Ahead, those small and midsized stocks there. Liz here is a look at the front page headlines. Commerce department as david mentioned retail sales, they did rise. It was not a contraction. It rose 4 1 2 . But it was weaker than economists expected. There was a bright spot. 04 . Auto sales rose. Chinese executives are accusing executives from blacks grabs bribing, government officials, medical associations and to bolster drug sales in that country. The company is aware of the allegations and it will cooperate with the inquiry. Liz jury select hundred continues in the trial against former goldman. Fabrice tourre. He is formerly known as fabulous fab, about a scheme that ultimately cost investors about a billion dollars when the Housing Market collapsed. David oracle ended the day up more than 2 . Liz investors watching for more possible telecom deals after at t said it was buying leaf wireless for 15 a share this cash. They will take the leaf cricket brand name and five million subscribers. David t. Rowe price, the Third Largest dell shareholder says it will not support the dell deal put forward by Founder Michael dell. The firm says the proposed buyout does not reflect the value of the company. After the bell starts right now. Liz we greet david asman back from vacation with records on the s p. David thank you very much for that, to all the trade years we have david lutz, stiffle nicolaus managing director closely watching Central Bank Policies and has twoways to play the market. Ira epstein in the pits of the cme. Ira, david asman made the point correctly. People view the retail sales miss as a positive. That means tapering is put off on the calendar a bit further . Every time we get a piece of date that that just isnt right the traders look at it, ah, Interest Rates will not really go up that quickly, these markets take off in one direction, and that is to that upside. Weve been doing what, 10, 11 days in a row now . It is nonstop. You dont hear the screaming in the pits that you normally do. I wonder if the volume is there. David that is a key indicator. We have to have a screaming indicator on the list of indices. Ira, do you think Interest Rates settled in that mode where theyre at . You know its a great question because one of the things that happened i think when Mortgage Rates went back up to 4. 4, 4. 5 i think it scared the fed. I think thats when bernanke came out and made that statement if you will and put us all back. You will see those rates ebb a little bit right now. The fed learned something. There is the sound we want. I think theyre settling in. There will not be a surprise when the fed eventually does begin it cutting back. The market is building that in. Liz im looking at nyse volume, 558 million shares on the big board. That is now, now 559. You know, ive always, i always laugh when people bring up thin volume. Weve had thin volume for about two years now. It is thinner and keeps getting thinker as we know because where are the traders. It is the dull days of summer and we know that were not expecting a big run. When i have lunch here at the exchange i dont see the amount of people you do in the fall obviously but you dont take it away from the market. If that is the new norm, thats fine. Were still going up. Now the market is reversed, sell may, go away, made higher highs. We have a trading bottom in place, those june lows. The sell may go away worked in a historical basis, sell may to the end of june. I was surprised to see it go up on a new high. Now that it has on breaks that will be upside buyers. David david, now this is the big question of the day. How can markets behave so well when were so close to a Economic Contraction . It is like you were saying at the top of the show, bad Economic News right now is the good for the market. The bernanke put david let me start you right there. There was a moment the market thought a month ago, bernanke, even if he continues to do as he has done that is about as much of a boost the market is going to get. There was a focus on the consumer. The consumer is not spending as well as we thought the consumer would be spending. Is the consumer totally irrelevant to the market right now . The consumer relative to the market. Homebuilders is big things driving the market higher. That is why ira is dead right, the fed is watching closely the Mortgage Rates. You know what . If the Mortgage Rates keep spiking up that is massive headwind for the homebuilders an massive headwind to the rally for the market. You know why . Because the consumer. I have friends that were Mortgage Brokers they were doing refis hand over fist a couple months ago, people were cashing out any kind of cash with the home. Locking in lower rates. Increasing their discretionary spending. If all of that is starting to reverse that will be a big headwind for the consumer that is one of the risks to the market rally this year. Liz david, make our viewers some money. Where do you think the next trades will lie, say throw it out, next six to eight months . I think well continue to see strength in the u. S. Dollar because even though ben bernanke has kind of pedal ad way from a the lo of tapering talk, the fed is in the process of tightening monetary policy. Liz how do i trade on that . Do i buy etf long . The etf to buy would be the uup. Uup is dollar etf. Dollar goes up, the uup goes up. The other risk we have if Interest Rates stay flat where they are, there is so much money left in the dividend names a lot of places where yieldseekers were hiding were reits. Ytr was the reit etf was clobbered about the last month t lost 16 of the its value. A lot of dedicated reit players are buying down hire. We see a lot of pain coming off the Interest Rates higher now that they are starting to ebb into a trading pattern. So were starting to see flows coming back into the reits. But that david let me stop you there. That is a bet that Interest Rates have topped off. That they will remain stable or perhaps go down a little bit. What happens if we they go in the other direction . I imagine well have another big selloff in reits, rye . You would have a big selloff in reits. You would have a selloff in Consumer Staples and selloffs in telecom names if rates jump higher. I think you said the fed put a cap on rates. There is no volume in market not because of a summer month but ben bernanke will speak wednesday and thursday, in front of congress. Everybody is hanging on every word and enunsy ages that ben says. We have an expiration on friday that would capture loft move. But a lost single stock players are either on the beach still for a threeday weekend or waiting to see what the bearded guy has to say in front of congress. Liz david was ira was right on volume and i was wrong. Ira well check back in with you to see how futures close. David, thanks for your energy on the show. Thanks for having me, guys, i appreciate it. David todays retail sales data stunned economists. Well talk to one forecaster who changed his gdp prediction. You woken believe how weak he thinks growth will be. Liz two more banking heavyweights set to report earnings this week. One of them tomorrow before the bell. Should you buy ahead of those results . Weve put in orders. Weve got your financial earnings playbook. We would love to hear from you. Jury selection begins today for the trial of Goldman Sachs trader, the fabulous fab as he was known. Do you think higherups should also be held responsible for big problem trades at the gigantic financial . Log on to facebook. Com afterthebell. Were going trailed your answers later this hour. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Yoll bust your brain box. All onhinkorswim from td ameritrade. From td ameritrade. 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. Axon 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 dy 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 of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Comm side effects include skin redness or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. Pcentury link provides reliable yit Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Liz investors are showing their appetite for foodrelated stocks. We head back to Nicole Petallides on the floor of the New York Stock Exchange. Nicole . It is pretty evident here that foodrelated stocks were certainly hot to trot today. Take a look at some of the names here. They are familiar to people at home as they hit new record highs. As we saw the markets, right, you dinse, it wasnt one of the days they were buying everything. It was a mixed bag. Pepsico up half a percent today. Whole foods, general mills, tyson foods. How about names like smuckers. We all know smuckers for their spreads at and the like. Cal maine, Specialty Eggs and hershey and company. We saw the group do very well. This type of group will perform well even in a tough economy because people need food regardless, right . It is amazing how the group has done so well and hit record highs today worth noting, liz and dave. Liz all record highs are worth noting. I love to see those. Thank you very much, Nicole Petallides. David well go right to your guest. Liz lets talk about what are the real opportunities in the markets right now . People have been watching financials lately because earnings look pretty good. Granted it has been two major names, jpmorgan and wells fargo along with citigroup today. All of them have Beat Estimates but later this week well hear from the heavyweights, Goldman Sachs and other big names, bank of america. Bank of america is on wednesday morning. Goldman is tomorrow before the bell but what should you buy and what should you put orders in before the results . We know the market is closing. You can still put orders in for goldman if you feel like it. Here is eric wasserstein. , suntrust analyst. Would you buy before goldman earnings before the bell . I know that is a very direct and pointed question but that is what our investors want to know. Im neutral rated on goldman here because i think it is fairly valued. So the short answer is no. Liz if they bust out with numbers would you expect to see selling because theyre fairly valued and people sell on the news. That is often the trend helping into earnings. Jpmorgan you see a runup in the name heading into it and they kind of sell on the news here. I think for goldman and a lot of Capital Market sensitive stocks the story is macro and macro is going sideways rather than getting better. It is hard to see where the earnings upside comes from these days. Liz we know Interest Rates not necessarily at historic lows but around historic lows. Wouldnt there be more opportunity to trend that slightly a couple of degrees hire than versus sideways . We would certainly hope so but we havent seen the demand component there. The issue remains with a lot of macro uncertainties and fiscal issues outstanding and debt ceiling whole debate and we see how that translates into uncertainty on Small Business level where a lot of Credit Demand exists were not seeing demand for credit as we hoped. You would not see the Balance Sheet expansion as you typically see in this stage in the cycle. Live and breathe earnings names, pick out two things you focused upon most laser sharply . Sure. Right now i think the big focus is whether theres topline growth. What is going on with expense control and what do credit losses look like and i think what weve seen so far, past several quarters and quarttory date the top line story remains pretty tepid. The cost control story remains very good and Credit Control is better than we would have thought. Liz do you look at fixed income . Do you look at the lending numbers . What pieces of data from the Earnings Report really available to everybody, all the viewers do you zero in on . Right now i think that the within the Capital Markets space there is a lot of focus on equity and fixed income trading as a results back of this quarter. First quarter was very robust. Second quarter was big. You had a huge backup in june the question was how much of a decline was that. The expense issue is one were focused on. Liz bank of america coming out this week. Any expectations there . I think my number is slightly ahead of of the consensus but i dont think that is necessarily a bullish stance because their overall earnings power remains pretty constrained. The big issue for them, there is this massive outsized mortgage exposure, Legacy Mortgage exposure. It is elevating their costs liz is that all countrywide . A large part of it, yeah. Most of it is. Most of it is. The issue for them, how quickly can they bring in servicing costs next quarter. Liz give us your favorite names. Youre neutral on goldman. Dont sound too excited about bank of america. Who are you excited about . Name im most bullish on is citi who printed today. That story in my view is operations leftrage. Revenue largely from overseas even in face of some of this emerging market volatility. Liz overseas business for citi is fascinating to me. I often said, not many banks in america that are based here you just airdrop into moskow and there is a citi group right there. That is where they have the real advantage, dont they . Their exposure across the world they built up over 100 years. Took a long time to get there. It proved to be in this environment a very sustainable revenue line. Liz anybody youre worried about . We did cut numbers a few times actually coming into this quarter largely on shakier Capital Markets expectations. So far from jp and citi it is coming in better than expectation, the trend line is still down but Overall Results are better. Liz well watch the numbers tomorrow on Goldman Sachs and later bank of america. Good to see you. Thank you very much. Liz david . David i eat five hour energy. You eat twinkies. There is partiallyeaten twinkies. There is a truck outside force feeding them to us. David austin, you would like this, right . Fed governor Daniel Turullo sounding off two days before Federal Reserve chairmaa ben bernanke gives marketmoving testimony on capitol hill. Well show you how turullo statements moved markets today. Liz we asked one economist why he decided to change his growth domestic product Growth Prediction . When we say change we mean cut pretty dramatically. Whether there are more shocks still in the pipeline. Well ask you so you can be prepared. David it is time for a quick speed read. Some of the days other headlines, fiv Financial Sector surpasses the technology as the most profitable industry. The tech sector has been consistently the most profitable part of the u. S. Economy since 2008. The. Adidas suspended hits contract with tyson gay after the former sprint champion tested positive for banned substances. Tyson gay said he will pull out of World Championships in moscow next month. Hewlettpackard increased number of directors to 12. They include the former chief executive of mcdonalds. The former chief executive of Liberty Media and a former microsoft executive. Apple reportedly signing up samsung for the new chips for its new iphone. That is ironic. The south korean giant will provide chips starting in 2015. Apple is hiring new talent to tackle problems with new i watch. The device may not be available until the end of 2014 that is todays speed read. Theyre close, if there are problems with it, it actually exists. David dont give us a buzzer. Liz somebody steal the picture of it. Well put it on. David that would be fine. Liz no, dont steal. Federal reserve governor Daniel Turullo taking questions during a breakfast in washington, d. C. The topics included higher impacts of National Requirements for banks and the feds tapering plans. David rich edson is in washington, d. C. With more what the fed governor had to say. Rich. David and liz, fed governor Daniel Turullo said governors are balancing new requirements insuring banks will have enough time to implement them to have a minimally effect on the economy. Banks warned that the capital standards could constrain economic recovery. He discussed the Bond Buying Program promising even when it begins to pull back the fed will feature a highly accommodative policy. As for when to begin pulling back, tour rule low says he is looking into sustainability in economic growth. The he question i will be asking myself as we come up into the next several fomc meetings. What does the data say about whether the you know lying momentum is enough to say positive growth through this period or to what degree the fiscal constraints risking again that kind of back sliding weve seen each of the last three years. Tarullo weighs in on a Senate Proposal to reintroduce glassstegall that is the forced separation of commercial and domestic banking. Tarullo is skeptical about it and that it is not high on his list to implement. Back to you. David rich, thank you. The sec lifting an 80yearold ban on advertising for fundraising. Are we about to see startups offering private equity offerings on facebook and twitter . The man who fought the battle for lifting the ban joining us next. Liz weakerthanexpected Economic Data triggered fears of slowing economic growth. Coming up a guy who absolutely thinks that is the case. He is an lpl economist. He is is cutting his Second Quarter forecast and see what i was behind it. You have to see how hard he is cutting it. My name is mike and i quit smoking. Chantix. Its a nonnicotine pill. I didnt want nicotine to give up nicotine. [ male announcer ] along with support, Chantix Varenicline is proven to help people quit smoking. [ mike ] when i was taking the chantix, it reduced the urge to smoke. [ malennouncer ] some people had changes in behavior, thinking or mood, hostility, agitation, pressed mood and suicidal thoughts or actions while taking or after stopping chantix. If you notice any of these, stop taking chantix and call your doctor right away. Tell your doctor about any history of depression or other mental heah problems, which could get worse whiltaking chantix. Dont take chantix if youve had a serious allergic or skin reaction to it. If you develop these, stop taking chantix and see your doctor right away as some can be lifethreatening. Tell your doctor if you ha a history of heart or blood vessel problems, or if you develop new or worse symptoms. Get medical help right away if y have symptoms of a heart attack or stroke. Use caution when driving or operating machinery. Common side effects include nausea, trouble sleeping and unusual dreams. It feels wonderful. I dont smoke. I dont smoke. [ male announcer ] ask your doctor if chantix is right for you. Liz time for a look at todays market drivers. Its a sea of green on wall street with all three major indices posting gains. The s p 500 closed higher for the 8th day in a row. Yes, that is the longest winning streak in four 1 2 months. The nasdaq recorded its longest stretch of gains in nearly two years. Utilities and financials were the Top Performing s p sectors. Conversely we have retail sales. They climbed less than expected in june, latest sign of a slowdown in economic growth. Sales rose. 4 of a percent in growth lifted by demand for autos and higher gasoline prices. After rallying 5 last week. What a week it was for gold last week. Gold added to the gains. For the fifth time in 6 sessions ending up to 1283 a troy ounce up 6. David the Securities Exchange commission remove ad decades old band that kept companies from advertising for Startup Companies. They will be able to post ads on facebook and twittory raise funds. Will we seen be awash in lawsuits by all the naive investors out there . We have the Legal Counsel for the milken institute. He has argued long and hard for congress to lift the ban. Daniel what tipped the scales . Was it higher unemployment figures . Listen, finally action in washington, d. C. Related to the jobs act. In a vote last week, 41 of the sec commission they finally voted to lift the ban on general solicitation this was more than a year overdue based on the congressional deadline they were given. David what tipped the scales, daniel . Was it the fact that unemployment stayed high . A really a lot of Pressure Congress passed the law and you specifically said you have 90 days to lift the ban. And sec finally responded to do that. David well look at details and how it will affect what were talking about, crowd funding, et cetera. How will it change things . For example, a the lo of people will say like when we saw all the lawyer ads on television appear. Are we going to see, is it going to be that obvious to most people about this change . Well this is a pretty dramatic change to securities laws. As you noted for the past 80 years weve had a ban on Mass Marketing or Advertising Private security offerings. For the first time Startup Companies, local momandpop restaurants, or even hedge funds and private equity firmses will be able to use the internet and social media, things like twitter and facebook, to advertise their securities offerings to the general public. I do suspect that Many Companies that utilize this new mechanism are going to do so through investment platforms that are available on the internet that help to facilitate transactions and give some kind of credibility to the posting 6 an offering. David we are talking potentially about hundreds of billions, maybe trillions of dollars long term in terms of new funding that could come into these offerings. Scott purcell, chief of fund america, says crowd funding will turn out to be bigger than the internet. Im quoting him. Do you go that far . I dont know i would say it is bigger than the internet but it certainly leverages the internet. And let me give you some statistics here. Last year in 2012, 1. 7 trillion was raised in private Capital Markets versus 1. 2 trillion in public markets. If you live this band on general solicitation and allow for mass advertising of these private offerings to accredited investors, these are High Net Worth individuals you can imagine how much more capital you which bring to the marketplace. It certainly has the potential to provide a lot more capital to american companies. But at the same time, what you are doing is opening up a new window. Whenever you do that, there are always concerns about the Downside Risks some investors may face. David you mentioned one of the restrictions in passing there. The fact that you have to have a certain net worth. So do you think that will eliminate investors who come in and say, hey look, i was misled by this ad . Some people are warning well be awash in lawsuits as a result of this. That is the great question out there and here is how i see all this playing out. By law the definition of accredited investor can not change until 2014. So when the sec voted to lift the ban on general solicitation they merely proposed but have not yet adopted a whole new set of Disclosure Requirements and investor protections. I think what well do here to see how the market develops and see if by the end of the year, potentially into next year if things go well there wont be much political will for the sec to implement additional regulations. If we do see mass fraud the sec will likely clamp down. It is kind of an interesting dynamic where we have a bit of a laboratory in front of us and really see how things play out. David it might not be fraud either. There mighting wellmeaning young on the ons who are entrepreneurs new to the Business World who kind of overstate their potential. It might not be that people are actively trying to defraud the public, it might happen because theyre naive, the entrepreneurs are naive . There is no question were talking about Startup Companies and Small Business there is are tremendous risks. One of the things the sec assumes by not requiring additional disclosures for accredited investors is that they are sophisticated investors and that is what will be put to the test here. Once we open the door and mass market all the opportunities, the potential to invest in the next facebook, two accredited investors who maybe havent participated in private markets before well have to see how sophisticated they truly are. I do suspect if a lot of these offerings are done through online investment platforms that have a vested interest in making sure that disclosures are clear that what youre invest something in highrisk, we might be able to mitigate some of the potential for investors to feel like they were duped or didnt understand. Listen, at the end of the day all the companies have to abide by fraud laws and can not issue false or misleading advertisements to draw investment. David right. Misleading is in the eye of the beholder. You know how that works out. Always ends up in court. By the way, liz loved this. David even american psycho, the play is open for crowd funding. Even plays on broadway will be crowd funded, huh . What is interesting about that, when youre talking about crowd funding or accredited investor funding and using the internet every sector could be touched by that it means whether arts and entertainment or the next startup or a local bakery all of these are fair game for utilizing the new capitalraising mechanism. David is capitalism. Why not . Why not. Daniel, thanks very much for coming in, we appreciate it, from the milken institute. Thanks, guys. Good to be back on. Good to see you. Liz its a upper is surprise for the economy, not necessarily a welcome one. The latest retail sales are sending economists back to their calculators. Were talking with one who revised his outlook and you wont believe how low is going . David the pacific rim barely made a ripple at the Weekend Box Office even know they spent hundreds of millions making it. Are budget battle movies capable of winning audiences . We go inside the hollywood movie wars coming up next. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doest think youre special anymore, you need an ally. Ally bank. Your money needs an ally. Time for your fox business brief. In the heat of the summer driving season, travelers are feeling pain at the pump. According to aaas daily fuel gauge, the National Average for a gallon of regular gasoline now stands at 3. 61. That happens to be a sixcent jump since friday. They are moving their stock listing from the nasdaq to the New York Stock Exchange following in oracles footsteps the company says the transfer will help it maximize, quote, shareholder value. Xar. Will trade under current ticker, july 2th. Spanish professional soccer Club Real Madrid scoring the number one spot on the top 50 most valuable sports teams. According to forbess the spanish hower house is worth 3. 3 billion. The new york yankees sliding into fourth place with a value of 3. 2 billion. Thats latest from the fox business network, giving you the power to prosper. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everim with scottrade. Me. announcer scottrade. Awarded fivestars from smartmoney magazine. David after lower than expected june retail sales, some economists are lowering their gdp forecasts for the Second Quarter. One economist is taking it down to sub 1 level. Liz what does that mean . Is the r word around the corner. John kanaly is the one who is downgrading this. Get to the heart of your most recent call. The downgrading of gdp. Where were you at and what are you going to . We expect to get gdp to 2 for the whole year. Liz okay. The First Quarter was 1. 8. This quarter was tracking closer to 2 but the last couple of reports we got on the trade deficit in may, this morning on retail sales and today on business inventories as well pushed that i think below 1 and below 1 . When you average those 2 , that is below 2 for the first half. That implies to get to our forecast you have to have a bert second half and yet i dont really see a better second half either. David all right. Lets talk about specifics here though. It is not surprising that things like cars, that depend on low Interest Rates for sales are doing so well where other things are not. What kind of nonessential items, this could lead investors to decide what companies to invest in, are doing poorly now or more poorly than we expected . You know, i think what, consumers are feeling the pinch of, the last couple months is that the payroll tax hike that we all felt on january 1st. Some others got a bigger hit from increased taxes, increased federal taxes as well. And then lately weve had, as you noted earlier, rising gasoline prices and then this latest rise in Interest Rates. All of that is squeezing the pie, if you will and people have to give some things up. So the probably will go out and replace that seven or eight or nineyearolddcar but they might not go buy a new, a new electronic products for example. So those kind of discretionary things may be getting squeezed until there is some relief from lets say Lower Oil Prices or perhaps even a better reports on the job market. So youre getting squeezed from a number of different areas. That is probably not going to let up here certainly until we get a drop in oil prices. So i think were in for this kind of a squeeze for the next couple months at least. Liz were still sub 4 a gallon in most regions. Nonetheless when youre talking about might get squeezed what else so people know . Some people are making stock decisions what they believe. If they agree with you, do you think the casual dining space will get hit . That is an area people can cut back on. You can get away without going out to dinner a couple times a week but you really have to put gasoline in your car to go to work. That is one area where you might see some squeeze there. Remember this retail sales report that we saw today really only take as very small snapshot of what we it excludes a whole bunch of things like the service sector, things were spending on haircuts and dry cleaning, things like that. Those things you can kind of stretch out for longer and longer. You dont need to take the kid to the theme park maybe twice a summer. Maybe once a summer if gasoline prices, those kind of things, those really lastminute discretionary type items that you might have to put off if you continue to get squeezed like this but basics, the things you have to do to survive each day are david so, john, were coming up to earnings season here. How is all this going to reflect on earnings . Are we going to see a pretty poor earnings season and how will that affect your forecast . Expectations are very low for this years earnings season. Only maybe a two or 2 1 2 gain for the year earnings. What typically happened in last couple years as we see those estimates be beaten on average two, 2 1 2 when all said and done. Youre looking 5 gain in earnings yearoveryear. Surprisingly you might get the best performance out of the Financial Sector but a lost other areas are being impacted by things like, a rising dollar which sort of put as crimp on overseas sales. And the fact that, Interest Rates in a lot of sectors are up as well. And that is hurting. So i think the combination there is, it is not going to be a great earnings season but the positive is that the bar has been lowered a long way. So it is not that hard to jump over it. David john kanaly. You know how long it took us to remember to pronounce your name right . We had to get three different pronouners in there. Hope we got it right . Kanally. I hope you get it on the paycheck right. Liz with all due respect we thank you for coming on. David hope against hope, john. Liz call it not the dead zone but the dud zone. Pacific rim gets torpedoed by less costly rivals. Is this summer a turning point for hollywood . David mystery solved. Author j. K. Rowling is at the center of some Book Publishing trickery. Details next. David theyre calling it the dud zone. Summer films with huge budgets flopping at the box office. This weekend a new film joined those dreaded ranks. Liz Dennis Kneale on the story. He join us with the painful details. Dennis. Liz, pacific rim had a lot going for it in the summer of blockbusters it. The Warner Brothers flick is one of 20 big releases that each cost over 100 million to make. Had lavish special effects and monsters fighting with giant transformerstyle robots. What is not to like. Pacific rim finished only third place at u. S. Box office. 38 million. Yet it cost 180 million to make. Marketing pushed it back to 200 million a week. Pacific rim getting bested by foulmouthed comedy, grown ups 2 by sony. Comcast universal, animated sequel, despicable me 2, finishing the number one at the box office for the second week in a row for almost 45 million. Where does that put us in the dud zone . Summer flops were after earth, will smith and the actors son. The big budget disappointment for sony after it cost 130 million to make and brought in only 215 million. The studio only bring keeps half of that. Sonys white house down, only made 30 million in two weeks. Biggest flop likely the disneys the lone ranger, it cost well over 200 million to make and so far lassoed less than 120 million bucks. For hollywood executives, movies like these may be the inspiration for one word, flopsweat. Liz and dave . Liz we were wondering what is the problem . Seems like big budget, big budget, scifi battle movies arent doing well. Thats wrong. David no character in the movies. Iron man 3, guys, 1. 2 billion. That is superhero. David no character that is a big difference. I think bigger lesson sequels really work but when you want to make the lone ranger, it is not a sequel, want to make pacific rim, not a sequel, much harder time. Liz do it on the cheap. You need characters people can identify with. And care about. Liz we had chris, chris, we had rich gelfond of imax on. He said that he believes the hunger games part 2 will be huge, catching fire. Its a great character. Liz sequel. David character. Everybody will see the heat. 21st century fox. It is so funny. The heat is the best movie of the summer. Thanks, dennis. Liz thanks, Dennis Kneale. It looks like a contraption out of a cartoon. A a cade nannian Engineering Team use ad bicycle to power their way into the record books. David sounds like you saw the hunger games . Liz not yet. David you have to see it. Higher ups should be held responsible for problem trades at the banks . Your answers coming up. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Pd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airwayfor a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your thrt or tongue swells, you t hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement plans, they help save you up to thousands in outofpocket costs. Call today to request a free decision ide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and youll never need a referral to see a specialist. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Liz lets go off the desk. A team of canadian engineers made history by winning one of the largest prizes for aviation achievement. The 250,000 sikorsky prize for human powered helicopter flight. It was unclaimed for 30 years. The winning vehicle was called the atlas. It was designed by a team of 20 Young Students and professionals. It was powered by pedal power. David it is like a flubber movie from disney. J. K. Rowling, author of the harry potter series, is the real author of the crime novel the cuckoos calling. She published it under robert galbraith. The seas are soaring under 500 . Rowling is hugely wealthy, worth about 845 million. She is almost a billionaire. Liz an interesting little tidbit. We asked you on facebook if you think higher ups should be held responsible for problem trades at big banks, not just middle management. Jim on facebook said where the higherups suggested i will real or ways to defraud, they should be held accountable. That john on facebook, a reasonable man, anytime you commit fraud, it is fraud period. When it comes to financials, you are taking money out of peoples pockets. Liz david, have you know im walking fine today. In fact thanks to so many of you im floating on air. You helps us blow past our fundraising goal for our nations wounded heroes. This weekend, team fox business, Cheryl Casone and chris hahn and i competed in the new york city triathlon, to help raise money for building homes for heroes. There is cheryl. She swam in the hudson for the swim part. To build homes for most severeld afghanistan. Chris grabbed timing chip. Threw it on my ankle. I did 26 miles on the bike, right . After that, in this boiling hot weather, chris hahn did the 10k. He averaged eightminute mile. Here is me after 26 miles, drenched. Chris, grabs the timing chip, puts it on his ankle. Look at the fox outfits, yeah. He took off. We came in 36th out of 131 relay teams. David fantastic. Liz you know what . Most important part was the prize. Finishing at the finish line. Heroes for vets whom we completed homes already. Army ranger chris levy, Sergeant Aaron heal. Captain james bly letter. They are the reason we do what we do. We had so much support from you guys. Fans came after the raises. They came to the fox fan cam. This is meredith and my dad. This is the second triathlon weve done together. We raised 15,000 together for lymphoma, lukemia society. We finished the new york city triathlon, it was a great ride and swim. This is evan and clara. Hi to everybody in boulder. Go, fox business. Is the future permanently grounded . Mary shy after so i, peter gould, two giants in the industry join us with answers. Jk rule something one of most successful authors. Who made money today. The sound of money rolling in has never been clearer to these guys. Stay tuned to find out who it is. When they say it is not, it is always about money