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Apple's Stock Prices Down 30 Percent Since September; A Missouri Lawmaker Wants Parents to Tell Schools if They Own Guns; 15- year-old Niemia Riego is Accused of Killing His Own Family; Sloane Stephens Beat Fellow American Serena Williams in the Australian Open

Aired January 23, 2013 - 13:30   ET


MARTIN SAVIDGE, CNN ANCHOR: I don't know if you were able to see it, but there was a stunning upset at the Australian open. 19-year-old American Sloane Stephens beat fellow American Serena Williams in the quarterfinal round. And Williams wasn't happy. She smashed her racket to the ground after Stevens took a one game lead in the third set.

Mark McKay caught up with Stephens before she headed to Australia.


MARK MCKAY, CNN SPORTS CORRESPONDENT: Sloane Stephens is making a name for herself in the tennis world. The 19-year-old with the athletic build and big smile is the youngest player in the top 50. She's not afraid to tell you about her approach to the game.

SLOANE STEPHENS, TENNIS STAR: It's going to be hectic out there, but I think, you know, it's going to be a grind to get every ball back, you know, run after every ball. If I'm losing, you're going to be tired, I'm going to be tired and it's just going to be a battle.

MCKAY: Stephens knows that America is hungry. Make that starving for a new tennis star. She also knows the comparisons to the Williams sisters will only grow louder as she wins more matches, but for now try not to confuse her with Venus or Serena.

STEPHENS: Yes, some people are like, oh, my God, are you Serena? I'm like really? Do I look like Serena? Like come on, seriously. But, at UCLA people would see her and think she was there. So, I would come an hour. They like oh, my God, Serena. I'm like, wait, what? What? No.


SAVIDGE: I guess it's pretty safe to say those comparisons are going to stop now that Stephens has beaten Serena Williams. The rising teen star will face the defending Australian open champion. That's Victoria Azarenka in the semi-final round.

A Missouri law maker wants parents to tell schools if they own guns. What do you think? Is that a violation of privacy or a smart way to keep track of weapons?


SAVIDGE: Authorities say that a shooting at a community college in Texas apparently stemmed from an argument between two men. They say at least one of the men was armed and at least one had a student I.D. Three people were wounded including the men involved in the argument. A maintenance worker was also hit in the leg. The man who is the shooter is in the hospital. He was charged with aggravated assault. It was the sound of gunfire that sent students ducking under desks on the college campus of Loan Star College.

And relatives say that a teen accused of killing five members of his family and plotting a massacre at Walmart is not a monster. That they also can explain the horrific acts 15-year-old Niemia Riego, allegedly committed. They say something terribly went terribly wrong. Relatives described him as a gifted athlete and musician who was active in his church. But authorities say that Riego shot and killed his mother, father, and three siblings in their New Mexico home. The sheriffs said he planned to continue his rampage at Walmart and then die in a shootout with police. The question, why?


DAN HOUSTON, SHERIFF, SAN BERNALILLO COUNTY, NEW MEXICO: The motive is articulated by the suspect, was purely that he was frustrated with his mother. He did not articulate that to our investigators any further or give any further explanation of that at all.


SAVIDGE: The sheriff also pointed out another factor, video games.


HOUSTON: I can tell you that the suspect was involved heavily in games, violent games. It's kind of what he was in and was quite excited as he got the opportunity to discuss that with our investigators.


SAVIDGE: Riego's case is expected to go before a grand jury within the next ten days. He's being charged as an adult.

The National Rifle Association slams President Obama over his inaugural address. In a speech in Las Vegas, executive vice president Wayne Lapierre says the president's words make a mockery of America's freedom. He sounded off over Mr. Obama's call for expanded background checks.


WAYNE LAPPIERE, EXECUTIVE VICE PRESIDENT, NATIONAL RIFLE ASSOCIATION: He wants to put every private personal firearms transaction right under the thumb of the federal government. And he wants to keep all of those names in a massive federal registry. There's only two reasons for a federal list on gun owners, to either tax them or take them. It's the only reason.


SAVIDGE: A Missouri sheriff is defiantly pledging not to enforce any part of president Obama's gun control plan that he thinks violates the constitution. He's even drafted a letters asking fellow law enforcement officers to do the same. He wants them to sign it and send it to the president. Part of that letter reads quote "any attempt to restrict the second amendment rights through the executive order is unconstitutional and tantamount to an all out assault on the United States constitution," unquote.

He goes on to say, as Osage County sheriff, I also took an oath to the constitution but unlike Obama, I intend to uphold mine. About a dozen sheriffs in Missouri have signed and now sent that letter out of the White House.

Meanwhile, on the other side of the gun debate a Missouri lawmaker wants to require any parents who own guns to notify their child's school.

As Elizabeth Matthews from CNN affiliate KSDK reports, parents have mixed reactions.


ELIZABETH MATTHEWS, REPORTER, CNN AFFILIATE KSDK: It's the next idea in a long list of proposed ideas for gun control making it mandatory for parents to notify their children's school about their gun supply. State senator Maria Chappelle-Nadal says she wants the violence in school to stop and this is just one different idea that no one has brought up.

MARIA CHAPPELLE-NADAL, MISSOURI STATE SENATE: It encourages parents to make sure they store their guns safely in their homes. It gives the school districts the opportunity to help encourage gun safety in the community and in the household.

MATTHEWS: We head today a high school basketball game to see just how parents would feel if they had to inform their school that they are gun owners.

DANAELLE STIDUM, PARENT: I agree with it. We need to know because a lot of parents aren't governing their homes properly.

MATTHEWS: Most parents say the bill doesn't focus the attention on the right parents.

BILL KOSTER, PARENT: It concerns me a bit because I think the parents that would have no problem registering their guns aren't the ones you have to worry about.

MATTHEWS: The principal of Brentwood high says the information may help the police more than the school districts. And what about blaming a parent for guns in their house that they don't even know about? DON RUGRAFF, PRINCIPAL,: Maybe a student obtaining a weapon without the parent even knowing about it.

KRIS MILLS, PARENT: I understand what they're trying to do, but making us notify them if we have guns is not going to deter the behavior what makes people do what they do with guns.


SAVIDGE: Tomorrow, by the way, at 1:10 eastern you can join us for a live interview with the lawmaker behind the bill. That is state senator Maria Chappelle-Nadal.

Home sales, they have hit a five-year high, so the question, is it time to sell or buy? And how does this impact the market? That will be next.

Vacations, bloodlines, nights out, do your friends seem to have it all on facebook? Well, if you're getting jealous, you are not alone. How facebook can trigger depression.


SAVIDGE: You know, Facebook is supposed to make you feel connected, happy, but there is a fascinating new study that has uncovered rampant envy among people who use the site. The real question is, could facebook be making you envious and miserable? And if so, what should you do about it?

Well, senior medical correspondent Elizabeth Cohen joins me now.

And first of all, what exactly did the study finding us here?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, the study looks at German college students. So, pretty specific group of people. And what they found was that one out of three of them said that they had feelings, like specific kinds of feelings, such as anger, frustration, or irritation when they used facebook which, as you said, you're supposed to feel connected and happy. It's sort of unfortunate that one out of three felt this. And then, when they asked more questions, it takes us to the bottom of it which is that there was feeling of envy.

SAVIDGE: And what triggers it? I mean, what are the specific events or postings that get people angry?

COHEN: You are on facebook. You are looking around and you see someone's vacation pictures. Wow, they had a great time on their vacation. Or you see a picture of someone in a happy moment, like newborn babies or you see someone's - you see social success, you know. Wow, boy, they're at a party with 30 people or wow, they have more friends than I do. It's the same kind of thing that makes you envious in real life, right? Except on facebook it's on steroids.

SAVIDGE: It's in your face. COHEN: In your face. And so, that's hard for some people to take in. There is one out of three that felt those emotions. They generally felt more dissatisfied with life.

SAVIDGE: So what's the solution? I mean, should I just forget facebook or is there a way to deal with it?

COHEN: You know, I think that if it's really making you miserable, then, -- and you can forget facebook. Some people can't for their work, their school, they really need to be on it. But, there's a couple of things you can do short of getting rid of facebook.

So for example, you can say -- do a gut check and say, am I one of these people? When I finish an hour of facebook do I feel happy or do I feel kind of yippy because I have seen these wonderful things that I look people are doing?

Also, you can avoid posts that set you off. If you know that cousin, Billy's pictures with his new family make you envious, don't go to his page. And you can you also hide his posts. That is another option.

Also, recognize that facebook isn't reality. People are putting their best face, literally, forward on facebook, right. You get the one happy picture on vacation. You don't get the three days of arguing with the wife and kids, right? And also, you can take a facebook vacation. If this is - if you do the gut checking, you are like wow, facebook is just making me miserable, just try not to go on it.

SAVIDGE: Right. I suspect some people overinflate their stories or photo shop their pictures. But, that is another thing.

COHEN: Absolutely. This is Facebook is a - it's like a portrait, if you would. And you can paint that portrait however you want.

SAVIDGE: Right. Yes. Doesn't necessarily mean it's true.

COHEN: Exactly.

SAVIDGE: It's not just envy of facebook, it's also an addiction. And that is a real issue. And you can read Elizabeth's full article on line at patient.

Thanks very much for joining us.

COHEN: Thanks.

SAVIDGE: Home prices, they're up. Good news. And that is helping to boost home sales to a five-year high.

Alison Kosik joins us now from the New York stock exchange.

And Allison, you would think that lower prices would boost sales, but apparently that stop the case in housing market, why?

ALISON KOSIK, CNN MONEY CORRESPONDENT: Because what has been happening, Martin, in the last few years is really people have been waiting for housing prices to hit a bottom. And you know, there's nothing like watching the housing prices hit a bottom and then move back up as kind of a motivator to get out there and buy a home. So, many people are looking to really jump in and buy before they see those prices go any higher. So, it's that increased demand that's really adding to the rise in prices. Plus, you've got those historically low interest rates that are out there.

The average 30 year fixed mortgage rate is 3.66 percent. It was that in 2012. It's even lower than that now 3.25 percent. So, you have that combined with the slow economic recovery. You know, it's really been just enough to move the needle on the housing recovery. Also, helping prices there is less inventory out there, as we're coming out of the economic crisis, fewer homes are in foreclosure. They are not sitting empty for months like they were. So when supply goes down, and demand goes up, Martin, you get the higher prices as well -- Martin.

SAVIDGE: And Alison, what is the impact overall on the economy because of this news?

KOSIK: Yes. The interesting thing is you see this ripple effect. You know, you get more demand for, you know, building supplies and furniture and appliances and services like home inspectors and contractors and plumbers and electricians. So, all that helps, you know, retail sales, that helps move jobs. Plus, you've got all the mortgage payments. And those payments actually add to GDP, the national association of home builders says housing makes up about 15 percent of the total economy. So, the housing recovery is definitely having an impact on the overall recovery and that is interesting about that, Martin, you think about it, the housing crisis what got us into the economic mess in the first place. And it seems to be the strongest point or the bright spot that is kind of getting us out ever so slightly -- Martin.

SAVIDGE: And real quick, before you go, do we know who is buying? In another words, who is the person out there buying up the houses?

KOSIK: It is really the first time home buyers, also anybody selling their house and getting a decent price for it and moving. You know, obviously, you're not seeing home sales where they were let's say back in 2005, but they certainly are getting momentum again, Martin.

SAVIDGE: Any news in that front is welcome.

Alison Kosik, thanks very much.

And if you're looking to buy or sell, by the way, check out for the top ten things you need to know when buying a home.

Apple shareholders, they are eagerly waiting to hear how that company explains a 30 percent drop in stock prices in September. The first quarter earnings report will come out today. We're live from Silicon Valley in just a minute.

And there are apps for everything. Restaurants, parking, even for apes. Well, no apps about apes but for apes. How zoos are teaching apes with apps.

But first, if you're looking to save money in the New Year, there are six items you will pay less for in 2013. CNN's money team has found that flat screen TVs, solar energy panels, and ultra books are a good deal right now. We will explain why and what the other three deals are straight ahead.


SAVIDGE: If you're looking to make a smart purchase this year, here are six items you want to buy.

Flat screen TVs, the price of 50 plus inch models could drop by almost 11 percent this year.

Solar energy panels, once prohibitedly expensive have come down dramatically and could drop another 10 percent this year.

And Intel predicts that entry level Ultrabooks will retail for $599, that's $599 by the end of this year.

Now, if you're in the market for a car, well, consider heading to a used car lot. Prices are expected to fall several hundred dollars from last year's average price of $16,000. Gas prices are expected to be about 20 cents lower this year compared to last. And while airfares are expected to rise, vacation packages are being offered at deep discounts.

Well, something is happening to the Apple Corporation. That is not very Apple-like at all. The company's stock prices are down and continuing to slide. So you can bet the shareholders will be paying very close attention in a couple of hours when Apple executives publicly release their quarterly earnings report.

Dan Simon is our Silicon Valley correspondent.

And Dan, we are talking about the most valuable company in the world, and their stock down 30 percent since September. So, what can Apple execs say that will sound in any way good news?


Let's be clear, whatever Apple comes out with today, any company would love to have those figures. But the problem is, is the expectations for Apple are so incredibly high and there is a sense that they may not be able to reach some of the expectations that investors have.

As you mentioned, the stock prices down 30 percent since September, and there is a growing sense that perhaps the demand for the iphone and the ipad might be winning a bit. There has been some speculation that the tech blogs that suppliers for Apple, that Apple actually cut down the orders suggesting demand may not be as strong for the iphone 5 going forward. So, hopefully we will get a sense on the earnings call in terms of what the numbers will look like in the future, Martin. SAVIDGE: The quarter they're reporting on includes the holidays. And I'm wondering is that really a realistic time to gauge a company's health and how did Apple sales actually do over the holiday period?

SIMON: They did very well during the holiday period. And so you're right. So what we'll see, we'll probably see some very strong numbers for the holiday period, the question I think analysts and investors will have is what are things going to be -- what are things going to look like going forward?

If there is one knock against Apple, it is that they only come out with one iphone per year, one new model each year. And if you look at their competitors, they come out with multiple phones at different price points every year. So, I think analysts and investors are clamoring for the company to produce more products throughout the year that might appeal to different demographics, different price points throughout different parts of the world.

I don't think we'll -- Ted Cook will reveal his hand just yet, the CEO, during this call. But I think people will want to see maybe some kind of road map, not only for the iphone and the ipad, but perhaps other products that might come down the line from Apple.

SAVIDGE: Yes. Well, that was my next question is you know, we're used to them coming up with some sort of groundbreaking device. Can we expect something?

SIMON: You know, I think television is a great opportunity for Apple. A lot of people have been talking about that. Might they come out with their own TV in 2013? A lot of people thought they would have one this previous year, but it didn't happen. That is a huge area of interest according to the CEO, Tim Cook. And I think there will be a lot of questions about whether the company will in fact come out with a TV this year, Martin.

SAVIDGE: Yes. I think you pretty much guarantee them.

All right Dan, thanks very much. Appreciate it.

No matter what happens with Apple stock today, the company's ipads are a big hit with kids, adults and I can't believe I'm actually saying this, they are even popular with apes at the national zoo. This is an experimental program at the zoo, ape keepers let orangutans play with the devices for a few minutes a day, letting them finger paint and play electronic drums. Apps created for kids are the most popular, go figure.

Zoo keepers say the sound and sight and touch is good for the apes' senses. Humans have to hold the ipad since the orangutans have a habit of apparently smashing the screens by accident. Isn't that gorilla glass?

Anyway, there were no speeches, no parades or oaths of office, but Mitt Romney has a place of honor. His portrait now hangs in a small bank in Norton, Kansas. Romney has become the latest addition to the bank's museum of presidential candidates who ran, but lost. That does it for me. Brooke Baldwin takes it away from here - Brooke.