next. have a great holiday weekend and enjoy your time off. charles: this is making many. and i heard the fed chairman today said ameritech is that a perfect moment in time everything coming up roses. with the maximum employment and home prices are moving up appreciably in many areas. but this is absolutely phenomenal. how could it be that we enter when some americans don't have a clue? we have four special guests here as well. the people that keep us free

and safe. speaking as someone that has kept us free and safe our gunnery sergeant is always a marine. december 5. i would have to do pushups on that one. semper fi. >> so let's get to where it. happy-- are here again. why did i hear janet yellen say there is a perfect storm? now inflation and housing prices going up? jobs going up? then i the help of window spin machine is right but not from her perspective whether in this spirit of the military air strike

first is ground strike her as his maximum employment. that to is true but when they get into the weeds. >> but helicopter then they used to call the predecessor. and then to move the needle that is the disconnect they want to see things happening with a good paying job. >> to benefit their own lives that is the disconnect charles: with janet yellen in particular she has the difficult job to justified because how many know what it is? we don't know what the heck it is but it has the

extraordinary power out of there to part -- to print $4 trillion? >> she is backed into a corner things are doing better retail she is not raising rates she passed to build the rhetoric we can do this. when the rubber meets the road how many people have been on food stamps the last six years it is growing. i don't think it is the grave situation in. charles: millions and millions with the jobs market and wages have gone down, food stamps, but then we wake up now worrying about anything because it is a beautiful day but. >> absolutely when in fact, most of government overreach with the epa and irs

basically suffocating people to a point where they don't have economic prosperity. many stopped looking for jobs that gives the impression of economic prosperity which many people cannot even get on unemployment. charles: she also makes assumptions that things will get better ride around the corner. retail sales are a disaster. with debris and other data point she makes these amazing assumptions just around the corner. >> janet yellen is defending her legacy. [laughter] charles: why should it exist ? >> so that is where at why

she says everything is getting better. looked at the image the fed has done to our market and middle-class and everyone suffered through 2008. so what will happen to stick with the data as she tries to lay the groundwork. >> and then "the washington post" op-ed. >> but why would to inflate that? >> because they will increase in value but then to spend more money. charles: why hasn't that will effect taken hold? i think mr. economic data piece of the action. imagine if somebody put down

the street droping cash. we would blow kisses to the pilot. but it isn't only to a handful. that is the disconnect. >> we often talk about temporary employment to not give them duffel type of employment that they want. but with those retail investors. charles: talking about entreprenuers ship but main street doesn't have that impetus to go well with americans have done for a long time. >> if you look at state sitter business friendly

that is what creates jobs. charles: and we all agree beating up janet yellen pretty good i think her fiscal policy has been destructive. but it could be positioned to rally for many years. maybe with a goldilocks scenario. when we come back. ♪ ♪ you can call me shallow...

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charles: i have to blow the of whistle. now from a marketer perspective janet yellen didn't say anything new but the idea their rates were

higher which made some bulls unhappy but also to underscore that would take years before we get back to normal rates. now investors have been rewarded for the mediocre recovery bet what happens if the economy starts to pick up? we do indeed the economy to grow it is lower with gdp growing at 1% or less. we don't want that obviously but we wanted to start to grow a and a little bit then we start to see the stock market go higher and higher. >> this is the story grows with the stock market with these scenarios. one or 2 percent gdp between

82 and 3 percent is where we have been. with the true modern economic boom but if we grow more than 4% so here is the irony will be route for an economy? consider what we talked about there is no way to get over 4%. so to talk 15% the question is dead in the stock market. i say yes. mediocrity has been rewarded. so talk about janet yellen and again she seems pretty optimistic about our future. can we get there?

>> is unlikely china has the tough time but to think we would do 4 percent is a stretch. we're in a slow-growth environment with 3% the number show that would be a good return for the marketplace i am looking for consistency but one company that we love is air travel is increasing globally. with a significant ownership at the management level. charles: does anybody believe we can grow more than 4%? >> as long as you want to. >> but with interest rates going up and inflation and going uphill it is 4 percent

or less. >> this stock market will go higher. potentially go higher for many years. >> to give that regulatory environment give me some government spending if it isn't an option. charles: why are you talking about growth? we are in a recession. but why are we talking about this? >> we're not in a recession. earlier this week we said gdp growth is up 1.8% much higher than where we stand right now. and with the market at this point will continue to reward us even with the fed is so nervous about bye-bye now there are stocks you can

buy. >> what kind of policies do you want to see? >> there are three things. but that integration policy is horrific we are not allowing people into this country. as you know, how many people applied to hundred 303,000 that is 20,000 with a master's degree what are we doing? charles: with the lack of the better word with the south of the border with the dow have them come with the great education. charles: that is like washington d.c. >> we have to have innovation. and also the corporate tax

rate we are not highest in the free market world. what are we doing? destroying ourselves. >> than those that relocate. >> american national insurance liability and life-insurance we do well as wage growth. >> wells fargo the banking financials. and branch closings. wells fargo is better position than its peer group >> and reprise. it will take off but people are sitting on the fence. paid 1.zero and now higher price stock and that is where they go.

charles: so if we can get 3 percent that will bring people in? >> but they pay enough hi-fi's but people paid the fees. charles: people want to get back to that and it is hard to trust online. we have the big round you have been flooding us with questions. keeps them coming. ♪ ♪

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♪dancing and singing ♪baby come on over tonight charles: my favorite part of the show with me answer your questions about the market and individual stock strategies. >> cbs buys sell or hold? and to hit that bottom line positively. >> but here is the thank cvs was up $3 bite and hold. cvs. >> they have been more boring but it is the good groove with that synergy. i will stick with that. charles: i also liked the in-store clinics.

>> would you add to this position at this level? >> not yet. i did closeout century aluminum getting crushed. car will not add to with betty think it is oversold getting hammered. >> but that is not before a trade. >> is the long term buyer. >> energy stocks bounceback. >> it is that fracking space >> but it is coming back. charles: they have a lot of breaks that went offline in the last year. >> is alkali for critters? i have it for a long time although going along 30 or

4%? it is not a name that i like right now. >> talk about alcoa with aluminum going down i think that is a signal. charles: and the f-1 50 is all aluminum now. [laughter] >> is there any hope for this stock? becket is the unmitigated disaster. i do think there is help but it is tough. hold lot into the b in three or four months call your tax accountant. >> i still like it but half of them hit all-time highs i want to get out of the ones at the bottom. >> it really makes sense to

have consolidation if you look like a catalyst to a stock. charles: i am making a list right now. >> some are sexy names they cannot do it on their own but anybody see the river on apple -- the river? it is data 52 week high anybody think we will answer that pays the? >> get the same time they have great technology then others are flush with cash. >> the you can barroso a cheap. charles: microsoft and apple are sitting on a bunch of

cash. warren buffett but did not dead in the "wall street journal" forget about minimum wage there is a better way but is is still too expensive for the taxpayers? next. ♪ ♪ your a1c is not at goal with certain diabetes pills or daily insulin, your doctor may be talking about adding medication to help lower your a1c. ask your doctor if adding once-a-week tanzeum is right for you. once-a-week tanzeum is an injectable prescription medicine that may improve blood sugar in adults with type 2 diabetes, along with diet and exercise. once-a-week tanzeum works by helping your body release its own natural insulin when it's needed. tanzeum is not recommended as the first medicine to treat diabetes or in people with severe stomach or intestinal problems. tanzeum is not insulin.

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some serious side effects can lead to dehydration which may cause kidney failure. ask your doctor if adding once-a-week tanzeum is right for you. go to tanzeum.com to learn if you may be eligible to receive tanzeum free for 12 months. make every week a tanzeum week. one piece of bacon with your egg, and an omlete for the king. okay babe, you got this right? yea, it's a piece of cake! i got this. alright. good luck. love you guys! bye! alright, everybody got their bags and lunches? yup! and how do we get to your school? make a left. keeping things under control is now easier than ever. at&t digital life home security and automation lets you stay connected to your home from nearly anywhere. guess you forgot about the dog walker! call 1-866-595-9750 today, for a special $99 digital life package. piece of cake, huh? call right now to get smart security equipment, plus an outdoor video camera, plus a garage door controller, all for $99. aw, come on honey, it's so late...

woah, what are you doing up? so, how's it going? piece of cake! love you. so call right now to get smart security equipment, plus an outdoor video camera, plus a garage door controller, all for $99. ah, right. thanks honey. real life needs digital life. call now. charles: do e remember the commercials when he talks to rebut a listens. warren buffett did say something today don't raise the minimum wage there are better ways to put money into the hands of the working poor. talking about the biggest redistribution bigger checks from treasury people that don't make a lot of money at work this is the quotation the better answer is the

craft expansion of the earned income tax credit that goes to millions of low-income workers to file taxes and the government since a check. is he on to something? could resolve the minimum wage debate? bernanke is onto something but there are 300 tax changes to the stimulus bill this year low that created more bureaucracy we don't even understand the tax code that we have now somehow with this adjustment make things easier? he did is mitt there is a lot of fraud rehabing problems to make sure it is legitimate so we cannot get rid of their current fraud how do we do this? >> so many have to pay for its evert bond issue that the corporations that have to pay more money or the government that means we are paying the taxes and pay for it it doesn't work either way. charles: there are major

differences between the private sector in the federal government taxpayers what about those other barely over the threshold and they take the money from those to the neighbor down the street because they make 10,000 less? >> in period make sense that the problem is the execution but it has to do with the fact we are subsidizing the program as taxpayers that means wal-mart and mcdonald's don't have to pay $15 an hour so maybe the answer is increase the minimum wage. >> are made a free market has the better education. there is a lot of potential answers but understand the way it is set up right now it is set up not to improve your life.

if you are a couple you can gain the system better to not be very. then there is reasons not to make more money by working extra hours? i would think i don't want to be cynical but people said he owns dairy queen. >> but as some point you heard more rages you give up that tax credit is a good trade-off for you. >> but if they paid me one extra - - $1 but then i give 4,000 from the government? in addition be either/or but it at combination of both it is about the free-market but i could see both working together. charles: they both a sister in now. >> people talk about raise the minimum wage i think it

doesn't get to the low income families because those other wages is the combination of both. >> i am all for the workers getting more money. is the american dream but rather get there through good jobs. not band-aids on problems we don't deal with those issues and opens up a lot more business and a lot more jobs with that higher corporate taxes stop giving money to the people in washington d.c. for that cycle that way

i have an opinion on streets inheritance. jaime colby earns the nickname doll by. [laughter] unless she is that great show to an:00 p.m. it is fleet week sailors are onset with us we will be right back. ♪

charles: spring has finally

arrived. is played we can look at these guys who are watching us and the studio a shout out to those to keep us safe.

charles: many countries are on edge because china is dominating. check this out they are the man-made islands it will build an airstrip there you have six countries they all claimed ownership of the tiny island trying to take over the entire region with the surveillance flight over the waters this week china has warned the u.s. to stay away of course, of white house fired back to said don't challenge military flights over the region. this is all about oil china

clays there is 200 billion barrels of oil last year in official in the philippines asked japan to rearm itself if anybody knows about the atrocities japan committed in the philippines it is unheard of but china is a materialistic and will dominate. >> it is a the great threat starting through their region not only that they are the size of 1500 football fields and growing they have enough links to land in the aircraft by china they are floating aircraft carriers is essentially but there in 300 dates of water dominated and the region telling our surveillance to come down the this is international airspace so they know they cannot take that area from

the rest of the world. >> it was the big get together geopolitically that was the biggest concern so we have been pretty safe with the stock market it could be a trigger. charles: much get the middle east turmoil tour the three countries with more ambition and i says we could have another global arms race. >> we saw something similar in 2013 that we are not recognizing the claim of the aerospace and doing a lot of flyovers. but this is a risk. charles: but i want to ask our visitors. welcome to the show we appreciate you coming in everything you do for us.

give me your name and where you were from and what is your job in the navy? savings for having a son. i am from missouri and intelligence officer. charles: what can you tell us? you know, what is going on over there. [laughter] are we going to do something about this? >> we live in one of the greatest nations of the world they are up in arms while we are here so thank you to the city of new york. charles: no way we could prepay you but we try. we met yesterday but introduce yourself. >> came from south dakota idea with diesel engines on said navy ships that use diesel for propulsion.

charles: did you get your degree in the military? >> i got it while i was in the military. charles: that is amazing and went to the air force to see private companies providing education none of my friends took a vantage of its. first call is brilliant british you can make a lot of money when you come out. >> i hope so. [laughter] we salute you for your smart that is why we sleep well at night with guys out there to protect us. >> my name is robin i.m. third class from queens new york. charles: did you have a chance to go home? >> i have not. charles: you did not want to

[laughter] seven cal has had experience been? to make it has been a great. >> as a naval reservist. >> i appreciate you being there we appreciate everything you're doing simic maybe it is like where i grew up. the golden badge? with the security detachment we secure the ships to see the site so they don't have to worry about their safety. i have vowed then to brooklyn via. >> your parents know about your job? retail appreciate it in their own way.

[laughter] >> where have you been stationed. >> i am a reservist but we do drill lot of the bronx. charles: all for your amazing and we salute you. [applause] charles: i have been saying this for one year but now there really is evidence the housing market is on the of move to the upside and we will tell you how to make money. when we come back. ♪ ♪ ♪ i've smoked a lot

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charles: i welcome back. one of the biggest winners is john deere but the stock rand today -- was running in the construction business sales representative to present the agriculture businesses down a 25% but operating margins surged 11 .6%. earlier in the week we had that housing starts report proposing the families are up started to feel like something is going on but it could be on the cusp. but we hear again anecdotal

the home prices are surging. now supply-side 40% are getting the after price. the average home price is up 9%. sova higher-priced bidding on the homes? if i am a homebuilder it is time to start building homes >> these are prices haven't seen in over a decade now we hit the median price that is as close through 2006. sova talk about renters verses owners there is say a lack of supply that signals the attractive moment for home builders. at about five and a half months of supply i think homebuilders will play of big role. >> that big spike initially it was counterproductive.

and could this backfire? >> coming out of the tough winter, there is also the fear that i'd better move now. but it is the spring thaw you have to get the paperwork done. >> the people that are looking to sell? but then you jump into a new home? and i get 20,000 more then move up to the nicer neighborhood. >> the prices of homes have risen. but there is a disconnect. charles: i have heard that

it take into account how hard they were head. was the dow ever supposed to be at 6,000? from stock i it isn't up that much compared to 2,000 and compound. >> i am not protecting the asset bubble. you sell the stocks were you ever need of money to carry the mortgage. historic low with the obvious but we're still low relative to our parents mortgages. >> what is the catalyst right now? has to be the fear of the rates rising purpose that is pushing everyone. >> they go through the rest the myth you only have five and a half months of inventory. that tells me people are very apprehensive to start

all over and people are very reluctant. when reseed the elections coming around with hope and change for the entirely new administration. charles: millions have dropped out of the workforce so will that give more people a reason to believe in the dream? we will discuss that. next. ♪ ♪

♪ charles: all right, they say it's the economy. when we talk about elections. but, you know what, they're not just always about the economy. they're also about issues that make people feel safe. also, that make people feel wanted. earlier this week, we saw another wave of fines from wall street.

this time from manipulating currencies. five wall street banks ordered to pay $6 billion with a b. here's the thing. no one went to jail. for a nation with a quarter of the world's prison population. this has to be room for these guys who commit billion dollar crimes. we have 2.3 million prisoners in this country. twenty-four grand a year per prisoner. 4% of our population is locked up. you know what, it's time to distinguish true felons from someone smoking a joint in the park. from someone selling weed. it's not just about the scales of justice. but getting people to buy into the american dream. i think this will be a huge topic for 2016. the main reason i think it's important. we have people who are voting for candidates with terrible economic policies, but they think they like them and they care about them. what do you think about this? >> rand paul has come out with a lot of

policies that talk about the stupidity of some of our prosecutions. drug use is one of them. we're looking at hardened criminals who go to prison. then they're side by side with people with low drug problems. i expect the government to keep me safe. i don't need more government. it's throwing a lot of people in jail who have done nothing to actually hurt society. >> a lot of people who have gone to jail get put into prison with a hardened criminal. they get into a vicious cycle. they'll be treated like criminals the rest of their lives. >> violent felons. sexual predators. throw away the key. i'm even a death penalty proponent. let's talk about our marching orders. another attempt for the market to break out. it didn't quite do it. how much longer can we not break out before we do it, hilary? hilary: i think we're going to break out, and that's because we

have earnings coming up. when we have tiffany's, kors, a&f. we'll be looking at retailers. we have to combine that with greece. charles: who? >> greece. very important -- for the first time ever, the germans came out and said maybe we need a two-tier currency system. we might see some jolt. that would bring us back. i think we're breaking out higher. charles: what do you think, chris? chris: my greatest concern is what goes on in europe. greece will be a sideshow. it will still be an issue for the markets. that will be an opportunity to put money to work. >> economic data is dominant. a lot of housing. it starts on wednesday. we have the home price index. new home sales. next week is a big housing week. charles: there we have it. new home sales on

tuesday. matt. matt: we have been breaking out. several times hit new all time how's. we're breakinall-time highs. it's not the takeoff breakout. i'll continue to take higher highs and lower lows. i'm okay with that. >> that's where we're going. charles: hillary clinton's emails starting to trickle out. any smoking guns? >> she's probably smoked those emails and can't find them. charles: i have to give some shout-outs. this morning i gave away shirts to 11th and 12th graders at lincoln high school in jersey city. this school, they were going to close it for academic underperformance. these kids are amazing. congratulations to you. you're ready to take on the world. i want to give a shout-out to william and peter. they lefto -- they were immigrants. one from ireland the

other from czechoslovakia. they met in america. a us assistant attorney who worked on this with the treasury department thinks they gave the money as a thank you to america. that's amazing. before we go, we have a salute. every friday, we like to do this american success story. 16-year-old entrepreneur brandon iverson. his career started when he was ten years old. he started kids toy, inc. because he was tired of depending on his parents for money, he created making money for teens. we may owe him some residual here. he started a teen clothing line calls moguls line. this may not surprise you, he has a 4.0gpa. go to the website foxbusiness.com/charlesp ayne. great show. really appreciate it. jesse, appreciate having you here. we love you.

we appreciate you. everyone have a fantastic memorial day weekend. dvr the show whenever you can't see it. right now, we'll leave you with the ever capable lou dobbs. keep it right here on fox business. ♪ >> good evening, everyone. i'm lori rothman. the state department releasing the first sliver of hillary clinton's emails from her private server. the 300 emails are part of the 30,000 she selected to turn over to the public. is it surprising that clinton is saying she's glad the emails are coming out. we take that up with former chief of staff john. the islamic state making significant gains in three countries. the radical islamic terrorists seizing more than half of syria, including the last government-controlled border crossing between