Facebook. This is a trend. We will talk about it. This is all coming up on this hour of markets now. Connell all right. Dagen do you think i need work . Connell not on your beautiful face. Dagen you may be a suck up. Top of the hour. Time for stocks now. Nicole the dow is up. The highest close of all time for the dow and the s p 500. We are not quite to the intraday alltime highs for the dow. You are seeing of arrows, nonetheless. We have been following both jpmorgan and wells fargo very closely as they came out with their quarterly reports. Other names that are leading the dow our boeing and united technology. Back to you. Dagen thank you so much, nicole. Jpmorgan and wells fargo kicking things off. Lets take a look at how they did. Wells fargos profit climbing 19 . Our next guest and friend analyzes numbers. The real . Here Going Forward is mortgage. The volume is low. That will hurt. Loan growth, from a commercial site, is not particularly strong. The economy just is not expanding that rapidly. The tapering thing from the fed just does not make a lot of sense. Businesses are not expanding. Dagen it would take a significantly stronger economy. Longerterm Interest Rates go up, that could offset that loan growth. It could offset some mortgage activities. A much stronger economy, people will borrow anyway. The other thing that we did not see in earnings with these companies is the fact that security books got hit pretty hard. Jpmorgan got hit pretty hard on margins. They took a conservative route. From an earnings perspective, you know, it was good enough. People were not expecting anything heroic. The stocks are up today. Dagen looking at the financial category, it has performed quite well this year. It is up about 24 so far this year. To that point, do you take money off the table with some of these names. Assuming that there is no great catalyst for growth. Absolutely. I think it is a stock pickers environment. It has not been a stock pickers environment this year. Giant securities portfolios, earnings will only go up when libor goes up. Libor is not going out for a while. I think some of this rally is not particularly right. I think there are other companies that are benefiting dramatically. Places like the southeast, credit will continue to improve. I think there is a lot of leverage for the Smaller Community banks. The banks that are the buyers are getting really good deals. That is a great environment for that industry. Dagen great to see you, as always. Take care. Hope you are having a great summer. Connell we have this group of bipartisan senators introducing this bill. Dagen peter barnes is in washington with more. Peter you sound excited. They were the depression era legislation that forced banks to split off their Investment Banking operation. They were all one company out one time. It was repealed in 1999, but now senator Elizabeth Warren, democrat of massachusetts has teamed up with john mccain on the legislation to restore glasssteagall. Critics are already saying, wait a minute, it was not these big banks that failed. Senator warren said, well, we still had a problem. Take a listen. The companies that we bailed out were citibank, bank of america, wells fargo. Those are the ones that got the big tarp money. Doddfrank is part of that. It has dialed some of the risk out of the system. The point is, it takes more. What this is about is one more way to bring down the size of the largest, integrated Financial Institutions and separate them out so the risky part is separated from what should be the boring part. Peter the big banks are not too keen on this. The roundtables says doddfrank is fine. It is adequate. It is the proper legislation at this time. Financial services for him says it can help to minimize the risk at an institution. Connell peter barnes in washington. Thank you. We have a former vice chairman at Goldman Sachs with us now. Two questions, we said someone with, and indoors ben bernanke. What is wrong with her argument there that we need to take these things smaller. They are just too big. Why not bring back last steagall . There may be some merit in what they are saying. There are two ways to take risk out. A lot of doddfrank and the local rule has already minimized or reduced what they can do. The only caution from the industry, which i think is right, they can actually manage their risk more effectively if they have a trading operation. The devil is in the details here. We are headed in the right direction. Could you go too far with this . You could go too far. Though volcker rule went a long way. Connell from 19331899 we did all right. Did you get rid of it and the crisis comes a decade later. I think that there is some merit to that. A lot of deals they did, you wonder why does the world need that to go on . They did not have enough capital. There is 50,000. Most of the banking gets done at ground level. There is some trading that makes it easier for banks to actually loan because they can hedge themselves. They can trade loans. They can do other things. I do not think you want to take that away. That can hurt the loan business. Connell we have a big endorsement for bernanke. A hot topic of discussion. The stock market has been propped up by the fed for however long. Some say the rates have been too low for too long. We are in the process of recreating a situation that we already have. Why do like what bernanke and Federal Reserve has been doing . From a big picture, we are going through a massive deleveraging in the western world. We have too much debt for the amount of income we generate. The fiscal policymakers need to do leverage. We are doing that, but very slowly. Bernanke knows that we need to do this. He wrote a piece on the great depression. What was required was easy, i would argue, very aggressive Monetary Policy to give some breathing room for us to do leverage. The general policy by the fed has been right. The question now is, how much is too much and this is why you are seeing this debate on tapering. So far, i think they did what they had to do which was get some breathing room to an economy that needs to do leverage. Deleveraging by itself, unopposed unopposed by Monetary Policy is very disruptive. He knows that and so he is trying to counter it. Connell so far so good. We have jim rogers on later. Rob, thanks a lot. Have a good one. He does not like what bernanke does. Connell thank you. We will talk to jim later. Thanks for coming on. We appreciate it. Thank you. Dagen breaking news. Janet napolitano is ready to call it quits. She is a forming the white house that she will be stepp down in september to become president of the university of california systems. Talking about berkeley and ucla among the universities there. She was expected to stay on for a second term. A little bit of a surprise. She was highly recommended to the university of california region. Connell ups. Ups blaming a slowdown in the industrial economy in this country for a week earnings report. The big economic report. I am happy investors are getting out of the stock. That is sure. Dagen investigation looking squarely at the pilot from the San Francisco plane crash. Connell looking for love on facebook. [ laughter ] i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. Our Business Needs more cases. [ male announcer ] where do you want to take your business . I need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, Small Business solutions from at t have the security you need to get you there. Call us. We can show you how at t solutions can help you do what you do. Even better. Dagen get it done. Connell lets talk about ups. Nicole it is killing the stock. It is the number one loser in the s p 500. Some of the commodities are under pressure. Really, it is the number one loser. They cut their numbers. They are talking about a tough economy. Growing u. S. Industrial economy, according to them. They face competition from fedex. Both are winners this year, but both are lower today. Back to you. Connell all right, local. Dagen Charles Payne is here. He will try to fly high. Connell a very nice play on words. Charles jim rogers is always right, eventually. Dagen he is . Charles sometimes he takes 20 years. He is amazing. I battled with jim rogers four years. He won me over. I like lowcost carrier. The stock is trading in at six pd. 0. 2 peg ratio. One fifth of its sales. Look at this chart. That is a beautiful chart. I think from here you get a retest to the top. Ultimately, i think i see this. Going into the mid 20s. If there is any industry, it should be the airline industry. They are making money hand over fist. Dagen americans stock was stock equals double stock. A lot in terms of customer service. Charles virgin is amazing. They charge a lot of money. Dagen american, that is rough. Connell you on the other hand speaking of airlines, i would like to get on one of these airlines and go somewhere. So what edward snowden. Asking for temporary asylum in russia. Dagen jim rogers. We have already talked about him quite a bit so far this hour. He is finally coming up. Im a careful investor. When you dwhat i do, you think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum volatility etfs. Investments designed for a smoother ride. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. 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Edward snowden is asking for temporary asylum in russia. He is leading the Human Rights Group at moscow airport. The first photo since he arrived there on june 203. In florida, jurors are hearing the closing arguments. Six member allfemale jury could begin deliberations later today. Zimmerman is pleading not guilty to seconddegree murder in the death of trayvon martin. One american and two spaniards were hospitalized in the running of bell bowls. I cannot watch this. Those are your headlines. Dagen and connell, back to you. I cannot watch this. Connell that was a rough day. Dagen if you do that, you are a moron. I do not see the attraction. Just saying. Dagen i would have kind of enjoyed seeing that happen to rex ryan. Connell thank you. Connell live pictures coming in here of thousands of pro morsi for as. Dagen connor has more. It has been calm and peaceful. The Muslim Brotherhood remains angry. They have called on their supporters to take to the streets today. The overall tone here has changed a great deal in the last two or three days. The tempers have cooled. Millions are expected to take to the streets today to to support former president mohammad morsi. They denounced the attacks on the military leadership here in egypt. It really does appear that they are trying to get their supporters to turn out, but not necessarily to battle with the Egyptian Military. The Muslim Brotherhood does not want to provoke the military. The military is still in charge here, but the brotherhood knows that Going Forward they are still the most organized and Largest Community in this part of the country. They are a powerful group here. Connell a live report there from cairo. Thank you. Dagen the plane wreckage cleared this morning. The latest on that investigation and the focus on the pilot. What you need to worry about. Connell facebook driving big young to get faceless. The boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. Two words. Double miles this guy can act. Wanna play dodge rock . Oh, you gu and with double miles you c actuay use, you never miss the fun. Beard growing contest and go win whats in your wallet . Halfhour, and here is what is still coming up with jeff rogers. Ready to call everyone down. Twentysomething. Apparently licking prolonged facebook, willing to pay for a facelift to improve their odds. Facelift, facebook. And then reached refinery stocks are trading down. Although still to come to. Dagen nicole is looking at some of the biggest movers. Reporter an exciting day on wall street. At our highest point we were just near 15,500. I mean, we were at 14,000 15,498. So we were about 44 points away from the alltime record intraday high of the Dow Jones Industrial. Bank of america, home depot, mcdonalds, those are some of your best performers on wall street. It is a mixed bag. This is not one of those days where they are buying everything the up volume and the down volume are split nearly 5050, 101 million shares to the upside , 102 to the downside. Down volume. You really are seeing is but. For example, drug stocks are pulling back and transports are pulling back. Connell we will talk now for a few minutes about cold. Lets bring a price of gold and see where it is trading today. 79 an ounce, down a little bit, but on track for its best week at about two in almost two years. From Vegas Jim Rogers joins us. Welcome back to you. Thank you for coming on. We have mark farber on earlier god bless you. What does start to the interview. We had a mark on earlier this week. He called in from wherever you was, i think thailand. I mention them because you have been interviews somewhere and it had just been posted. Jim was talking about gold. What you think at this point . Well, i will buy on any weakness. Gold is obvious the pullback. Tell me why that is not the right thing to do or explain what you were looking to do specifically in this market. Well, mark always buys gold. 25 percent of his net worth is in gold. He is always there. My view about cold is eye on gold. I have not sold any. I bought a little more. And my view is in that process of making a complicated bottom which it made sometime this year or next, maybe 2015. At which point i hope i am smart enough to recognize the bottom and smart enough to buy a lot of gold per. Connell what factors do you look at . Again, adjusting to the specific market. Now we are nearing where it is a point where that complicated bottom, as you put it, has been reached. Well, normally the bottom looks somewhat the same. People give up. Panic and desperation, throwing things out the window. Then never want to buy gold again. It went up 12 years general in a row which is an anomaly. I would suspect of the bottom will be an anomaly to. State law under the most. If it were down 50 percent that uld be between 901,000 which would not be strange. Things go down 50 percent all the time, even in the markets. Connell and that is the point where as mark was saying youre right. He has been a big gold guy anyway, so he will buy out that weakness. There could be a lot more. Lets shift gears and talk about the market in general and get a sense of what youre thinking about because we obviously had the big runup in stocks. All of this euphoria building up. I saw a headline read before it came down. We are preparing for 16,000. Here we go. When you look out, what is your level of optimism verses pessimism . Are you worried about Something Big . Do you think we continue along the same way that we have been . I want to go back to gold about the bottom. There are a lot of people who have faith in gold. They think that you can never go down. None of those people have given up. To set a firm bottom we have to have some of the true believers giving up and dumping gold. I doubt if mark ever would. In contrast we have the stock market now where everybody is jumping in. Everyone is delighted and happy and theyre talking about 16,000. I am sure there will be talking about 17,000. And all like to jump on a moving bus or train. I have shorts in the u. S. As long as mr. Bernanke is going to print money stocks will be a nice place to be in the u. S. In the world. Connell he will keep doing this. Worried about what the fed will do, but that easy money policy stays in place for a long time, dont you think . He has said even back in may that if things get bad i will start printing again. Dont worry. This is the first time in record