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tv   Markets Now  FOX Business  May 7, 2013 11:00am-1:01pm EDT

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dagen: the senate giving the okay to the online sales tax bill. art laffer tells us why he is okay with this or postal. connell: new jersey's governor has weight-loss surgery, thinking about the oval office in 2013? dagen: and then, disney working magic at the box office and the small screen. at look at why the hous house oe mouse is on firm ground. coming up on "markets now." connell: that is your story of the day, chris christie? dagen: absolutely. front page of "the new york post." does his personality change? connell: brett bear coming up to talk about that. nicole petallides at the top of the hour from the new york stock exchange. nicole: good morning. taking a look at a market with
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green arrows, the dow back above the 15,000 mark where it was last friday. set a new all-time record intraday highs. the nasdaq hit an intraday high, but has since pulled back. a majority of stocks in the green. caterpillar, united health care, we've got a good news out of europe and we have seen some strength in the euro pulling back. gold down. connell: we're going to get to the cyber threat now. u.s. government and financial websites at risk. cyber attack today. anonymous hackers threatening to strike with what they are calling operation usa. the group says it will target nine federal government sites including the white house and defense department as well as 133 financial institutions.
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experts expect disruptions in the form of denial of service attacks. helping us out with this story once again, how serious should we be taking the events? >> very seriously. there is the attempt to mitigate this phenomenon. but coordination among the cyber movement coordinating the attacks between today and the end of the week. connell: what is the biggest worry? >speak we have never seen this before with targeting attacks not just in terms of the targets for distribution of attack or cyber weaponry online. almost like a call to arms of adversaries in the financial and u.s. government.
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not only the targets, but the weaponry at the same time. connell: are the banks ready? you say they are stepping it up, but are the banks ready for this or no? >> i do believe so. there are some financial institutions ready more than others with the level of cooperation is ready. connell: is that by size >> depends on the team, what kind of expenditure they spent in the name brand is more of a target than others. connell: it has been a big week in this area. we talk all the time about the role of the chinese in some of these attacks would have the u.s. government point fingers directly at the chinese for something new, before i ask about it, let's watch the assistant secretary for deputy assistant secretary of defense talking about that. here he is. >> chinese military continues to explore the role of military operations in cyberspace as a
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future of modern warfare and develops doctor training and exercises exercising information and technology and the rations. in addition to 2012, numerous conspiracists run the world including those owned by the united states government continued to be targeted by intrusions, some of which appear to be attributable directly to government and military organizations. connell: there has been plenty of speculation, plenty of reports from outside groups saying that might be the fact that the u.s. government basically point a finger at the chinese government is new. what do you think the significance of it is? >> it signifies the u.s. is ready to publicly signal to the regina that it is time for international diplomacy. there are dozens of countries, about 20 in all with this
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infrastructure, but the allies. connell: you are right, there are other players in this, but the number-one and number two economy is the world going at it in cyberspace. it hasn't changed that relationship. even if you know that is in the background, economically and everything else must change your relationship. >> they're heavily invested in the u.s., but the fact of the matter is the u.s. is more concerned with other adversaries in cyberspace. there are numerous countries in eastern europe with institutionalized the hacking. connell: as always, thank you. thank you for digging deeper into this thread all day long on
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"markets now." next hour, dennis kneale one-on-one with steve ward to talk more on it. i look at steve jobs. stock plays coming up. what does steve jobs have to do with this whole thing? the idea the apple cofounder has been pushing product with the iphone and what have you so early, were we ready? the steve jobs effect coming up in 15 minutes. dagen: talking about us being at war in terms of cyber war. now onto the market and the economy. cyber threats posing a concern for investors or not? chief global economist at principal global investors overseeing almost $300 million in assets. good to see you. is this risk at all stretc strud into the market at this point?
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>> probably not too much. there are three ways that could affect the economy, and it is unfortunate the two largest economies in the world might be engaged in this. the first is there is uncertainty in the markets it creates, you just don't know what it is going to, how it is going to turn out or what might be the impact of that. secondly there'll be a cost to businesses as they have to meet this threat whether it is new it, defenses, and third, if it really got serious, it would show up in international trade. we traded great deal with each other and around the world. it would be bad for both of our economies. dagen: could it change the way americans and consumers really worldwide behave? could it cause them to turn down? mobile transactions and e-commerce are such a focus of growth and a necessary focus of
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growth, could that change the behavior because that is another way it could be factored into the stock market. >> circuit that is true, and that is what would create the uncertainty. if you are in another country, if you don't know that is really safe, that will create a lot of uncertainty, showing up as an impact throughout trade. less transactions and more cost protecting all of that information. dagen: how big a cyber attack or volume of attack would it take to really change our behavior? >> it would be much more than we have seen today. many have been the point of some sort of attack and denial of service with some regularity to a lot of businesses so some are kind of taken in stride, it would have to be today, and show
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up in some economic impact through trade or increased cost for business. dagen: one last thing, when that tweets came out about the white house, briefly wiping us $200 billion in market value, we will still see investors because so much trading is computerized. if there was a similar incident down the road, we will see a replay of that, will we not? >> it certainly could be, that is one of the problems with high frequency trading where you have computers make decisions on just information in a microsecond or so, and that can be a problem although that adds a great deal of volume two trading and into the market so that liquidity helps investors in the long
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term. dagen: it was great to see you. be well, we will see you soon. >> thank you. connell: the idea for steve jobs laid the groundwork. dagen: when in doubt, blame the dead guy. the online tax bill cleared the senate. art laffer likes it. and we will tell you why coming up. and take a look at the oil market. everywhere around the globe, oil at a stubbornly high $95.05 per barrel.
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dagen: i love charles payne, and he is here. he will make you money. he picked a company, axel.
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i mean like axel on a car. charles: american axle as a matter of fact. it is kind of hard to find a whole lot of really good value plays even though the stock is at a 52-week high, it is a huge value play. this is a company that just reinvented itself. don't talk about about the auto parts guys who were devastated in that time as well. this is a company that has done it all. they had to customers, both were american, and five facilities. now they have 100 customers, they're all over the world, the backlog is starting, and yet it is changing. i love the way it has been acting lately. it may not pop tomorrow, but there's a tremendous amount of upside.
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17 is your big, 509 5090 is youg passive resistance. through there a minimum of 20 could go a lot higher. in the past it has been a whole lot higher. connell: charles payne going american, going axle. that is going to be our criteria for now on. at some point probably as good as any. dagen: she looks good, long as she keeps her mouth shut. stocks down every 15 minutes, new intraday highs today. nicole: for all those old betting that the market would go higher, you're absolutely right. new market highs for the s&p and the dow. dow jones industrial up about 50 basis points at the moment trading as high as 15,024. so breaking some new ground there. dow components without arrows.
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take a quick look at blackberry where a look at a couple of the analysts have come out, you have investment research firm saying the company may sell off part of the business to become a smaller niche player. that is certainly not on news of selling off, that will make the stock go higher. talk about the slowing and the sales they have been seeing of the latest product, and underperform rating on the note they were seeing with the initial shipment and the sellthrough volume, a little disappointing. dagen: thanks, nicole. connell: the legacy of steve jobs and maybe the devices most is possible for putting our security at risk, so we will talk about some of that coming up. dagen: and why one economist says yes to a bill for an online sales tax. art laffer is coming up.
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take a look at how the greenback is up against other major currencies. almost $1.31 against the euro.
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>> 20 minutes past the hour, good morning, everybody, this is your fox news minute. three women missing as long as 10 years has been found alive. they were held captive in a cleveland house. police arresting three brothers ages 50-54. a six-year-old child found in the house is the daughter of one of the women, 26-year-old amanda berry. john kerry is meeting with russian president putin. he is trying to persuade russian take a tougher stance on syria enjoy a special effort to resolve the syrian crisis. in south carolina, special congressional election pits former republican governor mark sanford against elizabeth colbert was. sister of stephen cal bear. -- stephen cal bear
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that is a quick look at some of the headlines making news right now. dagen and connell, back to you. dagen: thank you. connell: it is expected to face a tough fight. dagen: rich edson to tell you how tough. rich: it does not look like it is going anywhere right now. it gives states the authority to collect sales taxes on customers buy an item over the internet. they need a presence in the state to levy a tax. it still has to pass the house. there is support for it there. the senate shows strong bipartisan support the marketplace fairness act law states to collect sales taxes due whether or not the sale takes place on main street or online has broad support for members, governors and mayors across the country and across ideological divide.
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however the republicans control the house schedule and john boehner has failed to give it his endorsement. >> i would probably refer you to the chairman of the judiciary committee. they have jurisdiction over this. i have not talked to him about it. i don't know if his intent is in terms of his interested moving through his committee or not. rich: he says the bill has a long way to go t his eyes indicating the committee will look into alternatives, a committee aide says they have yet to schedule a hearing on the issue and a membership aid tells fox business this effort is stuck in the house for now. connell: don't miss his one-on-one interview later today with the speaker of the house and john boehner. rich edson, speaker boehner, you will see it the fox business network on "money" 5:00 p.m. eastern time. dagen: he will have his hands full as the dole headed to the house.
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joining us now, art laffer, former economic advisor to president reagan who gives internet sales taxes a thumbs-up. art, why? >> i don't give the internet sales tax a thumbs-up unless it is offset by a tax rate reduction. you should pass all sales at the exact same right but this should not be an excuse for raising taxes in general and i believe the judiciary committee in the house is considering making it a requirement they lower the sales tax rate so it is not a tax increase but when you do this you want a broad-based low rate, which it is not. sales should be taxed at a lower rate. dagen: you would have congress dictating what localities and states charge for their own individual sales taxes. >> they already do with. they have exempted the house and the senate have accepted sales, and that sales from state and local sales taxes, and if they
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do that, they can repair the condition for which the state and local sales tax would apply to internet sales. there is no reason why that is any different. dagen: is there any reason that would fly though? >> a lot of people in the house are worried about allowed state and local governments to tax internet sales because it means a total tax increase. but if you made it a static neutral or you tax internet sales along with the state at a lower rate so it was static revenue neutral, you would get all of the members to vote for it. dagen: but that would have been about the senate. >> the senate did not vote on a full bill i would like to see. i would like to see it literally revenue neutral. just like simpson-bowles or any of these others. we want lower rates on a broader base. it is the right thing to do, but then you have to lower the rate to make it not a tax increase,
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and that is what i would like to see. dagen: if that doesn't happen, would you then not be in favor of moving ahead with a version of this bill the senate approved? >> if it is a straight tax increase i would not groove of it. dagen: what are the people those those states make online purchases not in those states fail to pay that tax? you are supposed to pay it, it is just not collected by the retailer so this tax exists, but the people are not paying it, how is that a tax increase? >> if they are not paying it, they are not paying the tax and if they will pay it, they will start paying it. i don't want to out anybody who is tax avoiding anybody. dagen: even sees the writing on the wall, they collect the sales tax is in nine states, goes out to 16 in january. if you are buying anything from
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a retailer, you have to pay your sales tax based on where you live. >> but it should be at a lower rate so it is not a tax increase. internet sales have been exempted from sales taxes. dagen: like the supreme court in '92. >> exactly. this would reverse that, and if they reversed that and lowered the rate i am 100% with them. the sales tax is a bad tax but one of the least bad taxes in one of the best to be used for putting the revenues for state and local governments needing to collect. that i would support but not at an add-on. they have to control spending and it is not a tax revenue issue, it is a fairness issue, and efficiency issue on the tax base, that is what i would love to see. does that make sense? i hope it does. dagen: i'm just saying it is not going to happen. in a perfect world, it is not going to happen.
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i will give you a big kiss on the cheek if it does. >> i love the perfect world. connell: chris christie trying to tighten his belt. people now are talking politics saying is this all about a run for the white house next time around? coming up. dagen: a strong showing for disney on the big screen and the small. here are some of the winners on the s&p 500. everybody has different investment objectives,
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connell: why steve jobs that laid the ground track. and this could mean for the president in 2016. programming a winner, how disney is scoring victories on the big screen and the small screen. although stories are still ahead. dagen: you don't deserve credit for it. nicole, hertz heading south. nicole: $24.20 per share down over one percentage point. to your point, heading south. they are relocating their headquarters and going to that is the first piece of news. the second piece of news is a
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private equity firm. selling off the remaining stake in hertz for $1.24 billion. what is interesting is this group bought hertz from ford back in 2005 in a deal valued 15 billion the ipo was the following year. they've gotten rid of the remaining stake. connell: thank you, nicole. new jersey governor chris christie underwent lap band surgery back in february at the urging of family and friends involved in the surgery placing a tube around the stomach to restrict the amount of food a person can eat. the question is, the political question, is this weight-loss surgery motivation to make a bid for the white house in 2016? let's bring brett baer in. thrilled to be talked about this story today.
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>> dagen's favorite story. connell: there is a shocker. is it a legitimate political story? in the wake of this candidate and the speculation he might run in 2016? >> he said he did it for his wife and kids and want to be around but there is no sugar coating it, it definitely is about appearance, politics. mississippi governor said when he was considered running, listen, if i dropped 40 pounds you will know i am in. it was his answer to the question. people definitely look at this as a possible indication chris christie is in the hunt for 2016. i think most people believe he was going to run anyway, but this is more along those lines. he says his health was overall fine on a cholesterol and blood pressure, but of course had to
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drop some pounds. connell: and he did that or is in the process of that. the other issue is separate from his health and separate from his weight and everything else, he was going to run anyway, first has to get reelected, which is the opposite to do that. and they would have to win a primary. the bigger question about chris christie, what is his relationship like with the base of the party. is it improving at all? >> that is a great question. $6.2 million in campaign cash for this reelection bid. that is a lot. he should sail to reelection, he will be well-positioned in a general election, but in a primary battle he has to do some wooing after what some hard-core conservatives say in the hurricane sandy back and forth,
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some felt he went overboard too far in welcoming the president, talk about how much the president was doing. christy pushes back hard say he was acting as governor and the president did a lot for hurricane sandy victims in new jersey. that said, he will eye number of different issues cross a lot of hurdles when it comes republican policies. connell: his brand is authenticity. we can identify with him. can he come assuming he is reelected as governor, can he pivot or should he pivot quickly to the right? if he does that looking overly political, something to consider when running for president. >> if the country is ready for straight talker who is who he
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is, and it may be by the time 2016 comes around that people are just kind of tired off we go through the primary process and people play to iowa and new hampshire and play the south carolina and the general election, and suddenly a different candidate. people may be tired of that. maybe that is the croatian networks. we will see. connell: to factor in great shape yourself. >> last time i was on imus he said you were sweating gravy last time i saw you. great to be on that show. connell: his way of saying you look great, congratulations. dagen: he told me i look fat
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every day for 10 days in a row lately, so don't feel bad. happy birthday to your wife, amy, by the way. >> thank you. dagen: i am obsessed with brett, i'm always following on twitter. >> sure, twitter. dagen: thank you. speaking of twitter, i mention that chris christie story this morning and they were kind of a couple standard responses. he is definitely running for president and many people clearly still don't like him after the hurricane sandy incident. connell: all right. dagen: meantime more of a cyber threats. warning financial institutions they are being targeted again. we have some stock ideas to tell you about. connell: disney scoring big in the box office and your living room. coming up. but first, treasuries today and the yield on the 10-year just under 1.8%.
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[ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen. >> i am diane macedo with your fox business brief. home prices up for a 13th straight month in march. prices rose nearly 2% from february thanks to strong gains
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in the western part of the u.s. on a year-over-year basis home prices jumped 10.5%, the biggest gain since march of 2006. americans seem to be growing more optimistic about the health of the housing market. a new survey from fannie mae shows 51% of americans doubt that home prices to rise within the next year, only 32% felt that way the same time last year. american express chief financial officer dan henry is planning to retire after 23 years with the company. in a letter to employees, chairman and ceo said henry will remain on as cfo until his successor is in place. that's the latest from the fox business network, giving you the power to prosper.
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connell: the cyber threat. something to focus on a lot earlier in the hour. department of homeland security and the fbi government and
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financial institutions a wave of new cyber attacks expected from hackers and the middle east and north africa. focusing on fox business on some of the stock plays are ways you can play the stock market. a regular guest with us on "markets now" giving some of his ideas. you've heard him talk about source fire. the next-generation firewall. he likes cavium. and he also likes fortinet. he owns source fire and a stake in all these companies and joins us now from pennsylvania. always good to have you on the show. a couple of things we want to go through. we've had this this company before, but talking to the downside risk in the investment and or the economy from the cyber threat, you see it as an opportunity. that is basically how you look at it, right? >> i look at it as a potential
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opportunity when and if these things happen. i see it as an opportunity exists today in investing in companies that i think will clearly be winners out of this, they are winners because of bad things happening. when apollo 13 was launched based in houston, we have a problem. i message is washington, we have a problem. we have a problem with cyber. i don't know if they are really acting on this because what we're seeing is corporate america spending, telecom is a little bit weak and we have to get on the horse with that. the semi conductors that they make that help, making a semiconductor we have to look at more package more quickly and that hardware will help software enable that. the problem is i don't think washington, surprise surprise, is doing enough to protect this. i do think the sequester has hurt the spending.
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you will see the same amount of spending in much more compressed time period. in the meantime, they have like a little bit. connell: so one part of this, we mentioned this earlier before you came on. we are playing catch-up to some3 extent, private companies are helping. at least that is your bet. they are telling us to catch up. but they case, talking steve jobs earlier, he had rushed the iphone to market, and your theory, i guess, is that we weren't ready for those devices from a security standpoint, is that right? >> i don't think there's any doubt about that. my theory is, it is long, but basically my belief is that they steve jobs found out he had pancreatic cancer, it all changed. steve jobs used to work within an ecosystem.
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he was always pushing it, but he needed the ecosystem. when he found out he was sick, essentially he took what he had, the next generation of compute computers, and he said i want to go with the iphone. he had to get somebody to subsidize that. he wanted verizon. he went to the lowest rated one. at&t. people predicted the demise of at&t when they're going to subsidize it to almost $300, whatever it was. if you talk to any cio or any chief technology officer in corporate america, they are scared to death about all this mobility. they like control, they like to have control of what is going on. people are bringing in and saying i want this, i want this for our salespeople and they accommodated them but we are not
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secure. you are not secure, i am not secure. this is no great conspiracy, no wonder they will hit us because this is our achilles heel. they will keep hitting us. they will overreact on some of these names, but we've got to do corporate america, financial. look at what is happening on financial services companies. now china is involved. we have got to be as a country we have got to be aware this is where the next war is going to be fought. connell: thank you. we are not secure, that much we have learned the hard way. thank you for coming on. dagen: stocks now, oil prices down slightly today, tensions over syria is slightly, but still stubbornly high. managing director and security fortinet these stocks in the
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energy group have not outperformed, they are kind of middle of the pack group. do you think they can take off later in the year if oil stays this high? >> i think the group underperforms the rest of the sector, people will chase yield like sheep they will see they can prop up performance which is what has been happening the last couple of years. we are seeing the transitional shift at the pump right now. talk about the refineries transitioning, the price is recklessly go up when the physical demand is not there. i don't think we will see a direct correlation and the price at the pump or the actual barrel. dagen: thank you for being here. connell: let's talk about microsoft set to update the latest operating system, windows 8, 1 research firm says
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worldwide drop in pc sales. dagen: adam shapiro with more on this. >> pc sales have dropped the first quarter this year and year over year 11-14% year over year. but year-to-date microsoft is up roughly 24%. although windows 8 has not been the incredible force that microsoft was hoping it would be, don't count it out just yet. and now you have the chief marketing officer and chief financial officer saying they are going to upgrade windows 8. it'll be available in the holiday shopping season. but this is the interface between touchscreens and all of those devices. whatever else they are upgrading, windows rt, the touchscreen.
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others are sold out at wal-mart and it is cheap to make and get it at wal-mart online for $130. a smart phone with windows 8 operating system. the windows rt, $129. do not count microsoft out just yet. connell: thank you, adam. dagen: shares of walt disney up 50% in the last year. the company getting ready to report earnings after the bell today. connell: we will talk about that coming up. and some of the winners over on the nasdaq. are you still sleeping? just wanted to check and make sure that we were on schedule.
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connell: take a look, dennis kneale is here.
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all the buzz from "iron man 3" has pushed the disney stock to 28. all-time high this year. dagen: dennis kneale has a preview. dennis: the mouse is roaring. let me tell you. i want to see the stock can go up after hours because it has been up so much. here are the numbers, earnings per share. $0.77 per share versus $0.58, on a large number, net income 1.4 billion. when you're in the billion dollars range, it is really difficult. revenue supposed to grow 9% or so to 10.5 billion. they had it down. the stock is up 48% in the past year. up 30% just since the start of 2013 and yet fewer analysts rate the stock a buy. only 62% buy rating for disney. maybe some alice are thinking
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the stock has already run. but any kind of forecast, they list the forecast because of the box office of iron man three. it had the second-highest opening in the u.s. ever in film history that could have some relate to it, slowly lift the overall outlook? super sequel strategy a few months later comes thor and captain america. applying at the overall strategy. connell: a few years ago remember the story of disney espn is working and nothing else is. >dennis: there started to get some buzz shows going for them. i have always felt, they hate when i say this, but i was a spinoff of 50% chunk of espn as a separate stock so you can see because that has huge value and
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they read under that. dagen: like the green bay packers. thank you, dennis. dagen: i was referring to connell, not you. connell: neither one of us are offended because neither one of us really care. dagen: we do care about this, cyber threat. more on that warning from homeland security, the financial institutions are being targeted again. connell: you may have seen stuart varney playing with these google glasses, but now more places where h they will not be able to wear them. dagen: he looks like a pirate. connell: more talks coming up with cheryl and dennis. "markets now." don't go away. you're having tri. [ babies crying ] surprise -- your hou was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ]
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i am cheryl casone. dennis: i am dennis kneale. cyber threats. we are all very honorable. cheryl: new record highs. institutional investors are shifting into riskier investments. dennis: google glass not yet for sale. we will tell you why signs are already being posted. cheryl: it is the top of the hour and as we do every 15 minutes, stocks now with nicole petallides. nicole: an exciting time for the bulls, obviously. we see the markets moving higher and higher. we have had a weaker dollar.
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we have this environment where the market continues to move to the upside. you cannot fight this momentum. i want to take a look at some of the bank stocks. it is very key to note. i have been watching it at 1310. remembering february 2009, everybody remembers bank of america at 250 a share. here at $13, obviously, much relief there. back to you. ♪ dennis: the cyber threat. at risk of cyber attacks today.
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anonymous hackers threat to strike with operation usa. they say they will target nine federal government sites including the white house. nothing like letting them know you are coming. joining us from washington we have the vice president of a security firm. thank you for being with us, steve. why is it so easy to crack into all of these sites? why are we unable to stop them? >> that is a good question. i am glad you are putting some emphasis on this issue. probably the best way to sum this up is a pandemic.
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they are faced with an alarming threat. ranging from activist to cyber criminals, organized grahams out of russia and other parts of the world. they are very active on the scene. dennis: this army has now hacked into eight different twitter account in the last two weeks or so. the pentagon today comes out and calls out china by name. exactly, who is the worst culprit? >> it is interesting. there are more than 108 nations with capabilities. two finger one actor is
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difficult or would be difficult if it was not for the fact that one has emerged as the most aggressive and that is china. we in cyber have known for a long time, dating back to the early 2000 that china is an aggressive threat actor. they started going after traditional espionage type activities. it is morphed. it has gotten more aggressive. theft, what we would call theft of a nation. theft of intellectual property. really walking away with america's competitive future. china definitely rests at the top. dennis: my biggest worry is
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about the hacking into systems like nuclear plants and electrical grids of major cities. how do we set priorities for what should it protected first? >> it is interesting. everything needs to be protected. we are going to battle against a set of adversaries. we really have not innovated in the way that we need to. we really have not seen leadership either. when we look at where we sit today, it really is a situation where everything is exposed. you mentioned the nuclear facilities. back in 2004, china was implicated in an attack against our nuclear labs. that happens still today.
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dennis: when the syrians manage to shut down all the lights in manhattan, maybe then we will actually do something about it. thank you very much for being with us. we have more on that coming up later. what can be done to stop china. cheryl: let's get back to these markets. what a day. u.s. global markets continuing to hit all-time highs. russell 2000 looking good as well. scott, it is good to see you on a day like today. if you look at what institutional investors have been buying, it seems like it is risk on out there. >> cheryl, i am glad to see it. after the first quarter, all
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defensive from top to set suckle at the bottom. this last month and since the middle of last month, it has been all set the -- cyclicals. dennis: i know that you save the u.s. in these markets are the only game in town right now. 2008 levels. is it time to look overseas as well and get into some of the momentum happening around the world? >> we are still a little cautious. i would have expected the emerging markets to maybe come on a little bit stronger, rope lights and things like that by
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now. i think it will be pushed out by the latter part of the year. we have been a little light on commodities. we are definitely looking for places to pick up some more exposure. we like those areas. clearly, that is where the growth will be. we have been focused, lately, on large-cap u.s. stocks. it has worked out well. our sector orientation has been a little off, but as far as magnitude, direction, what the economy is doing, i feel we have been right on there. cheryl: i know you have 1625 as you are s&p. you are telling your clients, at this point, that is where you may want to sell a little bit. take a little off the table. every sector right now is
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higher. the only one that is negative right now is that allergy. you like it. you say that is where we can make some new money. >> technology has really legged year to date for that last month. i think that technology will kick in. i think that will change as we move into 2014. i think you will see better growth in the second half of the year. better growth in 2014. i think technology will benefit from that. it is not like there is a lot of new products out there. the companies are just a bit behind. your previous guest talked about
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cyber. that will be huge for years to come. technology, in general, we will see some more investment there from companies who just have not really spent much on technology over the last few years. cheryl: scott, thank you. always good to have you. especially on a day like today. >> thank you, cheryl. dennis: the $30 million honeybee economy. let's go to the trading pits of the cme. phil flynn. >> not only do farmers have to worry about the weather, we solve the biggest jump in corn painting over the last week. we are still way behind. that is a big problem. now, who knew they had to worry about these. they are warning about a colony collapse that could impact
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commodities across the board. we are talking soybeans. we are talking orange juice. traders are really starting to focus on this big story. the department of agriculture basically came out and said we are not sure if we had enough honeybees. there is a rally that has already been challenged. cocoa and coffee, other markets mainly grown out of the u.s. are worried that this could spread to other countries. what is causing this? they do not know. we do know it could impact prices. back to you, dennis.
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dennis: thank you. cheryl: we are literally a point off of all time highs on the dow. legislation. walmart against online companies like ebay. house of representatives today. we are live in washington. dennis: plus, why stuart varney and others will not be allowed in casinos and at least one bar while wearing google glass. let's take a look at oil. ♪ mple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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trust your instincts to eto make the call. years. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased d blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t eatment,
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dennis: a quarter past the hour. time for stocks now. knucklehead back. nicole: what we are seeing here is record all-time highs.
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sitting near that unchanged line. let's kick it off here with microsoft. the windows eight sold more than 100 million licenses and plans to release the operating systems next version sometime this year based on the customer's criticism and comments. they are working on making it better, basically. david einhorn has made it public that indeed they have added to their apple position. now just waiting for the next great apple product. back to you. dennis: thank you. cheryl: time to make some money with charles payne. you have brand-new highs around the world. japan, england. except for the nasdaq, new
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intraday highs are hittingg3 again. charles: i have to be honest with you. i have been looking for and looking for a roll back. it makes it easier to buy. we were talking in the break. individuals are starting to creep back. they are starting to sense and feel that things are better. they know what predicament they are in. starting to pick up some traction. maybe some main street traction. cheryl: the defensive are really falling out of favor. we have a risk on environment. charles: i hate that. risk on, risk off. most people are not ready to live a great life they will live another 20 years.
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the risk on is when you do not own stocks. that is when you take risks. cheryl: anyway. charles: abercrombie was upgraded today. for me, it is interesting. i like this stock a lot. it may close above 52. that is five upgrades in the last two months. sales rates are extraordinarily low in this country. to think that we have to see happen. we have to get better jobs numbers. those numbers did not even faith population growth. we have to get some employment. i will ride the wave for as long as i can. now we are starting to put that back on.
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all those student and credit cards up slightly last month. it sometimes means you go out and spend money that you do not have. cheryl: thank you. dennis: those three women found in cleveland after being kidnapped a decade ago have been released from the hospital. cheryl: house members passing an online sales tax bill. we are live inside the beltway. i want to take a look at the world currencies and how they are faring against the u.s. dollar as we go to break. we will be right back. ♪ for seeing your business in a whole new way.
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♪ >> @23 minutes past the hour, hello, everybody. i have your fox news minute. the three victims found alive after being captive for ten years. they have been released from the hospital. police arresting three brothers ages 50-54 as suspects. they have no record of complaints of criminal activity
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at that house. north korea has moved missiles from their launch site where they have been ready for a possible test fire. this comes as the south korean president is at the white house meeting with president obama. john kerry is meeting with russian president. they can work together to end the two-year conflict that is taking place right now in syria. that is a look at your headlines. cheryl, back to you. cheryl: thank you so much. i hope that the two leaders can work things out. >> definitely. cheryl: the internet sales tax bill is facing a tough time. rich and thin has the story. rich: the bill allows states to
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add sales tax. there is support in the house among lawmakers who say the current system puts traditional stores at a disadvantage. peter welch says he is hopeful that the house leaders will bring this vote to a vote so that we can level the playing field for small businesses across the country. leadership has fallen short. >> i think they have jurisdiction over this. i have not talked to him about it. i do not know what his intent is. rich: another committee will look into alternatives. it attempts to make tax collection simpler, it still has
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a long way to go. supporters acknowledge this effort could take time. last night's victory gives them enough momentum to eventually get this bill to the president desk. back to you. cheryl: by the way, speaker boehner is kind of punting on this whole issue. he says it needs more research; correct? rich: absolutely. the committee chairman is not all the happy with the way this is written. cheryl: thank you very much. dennis: this is a disaster for many small businesses. it looks like jack lew famous signature. you see it at the bottom there.
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a treasury spokesman says as to his unofficial signature, i advise you to stay tuned. maybe he will go back to the illegible signature. cheryl: all right. google glass band. not yet for sale. we will tell you why. keep out signs are already posted for the new device. dennis: the business of travel. we focus on one luxury hotels luxury story. right now, check out the s&p winners. the local friday night, buddy.
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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. dennis: 30 minutes past the hour. stocks now and every 15 minutes. nicole: off about 48 points right now. certainly, a winning day on wall street. i wanted to bring two names to your attention. the first is officemax. you can see it is down 2.5%. i will bring you right over to office depot. they are doing much of the same thing. down 2.5%. both of these names. they had a prophet this.
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they had this special dividend. these two names actually compete directly against staples. they have seen, obviously weaker sales and fewer shoppers. that is one of the reasons why they did not come out with numbers. back to you. cheryl: that certainly would be nice to see those small business spenders come back to a couple of names. the business of travel. we have been talking a lot about travel and the money that can be made when it comes to travel. a billion arrivals in 2012. there is so much more when it comes to online travel and online social media. let's take a look at how people are actually booking, spending. what are they doing? 53% of leisure airline reservations were made.
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everyone is going to the web. take a look at hotels. same thing. 32% of that leisure travel are booking their stuff online. cruise ships. 15% are online. many analysts say they will go up. let's take a look at online travel. in the united states, in particular. 64% of online travelers report, according to focus right u.s. online travel, they are using their smart phones it is about the leisure traveler. they want technology and they want luxury. this is where i am going. peninsula hotels. they have seen a 17% increase.
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the average rate, this is the biggest number. this is what matters. doing very well. joining me now, robert. great numbers from peninsula. >> absolutely. we are very very happy with the first-quarter results. new york, right here, has seen increased 27 present. we are very happy with that. cheryl: we are looking at the numbers. you really are the uber luxury traveler. they want technology. they want the services. they want the resorts. your rates are up in the u.s. your rates are up in asia. where'd you see hong kong going in the next couple of years?
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>> we are very happy. celebrating 85 years this year. unveiling 58 million u.s. dollar renovation. everything has been working out very well. we are happy to announce thatt3 travel and leisure has announced hong kong as the number one hotel for service in the whole world. cheryl: you always make travel and leisure's top hotel brand list. another year for you to kind of pat yourself on the back. i know that with tokyo and hong kong, it is about the technology in the room. travelers want that extra something. >> absolutely. we have unveiled a new technology. you can control the entire room on the tablet, search the
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internet, watch tv. everything on a tablet. cheryl: how you deal with the competition? how do you make your mark me back we always have to look at what we are good at. we have great service. we always deliver on service, as well as always thinking about the guest. cheryl: you are going up against the competition. it is a tough competitive market. a lot of these names have been doing very well. i want to ask you about the new york market. we were focusing on new york last week. are you seeing that as well?
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>> yes. very optimistic. we are seeing new markets from russia, from the middle east, also from america. technology and entertainment really entertaining our hotels. cheryl: rob, thank you for being here. good to follow your brand again. >> thank you very much. cheryl: dennis, over to you. dennis: google glass, keep out. the device has already been banned by a bar and some casinos also. not even our own stuart varney wearing stuart -- google glass will be able to do that. it is a work in progress with
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test versions. another 8000 people hand-picked by google will get a pair. a book a few years ago called "being digital." people can walk in now with an iphone and get video, but we are upset that there is a video on google glass. hidden cameras everywhere. what are they so worried about? cheryl: netflix ceo .into trouble by using social media. the company may turn to twitter to communicate with shareholders. we have a guest coming up that does not think that is a good idea. dennis: new jersey governor. is he thinking about the oval office in 2016?
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♪ tracy: i am tracy byrnes with your fox business brief. hertz is moving its headquarters to the sunshine state. it will also allow them to trim its corporate expenses.
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coca-cola juicing up its place there as well. adding 4100 jobs to the state economy. shares of baxter international are under pressure today. this after announcing its taste three clinical trial on its alzheimer's drug. that is the latest from the fox business network. giving you the power to prosper. ♪ [ man ] on december 17, 1903, the wright brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪
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hi. [ baby fussing ] ♪ dennis: using twitter to disseminate corporate information. it soon may use twitter to disclose this kind of self. the sep has now given its
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agreement. >> there is nothing wrong with transparency. if you say you are going to do something, you need to come out and do it. they said they would use twitter, they said they would use reed hastings page. they did not. dennis: they started this whole rally when hastings went up on the facebook page and said we have over a billion users. >> we are saying that companies should establish a policy, articulate it, which netflix did, and stick to those methods. dennis: should you useejust one outlet like twitter or do all
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six or seven or whatever? >> there are hundreds of channels out there right now. a company needs to do an audit and then articulate those. three, five, seven, ten, it does not really matter. dennis: do you think it is a bad idea for a company to not use social networks? >> i think social media is here. it is here to stay. the question is how will companies embrace it? on april 2, it is okay to use social media. i think it is a good idea as long as it is used properly. dennis: should we assume that every post he makes, he is a ceo of netflix? >> they only made a statement that it can be used by public companies in their disseminating public information.
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reed hastings, they laid out six different channels. they did not use them in their first exposure. dennis: did not use it single one. do you know why? >> no. i have written and asked what is up. dennis: do we have a new problem when non-ceo employees and outputting posts of their own and it may be about the business and how great my sales quarter was. >> exactly. that is what we are working on with companies right now. there is the potential for problems. dennis: this is an investors relation nightmare. you need to control the message and control the outlet.
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>> i would say it is not a nightmare. it is probably one of the most exciting times we have had in our industry in over a decade. we need to articulate where the message should be disseminated through and stick with it. dennis: thank you for being with us. good day. cheryl: a quarter till. time for stocks now. we are less than two points away from that intraday high on the dow. we are seeing quite a market today. what has you excited? >> the resiliency of the market is so impressive. just earlier, we were talking about twitter and getting corporate news out. there are so many exciting things that are happening. the fact is, markets now can digest news properly. there is no pause between news
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being released and people processing it. the more efficient we get, the faster the markets are getting. people are taking on more risks. quite frankly, companies are short up more financially. the system, unfortunately, it took 2008 and that crisis to teach us how to be better financially. cheryl: to your point, it looks like it is kind of a risk on environment. charles payne would disagree with my language. the nasdaq just popping up higher. now we have all three major industries to the upside. it looks like we are getting away from the defensive names. it has been utilities, consumer staples, healthcare. it seems now, though, that we are seeing real interest in things like technology, or riskier assets.
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>> well, the institutional money really stepped in to some of these when the market had a lot more volatility in it. now the market seems to be really biased to the upside. before, people wanted some sort of income so they were buying stocks that had a good yield. you know, they paid you to wait, so to speak, for capital appreciation. now people feel a little more confident. then you take on a little more risk. cheryl: what do you make of the moves that we are seeing today in the transports? >> i do not think there is a story there, but as you know, the stock market is an indicator of what is to come for the economy.
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the fact that the transports are going up is a clear indication that the economy is perceived to be getting better and that the tide is taking all ships and we have confirmation on some of the groups that we must have participate in order for it to be a real move to the upside. cheryl: thank you, jason, or the commentary. appreciate it. dennis: now that facebook has more than a billion people, future growth relies on selling access to them. facebook will start running the deal adds on its website. you can see spots from such big brands as co, ford and american express. some analysts say it could bring in even more. maybe $4 million a year.
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rush limbaugh threatening to leave. surprise, just before his contract runs out. he was boycotted after calling a democratic coed a [bleep]. his contract is ending at the end of the year. cheryl: all right. 2010 gas pipeline explosions could cost p&g over $2 billion in fines. we will be talking about that in the west coast minute. dennis: take a look at some of today's winners over on the nasdaq. ♪ .
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cheryl: it is time for your west coast minute. regulators recommending a $2.2 billion fine for pacific gas and electric for a 2010 pipeline explosion that killed eight people. this would be the largest penalty ever imposed. it was caused by a litany of failures caused by p&g. arizona -based, the nations
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largest solar manufacturer reported a billion in revenue for the first quarter. and analysts said the big story is the execution strategy at first solar. they just made an acquisition in japan. take a look at the stock, though. it is down. down more than four dollars. dropbox. it will hold its first ever developer conference in july. dropbox hopes in the years to come this conference will catch on in popularity. that is your west coast minute. dennis: governor chris christie admitting he underwent lap band surgery in february. it restricts them amount of food a person can eat.
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a lot of people speculate that this is a move for 2016. cheryl: it is his health. it is a heart attack waiting to happen. he is a large man. i think it is a good thing he is addressing this whether it is political or not. dennis: it is kind of talk. it really is. i wish him well. cheryl: i wish him the best. cyber threats. warnings of new attacks against anonymous hackers. dennis: lou dobbs on america's blind eye. beijing is a cyber spot. cheryl: short and sweet. what your first name could spell for your paycheck. melissa and lori coming up next. that is a good tease. ♪
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but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.
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melissa: welcome, everyone. i am melissa francis. lori: i am lori rothman. the cyber threat may have hackers with ties to the group anonymous targeting the government business and your money. jonathan on what can be done to stop it. melissa: outsourcing the basic commodity, lou dobbs has been worried about china, so are these latest accusations in a surprise to him? lori: digging deeper into debt. the concern of dissident debt bubble that ballooned to $1 trillion. melissa: and what is in a name? a lot. what's your first name can spell for your paycheck. time for stocks as with every 15 minutes, nicole petallides is standing by.


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