mark sebastian in the pits of the cme. mark, to you first, we could go micro with green mountain or macro with the fact that the fed spooked the markets. you choose. >> if you want to know why we sold off, take a look at the bond market. the bond market did not like what the fed had to say. one, we may taper whenever we feel like it. and two, if tapering doesn't work we're not going to do qe infiniti. that spooked out the market. bond went lower. you saw the stock market, gold,
everything fall. they sold everything they could today. it was go to cash and go home type of day. and you know, to be honest i'm impressed that we manage to only sell off about five handles. i think that should tell you how strong this market has been. how many managers are kind of chasing returns and looking at these opportunities and of small selloffs to step in and buy and that is kind of what we saw at the end of the day today. david: david, your forecast says you think we'll be okay rest of the year but a big drop in january. how much and why? >> well the last couple of days notwithstanding we think we're in a market melt-up through year-end. that is lot of hedge fund managers, retail investors coming into the market chasing performance to the year-end but as we get into the first quarter, we're dealing with the debt ceiling debate with the dysfunctional congress. we will get tapering and we think there is enough there that we'll finally see the
consolidation of more sizable magnitude than these one or 2% pullbacks. we haven't had as much as a 10% pullback in the market in two years and we think we get that in the first quarter. liz: you get that possibly in the first quarter. that brings in todd horowitz and you have very strong opinions on the federal reserve but, let's really look at this in sort of a focused way, todd. the fed said in its minutes, generally expected data would be solid enough to justify tapering in the coming months. does that speak the markets enough to give what mr. kudla talked about as a consolidation point, and then do you go in and buy at that point because it is first opportunity we will have to buy lower? >> first off, hi, dave, hi liz. we're looking at market tapering itself. the bond market as mark said sold off. 10-year is up over 100% over last year going up to 2.8 here. what the fed did came out with
the high row give fix pins which said nothing. trying to pa manipulate the market. every week we get a different fed governor coming out, some not even voting members we'll taper, we'll not going to taper, maybe we'll taper and that is a mess. david: todd, let me push back a little. i think the fed said a lot. what they said they don't know exactly what they are going to do. it screamed out confusion. there was no consensus what's going to happen even if the economy improves a little, it was very confusing. that doesn't speak well of an organization when it lacks that consensus, does isn't. >> that is exactly right. what we're looking at, if they come out, they don't know what they're going to do. they're telling us the economy is probably in a little bit more trouble than we're making it out to be. it was great to see green mountain coffee roasters beat on top and bottom line. that is my thing on the show here is top and bottom but the overall picture still does not look great. if the fed can't come in and say you know we have a clear
picture, we can see what is going on, we'll taper no matter what and take the consequences what happens then i think it makes sense. right now they're coming out, they can't make a decision. i don't think they know what to do. the good news of the low interest rate environment will eventually turn into bad news because what they're doing, they're confused and we saw a selloff because of it. liz: they don't sound confused when they say they're continuing to wait. mark sebastian i was at cme financial conference for global leadership, every single panel practically was talking about that moment when they taper. some are excited about it, say for example, td td ameritrade. they have a ton of accounts in cash love to see higher interest rates so they do well. others are more concerned because they feel the plumbing of the market is overwhelmed by the trades at this point. what is the moment for the trade when we realize the fed will taper? >> short the 10-year. liz: short the 10-year. okay. >> short the 10-year. watch, or short it.
lt. liz: okay. >> buy puts in tlt i don't think the equity market is near the kind of risk as the bond market is. the traditional 60-40% model, 60ers equity, 40% bonds. people looked at bond portfolio. that's safe, that is my nest egg. that is the part that will get obliterated when this all starts happening. it will start happening before the fed announces. watch the bond market. the bond market tells us everything. when the bond market starts to move in decent or january, that will be precursor. we'll see a slow rise up to about 3% on the 10-year yield. then from there, you know, what will determine whether the equities get a big selloff is how the 10-year moves from 3 to 4%. david: hold on a second. get consensus on this if there is one. we didn't get a consensus from the fed. maybe we get one from our own panel. david, what do you think about the 10-year? went up, rose quickly in the spring, through part of the
summer and came and settled down a little below. the 2.75 figure. now it looks like it is creeping up again, are they going to spike again, the 10-year rates? >> it will spike if tapering comes on more aggressively than the market expect the. we think the first move, sometime in the first quarter we'll see asset purchases come down from 85 billion to 75 or 70 billion per month. david: let me ask about rates. are we going to see rates above 3% on the 10-year? >> absolutely. we'll see rates above 3%. we think early next year. liz: 3% early next year. todd you heard mark sebastian say short the 10-year. what would you say the best trade as suddenly become as realistic possibility that the fed is ready to taper? >> short the s&pes once you see that happen. we'll get initial big drop-off from that. we might get the 10 to 15%. liz: but it's a trade, it's a trade, isn't it? at some point somebody will
realize the economy is healthier and that is why the trade is occurring. >> initial shock. market sells off and we decide whether that is time to buy. 10 to 15% correction is in the cards and we look for a spot to buy. david: as negative as todd can be in what is to come, he is in favor of canadian solar. where did that come from, todd? canadian solar? >> when you look at solar stocks they seem to come back in favor. the biggest problem with solar they have never been able to find a way to make it cost effective. i think they're closer to becoming cost effective. canadian solar around 30 bucks is good buy. first solar, from 19 back to the mid 60s. david: they heard your bet, folks buying into canadian solar, up 3% on a down day. liz: todd horowitz,. >> david: kudla, mark sebastian. david: thanks, guys. liz: coming up, dissect.
in essence what he was reporting a december taper was still on the table. >> just a moment, we're going to hear from mr. jon hilsenrath if he read anything in today's notes? we have the former president of the federal reserve bank of st. louis, william poole, his successor saving very interesting things about tapering. we'll get both guy's reaction to the fed tapering coming up. liz: groupon making a big change in order to get deals into your hands literally. we'll tell you exactly how. publicly-traded stock. pretty volatile. stay tuned. ♪ [ male announcer ] what if a small company
became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. she loves a lot of it's what you love about her.
but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms obph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
and our networks are getting crowded. t if congress, the fcc, and the administration free up... more licensed wireless spectrum, we can empower more... people to novate, create new technoloes and jobs... and strengthen the economy. america is the world's leader in wireless. free up linsed spectrum today, so wireless... let's keep it that way. can do more foamerica tomorrow. david: guess what? green mountain which was popping after-hours, has gone in the other direction. the stock is now falling after-hours. let's go back to lauren simonetti on the floor of the new york stock exchange. reversal of fortunes very quickly, lauren. >> reversal of shares after-hours. they were popping 7%, david, at one point. now they're down 2 1/2%. looking through the headlines and through the release to see why and i'm seeing nice news. sales indicate k pods up.
so got to be something in this report and we will continue to go through it. tough remember, while these shares are up 50% year-to-date, the past three months they have been under pressure. a lot of high-profile hedge fund twice, like david einhorn shorting stock. watch comments from that side of the spectrum here too. coffee bean prices. brazil has a record crop right now. that is keeping commodities down. that should help them. i don't know if there was a change there. this is really interesting, to see the share price be so volatile in the after-hours. david: they are indeed. this happens quite a bit where you see people's positions kick in as a result of what happens. shares are trading down about 1 1/2%. thank you very much. lauren simonetti. liz: thank you very much. did you see oil? oil got rocked a little bit today, following release of fed -- don't even get started on gold. gold plummeted dramatically. crude oil gave up most of gains it saw in the upcoming tapering.
david: go back to the floor of the cme with fox business contributor phil flynn and our own sandra smith. you know, we want to talk about oil but sandy, i got to talk about gold first. does it have a bottom at this point? it doesn't look like it? >> well the markets definitely setting up for a possible taper by the end of the year. gold definitely a big selloff, down 30 bucks on the session, but silver, with the worst, one of the worst performer on a percentage basis, so david, what is happening is, we're getting strengthening of the u.s. dollar against global currencies. everybody is selling out of any asset tied to the u.s. dollar like gold and silver. not to mention anybody who wants to buy stocks end of the year, raising money spell selling out of precious metals. nobody is calling for a bottom yet in gold but silver, david, they're saying has a lot of room to go to the downside. a lot of technical analysts saying that today. liz: phil, get to crude oil right now. what about its testing of downside numbers, the floor so
to speak. down about 11 cents in the after-market session. but as you see, look, as we flip over to, that is the december contract. i believe we should have a january chart, that could be wrong. but my january chart, is that correct? it should be higher slightly. >> that is correct. january is the one today. december's gone off the board and january taken over the mantle and it is down 16. own considering the fact that petroleum demand is at highest level since the economic crisis began. pretty incredible stuff. if you look, dig down into the inventory reports, go beyond the headline numbers and look at cushing, oklahoma, despite demand demand for oil is going through the roof, supply continues to rise. that is 5, to 6 million-barrel build, that is bearish. heating oil is up 4.31. rbob up 2.34. they're not worried about tapering. they're looking strong demand. that's what we're seeing. david: you have to ask the
question, sandy, is it demand, is it supply or is it the fed? which is most influential over the price of oil right now? >> well i'm a big believer on the commodity markets move on sheer fundamentals and right now the fundamentals in the oil and the gasoline, distillate market, is that demand is up because prices have come down. when you get the prices that come down, you get economies around the globe that use more of those energies. that is simply what is at work there. but you have to look at the fact that natural gas moving on its own, natural gas was the best performer at the cme today. that is separate story, david. that is a weather-driven story. you guys on the east coast are supposed to get a lot of cold temperatures. big report from the government on inventories. spices skyrocketing several percent there. liz: phil, do you feel comfortable about talking about cocoa? >> i do! liz: high cocoa prices, how do
they do it, ton, pound? >> per pound. per ton actually. 24.40. this is a market that has been on fire. this is one of the strongest markets going right now because we have a supply deficit. liz: going into the holidays. >> going into the holidays, every time. we also have a turkey problem too. this could be bad. no turkey, no chocolate, it's bad. cocoa has been incredible. as a matter of fact i have numbers on cocoa right now, they're up again, 2.10. a highest number we're seeing. traders say we'll get to $30 a ton. this market is absolutely on fire. david: by the way green mountain went down into the 50s. it is down 2%, we're getting talk there is lot of options traders. that is influencing the decision to what happen because we saw the initial pop of the shares, up about 8%. now as you can see it is trading well below its close. liz: even though, guys, we get record of crops, certainly or at
least healthy crops. good to see you both, phil and sandra. thank you very much. david: thank you. federal reserve chairman ben bernanke said the fed will likely hold don't interest rates even after they stop the bond buying program or slow it down a little. what does that mean for investors? coming up with break it all down with our all-star panel, "wall street journal" jon hilsenrath and william poole, former president of the st. louis fed.
expanding to coupons different from the traditional voucher. they will have free bis, promotional codes, giveaways, samples that don't require purchase. up to saturday, customers can trade in iphone for up to to -- marisa mayer says the site has 400 million monthly users on the mobile platform. yahoo! visited by 82% of mobile users in the u.s. >> not everyone is happy about black friday deals beginning earlier this year. maine, rhode island, massachusetts will prohibit all businesses from hope opening on thanksgiving. made out of respect for the puritan call history. that is what it says. liz: are you kidding me? david: buzz buzz. that is today's "speed read" view will impede capitalism like that. david: they take thanksgiving pretty seriously up in new england. >> blue laws.
david: blue laws are gone. liz: got them in paramus, new jersey. drives me nuts. earlier today the federal reserve minutes of the federal open market committee meeting. david: peter barns joins us from the white house. folks on wall street didn't like the report. how about folks inside the beltway? >> david, everybody trying to parse all of this. one thing clear from the minutes of the october meeting when the fed decided not to taper its $85 billion a month in pond purchases, quantitative easing easing bond purchases, that the fed, fomc members continue to watch the data. this is all data dependent for evidence of a stronger economy and stronger job creation. here is a key line from the minutes. they say, quote, many members stress the data dependent nature of current asset purchase program and some pointed out that if economic conditions warranted, the committee could decide to slow the pace of purchases at one of its next few
meetings. but there was a lot of discussion according to the minutes, about, how to communicate all of this and whether or not they should adopt some new rules or, provide more guidance to the markets, maybe tweak some of their other programs to try to send a message that tapering doesn't necessarily mean tightening. indeed, one of the fomc bank, one of the fed bank presidents, a voting member of fomc, jim bullard of st. louis was out today saying tapering is still on the table for the december meeting. the fed got a few additional economic indicators to look at as it ponders all of this, going forward. and there was kind of a mixed bag. october retail sales according to commerce department were up .4 of a percent, a little higher than expected but october existing home sales fell about 3% according to the national association of realtors, while september business inventories rose .6 of a percent. david and liz. david: kind of clintonesque,
depends on what the definition of tightening is. getting into -- >> i will let hilsenrath answer that question. david: okay we'll put it to him. he is coming up. liz: yes indeed as we move peter out, market didn't like what it saw from the federal reserve. seems to be turning on the printing presses but is the worst thing about the federal reserve its indecisiveness or at least the perception it is? all-star fed panel including jon hilsenrath from "the wall street journal" and william poole from the st. louis fed. david: mcafee released its third quarter report. the chief technology officer exclusively to find out the biggest trend in cybercrime. this could be fun but scary. hold on. ♪ ya know, with new fedex one rate you can fill that box and pay one flat rate.
i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. wow...look at you. i've always tried to give it my best shot. these days i'm living with a higher risk of stroke due to afib, a type of irregular heartbeat, not caused by a heart valve problem. at first, i took warfarin, but i wondered, "could i up my game?" my doctor told me about eliquis. and three important reasons to take eliquis instead. one, in a clinical trial, eliquis was proven to reduce the risk of stroke better than warfarin. two, eliquis had less major bleeding than warfarin. and three... unlike warfarin, there's no routine blood testing. [ male announcer ] don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis ifyou have
an artificial heart valve abnormal bleing. while taking eliquis, yomay bruise more easily and it m take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i've got three important reasons to up my game with eliquis. [ male announcer ] ask your doctor today if eliquis is right for you. hmm. ♪ mm-hmm. [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now -- but hurry, the offer ends soon. [ santa ] ho, ho, ho! [ male announcer ] lease the 2014 ml350 for $599 a month at your local mercedes-benz dealer.
♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools iroduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing at's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. david: fair to say minutes of the federal reserve's october meeting weren't viewed well by the market today. not hard to see why. to some these notes show an indecisive organization, unable to build a very clear consensus about what to do next. so does the most powerful organization in our economy really know what its doing? joining us is jon hilsenrath, "wall street journal" chief economics correspondent, and william poole, former federal reserve bank of st. louis
president. of course it knows what it is doing. i was being a little provocative, bill poole, but not entirely so. did you get a clear message from these notes because i didn't? >> no, absolutely not. the fed is in fact as the chairman said over and over again the fed is very transparent and what is transit has no organized strategic plan as how to go for war. david: well your successor at st. louis, current st. louis fed president, james bullard was talking today about tapering as though it could happen as soon as the next meeting. there seems to be, sort of a momentum in that direction but that doesn't represent the majority, does it? >> who knows. who knows. i think jim it correct that it could be at the next meeting. whatever the fomc decides the next meeting but the fomc is created a problem for itself. it has said, over and over again, that it will not raise the policy rate, the federal
fund rate, until after it has stopped the quantitative easing. so, as they consider what to do with quantitative easing, it is inevitably a signal that they are putting policy rate on the table. maybe not right away, but it's on the table. david: right. but, jon hilsenrath, to the indecisiveness question, i didn't see a consensus in that report. did you? >> here's what i think i see. and this relates to what mr. poole is talking about. on the one hand the fed very much has its eye on a taking, on pulling back on this bond-buying program. could be at the december meeting. might be after, but very clear they said in the coming months they wanted, they're looking towards ending the bond-buying program. at the same time they're trying to separate the market's connection to that, with when they're going to start raising short move term interest rates. they spent a lot of time at the last meeting talking about huy
they were going to do that. how could they really kind of hammer home this low-rate message that they have got. david: right. >> this idea that rates will stay low for a long time even after the bond-buying program ends. they are trying to he separate this connection that exists in the market. i think what you're seeing is basically we're getting a hand-held tour through the sausage factory here. david: yes. >> we're seeing them kind of, coming up with these ideas and strategizing over these ideas. david: right. >> in a lot more detail than we used to see in the past and it's pretty messy and i think that's, one of the -- david: it is different in style as well. ben bernanke clearly is not the kind of tough authoritarian we had from either paul volcker or mr. greenspan. but, bill, the real question i think the kind of elephant in the room, is qe working? is the policy of spending trillions of dollars to buy up
bond from the market, is it working to improve the economy? isn't that the real question at heart of all this? >> that's correct. but i view qe entirely different way. jump in rates last may and june show the way the fedorged qe is working is simply incorrect. qe is working as announcement about the funds rate policy. it's like ernest money or like what economists call a commitment mechanism. as long as qe is in place, the fed won't be raising rates. so they have create ad problem for themselves because they realized that central bank can't continue forever buying 85 billion. a month. it is just not working as advertised. doing something different that has create ad trap for themselves. david: and jon, bill has been very eloquent in written arguments against qe, as being a
panacea, cure-all for the economy. the clear point he makes which is indisputable, the banks are stuffed with cash right now. so what good does it do for the economy to keep printing more of it? because they're not using that cash for entrepreneurial activity? >> well, and in the fed's view the cash they're putting into the system is part of what they're doing. the other part, the impact they're having on asset prices and on other kind of interest rates like mortgage rates. you know, to get to your question, is the qe working? i mean i think what's going on is that, it isn't workingas welt would but the fed has been saying for a while it is not a panacea but i don't think it is doing the damage a lot of us feared it might do. we got inflation numbers today. david: i know. >> amazingly low, 1%. david: they're negative. >> in the cpi index. i described this in the past qe policy as more like a water
pistol than a cannon. it is just not having as big of an impact on either side of the equation people thought it would. david: bill poole, the bottom line is, as i mentioned before, there is cash there if entrepreneurs want to use it, but they're not using because i think there are too many barriers to starting a new business. too many barriers to growth. do you agree? >> let me say two things quickly. qe on the mortgage market has not depressed spread of mortgage rates. look at data. the spread is the same as historically. 40 billion a month is not compressing the spread. that is point number one there. yes, when the economy is being held back, by a variety of real constraints, not monetary constraints. when ever an economy operates this slow a pace for this long a period of time, the explanation
is not monetary. look at china before and after 1979. look at the east bloc country, soviet union, compared to western union, over and over you see real constraints are what keep an economy from growing over a span of this period of time. david: you can't grow economies simply printing more cash, i think both of you would agree with that. >> absolutely. david: ben bernanke might agree if pressured. jon, wonderful to see you. bill, nice to see you. sorry we've run out of time. liz? liz: here is what is growing. the l.a. auto show kicked off with pretty fabulous new cars including the new volkswagen. coming up jeff flak, hands, elbows, knee deep with the president of volkswagen america on this potentially game-changing vehicle. cyber security attacks. don't tune out. it will happen to you at some point. they are on the rise. what you should look out for.
let me tell you, it is so expensive to the attacks. we're speaking with mike fey, mcafee worldwide technology officer. on their cyber report. it is brand new. the numbers came out. they are jumping. what you can do to fight back for you and your company. ♪ tdd# 1-800-345-2550 searching for trade ideas that spark youruriosity tdd# 1-800-345-2550 can take you in many directions. tdd# 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 yolook for what's next. tdd# 1-800-345-2550 atchwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your trading iq with t help of d# 1-800-345-2550 our live online workshops tdd# 1-800-345-2550 like identifying market trends. tdd# 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-7118 or go to schwab.com/trading to learn how. tdd#-800-345-2550 sharpen your instincts with market insight from schwab tdd# 1-800-345-2550 experts like liz ann sonders and randy frederick.
tdd# 1-800-345-2550 get support and ta through your ideas with our tdd#-800-345-2550 trading spialists. tdd# 1-8-345-2550 all with no trade minimum. and only $8.95 a trade. tdd# 1-800-345-2550 open an account anrn 300 commission-free online trades. call 1-888-628-7118 to learn more. so you can take charge of your tradg.
liz: cyber attacks are on the rise and they are hitting pretty high-profile and potentially catastrophic targets like the chicago mercantile exchange, the world's largest futures exchange. they got hit back in july. they just announced it last week. yesterday i sat down with cme group executive chairman and pottery duffy to talk about the impact of that attack back in july. >> it wasn't on our regular cme globex system. this is one-off energy
contracts. some customer information was exposed. so we dealt quickly with the clients to make sure passwords and things like that were changed. there were no positions that were disrupted or monies lost, anything of that nature. liz: so clearly a smaller, less horrific incident but,, what does it say if the world's largest futures exchange gets hit and how bad something like that could get? how do we prevent similar attacks? we have mike fey, mcafee worldwide chief technology officer, helping us break down the biggest cyber security threats to minimize risks. you came out with a brand new report. give us a headline. what is the worst, most frightening aspect of what you guys have discovered? >> you know, most of the report we saw continued growth in areas we would expect. but the rapid growth in mallware, targeted at mobile devices was surprising. quarter over quarter it grew
30%, which is 700,000 pieces of uniquely-built piece of malware targeted at a mobile platform, specifically the android platform. in the report, that is one of the areas that was more aggressive than we would have expected. liz: so hitting, let's cut this down to plain english. hitting android tablets an phones. now these guys, these bad actors in the world, are getting smart and they're figuring out how to attack the mobile space. did this jump in attacks surprise you? >> the size of the jump surprises. it has been progressively growing. given amount of awareness around risks to that plat for, not being that public, that large of a jump was surprising. and there were two unique families showed up. ability to turn off security features in the platform was one family that was alarming. the other, giving ability to download other applications as a
result was unnerving related to the general public. liz: was android targeted versus apple operating system, for example, blackberry, because it is so much it out there because it is very successful product or is google doing something wrong in the way it create this is stuff? >> definitely market share has a lot to do with it. attackers go where the opportunity is. you see unique things in the android platform. you don't see in the apple platform. amount of time people live on releases. they get updated new software, android lasts so much longer and you have so many variants per carrier it create as much richer tapestry to attack on. liz: patches and changes come through on operating system which apple changes more often can be blocked off. what are they targeting? what do they want? do they want people's money or password? do they just want to cause mayhem, mike? >> you see it all. three things people go after.
they're going after personal information so they can leverage that for their own gain. or they're going after critical information. you know, as you mentioned, chicago mercantile exchange, if you can get into the flow of information, specifically economic information or intellectual property, you can monetize that in very meaningful ways. just imagine if you could understand where an activist investor was going to invest next? or who would buy what company next, you could really intervene on that and separate the attack from the monetizaton which reduces risk and increases profit for the attacker. >> tell you something. we had kevin mandio, of mandy i can't. they're in sigher security. 75% of companies have electronic doors knocked on or tested by evil people out there trying to cause mayhem. but what from your expertise and perspective can people do, can companies do? what are the things they should be doing right now to make sure
they have a teflon sort of shield against these things? >> sure. the most important thing they can do is really focus on what is critical to their business. don't worry about who the attackers are. don't worry about the attribution. focus what is critical to your business and overlay security controls, your defenses to that. inch sure you're protecting what matters to your business. much like any kind of defensive strategy, you can't protect everything all the time. so you need to make sure that you spend your time and energy on the things that matter to you, which is often your customers and your employees. liz: hey, recently in the news, hacker was given a 10-year prison sentence for hacking. that must have given you hope at least that at least people are being punished for these crimes? >> yeah. over the last year you've seen law enforcement step up and close a lot of cases in this area. so we do have hope. we saw big reductions in spam
along the way. they have creeped back up now. but law enforcement is doing admirable job partnering with organizations like ourselves to try to track down and reduce the impact these bad guys can have. but unfortunately we're up against a new foe. the virtual currencies make it so much easier to actually conduct business. that is a challenge, with the change the game in favor of the attacker immensecy. liz: charlie monger called bitcoin rat poison. i don't think he meant it because of that. you guys are seeing real problems with virtual or newer currencies. mike, thank you very much for sharing this unbelievable report. >> thank you. >> 30% jump in mobile malware attacks. first on fox twist, thank you so much. mcafee is taking company. david: we remember john mcafee. founder of that. we hope to see him on fbn soon. latest cars rolling out at the l.a. auto show. we're live in los angeles with volkswagen america ceo, and
president jonathan browning. he will show us volkswagen's push into electric cars. yes they're going there. ♪ you really love, what would you do?" ♪ [ 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, paying ourselves to do what we love? ♪ customer erin swensons ordebut they didn't fit.line customer's not happy, i'm not happy. sales go down, i'm not happy. merch comes back, i'm not happy. use ups. they make returns easy. unhappy customer becomes happy customer. then, repeat customer. easy returns, i'm happy. repeat customers, i'm happy. sales go up, i'm happy. i ordered another pair. i'm happy. (both) i'm happy. i'm happy. happy. happy. happy. happy. happy happy. i love logistics.
liz: the l.a. auto show showcasing the newest and hottest cars in the industry, including the e-golf, that's a new one, volkswagen first fully-electric car for the utz market. david: they're going electric. jeff flock joining us live from the l.a. auto show with volkswagen america ceo and president. take it away. >> david, i know you love electric cars. that's why we saved this one for you. john browning here. this is the first-ever, just took wraps off of it, first one in the u.s. market. what took you so long? >> we like to get things right when we bring them to market. this one will start in the market about a year from now. we think it's a great package and delivers benefits of electric vehicle and driving package associated with volkswagen. >> people are excited about electric vehicles. we put up on the screen some stats on this.
are we really ready for this out there? are electrics ahead of their time? >> well, you know, electrics are reality but they're certainly a minority in the marketplace. and, for example, in our global plans by 2018 we still only expect 3% of our total sales to be electric vehicles. >> interesting. >> it is still a minority of the total vehicle population. >> unlike some much your competitors, nissan says it will be a huge piece. >> yep. we believe gasoline, diesel, plug-ins as well as pure electrics will be part of the landscape as well as some companies, cng. >> talk about sales. stroll through the vw. you have a huge display here as you always do. take a look at sales. >> yep. >> you know, last few months haven't been so hot, look at the good first.u've had, a look, as we look at full-year, not been a bad year for vw. >> we always laid out a 10-year growth plan for the u.s. that meant that we'll have some
periods of fast growth, some periods of consolidation and new growth. over the last three years, we doubled the size of our business. we set a new level of presence in the u.s. marketplace. >> so when you, so when you compare october this year to october last year, wasn't so hot. that was a higher level? >> yeah. i mean the year on year position in terms of absolute sales down 4%. key thing we're going to sell over 400,000 vehicles this year. sold over 400,000 last year. that is the first time in 40 years we're at that level. >> big player. jonathan browning. thank you, sir. always appreciate it. david: all righty. we'll believe it when we see it. i'm not against electric cars though. liz: forward thinking, i love it. david: except for niche markets. i don't see the sales. liz: thanks, jeff flock. david: the world's tallest and fastest water slide is taking shape. it is set to shatter height and speed records. wait until you hear the details of this coming next. liz: whoa. ♪
this is the quicksilver cash back card from capil one. 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?
they always have. they always will. that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. david: time to go "off the desk." it is a megablaster. being called the world's tallest and fastest water slide in the whole world! this is in kansas city, kansas. the exact height has not been revealed. it will beat the current record held by 134-foot insano slide in
bra. liz: that scarce me. nomination of janet yellen next federal reserve chair. the committee will vote 10:00 a.m. eastern. david: you know the market will be influenced one way or the earth. "money" with melissa francis is next. melissa: shocking questions about numbers many have been suspicious of for years. a scathing report claims numbers that have direct impact on your money every day may have been manipulated an investigation is underway and we have the latest developments. even when they say it's not, it is always about money. melissa: new details right now on a stunning report in the "new york post." the paper reporting that data used to create that all-important jobs number we hear about every month was faked. now there is congressional investigation. doug ma kel way has new