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tv   After the Bell  FOX Business  April 20, 2015 4:00pm-5:01pm EDT

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morgan stanley, halliburton were among other winners that were notable on earnings. [closing bell ringing] david: i'm happy. i have a little bit of halliburton. i'm happy about that. bells are ringing on wall street. it is a spectacular day. so much we have the big ups and you downs on the markets. dow is settling to the plus side. all indices i was going to say above 1%. s&p is a little bit of a laggard. but it is above 2100. that is a critical area. some people look at 2120. other people have other ceilings in mind. a huge day for the market. will it last? you're up couple hundred points one day. we'll talk about that with our panelists. evan bayh, former governor of indiana to talk about hillary clinton. she just answered some of the charges that came out in the new book. we'll get evan bayh's take
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coming right up. "after the bell" starts right now. david: breaking down today's action with our panel, we have time lieden from etf trends. he is telling us why he is betting on small caps. he is in new york. jeff saut from raymond james waiting for the s&p to breach a key level. el tell us what that is and what too do. mash sebastian from the cme. any assurance, mark, that these levels are going to stick? >> well, no, but you know, friday felt like a one-off event. this greece stuff is so overblown. i feel like we're manditorily required about it at least once a quarter. otherwise u.s. markets have to shut down. this is silliness. china story from over the weekend was interesting.
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all this talk about new regulation. david: right. >> what we didn't know they would announce some easing with that. that really gave the markets some relief. that is why we saw a real pop. something really interesting i saw in the equity space. csx corporation, real crazy call trading today. so far volume in csx is 20 times normal volume, all in calls. 125,000 calls in trading. david: what is going on there, mark? what is going on? >> you know there are all these take-out targets. there are lots of rumors about mergers and acquisition. rail is a real interesting space. david: sure is. >> definitely area where there could be consolidation here. david: okay. >> i could see cxx being a target. norfolk southern about same value. david: csx, that is very interesting suggestion. thanks for that. jeff, because of seesaw action, there are times when the best thing to do is do nothing. i'm wondering if this is one of those times until you're sure of some kind of market direction.
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>> i think that's right. i think s&p is locked between 2040 on the downside and 2120 on the upside since early february. to get real aggressive you would need a breakout of one those sides. my guess is upside. a-d line, advance-decline line is pointing that way. russell 2000 which is comprised to a large degrief growth stocks continues to act pretty perky. if this market was about to turn nasty the growth stocks wouldn't be acting so well. david: let me put a fine point on it, jeff what you're saying when the s&p hits 2120, that is the time to move in aggressive? >> that is time to put in capital we raised year-end. we suggested our models that first few months would be sketchy and rocky, a lot more volatility. david: i remember you saying that real well. tom, one of the things we're seeing in financial reports, again we're expecting ibm at any moment, so we may have to break in. effect of strong dollar on
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foreign earnings, really being felt this quarter, is it not? >> i think it is. jeff hit the nail on the head. you can't ignore shawl caps. for average investor underallocated in small caps there are great areas. it is going to be a stock-pickers market this year. some sectors will do well, others aren't. one etf in particular, power shares dorsey wright small cap momentum etf, something to look at because what they do -- david: what is it, by the way? it is a mouthful. >> it's a mouthful, but it is worth it. dorsey wright, great technical analyst, packaged index where every quarter they put 200 of the best small cap stocks out of the russell 2000. david: there it is. dwas are the callers. you're always into these exchange traded funds, right? >> well, all about diversification. it is all about low cost and knowing what you're buying. david: all right. we are going to focus on one stock, mark. i have to mention i have a
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little bit of it is halliburton. halliburton doing extremely well today. does that signal upward move in oil? >> i think it signals stabilization. really big companies like halliburton, exxonmobil, all the great big name stocks in oil and oil services they need oil to stablize to figure out how much money they're going to make and that's what we're seeing. i think $38 call, $20 call we heard from analysts is now bunk officially. we'll see oil sit between 50 and 6bucks for, probably through till july. then once we figure out where the dollar is going, that's where we figure out where oil is going. what we got to, we shut down the spigot enough, oil isn't rushing so hard out of the hose that we can't control the flow. so i think -- david: that is good image. >> i like exxon. i like all of them. david: jeff, talk about the time warner-comcast deal, just ask in weather relation to it,
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probably too late to get in on or out of these companies but what about communication in general? is there anything in the communication field that appeals to you? >> communication and technology were oversold last week. if you look at them on 10 macro sectors. we continue to like tech. we continue to like telecommunications. if i would avoid a sector here they are utilities, trading peg ratio, price to estimated growth over three when technology is trading about one peg ratio. david: they're giving me a wrap, tom. i have to ask you, you're buying into small caps. does that mean sell all your large caps. >> no. the most important thing to diversify. the average investor is way overallocateed to large cap. david: tom, jeff, thanks very much. stay there. we have ibm earnings. we'll come back to you find out what your reaction is. adam shapiro, what are the numbers? >> it's a beat. street was expecting $2.08 on
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revenue of 19.6 billion. they're saying that they had a services backlog as of march 31st, $121 billion. that is flat year to year, david. stock is up -- david: it is trading up after-hours. would you buy in? mark sebastian, up over 2%. is it time to get in on ibm? >> ibm still has a bunch of restructuring going on. you know, that is one where i just think there are better opportunities in other tech names. as great as netflix has done, that still has huge upside. apple, i know you love apple. david: yeah, i do. >> i'm starting to fall into the apple crowd. i like microsoft. i think there are much safer names. ibm is no longer the ibm of early 2000s. it could go either way. could be kodak. could go back the way it was. david: you were talking, as you were talking the stock began to come down after-hours. somebody is listening to you.
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>> the power of mark sebastian. david: exactly. thank you very much, guys. now, new developments in the shipwreck tragedy causing shock all the way around the world. hundreds of people, we're still not sure how many, were killed when a smuggling boat carrying migrants to europe from northern africa capsized in the mediterranean. amy kellogg has the very latest from london. amy. >> hi, david. oh, it is so horrible. italy has been arresting some of the members of or alleged members of these smuggling gangs today. on top of it all, they have released some of the conversations from wiretaps they have picked up from some of these men who have been in prison before. the cynical conversations, david, are unbelievable. referring to these migrants as suckers for paying thousands of dollars they do to make that very dangerous journey across the med. some of these smugglers make as much as a million dollars for some of these hauls. europe meanwhile is desperate about what to do about this human crisis. it is becoming worse bit day.
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as many as nine hundred may have died when a boatloaded up with migrants, capsized and sank in the wee hours of sunday. here are some of the bodies arriving in malta for burial. apparently migrants on board raced to one side of the boat when they saw another ship approaching. they wanted to get the ship's attention. the boat capsized and reportedly there were hundreds locked in the hold. it is believed they went down in sort after tomb. many are from refugees from land-locked parts of africa and can not swim. the boats mostly washed up in italy and outer islands but they are also heading to greece as well. one wooden sailing boat crashed near rhoades today. three including a baby died. as we speak, more distress calls have gone out. ships are on out on the water searching for refugee boats in distress. finally, david, european foreign and interior ministers gathered
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together in luxembourg. they had prearranged business but their focus shifted to what to do about all of this. they shifted to a 10-point plan. italy was running search-and-rescue missions with their coast guard until last year. they were really costly. they stopped it. there were pressure, if you put out so many boats to rescue people, more will come. but now, it turns out they're going anyway. and they're dying. the europeans decided they really need to beef up the coast guard missions again. they need to find a way to destroy some of these smuggler boats in the way that they doesn't harm fishermen or other people they could possibly get by mistake. david. david: says a lot about how desperate situations are in africa, they would be willing to go through all of this at the risk of their lives. amy kellogg, thank you very much. appreciate it. meanwhile here in the states the fbi arresting six people in minneapolis and san diego as part of a 10 month-long probe. young men were trying to travel to syria to fight alongside
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isis, as hard as that may be to believe. the u.s. attorney in minnesota saying the arrests are representative of a larger issue. >> we have a terror recruiting problem in minnesota. and this case, demonstrates how difficult it is to put an end to recruiting here. david: wow. officials say there was never a direct immediate threat to the public but it is an ongoing situation. stay tuned on that. meanwhile a new book is about to drop a bombshell claiming that donors to the clinton foundation may have received political favors when mrs. clinton was secretary of state. can her campaign survive all of these allegations? plus your brain is supposed to help when you make investments, right? well, three new studies say your brain and your emotions may actually be costing you a lot of money. why and how you can actually stop them from losing you money coming up. also some big changes to household staples kraft macaroni and cheese ha may put a smile on
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david: today hillary clinton responded to charges outlined in a new book that the clinton foundation was a way for donors
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to get favors while she was secretary of state. take a listen. >> back into the political season. therefore we will be subjected to all kinds of distraction and attacks and i'm ready for that. i know that that comes unfortunately with the territory. it is, i think worth noting that the republicans seem to be talking only about me. i don't know what they would talk about. i don't know what they talk about when imin the race. i look forward to that. david: essentially only one in the democratic race. will she is new charges stick to hillary. will the democratic party forced to run a real primary with some serious contenders for the party's nomination? former indiana governor and senator evan bayh, joining to us discuss a growing problem for democrats. i believe he is still a registered democrat? >> yes, i am, david. david: first of all to the
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charges, do you think clinton foundation donors were getting or expecting some kind of favor for hillary clinton when she was secretary of state? >> david, i don't think so. the reason for that these facts were all revealed publicly by the foundation and mrs. clinton's team themselves, over and above what the law required. if there was essentially a quid pro quo or some sleazy effort to influence policy would be pretty strange to divulge all that publicly and voluntarily. i don't think that was going on. >> what we're finding out is little more than revealed by the clinton foundation. we're finding specifics, for example, some of these donors had interests in certain foreign policy measures. there was one organization, canadian bank, that had an interest in the keystone pipeline at precisely the time the state department was deciding whether it was good or not. >> the reason we know more about those things the foundation chose to divulge them you above what the law required. number two, instances listed, keystone pipeline in canada, she
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has not publicly expressed an condition. david: she was head of the state department when they were looking into night she hadn't done anything on it. if they were attempting to influence her it was not apparently successful. david: but the problem would say, if it wasn't for her and perhaps her connection with this one organization, the bank they would just denied it whole hog which the administration hasn't done yet. >> that is the problem is. the perception of any influence by donors. you admit that is a concern? >> i will be one of the first people to tell you, david, role of big money politics is way out of control. we need to do something about it. it is not just mrs. clinton. everyone of the republicans if they're governor or senator, accept ad lot of money from a lot of people, some who have business interests. if they're a governor making executive decisions or senate, you're voting on things. someone will say, ah-ha, cast vote a and got contribution b, even though there is no connection. david: we know somebody will. and somebody has with regard to
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clinton. some of the republicans should not run because they are compromised and money they took by people that could be influenced by it. in certain instances it may be a reason why people should back out of running. >> if there is out and out corruption that is absolutely true. david: isn't there something short of indictable bit of corruption that would still make somebody unto run for office? >> of course there is, david, absolutely. the voters will ultimately decide that for themselves. the ultimate dynamic in this election, there will be a lot of stuff going on about all of them. there was stuff about mitt romney and other ones too. david: the stuff about mitt romney some of it was totally made up like harry reid. >> some of it was made up. david: this is based on facts, as you suggested, based on the records of the clinton foundation. >> the point i wanted to make, mitt romney was honorable man. republicans are honorable men. mrs. clinton is honorable woman. at end of the day this is about middle class families, economic concerns and who will do
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something about that. >> finally the idea that she is the only person running, i mean in our lifetime, only time that happened when somebody who is not a president has no opposition in a primary, no real opposition, let's face it. is it time for democratic party to think of plan b, getting somebody decides her that is serious contender? >> well there are a few thinking about it. united states senator, former governor, there are serious people. david: sounds like you. >> no, no. david: you're both, a former senator and a former governor. >> david, you will get me in big trouble. i think speaking realistically, she is dominant forerunner for the democratic party. david: again with all the things that could become an albatross and drag her perhaps the party down, maybe time to get somebody else in there, or at least other people in there that are serious contend? >> i think there is unlikely to happen. i think two or three people run, she will not take anything for granted. no coronation or anything like that. most of the primary action will be on republican side of the aisle. david: still can't push you in the ring?
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>> despite your best efforts, david, thank you. david: evan pai, good to have you here again. thank you very much. former senator evan bayh. tell us what you think about all this. do you think clinton foundation donors got special treatment when hillary clinton secretary of state. tweet us. fbnatb. something he said in the past couple of days causing grave concern. our all-star panel weighs in next. plus nothing lasts forever. months of cheaper gas could be coming to an end very soon. keep it right here on fox business. also former fed chairman paul volcker telling regulate, to wake up. we have a huge financial problem yet addressed in our system. what is it and is he right? we'll debate that coming up.
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people ship all kinds of things. but what if that thing is a few hundred thousand doses of flu vaccine. that need to be kept at 41 degrees. while being shipped to a country where it's 90 degrees.
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>> sanctions coming down, i don't want to get out ahead of
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john kerry and my negotiators in terms of how to craft this. i would just take a general observation. and that is, that, how sanctions are, lessened, how we snap back sanctions if there's a violation, there are a lot of different mechanisms and ways to do that. david: wow. the president hemming and hawing a lot on friday, contradicting basically his earlier insistence that sanctions on iran would remain until they were sure that iran was abiding by nuclear deal. let's bring in our panel, matt welch, "reason" magazine, sabrina schaefer, independent women's forum and fox business's adam shapiro. sabrina, to me, you hear the ayatollah coming out saying, no we want sanctions relieved immediately. that was supposedly a
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non-negativable point when the present presented this two weeks ago. now it is negotiable. what is that about? >> there's a reason between hemming and hawing, his deal is so bad. david, what is so concerning, as we lift sanctions money foes flow intoing iran, that will reinforce their military standing. it will make it so they have fewer regulations on their, and inspections. at the same time they will have more funding for their projects. this is very concerning all around. david: matt, we had evan bayh on said he was leaving, this thing scares him for anything else. >> hillary clinton has begun to say similar things out there. we have irresistible force a lame duck president wants to get deal of all, but we have i am moveable object of republican party not going to more likely give up sanctions three months from now, when three big senators are running for president and talking about this. so i think we're getting closer to a deal, but we're getting closer to a deal very few people
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will support. that will eventually undermined it. david: adam, on the positive side, we had the senate last week unanimously deciding any deal would go through them first. democrats were standing up to the president as well as republicans. >> that is correct but matt put the finger on the button is, that the president is desperate to get any deal possible. you're seeing rhetoric ratchet up. you have got from iran, the revolutionary guard saying absolutely no way will there ever be a allowed inspections of military sites. how a deal could possibly get done is starting to evaporate. the president will go there. he is desperate. not just mat who says it. "new york times" talked about the president wanted to create a legacy. whether it is the right legacy, hopefully the senate will keep in line. david: hopefully they keep i am in check. canada is having trouble getting oil to market as indian and conservationists block ad western alternative to the keystone pipeline held up by the
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obama administration. does this give keystone pipeline another chance? adam, they were trying to get oil over to china but they can't get it there. maybe keystone will be the way? >> not just first nation or be a bore ridge niece. that are not just only opposed but environmentalists in canada opposed to it going through vancouver and british columbia. alberta, that prov governme assessment said it would have no contributing factor to green house gas emissions and global climate change, because that oil will still come out of the ground and transferred via trains. we have a pipeline already from canada down to oklahoma, to the gulf. it was second pipeline we would be doing. we're already doing this keystone will get built one day. david: i'm thinking if it doesn't go to china, go west to china, it has got to come here, right? this is good news for americans.
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>> right, i'm hoping that is the case. my concern this is sort of a bilateral agreement between canada and the united states and if canada is facing the same problems from their environmental movement as we are having here, despite the fact their national energy board also declared the city totally safe, the same way it has been declared safe here in the united states, i worry we may run into the same problems. david: matt, the fact is, there is political correctness everywhere. canadians have it just as much as we do. >> sure is. the price of oil which fluctuates a lot and impacted this. keystone is such a symbolic political point at this point, that people stopped talking about the pragmatics of it. it is unclear if president ben carson signs this thing into law in 2016 whether or not we'll even see the thing get built. david: president ben carson the interesting. all right, gang, regulation v. vamp. a giant in the banking world warning that post-financial crisis rules will not do anything to prevent another crisis. he is right?
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oural star panel to answers to paul volcker's solution. believe it or not airline customer satisfaction is tore soaring. we'll tell sell tell you the best and worst airlines according to a new passenger survey. don't go anywhere. we'll be right back. ♪
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david: former fed chief paul volcker is worried all the new banking regulations will not
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help prevent another financial crisis. writing in today's "washington post," volcker declares the structure that failed us in responding to the emergency is largely still in place. so are we in trouble? let's bring back our panel. matt, is he right? >> of course he is right. too big to fail in my view is one of the most insidious problems from the crisis aftermath. we enshrined that into law. every new round of financial regulation supposed to save the system. defer news. sarbanes-oxley was suppose to prevent another financial crisis after enron. how did that work out? david: sabrina, it was supposed to make biggest banks less powerful. they're more powerful than ever and more concentrated than ever. >> i agree with matt, we absolutely needed regulations and changes. we don't want the american taxpayer bail out wall street again, one of my concerns
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paul volcker has tremendous faith in the federal government. in his new proposal he is talking about concentrating much more regulatory power in way that concerns me. one thing as matt points out, we not only need to look at size of banks but complexity of their activities. that is something maybe overlookedlooked with volcker. david: adam, what about colver solution? he wants everything under umbrella super government agency? >> i would twist it, because paul volcker proposing it because he is does not have the faith in the u.s. government and myriad of regulatory agencies duplicate what they're supposed to be look but don't do it. streamline the process, make it easier for the banks to comply with one regulator or two regulators or try to navigate around it might be a better solution. david: matt, isn't that for example, what homeland security was supposed to do after 9/11? they were supposed to combine the fbi, cia, all the agencies. that didn't work out real well. >> people are always trying to centralize in washington fix a
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previous act of centralization and in very rare circumstances does that actually help. david: all right. let's move on to time warner and comcast. they're having all kinds of trouble with their $45 billion merger. they will be sitting down with justice officials on wednesday. but could their biggest problem they're too big to change as quickly as all the small companies trying to cut cables? adam, are the big companies behind the curve? >> they're behind the curve in one sense. eventually the business model will not make as much money as it does. that is still coming down the pike. they will make money one way or another, david, whether they merge or not. they will raise the fee you and i pay to have internet connection. you have to connect to the internet. even if you're a cord cutter you will still need comcast or time warner cable with their wonderful customer service, you know what i'm talking with, in order to get your hulu or your netflix or your apple tv. david: just a little facetious on good service of those companies. sabrina, what do you think?
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>> absolutely. regulators are particularly concerned about the bad service which is interesting but i think the time warner-comcast sort of model might be more of a problem. consumers want that flexibility. they want the on demand status. they want to do things when they want it. they want to watch things. i think these big companies are so far behind, i agree they do need internet connection. seems like making a larger consolidation of power may not be the right move. david: right. matt, call me crazy but i have a feeling that, okay, i'm crazy, that there is some small company out there, maybe working in their basement, maybe not, but some small company that will come up with a solution that these big guys will miss. >> called aereo. david: exactly. there are some suggestions but maybe do it in the ether without any cable at all. >> look attract record and are we still under the thumb of internet explorer? >> they're killing that. david: when you look at
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time warner-comcast merger or attempt to merge, i think of aol back 10 years ago, right? >> right. there is a lot of people saying 15 years ago, combination of aol-time warner, there would be death of expression on the internet which was dead in half an hour. if we look at regulation like this, with net neutrality, what it enshrines these old incumbents and denies the new competitors who have crazy, gee-whiz technology to leapfrog to route around them. we should use antitrust to make up local monopoly arrangements with these companies, not break up the merger. david: quickly, adam. >> reason merger won't go forward in future the combined company would let you watch tv in two or four-hour window when your show would arrive and we don't know will arrive. david: we don't know about technology. sabrina, go ahead. >> they're still fighting merging together, meanwhile competitor verizon announced a
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new plan that would have a a la carte system. it is behind programs like hulu, amazon go, it is a step in the right direction. we'll have to see progression. they're a little slow. david: matt welch, sabrina schaefer, adam shapiro. if sabrina looks familiar, she is on "forbes on fox" a show with myself you see every saturday, 11:00 a.m. eastern time on fox news channel, our sister network. meanwhile as oil production and supplies continue to fall the international energy agency predicting higher demand for oil which is likely to increase prices at pump. jeff flock is on the road as usually, literally so to see how high the gas prices might go. jeff? >> tell you, david, look out the window here, if lori spins around, 2:45 for the travel america stop at gary indiana.
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that is the national average. here is the problem with that, that is ticking up a penny a day over the course of the past week. it is about oil prices. look at oil price numbers today, up again today, not a whole lot but up a little bit. this is about inventories. a report out this morning they think inventories they think just about peaked. maybe there is not as much supply as we thought. the saudis, if you look at opec, they're still pumping heavy, in the u.s., in places like north dakota, where it is a little hard to get oil out of the ground the incentive at a lower price point is just not there. so u.s. production is down. less supply out there, well you figure it out. supply and demand. right now the prices are beginning to tick up. we talked about maybe $20-barrels of oil. i don't know. doesn't look like it is on the horizon right now. this horizon, by the way, towards chicago. david: and flat it is, isn't it. how did you manage to get the
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gas station just at right time? you guys have incredible timing. >> sometimes life is good, you know, what can i tell you. david: better to be lucky than good, jeff flock. thank you very much. jeff. appreciate it. from the road to the sky, airline customer satisfaction is near a record high believe it or not after jumping nearly 3% from last year. but just released american customer satisfaction index finds airlines still range among the worst industry. only internet service providers as we talked about before, prescription tv and health insurers scored a little bit lower. jetblue is the top airline for customer service, scoring 81 on scale of 100. southwest was second at 78. alaska, delta, american round out stop five. at the bottom, spirit airlines was worst rated for customer service, scoring 54 out of 100. sorry, spirit, that is the way it is. coming up we tell you about a new active wear company taking
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on big players like under armour and nike. next we tell you how they're taking on the competition, how they can beat the big guys. kraft foods jumping on the healthy bandwagon. we'll tell you what they are doing to their mac and cheese. that is coming up next. no pictures of trucks pulling boats. no photos of men working on ranches. just a ram 1500 ecodiesel that gets the best fuel economy of any half-ton pickup. get more facts at ramtrucks.com
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"what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.
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david: more than a million boxes of kraft macaroni and cheese are sold every day. the boxes are about to get a big change. kraft foods announced original recipe sold in the u.s. will be made without artificial preservatives or synthetic colors. that is with a growing trend. it will replace synthetic colors with colors that derive from natural sources. the change takes effect in january of 2016. everybody is doing it. how do you take on giants like nike and under armour in sports apparel? this is almost impossible task if you think back not too long ago where under armour was a jump up start. make is head of an up start now. how do you compete with the huge monsters like underarmour and nike? >> it is difficult. they very well established and
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the difference is when you have a big brand you have to apply to everyone. so what's great about us we can still be small and apply to all of the, all of our niche customers who are active men. david: by the way you're wearing now, we can see the ad but what you're wear something all your product as well. >> right. david: one thing that distinguishes it is silver. you get silver fiber into the materials. what is that for? >> silver has been an antimicrobeal agent for thousands of years and used in medicine. we're using it in clothing. encapsulated silver fiber that fights odor and bacteria, very simple, silver fights bo. >> right. unfortunately we men tend to sweat and silver can fight it. no matter how many times you wash it the silver stays part of the garment. david: does it have other effects? i'm holding it right now.
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this did soft material. >> this is running short we're launching. this is called the tornado short. it is named after the torrence tornado from -- david: oh, yeah, sure. >> what is great about this product it has a liner that has the silver product. so where you sweat, in your sweat zones it will fight bacteria and fight the odor. david: do you have a patent on this? clearly under armour or somebody else could copy you, could they not. >> certainly. the thing that distinguishes us we use direct brand straight to the customers. we work with only high-end retailers like bloomingdale's and equinox. so we can do it in a way under armour and nike will never be able to do because of their execution. david: by the way, one of my favorite books, was "unbroken." i'm wondering if zamporini, passed away recently. did you try to get him to endorse product. >> he is hugely influence to me
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and i loved the book. i want to pay homage to figures in the past. david: sponsorship, jordan speith, the guy who won the masters, magnificent. under armour owes part of the profits to him and what he has done. that was him on our set, april 14th, a week ago. are you looking for somebody like him? under armour spotted this guy when he was only 18 years old. he is now only 21. >> right. david: are you looking for somebody like that, somebody young you could latch on to? >> of course he. we would be honored work with somebody like jordan. one of the things we focus on to deliver a premium product at accessible price. the more you spend on sponsoring these athletes the less you're going to have, more price you have to charge. david: unless you find somebody who is like 16, for whom, 10 grand is a lot of money. final question, personal question, your dad ran madison square garden, right? >> yeah. david: do you take any advice from your dad? >> all the time. david: particularly on
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management? >> all the time. what he always says make sure you're accessible and you're honest and sincere. that is something i always try to employ with your group. try to be direct and sincere. we have a terrific team that work with. he also taught me to hire smarter people than myself which i have been able to do. >> great advice. great advice. terrific stuff. we wish you the very back. the company is called rhone apparel. nate check its. thank you very much. nate. brain science behind your money moves. three new studies discovered biases exactly how investors buy and sell. are you falling victim to the biases? how to combat your natural instincts either to buy and sell which may drive you in the wrong direction. that is coming next. new weapon against credit card fraud. how one company wants to make it a lot easier than ever to shut down your credit card whether it is lost or stolen. advice you will not get anywhere else.
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don't go anywhere. we'll be right back. hi, everyone, i'm gerri willis. coming up on my show at the top of the hour. the we're helping you steer clear of mortgage scams with consumer expert clark howard. that is one of the big consumer stories coming up on "the willis report" coming up in just a few minutes. it's more than the cloud. it's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services - all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next.
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♪ >> so is your brain biased when it comes to investing? three new studies suggests it is. and it might be costing you a lot of money. the wall stree wall street wal m wrote about it. you talk about ranking. we have a knee-jerk reaction to sell or buy the biggest -- the biggest moving stocks we have. the richest or poorest stocks we have. ranking your stocks is not a good idea. >> the risk is that by only looking at the biggest winners or the biggest losers that you may overlook something really important about something you're not focused on. so the study is sort of saying, stop and think about why you're making a decision like this. and say, what am i focusing on and what am i missing on if i focus on one thing and not the other? david: the next one is kind of
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weird. american investors don't like foreign-sounding names. that is, if you have a particular investor who you want to put your money with, if it's a foreigner, you tend not to go with it, even though they may have the best record. >> so the study looked at flows into various mutual funds. and they classified which one was run by someone with a foreign-sounding name. or which one by an american-sounding name. by asking people in the us, which one does this sound like, foreign or american? there was more money that went into the funds run by typical american sounding names than the funds with the foreign-sounding names. david: did americans make any attempt to find out whether these foreigners were good at what they were doing? >> this was done at a subconscious level. nobody was sort of thinking somebody is better or worse than the other. they're sort of making a snap judgment.
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david: finally, there was one where most funds have parent companies. some people instead of looking at the success or failure rate of a fund, they'll look at the parent company. and that's a mistake. >> and, again, it might be on a subconscious level. maybe you've heard good things about the fund company. you don't think necessarily, well, i think because the fund company stock doing well, the mutual fund is doing well. it's a subconscious fortunately. the stock prices doing well, even though the performance of the mutual fund might not have anything to do with it -- david: there are other emotional elements. shouldn't we put it on autopilot? buy a stable etf, for steady, stable growth and just ignore the ups and downs that may cause a knee-jerk investment. >> there's a fair amount of research that suggests that that's exactly what you can do to prevent yourself from
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being jittery or overconfident or human in some other way that might hurt you. that's one of the reasons that index funds have become popular. even people who don't like to invest in index funds or whatever reason, they can learn from this research to find out why they think the way they think. >> great to see you. interesting piece. thank you for coming on. >> thank you for having me. david: if you lose your credit card, don't worry about canceling it because of a new discover method. discover is rolling out a new feature to freeze it. let's customers block the use of their card when they want. it prevents new purchases, cash advances and balance transfers. it's a great new device. meanwhile, we asked if you believe the clinton foundation donors got special treatment when hillary was secretary of state. croll told us, hillary honorable? they approved keystone after donations even if it was obvious obama
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wouldn't approve. spencer said it's hard not to believe. it allows critics to ad-lib at will. consider running for the senate again, please. that's it for us. the willis report is now. gerri: hello, everybody. i'm gerri willis. and this is the willis report. the show where consumers are our business. new questions about foreign donations to the clinton foundation. as hillary's election money machine kicks into high gear. >> hillary clinton will raise $2.5 billion. which that's a lot of chipotle, my friends. [laughter] >> airlines never gave us the price break on fares, due to fuel prices until today. my advice: don't expect too much. susan somers takes a break to be with us. she has a new warning for everyone concerned about their health. >> doctors are practicing 50-year-old med. the game has

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