3.6. lori? lori: we got our first dow 15,000 plus close today. let's break it down even further. we had big earnings movers on the session. directv jumping follow an earnings beat. the company saw better than expected growth in latin america. it actually grew subscribers here in the u.s.. >>. >> on the flipside first solar down almost 10%. the solar panel maker said a weather-related project delay would push most of its earnings into the second half of the year. so first solar shares down $4.2. david: while stocks were up, not so for gold. gold was a big loser in the commodities pits today. it fell $19.20, settling at 1448 an ounce. this is the lowest settle by the way since for quite a while. traders continue to be concerned about big outflows from gold etfs. in fact a couple of hedge funders we'll talk about coming up lost big, not only in last month but since the beginning of the year. some of them are down about 47%. holding in the spr gold trust now at a three-year low. not a good day for gold but a great day for the markets. "after the bell" staurts right now lori: today's action there was quite a bit of it, that's for sure. ira walker ubs managing director, senior portfolio manager calling for rotation into cyclical areas. we're hearing the beat of that drum louder and louder today. he will tell us what names specifically to play. dennis kneale standing by to report disney second-quarter earnings as soon as they come out due any minute. larry shover in the pits of the cme. larry, to you first, we got the dow 15,000 close today. everybody is piling into the stock market. the bullish momentum seems just to be building upon itself. what do you think? >> well i think we're all asking the wrong question, including me. for weeks and for months i keep talking about the next growth metric, the next catalyst. what is going to take the market higher when really it is becoming a very hollow question. i think bears need to look for a catalyst and there is no catalyst around right now. we're rallying on macro in europe and we're rally on central bank intervention. we're rallying on reasonable evaluations in the stock market. so we continue to grind higher. it is painful, it is tiring and it is confusing but that is what is going on right now. lori: in other words, larry, the lack of no new news, europe has been relatively quiet there is not a lot of economic news for it week. we're post-fed plans are for leading markets. why to your point and your phrase we're just indgrewing higher?. >> yeah. lori: will it take a headline catalyst to be a catalyst? >> yeah, compared to 18 months ago where every headline that came out of europe zapped our markets. right now the omp was the best invention in the last 12 months. that kept the calm contained, continental europe. we're not susceptible to all the headline risk. david: larry, i have to jump in here and cut you off. we have whole foods numbers. jo ling kent, what are they. >> hi, there. we just got whole food numbers into our newsroom. trading at .7 of what it came in as, beating .73 estimate. total revenue at 3 billion. stocks in late trading up 7%. that is the latest what we have for you from whole foods. david: we are seeing a huge jump in whole foods right now. we haven't seen it over 100 bucks for a while. it ended the day at 92.80. but the way, a lot of people are looking for a solid company that has been kind of slumping recently. the shares are down about 3% in the last three months. looks like they found it in whole foods? larry, go ahead. >> yeah, i'm sorry. yeah, they did. that stock has been laboring. consider this. in the last three years it averaged 10% beat over all its competitors and to say that, it really doesn't have many competitors. it is a great stock. has 340 stores. it has a lot of room to expand outside of the u.s. and the u.k. they're also looking at perhaps --. david: by the way, they just approved a 2-for-1 stock split as well. of course these things are psychological more than anything else. that may have moved the stock as well. go ahead. >> it could have very well but, boy that stock has been stuck in the mud when you consider all the consumer stocks have done so well. whole foods as you said earlier it has not gone on the gravy train. it is a great stock and company, the balance sheet is nice and fat. what kept it down it needs to continue 14 to 15 times forward earnings to keep the momentum. that is pretty fat. they have a very good balance sheet. people want to eat better. i love whole foods. a good company and a good stock. lori: larry, thank you for that. let's also ask ira walker. thanks for joining us. get the immediate reaction from whole foods. i know one thing sticks out, after-market bidding was higher but revenue was little soft. street was looking for 3.3 billion despite the nice beat on the eps. >> we like the market here. we like whole foods. we like the cyclical area especially we're trying to get away from the traditional stocks, proctor & gamble, johnson & johnson. they, consumer staple stocks. we're moving away from those stocks going into cyclicals right now. david: larry, it is very interesting. ira, i will get right back to you. i want to go back to larry shoaf very for a second. how much longer. we're hearing whole foods missed in revenue. how long can corporations post healthy earnings with good march inches about but no revenue or a miss on revenue? >> i don't know. i think it is all about momentum. people are suffering with the top line trends. they are suffering and revenue is suffering like you said. seems like earnings per share are beating --. david: doesn't the lack of revenue eventually catch up with the share price. >> yes, yes. consider this. we're not growing. we're 2% gdp seems like the stock market is okay with that right now. seems like for the time-being we'll continue to grind higher even though revenues are missing. that is not saying i would be fully allocated to stock market. i would not. however i wouldn't get out of the stock market either. lori: would shares of whole foods be up 7% if we didn't have such broad market strength right now? >> it should be up given the last three months it has been down and --. lori: by -- percent. >> consider what the rest of the stock mark competent has done, that is pretty poor underperformance especially when you --. lori: really splitting hairs, wow. david: ira, let's bring you back in. j&j, p&g, all of the double initial stocks that we have, ones with big dividends, the consumer staples, you're saying it is time to move away? they have had their run-up. time to hold onto them if you got them but not buy more and get into other sectors. a lot of etfs that you brought along with us that sort of represent those other sectors, i want to start with biotech. this isn't an area we haven't been focusing a lot of. it is going up but nowhere as much as consumer staples. ibb is a good etf if you want to buy into them. explain. >> absolutely. year-to-date ibb is up 26%. we like that sector right now. we think biotechnology is taking the market to this point and we do believe that biotechnology will continue to go higher along with as i said earlier, the cyclical stocks, like the oil drillers and the industrials. we do like whole foods and we do like johnson & johnson, proctor & gamble. we think that they have moved up enough and the new money is going into cyclicals. david: i understand. look for where the new money is going. by the way we have electronic arts numbers coming in. joe, what do the numbers look like -- jo. >> we're getting new numbers into the fox business newsroom. we're seeing 55 cents in adjusts earnings which is not exceeding, it is under the 57 cents that the analysts were expecting. stocks are late trading up about 5%. in terms of revenue coming in at 1.04 billion, which is in adjusted revenue which is just over the expected 1.03 billion. for electronic arts. david: by the way, electronic arts is riding on the coattails of disney. they signed a new deal with disney. they will spin off some of the lucas products disney bought into games. larry, what do you think of this? they missed on epa but after-hours they're trading up? >> trading up. the deal with disney is a really good thing. keep in mind the momentum they have had putting on to mobile phones, smartphones, that is very, very good for them. that offset all the turbulence the company has. they haven't had a ceo in a long while. a lot of layoffs. on the downside in addition taking games off facebook which they did three months ago. that is to the downside. all that is be a soed in the stock. it is very cheap right now. given top two things it is probably a pretty decent buy. lori: a lot of information thank you. david: ira walker, thank you so much for bringing in those etfs, appreciate it. larry shover we'll check in with you in a few minutes to see how the s&p futures close. dennis kneale is standing by. he is mr. disney. he must have disney in his blood at some point. lori: we do call him mickey mouse. david: he knows disney like nobody in the world knows disney. we'll check in with dennis as soon as number come in. lori: we're waiting for disney numbers due at any moment. stock hitting all-time high, 30 times a top on analyst goes behind the numbers whether it is time to add disney to your portfolio exonce again, today is 15,000 day, folks. 15,000 claim --! we can't emphasize that enough. home prices are rising and sales are rebounding. we have someone who sauce don't get too optimistic. these headlines are being driven by the federal reserve and ben bernanke and they're in the middle of blowing a new housing bubble. we want to hear from you about housing. are we in the midst of a genuine housing recovery or is it artificial and about to blow up? log on to faceboo facebook.com/afterthebell. we'll read your answers later this hour. ♪ . 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[ indistinct shouting, bell dinging ] .you'll busyour brain box. ♪ all onhinkorswim from td ameritrade. ♪ lori: okay, s&p futures are closing right now. we want to to back to larry shover with the pits of the cme. larry, obvious a huge day for the bulls, with the dow closing above 15,000 for the very first time ever. and you were saying we're asking the wronggquestion, if this market continues to grind higher, no risks or catalysts in the near term. what do we do from here especially if you have fresh money to invest? >> right now it is important to recognize that stocks are tired. that is important to remember. however tired tape doesn't mean one that will be for sale. to so -- so to answer your question, slow and steady did i is the pace. you'll never pick the reich sector or right industry at the right time. slow and steady. we see some momentum. growth has not collapsed but there is no momentum. we need something to propel us further. right now slow and steady. enter the market? in a broad portfolio. lori: one heck of a market. david: low slow and steady, dow at 15,000 long before folks said it was possible. lori: shares of jcpenney are baking higher after an unexpected announcement. nicole petallides on the floor of the new york stock exchange. this caught everyone by surprise. >> that's right. jcpenney closed down 3% on the day. we're watching jcpenney and we're getting preliminary numbers about latest quarter. the stock is doing slightly better in after-hours. interesting to note they're under new lip. numbers coming out, pricing market, all of that was under prior leadership of ron johnson. what you're seeing here does not represent what we're seeing in new leadership. despite the fact that the comp sales decreased approximately 16.6%. that doesn't sound good at all. they're blaming that at least in part to some construction activity. but overall, we're going to get these numbers total. that is expected to be approximately $3.8 billion. first quarter fiscal year, 2013 they anticipate sales of approximately 2.6 billion. but as i noted the comp sales are to the downside. we're seeing a decline. that is not good news. but we're seeing the stock trading higher. david: nicole, what exactly is going on? there is something going on with jcpenney. two weeks ago we get word george soros buys 7% of it, at a fire-sale price. >> right. david: shortly thereafter goldman sachs comes in with a line of credit, more than a billion dollar line of credit. then we get these preliminary results what is going on? is this a shake-up orchestrated by the board working in tandem with outside investors or what? >> really is highly unusual to see a series of events the way we have. everybody is rushing to save jcpenney the store within the store concept. seems to be only thing that the one thing to bet on for jcpenney. on the contrary it is a real loser. lori: we'll check back with you, nicole. maybe a kitchen sink play by jcpenney, to clear the decks. more breaking news. second-quarter earnings from disney. go straight to our colleague dennis kneale to walk us through the numbers. >> okay, guys, the mouse beating on both revenue and earnings per share which is a surprise for such a big company on a roll. 79 cents per share. was expected 77 cents. even that would be 33% growth over year ago quarter so it is better than that. revenue beating a bit. wall street want the ten.5 billion. revenues coming in 50 million higher at ten.55 billion. first headline shows studio revenue up 3.3 billion for the movie studio. 40 million than wall street was looking for at 1.3. that doesn't yet include the results of "iron man 3" which opened after the quarter ended. we'll see what that does to this quarter. we'll wait to see in the conference call at 5:00 whether the company decides to do anything to lift its forecast. i will look at other numbers to see if we can find interesting insights. lori: on the studio, i'm sorry. time for a quick follow with dennis. >> i want to talk to you about "iron man 3". as you mentioned it wasn't calculated in these figures yet. but huge, huge numbers. 175 million in last weekend sales. but before they released here, a week before that they released overseas. they brought in $500 million or more from overseas. >> yep. david: once, have those numbers been calculated into the share price do you think? or are those numbers going even much higher once -- >> with disney hitting you guys said, up to 30 all-time highs so far this year. a lot is going into the stock. not just for "iron man 3" but let's not forget disney turns the box-office into ancillary revenues with happy meals and toys and other products. we'll see that product follow-on. "iron man 3" is sequel to avenge gers and "iron man 2". it societies up thor that comes out in april. then captain america and then another vending gers. and the same overlapping strategy with the newly acquired "star wars" strategy where disney says 2014, or 2015 we'll have a "star wars" film every year with intermittent things and wall street is rather impressed with this machine. lori: let me get parks figures and resource. 3.3 billion up from 2.9 billion last year but shy of estimates which were around $3.4 billion. theme parks and resorts have been, also the disney cruise line, right, there has been a lot of optimism. this unit of disney. give me your take and analysis on that number, 3.3 billion. >> we have the closing bell at 66.07. the bid already is 66.11. showing after-hours traders are not so put off by the theme park small miss. 3.3 instead of --, theme park big business, still up, what double-digit percentages on a theme park business. they do an awful good job of squeezing costs in that business. the cruise line i keep waiting for disney which is so controlling about everything to have some carnival cruise line mishap on cruise. it never happens. that is very tight ship. david: they run a tight ship. that simple. >> yeah. david: espn, one of the best performers by the way. we're getting numbers that are staggering $1.7 billion. a lot more than they thought. you could deal with a miss on the theme parks if you get a $1.7 billion number on espn which is what they just got. >> right. espn benefiting from what revenue streams, not just one. abc owned by disney gets adds. espn gets revenue from cable systems and advertisers why it is awful good pulse point how businesses an consumers alike are feeling. i have to figure out what wall street expected because you could have 30% growth on billion dollar base. if wall street wanted you to have 32% growth they knock your stock down. they're very spoiled on wall street. lori: if you look at all the units that comprise disney what would you say are the best performers? what is really cranking? seems to me looking at the results we're not appreciating theme parks and resorts and cruise lines along with the espn cable networks. i feel like there is so much energy and focus on the studio side of things. there was john carter bust that stayed with disney for so long. >> you've got parks and resorts. i've got the percentage change on the revenue line for parks and resorts, 73% growth on parks and resorts. media networks growth, 8%. then you've got consumer products, 35% growth. interactive up 23% but still losing money, tiny amount of money, lost $54 million in the quarter. looks like they're really, the mouse is roaring here. what is not to like? that stock --. david: what is not to like is broadcasting. maybe they don't have to like broadcasting too much. broadcasting was less than expected. frankly broadcasting networks are yesterday, right. >> yeah. abc is a gnat on a elephant's backside over at that is one thing. but overall the company has been doing well. i thought the stock would head down today just because it has been up so long it is time to take profits. so far, and, yeah, so far traders are deciding the stock still has room to run. david: you could say that for the entire market on a day when we hit dow 15,000 and stayed at dow 15,000. very quickly. we've got to run. quickly. >> the fear that something will go wrong has been replaced by the fear that we're missing out on something going well. lori: we have much more on disney throughout the hour. keep it here. david: meanwhile, is the fed blowing a new housing bubble? [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim fr td ameritrade. ♪ fr td ameritrade. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. >> hello, back with more on disney earnings. i'm dennis kneale. here's a company that is operating with incredible efficiency in that revenues in the fiscal second quarter just reported, up 10%. operating earnings show up triple that, up 29% in that fiscal second quarter. net income up 32% on a 10% rise in revenue. free cash flow. that is the cash you have left over after you as a company pay for all the capital spending in the year, what cash you have left over. you can write off the spending on capital and reduce your tax bill. free cash flow more than doubled in the quarter too, a startling $1.58 billion, versus $335 million in the year ago quarter. so disney, it means that just minting coin, minting cash like crazy, far more efficient operations than a lot of big companies are able to muster. lori: what is the next company disney will buy with all the free cash flow i wonder?. david: dennis, great stuff thank you very much. >> okay. >> house prices posting biggest annual gain in march, jumping 7% from a year ago. recent data by federal housing agency said higher prices could be the result of the fed's interest rates, you think? could the bond buying create a new housing bubble or is it for real, this housing recovery? ed pinto, former fannie mae chief operating officer and -- you better believe he is thinking about it. on a day we see the dow 15,000, a lot of people wonder if the market sum ped up artificially. focus on housing. 15,56. some people at the beginning of the year said we might hit this toward the end of the year. now we get word home prices are up between eight and 10% over last year. why isn't that great news? >> well, what would be great news if house prices were going up in line with incomes and they're not. incomes are going up 2% a year. david: so that is the clue to you, that something is wrong? income is not going up to the same degree house prices are going. >> the only way house prices can go up nationwide is to have lower interest rates. that is what the fed engineered. the fed's goal when they set qe infin at this i call it back in september to drive interest rates even lower and drive house prices up. that's their goal. the problem those get capitalized into house price. lori: that was moye follow-up question. essentially you have a long period of low interest rates for a long time and allow sell is to increase the price because you're getting cheaper mortgage. >> the buyer is indifferent. as opposed to buying a car the monthly payment is the same but in reality they're taking bigger mortgage. lori: because of pending homes on the market because of pending foreclosures? >> there is and that is another problem. when a house sells everybody thinks like in the stock market, oh, well my stock is the would or my house is worth exactly that. the difference is the stock market isn't as leverage. if the stock market were to correct 20% it would be painful. most of that money is real equity. david: housing market is leveraged by the government. at least the stock market is leveraged by private investors. >> we learned that lesson back in the '20s and early '30s. we haven't learned it. david: the government is financing 90% of the new mortgages. >> right. david: of course the federal reserve is buying up all the mortgage-backed securities or at least most of them, overwhelmingly most of them. >> right. david: what would happen if the fed stopped buying those mortgaged-back securities? >> i think you've got, the fed stop buying those securities you have immediate drop in the price of the securities, which would create a problem for those who own the securities but also would drive up, the rate on mortgages. then if the fed started pushing interest rates up which it has to do at some point, you would have a double-whammy. what i calculated if interest rates went from about 3 1/2% to where they are today, which is to six which is not a huge increase which has to happen at some point in the next few years i think, you either have to have incomes go up a third, house prices go down a quarter, or loosen lending standard and the drum beats are going for loose err lending standards. lori: this sounds eerily familiar to 2007 and 2008. how do you think cycle will sort out? >> i think we're looking three, four years down the road having a problem because on top of that you have all these investors who are putting their money in buy to rent. well that is hot money. anytime you have hot money in real estate i get really nervous. again people who are looking for a return when that return doesn't pan out, they leave the market. that has a disproportionate impact on prices. david: ed pinto knows what he is talking about. he is the former chief credit officer for fannie mae. great to see you. >> thanks. david: well the new health care law is getting hit by another lawsuit. this time from small business folks who claim that the irs is being used for obamacare implementation in a way that could put them out of business. coming up we hear from a business owner who is leading the charge against the irs in a must-see interview. you don't want to miss it. ♪ . my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk worsening prostate symptoms; decreased sperm count; ankle, feet or body swelli; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, incrsed d blood cell count, headache, dirhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. very logical thinker. 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(screams) i'm really glad that girl stayed at home. vo: expedia helps 30 million trelers a month find what they're looking for. one traveler at a time. expedia. find yours. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it dsn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personaliz portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. david: 15,000, this is the first time in history that the dow closed over 15,000. did it by 50 points as well, 15,056. it is also the all-time high for a lot of stocks including disney which just reported after-hours. initially there was some thought that disney might push higher than it closed today. in fact after-hours it is trading down a little bit. it was a beat on the earnings per share but a little bit of a miss in certain of their goals, particularly with regard to parks, cruises. perhaps that was one concern of investors after-hours. these things change. as you see right now, since i began talking it is trading a little up from where it was after-hours. huge beat on revenues from espn which is really a cash cow. all of this is before they calculated in the tremendous success of the movies in particular what "iron man 3" has done. oz the great and powerful was pretty powerful at the box-office but nowhere near as strong as "iron man 3" which is grossing over $600 million worldwide. a huge day for the markets. a huge day for the disney it particular. this will be a very exciting week. once again the costs of unfolding health care law is snaring businesses throughout the country and some of those businesses are now suing the irs for obamacare provisions which they say could put them out of business. one of the plaintiffs in that lawsuit against the irs joins us now. dr. chuck wiley. he is ceo of inovar e-health advocates. doctor, thank you for joining us. yours, explain what your business is. a small business in missouri. exactly what do you do? >> i'm a small business. i am a physician. there are five physicians in my group. we have five offices, five nurse practitioners. we take care of patients. david: you have 55 employees working for you. you want to give them an insurance program on your own but the new health care law prevents you from doing that. why? >> because the bill was designed by the congress to draw states into it. so they set up the state-based exchanges. the incentive is to deliver a subsidy for the business mandate through the exchange. specifically written that way. the subsidy to the, to the beneficiary triggers a penalty to the employer. since 33 states decided not to participate in the state based exchanges, the irs decided, it could write law and rewrote the law to include the federal exchanges in that subsidy/fine proposal. this lawsuit hopes to stop that. david: let me tell the viewers. this isn't the easiest thing in the world to wrap your head around. missouri is one of those 33 states that decided not to participate in the state exchanges to sort of spare their small businesses from that business mandate, that either forces you to provide this big insurance package or pay a fine. however, the irs has said, even if you're not, in one of those state exchanges, you still have to pay a fine if you're a small business, right? >> that's exactly correct. it subjects me to $2,000 times 55, 110,000 a year in fines. i'm a solid citizen. i'm not a criminal. i don't need to be fined. plus it forces my employees to accept a more expensive benefit plan, the government plan, one full of regulation. and it is actually, less healthy of a benefit plan. david: now the government said, famously, president obama said if you like your health care plan, whether you're an employer, or employee you can stick with it. this is clearly an example how that is not true. >> it is not true. now i'm in a business. i'm a doctor. i take care of folks. so it is really going to be hard for me not to insure my employees. i will fight to the tooth and nail but my benefit design such that my employees will have incentive to become and remain healthy. if they do so they will have money left in their health savings account. so it will give them liberty to be, to keep themselves insured over their lifetime. david: okay. now even though this plan supposedly was going to prevent small business owners like you from paying that fine you would have to pay the fine, either that or offer an insurance program that you really can't afford. that means $1.1 million hit for you. can you afford that? could you hit, could you survive, could your survive with $1.1 million hit?. >> no, it couldn't. not at all. david: so your business and those 55 employees would be out of work? >> well, you know, again we'll fight tooth and nail to stay in. this is onerous. it is really bad. we need the suit to win, so we can be liberated from that. david: dr. wiley, let us know what happens. dr. chuck wiley, inovar health ad cats in missouri. thank you for coming in. >> thank you, david. david: lori, over to you. lori: a compelling case. you can't hold it or see it and completely unregulated but it may have the ability to shake the entire global economy. the latest on a big coin battle coming up. jcpenney releases a new earnings forecast and it ain't pretty. we'll have the latest details and show you how the stock is trading right after the break. ♪ . at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, weo whatever it takes to make your business our business. od. helping the world keep promises. >> i'm jo ling kent with your fox business brief. it was north record breaking day on wall street with the dow closing above the 15,000 mark for the first time. but it wasn't only a good day for the blue-chips. s&p 500 scoring its 10th record close this year. zillow shares jumping despite mixed third quarter results the company posted a larger than expected loss of 11 cents a share. on the upside revenue beat estimates at $39 million. investors seem to be cheering zillow's move to raise the full-year revenue outlook. americans seem to be growing more optimistic toward the health of the housing market a new survey from fannie mae show 51% of the americans expect home prices to rise within the next year. only 32% felt that way this time last year. that is the latest from the fox business network, giving you the power to prosper. s. david: the volatile cybersecurity bitcoin is grabbing everyone's attention on a day when the dow hit 15,056. we can't emphasize that enough. heavyweights like berkshire hathaway's charlie monger and microsoft chairman bill gates have also been interested in but from very different perspectives. here is what they told liz bit yesterday. >> i think it is rat poison. i regard it as deeply flaky. >> i think it is a technical tour de force but that is an area where governments are going to maintain a dominant role. david: different views. lori: that is what makes a market. so it is now about to grab the attention of the commodities, or already grabbed attention of commodities future exchange commission is considering whether the cybersecurity may fall under the u.s. regulator's purview. adam shapiro joins us. >> to keep this simple. there are two issues when you talk about regulating bitcoin to keep in mind. regulating bitcoin as simple currency. if i want to buy the dress from you, here is bitcoin kind of thing. don't worry, i don't wear dresses that is an example. we're not talking about that yet. that is already regulated. i will tell you in a minute why. then there is derivatives. the stuff that helped lead us to the financial collapse in 2008. nobody is leveraging or selling derivatives based on bitcoin assets, yet. two web sites are about to launch doing that. in fact coin starter was here on the 3:00 p.m. hour with cheryl casone talking about this there is one online as well. cracken.com. they're getting ready to do this. so the cftc is saying we want a role in this. bart chilton was on with cheryl casone and here is what he said about it. >> they're not just trading air and that is why i think it makes sense for us to give this a really good look-see and maybe get into regulating it. >> so as these sites, these exchanges begin to trade in the derivatives you can bet the cftc bart chilton will want to regular late. we spoke with the bitcoin operator and cofounder as well as ceo and vice president of the bitcoin foundation, charlie scharm said the bitcoin space is up to the wild west. up to you be as complyable as you can be. he also went on to say these regulations from the cftc on the derivative side and these will separate the boys from the men and my competition will have to get their ducks in a row. what he is talking about the fact in march, friendly u.s. government through the u.s. treasury department, the financial crime enforcement office fincen said, yes we regulate bitcoin essentially. they're money transmitting service which means you have to register with the u.s. treasury which is so what? bernie madoff was registered with the sec and we know what kind of regulations did for people there. but the other issue that this raises is now all of the bitcoin exchanges have to get licenses from the 50 states, all of their, whether it is their banking committees or their financial services committees to be money transmitters. so the regulation has already begun. whether you get your money back is another issue. one of the exchanges already went belly-up, $300,000 missing. david: ow oh. >> a lot of people very angry about that. david: between big brains like charlie monger and bill gates. >> even treasury i asked, people who lost their money in the exchange which closed who is charge? u.s. treasury doesn't know. david: adam shapiro, thanks very much. good stuff. >> we have breaking news, jcpenney releasing early guidance and it is not pretty. a top analyst weighs in. you don't want to miss this. it is moving markets after-hours. the very latest on what's up with jcpenney. ♪ . [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and ses data. split-second stats. [ indistinct shouting ] ♪ it's so close to t options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade ♪ from td ameritrade all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. david: we got breaking news on jcpenney, surprising the street with early earnings guidance and it is not pretty. joining us is btig. william, an analyst for them. bill, let me talk about first of all kind of the interesting developments we've had here just to sum it up for our viewers. first george soros announced a couple weeks ago that he would take a 7.9% stake. loan guaranteed by goldman sachs i fest it was for 1.5 billion. now we have this early guidance. what do you make of all this? >> i guess my takeaway i think kind of what the market is looking at too because it traded up slightly in the after-market, this falls within, not the official guidance but official guidance consensus was 13% negative comps. this is 16% negative comps. shows the company stopped bleeding, number of one. and number two they have $821 million in cash on balance sheet at end of the quarter three days ago so they're relatively liquid. this would help get the goldman sachs loan guaranty executed and sign and which gives them liquidity they need to in order to keep rebuilding. they have 500 plus stores, 20%. their square footage under rehab, being rebuilt in the last quarter. these negative comps are not true year-over-year. lori: the question is why surprise the street with unexpected earnings report? >> i think the reason why they're trying to keep ahead of curve here. lori: okay. >> at this point everyone is kind of taking a gloom and doom perspective on them. they want to keep ahead of the news fly. they want to get results out there. when you have a situation where you're talking to bankers about securing a loan in order to get ahead of any potential leaks or anything like that you want to inform the market on pretty broad basis. i think it is responsible for them to do that. news is fairly solid and fairly decent. david: you have two investment banks with really different views. goldman sachs wouldn't lend it 1.7 billion if they doesn't believe in its future. then morgan stanley can, maintains its $9 price target on the stock which ended the day at $16.40. so who do you believe? >> you know, at this point i think, if you look at it from a normal, kind of pure retail perspective, i understand morgan stanley's reticence about it. i think what goldman saks sees is the potential for the company to turn itself around or year or so past the 12-month price target the amount of capital it will provide will give the company the ability to really turn the corner. >> is jcpenney shaping it sell up to be a acquisition? >> i think that tough right now. they have certain assets others would like, i don't think the company as a whole right now is particular hay attractive candidate for takeover largely because they continue to lever themselves up. lori: $3.8 billion in debt. >> 3.8 billion and 1.7 billion more coming. as they lever itself out, this is not so much as a take-out by a turnaround. david: do you lay sinking of this stock at the foot of ron johnson or not? >> not necessarily. he tried to do too much all at once. the more measured approach from mike ullman is probably smarter given the addressable customer. kind of icarus, he tried to do too much too soon. part of that is good and will be retained because some of the stuff was quite positive but a lot of stuff has to be changed that he initiated. lori: what do you think the about many could mission where jcpenney apologizes for letting customers down and begs customers to return to their store? can it be effective. >> that part is good but need to follow up with discounts, coupons and other promotions that will make people think the apology is sincere. david: william, thanks very much. thanks for joining us. >> joining us last minute. >> thank you. lori: "forbes" is releasing america's most influential athletes. top five, we'll tell you who, when we go "off the desk". david: we ask you whether you thought we were in the midst of a genuine housing recovery or some kind of a bubble. we'll read your responses next. ♪ everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally diffeferent. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss oprcipal. we don't let frequent heartburn come between us and what we love. so if you're one of them peopl who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur we're not in london, are we? no. why? apparently my debicard is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announuncer ] when people talk, great things happen. david: time to go off the desk. "forbes" released america's most influential athletes in 2013. the list could surprise you. many top ranking athletes haven't even competed lately. coming in third places the fastest man in the world, hussein bolt. swimmer michael phelps is second. and most influential athlete, former new york jets quarterback tim tebow. wow! where is he now? lori: no joke. we asked you on facebook if we'red in mitts of real housing recovery. brian says on facebook, nope. this is investors renting or speculating. david: michelle on the other hand wrote in to say think this is a real housing recovery. i think increase amount of properties going under agreement. i think subsequently closing on a daily basis and they are real numbers. we certainly hope so. lori: interesting indeed. david: what is happening tomorrow? lori: my pleasure. number one thing to watch will be tesla earnings. those are out after the bell. so catch them here. investors will watch closely as elon musk the company will be profitable for first time ever. earnings per share 4 cents. revenue, 496 million. david: the question tomorrow do you believe in tesla? "money" with melissa francis is next. lori: have a great night. melissa: all right. we are starting off tonight with some breaking news. fox business's rich edson just wrapped up a broad based special one-on-one interview with house speaker john boehner. let's go to rich in washington, d.c. rich, what stood out to you? >> we talked taxes. we discussed entitlements. of course that debt ceiling fight, the biggest one of the year. the house plans on passing a bill that would soon allow the treasury department to prioritize debt payments white house minutes before interview the president would veto saying it is up to congress to pass a clean increase in the debt ceiling. we asked the speaker about that white house veto threat. >> you know the president can say this but you know, he is the person who, when