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Markets Poised for Flat Open; A-Rod Could Return Soon; Sen. Graham Backs Off Russian Boycott; Lawyer: Snowden could leave Airport Soon; Netflix Snags 14 Emmy Nominations; Johnny Manziel Denies "Hangover"; Tiger Woods and Nike Agree to New Deal
Aired July 18, 2013 - 09:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Now we aren't poised to see too much action. Many investors still waiting for Bernanke, Ben Bernanke, the Fed chair, to sit down for a second day of questions on Capitol Hill.
Christine Romans is in New York watching it all.
Good morning, Christine.
CHRISTINE ROMANS, HOST, YOUR MONEY: And Carol, good morning. It matters so much to you what Ben Bernanke says and I'm not kidding here because Ben Bernanke is talk about the economy -- House members yesterday and today it'll be to the Senate. He says the job market is improving. He says that the housing market, Carol, is strong and with this strength in the economy, you're likely to see mortgage rates continue to rise.
So that's how homeowners will feel what this strength of Ben Bernanke is seeing in the economy. And also, you know, when will the Feds start pulling back on its historic stimulus. The Fed giving -- Ben Bernanke giving sort of a timeline for that. And that's really important.
When the senators start asking the Fed chief questions later this morning, that's when I think you could see the markets start to move.
Carol, what's really key here, the Dow is up 810 points, Carol, in just three and a half weeks. That is unbelievable.
COSTELLO: Wow.
ROMANS: Open up your 401(k) statement, log in, everyone, take a look and, please, if you do one thing this week, take a look and rebalance your portfolio so you have the right mix of stocks, bonds and cash because you had a stellar year. Stocks are up 18, 19 percent so far this year. You rarely see that happen. It's been a very big move.
Big moves also in the bond market. So it's incredibly important not just to close your eyes and forget what's happening here. Every single person with a 401(k) should be taking a look at what they have right now. What Ben Bernanke says later to senator will be really important for how the bond market and stock market react and what expectations are for the Fed getting out of the game here. I expect you'll see mortgage rates continue to rise. I expect to see a housing market that is strong. But I'll be watching those mortgage rates rising to see if it puts a little damper on it. And stocks, at least for now, the path of least resistance, Carol, is higher.
COSTELLO: OK. Let me ask you this. I know what the Fed says matters, but Congress hasn't really done anything pertaining to the economy, oh, in forever. So does that prove the theory that government can't control the economy?
ROMANS: You know, that is such a good point. I'm so glad you asked it because the first thing Ben Bernanke said yesterday when he gave his testimony to the House side. The first criticism he had was that the economy would be doing better, would be doing better if it weren't for all the craziness in Washington.
He didn't use the word craziness, but that's what he meant. The economy would do better if we had a fiscal plan, if we had a budget, if we didn't lurch from one Washington crisis to another to figure out where the country's books were going to be. I suspect he could make that point again here today, but it is a very, very good point.
The Fed -- the Fed chairman said in his testimony yesterday and he said definitely that we would be doing better. The economy would be doing better if it weren't for Washington.
(CROSSTALK)
Holding us back.
COSTELLO: They're not going to do anything.
ROMANS: They're not going to do anything. And you got -- you know, look, you know you're right, you're right. Let me end on a happy note. Stocks are up 810 points in three and a half weeks. Don't let me end on Congress.
COSTELLO: I'll take it. Christine Romans, thanks so much.
ROMANS: You're welcome.
COSTELLO: Up next in NEWSROOM he is the highest paid player in baseball and Alex Rodriguez is also the most controversial. So what awaits A-Rod and his possible return on Monday? Should baseball fans welcome him with open arms?
(COMMERCIAL BREAK)
COSTELLO: With baseball season half over the most polarizing, highest paid player on the game could soon be back on uniform. Alex Rodriguez could finally rejoin the New York Yankees Monday after spending the past nine months rehabbing a hip injury. And his off the field problems may even overshadow the fact he's hitting .179 in the minors.
Just this week A-Rod talked with our Jason Carroll about it all.
(BEGIN VIDEO CLIP)
JASON CARROLL, CNN NATIONAL CORRESPONDENT: What happens if there is a suspension and how disappointed would you be if you're not able to come back?
ALEX RODRIGUEZ, NEW YORK YANKEES THIRD BASEMAN: Well, I'm going to focus on the positive. You know. Obviously, that situation I can't calm inside at the moment, but I'm really looking forward to coming back to New York. I feel like I owe the Yankee fan base my A-game. I don't think they had that last year.
(END VIDEO CLIP)
COSTELLO: Ted Keith is the baseball editor for SI.com.
So your prediction, will A-Rod be back on the field, a Major League field, that is, on Monday?
TED KEITH, BASEBALL EDITOR, SI.COM: Yes, I think he'll be back. He said that he was coming back and this time the Yankees actually agreed with him. If you remember he first said he was going to start playing again and the Yankees said, no, you're not. Of course a little bit more colorful than that. But he'll be back. I just don't know exactly how much of a difference he's going to make.
He's certainly going to be an improvement over the third baseman that they've had but I think expecting them to get this sort of all-star hall of fame level A-Rod that they've had in the past is probably unlikely.
COSTELLO: Well, he's batten 179 in the minors. I mean can you really return to, like, a 300-hitter?
KEITH: No, probably not. But you know what the Yankees are getting right now is the equivalent of about 220 hitter so 300 would be a massive improvement for them. What they're not getting is any kind of run production at that spot in the line-up. You're not getting any RBIs or not moving hitters along. And A-Rod can help in that area. He'll be an improvement, he's just not going to be a difference maker in the that they're used to.
So a lot of fans feel that A-Rod is just like killing time in the minors because he wants to collect the rest of us 100, you know, what's owed to him is a $100 million dollars. And he's really not interested in playing baseball anymore.
COSTELLO: Do you thinks that's really true? Because he said he loves the game. Told that to Jason Carroll.
KEITH: Yes, no, there is a rumor a little while ago that was floated in some of the New York papers that he was going to think about retiring as a way to still collect his money. That theory was pretty well debunk. Be does say he wants to come back now. He's owed $114 dollars. Certainly his future is very cloudy. Mostly because of the ongoing investigation and the possible suspension that he faces, but I don't think retirement is really in the future for him. At least not anytime soon.
You know, he's still a competitor. He still wants to play, still wants to win, I think, but trying to guess what's going to happen with Alex Rodriguez is probably everybody's parlor game in baseball but no one ever really knows the exact answer but he'll be back, I just think the Yankees would love to get rid of him. I just think they're going to be able to.
COSTELLO: All right. Ted Keith, baseball editor for SI.com. Thanks so much for joining us this morning.
KEITH: Thank you.
COSTELLO: Edward Snowden may be on the move. More on that and why Russia says they just can't hand him over to the United States.
(COMMERCIAL BREAK)
COSTELLO: Forty-two minutes past the hour. Time to check our top stories this morning.
Ariel Castro struggled to keep his head up and look at the judge during his arraignment. He's been charged with more than 900 counts of kidnapping and raping three Ohio women for nearly a decade. Every after several requests by the judge to look at her, the judge started to lose her patience.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Mr. Castro.
ARIEL CASTRO, DEFENDANT: Yes.
UNIDENTIFIED FEMALE: Again, you must look at me, sir. Can you open your eyes, please? At this time it is my duty -- sir.
UNIDENTIFIED MALE: You have to look up.
UNIDENTIFIED FEMALE: Please keep your eyes open so I make sure that you are listening to me and understanding what I'm saying. OK?
UNIDENTIFIED MALE: Keep your eyes open.
CASTRO: I'm trying.
(END VIDEO CLIP)
COSTELLO: Castro pleaded not guilty. The judge set bail at $8 million and prohibited Castro from contacting his alleged victims. His trial set to start August 5th.
Senators have reached a tentative agreement on a student loan package which would put caps on how high those rates could rise. Sources tell CNN the caps were key in getting Iowa senator and the chairman of the committee that oversees federal loans, Tom Harkin, to back the plan. Harkin's support could persuade other Democratic senators to vote for the bill. Student loan rates has doubled to 6.8 percent on July 1st.
This morning a cooler head over next year's Winter Olympics in Russia. One Republican senator has said the United States should actually consider boycotting the Olympic Games if Moscow grants asylum to the American accused of espionage.
Edward Snowden leaked details of a secretive and controversial intelligence program but just hours later on CNN, Senator Lindsey Graham backed down from that boycott threat.
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