Transcripts For FBC Markets Now 20130304

Melissa happy monday to you. I am melissa francis. Lori i am lori rothman. China concerned. Katie stock and two windows on why is looking for a pullback before the s p. Melissa we are heading live to the trading pits of the cme. Lori the government failing to strike a deal to avoid sequestration. What they be able to come to a budget agreement before arch 27 . Melissa what is the fair share when it comes to taxes . Lori time for an update on the stock market. Global concerns weighing on the market today. Sandra that is right. There is a lot of concern about growth in china. The dow is down about 38 points. The nasdaq down about nine. The s p 500 down about three. China is the Largest Consumer of oil in the world. That is weighing on commodity prices, as well as the dow. United technology is also down a couple percent. Definitely the fact that the Service Sector in china grew at a very slow rate, that is what has these markets down today. Back to you. Melissa oil prices dropping. Phil flynn is at the price futures group. Concerned about china. Sandra was just talking about that. There is significant headwind when it comes to china. Lets talk about the calendar. This is shoulder season. Prices usually start to come back down. U. S. Demand is very weak. The man is at a 11 year low. From a technical view, there is no dow that the concerns about china are starting to have a big play here today. One of the markets that is going on today is natural gas. Getting a nice little boost. It could be because of the new energy secretary. A pro natural gas export guide. That is. Therefore natural gas. The best news is gasoline prices. Look at the rbob futures. Right now, they continue to be down. They are down right now about another four cents right now. This is incredible. We have come down almost 0. 27 in the last two weeks. That is good for you. Maybe another nickel here by the end of the week. We broke that streak going up. Back to you, melissa and lori. Melissa like you were saying, consumers can really use it at the pump. We have been absolutely hammered i think that our rbob could fall another dime. Crude oil actually has more support here. We may find a little support. In the short term, especially with the april contract, we could see more downside pressure. We could get two 295 even. We could break three dollars on the wholesale price. Melissa phil flynn, thank you so much. Lori new names to the Obama Administration today. Working on spending levels for the rest of the year. Peter barnes is at the white house with more. Peter the president filling three key positions. Lets start off with Sylvia Matthews as the new head of omb. She is currently the head of the walmart foundation. She worked for the Clinton Administration under jack lew. She is being nominated to take over for omb. The second is the new and energy secretary. Finally, gina mccarthy, who is currently the head of the epas air office has been appointed to take over as the permanent head of the epa. She has been working a lot on Greenhouse Gas issues, tailpipes and power plants. These three will be caring the water for the president on key issues like the budget battle, Greenhouse Gases, clean energy, as well as, energy independence. Lori we were also hearing about some conflicting reports on the impact of the sequester. Peter this is on possible airport delays. The department of homeland security, Janet Napolitano, saying that there were lines at several major airports over the weekend because of the sequester. We have been looking into this today and what we have managed to find is we have not heard about any longer lines at tsa checkpoint at security checkpoints, but customs and Bureau Production says it has experienced delays at ports of entry. Lori we will see what happens from here. Peter barnes, thanks. Melissa washington deadlocked on whether or not to raise taxes. Brad blakeman is Georgetown University professor. He is joining us now. It was surprising to see it quantified this way. You see that the top 20 are paying their highest rates as a percentage since 1979. What is the impact of that . Why should we care . The top earners are the ones that keep our economy moving. It is mainstream. When the top 20 are paying the highest rate since 1979, the 1 are paying 37 . The next 20 are payingesse the top 20 paying 71. 8 of all federal taxes, when people hear that, they say they should pay it because they are the ones that have the money. No, we should be broadening our base. Melissa people would say they do not they are the ones living close to the poverty lines. How do you respond to that . Taxes for the middleclass and those in higher brackets should be paying their fair share, the same as the most wealthy are. The key to the economic recovery is getting more people to pay in. We rely on this to create jobs. Melissa how do you grow the whole pie at this point . We believe in the velocity of money theory. When you and i change money, that is what creates prosperity and jobs. Melissa they would say that they are creating the demand where there is not any. There is no difference between them spending that money and me spending that money. Is there a different . Absolutely there is a difference. We do not have a problem of revenue. We have a problem of spending. The fact that we can produce a budget, which is required by law. The sequestration and continuing resolutions are all selfinflicted wounds. Melissa can you imagine a Major Corporation in america that did not have a Financial Plan . It is amazing. All those shareholders would go away. Thank you for coming on. We appreciate it. Lori this is your still. Melissa whether or not the wealthiest should pay even more taxes. Lori it is a great conversation. I was not expecting that. It is good to be google. Shares of the tech giant searching for higher ground. Melissa states raffling with big decisions. Lori let take a look at metals. No real reaction. Virtually unchanged. Back after this. Friday night, buddy. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. Lori quarter after. It is time for another edition of market now. Sandra smith on the floor of the New York Stock Exchange. Sandra still not enough to put the nasdaq into positive territory. These two tech names shining today. Yahoo and google. Yahoo hitting 52 week highs on a decent upgrade from barclays. Not only did they upgrade the shares, but they also raised the price target. Another three and a half game from where it is. A lot of investors excited about that. Then, of course, you have google shares. Google hitting an alltime high. It keeps on going. 812 a share today. There are price targets that are now 1000 for google. Melissa wow. Lori 813 a share. For one share of google. That will set you back. Thank you, sandy. Melissa it is time to make money with charles payne. Charles we had a lot of fun with it. January 15 and 28. It was part anecdotal, part valuation. Here is a crazy thing. After the bell, their numbers were terrible. The stock is up and i am going through the numbers. I am looking what the company had to say. The guidance was terrible. I am telling people take profits the high is 79, 80. There is obviously room to the upside. I have to be honest with you why would anybody be forcing this short squeeze right now. They are looking at a loss of nine cents. Just a few days ago they had a gain of nine cents. Before the earnings of 3. 71. A lot of times, this doc tells you something that you dont know. 18 in two or three weeks, i kind of feel like i am lucky to have it. I felt a little lucky. I had all my best clients in it. Still, i am not sure why [talking over each other] charles a pretty good game over a short period of time. Lori what you think of google . Would you buy there . Charles i, personally, would not. There is a lesson there for people, if you give management a shot and let these Companies Work out, google had its issues where not too long ago people had written off google. Now, apple is breaking off and google is taking off. Tim cook, i have to be quite frank with you. He has left wall street flat. He has some work to do. Melissa charles payne, thanks so much. Lori both sides of the aisle are ready to act. The money behind the deal. Melissa it is good to be them. We will tell you who is in and who is out on the forbes billionaire list. Did you make it . Lori i would be happy to be last on that list. The answer is no. [ male announcer ] this is karen and jeremiah. They dont know it yet, but theyre gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary not commission. Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. At 22 minutes past the hour, i am lauren green with gearbox news minute. Vatican around the globe are meettng. Four then 140 cardinals are in rome. 103 of those cardinals are electors. In mississippi baby born with hiv appears to have been cured thanks to stronger than usual treatment for newborns. The baby shows no signs of infection. This could lead to big changes in pediatric aids treatment. Queen elizabeth was smiling as she left the hospital. She was released earlier today. The last time she was in the hospital was 2003. All engagements have been canceled for the week. Those are your headlines. Now that two melissa and lori. Lori lauren green, and he thinks. The government failing to strike a deal to avoid sequestration. Will congress be able to come to an agreement before march 27 . Joining the now is brian gardner. Welcome. House republicans, as you know, expected to release a bill. I think coming out of the fiscal cliff debacle, i think both sides wanted to avoid that this time around. Lori what would that look like if you believe that . Republicans and the sequestration negotiation, in other words, the democrats scare tactics were effect if. I do not think they have been that effective. I disagree with the premise that republicans have lost a lot here. I think they are starting to see some signs that the administration is willing to agree to a cr for the rest of the year. That is why i am optimistic that we are heading towards a deal in the next couple of weeks. There will be no revenue increases outside some kind of user fee that i do not anticipate is a big deal. In terms of closing loopholes, raising rates, that will not be part of the cr. I do not think anybody really wants that fight right now. People continue to cost her over it, but it will not get in the way. Lori we have had a couple days to digest sequestration. Some conflicting reports so far of these cuts. What do you make of it . Will it really be less noticeable, lets terrible then we are hoping . No. I do not think armageddon is on its way. I think the federal government whose budget is 3. 6 trillion, 44 billion less spending through the rest of the year is not going to make a significant change. You will hear isolated stories of problems in a particular program it is such a small slice of the overall federal budget. There is no way it has a meaningful impact on the economy through the rest of the year. Lori brian, the Financial Markets have shrugged them off. Do you think that will change at some point be back investors are dismissing washington. They will Pay Attention to micro issues. I do not see them really starting to worry about washington again. That is great for the markets. Melissa forbes has released its annual list of the world top billionaires. Coming in second was bill gates. Due to the list is fashion cofounder. He left over the likes of Frances Bernard and warren buffet to come number three. Even as buffett added 9. 5 billion. Wow. Lori those are some hefty sums there. Lori it is interesting that the women on the list are both in the fashion industry. How do you feel about not making the list . Melissa i am devastated. Lori something to work towards next year. Why this may be just the beginning. The s p 500 is doomed for a pullback. Melissa take a look at who is off into is down right now. We will be right back. Meet bill and melissa. Like many, they built their financial house on stocks, bonds, and insurance. And then saw it blow away with the first winds of economic change. When mary lost her husband, she invested in real estate. But when the housing bubble burst. So did her financial future. Robert and rachel discovered the security, safety, and stability of american bullion, the name you can trust for 401 k unlike other gold companies,rs. American bullion handles all the paperwork for you, hasslefree and 100 taxfree. Call 1800goldira now and speak with one of our gold experts to see how simple working with amerin bullion can be. When you do, youll receive the gold guide and the book the next wave free. Discover how gold can help protect your finances and your future. American bullion. Piece of gold, peace of mind. Call 1800goldira now. Melissa all right. Time for stocks now as we do every 15 minutes. Lets head to the floor of the New York Stock Exchange. Sandra smith is standing by. The dow is pulling away from its alltime high, huh, sandra . One stock is moving significantly to the upside, flying higher is delta shares. Take a look at this, guys, up about 6 . It is leading other airlines higher. If you move to the left here you have united, us airways, southwest but the big news on delta hitting a 52week high it expects its first First Quarter profit in over a decade, you guys. Big news coming from delta this morning. That is moving shares higher. The unit revenue, the amount it takes in per passenger per flown miles, they expect to be up 4 1 2, 5 1 2 . Some big news out of delta. Were looking at Broader Market. The Dow Jones Industrial average is down 16 points but this isnt a huge loss. Were looking at 14,073 for the dow. Keep in mind the alltime high, were still not far from there, that it is 14,164. Not many traders down here think well hit it today but it is still in play. Melissa sandra, thank you very much. Thank you. Lori as you saw from sandras report stocks are trying to reach alltime high for a week but if you look at charts my next guest says well see a pullback before the s p 500 hits a new record. We have katie stockton. Hi. Lori you sent us this chart. It is the s p 500 over the last year. The blue line is 200 day moving average. It only dipped below the level twice you say the index is losing momentum over the last month, correct. Thats right. Were stalled in here based on the s p 500 as we stalled weve seen a pickup in volatility. That pickup in volatility is more characteristic of correction phases. Weve already seen corrections globally. If you look at european benchmarks, asian benchmark, they have alled pulled back fairly significantly and we have not yet. I see the loss of momentum an issue in the weeks ahead looking for a correction to refresh the longer term uptrend. Lori when you say refresh the longer term uptrend, do you mean you see enough momentum behind last years performance in the broad market average to shoot it well above that alltime high marker . I do. I do expect to breakout to a alltime high by the s p 500 after a correction phase. Often these corrections help refresh buying interest in the market. Positive longterm momentum still benefits the uptrend. I dont expect that to change during a correction but whats happened weve become a bit overextended or overbought people like to call it and i will get more aggressive on the buyside with my recommendations when we see more oversold conditions become more widespread. 4 of the s p 500 is oversold based on one of my measures and we tend to sea that measure peak around 30 . That could happen in a matter of three to for weeks or some it typically does. Thats what im expecting this time around. Lori all of that said, lets put back our initial chart, if you will the 200day moving average of the s p for the last year. Because youre talking about this correction youre anticipating yet were still comfortably above that 200 day moving average, just, i mean not just in the last month but reilly in the last two or three months, right . Does that give you more confidence in the Overall Health of the s p, katie . Certainly in the long term uptrend. Moving averages are lagging by nature but the 200day tends to give you a good indication of the slope of the long term. That is what it is doing on the chart. Sometimes it acts as support as it did last november of course. This time i think the 200day move move will not be tested. It is around 1412 i believe as of today. I dont think well see a correction that dramatic in nature. Im looking for a correction into the 1425 to 1465 range. Lets call that three to 6 below current levels. Lori okay. I know technicals are your expertise. All these numbers and milestones, support levels, resistance levels but can you tell me any of the fundamentals the real risks to the market . What are you looking at outside of these actual charts . Is it europe . Is it china . Is it the u. S. Fiscal mess . What sort of things are you taking into consideration . Well there is always something, right . For me i do just look at charts and china is an issue. So weve seen a gap down in the chinese benchmark today and that i take issue with because it does suggest there is worse to come from the emerging markets like china. The loss of momentum has been fairly significant there and theres of course reasons for that. So with support levels below current levels i still think there is Downside Risk and i would be hedge understood that. Selectivelily adding short exposure as well. Lori appreciate your advice. Katie stockton. Melissa so more bad news for greece. Russell investments has reclassified the debtridden country from developed to an emerging market. Greece has failed one or both of russells economic and Operational Risk assessments each year since 12 ven. The fund manager which designated a greece a developed nation in 2001 says, since the country began revealing unstable levels of public debt in 2009 it has been in an unfortunate economic tailspin at times has threatened to pull apart the entire european monetary union. Any opportunities in the Greek Economy have become inherently riskier exposures for global investors. Yikes . Emerging. Lori why risk your opportunities i think, opportunity. Risk reward. Take on more risk. Youre rewarded more hand somely. Melissa youre wild and crazy. Lori Dennis Kneale were office neighbors. He is an eternal bull. Melissa i like that. More patience, more money. States grappling how to implement president Obama Health Care overhaul. Lori no love lost, between at t and tmobile, the companies were once set to merge. Now theyre launching an allout attack against each year. Yield on the 10year is rising. Well be right back. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Im Dennis Kneale with your fox business brief. Stocks flipping from record territory on concerns from the global economy. The bluechips pulled back from fiveyear highs. The dow is down 14 points at 14,075. Irish drugmaker elan will offer a 20 Cash Dividend linked to the performance of hits multiple sclerosis treatment. But the payout is contingent on a deal with biogen idec. They will take over on a cash payment of 3 billion plus future royalties. Global revenue from app stores expected to rise 62 this year to 25 billion. Technology Research Firm gartner says consumers are estimated to spend on average two hours a day with apps, which is more time than you lot of you spend with your kids. Thats the latest from fox business, giving you the power to prosper melissa so to expand or not to expand, that is the question space facing the nations governors as it comes to the president S Health Care overhaul. States accepting the Medicaid Expansion receive 100 coverage for new enrollees, but that is through 2016. It declines to 90 by 2020. By accepting the expansion they are opening themselves up to millions more people eligible for medicaid and states will not receive any additional assistance for current medicaid recipients. He joins me with more on whether the expansion is worth it in the long run. What is the downside to not doing the expansion . Because we were really crunching the numbers ahead of time, seems if you do the expansion it will cost the state money for sure overtime. What is the downside to not doing it. Ooh im not sure the states should do it. But the downside to not doing it a lot of people uninsured in the states. There is lot of pressure from the providers in the state particularly hospitals who are telling governors you have got to do this. More money from the federal government. While short term they have 100 and 90 match governors are worried long term whether that will be there or left holding the bag. Providerssand hospitals saying look down the road worry about that then. In the short term you should take the money and try to cover more people in your state. Melissa we love to worry down the road later that is our favorite thing to do in this country. Especially here. Melissa were looking at map with all the states. It is filled with different colors basically showing you about indecision. People decided to accept, not accept. Theyre leaning one way, leaning the other. Seems like the country is very confused what to do. The obvious downside to accepting expansion, it is 100 right away. You have to pay at least 10 down the road. Im not even sure that is the end of the costs. In fact, floridas department of economic and demographic analysis did this report just out today and they look at seven different scenarios. One of the things they look at throughout is that you basically are seeing state costs to medicaid going up. The state will have to pay more money in the medicaid in the future. Varies depending on different scenarios but states will pay more in the future. If the 90 match goes down even further which i think it will and cbo former directors like douglas holtzeakin then they will pay even more greater share in the future. Melissa they still incur costs. If you dont take the federal money and dont put them onto the federal Health Payroll so to speak, they still go to Emergency Rooms and incur costs that are not paid. It is not like theyre not racking up bills if theyre not in the system, right . Thats true. A florida study looked at that, assumed in whatever scenario there will be uncompensated care. President obama promised we would get the new bill through his Affordable Care act and we would take care of the issue of uncompensated scare care in any scenario were still facing uncompensated care across the country. Melissa if you had to advise them, what would you advise them. Most choice the republicans governor are saying no to state exchanges and saying yes to Medicaid Expansion. What i argued for they should ban together and create leverage, not going governor by governor. Here there are 30 republican governors. We should stand together and saying changes we need and guaranties we need to go forward with Medicaid Expansion and state exchanges. If you do the things well go forward and proceed. Melissa interesting one to watch. Thanks for coming on. Thanks. No problem. Lori it is quarter of. You know what times it is. s check the markets with sandra smith on the floor of the stock exchange. Sandra, some oil is on the move. Hey, guys. Were looking at oil sector as oil falls below the lowest level of the year, below the 90 mark. Hess is close to hitting a 52week high. This has been a winning stock all essential long. Not only announcing a 4 billion buyback but boosting its dividend to a buck a share from 40 cents a share and announce it is getting out of the retail business. Getting out of the risky Energy Trading business and focusing on exploration and production. Investors are a big fan of the move. Watching transocean shares. Theyre slightly higher. This is the Ticker Symbol rig, rig. Slightly higher now. Hang to a penny or two penny a share gain. It has come off the highs of the session. Recommending, the companys board is recommending it restart the Quarterly Dividend payments. A lot of dividend talk moving Energy Shares today. Back to you guys. Lori thanks, sandy. Thanks. Melissa two Telecom Giants are at it again, taking their feud to the press as our own diane macedo has the story. Hi, melissa. At t is looking at tmobile usa net work performance and in newspaper ads escalating a rivalry with two companies that were once poised to emerge. Fullpage ads ran in the new york times, wall street journal and usa today claim to reveal the truth of it. Mobiles network, drops twice as many calls and failed calls and Network Speed are only half as fast as at t. This follows a speech at the january consumer electronic shows which tmobile chief executive called at ts network, quote crap. A at t spokesman said tmobiles advertise something combination of misguided and plain wrong and calls the at t ads of a friendly reminder independent Third Party Testing says at ts Network Delivers faster speeds and fewer dropped calls for them. His chief marking officer says owe is glad theyre spending money to print tmobiles name. They were set to merge not too long ago until regulators opposed deal worried about diminishing competition. Since then at t is trying to Work Together more Network Capacity to team up with metro pcs. We probably havent heard the last of this i will keep you posted when the necessary shot is fired because we find this pretty entertaining. Melissa we find it entertaining. At t is working hard to grab up as much spectrum. That is getting ugly. Lori palace intrigue. Melissa exactly. Lori . Lori another cyberattack. The victim is Popular Online note taking service. Details on that coming up. Plus an instant classic . Polaroid helping you make your Digital Pictures more permanent. Well tell you who you and how much. Thats ahead melissa i want to show you the dow real quick because weve been negative all session. Look at this, trying to move into positive territory, getting very close. Were down only four points on the dow right now. Lori more than two hours to go, to the closing bell. So anything can happen. Meantime take note, another day another cyberattack. Say it aint so. Shibani joshi whats the story this time around . This time it is right. Doesnt it feel like every week we hear of another huge company hit with some sort of cyberattack of some way, shape or form . Were just not talking about Big Technology companies. It is small ones too. Ever note, latest website or content creator out there to get hit with a cyberattack joins the ranks of facebook, twitter, apple, microsoft and list goes on and on. Do you use ever note, lori . Lori no. It is an awesome site. Virtual note taking site. 50 million other people do. This affects a lot of viewers out there. Potentially, lori, check out the app. But, the company is saying that in our security investigation we have found no evidence that any of the content you store in everynote was accessed, changed or lost. They said if youre Business Customer and transacting and giving credit card information we have no information from premium evernote customers or access is been compromised. Theyre recommending you change the password. Were getting hundreds of millions of people impacted by breaches. Lori to your point off the top every day a new report of another cyberattack. What do we have to keep in mind . It is worth reminding everybody. It is simple. I like to do it when we have attacks in the news. Remind the viewers, simple things you make yourselfer to be attacked or get your personal information stolen. First thing avoid using simple passwords based on dictionary words. Never use the same password on multiple sites and services. A lot of us do these things. Lori how do you remember all of them . Never click on reset password request in emails. Go directly the service. Simple tasks but they help you keep a lot more safe. Lori i always reset the password. Great reminder. Just for you, lori. Lori i need a lot of help it comes to tech know gadgets. She helps me every day in the makeup chair. She is side by side. Always getting her advice. Cyber threat continues tomorrow at 11 00 a. M. Earn with Connell Mcshane talking with scott borg, talking with the chief economist at u. S. Cyber consequences unit. Melissa bringing off the computer into peoples hands the Company Opened its first photo bar which gives customers the ability to print note shows from smartphones, facebook, instagram. Replicating traditional polaroid, you have to print a minimum of six. The store is in florida but the company is negotiating at least ten leases in other Stores Across the country. All of the pictures look like that classic polaroid with the white border but if youre longing for one. Iconic cameras they are on sale. You have to buy one refurbished since they no longer make cameras and film. At a party recently my 6yearold wanted it really badly. There is fun about having the thing come out of the bottom. Lori that holder place. Extra border so you dont get prints all over the picture. Melissa im sure it is great for the environment. Lori were dating ourselves. Now that spending cuts are becoming reality how will they impact washingtons next budget deadline which is just four weeks away . Wall street journals gerry seib weighs in next with tracy byrnes and ashley webster. Stick around. Tracy good afternoon, im tracy byrnes. Im ashley webster. Looking for a spark. Stocks starting the week with caution, moving the dow further away. Just below the water mark from the alltime closing high . What if anything will be a catalyst for more buying . Steve word of Russell Investments is here. Tracy spending cut versus reality. Homeland security chief Janet Napolitano says airports are already seeing long lines yet several major air ports say that is simply not try. Wall street journal gerry seib weighs in on that and washingtons next battle. Ashley check your facts first. As more and more Students Loans go bad investors buy billions in student loan backed securities. Theyre selling triple the rate they did a year ago. An interesting story. Much more on that ahead. Tracy it is top of the hour. Time for stocks as we do every 15 minutes. Sandra smith is on the floor of the New York Stock Exchange. Sandra, we are just fighting to get back to that green. We are in the green. The dow may be holding onto a fourpoint loss right now, but broader stock market, s p 500, turned slightly move. Positive. It is up one point. Were talking fraction of a percent. Nasdaq. Tech stocks turned into the positive. Waiting on Big Industrial names. Theyre still the laggards right now which is interesting because they had been leading the losses earlier in the day. So well see if they can come back here, guys. But that is a quick market update. You never know what will happen. Everybody watching, 14,164, that is the number to watch in the dow. We still have a couple hours left to go here. Oil prices are being watched by traders, below the 90 mark. Oil prices seeing the lowest level. Year. We havent been below 90 bucks since september. That is playing a big part in a lot of stocks were watching including airlines. Take note, Major Airlines are leaders in todays session. For one reason oil prices are down. Theyre back below 90 bucks. That could mean cheaper jet fuel prices for airlines. Number two, theyre raising prices across the board. Delta, continental, delta, raising their rates. After southwest and yet blue raised rates on cheaper side. Ashley, tracy, this is sevenday range theyre raising rates. It affects a lot of business flyers. Something to take note there. Theyre raising 4 to 10 a ticket. Tracy thats a killer. Sandra smith. Thank you very much. Ashley thank you, sandy. Now to spending cuts. Homeland security secretary Janet Napolitano says you can blame them for long lines and delays. How come if that is the case furlough notices are not sent out yet . Peter barnes at the white house with more on that story. Peter . This is in the context of republicans accusing the administration of exaggerating the possible impacts of sequestration. Ashley, so weve been digging into it. This morning Janet Napolitano saying that there are very long lines at chicago ohare, for example, los angeles, maybe at atlanta. She said. And she blamed sequestration. But she also acknowledged that the furlough notices have not gone out. She said this is mainly, indicated it is a problem mainly created by hiring freezes. Take a listen. There is very little we can do to mitigate it because the procedures we use to clear passengers and cargo, theyre responsible i think for the fact that we have a very Safe Aviation system and we have a very good land migration system where we know who is coming into the country. So, were not going to cut back on those security needs. The end result fewer people doing the same things. Lines are going to get longer. But weve been asking around on this. The Airline Industry trade association here says it knows of no unusual, unusual passenger delays at the nations airports. There are a, lots of airports themselves we contacted and said they have no unusual delays. The Transportation Security Administration declined to comment whether there are delays at specific airports at domestic checkpoints. But customs and border patrol, which handles customs screenings for arriving International Flights did put out a statement said, quote due to sequestration, cbp, reduced overtime this weekend at ports of entry around the country and expects, and the effects are already visible. Lanes that would have previously been open due to overtime staffing were closed and that has been causing some longer wait times. Ashley . Ashley all right. Peter, by the way, president obama announcing some new names to his administration today, right . Yeah. Three key positions for his administration. Lets run through them. As the new head of omb, Sylvia Matthews burwell. She is currently the head of the walmart foundation. She work used to work at omb during the Clinton Administration. Ernest moan niz monniz, new energy secretary. Gene that mccarthy, epa air office is appointed permanent head of the epa all these require senate confirmation. Ashley peter barnes in washington. Thanks so much, peter. You bet. Tracy now that those spending cuts are going into effect what will it mean for washingtons next battle over keeping the government running . Mark your calendars, march 27th. Gerry seib, wall street Journal Bureau chief. Gerry, there is some talk out there this might be an easier battle than last time. It starts to look that way. I dont think either side, either party has much interest in flirting with shutting down the government on march 27th because a bill cant be passed to fund the government for the remainder of the fiscal year. I think the likely scenario, this will start unfolding this week already in the house is a bill, socalled continuing resolution that funds the government for the remainder of the fiscal year to september, simply continues funding at sequester levels. With the bill they will play around with the numbers to create more flexibility for the say, the Defense Department how it can implement the postsequester levels of spending. I think the broader battle will be fought on other matters. The sequester kind of spending cuts seem to be settling in at least for a while. Ashley yeah yeah, gerry, has this worstcase scenario rhetoric we heard from the white house now apparently backing off, has that hurt the credibility of the little bit when it comes to impact of spending cuts . Probably a little bit although the weekend saw a shift in the rhetoric and conversation now is much more about longterm impacts. I still think there is some potential there for that. The furlough notices dont go out until this week. They have 30 days, federal employees to before a furlough can kick in. Youre not going to see real impact for at least another month. At least in terms of fullfledged people being called off their jobs kind of impact. So well see what it feels like in april but i dont think this march well have Horror Stories popping up. We may have occasional inconveniences. I think sequester idea settling in i think will be with us for a while. I think the challenge is to shift the conversation to cuts that get to things that driving the deficit which are entitlements. Tracy when will we hear about that . Sure, well move ourselves into april. Were still in the exact same place we started, you know. This is, theyre getting bigger by the second. Well, look, republicans in the house are focused as i said on passing something that funds the government for the rest of the year, that creates some flexibility within the current sequester levels. I think in the senate there are some conversations that are starting in both parties and i think president obama sort of vectored in with some phone calls this weekend to try to shift the conversation toward the big deal, towards a big deal that goes beyond the sequester, and gets at things really driving the deficit. That is what is frustrating about the sequester to people who are budget wonks. There are plenty of us in washington. Fine to cut spending, but cut spending creating the deficit which is on entitlement and automatic spending programs, rather than the parts of the government that are already shrinking in size, defense and the domestic Discretionary Spending . Kind of a case the wrong cuts that make some people feel better but dont really address the problem. Ashley were out of time. Gerry, very quickly looks to me that the democrats will say, okay well have entitlement reform but republicans will have to come up with more hikes in taxes. Can the republicans do that if they get pretty much what they want on entitlement reform . Well that is certainly what were stuck now in the big picture but if you actually get tax reform that change the way people count tax revenues, that maybe is the way to unlock that particular box. Ashley we shall see. Tracy that is an early christmas present, tax reform. Gerry seib, thank you as always for sharing your thoughts. Happy to be with you. Ashley coming up the dow and s p within striking distance of record highs so what is holding them back . Russell investments steve wood weighs in next. Tracy plus taxes on the rich nearing a threedecade high. Fox news judge Andrew Napolitano, no surprise, totally outraged. He is coming here ahead. At this time of day well see how oil is trading. Oil is down about 1 as well, under that critical 90 a barrel mark. 89. 81. Well be right back. Whats next . Hes going to apply testosterone to his underarm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. 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 signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if yohave prostate or breast cancer. 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. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and incrse in psa. See your doctor, and for a 30day free trial, go to axiron. Com. A confident retirement. Those dreams have taken a beating lately. But no way were going to let them die. Ameriprise advisors can help keep your dreams alive like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. And thats what they can do with you. Thats how ameriprise puts more within reach. Tracy wellthe dow is off session lows but still moving in the wrong direction away from its alltime closing high so what is holding us back . Joining us is steve wood, chief Market Strategist at Russell Investments. Seems like there is this hesitation. We get to a point and kind of hangs back a little bit. Ashley a ceiling. A markets are bumping up whether you look at dow jones, s p, russell 2000, small cap space, large cap space, it has been a good healthy run in the United States over the last two months since the beginning of the year. So our expectations that markets end up a little bit from this point positive, but with some volatility. So it has been a good run. Still slightly higher than long term expectations but, there is a lot of washington and policy generated uncertainty that causes some pauses. Ashley you think there is lot of value in the markets right now . I keep hearing the term overbought and kind of stretch a little bit but you think there is more value to be had . The market doesnt look overly expensive. It does not look overly expensive to us. If you look at stock picking we think that will be more important as we go forward. In a market with a lot of momentum, creating a Broader Market play, we think multiassets, security oriented portfolios and stronger Balance Sheets, bigger models, revenues and sales are challenged. Not all Balance Sheets are created equal. There is momentum in the market. It doesnt look overvalued but stock picking will be important. Tracy you say the market is done for the rest of the year. Does that mean the average joe missed this . That depends how the average joe wants to invest. If theyre trading for a week or two i dont think somebody has much to say to them. If you go on five, seven years, you expand possibilities. Fixed income space, bond and cash. Locked in with returns that are negative, real rates of return. Investors will need to look at risk oriented portfolio. Globally diversified pockets of risk. They need to beat inflation and to look in areas uncomfortable to the risk tolerance. That is where the returns will be. They need to be in it for the longer haul. Ashley what sectors do you like in particular, steve . Right now were looking at consumer. The death of the consumer is very exaggerated. I think the Federal Reserve will be very, very accommodative for the foreseeable future. Brits and europeans will have to follow suit. Some areas of financials but you need to do their homework. Health care now that bam kiar is behind us, winners and losers, much easier to pick out how they will be and energy. These are sectors that continually come up with our managers. Tracy during the break, overseas financial crisis has to be on the forefront of your mind. How does that play in here. The european policymakers will work over time to create volatility. Theyre very good at. We expect it they will con it do that. You saw in spain when the corruption charges came out and election in italy. We have once again unstable politics in italy. Europe is a tinderbox. It is very dry. It will not take a big spark to catch. Europe will be opportunity for volatility to present itself. Theyre in the initial stages of getting it t this right. That said, washington, sequestration, fiscal cliff, europe, markets price through it. Ashley okay, we have the continuing resolution the issue coming up at end this month. The markets, these arep opportunities to reload. If you done your homework, if you know what the Shopping List is use the pullbacks to reload for the longer term investor. Tracy they make us look good. Steve wood, Russell Investments. Ashley thank you, steve, appreciate it. Well it is a quarter past. Time to check the markets for you. Sandra smith on the floor of the New York Stock Exchange. We go there every 15 minutes. Whats going on, sandra. Hey, tracy, hey, ashley. Look at hess. Weve been watching this stock today. It is nearing its 52week high. Just a big move all around for the company. 4 billion buyback. You have also hess more than doubling its dividend payout from 40 cents to a buck a share. And youve also got it getting out of the risk can i Energy Trading business. Getting out of retail business, getting out of the risky part and theyre focusing on exploration and production. Investors are cheering this move on. Hess shares to the upside. Looking at nearly 3 gain. It is right below 70 a share. On a day oil is reaching the lowest levels of the year, here you have hess reeching nearly its highest level of the year. Hess a big winner in todays session. Meanwhile markets still lower. Dow is down about 12 points. Still looking for a little direction with a couple hours to go. Back to you. Ashley sandra, thank you very much. Well be back with you in 15 minutes. Tracy coming up a new crack down on Companies Dodging taxes by mislabeling some employees as contractors. Liz macdonald will break that down for us next. Ashley first look at the dollar for you and how it is moving against foreign currencies. The pound at one point dropping below 150. Getting cheaper to go to london. Euro also down against the pound, against the dollar rather, but the pound gaining some traction back. A mixed day for the currencies. Well be right back friday night, buddy. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Credcards. Com. At 20 one minutes past the hour im lauren green with your fox news minute. At the vatican cardinals from around the globe are meeting but have not yet decided on a date for the conclave to choose the next pope. More than 140 cardinals are in rome. 103 are electors who will select the Roman Catholic churchs next leader in. A mississippi baby born with hiv has been kurd thanks to stronger than usual treatments for newborns. The child is 2 1 2. Have been off hiv drugs for about a year and shows no sign of infections. Specialists say this could lead to big changes in pediatric aids treatment. Those a are the headlines. Back to ashley and tracy. Ashley lauren green, thank you so much. To make money with charles payne. This is timely one. Tracy will explain in a second. We have hitting new high today, charles. Guys, people are so reluctant, two things people are reluctant to do. Buy stock at alltime high or 52week high or buy a stock with 100 handle. That is too expensive. That is not how you judge the value of a company. I tell people most stocks under 100 are under valued. Most stocks under 10 are undervalued. Whirlpool. Sales, two times book. Heres the story. Just an amazing global play at this point. Number one in america. Number one in latin america. Number two in india. They have less than 10 penetration. Number four in middle east and latin america. Growth will be flat there and rest of the world will be on fire. Ashley as housing turns around. That is domestic side. Tracy just got one, right . Tracy within two days my washer and dryer died. They were both whirl pools and they survived for 12 years. Washers and dryers are like swans. They cant live without each other and are done. I bought two new whirl pools. One is delivered as we speak. That is beautiful. Last year the margins really fell apart. 2011 was inflection point. Expansion at record pace in terms of margins. It will continue well into 2014. This could be a 200 stock. People looking something for the 401 k , not necessarily a trading vehicle. I like this stock a lot. It is really cheap. A global footprint. Latin america they cant get enough. Ashley thats true. They have a Conference Tomorrow at raymond james. These conferences ive been trying to get people into the stocks before the conferences. They have been big for moving stocks. Ashley very good. Charles payne. Tracy charles, all i know i finally get to wash clothes today. Guess what. I know where to go when mine breaks. Ashley thank you, charles. See you later. Tracy a new government crackdown on business underway at the irs and the department of labor. A wide range of companies could be at risk and of big tax bills. Here with more Liz Macdonald and emacs bottom line. What are they doing now, lizzie . This is a developing story. This is part of a big push, part of Vice President joe bidens middle class task force. What he is doing is, saying basically to thent do of labor and irs you have to get these workers rights in way of medicare, their social security. They have to be within the letter of the law on minimum wage. What is happening he basically the Vice President s office and department of labor and irs saying there are 3. 4 million workers out there who should be classified as on the job employees, not independent contractors. So now weve got the government hooking up, look at this, with 13 states where these states are now swapping information with the federal government, workers in their states that may be wrongly classified as independent contractors, meaning theyre not on the books. They basically have to pay their own payroll taxes and the like. That is why the government is saying Companies Like to do this. They like to avoid paying taxes on workers. They like to avoid having to adhere to federal government laws on things like minimum wage. Have to tell you something, the irs has audits underway of 6,000 Companies Across the country. So were talking home builders. Were talking restaurants, hotel chains, casinos. The kinds of companies that rely heavily on independent contractors. Certainly truckers as well. So what were talking about though, guys, are crippling penalties if these businesses are found to be not in compliance with the law. Look at that. 100 penalty. That Company Owner and other officials may have to pay all of the payroll taxes that are owed on the socalled misclassified workers. Im telling you this is a big deal. If the paperwork is so onerous and complicated if any company or Business Owner tripped up by the law which could easily happen they could find themselves in the crosshairs of the irs that is something you dont want to get involved in. Hard to extricate out of your any irs problem. Crippling penalties. A lot of paperwork. This is coming down pretty rapidly. Department of labor saying 0 of all Companies Likely have 30 of all workers probably have been misclassified as independent contractors when they shouldnt be. Back to you guys. Tracy lizzie mack, thank you. Clearly this has a lot to do with health care. Ashley yes. Tracy right . Ashley yeah. Tracy otherwise. Ashley will be a huge hit though. Tracy huge. Ashley back payroll taxes. Here is another subject well get you fired up, tracy, oil losing ground again today. As you can see, trading right at 90 bucks a barrel. Just dipped below 90 bigs for a brief while today. Lowest level since late december, drives still cant catch a break at the pump. Gallon of gas is nearly 3. 57. That is up almost a quarter from a month ago. Premium is only thing for the old sportster, get ready for a 4 bucks a gallon. Were close to the high in 08 4. 11 a gallon, national average. It is well above 4 a number of places in the country. Out west, here in new york. Tracy connecticut . Ashley how about new jersey . Tracy forget jersey. Connecticut, you should fly over the state, they rob you blind when you pull over for gas. Ashley coming and going. Tracy Student Loans are soaring at an alarming rate. Why are investors lining up to buy securities backed by them . Gerri willis is on the story next. Ashley lets look at some of todays winners and losers on the s p as we head to the break. Tracy welcome back. The dow just turned higher after flirting with positive territory for the past hour. It is official, were up 21 points. Lets head down to the floor of the New York Stock Exchange. Sandra smith is standing by, doing a little jig i bet. No, not so much. Are we doing a jig . Were watching markets turning positive on the session. The dow is up 21 points after being down all day. What are we to think . You if turn on tv see the market same thing happened on friday a lot of volatility in markets. We opened lower and trading up higher during the day. What this tells me the market has enough information and muscle to shake off any negative news whether coming out washington or coming out europe and get back to the levels where we see this motion of the market move higher and higher. Economic date in my opinion supported this. Earnings season is behind us. You think this keeps boeing . I think this keeps going. A lot of bears says this light volume. 354 million shares. This is nothing. It is. Look at week we have. No Economic Data today. We have ton of Economic Data coming out of the rest of the week. Nobody will make any big moves right now. What about oil prices . Is that a sign of the economy the fact were dipping below 90 bucks for the First Time Since december . There is correlation trade where currency trade tieses to u. S. Equity markets. The way oil has been trading for a Long Time Coming off the lofty levels. Weve been watching the 90 par level bouncing back and forth. Will be interesting to see if it bounces off it. John corpina. As we walk backwards, we watch the airlines, one of the leading sectors in todays trading session as the markets move into positive territory. Look at delta shares up more than 4 . Back to you guys. Ashley cheaper oil. Tracy but the lower plane ticket prices darn it. Sandra smith, see you in 15 minutes. Ashley not going to happen it. Tracy i know it. Ashley with Interest Rates hovering near record lows investors are looking for new ways to make money. Thats why investment in Student Loan Debt is soaring even though a growing number of borrowers are falling behind on their payments. Gerri willis joins us with more on this story. Well, does this not feel like 2006. Doesnt it . Yes. Let me tell you. I am being showed by this. The story last week sallie mae which underwrites private Student Loan Debt issued 1. 1 billion. Couldnt get enough of it to get it out into the marketplace. Marketplace is so eager to buy this. In fact the demand for the riskiest tranches of this dent, 15 times higher than supply. You know what that means . If there is big demand for it, there will be more of it and your kids will be offered all kinds of debt they pick up themselves. But why . Tracy is it because you cant lose this debt in bankruptcy because like it is with you forever . What is the perk to owning it if the kids cant pay their loans backed. Ashley backed by government. These are private Student Loans for sallie mae. There rather loans not private Student Loans and there is lot of demand for that. Remember, search for yield everywhere. Everybody is trying to find something that pay as little bit more and get a little bit extra. There is no place to go, right . This is one of the things people are going after. At the end of the day what is interesting about this and how it is different from the housing bubble there is no hard asset for banks to go back to. You know what i mean . At least you can get the house back in foreclosure proceedings as we saw. So the big question that think is almost unanswerable now, if this is a bubble that bursts, what are the consequences . Just not clear to me yesterday because it is so different. But i got to tell you were flirting with disaster, i think students, parents, need to make sure theyre taking out debt they can actually repay. Ashley yeah. Match what you think you will earn with how much debt. Dont come to new york city if youre going to be journalist and study journalism here in the city because you will pay so much money for that, right . Ashley what do you have coming up tonight, gerri . Well talk about the california story. This is a Senior Citizen dying in a nursing home out there because she was denied cpr. She was denied cpr because they were afraid of lawsuits. Well be looking at this from both the legal and ethical angles. Tracy what . Yeah. And apparently theyre trying, this nursing home is trying to defend themselves. This is our policy she followed the policy. I dont know how you stand back from some one like that who is in the throes, close to death and you dont help them. A lot of people talking about this story today because it is so outrageous. Of course, bigger questions about obamacare and will eventually, will we be making decisions like this because were so worried about the dollars and the cents . Ashley all right, gerri. Tracy we need tort reform. Gerri, go get it. Ashley dont forget, dont miss the willis report tonight at 6 00 and 9 00 p. M. Eastern time here on fox business. Tracy terrible. We have breaking news now for you. Oil closing down 56 cents at 90. 12 a barrel. That is loss of nearly 2 3 of a percent. It was below 90 just a bit earlier. Came back a little bit. Coming up americas richest families are paying the biggest tax bills in years the government just doesnt seem to care and cant anyway. Judge Andrew Napolitano weighs in next. Ashley he has plenty to say, you can count on that. Spending cuts reality for one military contractor. Jeff flock has a preview from missouri. Jeff . Ashley, look at all the equipment the government bought to make the blast mats that protect americans in harms way in pan began. Only now they have afghanistan. They canceled the contract. The sign of sequestration times. The full story when we come back. You will want to hear this [ male announcer ] this is joe woods first day of work. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find se good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td ameritrade. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwid what im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better w with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. Im lori rothman with your fox business brief. Shares of bond insurer mbia are surging after a new York State Court dismiss ad lawsuit over a 2009 restructuring. A group of banks, including bank of america claimed the restructuring was fraudulent and done in such a way to leave mbia involume sent to pay their claims. True religion apparel shares, they make trendy jeans, are jumping after the retailer would not renew the ceos new contract for another three years because of a ongoing strategic review. His contract ends june 30th. Budweiser brewing up an ad campaign taking aim at a lawsuit claiming its beer is watered down. The ad shows 71 million cans of Drinking Water anheuserbusch, inbev, sent to the American Red Cross for relief operations. That is the latest from the Fox Business Network giving you the power to prosper military contractors doing the painting automatic spending cuts taking effect with military cutting 46 billion in gross spending. Jeff flock with more and the effect it is having. J5 n this is a defense contractor, next stop, afghanistan for these parts of mass. You have two contracts, one from navistar, one from marine corps, what happened . They were canceled, leavitt was due to sequestration. Speak up about the board, obviously not doing too well today. The defense contractors doing too well today. You are a small guy, the defense contractors are more diversified, you are not. This was our main product line. Ashley this place was packed with people. All kinds of new stuff, it is now down to one line. We will be closing down wednesday. Look at those etf, the dow jones, aerospace index, the power shares as well, they are down. Not good for the defense contractors, maybe they can withstand it. Smaller Companies Like this one, also a marine himself, but they will be shut down as result of sequestration by the end of the week. Ashley jeff flock in missouri, thank you very much. Tracy in report finds tax bills for americas richest families of the highest they have been in 30 years. But the rest of america at historical lows. Here to weigh in on this of course fox news judicial Senior Analyst judge Andrew Napolitano. People filing tax returns and are screaming bloody murder because they have never been so high. The government makes an economic mistake when it raises taxes just a little bit too high because people who are able to control their income will be fair it or receive the income in other ways, paying the government less. Not only are the tax revenues down, but the Economic Activity generated by that activity is down because theres less wealth. Sometimes motivated by social interest, not economic interest and desire to take from the rich and give to the poor rather than a desire to add to the governments call me financially prudent way. A rising tide lifts all ships. It does not seem to accept the jfk logic, and Vice President s joe biden says this all the time, take from the rich to give to the poor because they have enough money anyway. Dont understand the sort of basic economics 101. Literally 101 level. Now lets talk about the moral argument. That is an argument that will fall on deaf ears except a small group of libertarians today unless a financial transaction is voluntary, it is immoral. Not give the person anything greater in return for that additional money that it took. Who has a higher rate to private property . The taxpayer or the Tax Collector . Ashley we expect so much of the federal government, dont they . We expect more than the founders dreamed, more than they can afford, intensely more from the federal government and the constitution authorizes, but when the government does things come it drives others out of the market. Government owns hospitals, roads, it drives out of the marketplace people who can do these things far more efficiently and less profitably than government. Tracy the wealthy control their money trying to get it over to do whatever they have got to do, right . The lower income barely pay anything. So it is a middle class that shoulders the burden. The increasingly larger and larger percentage of people in america who received either a salary or a portion of their assistance from the government, they have a natural interest in Big Government keeping in the Government People who will promise them a bigger piece of the pie. What happens when there is no pipe to cut up . Pie to cut up . Ashley time for stocks. Sandra smith of the floor of the New York Stock Exchange as the dow is on a comeback. Sandra the dow has come back, the nasdaq has come back, the s p 500 doing well. Take a look at these shares. We are talking alltime highs, as we speak it just touched about 818 per share. It has been a straight up story for google, a lot of analysts calling for 1000 per share now since google entered the 800 club. A familiar story, we heard a lot of that with apple, google hanging on to those games. Ashley thank you very much. Tracy will the brand is emerge unscathed . The analyst will weigh in on this next. Ashley a look at the winners and losers as we head to the break. The dow coming back in positive territory. Take a look at the winners and losers on the nasdaq. We will be right back. With fidelitys new options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity option. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now ge200 free trades when you open an account. Ashley jay leno turned 63 years old next month. Nbc may be ready to Start Talking about his retirement. Again. Dennis kneale has that story. Dennis last time nbc tried to make jay leno retire, the multimillion dollars debacle. And it didnt take. Now nbc will try it again. The Hollywood Reporter says they may announce the fall tv season will be his last making room for jimmy fallon to fill the chair. If that is news to jay leno himself, brace yourself for a year of awkward moments. Three years ago nbc tried to ease him out and it erupted into public spitting match. He moves to 10 00, failed in a big way, conan obrien walked away with millions in made money and a new life on tbs. Leno took back the tonight show. Nbc promised conan obrien he would take over. Now they may be promise in the job to jimmy fallon only a year or so early. But jay lenos contract expires next year and nbc cant afford to lose jimmy fallon. He is the youngest host, now 38. In fact the succession would set up a battle of the jimmys. ]ac jimmy kimmel wil luring fans unr 30. This lead falls to 10 among adults under 50, and jimmy kimmel is more viewers under 35. The question is if the mainstream late night crowd really want to watch a show hosted by a pup younger than they are. Johnny carson, 66 years old when he retired. Ashley itll be very interesting. Dennis good luck, nbc. Tracy who is still up at 11 30 . Im not. The jcpenney saga continues. Ceo ron johnson back on stand testifying in a bitter battle with macys over the Martha Stuart living products. That is the latest problem from the embattled ceo whose Transformation Plan hasnt really worked out all that well. Jcpenney reported earnings way below analyst expectations last week and samestore sales down a whopping 32 from the previous quarter. Leading a lot of people to ask how they can keep the doors open, what will happen, this is a soap opera. Kristin bentz is here. You say jcpenney screwed up when they took away the promotions. Right . I think we lost her. I will tell you, jcpenney screwed up when i took with the promotions everybody wants a deal. Ashley it all comes down to who says what, what the contract says. Saying i could sell to outside vendors. Tracy jcpenney has stars and stars and stars. The stock down 4. 5 . Ashley the bigger Broader Market on the dow, all very interesting. The sequestered hit on friday. The market these days hohum. Theyre very resilient to what is going on in washington. Tracy kristin bentz, i think you aryoure back with us right. We were talking about the promotions, they tried to go trader joes style, everything at a reasonable price. It didnt work. You cant just delete everyday low prices from the company like jcpenney. They adopted this fair and square pricing. They had no idea what that meant, so now they realize shocker, that customer wants to have a coupon and wants to know she is getting a deal, so they are reinstituting everyday low pricing. Tracy you actually say they have a superstar management team. On paper these guys can get it together. Absolutely. You have the apple discount and the target discount, so obviously investors are willing to let him screw up and most other ceos in my opinion would be out of a job by now. A stellar management team, and amazing executive from cocacola handling their marketing. All the kings horses and all the kings men cant bring jcpenney back together again. Ashley what is your theory on this whole Martha Stuart thing, how does this play out . Ron johnson was met with a mandate to bring jcpenney back, a strong Home Department it used to be. They sat together and tried to find a loophole in the contract with macys, which they thought they did, she is free to have freestanding retail stores. What does that mean . A freestanding retail store, i dont know. And if i were a betting woman, my money is on macys any day of week. Tracy the stock down 17 last week alone. Kristin bentz, thank you very much. Thank you. Ashley liz claman will be ashley liz claman will be taking us throe im a conservative investor. But that doesnt mean i dont want to make money. I love making money. I try to be smart with my investments. I also try to keep my costs down. Whats your plan . Ishares. Low cost and tax efficient. Find out why nine out of ten large professional investors choose ishares forheir etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, ris, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal