Talk. I also want to point out this poverty discussion. Charles payne, some very strong thoughts. He will be along on that. Before we get to bob schiller, lets go to the impact of his report today. Nicole petallides starts us off at the new york stock exchange. Nicole good morning. We got those home prices in. The markets have been holding some of the aeros. It accounts for about one tenth of 1 . The tech heavy nasdaq the best of the bunch. We certainly have gotten in a lot of earnings this week. We continue to watch what comes from the fed. The home price numbers, that increased by the most since 2008. That is good news if you are selling a home. Also getting some confidence numbers that are still above the 80 mark. That is good as well. Back to you. Dagen thank you, nicole. A 12. 2 increase in home prices from the previous year. That is in the 20 major cities tracked by the index. The biggest annual gain since march 2006. We care about bob schiller. Bob, good to see you. Can this kind of trend continue, particularly with records in dallas and denver right now . I would not make too much of the dallas, denver records. The citys apple a lot in the past are bubbling again. Phoenix, vegas, these are the cities that are booming. Dagen it you are saying if they are booming and they both bubbly, these price increases will ease. Well, i think, it is hard to say. The market is changing. They changed the whole land scape. I think it may be less predictable than it was in the past. With this amount of upward momentum, it will probably keep going up for the next year or so at least. There will be a downturn eventually, but we probably have a while to go. Dagen to that point with a number of investors that are in the market and hedge funds out there buying, are those investors are likely to hold on . Will they continue to step up even as Interest Rates go up . I think hedge funds are more reliable. I think that what has happened is people have learned that there is a lot of momentum in home prices. Hedge funds are kind of trouble. This is like a nobrainer to them. They learn about momentum in the stock market. The Housing Market looks like a great hope for them. I think that they are probably right this time. They will make money, if they get out soon enough. Dagen on that note, our people now reading these stories, seeing these price increases and now getting off the sidelines . They feel that desperation and that need to buy. The other thing that is a big factor giving that desperate feeling is that Mortgage Rates are going up desperately. They are still low, but people are really worried. They have gone up over a percentage point. Some people might say i missed it. I am too late. I think most people are thinking it may go up a lot further. Dagen in terms of homes countrt an 18 year low card to the point of affordability, could you have investors in hedge funds being a large driver in these increases . Are you bothered by these two things . If home prices go up, those very hedge funds investors squeeze out the little guy. Everything is changing. A lot of people are choosing to rent now rather than by. They may be right. I think we have overemphasized Home Ownership. It is a good thing for people in the right age range that want to settle down. These people have changed their minds, maybe permanently. We will see a lower homeownership rate. If you want to invest in real estate, rental apartment buildings may be a better prospect right now. Dagen we always find out something. We appreciate it. Be well. Next time i hope to see you in person. Thank you. Connell we do have some breaking news. This is from a new york appeals court. Mayor bloomberg trying to impose the ban on large sugary drinks. The court struck it down. In the meantime, president obama said to address the economy later this afternoon and address his proposal on a cut of Corporate Tax rates. Rich one new proposal that the president has is a onetime shot to tax overseas earnings a long with changes to depreciation. Take a look here at some of the specifics of the white house just released. Top Corporate Tax rate of 28 . Increase minimum wage. That goes to nine dollars in the state of the Union Address. 7. 9 oh yen dollars in clean energy spending. Infrastructure spending. One of the proposals is just to Corporate Tax reform. Republicans say if you are going to do that, you have to do individual tax reform because so many Small Businesses file as individuals. The president has always supported Corporate Tax reform. Republicans want to help families and Small Businesses also. This allows a president obama to support president obamas position on taxes and spending while leaving Small Businesses and American Families behind. We have not gotten any specifics. We do not know how much he is looking to spend. Some of the overseas Corporate Tax changes call for about 157 billion in revenue increases over the next ten years. Connell rich, thank you. We will move back out to a very important topic backup the attention of our very own Charles Payne on yesterdays show. Four out of five u. S. Adults will struggle with poverty. Four out of five. Charles is back with us and had some very strong thoughts on this topic. We also invited a fox news contributor. Thank you both for coming on. This topic deserves more discussion. Here we go. Charles we talk about poverty a lot. This was an sos for White America. Usually it is the elephant in the room, the blacks, hispanics, the young, bold. It really takes us back to 1980s when the country was really helpless to the point where jimmy carter said it was malaise. This is a real unfortunate place for this nation. Connell they are talking about race disparities in the poverty rate have narrowed this substantially. What about affirmative action . I think i disagree a little bit with charles that we do not talk about poverty enough. The times that we do talk about it, it is, as you said, so focused on minority communities in a way that is preferred it to the bigger picture. Now, we are also seeing at the same time from a solution standpoint, as these numbers are increasing, we have programs being cut that dramatically affected people in this country that are facing poverty. We have kids being cut from headstart programs so their families cannot go out and find jobs. You have sequestration that will have a dramatic increase on the poverty rate. On the right, many republicans are saying that deficit reduction is an economic plan. Austerity is not the economic plan to get these numbers in check. Charles 17 of white children live in poverty. Higher minimum wage does not change that. Free housing does not take you out of poverty. It makes poverty more comparable. What we are talking about is how to re energizes country. The president would love to just crush the top. The people down here, their lives have not changed. This is the proof of that. We have not been closing that gap. The rich are getting richer and the poor are getting poorer. The policies focus specific weight on this. It has not been increased since 2007. Charles minimum. The American Dream has been pulled. This latter has been pulled. Charles it is americas responsibility. Victimizing the poor will not help. Poverty is absolutely not comfortable. Charles they are comfortable enough, guess what, when they get a security job, they are comfortable enough that they keep having kids your teenage kids should be working at a minimum wage job. It is a stepping stone. It is not for the head of the family. The minimum wage increase would help all of those wages increase for all of those folks. You cannot deny it has a genetic impact on the wages of other middleclass americans. Connell you will not solve or get through everything in one day. We thank you both for participating. Charles is smiling. That is the way wed like to end it. You said you wanted to talk about it. Charles i said this particular point. Connell yes. Charles i do think that White America is giving up. It is scary and people should talk about it. Connell thank you very much. Dagen and upcoming twitter ipo. It comes from something that was posted on linked in. Financial charges against husband and wife joe and teresa. 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 guys and with double miles you can actuay use, you never miss the fun. Beard growing contest and go win whats in your wallet . Win a quarter million tweeters musicare tweeting. Eamed. And 900 Million Dollars are changing hands online. Thats why the internet needs a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This. Is going to be big. Its time to build a better enterprise. Together. Connell we are back now on market now. What about twitter . A report that they could be a step closer to filing for an ipo. The Company Posted a Job Description for Financial Reporting manager. Responsible for preparation of monthly reporting materials. Why do you need that kind of worker . [laughter] dagen at your public filing. Connell they said in the past that they had no plan to go public. Somebody is thinking about it if you are posting that kind of a job. Dagen i know that the venture capitalists have to cash out. After what happened with facebook and the disastrous public offering, the stock is still trading below the offering price. Why would you want to go public . Connell it was right during the show. There was so much hype and then it is almost back. It is almost back to that magic price. Maybe it will be a happier story for twitter. Dagen is it back at 38 . Nicole it is not at 38. It is getting closer. This is a stock that drop down to 1755 last september. Everyone that bought into the facebook who plot and endured that disastrous ipo last may has been disappointed. Look at it now. Great earnings report. Today there was news that they are going into publishing games. Over 1 billion users. They will be putting those games out there. If they go viral, that could be a brandnew revenue stream. Connell cofounder of the agency is here in the studio. We will talk to him about the Housing Market and the latest numbers that are out. Dagen Elizabeth Macdonald on the run. Connell there she is. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than youxpected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an accou. 25 minutes 25 minutes past the hour, this is your fox news minute. Eight people injured in florida, four critically after explosions rocked the propane tank last night. More than 53,000, 20 pound protan tanks. And they are giving 7,000 classified documents, and there has to be aiding the enemy. If convicts, there could be life in prison. A 58yearold woman was defacing property after green paint was found inside Washingtons National cathedral. They are investigating if theres a connection to similar vandalisms at the Lincoln Memorial and smithsonian. Those are the headlines, back to dagen and connell. A fox business alert, security fraud trial, tourres trial wrapping up, third week, closing statements begin this morning. Heres liz live at the courthouse in Lower Manhattan who actually physically caught up with mr. Tourre this morning. Whats the latest . Yes, physically is right. Take a listen. You feeling confident today . How you feeling today . Feeling good . Great, thank you. He also spoke with me in the courthouse moments ago saying he is feeling good. I asked what he thought of the fccs case, and he said well see about that, but right now, we got out of the closing arguments of the fcc case, and the lawyer is giving it to tourre saying essentially he set up a world of lies, trickery, and deceit, a world of conflicts of interest, and hes living in the land of make believe when he did not tell investors in the deal where investors lost a billion where the Hedge Fund Billionaire was sticking the assets and shorting the deal, so he was accused by the fcc of writing the flip book, the deal document that also did not disclose and weve got more breaking news. The fcc lawyer is saying that he lied on the witness stand when he said theres mistakes made. I was inaccurate, in subscribing the role as bearish, that is inconceivable, and they were in on the deal, and more breaking news. The fcc lawyer is also undercutting that its own witness, and they said he, too, misled the jurors so this is a developing story throughout the day. The fccs called 11 witnesses. The lawyer, the fcc lawyer says it undercuts the closing arguments. Back to you. Good hustle with this. Covering the trial in Lower Manhattan. Hustle, we love it. The star realtor with the agency in los angeles is here with us in studio to take, give you his take on the Housing Market there, here, and maybe everywhere. You said at the end of the interview, theres always something to talk to, l. A. Times says the head of cbs believes the network is at war, at war with time warner. More on that coming up. At the half hour, heres what we have coming up. The star realtor from the agency and a good friend of the show is here in person today in the studio talking about higher home prices that bob schiller was on earlier, and that ma means for the Luxury Real Estate mark. Dont miss that. Theres a correlation of higher gas prices and sentiments number, and theres head of cbs says the network is at war with time warner. Story on that ahead. First, busted partnership in russia fertilizer stocks are tanking. Nicole, please explain. Well, we watched the fertilizer stocks closely, and, today issue watching names like hot ash hitting a new 52week low, and mosaic, and 20 to the downside for two of the three. This comes as a russian back venture with the partnership of basically these fertilizers backed out, and some have vaguely described it almost like opec where theres a consortium, and now the top six producers are included and you can see down 20 . Connell Robert Schiller talked about the case schiller report, of course, and he said this about ownership, Home Ownership right now, watch. I think we over emphasized Home Ownership. Its a good thing for people in the right age range who want to settle down, but theres a lot of other people who buy homes because they thought it was a great investment, and these people have changed their mind, maybe permanently. Well see a lower Home Ownership rate. Dagen what does he think of that in cofounder and ceo of the thee agency out in language joining us now in studio. Good to see you in person. Finally. Great to be here. I love it. Do you believe that, that the people will be theres a part of the country permanent renters . I hope not. The American Dream to own a home and be able to get there and achieve something. Its part of the success. I hope that hes wrong on that, and i dont believe it. Connell your business, obviously, contingent on selling the dream to some extent and removing yourself from that, im sure, next to impossible, but u why . Why is it the American Dream to open a home . Why cant it be to rent a news apartment, you know . Well, you know, i think we all strive to do something, work, go to school, ultimately want to be successful in our career, and i think that Home Ownership is one of those signs that, you know, you say, okay, ive now been successful, and so, i dont know, i think we all grew up like that. Its the right investment, wrong investment, i think its the right investment. We are seeing a lot of upsides, especially in Luxury Real Estate. You know, who really knows. Your biggest problem is inventory in terms of selling. Are you seeing more inventory on the market . A lot of what you rely on are developers, but are people stepping up as prices continue to rise . Theres a lot of speculative developers out there now starting to build Single Family homes, theres great homes, stuff thats coming on the market is being consumed or sold even before coming on the marnlt, and thats kind of the most interesting part now is fining the realtor that gets you to the homes prior to hitting the market because these things are not hitting the market, but Interest Rates are still low, theres no inventory, lack of inventory, so, you know, its set up to theres not been 5 lot of changes in the last month. Theres a huge increase in sales volume in the last month that was huge in the peak of 2005, and so especially in los angeles, so i just see a continuation. Connell who is buying . Foreign money for the most part, or has that changed . Theres still a lot of foreign money coming in. All the problems in europe, france, italy, particularly, with the tax issues, russians are still coming here. You know, the u. S. Is still a safe haven, a great place to place your money, and, you know, south america, international, they are going to, you know, miami, going to ne