Transcripts For FBC Markets Now 20130801

Fascinated with those story. Connell we will get to that later but the market on a tear today. The s p hitting more intraday record with notions, Nicole Petallides on the floor of the new york stock exchange. However you care for a bull market and record high go for it and that is the fact. And 15,620 at the highest point today. The alltime record in todays 15,650. And so many names have done so well, overall in equities. And bear have been stellar performers with entities along, lets take a look at what we are watching and jobless claims fell in and unexpected leap, to a five year low. And fewer claims that 326,000 in the latest week. Connell and talking about the claims figures. At the same level in terms of jobless claims. Dagen does he deserve credit for this . Dan henninger will answer that. A mere three years is all it has taken. The problem is, a parttime jobs economy, parttime jobs at a record of twentyeight million. Parttime jobs are rising, and six million jobs, in 2007. And so many parttime people being hired and fulltime employment at pre recession cliff and it has to do with policies specifically the Affordable Health care act which we call obamacare. And provisions of that what on the length of the work week and number of people where we have to comply with the law and employers to hire more parttime employees or move people out of full time work and into parttime work. Connell of obama moving forward from here, if this is more parttime workers, and the overused phrase, and the new normal. It would be a new normal. They lay the employer mandate for a year and during the year they work out some of these disagreements and say we cannot have a 30 hour work week under obamacare. Normal businesses, there are at a higher level. And parttimers. Dagen the president on the campaign trail and the need to help the middle class and need to help out the have nots, and theyre going to work with congress, and the willingness to act alone. He will act with or without congress and that means without congress. Mainly democrats will ask the republicans to agree to more federal spending, the idea being public spending stimulates jobs. We have a growth rate that is below 2 and the simple reality is as long as the growth rate remains off of its historic trend in the United States of 3 we are not going to have robust sustained job creation in the United States and we have to ask what is the president doing to get the growth rate off of its back . At least in plus territory up to 3 and the bureau of Economic Analysis just revised the growth rate going back 70 years and during the reagan years it was 4. 4 for five years. That is the difference between night and day versus a 2 growth rate . Bernard were about to talk to congressman ben holland about getting rid of acrosstheboard spending cuts and sequester and the effect of that. My view, congressman holland wants to do that so you can spend more public money, the same old keynesian theory that that spending multipliers economic activity. They have been doing that four or five years and we are below 2 growth and he has to explain why that is happening despite the trillions and trillions of dollars. Dagen real incomes are not going. Connell good to see. The congressman gets his chance. What if there was a way to add a million new jobs on top of what we are seeing . Congressional Budget Office did do this analysis eliminating automatic spending cuts for the rest of the fiscal year 201314 would create 900,000 jobs by the end of next year. The aforementioned democratic congressman chris and holland joins us now from capitol hill. I am sure you heard Dan Henninger, one of the lead writers at the wall street journal had to say that the end of his remarks, 2 growth and what you would like to do so why not pick up and get into details, getting rid of the sequestration. What is your response to what dan said . We need to dig out of the economy. We are seeing growth but i will be first to agree growth is too slow which is why the government analysis is important. Is the independent nonpartisan congressional Budget Office who has told us if the sequester remains in place you are talking about 1 million fewer jobs between now and the end of september of 2014 and that adds up to 0. 7 gdp. According to the congressional Budget Office. It is clear the sequester is a drag on the economy. We proposed replacing the sequester so you achieve the same deficit reduction but over a longer period of time and for accommodation of more targeted cuts and also tax expenditures. Connell we will begin to that. The sequestration replacement essentially dollar for dollar is the same. You spread it out. What is the number of years you are seeing now . That is the first part. How would it change it . The second part, the nine thousand jobs being added, analysis by the congressional Budget Office, how would how do you think your places strategy would compare to that . You will not get all 900,000. We would pretty much get all 900,000 and one is to replace the full ten year sequester and achieve the same deficit reduction. That is in the budget and we have a very concrete specific plan that would replace the sequestered for the exact period of the congressional Budget Office report so through fiscal year 2014 because i think we would all agree the economy is especially slow, we need those 1 million jobs and we need the 0. 7 growth and need to deal with the deficits. If we deal with the deficit over a longer period of time or more of a glide path you get the benefit of the jobs and Economic Growth now and the benefit of deficit reduction. Connell when you make your argument, when it is not growing as it should, we could all agree you are right. That is not where we need to be but we are seeing signs, the jobs report will be another part, we are picking up, and the conservatives argue, the, quote, do they scenario associated with the sequester has come to fruition. And not 700 federal vendors, 57 feel they were negatively impacted by the sequester, implication that the rest do not but that is not such a huge numbers so they say it is not bad. It could be better and this is a selfinflicted wound. This is unnecessary damage because of congressional inaction. And 7 growth is not gangbusters, 2 growth and 3 growth, and it gets you almost 1 . If there is something we can do to make things better why would we stand in the way . That is the point when we come also achieve the same amount of longterm deficit reduction. When we do what ben bernanke said we need to do which is not to have a drag on the economy but deal with longterm deficit. That allows you to do both in the proposal. Connell you heard what Dan Henninger said, thanks a lot for coming on. Dagen we have more information related to a story Charles Payne was talking about. More and more White Americans showing less optimism about their chances. Connell charles will be back with more. Car dealers try to clear for less years models. Theyre coming up as well. Dagen maybe not so excellent Major League Baseball could drop hammer at any moment, more suspensions for players tied to performance enhancing drugs. We are watching for arod and as we go to break, forbes listed fictional characters, the great gatsby coming in 15. We will show you more over the next few hours. 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[ male announcer ] the best thing to share . A data plan. At t mobile share for business. One buckeof data for everyone on the plan, unlimited talk and text on smart phones. Now, everyons in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. Connell we had a discussion about poverty, now new numbers, back to Charles Payne, to some extent. Dagen American Attitudes about Economic Future are delighted by race. Again optimism waning among White Americans. Charles in the National Media huge battle going on about race in america and two fried is a go president obama gave the impromptu speech talking about opportunities and feels like theyre going backwards. And forgetting about news, headlines and all that, it is White America that seems to be an extraordinarily does the time at least from a psychological point of view. Connell this survey shows white people are not as optimistic about the economy and the numbers are far apart like the 40s for White Americans and the 70s. Charles optimism about the direction of the country, they say they are optimistic, 73 gazette hispanic, 71 black. A lot of that, has to do maybe people look at the president and the economic reality has not changed that much. Fortysix million people, and the number is growing. And single white women live in poverty, that is exploited and the breakdown into social fabric. And children out of wedlock. And a large part of the success and i talk about this whether it is relationships, selffulfilling. When you have a large portion of your population, the future does not look great it doesnt help. They wont start a business or by house or save for college, a lot of things happen that make it a selffulfilling reality. Dagen you think it will get worse. Charles i do believe the economy is going to improve, but this optimism we have seen among black people will pull back and the entire country is in the same situation jimmy carter pointed out, general malaise. Where black people have them, we have a serious crisis among White Americans. Dagen any time i talk about stock market set a new record or the automakers Sales Numbers are great, energy doing well, a lot of retail doing well, a lot of my friends are like jobless rates north of 7. 5 . A lot of people in or out of work. Charles with the stock market and the look at these numbers every night, a lot has to do with global prosperity and global enthusiasm. Every one of these companies are making more and more money. When you look out the window and see despair and want the market is up there is no longer the direct correlation of the stock market records and america. Connell good discussion. Charles things to stay on top of. We have to be more optimistic to get out of this whole. Connell see you soon. Dagen shares of j. C. Penney recovering have to the Company Refused to report fed chair tom lane yesterday. Nicole petallides watching the stock. Nicole what a 24hour window we have watched for j. C. Penney. Late in the day we saw the stock taking dramatically. Today coming back. Lewis story is yesterdays c i t no longer supporting the small vendors and lending to them to provide j. C. Penney because earlier in the week c i t met with j. C. Penney and saw financial that basically said we are not giving you the money to go there so what happens ultimately now is as you noted j. C. Penney is refusing that report and saying it is flat out not true. We have spoken to our vendors that provide to us at j. C. Penney and they are all set, no problem at all. The stock is recouping some losses. Yesterday it dropped 10 . Today it is up 2 . Hasnt erased everything from yesterday. Charles Dagen Mcdowell mentioned the strong numbers, the best in seven years for july, car sales are out. We will find out why that is taking place. Dagen unemployment claims at their lowest level in five years. And ahead, a plan to get everybody back to work. But they all end up working for uncle sam. Connell interesting. [ male announcer ] a car that can actually see le a human using stereoscopic cameras. And ev stop itself if it has to. The Technology May be hard to imagine. But why you would want it isot. The 2014 eclass, it doesnt just see the future, it is the future. Bounce is great because the freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. From capital one. Boris earns unlimited rewards for his Small Business. Can i get the smith contract, ease . Thank you. Thats three w paper shredders. [ boris ] put em on my spark card. [ gart] boris Small Business earns 2 cash back on every pchase every day. Great businesses deserve unlimited rewards. Read back the chickens testimony, please. Buk, buk, bukka [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose 2 cash back or double miles on ery purchase every day. Told you id get half. Whats in your walle 23 minutes past the hour this is your fox news minute. We take you to cleveland where aerial castro at sentencing is underway convicted of holding three women captive for a decade in his home, made a deal to avoid the Death Penalty. He pled guilty to 937 criminal counts and faces a life sentence plus 1,000 years. The n s a v 9 the report its database tracks all internet data. The guardian story based on weak document says analysts see our any individual emails and web searches as well. In a statement to fox news the statement says, quote, allegations of widespread unchecked analyst access to collection data is simply not true. The european Budget Airline easy jet is not so easy. When they canceled the geneva to london flight and the male passengers their flight had been rescheduled, set to depart in 20199. The airline apologizing for the 86 year flight delay message blaming it on a computer glitch. Cant imagine that was human error. Back to you. Dagen good to see you. Car sales in july were on fire, not just cards but pickup trucks, vehicles overall. General motors up 16 in the u. S. Chrysler and ford posted a 11 gains, the best july in 7 years. What do you make of this . Worried about the road ahead, auto critic with the Detroit Free Press joining us from michigan, good to see you. I did not intend to make a car related pun about driving. A lot of this is in a pickup trucks and larger vehicles. Are you worried these automakers are making the same a stake they did in the 90s . It blew up in their face. Not really. The increase in pickup trucks is due to a lot of businesses stocking up again because they think the economy is Getting Better and many as you thes we see our smaller than the vehicles that existed in 90s and more fuel efficient. The problem is when car and suv sales get out of whack and you are making your money on huge vehicles and losing money on cars that doesnt seem to be the case. The ford fiesta is up 90 in july versus last year which was a stunning number. Dagen we should really celebrate these automakers and rejoice in effect these sales are so good and the quality of these vehicles is so good. You get in any small american sedan these days and even in many cases it is superior to what you would buy in japan or from the japanese automaker. The technology in all vehicles is phenomenal compared to where we were a couple years ago and if you look at the domestics they are fully competitive these days. There was a story in Consumer Reports that all the chevy impala the best sedan you could buy. Better than some luxury cars. Things are looking pretty good and people are regaining confidence and that is helping the sales picture. Dagen i am a daily reader of the Detroit Free Press. It was last week you ran article about some of the things that were bothersome like car loans, the terms are getting longer. Why is that disturbing . Why should we be concerned about that . A couple things to keep an eye on to make sure they dont get out of whack and one of the ms. This 72 month, six your car loan accounted for 30 of sales in july. That is a long time supporting higher sales prices for cars. The average car costss 28,000. That is good but if people are stuck in loans that are so long that the cars worth less than they owe that is a problem. Dagen one last thing. How do people in default if the elected a bankruptcy filing . Talking about how great car sales are but how are the folks doing . It is a mixed picture. There is nervousness, there is a feeling that a lot of this had to happen, it was inevitable and the future is better but how we get from here to the future is an uncharted road. Dagen thanks for being here, youre welcome back anytime, taught cars all day long. Please come back very soon from the detour free press. Connell next up, never boring when marshall aurbeck shows the. Is latest theory is if you want to work the government should guarantee it. The government should guarantee the jobs. Marshall will be ahead with that pand i am sure we can think of few questions. Dagen arod. Will it be a lifetime suspension . Speculation and may be news ahead. Connell lets talk about Facebook Stock price for a moment. Everybody making a big deal, where are we now, nicole . Nicole above 38, people started to take some profits, and look at it now. 37. 86. It has improved. It traded as high as 38. 31. These are the highest level since last may. We had the ipo, the botched ipo, as high as 45. This stock opened at 37. 65. Dagen jobless claims at a five and a half year low, but Unemployment Rate is still 7. 6 . Because of that our next guest says the government should offer a Jobs Guarantee Program turning Unemployment Office into an employment office. Connell and never boring at the institute for new economic thinking. Speak often wrong, never borin. Connell have added, what do you want to do here . In effect we already have historic situations like the new deal where we have had conservation, my suggestion would be to make it a permanent feature of the government. It would not have to create a new level bureaucracy. They could be doing the same kind of work right now. While you want to subsidize effective unemployment and you can be giving people jobs . Have transitioned jobs to maintain the habit of working. Eliminating longterm unemployment. Keep a shovel ready for spray to get back into the private sector where the demand improves. Dagen you have to pay them something. Isnt it better somewhere else . Youre paying already with Unemployment Insurance. Dagen not as much as if they were fully employed. I am talking about asic level. Dagen Unemployment Insurance expires. And we have additional negative cost, breaking on the families, alcoholism, and risen, so there many social cost which you cannot calculate and the basic confines if theyre working or not working. Connell is one of those things why didnt i think of that it it was that simple. Dagen dont think thats great, dont want more postal workers or tsa workers. Connell more to the point do we need to spend all this money. So many reasons not to do Something Like this. My point is your spending the money already. Connell but not as much. The math cannot be as much. The net effect in the context including unemployment programs, food stamps, youre probably looking at a net addition of 50 billion per year. What happens is when you get more people into the employment q, people begin to draw unemployment. Again, this is a static analysis. I dont actually have the same kind of phobia you have. Dagen i have a phobia of the government become a much larger than these are jobs that last forever and you mentioned the new deal, employment was one third of people unemployed during the great depression. We are back down to 7. 6 . We are not in the dire straits as high as it is. It is 13 low enough to avoid creating the government to seem bigger than the one we have now. The question was do you want to bail out detroit . No, much rather have a program that allows people to 1 work soe dont have to have bailouts of our municipality. You want to have an army of unemployed, people ready to be more productive for the private sector. You dont want a situation where you have the buffet of labor becoming unemployable over the longterm. Connell always good to have you. Never boring. So there you go. Dagen white house spokesperson adding fuel to the fire over the phony scandal. The white house is dealing with. Fox news is here to talk about that. Connell Alex Rodriguez in the hot seat, Major League Baseball tickets to follow through with bigtime suspensions could come down anytime according to reports. Will arod ever play again . Coming up. Dagen jeff flock is outlet shopping going through shopping bags looking at what they have been buying. He will show us some new brands. Connell we will be right back. 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Giving you the power to prosper. Dagen White House Press secretary pointing out in yesterdays briefing which scandal president obama things re phony. Whether it is about the tax in benghazi and the talking points are revelations about conduct at the irs, it tends to turn this into a scandal have failed. Dagen so they failed. Really . Joining us now from washington, d. C. These a incidences into scandals are phony, they failed, what do you say . Investigations are continui continuing, it is getting tougher and tougher even though the white house and the president continue to use that phrase for that to stick up. Speaking to one of them and the fbi as being behind this attack on the conflict in benghazi. Doing an interview. As the fbi says theyre trying to track down these people. So that in and of itself is scandalous, but there are many s investigation continuing on capitol hill. The irs situation, there is new lessons today. Taking the fifth of in testimony, the federal election commission, how that interaction happened and what exactly was happening with different groups and individuals based on the irs and the sec, if they go outside the irs, that he comes a real problem for this administration. It is still going on. Dagen the evidence is out there that the American People do care about these issues. You ask any poll, which breaks down about 40 of democrats, 34 republicans, 22 independents, but they step into the 50s and 70 of what they think people think these investigations should continue on all of these different fronts. Every poll suggests overwhelmingly American People think they should. Dagen it is good to see you. Every night you must, must watch on the fox news program. Hope to see you very soon, my man. Connell moving onto a very, very, very real one from Major League Baseball. Mlb is considering a lifetime ban for Alex Rodriguez and the yankees and others for eight more players. A big sports business story. Duke, good to see you for stopping over. I guess the basic question everybody in this town is talking about today is will Alex Rodriguez ever play baseball again . He will reach an agreement. Originally thought he would fight lifetime suspension if he got it. I think he will try to cut a deal. Connell 38 years old already. Knee surgery as well, let me keep him off the field as well. Tough to come back after basically all of next year and then at age 28, let alone 38 with all these injuries. Connell record revenues last year, so you could argue as popular as it was in the height of the steroid era, that said as they come down hard on these players, what do you think the effect will be on the game next year . I think on the game of baseball and other sports. Lets say Alex Rodriguez is banned for life, does that put pressure on other sports to follow suit and make their penalties, formants enhancing drugs tougher . If we look at this, it is not only Alex Rodriguez, talking seven, eight other players. Guys in pennant races right now, nelson cruz, the rangers, four games back in the west, they may lose him and that would be a big blow to him. The Detroit Tigers are in first place, they just traded for him and are bracing to lose johnny. It could affect the race as well and potential revenues for teams that would get into the postseason. Connell while they ever really get cleaned up the sport or other sports . For some of these drugs have been around for more than just the steroid era. Everybody is vilifying ryan braun right now. He signed a major deal well over 100 million, but he will still make his money. Connell minorleague guys hardly making any money. Cabrera was suspended last year and over the offseason signed almost 2 million offseason deal. If you really want to be serious about it, do what you do for gambling, pete rose fan for life. If you really want to be strict and push it out of the game, you ban these guys for life. Connell you are saying this year and next. Potentially would be 40 million loss for Alex Rodriguez. Connell good to see you, Duke Castiglione from fox 5 in new york. Dagen joining us now, down on the floor of the new york stock exchange. I say why do we care, do you . It is a century mark if you will, psychologically it is important, psychology is an important part for investors hiding in the safety of the bond market now realizing this not a safe as it was, so a 1700 mark is the idea you should be in equities and they can go higher. Dagen better than a much better than expected report labor department. Adp number certainly lit that fire, so you can see with all of this going on, the expectations built in and the jobs number, unemployment numbers, granddaddy of them all of trading, that is what will without a doubt help maintain the direction we are in or correct it fairly dramatically. Dagen thank you so much. Connell more good stuff coming up including the way to save time while you are waiting for your flights in chicago. Dagen the shop until you fly details. Right now, seven years of musicare tweeting. Eamed. A qs 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. Folks have suffered from frequent heartburn. But getting heartburn and then treating day after day is a thing of the past. Block the ad with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. Zero heartburn. Dagen bigname retailers are opening up and branching out. Connell jeff flock hitting the ball, there is an added bonus. Shop while you are waiting to fly . Jeff i tell you, it is a mall unlike any others. You can shop here and go to the airport. I am with a man whose reign child it is, a company, you may know what. You are kind to revolutionize the Shopping Experience. We are trying to the Shopping Experience as a social cultural endeavor as it was in the 70 70s. It sort of got out of hand and out of control and it became separate and apart from the city. We want this to be home. Jeff you are probably the closest Outlet Center in the country near a large city. It has more outlets than regular stores. Is this the future . I think the future is fewer but larger. Fewer but more important would be my recipe for the future of outlet development. I believe the brands do not want to have 30, 40 outlets. It sours the original branding, it dilutes a bit. Jeff this begins to cannibalize the fall store and neiman marcus. We dont see that overlap any more than 10 on the best today. One would not shop the discounts side of it. They are just different cultural changes, but we did understand the brands were not presenting themselves these glorious brands from a whole another world. Jeff this promise promise to ba better stage, 500,000 plus square feet, many high and outlets. I am the aspirational one, mr. Weiner would be the one who is already there. Connell jeff flock in illinois for us. The market up today. More talk about obamacare coming up. There is money to be made from it. The stock has jumped the most in seven years yesterday, dennis and cheryl next. Dagen what about jcpenney . Now that report about lending being cut off refuted, denied by jcpenney and an alice is ahead still likes this stock. Llain ] well mr. Baldwin. It appears our journey has come to a delightful end. Then i better use the capital one purchase eraser to redeem my venture miles for this trip. Purchase eraser . Its the easy way to erase any recent travel expense. I jujust pick a charge, like my flight with a few taps, its taken care of. Impressive baldwin. Doest work for hotels . Absolutely thank goodness. Mrs. Villain and i are planning our. You scare me. And i like it. Letgo whats in your wallet . And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain hethy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Dennis dow still a triple digits. Cheryl the dow is still soaring. Coming in a fiveyear low. Still wondering what the fed is doing. Heres a question for you, or the big banks creating the next toxic bubble . We will tell you about concerns on buying to rent bonds. Dennis money to be made from it. Oneonone with the ceo who stock jumped the most in seven years. Cheryl is time to put jcpenney just down . The stock is up today at the New York Post story. Analysis says do not count out this company. Dennis why should gender matter for the new fed chief . My take coming up. Stocks every 15 minutes, Nicole Petallides, s p 500, i will let you give it, nicole. Nicole alltime record highs, the Dow Jones Industrials. I know you know the number. Lets give it to the viewers. So that was our high of the day. Just about a point away from the alltime record intraday high, they have up arrows, Dow Jones Industrials up 122 points right now. Lets take a look at an ipo today. This is a company, organic foods, 160 Stores Across the u. S. The ipo price, i am telling you right now farmers market. I will give you the facts. Ipo 18. Wheres the stock trading now . 112 . Cheryl i have been to them, they are great. Lets take a look at the dow, up nearly 140 from recession lows we had back in 2009. Creating a real estate bubble that pop, set in the market into a freefall. Some banks are placing their bets on housing. Reportedly joining bond backed by rental payments. We should first say what these are. Blackstone has been buying foreclosed homes and theyre getting in and renting them out. The analogy would be Real Estate Investment trust owning apartments, renters and providing a cash flow stream and that is distributed investors in a bond like payment. Cheryl they are not confirming this. It could be september that they are available for investors. Speak with maybe an institutional project. Something i think that is a burden to point out, we look at what happened with the financial crisis, financial models that informed the perception of risk and the ratings. Those financial models went back 15 years during which time he didnt have any blip in residential housing. Going up every single year. The last 15 years is going to include the financial crisis. This means the perception of risk, around these portfolios will contain 35 fall in the value. It depends on how it gets securitized, but they will be much better able to do it and they were in the past because they had data much more accurately reflects. Cheryl people began to miss their mortgage payments. This is based on people making the rental payment . Was i value in homes actually and saw a fall in the residential infrastructure building and residential asset allocations. As it started to come down, you had the economy falter. When the economy started faltering you had the foreclosure payment. The point here is this. There are two takeaways from this, i understand the breathing very cautious, but you have to understand blackstone is a very transparent, very thorough organization. It did not have any issues that were not accused of any wrongdoing, they are very reserved firm. Cheryl are the landlords . This is the big question. It is managing and parchment is one thing. Managing dispersed homes we have a geographical issue, to experts, technology has helped in this space, talk about how theyre doing this, there really is a lot of technology to help them manage the properties. Cheryl homeownership at an 18 year low right now. A lot of income spent on rent. I get it. I is going to be actually prices have gone up no that bece is more mortgage issuess on the issue aside, we have a cap as to how may people can become homeowrs supply of qualified renters that will help. Cheryl very interesting. Dennis our next guest says dr. Keep on pushing higher because right now they are the in town. President and chief Investment Officer joins us now. You say stocks have nowhere to go but up the fed has left investors to her to turn but income. Cheryl i think investors are looking at the equity market trying to get their feet wet from the disasters in 2008, and quite frankly so many people need yields right now across the world. So few places to find any good yield. Every one of those aspects investors will look at more closely, get their feet wet. The market is not a trend that will go upward forever. Perhaps do some options strategies to get the feed into the business, get the dividend and the little cash flow from options as well. Dennis so many have missed out on the stock rally. If they had money i dont have the touch for years, number one option is cash. Why are people not getting it . Are you too afraid of getting in trouble for making investors lose money . Nobody wants to lose money or somebody elses, but when you look at the facts, people have to be concerned about whether or not they will lose money in the bond market. If you look at the apple bond when it came out and where it is now, down about 13 . People may be got sticker shock on options that thought were completely safe theres a lot of volatility in the lower rates and if they work at all and continue to move up, youre going to have more people move from the bond market and the sidelines to try to occur some of those dividends. Dennis wall street has been fearing obamacare. You think takeover will emerge out of that making you money in stocks. Tell us. It is in the investment business, we so what happened after the past with the sarbanesoxley law. There was a lot of costs associated with the regulation not just civil penalties, i think you saw lot of Corporate Executives who did not want to convert their stripes into horizontal pinstripes. So you saw lots of companies capitulate. They went private, they went offshore or they merge. We have two very significant pending pieces of legislation that will do essentially the same thing. You will see some Smaller Companies that are associated in the financial area and in the Health Care Area that will experience the cost and seek partners. Dennis tell us why you like the drillers. It is hard to be able to identify what targets may be out there in an acquisition deal. If you work with a company that will benefit with an increase in that merger, i think you have a winner. They are a facilitator of merger activity. We all know what is taking place, but the key thing is when youre using the fracking as the development of Energy Producing areas, you have to do a lot more drilling, a lot more seismograph at work in order to find where that drilling is those basic areas will be attractive i. Cheryl hot month, gm passenger cars up from a year ago. Retail sales increased 23 with ford small car sales jump and 32 year over year, u. S. Grew 19 giving for the best july since 2005. Price reporting last month with your sales up 11 yearoveryear help in the company to the best july in seven years. Dennis. Dennis the search for the next fed head. The frontrunner is the feds vice chairman since 2010, imminently qualified. But some people focus more on her gender. The first female ever to run the fed. Oh, who cares. She may be all of these things, gender simply isnt the issue. Yet 37 female members of congress led by maxing waters sent a letter urging the president to give janet the job. Sheila bair says it is time to break the glass ceiling, testosterone and wall street feels were couple with guys than girls in the main rival is lauren summers. He quit as president of harvard after sticking his foot in his mouth on women and hard sciences, so they are picking summers with sending the wrong message. Say it cannot be trusted to understand everyday economic problems women face. Really . Should gender be a factor in picking the next fed chief . Your comments coming up. Cheryl megadeal with the federal government, investors drove the stock to the best in seven years. The ceo joins us later on in the show. Dennis ribboncutting on the richest fictional characters. Bruce wayne. Counting down to the richest character at the end of the show. I bet you cant guess who it is. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Lrn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrivehe market. All on thinkorswim. From td ameritrade. Wh the bounce dryer bar, my clothes will be fresh out of the drawer for weeks. And its great when things last long time. Well. Most things. [ male announcer ] how do you get your bounce . [ woman ] cant regret fresh. Cheryl we were looking at stocks in the green and in the red. Now take a look at American Express and bank of america. The names are leading the dial higher now. A lot of us on the heels of the fed from yesterday, take a look at initial jobless claims, theyre coming down. Two Major Companies watching right now. Who do you have . Nicole one is lower, one is higher. Refining profits over 90 . Reducing the share buyback. You can also see Marathon Petroleum actually spun off in may remember we look at this one talking with the fact it is a record of 190,000 barrels of gasoline and experts, and second quarter. We see that one thing well with a different picture than exxon today. Cheryl thank you. Dennis time to make some money in the house of pain. Charles this is all about the super information highway. No more speed bumps. None bigger to me and the internetbased Companies Making a lot of money in this stock. Take a look at this. When these Companies Went public first day of trading the lowest price after that, the stocks have a lot of bumps in the road. Truly first day of trading, we all know facebook, 38 by june of last year, slow 17. All the stocks are up significantly today and yesterday. So the question is no more speed bumps. I dont know, it is nerveracking. They will be morepetition. We know some of these things for instance yelp has a p e ratio of 66, facebook ratio is 40. That might explain why the short position is that 52week lows. Cheryl this point about advertising revenue, heard you talk about all three and concerns about that. I can see why there was a selloff. Charles we took profits on yelp yesterday. Am i crying this morning . A little bit. You have two because he sees isg from 24 to 15, you have to understand the risk involved. Dennis you have to wonder, maybe you should buy a little bit more when it goes down to 17. Charles the point is this is the place to be. They will continue to be volatile. I think you have to be in them. Dennis thank you very much. Cheryl coming up, the case for sticking with jcpenney at the stock tries to recover today after a beating yesterday. Dennis the jury asking questions of the judge. Liz macdonald will be here with what that means. 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 ats 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. S just finishedast the the thre reading a statement at the aerial castro hearing. Accused of kidnapping, raping and then holding she and two others captive for more than a decade may deal to avoid the Death Penalty he pleaded guilty to 937 criminal counts and faces a life sentence. And as a laker has been granted one year of temporary asylum in russia, he has been at the moscow airport since arriving in june 23 in the west of the manning russia sentence him home to face espionage charges. Hours before president obama scheduled to meet with lawmake lawmakers, the agency denying a report that the database track all caps next data. The story based on leaked documents show analysts can scour any individual on chats, emails at will. The nsa says allegations are simply not true. Both of your headlines. Dennis the stock rally continues. The s p 500 rising to an alltime trading high. Remember, 1704. 97 was the alltime trading high to hit earlier today. The dow up 128 points. If that is not an alltime trading high, it is darn near it. Jobless claims did pretty well. I asked him surprised, not so much a surprise is worried the federal pullback on the minus got started anyway. The jury deliberating, an interesting question this morning. On what it might mean. The question is theyre asking wherever this is a Different Levels of it so to investors, so the question is do we need to find operated as a fraud or deceit all the levels the three levels in the deal or just one of them. Trying to see if he coit fraud and one piece of the deal sold to banks. The other question is about the money he made, he made money at Goldman Sachs ask another question, they are saying does any money he obtained satisfy the security laws that say yes obtained money in the fraud. Meaning there is a salary. This means the jury at this stage in the case is asking these questions about satisfying the different sections of the security law to see if they found liable. Dennis is it only one level . It makes me think you have not convince me, the jury, that he is guilty. This guy did not make extra money on the side, instead he merely got his salary, goldman would say we are not paying him to be fraudulent at all. Cheryl depends on how the judge in questions. We dont know yet how the judge is going to direct them, but these questions we have that have just been released by the court tells you the jury is possibly thinking negatively about at this stage of the case. The jury continues to deliberate, this could swing either way, for or against, but for right now they are asking negative questions. Breaking news. Dennis thank you for bringing it to us, liz macdonald. Stock pickers, and now we six e results of the monthlong stock place, this friday we will say goodbye, they decided to put down a bit of a wager. I look forward to taking on robert, fox business summertime showdown and i am betting a pint of ice cream that i will win. I will buy him an arizona taco if he beats me on the fox business summertime showdown. Cheryl ice cream and tacos, the loser has to pay, you have to watch the showdown is friday to see whose picks performed the best, and right now it is really, really close. Dennis i still want to hear from you. Should gender matter . Cheryl staying out of that one. Shareholders sharing one Health Company is still with the government. The ceo is here. Jumping up on the nasdaq. So stay with us. 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And takeover speculation is, and seeing get higher and couple risks, and broadband usage. Two months to go until obamacare, not those exchanges, ending to the beltway with the changes now that they go into effect. We just got another 24 hours before Congress Leaves Town for its august recess and as a result we are seeing all kinds of action in the capital and in washington about the implementation of the president S Health Care reform law and the hearing going on at the house ways and Means Committee about the enforcement side of this. The irs will make sure the people getting government subsidies get them and if the wrong people get them how the government would get the money listen to this exchange. Of a subsidy they sneunknowingl the law does not make them eligible for you will have to tax that back in two years time to all of it. That is the law. We are going to help the individual when filling out their taxes and navigating through the exchange to understand whether they have an employer private plan. You dont have an employer mandate and you need to verify this, you are going to have a lot of people getting subsidies that they are not supposed to get and hit them with a big tax bill in two years to claw it back. One of the lines of attack by republicans. They are looking at additional legislation to either repeal obamacare altogether before everything takes effect or at least defund and delay it. Cheryl peter barnes out of washington. Thank you. Dennis with you are for obamacare or against it, and gaining the most yesterday, in seven years after the company reached a deal to set up Health Care Insurance exchanges in 36 states and joining me is chairman and ceo gary lauer. With stock soaring let me put you on the spot in the opening of this interview and ask you you are headed for a tumble of people will start buying you are going up from here. I dont know the answer to that either way. Were pleased with the reception from the Investment Community but more importantly the real winners arent us. It is consumers. There will be choices about how they enroll in Health Insurance and we have been at this for a long time and the Order Exchange and whenever we are in the same sentence we are doing this so i think this is an example of private and Public Sector coming together hopefully to help people. Dennis what is the new deal and who pays you to do this . Interestingly you have states building exchanges and many have opted not to. There are 36 states the federal government will be setting up exchanges. We signed an agreemen federal government which allows us to host or and roll somebody who is subsidy eligible to the Previous Report just heard. Our reach to these people these very difficult. And we are a profitmaking company and as you know all of that has no impact on the consumer because it is the same product at the same price. We just happen to have arrangements with healthinsurance carriers. That is how we Fund Business and exchanges doing the same thing. Dennis by federal government paying you to set this up you make money by getting a cut from the insurance through the exchanges. The you foot the cost of setting up these exchanges . We do. One of the benefits here is this saves taxpayer money. Many of the states, my home state of california is spending hundreds of millions of dollars to build an exchange. Every time they enroll someone on the exchange there is cost involved. Every time we enroll someone we bear all the costs. There is not a set of costs the government and we save taxpayer money. It makes a lot of sense financially for the obviously president s of spades but more importantly we are good at our reach, we do this on line, no paper in the process, we blazed the trail in terms of doing this on line. Dennis great profit motive to earn more money the more people sign up and the more people sign of the better of obama andcare will be, pretty interesting. Is this an exclusive deal for the feds or could some other rivals set up the deal and said the exchanges in the same markets you are in . The fed can elect contract with others. We have to be the largest. Dennis tell us about the state. You got lines out to 14 states and you were frustrating they were dragging their feet. Where is that . We are talking with them. What i hear from some states is understandably difficult to build these exchanges and they dont have bandwidth to work with this. My view is that is the reason they should be looking because we are in these states already and all we can do is help, whether you like the affordable the land so we might as well get people and rolled to keep prices and stabilize and get this to work. Dennis for more upward movement, thanks for being with us, gary lauer, the day. Cheryl there are many who think it is time to put j. C. Penney, the company on death watch. 10 yesterday, analysts coming up, that is what he will tell us. Dennis of j. C. Penney surprise, you may be using your smart phone to pay up there and everywhere ahead in my media minute. Clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades fre inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment compaes. I am tracy byrnes with your fox business brief. Mortgage rates climbing, low by historical standards. According to freddie mac the rate on a 3year loan is 4. 39 . A full percentage point higher than in early may, jumping after the Company Announced an additional five hundred million stock repurchase. Also declaring Quarterly Dividend of 0. 40 a share, and sparkled as november 15th. Downloading free mobile apps, more often than paid ones. 95 of the top 100 apps have one kind of privacy compromising behavior. The application also found there more likely to transmit private information than android. That is the latest from the Fox Business Network giving you the power to prosper. Cheryl oil getting a big boost. Coffee is not perking up too much, lets get to the trading pits of thisy. The oil market is picking up and all of a sudden good manufacturing data is bullish. A couple weeks ago got Strong Manufacturing data bearish because we were worried about papering but the fed saying they are more worried about a this inflation, what does that mean . Explosive move in oil and more oil exports from the u. S. Because right now with europe the supply concerns over there and the wind costs in the u. S. Will mean exports are going to explode and what about the coffee . Great news coffee prices hitting a four year low. Lot of traders were worried about the brazilian was going to damage and lower supply but not to worry. Prices continuing to fall. An six would be normal. Dennis time for stocks now, the s p 500 crossing 1700 for the first time ever. How high could it go. And you guys on the floor, always wary and any time stocks are rallying are you worried today. The longterm trend is above 1700. Intermediate around 1725 on the s and p, you may see a pause and going into the middle of august with Technical Analysis and depending what charts you used to suggest significant downdraft in the middle of august, and the last several months and the money flowing in is coming out of the bond market and the equity market. Dennis the old axiom sell in may and go away is total bund . You left a lot of money on the table, one of the best julys we have seen had a pretty good year in july alone. That is depending on what industry you are looking at. Dennis thanks for being with us. Cheryl another blow to j. C. Penney, commercial lenders c i t cut off credit line, a report penneys is a denying but the stock should be on death watch and in the morning star analysts, and the stock is 10 . And the company has denied the New York Post report but something is not what is going on . People are worried that the home longe, the home relaunch in 500 stores is more destructive than people expected. In general, and they are the peak draw on the credit over the summer because they dont go back to school and start shipping from asia for the holidays. In cash at the end of the quarter. And final funding the 9 the report and should also point out it only funds 4 for those vendors anyway. But yet the stock is 10 and reason for people to give a seller in the long term. I am a believer that it will turn around but it is a classic story that there is going to be when do you pick the peak of pain and it was ironic there was downgrading overnight. The analysts, this is the last straw, more trouble whereas this morning to me the news is not bad. I would also point out there was a difficult recession in 20082009 so they were more conservative so if there is some basis for the rumor that they did talk to somebody cheryl the post reported the c i t sat down on tuesday and had to let the financials and has taken them awhile to get the peak at the financials and the executives, we dont know, said we dont like this story. That is not unusual. Other vendors or factors would do the same thing. Cheryl todays Closing Argument between macys, Martha Stewart and any, of the interesting things that came out of it is you have to wonder if any would be breathing a sigh of relief if they dont get this to go away because this is a ten Year Agreement with marcus during. Ten year commitment that the current ceos made, ron johnson made this deal with Martha Stewart. Interesting point, the martha brand will be strong for a long time. Personally i think the quality of the merchandise is as important as the name. If the name is going to continue it is a split deal where they have to share it. That might not be as attractive either. Consumers do recognize the quality of the product and the design. Where that comes from i dont think is critical. Cheryl as long as they can get on sale that is aurora important part. Thank you very much. They have been but people want what they want. Dennis in todays media minute next time you order a burger at a fastfood joint stick the best of the debit card and use your smart phone. Verizon, at t, t mobile going nationwide with isis, a service that turns your phone into a debit card, tested in salt lake city, a marketers dream. Two thirds of users want offers from their favorite brands, 25 big retailers are installing isis deer in a one. 3 billion locations by year end. In film white after belly flop, two big budget flops, pacific rim from warner and turbo from dreamworks suddenly looks better overseas, and taking 140 million overseas, and theres talk of a sequel, and turbo cause 130 million to make, at its opening weekend. Will turn a profit on overseas sales. The bitter battle putting cbs against Time Warner Cable latest results earnings pershare up double digits, both shops stop trying. Both of you. Cheryl a gambling problem in las vegas. I will fill you in in the west coast minute. Dennis your last chance to get on what is bugging me. Should gender matter in choosing a fed chief . [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. What do you do when you can no longer get around like you used to . When you fear losing your independence . Who do you call . Call hoveround now, to see if you qualify for americas premier power chair. Hi, im tom kruse, inventor and founder of hoveround. Now you can do more, see more, enjoy life more. Heres why hoveround makes it easier than any other power chair. Hoveround is more maneuverable to get you through the tightest doors and hallways. More reliable. Hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. And most importantly, 9 out of 10 people got their hoveround for little or no cost. Call now for your free dvd and information kit. And now every hoveround comes with this tote bag and cup holder for handy access to your favorite items. You dont really have to give up living because you dont have your legs. Call now for your free consultation. And right now, get this limited edition hoveround America Travel mug free with your hoveround delivery. Call or log onto hoveround. Com right now cheryl time for your westcoast minute. California and several states fighting the new move to increase federal authority over toxic chemicals and all they are regulated the david vitter of louisiana wants Chemical Companies to only have one set of rules on a National Scale but california which has the toughest laws in the country when it comes to chemicals the federal government wouldnt be strict enough and should need regulation in the states hands. Tourists flocking to seen city but not its casinos. Despite 39. 7 million visitors last year total revenue from gambling and entertainmentvegas. That is 500 million less than what was recorded. And for nightclubs, day clubs, shows, and shopping. And the warmest ever ever, the heat wave leading to a new record in anchorage for the most consecutive 70 degree day is ever this week, president s advised to do their best to take hold the airconditioning not exactly common in alaska. That is your west coast minute. Dennis earlier i asked for your take. Should gender matter in your election of the fed chief and heres what some of you had to say . Robert says, quote, should it . No. Will it . Of course. Social justice trumps competence in the minds of liberals and neither should be in academia. Theres a reason some teach and others do. Great fed chair, jamie dimon, that simple. Erica gross says gender should never be a factor. Most qualified, least corrupt candidated get it, michele says whatever happened to the best person for the job . Cheryl over the past two hours we have been counting down the richest fictional characters according to forbes with the likes of bruce wayne and richie rich were real, how much would they be worth. Who is number one . Scrooge mcduck. The bird swings in gold coins, worth 64 billion if real. Dennis i worked for ten years. Great pride in their research but how did they research this . Cheryl coming up, reading on the health of the u. S. Economy has been delivered. Ups chairman scott will be joining adam and laurie, exclusive interview. And dennis retail on wheels, a close look at shopping trucks. Cheryl extra pound of debt, which would you least like to have . Obviously they have extra pounds on them. Anyway, mr. Poling on priorities. A quarter million tweeters musicare tweeting. Eamed. And 900 miion dollars s 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. Togeth. Adam hard to believe it is august 1st. Lori stocks of to a great start, manufacturing, comfort and jobs gained but maybe not so fast. Potential warning signs as the dow and s p go to new time highs. Lou we will talk with one of the nations largest companies, how the economy and ups are getting along. We are going to ask the chairman and ceo, scott davis and a fox exclusive, what does the Economic Outlook looks like for the u. S. And the globe . Cheryl maneuvering led the administration get ready for difficult rollout. Dennis if you thought you knew anything about this is the capital think again, Charlie Gasparino with new details. Sacs indictment from the man who called it too two years ago. Mark rossini is here but it is time to check stock as we do every 15 minutes and on the floor of the stock exchanges Nicole Petallides. New highs fresen be and dell. Nicole an exciting day on wall street. You are hoping for your 401 k or your eye are a to go up, a band away and that is what everyone is seeing, recordsetting day on wall