tv Markets Now FOX Business June 18, 2013 11:00am-1:01pm EDT
are we ready for a replacement? bernanke has stayed on longer than he wanted. the question is, who is next in line. the head of the nsa is back on capitol hill today. he is testifying right now. during the final day of the g8 summit, tax loopholes need to be closed. jumping on the food truck bandwagon. how restaurants are taking a cue from the sector. we have that and much more on markets now this hour. ♪ dagen: are you a dirty water dogs kind of guy? connell: i am not afraid every
now and again. i have not had in a while. it always scares me when we start off this way. [ laughter ] dagen: nicole petallides can tell you all about it. nicole: dow jones industrials up nearly triple digits. sitting at 15,277. the s&p 500 up exactly a half of 1%. sitting at 1647. looking at the drug index, the bank index, all without the arrows. the transports also doing well. people are still wondering. nobody knows, for sure, what the fed will do tomorrow. yesterday we were up almost 110 points and continuing this run. nice two days so far on wall
street. connell: all eyes are on ben bernanke. bernanke himself may be ready to use up himself on the infamous bond buying program. dagen: peter barnes has much more. >> chairman bernanke's press conference will give them an opportunity to clarify or even walk back his comments back in may on possible tapering of bond purchases. >> he cannot say too much because he does not know himself when they will start tapering.
>> they could try to clarify for investors their plans for slowing qe. former fed vice chair says the policy stalemate could make clear that the fed has no plans for reducing qe. it could also emphasized that any start a reduction of bond purchases remains dependent on the labor markets. the statement could also point to slowing inflation which provides ammunition for the fed to continue qe and low interest rates. questions about whether bernanke will actually be around to see this through, it sounds like president obama does not think
so. >> bernanke is a little bit like bob mueller, the head of the fbi. he has already stayed a lot longer than he wanted or he's supposed to. >> janet yyllen continues to be the odds on favorite among fed favorites to take over for bernanke. other names that have popped up for speculation include roger ferguson, jeremy stein two is a new member of board of governors and, what the heck, let's throw in tim geithner. there is speculation that he may show up here to take over. who knows.
some about six weeks ago asked him what he was doing there. he just waved and laughed. dagen: he is a barrel of laughs. peter, thank you. let's bring in jack mcintyre. overseeing approximately $50 billion in assets. would that be, if inflation is not a word, we will now pull back on the bond buying, not yet. >> that is a good way to put it. other markets need to step back and breathe a little bit. i think he wanted to kind of put the bubble in the equity
markets. at the end of the day, they are still dependent on data that is out there. he wove ritter -- he will reiterate that point. dagen: when do you think that that eventually calms. >> just look at the data. there is this perception that we job increases on a monthly0,000 basis. we are nowhere close to that right now.
dagen: it cannot be easy to get off of that. it cannot be easy to sober up, if you will. how do you position a portfolio today just for that wall until you? >> i think whoever is the next chairman has to do the heavy lifting. they will deal with some markets that continue to see some volatility. we can allocate capital all over the world. right now, we are bringing more exposure back into the u.s. dollar. i think it will become energy independent. we are already food independent. dagen: through what types of assets?
>> we have some treasury exposure, but what we have also been doing is hedging back some of our foreign bond positions. one of the things we have to keep a lookout for, both the bond in the currencies, we are value managers. there may be a little bit of compelling things out there. dagen: jack, it was great to talk to. please, come back. take care. connell: some breaking news out of washington, d.c. keith alexander currently testifying before the house. a number of items have already come out of this hearing because at the same hearing you have had sean joyce saying that one case that was flooded by the data programs of the nsa was a plot that was planned to bomb the new york stock exchange.
peter brooks joins us. thh new york stock exchange spokesperson has the client, to fox business on that particular case. alexander has said that these programs have produced critical leads. >> i was comfortable with the program before, in fairness. fifty plots in more than 50 countries. that is critical. it played a role in stopping the pots. go back to 9/11. what was the cost of 9/11 to the american economy? trillions of dollars. think about the lies that have been saved. they will only tell us about a couple of those.
they have to be careful about sources and methods. still needs oversight. congress should be looking at it closely. i am pretty comfortable with what they have laid out so far. connell: speaking of september 11 and attacks on our financial industry, general alexander have the following quote talking about rather being here debating this point in trying to explain how we failed to prevent another 9/11. do you think that these programs , you know, the internet surveillance or the phone collection, in terms of records, do you think that that would have prevented september 11?
>> they did say something to this effect. he said they may have been able to track one of the 9/11 hijackers if they had this program before 9/11. that is if i heard it correctly. that tells you something. who knows where we would be today in our history if they would have been able to do that. connell: supporters of the nsa leaker say he has been able to prompt or develop this discussion that we are having now about civil liberties, about what should be public. what affect do you think that these leaks have had? >> a terrible effect. they cost a lot to put together. they cost a lot to maintain.
this individual took it upon himself to decide to leak it. his case, snowden's case continues to fall apart. six months from now, we may come down where ww have a terrorist plot or attack, god forbid that may have been prevented because of this program and if it had not been late to outsiders. i think it was very irresponsible on his part and i worry about the damage it has caused to our national security. the general talked a little bit about that this morning. connell: 50 so-called terrorist events. peter brooks, thank you, as always. dagen: coming to get their corporate tax loopholes. that is right. the g8 leaders are getting on the right page.
dagen: catching you off on some breaking news. the government surveillance of telephone and internet communication foiled plots including one to bomb the new york stock exchange. intelligence agents were able to detect a bomb plot to bomb the new york stock exchange. we are headed to the call now. one thing that every person
knows in this building is that the new york stock exchange, which is the financial capital of the world is always a place that people are looking to obviously have on high alert. it is just something that we deal with. the security of this building is stellar. we feel very blessed to work in the building and guarded as well. this particular plot soiled. up 100 points. 15,279 for the dow jones industrial average. there has been some news that may or may not be related to a drug. some of the names coming under pressure would be tesla, jcpenney.
dagen: it is time to make some money with charles payne. it is all about cool beds now. the memory foam gets all hot. that is part of the pitch. the "wall street journal" wrote about it. matchers firm had a pretty good earnings report last week. this stock has been hammered. i just cannot believe how cheap it is. it makes me nervous how cheap the stock is. they have been beating the street pretty regularly. i like to think that came up this morning. i think we will see movement towards people buying houses. that gets us to the housing
report. permits are up 25% year-over-year. the last two years, we have been seeing nothing but multi family apartment buildings. we are apartment dwellers now. the big breakout comes out $50. i do not think they will spike. i think they will sort of counter bernanke. dagen: thank you, charles. you look amazing. connell: over at the g8 summit, they are trying to close up some tax loopholes. dagen: starbucks getting ready to roll out choleric counts on their menus.
how shocked would you be by how many calories are in that cappuccino? let's take a look at world currencies and how they are holding up against the dollar. the local lwith fidely's covoptions platform,ies to generate inco? we've completely integrated king it easier to try filters and strategies... to get list of equity opons... evaluate them th our p&l calculator... and exece faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choong fidelity. now get 200 free trades when you open an account.
♪ >> 24 minutes pass the hours. i have your fox news minute. armed forces are taking over the lead security roles. eighteen months before withdrawal. a homicide bombing attack killed three civilians in kabul. the policy will require women and men to meet the same physical and mental standards. they can start training. the senator is endorsing hillary clinton for president in 2013.
the first lawmaker to back ready for hillary. that is a quick look at the headlines this hour. back to you guys. dagen: thank you. connell: countries have to close down their tax loopholes. at least they find something to agree upon. rich: good luck getting it done. the statement just signed by the leaders say they should automatically save information despite the surge in tax evasion. the g8 has just released its
full communicate. the u.s. recovery is recovering in the deficit is the climbing rapidly. the group also advocates more spending where necessary sane fiscal policy should alloo for near-term. president obama and putin added another memorable image. apparently, the u.s., russia and other nations have reached a consensus on syria and a need for political processing to
resolve. president obama is now headed to germany this afternoon. they prepare to begin negotiating a free trade agreement. connell: richardson today in d.c. is the housing recovery still on track? connell: we will talk about it coming up. interesting addition. we will be right back with more on that story on markets now. ♪
in order to offset those costs, they made a big move this year. we are going to learn more about what poor mel is thinking and doing. keep an eye on hormel between now and that time. june 206 is the actual investor day. dagen: thank you very much, nicole. the number, however, did come up short of expectations. alex sharpton is ceo of the sharpton institute. normally, you would not want to see too much supply.
>> we have a network of about 45,000 realtors that are members of our organization. they are in inventory constrained markets. there is just not enough supply for the massive demand that we have right now. what are you seeing? >> you would think that it would. interest rates are bouncing up to 4%. 4% is a historical low still. it is such an inexpensive interest rate to buy property. that half-point jump has not really slowed mortgages and, remember, there is a ton of cash buyers in the market. dagen: that will be exhausted,
some of these markets do feel dangerously frothy. i know what people say, they are not near the all-time highs. >> there are certain micromarkets. there has been huge double-digit growth in phoenix and las vegas. most of those properties, we have people moving into them. where we have high vacancy, we
could have bounded forward. i do not inc. we have created a bubble. well we looked at, though, is traditional supply and demand. the lowest year in the last 40 years was a million 500 houses. we still have a dow that there were supply is not meeting demand. dagen: alex, it was great to see you. thank you so much. alex sharpton. connell: the stock is up by 2% today.
dagen: it you are on vine. i am am on buying. you are not on instagram. connell: a lot of people are using it more and more. starbucks plans to do it. i guess enjoy it while you can. dagen: i always badmouth mayor bloomberg. he push this. it is a toxic waste dump. anyway, he push the calorie count for new york city. i love the fact that you can go into these restaurants and see how much the calories are.
connell: surprise people when they first found out. dagen: we will bring you the latest that we are getting from that testimony onncapitol hill. connell: there is never too much when it comes to the food trucks. we will talk about how they are changing the face of the restaurant business. dagen: the waffle truck is ridiculous. connell: 2.2% on the ten year. we will be right back. the dow is up 120. there are your treasury yields. more markets now coming up.
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choose ishares for their et. ishares bylackrock. cwhich includes finvestment objectives, risks, charges and expenses. read and consider it cefully before investing. risk includes possible loss of principal. risks, charges and expenses. connell: about to go back to the new york stock exchange. there is news from a hearing on capitol hill.
sean joyce is a guy who was testifying. dagen: let's go down to the corner of wall and broad. keith, going back to 2001 and the terror attacks, how much was that terra data faxed into the stock market? >> i am not sure it has been digested yet. this is on the top five list of every terrorist in the world who would like to come in and bomb
us. they bring the u.s. capital markets to its knees. we deal with it all the time. people need to realize, interesting lead enough, this is one of the save it on joe and -- safest places in the world since 9/11. those blockades, i've been told, have the power to stop a tank if it was rolling down the street. it is a world in which we live in.
magic city, those have been incredible successes for those pay channels. dennis: who would you trust to spend that money? what they do is they rent show from others. dagen: military equipment seems to be benefiting the stocks. jo ling can joins us with more. >> a really significant rise in foreign demand.
take a look at the current landscape here. 284 and military sale cases are happening. all valued at $138 billion with sales to over 100 countries. according to top contractors, the demand for missile defense is coming from primarily the middle east and asia, not from europe. william swanson told reuters that they are swamped meeting with international buyers. he says they are overbooked. looking at aerospace and defense contractors, 28 of the 34 are posting double-digit gains to date.
dagen: good to see you. jo ling kent in our newsroom be great jeff flock with one of the pizza places. jeff: it used to be that brick-and-mortar did not like these food trucks. now, look at who is on board. that is a stuffed pizza. we will cook it. back in a moment. standby. ♪ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your c needs a new transmission. [ coyote howls ] how abouno more surprises? now you can get all the online trading tools yoneed
dagen: the fastest growing trend in the food service business. food trucks. connell: jeff flock has the latest. jeff: big companies getting involved in it. some people solve these food trucks as competition. you do not see it as competition. we have a second food truck pulled up behind you. how much does it cost?
there you go. they have been regulating them ever since. now, they possess all over the country. dagen: new york city pizza is far superior to chicago. jeff: oh, come on. connell: i thought you're going to to put up a good argument. we will talk more about this breaking story we have this hour. dagen: at the cyber threat and your smart phone. stay with markets now. ♪ you hurt my feelings, todd.
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cheryl: i'm cheryl casone. ray plot targeting the new york stock exchange foil by the nsa. we'll all over it. dennis: the cyber threat, your smart phone banking apps in the cross hairs now, talking with the ceo of a company banking on protecting you from the hackers. the men of the trading day, hands down, ben bernanke and the fomc members stopped soared 106 ahead of tomorrow's meeting with speculation running the gamet, but one of the signs big ben could exit the fed. cheryl: as construction rises, a guest says a new housing bubble is inevitable. first, to this, dennis. >> breaking news, the fbi says the nsa program helped foil a bomb plot targeting the new york stock exchange. woe don't know when this was. >> the fbi confirms with fox business they uued bis clay internet and phone tour vail lance to foil a plot, last decade that started in yemen to
bomb the new york stock exchange and used surveillance to uncover 50 and more terrorist plots around the world. here's whaa happened at the house intelligence committee hearing just moments ago. >> in recent years, these programs together with other intelligence have protected the u.s..and allies from terrorist threats across the globe to include helping prevent the potential terrorist events over 50 times since 9/11. >> nsa utilizing 702 authority was monitoring a known extremist in yemen who was in contact with an individual in the united states named kalid. he, and other individuals that we identified through a fisa, were able to detect a plotting to bomb the new york stock exchange.
>> no time period given. it may be separate from the plot to bomb the new york stock exchange, citi group, and prudential headquarters in new york city, and midtown was under threat. the fbi still determining whether or not those two plots were linked. also discussed at the hearing was the new york subway bombing plot that was basically uncovered via the surveillance methods now under attack around the world. this is a bombing plot, arrested there an afghan-american and two accomplices here in new york. this is countering the criticism of the nsa monitoring, and they said when they go to do surveillance, they don't go back door into the likes of google or facebook to the service and send court orders to request information, and those companies are compelled to give the information over to law enforcement. developing story as we track it throughout the day. dennis: thank you very much, liz. cheryl: now going to the floor
of the new york stock exchange. nicole is standing by covering the breaking news as well from there. so traders are not surprised, but it's concerning when another plot against the new york stock exchange comes to light like thiss >> that's right. everybody orks in this building knows that this is a place that's a target, all around the world, obviously, to hit the new york stock exchanges, hits the financial system right here at home. we know very well this is a targetedded place, but that said, there's huge security, the best security ever outside, and inside this building, and i see it every day. you hear about the plots that were put together, it is scary stuff, and it's nice to know our folks work on this. i worked in this building since 1995. i've been here a lot of year, and i get on the subway; right? you got to just go with it and
say a prayer, but, obviously, it is scary stuff. cheryl: the american spirit is great because you come in, you go to work, you go about your day. certainly, though, we don't want to hear anymore about threats. let's talk about today's market. we are now up 11 # 10 pointinns. we've propelled trading over the last hour and fed is looking good. >> markets are good indeed. you see the names on the dow jones indussrials, the dow itself up triple digits again, -riple digits, the name of the game these days. the vix, the fear index to the downside, and awaiting our news from the fed tomorrow, we are seeing markets that are acting very nicely, adding to yesterday's gains, and to your point, cheryl, really this is a patriotic place, a place where people are just very resilient, get here, believe, and they just say america thrives and come here despite 9/11 down the block.
cheryl: thanks. dennis: talking about the mobile threat, the app boom giving hackers a back door to your smart phone. a report by app security firm finds that 90% of top ios, apple and android apps, were subject to hacking and a grave risk, your own money as mobile banking surges in popularity. joining us from washington, we have the ceo with us, and just the other day, ex-wife needed a transfer for camp money, and i was on smart phone, no chance to get home, and i do a wonderful chase transfer with the smart phone, $2,000 just like that, am i in danger? >> it depends on the bank that you are working with. dennis: chase. >> so chase is taking steps to solve problems with technologies like ourselves, but as an example, i mean, there's a
massive paradigm shift that's going on today in the market. if you think about the banking apps, a like what was mentioned, depositten online, there's a wide variety of other things, transferring money, paying bills online, buying stocks, bonds, options, you know, a wide variety of things done today, traditionally, have been done in the last 20 years on secure, personal computers at home connected over a secure internet to a secure server back in the bank. that has all changeed now with the banks feeling pressure and excitement and opportunity, okay, of putting mobile applications in place for someone like yourself or your wife or your kids or virtually anybody out there that is doing mobile banking. dennis: give me a agreed on the squall of security as i do
banking apps in the smart phone at phos fear. give me a grade. >> low. a d. dennis: a d? >> a d, d as in dog because the threats are there, newfound set of threats. think about the security that exists on the pc, the internet, and the server, okay, that for 10-0 -- 20 years has been utilize, and now they are put out on mobile devices connected over a cell phone tower. you have an application, okay, that's performing, say a stock trade or wire transfer on a mobile device that is doing this over the cell phone tower with no security involved. >> call me naive, but i thought when they offered me an app to use on the smart phone, they have guaranteed it's secure. that's not so? >> well, they are doing the best they can, okay, but it may not be good enough. i mean, what really has to
happen here is you actually have to stop the hackers and stop the threats at the application level. you have to fortify and harden the application with technology like ourselves here. you can see a demo on the website which will articulate to you how easy it is to get into the app or any app that's a mobile device based app. dennis: a yes or no answer, do you use smart phone banking apps on your smart phone, and would you? >> not yet. i am waiting for, i think, the industry to come up to speed and adopt the technologyings we're talking about. >> thank you very much for being with us today, mike dagger. >> thank you. cheryl: switching gears to another story we follow for you today. the fed's bond buying program with a positive impact on housing. new home construction for may rebounds today up nearly 7% from the month of april, led largely
by a jump in multifamily units, up 21%, price water house coopers says it's inevidentble. i want a bold feel on you today, mitch, and we know each other well, but the bubble is inevitable, but is that a negative? >> i don't think so. there's people in the country who want to buy homes. they are watching the news, prices are going up, not falling, and saying, wow, this is my opportunity to buy. the interest story of late chilled the market, but not rrflected. >> we are seeing rates trip back up week after week after week, one of the stories yesterday, and it was a nice piece of data was home builder confidence. you say there's labor and material cost issues with builders, and that's a problem? >> it's more labor than material costs, finding labor is a challenge for them. all people employed in the free crash era -- they are doing something else,
and home builders are concerned about the quality of the brand and pulling in random people is not part of it. >> multifamily homes of 21% month over month. >> 69% year over year. cheryl: not single family homes or mom and pop. the economy's not what we're thinking here? >> the apartment story is people move out of their parents' houses, move into apartments, stepping into the living independently life, home buyers that are representing or buy, and people want more space. vacancy level apartments is less than 5%. you can see that in forever. cheryl: that is an astonishing number. you look at regions, and i want to get to this because of the south led the way of 17%. was that on the commercial real estate side or residential side? >> commercial real estate. florida's back. listen, we have have an added
supply in forever in apartments in hotels, and wear houses and retail so real estate's back, the demand's there, and the interesting thing is while interest rates are growing that could chill the market, if they go up because the fed decides to taper or reverse course it's because the economy is strong, and when that's strong, it's great to rent. >> you say it's strong, and that's an alternative investment, kind of out of the will house a bit, but we keep asking the question here where a is all the cash going? it might be pointing to commercial real estate here. >> definitely, and it's important -- interestingly enough, it's not just the big cities anymore. it's across america. >> the strip mall's going to come back? >> going to come back, senior housing complex comes back, and -- it's not just apartments. the small suburban office building. >> and hotels as well. >> and the forecasts for the rest of the year. cheryl: revenue per room. >> 5.9% for this year, 6.2% next
year. show me an asset class that is projecting top line revenue growth. cheryl: we showed reits, and viewers are interested in those as investments. good to see you. >> thanks, cheryl. cheryl: thank you. dennis: ha! today a new segment called "what's bugging me?" do you know the name cheryl atkinson? turns out her computers at home and work have been hacked. no word yet on the obvious question where government snoops the guys who turned on her home computer in the middle of the night. when you have to do business, assuming every move you make is monitored by government, business can't get done, the economy can't grow. the irs targets conservatives, seizing shipments and gibson guitar, snooping on reporters and millions of americans online, and tech companies
caught between customers and government orders they are not allowed to reveal. in all of this, one underlying theme, government arrogance,,a paternalitic attitude that know what's best to impose on us whether we like it too much. is twitter in your business too much? tweet me for what's bugging me. cheryl: all right. back to, and dennis loves this or hates it, 106 point upright now. deenis: lighting that. cereal cheryl you do. it's about this guy, ben bernanke, stocks soar ahead of the fed decision. the meeting began today. also, one of the clearer signs yet that mr. ben bernanke is going to be exiting as fed chief next year. >> and does what goes up come down? netflix soaring, but too big for its brichs? that story ahead. >> let's look at the energy markets, oil, brent, new york
cheryl: we have a triple digit gain, the market opened tepidly, and here every name is in the green other than proctor and gamble. that's your only red name, and not to pick on them, they are down by one cent. the american express verizon leading the way, and talk and chatter is will he or won't he, ben bernanke and the fed, get the decision tomorrow, finding out if they tamer or not, even if it's 10 or 20 billion, but the markets are saying they are not too concerned, but i knowh d that's nicole on the floor of the new york stock, change. what do you think, nicole? seems to be about ben. >> we got a weight and see mode, yet continuing to the upside, and to your point, cheryl, not concerned, at least not up to the moment. tacking on o yesterday's 110 #
point gain, but volatility's back, big swings are back, and all those people concerned about when we broke 15,000, the traders said, you know, buy on the dips, thought the uptrend and technicals pointed to the upside so what i'm looking at, also names lead the way, pfizer and verizon doing well this month. looking month to date, this month of date, pfizer, verizon, dow jones clocking in another winning month; right? since december of last year, every single month has been a winning month, and right now, not tracking the street, not yet. back to you. cheryl: repeat the fact we did not sell in may. we did not go away. nicole, thank you very much. dennis: cutting back on promiscuous bond buying and easy money. reports that fed chairman, ben bernanke, and the fed may be ready to ease up on bond buying, and peter barnes has more.
>> promiscuous bond buying? well, dennis, fed watchers don't expect any change in policy out of this two-day meeting that ends tomorrow, but the press conference is tomorrow, and they do see this as an opportunity by ben bernanke to clarify or walk backkthe comments from a month ago about possible easing of fed bond purchases being less promiscuous and slowing quantitative easing. >> there's a solid majority to keep their policies in place at least until september, if not longer, but they are talking about when to stop or when to taper, when to slow down, and that's natural, but talking doesn't mean doing. i think that's where the market's ahead of itself. >> and we'll get a policy stttement from the fomc saying
that is the opportunity for the committee to clarify its policy plans, for example, former fed vice chairman don cone says the statement tomorrow could reenforce the pace of reductions in bond purchases could -- would be gradual, be data dependent, and could be reversed if the economy had any kind of reversal. it could -- the statement could reenforce policy decisions about bond purchases are separate, everybody, those are separate decisions, and finally, the statement could clarify the fed strategy for selling off the 2.5 trillion in bonds it has promiscuously bought in quantitative easing. whether or not ben bernanke is going to stick around to do this, well, didn't sound like president obama thinks so. >> i think ben bernanke's done an outstanding job. he's a little bit like muller, head of the fbi, where he stayed
longer than he wanted or supposed to. >> as for successors for chairman ben bernanke, janet is the front runner of analysts and other names, speculate for fun, roger ferguson, former vice chairman of the fed now running tia, germany stein, harvard economist who joinedded the fed last year, and what the heck, throw in tim geithner, president obama's former treasury secretary and former president of the new york fed. dennis, cheryl, back to you. dennis: quite a beauty pageant. thank you very much, peter barnes. >> okay, guys. cheryl: ben bernanke uses terms like "escape velocity" with the bond buying program. he's using the language. anyway, i tell ya. playing defense, increasing foreign demand of military equipment benefiting defense stocks. breaking it down coming up.
>> at 25 minutes past the hour, hello, everybody, this is your fox news minute. afghanistan, after 1 years of war, news from taliban leaders are prepared to make the first move to initiate peace tacks with the afghan government on the same day that karzai says his country's armed forces are taking the reigns from the u.s. led nato coalition to begin leading the country's effort. all happening 18 months ahead of the complete withdrawal of american troops. in ireland, final day of the g8 summit, leaders call for syria peace talks to be held in geneva as soon as possible and call og syria to commit to, quote, destroy and expel all al-qaeda affiliated organizations. the g8 leaders also issuing a declaration to fight the scourge of tax evasion urging countries to close tax loopholes closing on the multinational
corporations to report what taxes are paid and stop shifting profits across borders to avoid taxes. that's a look ag the headlines now, and back to you, dennis. dennis: thank you. a shrinking u.s. military budget and increased global competition actually are good news for defense stocks. our own jo has more. >> that's right, dennis. the u.s. air force is encouraging sales to militaries overseas. the industry, by no surprise, is coming up against challenges as the american defense budget shrinks, and the air force said international air force armed sales doubled in two years and expecting more increases. this is an industry valued at 138 billion dollars. at the paris air show, deputy of the air force told us that increasing pressure on the u.s. defense budget makes it important for u.s. allies to carry out intelligence, surveillance, and missions as -ell as refueling good for contractors saying selling equipment to foreign countries
helps them, quote, establish a 20-year plus relationship, unquote, with the u.s.. the good news for stocks, 28 of 34 contractors are posted double digit gains, and we're talking about big ones. the top three, gen corp. posted 75 percent year on year, boeing up 36% this year, and be aerospace up 32%. contractors say the demand for missile defense and electronics is coming primarily from the middle east and asia, ceo, ron williams, says the top customers are kuwait, turkey, and qatar. dennis? den deny thank -- dennis: thank you. cheryl: recommending pepsico back in december. take a listen. >> we like it because it gained less than what it's grown in terms of revenue earnings with a strong balance sheet and good dividend.
that's attractive. you look for that dislodging. when a company grows in revenues and earnings, that tends to be favorable for stock buyers. when a company stock price appreciated aster, that's is overpriced. cheryl: so if you had taken his advice back then and invested in pepsico, you'd be doing well right now. look. the stock is up over 20% since oliver recommended it. you're looking at the six-month chart. i hope the chart kicking street continues as he joins us friday for the fox business summer time show down. eight stock pickers, two every friday going head to head in the month long competition, and we'll kick it off with oliver here to duke it out with chand morganlander. who comes out on top? both in the swim suits, muscles are ready, noon eastern time here on fox business. dennis: and a hundred thousand dollar prize that we have to take out of cheryl's salary because she -- cheryl: horrible idea.
dennis: reminder, your twitter responses to what's bugging me? is government in your business too much? tweet me. cheryl: latest reaction on the fbi today revealing a plot that targeted the new york stock exchange and how that plot was thwarted by the nsa. dennis: look at today's s&p winners and some losers. ♪
asked a question there, but testifying today that the nsa data collection program foiled a slew of high profile terrorist plots including one to bomb the new york stock exchange. >> 702 authority was monitoring a known extremist in yemen. this individual was in contact with an individual in the united states named kalid. he and other individuals that we identified through a fisa that the fbi applied for were able to detect a nation plotting to bomb the new york stock exchange. he had been providing information and support to the plot. the fbi disrupted and arrested these individuals. cheryl: deputy director said the programs helped catch more who planned a 2009 terror plot on new york city's subway system. of course, we're continuing to monitor that hearing that is on going out in wash.
we'll bring you the latest details, of course, as they break. back now to the new york stock exchange, nicole, and i know thatoff been talking to traders, and you've got a friend of ours with you for her reaction. >> right, and everybody is on the floor talking about it. everybody has something to say about this, but i've been here since 1995. you've been here since the 70s. do you find it up usual? do you find it scary? >> well, talking earlier in the mid-70s, i was here late 70s, but mid-70s, i was not here, but there was an incident, a broad street incident before we had the closures of the street, was blown up, actually, small bomb, but nonetheless, blown up. i mean, i've been here when people have penetrated the ious to what's nowthe thing that having everything. >> what about the news today? >> difficult for them to get into the building frankly. i think our security is
financial. you only had to be here op 9/11 to know how quickly people go into action. i feel safe here. >> right. i do too. i have to say my mother worries, cherrl and dennis, and i say, i say hi to the swat team when i walk in. >> both my husband and i -- i wouldn't have both my child and mother here if i didn't feel safe. >> very good point. cheryl: ladies, i brought my mother and aunt down to the floor, and they love nicole, who doesn't, but i absolutely agree with you both. it's a fortress down there, but we have to watch it. nicole, lay days, thank you. >> thank you. dennis: traders worry about what the fed will do tomorrow, plus, ben bernanke's future plans. larry of wealth management is joining us, and you say he's done a great job or horrible job, and you think he should stay there for a third term.
now, what what chance do you give that? >> i don't know with president obama coming out today, he wants to dismiss them and ben bernanke not going to the jackson hole meeting. who knows. i just think going back and taking a look at the choices that were in that room during that 72-hour period in the financial crisis, you know, should we let things fail? should we bring forrh austerity measures, or should we make phone banking tier policy accommodating? they chose to make it accommodating, and go back where we are now. the markets have come back, you know, housing is getting traction, jobs are getting traction, and all be it, they are not where we want them to be by any means at all, but the conductor on this train for the last four or five years is now we're coming upon the crucial point on the exit. how do we go about exiting this? short term in the business cycle. there's been four years since this has happened, and the fed is not rising rates, but
tapering now. we have a ways to go yet. there needs to be a mix. den depp wall street, all expgs, neither bulls or bears, but afraidy cat. all the betting, the yelling, the other fed member, will succeed ben bernanke, if that happens, is wall street okay because it's as expected and she's loose on money the way ben bernanke is? >> you know, if we continue down the same road of making sure that the fed doesn't -- the fed needs to warn markets when they pull support out, and as long as that communication comets, i think that we'll be okay there. dennis: no matter who is running the place. interesting. okay. let's move into where you put money or thinking we should put money based on what's happened at the fed. looks like easy money coming. two sectors wharks are they? >> long term, i like emerging markets. you know, emerging markets are flat to slightly negative this year because europe is in
recession. they'll pull out sometime middle of next year, and i think today's a great buy, looking at the demographics long term, brazil, india, china, things like that. dennis: that's nervy of you. that's good. you like housing and consumer. talk about that. >> i do. i like our large cap multinational as well and housing begin -- given the traction we see now. as we see unemployment tick down and continue to see wages increase, we're going to see housing continue its expansion now into the future. dennis: yeah, the housing bubble stocked by the easy money, low interest rate, and it's the hair of the dog who bit you and more low interest rates. thank you, lair. >> thank you for having me, dennis. cheryl: interesting take. well, finding jobs for the men and women who served our country. we talk with a world war ii vet who is teaching the younger generation to become
entrepreneurs. dennis: netflix shares soaring, but is it getting too big for its brichs? that story ahead next in the "media minute." i don't like theps and downs of the market, but i can't just sit on my cash. i want to be ppare ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose isharesor their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expses. read and consider it carefully before invting. riskncludes possible loss of principa your chance to rise and shine. with centurylink as your trusted technology partn, you can do just that. with our visionary cloud infrastructure, global broadband nwork and custom communications solutions, your business is more reliable - sure - agile.
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hotels fared better withage average score of 77, the highest score since 1994. retailers hope to cash in next year's world cup in brazil. they expect to see 2.7 billion dollars in soccer related sales in 2014 as the global event drives demand. they bet hsm -- heavily on the event. 205,000 small suvs investigated with issues with air bag sensors. the probe covers from 2006 to 2011 models, also include the sf4 from 2000-2011. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintence treatment that helps open my obstructed airways for a full 24 hours. you kn, spiriva hes me bathe easier.
spiriva handihaler tiotropium bromide inhalation powder doesot replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urining, or an enlarged prostate. these may worsen with spiriva. discuss all dicines you take, evenye drops. stop taking spiriva and seek immediate medical help if your breathing ddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain,r problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. do breathing with copd weigh you down? don't wait task your doctor about spiriva. >> small business administration found veterans with 20 years of service were more likely to be self-employed than the civilian population. my next guest is a decorated world war ii veteran with an
entrepreneurial crash course for returning vets. joining me is the author of evolution of an entrepreneur, and, jack k thank you very much, sir, a pleasure to have you on the show. >> well, thank you for inviting me. a pleasure to be here. cheryl: what have you learned? you were a decorated serviceman, but you say there are business lessons to be learned. what are they? >> yes, there are. the business lessons you learn immediately after service is that you've had the discipline, and you have to have displen if you're in business. i came out of world war ii about 67 years ago. i had no training. i did have the -- i was a navigator and radar volunteer, but i knew i wanted to go into the business world. i don't think the name "entrepreneur" was invented yet, but that's what i wanted to be, and i did it, and i hit the ground running, and i've had a
fantastic life, 67 wonderful years, and never a loss. cheryl: you were a kid in the great ddpression. what did you learn when you were a child that you apply today because you are someone that has neon not just several wars, but you've seen several economic cycles that have gone up and down, and if you're an entrepreneur, you had to ride each of those cycles. >> yes. i think the one thing i could say in two words is targeted thinking, that we have to learn to rely on ourselves, particularly today, and most of the safety nets are gone, and so people used to go to work for a big company and work for 30-40 years and retire. that doesn't happen today. you got to count on yourself and, in this market place, you have to prepare to be in a
business that you love to be in, doing something you love to do, and find a way to make a profit out of it. cheryl: if you love what you do, you never work a day, do you think that's true? >> so true, absolutely true. i can say that because i'm the beneficiary of that type of thinking, and my purpose in writing the book "the evolution of an entrepreneur" is to give today's veterans and today's emergeing business people a crash course. everything i talk about is something i've done, they are all stories and i try to simplify so that you find experiences of people emerging will have a very similar to
mine. cheryl: jack, a lot of amazing experiences, and your story's fascinating, jack, again, you said the book, again, "the evolution of an entrepreneur," jack, thank you very much. >> thank you very much, and take a look at the website to get more information. cheryl: this is why you are successful. >> i'm the oldest living tweeter in the world. cheryl: thank you, jack, appreciate it. ongoing house and intelligence committee hearing on the nsa data collection program, officials testifying at the nsa's program foiled a slew of high profile terror plots. >> the president suggested the other night the new york subway bomber could not have been or would not have been caught without prism. is that true? >> yes, that is accurate.
without the 702 # tool, we would not have identified them. dennis: this hour, the fbi'ss@ deputy directer testified about a plot to bomb the new york stock exchange. going to the floor, and keith bliss, bow's up 120. any threat you discounted to the market. what are you hearing now about the latest report? >> well, it's certainly something we are talking about on the floor, but to be honest, dennis, we dealt with threats the last 12 years now since 9/11, and so the markets have rallied to the all-time highs, something we are always conscious about, but this is the safest place in the world, downtown new york right now. there's a lot of security on the streets, and you know it's there, but there's security you don't see on a daily basis. we don't worry about it. the market trades on where it trades, and it doesn't worry about security threats or bombings. it's always out there. go on with everyday lives and don't be threatened by it. dennis: not enough to scare you
guys. the markets, though, in the last week or two are scared about ben bernanke and feds pulling back. what happened to the fear? why up another 120 on top of yield's gain? >> well, because the market is expecting the fed to stamp out bond buying program or raise it a little from what i'm hearing from clients and other chatter op the floor is that the fact of the matter is that the u.s. economy is a ot softer, and we've not gotten to the escape velocity talked about a couple years ago, and when you also factor in that the unemployment rate has not hit the level of 6.5%, not any time soon, i doubt, seriously, that they'll pull back or make noises about pulling back. ben bernanke had extremist in il moment on may 23rd when the s&p had a high on my 22, floated the trial balloon about pulling back, but since then, the data is soft. i don't see any changes coming from the policy statement tomorrow. i could be wrong. i think that's what we gauge on now. dennis: if the fed increases from here, the markets don't
know what to do with the fear. thank you for being with us, keith bliss. >> my pleasure. cheryl: metals move lower. listen to the trading pits at the cme, and phil flynn, what is going -- what's begin here with gold and copper here in particular? >> gold, you know, they are going down because no one is playing. the cpi is weak, putting downward pressure on the market and as well as the fed may be taperinn back, two reasons to get out of gold. i think copper goes beyond that, not only do we have to worry about the fed, but worry about supply, have to worry about demand in china. there is a story today, there's a big compromise that was down since may, maybe coming back online. that is is going to be huge because if you're going to bring on more supply at a time when demand is weak, that's putting pressure on copper, and that's why we have a low today. back to you. cheryl: phil, thank you. >> thank you. dennis: is netflix getting too big? the stock popped up 15 bucks
yesterday on a 7% gain on news of the deal with dreamworks animation and the stock up 4% yesterday as well. netflix is taking a huge risk, it's core skill is renting hollywood movies and network shows and accident happening them to the laptop, but this deal creates shows. wouldn't reruns of sponge bob be better? they thought the deal expire. these days, it fancies itself to be on par with hbo. a new forecast says ad spending will double the growth rate of this year and top half a trillion dollars wwrldwide next year. apparently, for the first time in world history. public group says ads next year rise 6% to $515 billion. that's a lot of commercials, baby. ad spinning this year gross 3% to 3867 # billion, down from 3.1% growth originally. ads up 13% this year.
now 23% share of all ads. cheryl? cheryl: there you go. a wakeup call from starbucks. why you may not be happy with the company's latest move. dennis: government digging too far into your business? up on what's bugging me.coming cheryl: what is bugging you, dennis? dennis: yes, what is bugging me? ♪ [ cows mo] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] whenhe world moves... futes move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to testrive the mart. ♪ all on thinkorswim. from td ameritrade. [ whirring ] [ dog barks ] i want to treat mo dogs.
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text messages. state lawmakers were worried that tesla would not find a buyer. its existence helps keep suppliers. tape a look at the stock. seattle-based starbucks is getting ready to wake you up. the company will be displaying its calories in each and every drink. you can finally see that a small caramel rapid genome has a certain amount of calories. that is your west coast minute. detroit emergency managers. >> time is of the essence.
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lori: it is getting good. good afternoon. i am lori rothman. ashley: i am ashley webster. we will see and preview what may happen tomorrow. lori: the nsa data gathering program being defended on capitol hill. lou dobbs weighs in on how to defend what. ashley: you can get satisfaction. airlines actually getting some positive customer satisfaction