hi, everybody. welcome to "the wall street journal report. i'm maria bartiromo coming to you this week from los angeles. the dow industrials toy with 13,000, could that just be the beginning. the man who says we may see 17,000 and soon. is everything you know about health and science wrong? my conversation with the doctor who says if you are taking multi vitamins you are raising your risk of death. the business of oscar. does that golden statute translate into big money for an actor or studio. the answer may surprise you. "the wall street journal report begins right now. this is america's number one financial news program, "wall street journal report." now, maria bartiromo. here is a look at what is making news. as we head into a new week on wall street. the markets are watching two key

numbers this week, one encouraging and one not so. the first oil, crude oil hit the $108 mark this week, mostly on concerns about rising tensions throughout the middle east. that's translating into higher gasoline, likely to increase as the summer driving season arrives. the other number to watch, dow 13,000. the dow touched that on tuesday and on friday. for the first time since 2008. though it did close below it this week. signs of life in the housing market. existing home sales jumping more than 4% in january, the highest pace in nearly two years. to an annual adjusted rate of 4.5 million. that is well below the 6 million homes that would be sold in a healthy housing market. the mixed picture for dow stocks reporting earnings, home depot and hewlett-packard beat analyst expectations. kraft met estimates while walmart missed. if you have been dreaming of dow 13,000, stop thinking so small. that's what jeremy siegel says.

at the university of pennsylvania says. jeremy, good to see you again. thanks so much for joining us. >> happy to be here. >> so we're talking about dow 13,000. you believe the odds are in favor of the dow hitting 15,000 over the next two years and there is a 50/50 chance of 17,000. >> right. >> why are you so optimistic? >> you know, 15,000 seems wow, like a dream, but truth of the matter is it would only mean another 7.5% this year and 7.5% in 2013 which aren't gigantic gains. so it certainly is not out of the question. in fact, i think as you mentioned it is very possible that we are going to get to that 17,000 level by the end of next year. we did a lot of historical analysis, and once you have had a bad five

year period like we have had before, the following two years tend to be very, very good with gains that have averaged almost 20% a year. so when we looked at all the different probabilities of what history and there is a lot of history, we're going back 140 years has told us, it seems i wouldn't call dow 15,000 a slam dunk but 70% of the time we will have reached that and 50% of the time we will have gotten as high as dow 17,000. >> let me ask you about this situation sort of feeding on itself. do you think that 13,000 which we are at, does that bring retail investors back into the market? does this feed on itself? >> well, a little bit. whenever you cross a thousand there is a little news generated. we have passed 13,000 before. we've even passed 14,000 actually,

in a few points after 13,000 we will actually be just double that low level that we hit in march, 2009. we are going to get the information out to the public. what the public needs to do is to think about, we have a different market than we've had in the last couple years. we have had more stability in the market, better earnings in the market, better dividends in the market. the major reason marks rhea, i am bullish is not so much on historical patterns as important as they may be. why i'm bullish is because of the earnings and dividends that american companies are giving to their investors now and in relation to the extraordinary low interest rates which we are all distressed about but it looks like they are in the cards for quite some time to lead for a very favorable valuation of the stock market. >> you know how people are feeling after what we've just seen.

you have been bullish before. the last decade was pretty much a lost one for investors. what went wrong during the last decade then? >> no question about it. what went wrong in the last decade, maria, was really very simple. in 2000 the u.s. stock market -- as around the world, the u.s. stock market was selling at 30 times earnings. that was in the middle of the tech bubble, the enthusiasm. we got to a new millennium. 30 times earnings. maria, that is much higher than we were in 1929 at the peak of speculation there. in fact, it is the highest we have ever been. yo're not going to get good returns from a 30 price earnings ratio market. in fact, when you look back it it was not surprising we basically got zero returns over

that decade. look at where we are starting now. we are at a 12 or a 13 price earnings ratio. that is below the long run average which is 15 and well below the long run average when you are in a low interest rate environment which is 18 or 19. so the reason why it is going to be different in the next five or ten years is very simple. you are starting out here with stocks at very cheap valuations in 2000, the most expensive valuations. >> that is a great point, jeremy. let me ask you real quick about the news of the week and the president coming out with the tax proposal. you've said you're disappointed with president obama's tax policy specifically with the proposal around dividends and capital gains. why is that? tell me what the issue is? >> one of the main issues was, obama has always been for maintaining a break on dividends. when he campaigned in the last

presidential election, he didn't want to raise it from 15 to 20% but he never had talked about raising it all the way up to ordinary income tax rates. and the reason is very, very simple is that our system and we have the highest corporate tax rates in the world or within a smidgenen of the highest in the world. firms are not allowed to subtract dividends from corporate taxes. when they pay out dividends they are paying a profit tax and individuals are paying a tax on the earnings. and around the world almost every country gives a break to dividends. and to suddenly take that away in a period where more than ever we investors, those baby boomers that are entering retirement need that dividend income more than ever to finally say, hey, guys, no more break on dividends. it just came out of the blue. i didn't hear any discussion among democrats about that.

i'm very, very disappointed. >> jeremy, always wonderful to have you on the program. thank you so much. >> thank you for having me. we appreciate it professor jeremy segal. in the interest of disclosure he is a senior investment strategist at wisdom tree of which my husband is ceo. coming up next on "the wall street journal report, a vitamin a day may not keep the doctor away. the renowned physician whose advice may surprise you. he does have simple steps to improve your health. >> oscar, oscar, what it means to hollywood's bottom line. as we take a break look at how the stock market ended for the week. we'll be right back. ♪ [ male announcer ] the 2012 m-class continually monitors blind spots, scans the road to reveal potential threats, even helps awaken its driver if he begins to doze. so in the blink of an eye it will have performed more active safety measures

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should we be letting him p-l-a-y with our t-a-b-l-e-t? [ mom ] i think it's fine. it's the new element from at&t so it's w-a-t-e-r proof. cool. what else does it d-o? it's fast. it's 4g lte. 4-g-l-t-e? mhhmm. i think it's time to stop spelling? ok. a-y. [ male announcer ] introducing the waterproof pantech element. buy one for $249.99 and get a 4g burst smartphone free. only from at&t. what if you went for a checkup and your doctor told you

everything you knew about health and science was wrong? that is the description of my next guest, dr. david agus, the author of the "new york times" best-selling book "the end of illness." good to see you again. you spent your career as an oncologist. you worked with steve jobs and senator kennedy. what has your experience with the disease of cancer taught you about your health if >> i have seen patients and have to say drugs aren't going to work. it has pushed me to prevention. one of the big aspects of the book is how to prevent the disease. it's easier to prevent heart or disease or brain disease or cancer than to treat it. >> tell me about that. what is the most important thing that we need to know in terms of prevention? i mean, diet and exercise, i want to say. >> diet and exercise, but first of all know yourself. one of the key things of the book is know your own metrics, get your own lab. get what's going on. there's a four-page questionnaire go into your doctor with all your information.

when you go to your doctor he or she will check your blood pressure when you are there. who checked it in the morning or at night when you go to bed? i want all of your data. and then there are things like stattens. people get mad about me for talking about a drug but it's important. if you have a normal cholesterol, and have a statin, you'll reduce the incidence of cancer by 30 or 40%. delay heart attack and stroke. i want people to focus on things people can prevent. >> another thing we talked about is taking an aspirin every day. why? because it thins your blood? it thins your blood and blocks inflammation. looking on the data one aspirin a day will reduce the death of colon cancer by 60%, reduce cancer by double digit percentages over yawl. you can get a statten at walmart for $10 for a 90 day supply. aspirin for a year is $3 or $4. these are not expensive prescriptions. >> this is unbelievable. why isn't this more wide spread?

the taking an aspirin a day is critical for a person? >> i don't get it. health care and food are 31% of gdp in this country yet no candidate is talking about it. a third of our economy are these things and i don't hear it talk about. i hear health care finance talked about but not health care. >> let me ask you about vitamins. in your book you say a lot of what most people equate with their health is not beneficial like taking vitamins or working out in the morning. when you and i had a conversation recently, you asked who takes vitamins in the room and i raised my hand. you said i was raising my risk of -- tell me again. >> you are raising your risk of disease. the government at looked at 50 studies with more than 1,000 people with multivitamins and supplements. thun had a benefit. many have a detriment. if a man takes vitamin e a day for three years his risk of prostate cancer, common nonskin cancer is up 17%. it lasts three years after

stopping. a beautiful study published this year if women, you know, tens of thousands of people, take vitamins or iron their risk of death is slightly higher. i look at these and say no benefit at all. clearly positive major negative here. why are people doing it? >> i don't understand why. first of all it scares me that vitamins are not regulated by the fda. >> yep. >> that's one thing to remember. why is it that if i'm taking a multi vitamin why am i hurting myself? >> you are a complex system. if you take one thing into you it changes the rest of you. it's not as simple as this is low, let me take some to fill up the tank. doesn't work like that. it changes you in a direction either for health or against health. in this case we did ten year studies with tens of thousands of people showing no benefit. and harm. >> what is the most important thing we can do today to improve our sustainable health that doesn't cost much? >> the simple thing regularity and schedule. i know for you is difficult.

we have to focus on it. if you have lunch at noon and tomorrow 2:00. for two hours stress hormones goes up. when that happens, the body conserves energy. doesn't metabolize you gain weight, you don't function. when you get up, go to eat, make it regular. i don't care if it's two or five meals a day, it's regularity part. the person who randomly grabs an apple hurts themselves. >> i'm still blown away by the vitamin thing. sorry. your ideas have raised some controversy saying otherwise healthy people may take your advice too far and demand testing. undergo full body ct scans which the fda does not recommend for healthy individuals. how do you defend that? what do you say in terms of cost and care? >> i don't tell anybody to do anything. i say have the conversations with your doctor. i want the conversations back and forth. i want to prevent disease. we know if smokers get body cts and you find cancer early you save lives. that was in the "new england

journal of medicine," clear definitive study. if the fda says it can cause harm develop better technology. i want the emphasis on a problem and solution not just putting it under the covers. i want to move forward. >> thank you so much. >> thank you. up next on "wall street journal report," is all that glitters gold when it comes to the oscars. we'll find out how much that statue can mean to a movie's bottom line. you can find us on facebook, look for wsjr with maria. bs. [customer:] we need to protect the environment. [worker:] we could do both. is that possible? [announcer:] at conocophillips, we're helping power america's economy with cleaner, affordable natural gas. more jobs. less emissions. a good answer for everyone. well, if it's cleaner and affordable. as long as we keep these safe. there you go. thanks. [announcer:] conocophillips.

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i looked at a rough cut of this film and these guys are lune na ticks but i'm going to join this adventure and it's a wonderful tribute to movies. part of my recent conversation on this program on the oscar nominated film, the artist. what kind of impact can an oscar have on a film's bottom line? jing me to talk dollars and cents is paul, of hollywood.com. great to see you again. thanks for joining us. >> great being here. thank you. >> you have interesting statistics on how much an oscar nomination is worth to a film. how about an actual victory? how much can it help the bottom line? let's talk dollars and cents here? >> it definitely can help. we talked about the oscar boost. i think it's more of an oscar nomination boost because during the time of the nominations and telecast these studios can really make hay out of the fact

that their movie has been nominated. once the movie wins by that time the movies have been in the market place three months or more and are pretty much played out. i think where the oscar win helps, though, is down the line, television sales, vod rights. that kind of thing. when your film is an oscar winner for best picture it adds to the value of that product. of that film. >> another is after an oscar win, you are getting more business because people are saying i want to go to the oscar winning film and the numbers add up. how about the individual actors? are most nominees in the earning stratosphere already? can that also vault actors into super dollars for their next film? >> yeah. it can definitely help an actor, no question. if dujardin, who is nominated for "the artist," if he were to win, that definitely would raise his price quote because now he would be an oscar winner. you will notice, too, in a lot

of marketing for films it would say academy award winning actor so and so or academy award nominee is a big deal to an actor and definitely raises their profile, their legitimacy. however, we have heard oftentimes about the oscar curse. some actors after they win the oscar their career doesn't go anywhere. i don't want to see that happen to anyone in the future. it is definitely never a bad thing, i think, to win an oscar. >> sure. what are the trends this year? what are you expecting? >> i'm looking at "the artist" as a film that can do quite well at the oscars. i think everyone is talking about it. of course, "the help" and "the descentents" are also frontrunners. it's an interesting thing going on right now, these films, the particular crop of nine best picture nominees from last year, the films released last year are not doing that well at the box office. they are not getting that huge oscar bump that we normally see. in fact, if you add up the total

at this point of the nine best picture nominees it is about $595 million. if you take last year's best picture nominees, there were ten of them last year to be fair, they add up to $1.3 billion at this point so more than double the box office for the crop of best picture last year than this year simply because there is not like a big giant "avatar" hit or like last year with "king speech" winning had "toy story 3" which had $415 million in the bank and "inception which is 293, that's domestic alone. you had big blockbusters in there. this year we just don't have that. >> what kind of politics goes into all of this? are there politics? behind these nominations? the studios trying to influence the nominations and voting? >> yeah. >> how do they do that? >> they put adds in trade papers

online to really not only boost their movie but also in the actors. they will really highlight the fact that let's say meryl streep is nominated for "iron lady" use that in their marketing, they spend millions of dollars trying to beef up the oscars. presence and let it be known that they have received those nominations. >> what are the favorites right now? what are you expecting for best film, actor and actress? who do you think wins? >> i got to say i think for picture i'm going to go with "the artist." for actor it is close for george clooney and dujardin. for "the artist." clooney for "the descendents." meryl streep, she has won so many many academy awards but viola davis i think can win that one. >> she was terrific. >> terrific in that movie "the help. "the help" the highest grossing with about $170 million domestically.

that one, there is great acting in that movie. the bottom line is for hollywood it is never a bad thing to get an oscar nomination. there's really no downside in my mind. >> paul, great to have you on the program. thank you so much. >> thank you. >> enjoy the show. paul joining us. up next, a look at the news this upcoming week that will have an impact on your money and then if diamonds are a girl's best friend this could have a lot of acquaintances. back in a moment. but we were ded to see it through. today, while our work continues, i want to update you on the progress: bp has set aside 20 billion dollars to fund economic and environmental recovery. we're paying for all spill- related clean-up costs. and we've established a 500 million dollar fund so independent scientists can study the gulf's wildlife and environment for ten years. thousands of environmental samples from across the gulf have been analyzed by independent labs under the direction of the us coast guard.

i'm glad to report all beaches and waters are open for everyone to enjoy. and the economy is showing progress with many areas on the gulf coast having their best tourism seasons in years. i was born here, i'm still here and so is bp. we're committed to the gulf for everyone who loves it, and everyone who calls it home. align can help. only align has bifantis, a pantented probiotic that naturally helps maintain your digestive balance. ♪ ooh baby, (what) can i do for you today? ♪ try align today.

for more on our show and guests check out wsjr.cnbc.com. hope you follow me on twitter and google plus. the handle @maria bartiromo. a look at the stories coming up in the week ahead that may move the markets and impact your money. we have two important indicators of whether the housing market is recovering this week. on monday we get data on pending home sales. and on tuesday the case-shiller home price index will be out. on wednesday the reading of the gross domestic product comes out. that is typically a market mover. also on wednesday federal reserve chairman ben bernanke will deliver the report. to the house financial services committee. on thursday auto sales for the month of february and that could be impactful for the auto stock. certainly. it may be too big to wear on your finger but it is an amazing sight. an australian pink diamond measuring in at 12.67 carats was

discovered this week in australia called the argyle pink jubilee. it was found in the argyle mine. pink diamonds are one of the most valuable jewels in the world, generally valued around $1 million per carrkra care rat this around $12 million. pretty gorgeous there. that will do it for us. thank you so much for joining me. next week ian bremer on tensions in the middle east and rising oil prices. each week keep it here where wall street meets main street. have a great week, everybody. i'll see you again next weekend. .