Transcripts For FBC Markets Now 20130312

Good afternoon. Welcome to a brand new hour of markets now. Melissa fighting for green. Dow struggling in to stay positive but the trading day is not over yet. Can we make it six Straight Record closes for the dow . Lori the case for why a rising tide doesnt lift all boats ahead. Melissa forging bipartisanship in washington. Freshman republican congressman joins us on his pledge of allegiance to the u. S. A. , not strictly to the g. O. P. Lori paul ryan unveiling the balancing act. House republicans roll out his partys plan to balance the budget in 10 years. What do democrats have to show for it . But first time for stocks now. Nicole, the dow is fighting for another record close today. Were not too far off the unchanged line, lori and melissa. The dow is down not even two points, nasdaq down almost a half a percent and s p 500 down a quarter percent but that wasnt before the dow hit another record day high here of 14,478 so getting closer to 14,500 but some of the experts that ive been talking to on wall street certainly sense that momentum has been dwindling and actually advising some of the aggressive traders to begin shorting the markets. Its showing a turn in sentiment here and that being said, we cant go any further without talking about the fear index. It was at lows we hadnt seen since 2007 breaking below 12. Here it is right now. At a level of 1244 to volatility anticipation is back. We dont want to leave out some of these dow components. While were seeing the dow under pressure with bank of america, caterpillar, g. E. , merck is a winner on the Dow Jones Industrial because of the drug vitorin to treat cholesterol issues and thats good news for them. Back to you. Lori thank you so much. Melissa since Small Business feeling more optimistic since february, its optism index grou nearly two points to 90. 8 marking the Third Straight month of gains and while optimism continues to improve, it still hovers near record lows. Many Small Business owners top complaint for february was weaker sales compared to prior months. They didnt have a great look on the economy. Lori thats an important point as well. So heres a question. Which comes first, the chicken or the egg or market rally or growing economy . Stocks in record territory today. Is the market climb misleading . The answer yes according to the next guest. Thank you for joining us this afternoon. First, give me your theory whats driving the rally. Well, i think what youre seeing is a global reallocations of equity funds towards the United States. When you look around the world, there arent too many places to go with your money where you feel comfortable. There arent unusual risks that you have to take into consideration. And even though you could question whether or not we have the proper political leadership, the proper focus as a country, we do have a flexible labor market, an economy thats continued to grow and has gone back above the precrisis level and the central bank is adding to a level of confidence in the ability of this economy to sustain itself. Lori before the jobs report released last friday, everybody was quick to chock up the dow in record territory to the federal reserve, keeping Interest Rates at the historic lows but that was a nice green chute to put it bluntly on the economy. We know that housing has been firming but youre not so sure that solidifying ever so slightly growing economy is really whats moving the stock market. I think if you look at the equity market in general, weve lagged the Business Cycle and its lagged the earnings cycle. Earnings got back to the precrisis level well over a year ago. The economy got back to the precrisis level ttree or four quarters as well and just now the market has gone to this level. Look at the payroll number that you mentioned that came out last friday. It was a good number. Same token, january was a bad number. Average the two, payroll is running 30,000 workers less per month than the quart of last year. I think its a reallocations of money. Instead of all the money going to bonds, the money is going to bonds and equities and i think were seeing a Global Investment flow into u. S. Equities as well. Lori best of the worst investment strategy. So where do we go from here . Some people have suggested an improving economy might be bad for the stock market rally if you look at the fed and its ever accommodating policy. Taking the foot off the gas, higher Interest Rates could cause a sharp left turn for the rally, no . Well, i think youre right. I think higher Interest Rates would be a problem but i think youre not going to get the higher Interest Rates. I think the fed is locking at the jobs number today really showing theres been no acceleration in the labor market the last two years and what youre really going to see develop this year is weve gotten the equity market up about 10 . Its a good return. Its time for a little bit of a pause and a little bit of a correction and then well look to build the base again and if the economy does happen to outperform in the second half of the year, we could move above 10 getting towards a 15 type rally. If the equity market stalls again as it has the last two years during the spring, well be up still 10 . Lori so getting back to the chicken or egg, will the stronger equity market ripple down and ultimately boost the economy . I know you have about a 1 1 2 growth rate for this year or will this disconnect widen between the economy and the stack market . I think it goes to well the wealth effect is a valid argument. I think prior to 2000 there was a wealth effect off equities but in the post 2000 environment, no one perceives it as sustainable wealth and therefore, theyre not spending out of it. Same is true with housing. I dont think anybody will look at the gains in housing number and say this is well if i can borrow against and improve my lifestyle as opposed to this i feel better but im not going to spend out of it. Lori great way to splin explain it for us. Thank you. Melissa signs of oversupply and a strong dollar. Now a major wall street firm is saying the pullback has gone too far. Is it time to get back in . Jeff is talking to traders. What do you think . All you guys talk about is stocks these days. What about commodities and now Goldman Sachs . Im talking to phil saying, yeah. Wait a minute. Maybe you sold us off too soon. Take a look at the market today. Look at oil. Look at corn. Look at gold. Everything is up today. Yeah. Weve seen quite a bit of a rebound and i think that a lot of people are reassessing some of their equity positions. Equities have run up a significant amount. I think they are due for a correction. Imming people are too comfortable with the trade and you have to go to the supply and demand fundamentals of some of the commodities. Lets look up close and personal on markets like oil, for example. Take a look at the commitment of traders report which is something that talks about who is long and who is short. Longs increased by oil by over 1,000 contracts. The shorts increased by 9,000 contracts. Yeah. The key to that is u to break down the fundamentals of the oil market. Really, the supplies are continuing to build. Were expecting another two million barrel build tomorrow and our dependence upon opec and the Oil Production boom in the u. S. Is continuing so the supplies are exceedingly great and the demand is just stagnant right now. And then the market may be too far off. I leave you with copper which is another one thats bouncing big today. Look at todays trade on copper and then look at the commitment to traders report, the longs decreased by over 1200 contracts in the last week. The shorts increased by almost 8,000 contracts. So when you start to look at the numbers, you see where the money is flowing, what the the positions are and maybe thats a time to get back into this. Melissa absolutely and you were showing there the bottom of the screen, Goldman Sachs saying that copper is going to go up 16 in the next six months so that ties into what you were saying. Thank you for coming on. We appreciate that interview. Thank you. Lori House Republicans presenting their 2014 Budget Proposal today. A plan that will cut 4. 6 trillion in spending the next decade. Rich, we know this is not the first but the second budget care n care of congressman ryan. The democrats, zero. Right . I was going to say remember that budget that chairman budget proposed last year. Its largely unchanged although in some areas he does cut a little bit more. Lets get to the cuts first here. Health care programs cut or the growth increases. The rate of spending increases over the next 10 years, cut by 885 billion. The president S Health Care law cut by 1. 8 trillion. Pell grants, factor in interest savings and thats another 700 billion in savings the next 10 years leading to a surplus by 2023. Ryan budget keeps january tax increases. 600 billion agreed to in january. It eliminates most of the president S Health Care law except for the 700 billion worth of cuts to medicare and overhauls medicare and medicaid that democrats call a voucher system. It also includes tax reform of a top rate of 25 , a low rate of 10 by closing unspecified deductions and for now, a familiar fight in washington. What we believe in this divided government era, we need to put our vision. We think we owe the country a balanced budget. We think we owe the Country Solutions to the big problems that are plaguing our nation, a debt crisis on the horizon, a slow growing economy, people trapped in poverty. If theyre going to insist on doing this simply by cutting our investments in education and violating our commitments to seniors, were not going to get there. So its all tomorrow and the Senate Budget Committee Chairman will release a budget there, senator murray expected sometime tomorrow evening for the first time in four years, democrats are going to try to push a budget through the u. S. Senate. Back to you. Lori well see what the democrats come up with. Been hearing from a lot of pundits that both versions might be dead on arrival . Well, you know, its probably going to be a little tougher to get the Senate Version through the u. S. Senate especially through the committee there. Likely House Republicans pass their budget but if the house passes their budget and the Senate Passes their budget, this is the way its supposed to work. Two different parties controlling two different chambers and then get together and negotiate those out. Well see if that actually happens. Theres talk of it but weve been watching the process the last few years and that hasnt happened at all. Lori i understand theres more breaking news on the Senate Democrats proposal. This is coming from dow jones right now. Senate democrats will propose raising taxes by 900 to 1 trillion the next few years, mostly on wealthier folks and corporations. Weve been asking questions to the Senate Budget committee all week and havent gotten any responses. Lori thank you for that. Blue dogs joins us with his take on the plan. Melissa is bipartisanship a dirty word . One of our congressman is fed up with the infighting. Mark wayne mullen with what hes doing to change d. C. Ahead. Lori with the stock market cruising a little lower, lets check commodities. Gold today has a nice popup. Silver and copper also about a 1 gain right now. Back after this. Thank you orville and wilbur. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Melissa as we do every 15 minutes lets check the markets. Nicole petallides on the floor of the New York Stock Exchange. You are watching one of my favorite sectors, the energy sector. Thats right. Always a good one to keep an eye on. Were, oil, for example, is to the upside. Watching dow component chevron hitting a new high, a new multiyear high for chevron. You can see it down. This is oneweek chart. Today, open it really did trade to new highs today. So that is something worth noting. In the meantime i want to look at the Exchange Traded fund which is really compilation of multiple energy names and chevron is the second Largest Holding in this fun. You can see here that it is actually maintaining an up arrow and actually hitting a 52week high as well. So chevrons news and the moves weve seen with chevron and we should also say that chevron is saying it is wellpositioned to achieve its long term targets of 3. 3 Million Barrels of oil and gas by 2017. Were seeing expansion in venezuela. The company is hosting an analyst day and this is helping to put the energy fund doing well. I looked at other names likes exxon and halliburton and schlumberger and all the names are doing well and helping the Exchange Traded fund to do well. Back to you. Melissa thank you, very much, nicole. Time to make money charles payne. If you did at his last recommendation you might have earned a few bucks. Too bad we didnt do the segment yesterday. Diamond foods gave up gains. They have the Snack Division and the nut division. The Snack Division was pretty good but the nut division took a huge hit down 30 . That is where their scandal came from. You know the accounting irregularities. It is down a lot but i still think it is a hold down here. You have got a couple firms came out to defend it. Very lukewarm defense. Bmo says the target is 14. Rbc raised the target to 16 from 15. I still think this is overreaction. When people invest in stocks that have this sort of reputation, you have to expect bad news to be overamplified on the downside. The good news exirobot, roomba, you traded with me an. They are rocking. Pulled book a little bit. The Company Raised its guidance significantly, as much as 20 cents before the high end was 7 cents. Didnt change revenue much which is interesting. Home and Defense Security are phenomenal. I would definitely stick with this one. This stock made a series of lower highs. I would like to see close above 24. That could signal a breakout. Nice move. They both did very well. Melissa you wouldnt take money off the table from i robot . 25 i would tell them to take half now. At 25 you definitely scalp some it has been there today. Great question by the way. Thanks, guys. Lori quick programing note. We talked to the big business of vice all day, this friday on fox business at 1 00 p. M. Medbox ceo joins us. You know what his company does . Makes marijuana vending machines. Remember it is vice day on fbn. I will in the miss it. You have to see it to believe it. Melissa still no sign of president obamas budget which is more than a month past its due date. But in the house, republican congressman paul ryan proposing a budget that would balance in ten years lou dobbs weighs in on that. That is coming up. You are what you like. Well tell what you a simple Facebook Click could say about you. 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 for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charg and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. At 23 minutes past the hour, he will low hello, everybody, im Uma Pemmaraju with your fox news minute. The conclave is underway after a mass at the st. Basilica. They are locked in the Sistine Chapel to vote for the next pope. A first ballot could be cast later this afternoon. 77 votes are required to elect the next pontiff the Catholic Churchs 1. 2 billion members. A new York City Police officer was convicted of a plot to kidnap and cook and eat women. The case known as the can ball cop. 28yearold Gilberto Valle was found guilty of using a Police Database to gain personal information about possible targets. He now faces up to life behind bars. In colorado a judge enter ad not guilty plea on behalf of accused theater shooter james holmes. His lawyer said he wasnt ready to enter a plea. The judge says he can change his plea later if he so chooses. 12 people were killed and 20 injured in the july shooting attack that took place in an aurora movie theater. That is a quick look at headlines making news now. Back to you. Lori thank you, Uma Pemmaraju. Well watch the Sistine Chapel to see what the color of the smoke is one of these days. Hopefully sooner rather than later. In eyep event liking something on facebook may be more than a thumbs up. Shibani joshi is here to explain. This is an interesting one, lori. Be careful what you like. That came out from the university of cambridge and microsoft research. In fact they were able to conduct a massive study of 58,000 people on facebook looking at the things they like and the things, their activity overall on the social networking site. What they found was pretty astounding in that even though you kept certain things about your identity private, based on your liking activity they were able to learn a whole lot from you. Here are some things they were able to glean out of your liking activity as a whole. They could glean things whether or not you smoke cigarettes, you drink alcohol. Whether youre a democrat or a republican. Even whether or not youre a male or a female. Again this is not even people putting up on the face book site, lori, whether or not they are female or male. They looked at their like activity and they were able to figure that out. Lori do someeof the connections seem pretty random to make conclusions about people is that what youre getting at here . It is crazy, the conclusions they were able to draw based on things that you checked, you liked or you didnt like. Basically heres an example. If you like Oklahoma State university, if you liked the bachelor, if you like espn, the data shows you are conservative. Also, theyre able to do deduce things about your intelligence. So they think that youre a smart, you have iq if you like curly fry, lord of the rings and even Morgan Freemans voice. The fear here, that employers or other outsiders may use this data and against you for evil and not for good. If you want to check out what facebook and what can be learned about your liking behavior, you are what you like. Com. That is the website. You are what you like. Com. You can show and figure out what the world sees about you. Lori have you done that profile for yourself. Im a little afraid. Melissa lord of the rings . Come on. Thank you so much. Curley fries, exactly. Lou dobbs is here next as House Republicans stick to their guns on the budget. Lori congressman paul ryan unveiling his balancing act he calls it. A bid to balance the budget in ten years without raising taxes. Well get lous take next all stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Rify and lock. Mmand is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. 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. I took my son fishing every year. We had a great spot, not easy to find, but worth it. But with copd making it hard to breathe, i thought those days might be over. 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Lori stocks now as we do every 15, back to the floor of the New York Stock Exchange and Nicole Petallides. They are searching for direction. Down but as low as it has been. Not up, thats for sure. What were seeing a market taking a little bit of a breather. That would be six days in a row of intraday market highs for the dow jones does trees. Record highs for the dow. Were down nine points. S p 500 just over one quarter of 1 . I wanted to bring you right over to the jcpenney post. Look at jcpenney which sup 5 here. Were looking at jcpenney today not for samestore sales. Not for any new promotions. Speculation resurfaced once again whether or not ron johnson is finally out. He came over from apple but jcpenney has been under intense scrutiny because they havent done well and they have the lowest annual sales in more than two decades. But the company has come out and spokesman there saying ron johnson is not quitting or resigning from jcpenney. He has no plans to do so but the rumors are false. It was announced and it gave the stock a big pop. Back to you, we shall see. Thanks for the update, nicole. Melissa house chairman paul ryan rolling out his budget this morning. The proposal plans to balance the budget within ten years, lowering rate of spending by 4. 6 trillion over the same period. It also proposes total repeal, president obamaS Health Care law. Which makes it pretty much dead on arrival. But it is a starting point i guess for negotiations. Time now, for lou dobbs. Wouldnt you like to be in that meeting when paul ryan says to the president , you know. Melissa oh, by the way. This is just our initial bargaining position. We eradicate your signature legislation that became law as a result of your hard efforts reversing 60 years of government policy, taking over 1 6 of the economy. I think this whether dead on arrival it will probably be a tricky unjet to move forward. Heres my problem with it. And i salute the republicans for their leadership on the issue. I think it is terrific but there has to come a point at which they simply put forward a proposal that isnt dependent upon the democrats completely reversing themselves on obamacare. You know, if theyre going to, they dont, if you add it all up, they dont have the votes to repeal obamacare. Therefore 1. 8 trillion of this Budget Proposal is purely, i mean it iseth theyre real, ethereal, it is fantasy. The rest of it why not move forward with . Lori let me ask you, weve youve been on with melissa and me when we heard from paul ryan his first budget. Didnt do enough. Only five years. Lori doesnt raise taxes in ten years that is improvement. Thats why i said i salute the republican leadership. I love the fact that, i dont know when we took to calling these things ryan budgets instead of republican budgets but if that soothes everyone i will gladly call it a ryan budget. The problem well not hear from them again because of the way it is constructed. And it is time to move beyond that. Lets take a look. He has some terrific ideas here. Moving 900 billion from the health care spending, a trillion in mandatory cuts. These are solid ideas. And we have to get there. But,. Lori this is the wrong strategy . Well i think it is, i think it is the wrong strategy and i dont think, you know, as president obama is fond of reminding republicans, election have consequences. Melissa yeah. There is no way to overcome this in the senate. No way. Melissa i mean it is also, feels a lot like the grasshopper and the ant. He is out there and he is the ant over and over saying winter is coming. Weve got to cut spending. Stop playing outside in the sunshine you grasp whoers. This is all fun and games for now but the day of reckoning will come. I feel like the day of reckoning is coming. I think youre exactly right, melissa. I think the republican party, paul ryan in particular, they have to learn they can not become the one note party. Melissa . Yeah. Theyre doing that over and over and relentlessly so. Be responsible. Do what you can but quick hectoring, quit lecturing on the budget and for gods sake quick thinking talking about a balanced budget is the same thing as intelligent governance and leadership because we need to talk about the quality of life, the life that americans are boeing to lead in very direct, straightforward terms rather than this just mindnumbing budget nonsense day after day. Let it go the president is the president. If he wants to do this, there is not much more than what you can do legislatively to stop him but youre sure as hell not going to win an intellectual battle of wits when you have not the political power to assert your view and your judgment. Melissa there you go. Thank you, lou. Thank you. Melissa you will see lou here every day of course and at 7 00 and 10 00 p. M. Eastern tonight. You can catch him with congressman greg waldon, chairman of the National Republican congressional committee. He talks lou about the budget and did i say mindnumbing . I meant exciting. Melissa you always make exciting. You get to feeling better, will you . You are being heroic here. Melissa it has been worried about you and her dog who had surgery. Lori shoutout to the bernice. She appreciates it. Melissa much more focused on bernice than my cold. Thank you, lou dobbs. Does crime pay . Looks like it might for jordan bell four. Charlie gasparino with exclusive detail on the payout for the white color criminal for Martin Scorseses new flick. Melissa we saw the first martian rock a month ago. Now scientists are rerye vealing what is inside. [ 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 knknowt 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. Spending the day with my niece. I dont use super poligrip for hold because my dentures fit well. Before those little pieces would get in between my dentures and my gum and it was uncomfortable. Even wellfitting dentures let in food particles. Super poligrip is zinc free. With just a few dabs, its clinically proven to seal out more food particles so youre more comfortable and confident while you eat. So its not about keeping my dentures in, its about keeping the food particles out. [ charlie ] try zinc free super poligrip. Im Cheryl Casone with your fox business previous. Global economic challenges and uncertainty will continue to contribute to subdued hiring during the Second Quarter according to a new survey by manpower. The forecast from europe and outlooks from italy and spain matching the weakest employer forecast ever reported from there. Shares of red hat are under pressure following the news of a downgrade. Citigroup downgraded because of slowing growth. Gas prices fell after climbing more than 50 cents since december. The price of a began love regular gasoline dropped five cents down to 3. 73. The average price is still up four bucks a gallon in california, alaska and hawaii. That is the latest from the Fox Business Network, giving you the power to prosper lori how about this . Crime does pay particularly if youre the infamous wolf of wall street jordan bell four. Martin scorsese is doing a movie about the life of crime. Charlie gasparino, has the latest. Only a matter of time they do a movie on your life. Which half of wall street would say it is criminal. Here is what we did. Last time i came on here, he was the guy that ran stratenoakmont, probably most notorious penny stock operator ever. As part of the sentence, came down in 2003. He spent 22 months in jail. He owed 110 million as part of victim restitution. I surprised at the time because i didnt speak to his lawyer, he wouldnt keep any money from the movie scorsese about his life. It came from the world of wall street which chronicled his life of crime and drug abuse. I was wrong. Further reporting yesterday, and, i spoke with mr. Bell for thes lawyer. Bell fort. Government cant take it all according to his lawyer despite the fact he has 110 million restitution. What we know that belforts lawyers and prosecutors from the Eastern District, u. S. Attorneys office from the Eastern District where he was prosecuted, remember strat10 00 month was a long island based form, Eastern District of new york in terms of prosecuting. They are locked in discussions how much of the restitution, if anymore he gets to pay back. From which understand he has paid 11 to 15 million into this. What jordans lawyers are doing, listen if the guy drops dead tomorrow you will get less money than if you cut this deal today and let us keep some money. Let this guy have a living. One of the proposals on the table i understand, if you cut this deal, then we may give back the movie money. Theyre going to use it as leverage. If you dont cut the deal, you never know what you will get back because under the law you cant take more than 25 of the guys salary each year. So that is what we are right now. It is really interesting. He is making money off this. He earned a Million Dollars of off of this movie. I will tell you this, there are a lot of, im going to say it bruntly, pissed off people that this guy is earning a dime for what he did. Lets put this in perspective. Before Bernie Madoff was criminal of the century, there was Jordan Belfort and his partner danny who ran stratten oakmont. These were not good guys. They got off on a fairly light sentence, 22 months in jail. One of the reasons why they helped the feds nab other criminals that were involved in their stock scheme including a guy named steve madden, who is i guess the, if you know anything. Lori the shoe guy. I dont. He was involved in this. Melissa i thought you couldnt financially benefit from your crimes . You can. Lori there you go. Im telling you, maybe there is son of sam law but this guy is. He has got the Million Dollars. We should point out the government is starting to step up its efforts regarding belfort. Last year according to his lawyer he received some sort of a royalty payment from the studio. It was 125 million, excuse me, 125,000 and the government went in and did a restraining order and took that but they cant get everything apparently. This is an interesting situation. Ill tell you, if this movie does make it, it has huge stars. I mean,. Melissa picks pictures are everywhere. Matthew mcconaughey, playing one of the stockbrokers, real life guys i know, steve hannah. Belfort is played by. Melissa leonardo dicaprio. His partner is played by jonah hill. This thing could be big. That is when it becomes a huge issue. What we know he has a Million Dollars of this in his hand. It is a matter of contention and theyre working with the government to lower that restitution so he keeps some of it. Lori charlie, thank you. Melissa as we do every 15 minutes, lets check the markets. Nicole petallides on the floor of the New York Stock Exchange. She is looking at major movers. I am indeed. Were looking at cabelas moving to the upside, actually moving to an alltime high, right now up nearly 12 for cabelas. When you think of cabelas you think of outdoor gear and sports and fishing and hunting. Concerns about stricter gun policies helped drive their demand. They had better than expected outlook for the First Quarter. Samestore sales and expectations than what they were saying. That is why you see capellas getting a nice pop. After a runup yesterday it is down 4 1 2 . There were ideas that they could be a takeover target, singh gachlt and one. Analysts talked about the idea that yahoo might buy zynga. That idea is unfounded, in quotes, according to mccrary. Zynga had a tough year. No different, down 5 on the day. Melissa and lori, back to you. Melissa nicole, thanks so much. Lori one of the countrys top law schools, believe it or not is now cutting down ad admissions. Northwestern universitys law school just ranked the number 12 school in the nation is reducing size of its incoming class by 10 . That is roughly 20 to 25 students. The schools dean attributes to growing debt among legal graduates and their inability to land jobs after finishing school. According to the most recent data on northwesterns website, nearly 5 of its 2011 Law School Class is unemployed. Wow. Melissa wow dont need that many lawyers. Lori sign of the times. Melissa so expensive. Lori i think you summed it up. Lawyers are not in in demand as they used to be. Melissa is bipartisanship a dirty word . One congressman is fed up with the political infighting. He is leading the fight. Oklahomas Mark Wayne Mullen is next. Melissa freshman congressman Markwayne Mullin appealed to bipartisanship in his speech on the floor of the house last week. Mr. Speaker, i come to you today not as a republican or a democrat but as an american committed to Unitee States constitution. I regularly hear from my constituents fed up with the partisan fighting. We pledge allegiance to the United States of america, not our political parties. Melissa but can Congress Really come together this time to get a budget deal done . Representative mullin is republican from oklahoma. He joins me from capitol hill. How did it go, congressman . Immediately when we walked off the floor people from both sides come to us. Spot on. Appreciate you taking a stance that way. Really as a whole the membership i feel like were coming together. Granted im a very optimistic individual. My glass is always half full but i believe if we are truly willing to put Country First and put party second we have an opportunity to get this country back on track. I try to remind people it has nothing to do with us or our reelection. It has to do with our kids and grandkids. It is our responsibility we hand them Something Better than was handed to us. Melissa do you feel that is happening in the current budget process . Lou dobbs was on here a short time ago, by virtue of putting forward a budget we have right now, saying that it depends on obamacare being appealed, that is not a step forward with democrats because that is in of itself is nonstarter . Most important thing we have to be able to get our spending under control. You heard the white house come out and say that their budget isnt going to balance. You hear the senate not giving when if ever their budget will balance. Theyre looking at obamacare and realizing this country cant afford it. We cant simply go out there and do something we dont even know what the cost is. Our spending is out of control right now. If we implement obamacare it is going to bankrupt us. Were right on the verge literally, i feel like were on the tipping balance going too far over and not being able to bring the country back into stability. Melissa but whether or not mathematically thats true, and certainly it makes sense, it seems there is no way to get democrats to agree with that especially the president. This is his signature legislation. Well, and see, what im talking about with the members, the members, theyre talking about this. They understand. One tinge. Melissa really . Both sides of the aisle can agree, yes, that we have to get spending under control. Sometimes the leadership maybe is not agreeing but the members themselves, when our in our conversations, our private conversations we understand that we have a responsibility in front of us. If the country cant afford it at this time, then look at something we can. What paul ryans budget did do, it put Something Else in place. And if you have the opportunity to look at it, realize, were not just totally bunting or punting National Health care down the road. Were saying put it with something that will actually work that this country can afford that will take care of those individuals that we really want to take care of. Melissa congressman, you look at some other comments and things, for example. You look at sequestration, the 85 billion there. You point to the fact that the federal government made 1150 billion in improper payments to people who werent entitled to receive them or havent provided documentation. What is that specifically and how did that go over . Well, you know as a business owner, i have, i have dealt with balancing, balancing a checkbook literally every month. We have eight companies that are multimilliondollar companies. The only way you can tell if you paid something improper you have to identify where it came from so the government in 2011 spent 115 billion in improper payments. 108 billion in 2012. And it is continued down that same track. Theyre not willing to address it because its, either, one it is not politically reasonable for them to do it, or they just simply want to turn the eye and point fingers at someone else. That is what i consider a lack of leadership. These were improper payments to individuals that had no business receiving it. Either they were here illegally or didnt fill out the paperwork properly and the country is still cutting the individuals checks. Tell me anybody, i dont care if youre republican or democrat that think that is a good idea. Melissa i want to talk to you about the xl pipeline. You have to come back soon. I appreciate it, thank you. Coming up tonight on money, a congressman todd roqita will join me to talk about the gop Budget Proposal. What is different from previous budgets and what is missing. That is 5 00 p. M. Er eastern here on fox business. Lori we cant sign off without bringing you this news alert. Was there once life on mars . Nasa announcing a rock sample recovered by the curiosity rover says it could have contained microbes. They had nitrogen, phosphorus, carbon, some key ingredients for life. Michael mayer says fundamental quote for this mission whether mars could have support ad hospitable environment. From what we know now the answer is yes, in science and astronomy today. Melissa we love science. Lori we do. Melissa american Small Business owners are still concerned where the economy is headed. Fib chief economist bill dunkelberg weighs in next with tracy byrnes and ashley webster. Dont miss it. Dad, id put that down. Ah. 4g, huh . Verizon 4g lte. 700 megahertz spectrum, endtoend, pure l build. The most consistent speeds indoors or out. And, obviously, astonishing throughput. Obviously. You know how fast our home wifi is . Yeah. This is basically just asast. Oh. And verizons got more fast lte coverage than all other networks combined. Its better. Yes. Oh, why didnt you just say that . Huh what is he doing . Markets taking a breather after five consecutive trading sessions closing at records for the dow. Melissa well have to rally if we want to make a record again. Ashley almost become hohum. Another day, another record. Tracy thought that little bit about mars was interesting. I can never hear enough about that. Melissa will never get rid of lori. She is so excited. Lori i hope to go. A lot of people accuse me being off on mars anyway. Tracy you might have relatives. I think so cool some day instead of going to disney they go to mars. Lori space tourism. Melissa see what the food is like. Dont want to commit. Lori take it away guys. Ashley maybe well hear whether there is a new pope. Tracy i signed up for pope alarm. They will text. Pope alarm. Pope alarm. Com. Everyone should sign up, and you get a text. Ashley im waiting for the smoke. Good afternoon, im ashley webster. Tracy im tracy byrnes. I did sign up for pope alarm. Stocks taking a breather after climbing higher for last several sessions. Down eight teen points. One more thing would make the recordsetting streak the longest in 15 years. Ashley american Small Business owners gaining confidence but still very cautious about creating jobs. So what exactly is holding them back . National federation of independent chief economist bill, the dung, dunkelberg is here. Tracy s Corporate America pension gap like ford missing billions owed to retirees . What are they doing about it . What were they doing the last four years when the market was on a tear . Why investors should pay close attention. Ashley time for the dow. Stocks lower, pretty much in the same range pretty much from the getgo. Nicole petallides from the floor of the nyse. Not too far off from the unchanged line however we did squeeze out another record alltime for the Dow Jones Industrials, again for the sixth day in a row. However as you noted it is pulling back a little bit. It is down 17 points. Nasdaq composite down half a percent. The s p 500 setting a new record intraday high, at least over five years. Not an alltime high. Last five years or so. So the s p also setting records itself. Wanted to take a look here also at the s p 500 over the latest week. Were watching the Technology Sector that is hard hit. Telecom is faring among the best in the ten industry groups. Were watching the vix which moved back above the 12 level. Yesterday we noted it was below 12 and at lowest since 2011. Merck and unitedhealthcare are on the downside. Bank of america, caterpillar and general electric. Looking at the vix. I hope we managed to get that up there for you so you can see the pop of 9 . Well see what happens here but we may be snapping a nice long winning streak after seven Straight Days of gains. Back to you. Ashley we shall see. Nicole, thanks so much. Well be back to you in 15 minutes. Tracy americans Small Business confidence rose slightly in february but still remains stuck in recessionary territory. That from a new survey from the National Independent federation of business. Nifb economist bill dunkelberg to talk about the growing gap. I cant believe a month has passed since you were last year. We cant get the survey off the ground, can we . P we cant. You know, tracy, two points is not a bad gain. The problem is though that it didnt get us anywhere. It certainly wasnt a breakout. The index value is 90. 8 for february. The average index for the 44 months weve been in recovery is 90. 7. Weve got a whole. 1 of a point i guess. Were just not going anywhere and the main concern i think is people still dont have a lot that the economy is going to improve. They are not going to hire, theyre not going to other inventories and they will not expand their businesses. Ashley bill, what about washington . We have obamacare of course, i would imagine this is a big decider for the businesses if they go over the 50 employee limit, the Health Care Costs associated with that. Is that a big reason were not seeing hiring or expansion we would like to see . Well, i think that will be a holdback for some of them, ashley. It is, but remember, 90 of the employer firms out there have fewer than 20 employees. So theyre a little ways from 50. They would probably love to be at 50 and have business that makes them go to 50 but they dont. Nonetheless they look at a cost of an employee once this comes along. The mandatory coverage you have to give them. Theyre thinking more, should i get rid of a fulltime employee and replace them with two parttime employees so i can avoid some of the costs that obamacare will impose on me . That is much more efficient, sorry, inefficient way to do business have two people do the work of one. Hard to manage that. Tracy i thought what was really interesting from the survey results, current job openings scored 21 . 21 of the businesses surveyed they have current job openings, but only 4 said to increase employment. So they need the help, but, to your point, and ashleys point, they will not take it on, are they . They arent. You dont hire someone until they can bring enough value to at least pay for their wages. Theyre not seeing that. We had a net negative 28 of the owners say that they expect Business Conditions to be worse six months from now, than better. Thats a terrible number. Very few of them expect the real sales volume to go up. So there is no real reason to hire. And of course there is no real reason to order inventorirys either. So the manufacturers will not get the orders. We had a net negative 1 plan to add inventories. That is up from negative 7. Yea, that is good improvement. But we need to go farther. We need some oomph there and were not getting it. Ashley bill, what about access to capital which is so important . Other than the traditional option to go into a bank and getting a loan, im hearing there are tighter restrictions on credit cards and home equity loans . These are basic things Small Businesses tap into to keep afloat. Are you hearing props about the credit side of things . Well, overall were not getting a lot of complaints. Only 2 said that credit was their top business problem. Thats a record low, 40year record low number. When we asked them if their credit needs were met, 29 said yes. All my credit needs were met. 7 said no. But the lowest number we ever had is 4 back in 2000. Were not far from that. 51 said, who wants a loan . If you add to that 13 didnt answer, that is 2 3 of Small Businesses are not interested in borrowing because they dont know what to do with the money. Tracy we have only a few seconds, bill. We saw payroll taxes go up. We saw gas prices go up. Did either of those affect the survey at all . They did in the fact that in a sense Consumer Spending hasnt gone up a whole lot. That is the key. Taxes are the worst thing it happen. Much worse than a cut in government expanding when you talk about expanding the economy. Tracy interesting to see if that affects the survey Going Forward as we settle into all that. Bill dunkelberg with nfib. Thank you. Tracy see you next month, sir. Ashley thank you, bill. House republicans unveiling their 2014 Budget Proposal today. The gop plan is looking to cut over 4 trillion in spending over the next decade without adding any additional tax revenue. Im sure well hear from the democrats on this proposal but rich edson on capitol hill with the details. Rich . Already a busy day here on capitol hill. President obama is meeting with Senate Democrats as we speak. He will return to capitol hill tomorrow and day after to meet with different factions on capitol hill. Earlier today Budget Committee chairman paul ryan coming out with his budget much like the budget released last year that was vilified by democrats during the 2012 campaign. It does cut 4. 6 trillion worth of spending over the next decade. It balances the budget, creating a surplus by 2023. How does he do it . By cuts. He cuts 1. 8 trillion from the health care law. Health care spending 885 billion. Other types of mandatory spending, food stamps things like that cuts 962 billion. As far as interest is concerned, savings are about 700 billion. He counts 700 billion worth of savings from the medicare cuts that are written into president obamaS Health Care law. He does include the 620 billion worth of new tax revenue agreed to in that january debt deal. Now both sides, democrats and republicans are debating the importance of a balanced budget. We know that this debt and this deficit is hurting our Economy Today and destroying the future tomorrow. This is a specific plan to show how to get it under control. Its our vision for a progrowth, upward mobile society. This is the alternative to balance. It results in unfair tax hikes on the middle class americans and results in undue burden on middle class americans through the cuts envisioned. Senate democrats are up next. Tomorrow Senate Budget Committee Chairman patty releases her budget, reportedly raises taxes on wealthier americans, closes loopholes to a tune of a trillion dollars next decade. We have several requests and comment and clarification to get details of the budget from her office and none have been returned. President obama, the white house saying he will release his budget the week of april 8th, a couple months late. Back to you. Ashley so it goes. Rich edson on capitol hill. Rich, thank you very much. I wish i could be a couple months late for something one day. Ashley doesnt work like that in the real world. Tracy coming up, filling the Corporate Pension hole. How companies are scrambling to find billions of dollars they promised to retirees. Ashley losing its fizzle. New york city ace soda ban is falling flat after it gets blocked by a judge. Well tell you why many Business Owners are toasting that decision. That is coming up. Time to get a check on oil, just moving up slightly higher. 90 bucks a barrel. It has been a slow climb upwards. Well be right back. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gasurbines are now powering some of americas biggest cities. Siemens. Answers. Executor of efficiency. You can spot an amateur from mile away. While going shoeless and metalfreen seconds. And you. Rent from national. Because only national lets you choo any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. Now this. Will work. [ ale announcer ] just like you, business pro. Just like you. Go naonal. Go like a pro. Tracy time to make money with charles payne. He is ready to brag a little. Back in april he picked outdoor outfitter cabelas. This stock is exploding up 40 since he picked it. Everyone thinks there is a ban on guns. Heres the interesting thing. Ashley or the economy is so bad they will go off to the woods and live a simpler life. There is combination of both of them. We had a great conversation. I remember you agreed with me, that this is better play than the pure gun play. That actually turned out to be. It is bittersweet because subscribers will make progress. We were down 12 today. It is a phenomenal story up 12 . They upped their guidance today and should beat the street by ten to 15 cents. I like last time they reported obviously ammo and firearms were really fantastic. Samestore sales were up 12 . Even without that, at a normal rate samestore sales would be up 5 . One thing i hadnt thought about, all the new people going to the store for the very first time, more than likely they will be back, and repeat customers. They do hunting fishing, boating, camping, atvs, clothing. Insiders are nibbling. Theyre not buying a lot of stock but nibbling at a stock. If you werent a knucklehead like me already sold it, hang in there. Ashley got plenty more room to the upside. Who knows where the top is on this thing. Tracy you made money on it . Absolutely. We made money on it. Of course we know bulls making money and bears making money and pigs getting slaughtered. Seems like a nobrainer to hold the thing. Tracy i think youre right. Once people go into the store and they say, you know what . Say but other people will. Tell you after the last hurricane you almost said it. Tracy that is true. More like i need a boat. I need a bigger boat. [laughter] charles payne. See you guys later. Ashley thank you, charles. Can see you camping. Tracy no one can. Ashley where do you plug in the hair dryer . It is a quarter past. Time to check the markets. Nicole petallides. Im sure nicole goes camping once in a while . Tracy yeah, right. Lets do a show, camping with tracy. That could be the show. Tracy reality, tv. That would be so bad. You could not pay me enough, nicole. You could not pay me enough. Oh, my god, i would love it. Talks about stocks here. Drug index looking to the upside. We have dow components, pfizer and merck making news. We see divergence. Merck is gaining 3 and pfizer pulling back. Talking about pfizer. You may be more familiar with the z pack. Now findings from the fda that it can be potentially fatal with irregular heart rid rythyms in with some patients and irregular activity in your heart and that could eventually lead to fatalities. Obviously not a good report. Weve been seeing pfizer selling off throughout the day. On the other hand you have merck with vytorin with cholesterol. When we talk about cholesterol, Many Americans ears perk up because obviously something people in america deal with. An independent monitoring board allowed it to continue the trial assessing vytorin. Some hoped they would say, hey, it is great. They will continue through 2014 and findings have been good and have been safe. Back to you. Ashley nicole, thank you very much. Well be back in 15 minutes. Tracy coming up what is the markets next move . Well hear from one strategist where one stock has room to grow this year. Ashley the block of new york citys soda ban, will mayor bloomberg win the fight to bring it back though . It is not going away. Look how the dollar is moving against these foreign currencies. The euro is down against the dollar. The pound is down against the dollar as is the canadian dollar. Well be right back. At 20 minutes past the hour, hello, everybody, im Uma Pemmaraju with your fox news minute. The papal conclave is underway. 115 electors are locked in the Sistine Chapel to have a vote. 77 votes are required to elect the next spiritual leader of the catholic church. In colorado a judge entered ad not guilty plea on behalf of accused theater shooter james holmes. Holmess lawyer says he is not ready to enter a plea just yet but the judge said he could change his plea later if he so chooses. 12 people were killed and 70 others were injured at a july 20th movie attack at an a record can, theater. Michael vick is canceling his book signing tour because of death threats. He was due to sign at the Barnes Noble Stores in atlanta and philadelphia area. He was released in 2009 after serving 18 montsd for his involvement in dogfighting. Tracy, back to you. Tracy Uma Pemmaraju, thank you very much. Ashley more on the markets record run, that happens daily we set a new record. Our next guest says by years end the s p 500 will be higher than it is now. The aaron gibbs, s p capital iq global markets. She joins me now. She is still very bullish despite all the highs we see. How much more room to the upside do you see . Were looking for 10 by the end of the year. So we still see about half, a little more than half weve accomplished. Actually this is very similar to seeing past three years. Everyone remembers we had the huge runs in q1. Massiveful backs in 03. Back up on q4. Looks like this may be the fourth year running where we see this . Ashley definitely a pattern, a trend, whatever you want to call it. Face it. Investors will go in there. They will party, the markets are going up. Yep. Ashley as long as the fed keeps printing the money. Yeah. Ashley is it real . We certainly see it as real. There are multiple, fundamental Economic Indicators for us that we really see this. Ashley like what . One is new housing sales. Housing starts particularly when it came in at 437 instead of expected 380,000 for new january sales. That is huge. It hit basically a fouryear high. We see a big, nice base being drawn along home sales. The other is unememployment consistently drops. The other is earnings estimates at 2013. Theyre Still Holding 7 1 2 . We see that growth out into 2014. So we see the fundamentals coming in even if, yes, we still have some big overhangs when it comes to how are the tax increases going to affect spending. Ashley yeah. Of course the other big one of course is the sequester. Those are the two big. Ashley big drag on economy, gdp as a whole. How do you play it right now . Are there any particular sectors that you like . Yes. So, we still like Consumer Discretionary even though there is a lot of fear around it, there are a few value plays. Ashley yeah. Two of the stocks we really like are dollar tree. Just popped when it released last quarter earnings, but still feel it is good value from where it is trading right now. Coach is, a great value play. A lot of fundamental analysts say, right where it is trading because it face nominal. Coach is one of the stores where they have one or to quarters where,. Ashley a little soft. A little soft, fourth quarter, Michael Cores beat the michael kors beat the pants off them. They always come back. Theyre extraordinarily wellmanaged company. They Just Announced a new ceo and they have a Huge International presence. We see recovery coming through europe, hopefully toward the end of this year, that can also boost sales. Ashley disclosure on that . Coach and dollar tree are both in our model portfolio so. Ashley i want to make that clear. You know what is interesting though . I see a little more than half of the s p 500 companies have perhaps lowered their expectations a little bit Going Forward and that doesnt concern you . No. It is really relatively small. We started the year about 8 . Were down to 7 1 2 Going Forward for 2013. Not enough to make a huge impact . Definitely when particularly for the consumer, more Consumer Discretionary, some Consumer Staples and industrials they pull back a little more because of how payroll taxes from the walmart story came out, everybody started pulling back. We got to ride that out. Ashley very good. Is there any major headwinds out there that concern you . It was always about europe for the last couple years. It died down a little bit but anything out there . Really how washington is going to handle this. It could really derail. Ashley probably badly. They could ultimately the big fear can they derail what the treasury has done for us . Ashley yeah. We finally see the mortgage, finally see housing recovery coming through and, you know, if this sequester isnt mishandled, that could really set us back. That is definitely a fear that is out there. Ashley yeah. A lot of uncertainty. Erin gibbs, thanks for being here. Appreciate it. Ashley thank you. Another 10 on the upside on the s p. Tracy i like to hear good news. This is good news too. New york city mayor bloombergs ban on sugary drinks gets canned. Yea big gulps. Both sides promise to fight. Well have the latest over the battle over obesity and freedom of choice. Ashley you dont need a big gulp. Well look at some of todays winners and losers on the s p. Dow slightly lower. Jcpenney doing nicely, thank you very much. Up 5 . America up 3 . Well be right back. Merck. Ashley lets take a look at the dow 30 components for you on the upside, we see merck and united health, boeing, forget about the problems for dreamliner that stock keeps on going. On the down side, caterpillar, walt disney. Lets go to the floor of the New York Stock Exchange where Nicole Petallides is standing by. Nicole Doreen Mogavero has been here a long time even though shes very young and can give us some perspective on the Market Action we are seeing. Another day, another record high, today is different because now we are seeing the weakness setting in. What do you think . Theres been a lot of talk today about obviously things sort of stalling here and people are tired. S p trading at some point 8 above its 200day moving average which is generally a signal that things some people say 10 . Some people say 8 but whatever. But it is in a zone where people are starting to get nervous. A lot of talk about overbought conditions. So i think in general people are taking a little money off the table. We had some big sell programs today which is unusual to have all the orders come in on one side. Nicole explain that a little bit, when you say sell program, what are you saying . We had one or two accounts that gave us specifically nothing but sell orders today. That was kind of an interesting nicole thats an indicator that some people are taking the profits off the table. There are some people who are now thinking about shorting. We have to toss it back. Doreen and i could talk markets all day long. Back to you. Ashley carry on talking. Tracy love it. They are still talking. Ashley see you in 15 minutes. Tracy at disney they say have a magical day. Have a magical day, ashley. Now wall street firm Goldman Sachs is saying it is time for investors to get back in, so what are the best commodities . Jeff flock talking to the traders at the pits of the cme. Hey, jeff. Jeff the magic has gone out of the commodity market. Took a good look at some of these pits out here. People are just standing around, not a whole lot of volume. Today we got a little bit of a dead cat bounce out of commodities. Take a look at a lot of the c words today, it stands for commodities, also stands for corn, copper, cocoa and crude oil, all up today, maybe on that Goldman Sachs report that said this market is oversold. Take a look at just one pit up close and personal. This is the soybean oil pit. Take a look at what traders have done over the past week. They have decreased their long positions by almost 5,000 cootracts in this pit alone and increased the shorts by over 8,000 contracts. And that has been happening in a lot of commodities. Take a look at gold. The longs there, down by every 7,000 contracts. The shorts by the shorts increased by 7,000. So this market clearly moving to sell. Whats the one place i found that actually is a pretty good bet that has actually been having money coming into it . The nat gas market, the longs increased by 13,000 contracts. And the shorts decreased by almost 2,000 contracts. Thats one thing where people think you can make money Going Forward. Maybe because its pretty low. Its got nowhere to go but up. Tracy we like to hear ways we can make money, jeff flock, thank you very much. Jeff we try. Ashley thank you jeff. New york citys ban on sugary drinks has gone flat. Late yesterday the state Supreme Court judge canned how many more puns can we get in here mayor bloombergs plan to ban any sugary drinks over 16 ounces. This is a real talk this story since it was first proposed. The law was supposed to go into effect today. It is not. Gerri willis is here to talk to us about it. I guess businesses have won the day on this. They have won the day. We have won the day. We can still have our big gulp; right . In the south we call it cocacola. You say cocacola. Tracy i didnt drink coffee in college. If it were not for the big gulp, i would not have graduated. That is a true story. 32 ounces of anything, i know, you think thats bananas. Ashley i thought it was beer. It wasnt coke. Tracy late night studying . Can we talk about the story now . Ashley okay. Get into this. This is my favorite story. As you know the mayor said you cant have a big gulp. You cant have 16 ounces of a soda in new york city. He hoped to take his message to the whole world, he said obesity kills. Thats what the mayor said. He has it in for people with a few extra pounds. The state Supreme Court said we dont agree with you. You are overstepping your bounds. If you want to put it in front of city council, maybe we would consider it, but you didnt do it that way. Millions of dollars spent by the industry trying to overcome this thing. They were successful. Heres what andrew mozell from new York Restaurant Association had to say. Slippery slope he says. It sets a very dangerous precedent because if we set the idea that we can regulate any sort of portion size, whether its soda, anything else, who knows what is next . Maybe they will regulate calories, how many hot dogs you can have in a day, thats not what Consumers Want or the Restaurant Industry wants. If you go to the Old Fashioned donut from starbucks, im going to be really upset. Ashley settle down, gerri. It is safe. Tracy nobody is dragging you to get the big gulp. I with my own two feet stood there every day and filled it up. It was a choice. Tracy it was a great choice. New york City Government should focus on something that really matters, 80 of new York City High School students cannot read at the levels that they are supposed to. They cant do math at the levels they are supposed to. They cant write at the levels they are supposed to. Lets talk about getting something done that would be really meaningful. Ashley and the homeless living in central park. Tracy then theres that. Ashley what do you have coming up tonight . We will be talking about the soda ban. We will be talking about taxes. It is going to be a jampacked show. Tracy bloomberg is also coming down on ear buds next. Hes going to ban ear buds. Ashley all right. Gerri, you are in trouble now. They are going to come and get me and take me away. Ashley breaking news, oil closing at 92. 54 a barrel. Todays close marks the fourth straight day of gains. Been on an upward tick. Tracy we have a special programming note for you, all this friday, fox business will be reporting on the business vice. Each hour we will focus on a different vice, like gambling, alcohol and the adult entertainment. At 2 00 we will be focusing on tobacco. You cannot afford to miss it this friday all day. All right, coming up, new life for greenbergs lawsuit over the massive aig bailout. Liz macdonald has that next. Ashley first lets check the ten and thirty year treasuries. We will be right back. [ male announcer ] ive seen incredib things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per cond. 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To avoid longterm injury, seek immediate medical help for an erection lasting morehan four hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of t lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and g medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Im Shibani Joshi with your fox business brief. The fcc and the department of justice approving the merger between metro pcs and tmobile usa. Metro pcs continues to face opposition from some of its shareholders. Some are leading a proxy battle against their merger. Metro pcs sent a letter to investors defending the proposed tieup. The twinkie may soon return to a store near you. In an email to reuters one of the new owners says it hopes to have the hostess snack cakes back on u. S. Shelves as soon as this summer. And leave those dollar bills behind. You soon may be able to use your credit card to leave a tip the next time you visit your local coffee shop. Thats the latest in the Fox Business Network giving you the power to prosper. Ashley former aig chief Hank Greenberg scoring a major legal victory in his lawsuit over uncle sams massive bailout of the insurance giant. Liz macdonald is here with the bottom line. This is getting uglier by the second. Liz yes a big slugfest, 25 billion dollars lawsuit tracy we have black smoke, thats not good. Ashley very black. There you go. Tracy at this point a new hope has not been selected. Quite frankly it would have been really quick this they had selected already. It was not expected at all. Ashley officially the black smoke has gone up. Tracy i have to admit im a little disappointed. Why are you laughing . Liz you wanted the breaking news on the show; right . Tracy we need a pope. Liz if you are catholic, yes. Heres the latest in the breaking news story, developing story, yesterday Hank Greenberg, won class action status for their lawsuit against the federal government. Today the latest breaking developments is david boyce on behalf of greenberg is saying listen we still want the aig the company to join the lawsuit. The board did not act independently when it rejected in voting january not to join the suit. And he goes on to say that, watch this, this is really important, hes essentially saying that the use of aigs property for back door bailouts of other private companies is what hurt the investors and eventually hurt u. S. Taxpayers. What happened here is the trades with wall street, that were done at aig, were settled at 100 on the dollar by the u. S. Treasury. U. S. Treasury is saying they are going to battle this lawsuit. This is an important point, essentially because aig on greenbergs watch did launch that disastrous unit over in london that created these trades. Theres argument against this lawsuit is well then dont take the bailout; right . Go bankrupt. But aigs greenberg the former ceo is saying listen aig didnt have access to the fed discount window like Central Banks did overseas. Aig wasnt a bank either. This is a really contentious lawsuit. It is basically going to be slugged out in the courts and it is going to be a big fight because heres the deal, if the board doesnt join the suit, and aigs former ceo Hank Greenberg wins, the board is at risk of not joining a 25 billion dollars lawsuit and getting a piece of that 25 billion bucks on behalf of shareholders. So thats the Pressure Point on behalf of david boies. Ashley does the latest development perhaps push the board more towards that . Liz it could. Neil cavuto will be interviewing david boies tonight at 8 00. You dont want to miss that. Ashley anyone looking at it from a distance, will say wait a minute the government bailed you out and you are suing the government, how ungrateful can you be . But theres a lot more to it. Liz the government got 80 stake. But then you have to say to yourself listen this is what happens when you go in bed with the government. Thats an old joke from washington, d. C. Watch tracy byrnes start using that joke. She likes to use my jokes. Its an old joke. [laughter] tracy oh, and youre looking at pictures right now of vatican city where the pope has not been selected. Ashley it is pouring rain. Tracy it is pouring rain. Last night Shepard Smith was live and it was lightning. Now lets go to stocks with Nicole Petallides on the floor of the New York Stock Exchange. Nicole on a recordsetting day on wall street, but certainly looks like were going to now put some pressure here going into the closing bell, but i wanted to take a look here at a particular name, and that is Irobot Corporation based in massachusetts. You can see the stock is up 4 1 4 . When you look at that, you can think of robotic vacuums and floor cleaners and gutter cleaners and pool cleaners and all of these things that are obviously robotically operated. They named allison dean the new chief financial officer. Also gave a glimpse into their quarterly numbers and raised their First Quarter guidance and that is because they are seeing strong results in their business units, so thats some good news there for irobot. It is doing great, up 4. 3 . Back to you. Tracy i have to get one of those, vacuums for you. Isnt that cool . We will see you at the top of the hour, nicole. Ashley American Companies missing hundreds of billions of dollars they promised to retirees. So how will they fix this pension hole . The sobering numbers are next. Tracy first lets take a look at some of todays winners and losers on the nasdaq as we head out to break sea Gate Technologies is up almost 5 . The dow is down 16 points. We will be right back. Tracy Corporate America is nearly 350 billion dollars short of meeting obligations to its retirees. It is crazy. So what can be dont to plug the pension hole . Jpmorgan pension strategist did that research and found startling numbers and joins us now. My first question to you is, we are its four years later im sorry, over the last four years, there are a trillion dollars in the hole. Over the last four years, the dow and the s p 500 are up about 100 . What have they been doing . They have done exactly the right things. You know, their assets are performing very well. Pension assets increased themselves by about a trillion dollars. So, you know, Investment Performance was very good. Corporate america contributed into Pension Funds on average about 80 billion dollars per year for, you know. But the problem is that the so you basically have a pool of liabilities which is very sensitive to Interest Rates, basically pension liabilities are like a bond and if Interest Rates are very low, then the value of the liability is extremely high. As you know, Interest Rates are at their lowest so the liabilities are very high. Tracy by liabilities you basically mean their obligations plus the cost to run the whole thing; right . Exactly. Tracy thats pretty much the liability piece of it. You are blaming essentially quantitative easing, arent you . That Interest Rates are so low and it is killing that liability side of the equation. Uhhuh, exactly. So theres really two problems. Theres one which is the size of the hole that they need to plug. And thats really related the fact that Interest Rates are very low. And the second is that this is extremely volatile because assets dont really match liabilities, so liabilities are driven by Interest Rates. Assets are usually very much driven by a large portion of equities. So equities and Interest Rates dont usually go together. So basically Companies Need to work on two things, plugging the hole and reducing the volatility. Tracy theres been a lot of companies that have kind of forced people into retirement. Has that been part of the problem as well, that they have had to pay out a lot more than expected . We have seen this in 09. Theres been indeed a demand for more out of Pension Funds and liabilities have changed, but the overall you know, i think the main thing to remember is that its really Interest Rate driven. So it is more the Interest Rates. Tracy what companies are in the worst shape right now . We have really seen those companies which are, you know, the manufacturing companies, which, you know, made a huge pension promise in the 70s and the 80s tracy like boeing i think was on your list, ups was on your list, general motors, verizon, how do they fix this Going Forward then . I mean quantitative easing is here to stay. Exactly. And i think that its really the issue, is that we see Interest Rates will remain low for a long. Therefore the liabilities will remain high for a long time. So they need to combine contributions, put money into the pension fund. They need to change their Asset Allocation to really manage the volatility of the pension fund. And for some, they think about shrinking the size of the liabilities. We have seen this with gm gm and verizon because they sell some of their pension liabilities to insurance companies. Tracy people should be aware, unless you are retiring quickly, folks like us need to wait. Although the defined benefit is really going away, most of us are going to have 401 k s by the time were done. Thank you for being with us. Thats good stuff. People should Pay Attention to this though. Ashley they should. Pay attention to this, 50 shades of gray is a best seller, but dont you dare try to make an adult film out of it. Nbc universal has won the lawsuit. Dennis dennis 50 shades of green, a courtroom victory for the triumph of high art. Though you may have trouble in this case telling which is which. Comcast universal wins a victory in court against a smalltime company accused of ripping off shades of gray. Universal making an rrated film based on the book. The studio didnt take kindly to smash pictures which was filming 50 shades of gray. Smash has agreed to pay an undisclosed sum to universal and agreed to submit to an injunction halting production. Vivid Entertainment One of the largest porn producers produces x rated spoofs of spiderman and the like. But smash made the mistake of using the same character names as in the book and calling the film an adaptation rather thatten a rather than a parody. The author of 50 shades of grey gives advice on how to write and leaves pages blank so you can keep a personal journal. Which makes me think this follow up should have been called 50 shades of red for embarrassment. Ashley . Ashley you know what . Shes laughing all the way to the bank. She doesnt care. Thank you very much. Dennis okay guys. Tracy the total number of lamborghinis was down 14 from its 08 peak which by the way the peak was 2400 cars they dont sell a lot of them. Italian carmaker is celebrating its 50th anniversary this year says sales were up in the u. S. By half, 34 . The company which is owned by volkswagen said it sold more than 900 of the new lp 7004 and they moved 1100 other models. Thats not a lot of cars. Only 2,000 cars. Ashley no, but someone is buying. Liz claman takes us through the last hour of trading. She has one of the best stock pickers out there. He shares his best money making ideas. Its a first on fox business. Countdown to the closing bell is next. [ 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 gam from the great norwest. Hell start investing early, hell find se good people to help guide him, and hell set money aside from his first day of work hisast, which isnt rocket science. Its just comm sense. From td ameritrade