May 17, 2012|
Fox Business' Adam Shapiro gives us The First Look into the Markets.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Good morning and welcome to the financial exchange it is an S&P date June sunny and plus and it's -- lol yeah I think SAS and 500 day now let me let's hope -- -- S&P 500 a day to let my -- it seems like. Groundhog Day doesn't every day we coming in we do the show. We leave and we believe the market pretty good shape the market's up but by the end of the day finishes in negative territory yet it is -- it. The Dow futures up right now and the sun is shining so this is a good start today Dave Barry Dow futures up seventeen NASDAQ up three. S&P up a little more than one in tenured US treasury is flat at one point 765. Gold is trading up 1830. Gotta love that in an oil. Is that it's 54 cents to 9334. Have you noticed though every day right we start off things are pretty good shape -- futures Europe like today yet the Dow futures up 22 points. He would dollars to donuts it's gonna finish a negative territory did you see in president's everyday. All hope the president doesn't speak today is that what it is and it's he's using -- -- -- sometimes it brings a market down these cameras and church at you don't could turn -- the FaceBook offering to more. That connect it really breed a lot of excitement towards stocks in general. That success and I think it's going to be pretty successfully and I heard a rumor that you might be buying time buys and I I spoke to share and -- and try to get some shares tomorrow and will went. -- and we forgot today's the big day gas card there that's right it's exciting when do we do that. What I mean I tell you it's it's between nine and eleven new -- the gas pump dean being eaten any text -- 68680 to -- gas local. And somebody's gonna win a fifty dollar gas card -- -- Our first guest is Adam Shapiro from the Fox Business Network Adam good morning and welcome to the financial exchange carried on. Don't do it. The -- FaceBook. Where a run that. I'd like you really got to try to get in on that. I just experiment purposes I wanna find out with the average annual. You know -- Canada can -- -- -- -- -- people experiment with drugs in college in the -- these you don't experiment with this up. It is it's like crack what are you doing man. It's better me than some of our listeners that's -- way I look at I -- to protect our our listening audience so I figured out okay I'll go out and and by a couple shares and see what happens and what I have to I'm very curious to see we actually have to pay for this thing because what's the rumor it's like 3536. Bucks a share is that your. The anywhere between 34 to thirty -- So yet that he these fictitious you'd have more luck and a probably better outcome if you played dodge ball in the middle of storage drive. And I didn't want that. Could it be a lot more fun to -- Yeah I mean come on if it is -- wonderful company no mistake about it but. The very fact that they're being public about days that they don't have a gonna make money going forward because of one the use of their product on mobile that devices. And they haven't figured out the formula to turn it around yet which -- buying is a bad that they will figure it out. It's pretty you know parts there's going to be a lot of stock would be this stuff coming to market six months you -- display. What's could be extinct has the terrorized it they're there rob when they come out you look at their price to sales numbers compared to say Google or some of the other. You know social media companies and Internet companies that did you're right about the pricing in there I think their twenty to one in Google's like two to one interprets to sets foot. That's why drugs in this scenario. Would make more -- -- you've -- to get a I'm not advocating drug use trust into a separate thing from -- it was. What's going on with this market they'll have you noticed like it's the last three weeks right. You get some decent economic -- -- like Wal-Mart he has reporting this morning Wal-Mart had good earnings. Invariably by 330 things have turned negative and Andy finish today down it's kind of like it was. Back in January fervor in March when the market is -- operate every day here at fifty elements. Italy I'd like -- dollars to donuts by the way and I love government to meet him but. Yeah here's the deal it imagine those long double but -- we have -- buses in New York. You deny it as an individual trader -- in the back of the -- people drive in the blast people get its seats up front with the air condition where it works it can hear each other talking. I've frequency traders that the big money movers at the front of the bus. And they have a much different strategy and gold and human -- so. They are going in and out seeing opportunity to make money can they can make money with a Rico opera now. And that's what -- don't. But but. People are very worried and very plain English about is you're about to split apart yeah. That -- that. You're seeing people pull money out. Anything people get very jittery. And I think you know I'm gonna protect our money today and an eagle by US treasuries. You know we haven't gone as low as what was the -- since September the yield on the tenure was one point 67. And you know we're darn close though that was -- -- We've gotten yelled back up a little bit today people are probably going to be Bible but the stock. But all it takes is one nasty comment from somebody greets. Or one very frightening comment from someone in the United Kingdom -- Serb Mervyn King. Our biggest trading partners tearing itself apart with no obvious solution and I didn't even do the British acts. Yet you got to Adam I I talk to an ideal Warren Mosul or he said mark on monetary theory act the heat he's a big ball on bond trader. And he suggested to me back in March raised ten year treasury in March got -- -- -- 240 to fifty for a few weeks in and he told me said -- That's not gonna last that's gonna come way down -- in back taxes that once every five he reminded me. That the Japanese ten year treasury went as low as ninety basis points I forgot about how low can I wonder and he would. How are gonna -- like like a few guys are very. Well you talk to all the mortgage guys ready tucked a mortgage broker yes trees and -- to -- any -- ticket go to new York and he said I did that for five years you know. That pathetically out theoretically it's sort of what -- -- nothing is impossible. But -- to go down low would be a signal of dire consequences. Economically. You know. How important will never come down certain in nineteen -- in 2007 that they Africa than just the people to tell you did nothing -- Right now are Evan that's when it happened run. -- good news and terms of housing -- this morning Greta tossed a foreclosure report. Indicating that foreclosures are at a five year low that that should be positive for the housing market when you look out I don't know how are you have to go out but I've I would think somewhere. Twelve to 36 months from now that's got to be goodness force. It's good news if you if you buy into the argument that we need household formations with the college yeah the college students who graduated moving out of the house. Setting up their own households people getting married sitting -- Oswalt. But we need to see that happen and his lawyer as long as unemployment. -- kind of stagnant going to be hard for people reform council and and so cup the inventory out there. Hey you guys have done extensive coverage. At fox on this JPMorgan story. It doubted their shareholders meeting in Tampa where I was down there yet. I -- ask if the you know forget about acting Jamie Dimon is -- -- -- survive this obviously and he'll be fine but. I talked a trader yesterday he was buying shares of JPMorgan he said to me you know what I'm gonna load up on JPMorgan anybody -- stupid enough to sell the stock. It basically he said. It is the stock based on that actual. Hit that they're taking on this earnings issue and this trading issue should have declined by 1% and in fact apart stock price went down by what ten or 11%. Yeah I think since last Thursday when they announced the and now it's up to three billion dollar loss yeah. He thinks that people that are selling are stupid. -- he very well may be correct the people who are selling could be reacting they're afraid they could be reacting to the potential for Washington. To really look at you know the Volcker Rule rules. And what they've really going to be easier could they possibly go back to slippery Glass-Steagall. Repeal form. And regulation. Don't expect that. It cured jittery about the world and you wanna take money off the table that could be what we're watching but JPMorgan Chase is the president. It states that it and native was not an overstatement what an investment banks. In the in the country. That your decision to make where the wanna be in on JPM any of financial institutions. What was the mood at the shareholders' meeting where they defensive where they proactive where -- Conciliatory limited it would political. I just over -- -- of the best by the shareholders meetings minutes that the media we write by the protesters in the occupied -- people there were eight. There's a protest and you know it's interesting is that. Sometimes you joke about the protesters as they do have that they're protesting everything. But among the everything's gonna -- the -- whales and let them is the legitimate gripe about wire US taxpayers. On the -- hook. To allow the too big to -- banks of which JPMorgan Chase has one. To essentially go out there and gamble or trade for profit in out. Jamie -- that he was -- the bank that -- So if taken at face value they were not treated for profit they were heading to hedge and simple English. There -- gonna make a profit if if you're hitting more than the total value yet that you're trying to protect. You make it a drop it worked out well. So any heat instead he wants -- that but he said our hedge morphed into something beyond our own principle. You know in English. We were doing what you say we were doing. But what I think it would anyway. So. You know JPMorgan Chase. -- this is. I lost what respect. I like it just reminds me of the British Petroleum story remember them remember when BP had the oil slid down in the ultimate. Not that secure borders are more upset with JPMorgan Chase -- more upset. With the way they've done a mortgage refinancings. And foreclosure. Remit. Helping people and composure and they were over the -- -- laws now that of course. Was something they've brought up. But far more people it was a priest that housing advocates people who are shareholders talking about that issue mortgages. Well I just think it's very curious the EE EC the stock crater like this and I think they'll be some guys that some traders and I'll bet it's the institute of the guys that are at the front of the bus that you referenced earlier Adam right yes they're gonna be the ones. They're going in and buying JPMorgan at 1011% discount because they know that in -- when you look at the books they should have been maybe one or 2%. Price decline in the stock. Yeah although this morning. You know this is we haven't started trading at least we have fifteen minutes but it's looking as if we may open to the downside to JPMorgan again yeah well and I think it's because they've they've announced that that two billion dollars next agreed to -- but they want everybody to besides well pointedly. You know it ending in they also have now a shareholder lawsuit right that doesn't help. Yet but they. You're video that we interviewed people who pay the analysts from -- fail the -- And he's pretty respected banking analyst and he on on our air with things like this is a terrific bank and if you're selling his bank you're not since he said. Because they're gonna make roughly eighteen billion dollars this year there on target to make 22 billion dollars next year. So how many. You know and its institutions in this country over as the president said well managed to -- -- -- you looked at them in and now. They're dividend yield is up to a 3.2 percent. Aren't you -- that -- there was an article is a great article about that you know if if you if that's valued. A key decisions to invest in and out but perhaps speed time to buy it. -- it's a pretty interesting time in. Adam I appreciate your perspective on that story thank. Don't let him. Friends don't let stand by it. I may acted in and -- like 25 share should regularly by 25 shares. Go to theater have a good time take defiantly don't plea to money on Adam let let -- -- -- for neat yeah it's okay don't don't discourage him I've talked him into this. Our way yes look I've gotta be wrong and I can't wait till next week you can tell me how wrong it was about -- About you know what I'll do is I'll buy some shares and then I'll say whether -- -- money and gotten it from -- if -- if I lost money you can never ridicule me you know if I -- ever -- that not everybody else does the united -- and so are -- -- great weekend due to that's out of -- from the Fox Business Network joining us today. On the financial exchange he doesn't think it should -- this year and it gives you so much negative sentiment out there about -- I don't know I don't know any of those stills it's still strong enough. The media all over this such a negative way it seems like every morning I get up and CNET negative story as to -- not to buy into the so -- seed of arranges stories -- they -- if you look around you're seeing some that are very positive -- FaceBook and others that you know not so much.