We also saw the fiveyear period i think this is interesting. 1. 62 for the five year period what was it like . A lot of whiplash going on. We are always looking at light volume. Again, we will be seeing a lot of up and down trading for the next few weeks. We will wait for the next fed meeting. Then all the speculators will be thinking the same thing, like they were. They were looking at a specific date. None of that happened. We will continue to see the whiplash for the near future. Liz i found it interesting that you said everyone wanted a part of this. Mark newton, what can we expect as we look toward the next meeting . We are still in a very seasonably bearish month. On a monthly basis, stocks are still quite overbought. I am a little more bearish, i think, over the next couple weeks. The s p still has a good shot at pulling back. Liz okay. Let me get to something that certainly matters to a lot of people. Oil dropping more than one dollar. What is that about . Major news in the middle east. I kind of feel like the guy left out with Everything Else going on. Crude did make a crazy move. We had that yesterday. We are near the end of the summer. That situation always seems to get bad. It seems, you know, this whole summer it seems to be holding up the whole world. Those cracks have gotten really soft. I think we are on the way to a big move. Liz we did see a big move. Thank you, gentlemen, very much. Retail earnings disappointments have piled up with two more names missing the market today. The stock reactions are not always disappointing. What are you looking at today that gives us a sense of consumers and retailers . Nicole today we are looking at two names that are getting hit hard. Right now, the s p 500 is flat. Here is a look at staples. Staples numbers came in. Lowering fullyear numbers and also taking down some of the other names that we know. Office depot, officemax. It is a huge, huge move. Target has been hit by the cost of their expansion over in canada. Many of these retailers are cautious for the most part, not rushing to spend too much on things that they do not necessarily need. As a result, we are seeing both of these names to the downside. Liz thank you very much, nicole petallides. Jpmorgan is under fire yet again. Day after day, the banking giant is under rocks. The federal Energy Regulatory administration. Let us bring in the man, kurt. He joins me in a fox business exclusive. Wonderful to have you. We appreciate you being here. Right off the bat, and importing question to address here is regarding the recent settlement, is there Something Else . Here lately, most of the attention, when it comes to pressure being put on business and enterprise, from a regulatory point of view has been from the ferc. They have been vigilant in looking at these practices. If you look at the settlement, one of the things that we know is jpmorgan did not admit to anything. They strictly settled. Quite frankly, you have to be careful with what is coming after that when it comes to a settlement and you add it thinks. As far as what the doj is looking at, are they looking at the same 12 trades, did manipulate the market space, or are they looking into Something Else . Liz lets clarify for people that are not familiar wiih it. Is this issue with energy, jpmorgan was accused of manipulating the price and then getting more money for energy that actually should have been a lot cheaper. The settlement had to do with giving back some of the energy to people, customers who paid for higher prices when they really should not have. Now, you have the department of justice. Are they looking at what the sec got from phil four file . We are kind of speculating here. You look at the prosecutor there. A pretty good record of being pretty tough on people. I would have to guess that they are looking at something around these traits. Getting information. They are going to delve a little more deeper into that. Jpmorgan, just kind of a financial point of view, they have made it clear that they are going to sell this business. Get out of this business. I do not see it having a huge effect on them as a bank. It is something that they have to Pay Attention to. When will the next shoe going to fall, that is problematic. Liz there are so many investigations against jpmorgan. Some international. You have the london well, you have the libor issues. The list goes on. 410 million to jpmorgan is about two days of trading profits. Yes. Well, you tend to move towards a settlement. I can tell you, would you have issues like this, you do try to settle, if you can. Settlement is strictly a tradeoff. What risks are identified right now by the attorneys for jpmorgan, i do not know. If they assert certain risk that they can offset with a settlement that is better, quite frankly, for their shareholders and investors, that is what they will do. Until we know more, it is hard to decide whether or not they will push for a settlement. Liz when it comes to reputational hits, is this a blow to the head, the heart or just a tap on the got . Reputational management is a big part of fortune 500 companies right now. When it comes to looking and being compared to enron, that is something that no one wants. You can believe that they are doing everything they can to avoid that. Liz do not want to be compared to enron. Thank you so much. A pleasure to have you here. Thank you. Liz closing bell ringing in 47 minutes. Internet for all. That is the vision. Mark zuckerberg launches a new initiative to bring the web to billions more people. People that do not have it in the farthest corners of the world. One of facebook partners in this process. We will talk to them. Plus, sonic. Showing its schools. In a most unusual way. We will show you how the fast food chain is cooking up a brand new way of attract and college students. Stay tuned. [ male announcer ] imagine this cute blob is metamucil. And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Liz liberty and Internet Access for all, that is the vision of facebook ceo Mark Zuckerberg. He has come up with hi this ideo bring Internet Access to about 5 billion people around the world who dont already have it. He announced the formation of internet. Org. I cannot believe that was not taken already. And next. Org has teamed up with bigname partners. One of them he picked opera software. Joining us now, big chief over at opera software. Great to see you. This is a fascinating concept, but lets get to how it all began. Does Mark Zuckerberg pickup the phone phone and call you guys or does he i am you guys, how does this come together for you . Thank you very much for having me. Yes, in fact it is quite exciting times, this is one of the most exciting and interesting projects we are involved. Actually so how this came about, we have been working for quite some time now with facebook. 81d trying to optimize the facebook experience on some of the handsets but it was a catering towards emerging markets. As you may know, they have been doing this for quite some time. We have a little more than 230 million users worldwide using this product. It is basically a web browser, but what is unique about opera mini is what is different from the regular web browser on your computer. Opera mini takes the web content, we actually download the content to our web server and we compress it down detectabltypically 10 of the wt and send it back to you making it much cheaper to access the internet. Liz the cost for five to you and people around the world, many in povertystricken nations. Is this realistic or is this the version of the hyperlink. A really big idea, formidable and altruistic concept but is it realistic to bring it to countries like africa, or others where only 1 of those nations are even wired . I do think it is realistic. It is not a walk in the park, it will not happen overnight. It will require industrywide corporations to furnish it and not just Public Sectors, but private sectors and the private sector and Public Sector working together to bring more people into the partnerships. But i do think is going to have to start somewhere. I remember when we are going down to a country like some of the asian nations and africa, trying to give them access to the internet, people were like how is that possible . We made it possible today, we have been doing this for 18 years, as i mentioned previously. Liz believe me, i love entrepreneurs. I applaud you guys, but is there profit potential here . Do you think so . Could you make money by getting a footprint in there, or would this be all gone profit . We are not a charity organization. We think there will be definitely a profit to be made, but it may not happen tomorrow or the next quarter, but providing internet and getting more people access to the internet, there is definitely a tremendous algae most people would agree and nut is probably the greatest invention of our time. So getting people to participate and cooperate, there is going to definitely be revenue to made and profit to be made for the ecosystem. So we believe so, yes. Liz we love the commercial with john f. Kennedy. It is inspiring. We wish you luck, we would like to tag along when you start wiring these nations and it is fascinating. Nokia, qualcomm, samsung all on board. We will be watching this, thank you so much. Thank you for having me. Liz getting the nod, good for them. The closing bell ringing and 38 minutes. Exclusive new reporting on the race for the fed chairmanship. Charlie gasparino will bring us the very latest on who might have the edge. Plus it is the talk of wall street today, talking about the fallout of the Goldman Sachs trading glitch and the potential risk of a melt down to the entire system of trading. Next we talked to the guy who literally wrote the book on highfrequency dangers but he is also out with a brandnew book on the Knight Capital collapse almost the same issue. Could this bring down the system . He is up next. [ male announcer ] these days, a Small Business can save by sharing. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Liz sources are telling the Fox Business Network that president obama is on the verge of selecting a brandnew Federal Reserve chief. Charlie gasparino as the real odds on who it is and how likely he will be to get the nod. Charlie i will lay this out, i would say a white house source person very close to the white house works on wall street, would describe it as a white house source plan the Fox Business Network the decision is going to be made who to get this job in a couple of weeks. In several weeks. I want to say several because it could last into september towards the end of the month. We understand that Larry Summers, the source says, is the odds on favorite. Let me describe the odds as it was described to me and why this is not necessarily in there yet. This is a very wellplaced source as 6040 there is summers gets it. It is not a definite, but 6040. The president think there could be another economic crisis around so he want to deal with somebody he is comfortable with. 6040. The one thing going on right now, the white house continues to vet Larry Summers did they look at his wall street ties. I think believe he joined the administration worked for de shaw. And that he did a lot of corporate work. He was an advisor to citigroup. They are vetting those relationships right now, that is why this is not 9010 or 100 done. It is the Financial Relationships they want to fully vet. I am talking to, they think he is going to get through it. A lot of people are saying janet yellen. Theyve tried to gain these odds for a long time. The vice chairwoman of the fed right now, Larry Summers a Senior Advisor to president obama, former treasury advisor, round economic circles for many years. You try to game plan these things and try to game the odds, who do you talk to . You talk to people who work on wall street who have firsthand knowledge and sources inside the administration and those are my sources on this. This guy is directly talking to those people and that is what they are relating to him. Liz to say he is here in new york, but theyr theres soa brainiac type of firm. This is a scientist. Charlie you would think they vetted that part already because he worked in the administration going through the vetting process. Remember, he did stuff after that, he was an advisor to citigroup, that is pretty kneejerk. Build out a systemically Important Bank that does work with, believe citigroup probably in the gm recapitalization. The government sold its stake in gm. Did he play a role in that . Who knows. When you start doing things with banks, it becomes tricky. They want to make sure they dont get stuck into something with this guy said something or did something particularly a confirmation hearing. The president selects the fed chair, the Senate Confirms it. This thing is coming down the pike, it is imminent in washington terms. Talking about weeks away. I would not be surprised if they did it before labor day. Why does he want summers . He feels comfortable with him in case there is another crisis. The next three years with obamacare looming and the fact they have to start cutting back and Larry Summers is seen as some recent papers faster than janet yellen, it will be an issue. Liz charlie gasparino, thank you very much. Appreciate it. The closing bell in 29 minutes. Could an electronic trading glitch like what happened yesterday spiral out of control and cause a market meltdown . Member the flash crash . Were hearing for from a man wo says the collapse of Knight Capital that was also affected by the trading glitch. How about giving your meal the Old College Try with some school pride. What a creative idea. One fast food chain helping you fly your College Colors in the most unique way. You have to stay tuned for this when we come back, stay tuned. She loves a lot of the same things you do. Its what you love about her. 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Competition, intense competition, and the mobile market was very interesting. How do they plan to revolutionize the market . We have seen weak demand, enterprise demand and pc demand. A lot to look at for hewlettpackard going into the closing bell. We will have the numbers for you. Nicole i went to the American University in d. C. Liz youre going to call up sonic and demand one for your own. So many kids going back to college this week and for the first time somebody literally has a chance to put their School Spirit where their mouth is because the driving and fast food chain sonic is launching a new line of burgers. And new line that have College Football team logos stamped on the bond. Theyre made from tapioca, so it is all edible with three usda approved food colorings. Sonic has struck deals with oklahoma, texas and louisiana and hoping for many more as the football season gets underway. Here is my suggestion. There you go. Go bears. That is right. We have to get the blue ink approved though. California golden bears, my alma mater. See a sonic sales get boosted in those areas. Goldman sachs, we told you about it yesterday, a large number of trading errors and the market yesterday. Potentially costing the firm more than 400 million. Does this remind you of anything . It should. It bears a scary resemblance to the errors that brought down Knight Capital just one year ago. They are much smaller, but how much risk is a market facing as electronic trading increasingly dominates the Financial System . With us now, edgar perez. Author of the new book, knightmare on wallstreet. You did this, the speed traders. This has been a good seller, especially since highfrequency trading has reared its heads with individual investors. Correct . Everybody involved in these traits. If you look at Knight Capital, they paid a high price for that. Liz as we understand it, a flood of erroneous trades, system programming error. They are not saying it is a fat fingered trade. How similar is this what happened at knight . Theres a lot connection with Knight Capital and goldman. Guess what, the days before this incident in both cases, knight and goldman, they changed systems. It was not tested full enough that they could be sure everything would work in practice b. On monday they made changes. They made changes the day before the implementation. It is definitely very clear. Liz in Knight Capital it really threatened the existence of that firm. They had to be bought out, and for a minute the whole thing could have gone under. Is it an overstatement to venture Something Like that could happen at Goldman Sachs . 410,000,002 Goldman Sachs again not very much at all in the grand scheme of things. A company that makes 3 billion per quarter. The only made 3 million per quarter. A huge difference between these companies. For Knight Capital, 440 million was much more than the position they had the quarter before. They are expecting to lose around 80 million, so really i would say a rounding error. Liz talk about the 30,000 feet picture here. The gigantic servers and algorithmic trades that enable some organizations to shave pennies and get that much more sort of a head start on trades, how is this dangerous to the world out there . If there is a smarter, better mousetrap, great, somebody should be rewarded for that, but is it dangerous to the market . I think it is a tool, well use that that tool can be very dangerous in the same way we drive automobiles and sometimes we have an accident. How can we avoid these . It has to be controlled, it has to have regulars looking at this to make sure this incident doesnt happen again and again. As you know there will be a change, they will be the last one to go ahead and these changes. Liz if there is a Silver Lining for Knight Capital, they were not bailed out. I was worried if an organization as big as one of the gigantic financials out there, this were to happen and really sort of spiral out of control for jpmorgan or a Goldman Sachs, i and everybody on the set and on fifth avenue, nobody wants to bail anybody out anymore. Could it come to that . We hope a role will be implemented. They would definitely have the own risk it shareholders would pay for that if theres any mistake. The shareholders paid the price for that. Liz highfrequency trading is a story that is not going away. I have to say, who did the cover art here . Scary. We did a lot of thoughts about it. It has everything. Liz everybody should go and buy this book. The closing bell ringing in 15 minutes. Were counting down to the earnings after the break in a moment we will ask a top money manager what he thinks meg whitman is likely to be a winner or loser with her turnaround plan. So far the stock is a winner over the past year. And some investment picks that many of you might have overlooked but shouldnt. The boys ed double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . Oh, you guys and with double miles you can actuay use, you never miss the fun. Beard growing contest and go win whats in your wallet . Liz the last time this money manager was on our show he said tech was redhot and recommended hewlettpackard. Just after the close shares up 20 since he picked hp queue. Over the past year it has done even better. He said look for areas now that are under loved but also under owned. Global Financial Private capitalist chief investment officers joining us from sarasota. Bravo when the hewlettpackard pick. What are you expecting . Yes, think hewlettpackard has done some interesting things. They are in denial of splitting up the company i think that potential stands. Liz into what pieces . I think the pc business would be a prime candidate. I like to see them get rid of that, and i also think the print business and the ink business would be one also where they can reap for the good profits from that. Although i know they are in denial about doing anything at the moment. Liz did in the former ceo suggest getting rid of the pc business . He did, it would have been very timely. Are you still adding to your hewlettpackard position, chris . We have cut it back by about 40 on tha on the because it wa since our purchase. Liz that is a great lesson for people to matter how much you love a stock dont love it so much you dont at least take some profits off the table. So cliche, but lets do it. How do you pick stocks . Right now as far as picking stocks, i really like things that are stupid cheap, unloved and particularly under owned. The last two or three years all you have seen is bad press about china. U. S. Up over 100 the last five years and china has done nothing. You can get 4. 8 yield and anybody who thinks the second largest economy isnt to move forward at some point i think his undress me what the chinese can do and the positions they have as they turned the consumerbased economy. Liz it scares people in the shortterm, but you say that makes it stupid cheap. So what is in it and why. Where is the opportunity if you look ahead . The opportunity as you get paid while they wait. Secondly the new chinese premier is doing a tremendous job as far as mending some of the problems they have had with seethroughs and bridges to nowhere and all that, plus a factory and half trillion in reserves. Granted they have some of the Major Chinese companies, china mobile and china oil and some of the banks. Yes, just like our banks may need some cleaning up but they have the resources to do that. Liz you like another chinese centric etf, correct . Yes. A consumer oriented one. Small caps if you can trust their accounting, which is hard to do. And the broadest one, also has a 4 or better yield. Liz now the individual means the end i hear about google and google sort of counterpart although google is not in china over what happened. But by do is there, they get a great opportunity for more action they are. You like that name. We do. They have performed very well, wellcome it was left for dead, people thought theyre going to lose their Internet Business and they really havent. They have grown and certainly china centric but that is pretty good. The other would be china mobile. Wait and see. They have been in china and i wouldnt be surprised they come out with something on a dual basis it looks pretty good for a cheaper iphone, a smart iphone. Liz i am not hearing you mention u. S. Names we had why . When you look at the u. S. Valuations, we have had a pretty good run. I look at it 18 times earnings and hard to find things that are cheap. Maybe defense companies. A few odd names here or there, but generally a good time to trim. Im not necessarily bearish. There is a downward bias until after labor day and when they are back on the desk we will see some turnaround. Liz thank you so much it global Financial Private, thank you so much, great to see you. A look at the market, so much for hitting a flat line. The closing bell in seven minutes. It may be a down day on wall street but are their names hitting 52week highs . Of course. Including big economic names might own or may want to own. We will break those down next. [ male announcer ] how do you get your boce . Im, like, totally not down with change. But i had to change to bounce dryer bars. One bar freshens more loads than these two bottles. I am so gonna tell everyone. [ male announcer ] how do you get your bounce . [ woman ] time for change [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Liz we are bumping against the closing bell we lost most of our gains in fact as we reverse, still 52week highs putting some investors we had look at Dreamworks Animation up 1. 66 . Lions gate right behind it. Not bad. Up 4 Percentage Points after very nice earnings numbers. Now we are waiting on hewlettpackard. Joining adam shapiro, w were getting ready for after the bell. Adam the stock trading into the close, nicole. Nicole listing the stock down went the close, a winner this year, in the midst of a turnaround, now we will see how the pc demand is. How they need to build revenue and cut cost. Liz sending shares of jc penny lower. Nicole a 20 page letter saying they have not done well with retailers. They have done well in other areas trying to justify some of the investments sang them i had to get out of jcpenney now. Adam teen retailers in the news. Tell us about this. Nicole it is one of those the teenagers are fickle but they came out with numbers weaker than expected, less traffic into the stores as well. Liz visa has been the beneficiary of a tough day for the overall market. Nicole this is all about the legal battle, the fees, now that seems to be back on the table once again. They may in fact be a beneficiary because they have rolled in a different matter as a result gains on this. Adam i know we will be talking about bank of america and financials later on. I want to point out they are up when others are getting paul dalby at any installation for many of the traders why they are doing well . Nicole worth taking a look at the Dow Jones Industrials are down triple digits. 45th day in a row here, the sixth day i believe it is. We have not seen that for 2013 at all selling one day after another. Liz we lost the gains that we got after the losses we saw on the fed minutes report. That of course is from the july meeting. Thousands on intraday charts to the lower right of the screen. We will flip through all of them but as the bells ring on wall street, the wall street got crumbled on the stock market. Dow jones industrials are than 18 points, at a loss of about 103. Triple digit loss under 1 . Losing half a percent, russell 2000 getting hammered to the tune of three quarters of a percent. The front page headlines come existing home sales jumping to the highest level in more than three years in july. National association of realtors said the numbers increased 6. 5 to an annualized rate of 5. 3 million units. Adam u. S. Consumer Protection Bureau found new problems with Mortgage Servicing at banks and other financial firms. It said in some cases launched investigations that could lead to enforcement actions. Liz you