lori: we will take it. melissa: is fine with us. a big treasury, peeled -- people are feeling a little risky. i am melissa frances. lori: i am lori rothman. vikram pandit is abruptly out just one day after city's earnings beat expectations at a conference call where not a word said about this. what a surprise. melissa: not too hot and not too cold. is the pressure on president obama to deliver just right at the presidential debate? neil cavuto joins us live in minutes and later who will win? melissa: lori: the u.s. handing out financial assistance. a a shocking new report on the government's wasteful spending. melissa: those rub us a wrong way but it is time to check stocks. let's go to the stock exchange.

nicole petallides standing by and marketing rally mode. city one of the big movers of the day. nicole: from earnings to the economy and vikram pandit, quick resignation, many say he was right out of citigroup by the board and chief operating officer went along with it. major market average, the dow is up 118 points, that is a gain of 0.9%. and the nasdaq is up 1% up 32 points. tech is doing well. we are seeing gains across the board and we continue to follow citigroup closely. we came in and we hear that vikram pandit is no longer a basile effective immediately. this socked wall street to hear he stepped down on his own and many speculate and sources -- the feeling was the board was pretty much done with vikram pandit.

we have a long charge in 2007. and refers stocks. melissa: thanks so much. big story. lori: despite the surprising outset my next guest is bullish on citigroup stock. the u.s. bank equity analyst for s&p capital iq osha. you wrote to us after the announcement the s&p is maintaining its rating and departure of vikram pandit is negative but you also note citigroup did executors turn around to invite strong earnings so explain your take and your reaction, surprising news. >> it is negative in terms of how the departure came about. we would prefer to hear a succession pass and have a 1-year read time on that.

the negative will be short-lived and we keep our buy recommendation as we see that citigroup is on the right track after four years -- webmac was there any hint this was happening? was this a shot and what these things happen? the gossypol morning about what could have precipitated this . >> what precipitated the change was likely a showdown over compensation. he is well paid. he makes $50 million. and could have been some effort to pull back his compensation a bit. it is in the league at j. p. morgan. melissa: that is a crazy number? >> he has been there for five years and four years ago this was considered a zombie bank on the verge of going out of

business and is a healthy thriving international lender with strong capital ratios. i don't think he was underpaid. lori: he earned $65 million which raised a lot of eyebrows. let me ask about the board. the new board took over, michael o'neill sitting in as chief. what role did they play? was there any shareholder pressure? >> there was a lot of pressure from the board from shareholders and analysts. and many saw him as being too professorial. and time to go with banker. and they are tired of being in crisis mode. they want to move forward with growth and continuation of capitol building. also they want to shrink the

balance sheet. citigroup's balance sheet is $2 trillion. how about shrinking it more and cutting off the peripheral business and returning capital to shareholders. they pay a penny per quarter. maybe this spring we will have better news on the dividend front. lori: your last comment on mr. corbett who was overseas and he oversaw the bad banker citigroup. is he the right successor? >> sure. he comes from the europe, middle east and africa division which has been growing pretty strongly and he is the right age, age 52, right experience and he will be a good leader for citigroup. we don't know much about him yet, but based on what we do know he is probably the right man. lori: he has been with the bank for decades. thank you for your time and insight. melissa: crucial second presidential debate is hours away. mitt romney and president obama

are set to show down in new york. neil cavuto, senior vice president, managing editor, the man in charge, the legend, i don't know what else i can add, he will be on tonight. what should we be watching for? neil: everyone who is keeping an eye on the president wants to see more engage president. that is the obvious pressure on the president from the debacle two weeks ago in denver. he has got to be engaged today. the problem is this might not be the venue to do that. a town hall forum lends itself to a more relaxed discussion of the issues. you really respond to average citizens questions that have been prescreened, voters are undecided. i don't know how they confirm that outside the prison saying i am undecided. could the obama war romney plan themselves -- be that as it made the president has got to the

more engaging and use every question directed at him as a chance to remind folks of his opponent's positions. we are told that is going to be a dominant -- [talking over each other] lori: could there be plants from either campaign? are you joking? neil: i could tell you guys i am on a diet and having salad and being very good about it and you see me slowly becoming a zip code. you would start -- [talking over each other] neil: my point is how do you know? i don't want to sound too jaded and cynical. i am not in the black helicopter crowd but i don't trust when someone says they're genuinely undecided, how do you know? at this stage anyone who is undecided i wonder is not as of these candidates are identical. obviously it is more than

undecided voters, something happened in denver that took a lot more than willing undecided voters for mitt romney to stack up the swing state turnaround he did that had been coming from soft support for the president. we have seen this before. we saw very few undecideds in the carter/reagan debate. obviously we are told thaa the time very few non committed voters when in fact those voters were taken for jimmy carter. melissa: what about the moderator taking on a whole new significance in the latest round of debate? neil: from what i understand, the moderator supposed to be a facilitator, not a moderator. there's a difference in terms of citizens in the audience asking questions, each gets a two minute response. he can clarify the question but she can't go to a new topic.

shea costs some debate organizers of guarding quitting the romney and obama camps where she might take liberties to go beyond that. they both expressed concern that this isn't what we signed up for or agreed to when we agreed to candy crowley facilitating it. that would someone described and simplify but for those who have done this in the past invariably they will try to redirect -- keep in mind average folks aren't going to be like journalists with questions. she has to say what he or she meant to say -- whether that offends the president or the guys trying to be president, it has caused to do so. the point needs clarification. i am in a hard way and one of

you will make things better. that is direct. you don't have to clarify. melissa: will make an interesting debate. we will be walking. lori: curious to see how the issue of libya is addressed. [talking over each other] lori: is one of the major topics you would expect. melissa: don't miss fox business live coverage of the second presidential debate tonight. neil cavuto kicks off the coverage at 8:00 talking to louisiana governor bobby jindal and alan simpson and after the debate don't forget to log on to foxbusiness.com and cast your vote for who you think won. i'm going to vote 50 or times. [talking over each other] melissa: i just thought -- [talking over each other] lori: on natural gas five to the cme for a check on commodities and -- melissa: apple teasing consumers that they have a little more to

show us at an event next week. doesn't mean many as in many ipad, but first look at metals as we head to the break. you see gold and silver trading over copper losing ground. ...seems like you guys got a little gassed out there. enough already. c'mon ys. next questn. hello! what's your favorite color? what's my favorite color? yes. purple. what's your favorite animal? sea turtle. what's your bedtime? do you believe inpace aliens? ...i love puppies. hash browns or home fries? home fes. do you like my dress? why can't you guys ask good questions like this? [ morgan ] for a chance to interview an nfl player... join visa nfl fan offers and make your seasonpic.

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so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that ke a dference ? look at verizon. it's so much more an the other ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.

lori: apple building excitement for its next big fan. what could it be? the company said in an

invitation to any event one week from today on october 23rd at 1:00 eastern. apple is widely expected to debut its new ipad. all things digital also reporting apple could release a matchbook with display. checking shares of apple of. $13.12, $637.88 at a session high. of we title -- tired of these apple events? [talking over each other] lori: natural-gas continuous climb. melissa: phil flynn of price futures joins us now. natural gas is down again after snapping a winning streak yesterday. phil: put those sweaters away for another couple weeks. temperatures are warm enough. natural gas is pulling down and this was exploding upward over the last couple weeks and

expectations of winter but mother nature -- we would get a blast this summer and temperatures will be up. natural gas market is overdone. supplies well above average this time of year. the market will pull down more. melissa: what is doing on with coke? >> rocking today. this market has been under a lot of pressure because of the international association showing it is down 16.1% from a year ago but not as bad as they fought for and consumer confidence, they consume more chocolate than anyone else in the world. 25 pounds per person. in germany it goes up. chocolates and beer you are happy in germany. melissa: in new colonel for us we didn't know every day. chocolate consumption is tied to nobel prize winners as well.

anyway let's get a check of the markets. we are a session highs. nicole petallides on the floor of the stock exchange. earnings with this rally. nicole: someone say chocolate? let's look at the dow. the dow is up 123 points. i want to look at a couple names that have been on the move. goldman sachs came out with quarterly numbers as anticipated. eight yesterday we denied some of the folks on wall street anticipated a fee for goldman sachs. it was exactly that. there's a look at goldman up 0.3% beating the street on numbers and raising the second time this year which is now at $0.50 a share. good news for goldman as the profits from a year ago obviously improving significantly and swinging to a profit. let's look at coca-cola which we need to watch. strong dollar they did note some of the pressure. coca-cola revenue mix, wall street analysts estimate.

earnings per share did come in line with coca-cola, one of the few dow components that are in the red down 1%. lori: vikram pandit was forced out. charlie gasparino has the inside word on this. to the long-term replacement might be. melissa: look how the dollars fairing on a day when stocks are up 123 points. weaker against the euro and the panel will be right back.

>> 22 minutes past the hour your fox news minute. nnw concerned about the safety of a pakistani girl who has been flown to england after being shot by the taliban in her home country. the 14-year-old was targeted for promoting education for girls. the move to england was supposed to protect her from further attack but british police have questioned two people who tried to visit her in the hospital. hillary clinton says she was responsible for the security

breach at the u.s. consulate in libya where the u.s. ambassador and three other americans died last month. speaking to fox news clinton blamed the fog of war for the confusion and details surrounding the terrorist attack. republicans criticize how the obama administration handled the incident. vice president joe biden joining other power brokers for the funeral of our inspector outside philadelphia. the former pennsylvania senator lost the battle against cancer over the weekend. she was 82. those are your headlines on the fox business network. melissa: thanks very much. vikram pandit says it was his decision to leave citigroup as ceo but charlie gasparino says i don't think so. he is here with the latest breaking news. charlie: he officially resigned. the board allowed him to resign but sources tell the fox business network vikram pandit was the word is generally called ousted. the board alerted him last night. sources tell the fox business

network they lost confidence in his ability to lead the firm. the board -- the two sides parted ways. at that point of the board other regulators and called all the regulators to do that and one of the biggest systemically important banks in the world, citigroup is leaving. that is how unfolded. why did unfold? they had earnings yesterday. this is what we understand. last thing they wanted to do was spend 90% of his time talking about vikram pandit and why he was leaving. so they rolled it out this way. after the market closed they told him and at that point decision was made this morning let's pull the trigger. what did it come down to? there may be another story here. i am continuing to look. there are aaways conspiracy theories. my best sources that are close to people at citigroup, members are telling me it came to the

final straw. that was the s s b valuation. they bought solomon smith barney to morgan stanley. it was at the height of the financial crisis with an unloaded assets. every year morgan stanley has an option to buy more. they kept the peace remaining on the balance sheet they just told -- sold to morgan stanley to more than was worth. they had an independent arbiter come in his set you are keeping it on $5 billion more than it should be so you are going to take a charge of $5 billion. that according to what i heard was like the straw that broke the camel's back but many other things. citigroup was good on a stress test. they weren't. they couldn't return capital or to buybacks. they couldn't basically help investors with this stock that is generally dead in the water and a lot of other stuff in between. i will say this. when you write these stories, when i was at the wall street

journal you don't quite say fired. that is not very legal term. we put the gun to your head and you did something wrong. ousted is what goes on. we lost confidence in him. when do you want to go? we would like you to go now. melissa: what time should we order the car for you? charlie: there is another network--a specific reporter at another network saying this person thought vikram pandit -- she believes that -- believes what he says in terms of leaving on his own accord. i will say this. forget what i just told you. it defies a certain logic if you know a certain -- the last thing these guys want to do is leave like this with their shirt hanging out their back. is not becoming -- [talking over each other] melissa: forget it. i am out of here. charlie: unless they were taken away, his privileges to the

yacht club. i have no idea about this but if you think about it suppose he takes a cut in pay? there is a huge compensation plan in place for all these guys. it is the office itself which attracts these people to stay in a job as the ceo of one of the biggest banks in the world as opposed to being unemployed. i am telling you forget what i tell you. think of the logic. there is no logic in in just wanting to leave. lori: he has been under harsh criticism since the financial crisis because of the fact that he has never been a formal commercial banker. he had this hedge fund the. [talking over each other] lori: he couldn't execute the wachovia deal. charlie: vikram pandit was a longtime morgan stanley executives who was considered one of the smartest guys at morgan stanley. she is very sharp. in 2005 when there was an

uprising inside morgan stanley and bankers take over the place and get rid of dean witter man in morgan stanley in 1997, the ceo, john mack leftover that and a few years later they wanted him out. the guy they wanted to a.in that job was vikram pandit and essentially the coup was uncovered, he got rid of everybody, a lot of people left and john came in. that is where he came from. when he left morgan stanley he started his hedge fund. [talking over each other] charlie: to citigroup -- melissa: pocketing $160 million for himself. charlie: it was terminated. they got rid of the hedge fund. why did citigroup buy that? i talked to bob rubin about this, the lead board member, one of the top guys, number 2 executive at the firm. he told me it was his decision to buy that part of it.

he advocated because he wanted to buy not just the hedge fund but vikram pandit to be the ceo, the successor for chuck prince which eventually became. this guy is not a guy who came from a hedge fund and worked at citigroup along on wall street executive. sheila bair didn't think he was a light weight. no doubt about that. she didn't like the deal he was cutting with wachovia. to buy wachovia this is before citigroup needed a second bite of the apple, they were going under because i remember the story -- i was working on a sunday. we broke the story on the air on a sunday. what happened was they tried to get the wachovia deal done. could only do it with federal assistance. wells did an end around around vikram pandit and went to wachovia and bought it without their assistance and when that happened the bank run began on citigroup and they needed to go to washington for

bailout. [talking over each other] lori: thank you so much. melissa: mitt romney has -- president obama has moved away with three weeks and will the president -- presidential election. should you jump in to coal now? we will talk about that next. lori: stock foldable the nice rally underway with significant movers. here are some s&p winners. murphy oil of 9%. fossil up 7%. first solar an interesting alternative. we are about to talk about cold up almost 8% at the moment. back with more after this. dry mouth may staroff as an irritant.

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lori: time for stocks now. dow hovering near session highs.

are we going to nicole? we don't have nicole. i apologize. melissa: so the first presidential debate put coal back in focus. stocks soared and mitt romney said this. >> i like coal. i got to make sure we can continue to burn clean coal. people in the coal industry feel like it is getting crushed by your policies. i want to get america and north america energy independent. melissa: but the sector's rally quickly lost steam as weak fundamentals took hold. our next guest says coal names are a buy no matter who wins in november. thanks so much for joining us. >> my pleasure. melissa: let's get right to it, natural gas the price has tanked. it is abundant. fracking is going on everywhere that put pressure on coal and at same time there is war on coal. how can you be bullish on coal with all that? >> natural gas prices bottomed in april. if you look out 12 months at the strip it is close to $4. we've had a pretty good

quiet rally in natural gas. melissa: only production back up. price is still cheap. comparative basis natural gas looks more attractive to electricity providers than coal. >> it does in certain regions. if you're selling out out of wyoming powder basin. illinois basin the price is better. we need to see prices move higher for appalachian coal producers to sell to utilities to get better prices. if you look what is happening on the production side of gas and get normal winter as opposed to very warm winter that could be very helpful. lori: in reading certain reports they're flush out of coal in certain parts of west virgina, right? very little quality stuff remaining. you have that with the emission rules. >> yeah. lori: how do you incentivize the facilities to upgrade and continue to produce and put coal on the market? >> that is interesting, back in the 1990s electric

industry put a bet on natural gas seeing it would stay low for a long period of time and didn't work out that way and gas spiked. you need fuel diversity, for 24/7, 365 day a world, price will allow demand for coal to pick up. in appalachia we need to see better gas prices. in illinois and wyoming we could see demand pick up as gas prices move higher. melissa: if president obama gets reelected seems that would be terrible for coal. why do you agree not agree with that. >> it is terrible for coal his administration, negatives for coal during the obama administration has been i can baked into the stocks and fundamentals. even if obama does win he can't control the weather. he can't control china stimulus. demand for coal in china. weather picks up, economy gets better. on the day after the election my guess the coal stocks would sell off. melissa: thanks, michael. >> a pleasure. lori: so vice president

biden's performance last thursday night was any indicator, president obama, well will come out swinging against governor romney, the second presidential debate. that's tonight. will it hit home for voters? lou dobbs is here. melissa: let them eat caviar. a senator's shocking new report on the government's $19 billion in wasteful spending. first look at the 10-year and 30-year treasury as we head out to break here. you can see the yield on the 10-year moving higher by four basis points. we'll be right back. [ male announcer ] this is steve.

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go national. go like a pro. >> i'm cheryl casone with your fox business brief. murphy oil shares are jumping after announcing it will spin off its u.s. downstream business into an independent company. the oil guy giant authorized a special dividend of 2 1/2 dollars a share and stock repurchase of up to a billion dollars. investors are bullish for kroger after they boosted long term epa target. the board of directors authorized a $5 million stock repurchase. gap is overhauling the management lineup for the next fiscal year. consolidate, north american, international, online, outlet and merchandise division division under the its main brand. it ace plan to improve market share. the company operates in more than 3200 stores. it operated 3200 stores in more than 80 countries.

that is the latest from the fox business network, giving you the power to prosper.

lori: president became and governor mitt romney facing off in the second presidential debate at hofstra university in new york tonight but is it romney's to lose? some pundits say the pressure is on president obama to deliver a goldie locks style performance, not too cool as his first debate performance was and of course not too hot. critics say vice president biden in the faceoff last week. will president obama be just right? lou dobbs is here with his take. i tell you i think we're almost giving too much focus to the president and not enough to mitt romney because i think we expect him to come out swinging again. we don't expect any vary agsz -- variation in romney's performance. >> part of the reason for that, lori, the national media has been supporting whether it be biden or whether it be president obama. even with the awful

performance by the president of the first debate. the national media was clucking he wasn't prepared. he is still a genius. my lord the brilliance couldn't get out that night. what we watched is what we saw and what we saw is reality. there is an immense difference between these two men in their knowledge, their command of the material and also of the stage. vice president biden, my goodness, he got a little carried away, didn't he? as far as the national media is concerned but that is just passion irrespective he had his facts wrong. he interjected to correct a man who was right. but came out pretty even because cbs has the poll one way and cnn had it the other. it is all nonsense. among the independents "pew research poll" shows that, guess what, congressman ryan won the debate among independents which is the critical target of that evening. and, now we have tonight's debate. we're going to see the same

two men, the president of the united states and governor romney. and guess what, they're going to be the same guys. the issues are going to be in most instances the same. in some, far more urgent. with new developments, whether it be benghazi and, what appears to be a cover-up, whether it beethe economy and what appears to be some improvement. these, the way these men handle themselves with, you know, a few days difference in time will be fascinating. melissa: i'm really interested in the format and the questions. they're trying to get the undecided voters. >> who i'll help you. melissa: who are these people? >> i'll help you. 60 uncommitted voters by gallup which just had a phone conversation with the obama administration and went in and changed their poll results. lori: you -- >> they did it and did it because of intervention of the obama administration. these are the same folks who selected 60. don't worry too much about that, because the town hall

meeting is rigged from beginning to end with questions from the audience that have been screened, sterilized homogenized and put in the hands, neutral objective and oh so nuturing hands of candy crowley. so --. lori:. melissa: you sound a little sarcastic, lou? >> i don't mean to be at all because i embrace the process. at least we're going to see, a crate show tonight between these two men. lori: we know governor romney emerses himself in all of these subjects. he is so well-read, so well-studied, i'm confident in whatever comes his way he will be able to handle. >> there is no reason not to be confident because he had a terrific performance. we are now sighing governor romney. this is a man who has, gained comfort, with the roll that is before him which he has been seeking for years. the president. lori: yeah. >> he didn't get here by accident. it will be interesting to see what he brings tonight. essentially we've been introduced to both of these men in the stages which they have to perform tonight.

melissa: yeah. >> we have a very food idea of who we're watching. >> i will watch every minute. i can't wait. lori: thank you so much, lou. we'll see you tomorrow. we'll do our net post-debate analysis tomorrow. >> look forward to it. lori: you can see lou with melissa and i each day at this time and 7:00 p.m. eastern and leading our debate coverage tonight, stephen moore of "the wall street journal" is your guest. he is always fantastic. >> he has a new book and we'll flog the dickens out of that thing. lori: you should. melissa: it is quarter to, as we do every 15 minutes let's check the markets. nicole petallides standing by on the floor of the new york stock exchange. you have upbeat news on the housing sector. >> stocks may not reflect the upbeat news we've seen, not today at least. look at homebuilders while i give you numbers on the sentiment. homebuilder sentiment rose to a six-year high but momentum is easing as far as expectations in the next six months. that's why you're seeing this group is mixed and leaning to the downside.

current sales we're seeing are pretty much flat. the outlook is flat. the momentum has been decelerating. but many of these stocks are up 100, and in the case of pulte homes, 300% in 52 weeks. back to you. melissa: nicole, thanks so much. lori: so at a time when our country's deficit is more than $16 trillion, should the government really be spending one 1/2 billion dollars of your money to subsidize cell phone service for others? rich edson is in washington with more, rich. >> there is much less expensive talking urinal cakes. 10 grand spent in michigan to fight drunk driving and offer a novel lavatory experience. senator tom coburn's released the government "wastebook". star was day at massachusetts public library and played puzzles and took photos with favorite characters. audit program designed to find overpayments in medicaid cost more than it saves. purdue university use ad

$350,000 grant to study golf. when they envision a larger target they play better. coburn says his own state spends half a million dollars to keep open a airport averaging one flight a month. those in 30s who drink heavily are immature. winners according to our panel of judges, robosquirrel. researchers in california spent part of a 300 thou grant on this creepy little fellow, a dead squirrel with robot parts all this to determine what a robosquirrel does when encountered with a state. this festival with zombie yoga, and visualization to empower the player emotionally. that means back to you. right. melisss: i think robosquirrel was the winner. no i think that was the most --. lori: what do you think, rich? what was the most outlandish? >> robosquirrel. there is video on youtube. it is really creepy. lori: there is lot of stuff

on that list had to have been marginal, right? i'm trying to be optimistic. not all pork. melissa: no. she's crazy. what is she talking about, no, no, it is all crazy. nice try though. lori: i tried. melissa: rich he had sown, thank you so much. >> thanks. melissa: enough to make thomas crown jealous. the daring art heist at a dutch museum and pricely works that were stolen. lori: stock market rally with the dow up 123. big pops, fossil, mattel, broadcom, all showing significant gains today. 0t[h7 everyone has goals.

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melissa: it is a big day for earnings as tech leaders ibm and intel gear up for their third quarter reports.

sandra smith has the inside scoop on today's trade. >> melissa, lori, hear is the thing to watch. as you look at the dow jones industrial average on an intraday basis we're still seeing the highs of the session. if you look at the dow 30, your leader is intel. it is leading the way not only for technology stocks but leading the way for the dow, up 53 cents heading into earnings after the bell tonight. not just that, guys, ibm one of the stocks in the green now. these two names reporting after the closing bell tonight. that being said what you need to know about intel as the stock is up 2 1/2% today, it is a stock that really struggled so far this year, down about 8%. you can see the decline basically since springtime in the intel shares, if i put to one-month chart, this is dating back when intel really lowered their guidance for third quarter results which we'll get tonight. the stock has fallen 10% since then. a lot of analysts are exploring maybe the bad news

is already priced into intel shares. analysts think that may be the case. average price target is 25 bucks with an overweight rate heading into results tonight. big blue reporting after the bell. this stock extremely volatile. as you can see a one-month chart all over the place. bring up a year-to-date chart, it is up 14% so far this year, pretty much right in line with the broader market. profits are expected to be up 10%. revenues are expected to be down. watch that sort of mixed report that is supposed to be tonight. second quarter, if we see third-quarter revenues decline, melissa, and lori, this is the second straight month of that. keep that in mind. most analysts have a neutral rating on the stock. they say hold at these levels. a not a lot of analysts saying buy ahead of the bell. melissa: sandra, thanks so much. catch intel and ibm results 4:00 p.m. eastern after the bell. intel cfo stacey smith join

liz and david asman to break down the earnings. lori: here is good one for you. a massive art heist in the netherland is putting cat burglars around the world to shame. listen to this. dutch police say seven priceless paints by picasso and matisse worth more than $100 million were stolen from the museum in rotterdam early tuesday morning. museum spokesmen were reported that police were alerted during the night when the alarm went off. but when they arrived the thieves were already gone. the thieves made off, were among the works, monet waterloo bridge and harlequin's head. if you steal them, who will you sell them to? everybody knows where they came from. melissa: haven'tly you can't put them out anywhere. people find where they are and take them back and you bought stolen merchandise. i don't know. lori: maybe somebody had an axe to grind. melissa: or maybe a vault or

basement. lori: put in own personal time capsule. melissa: how did they get away with all that? what is the security really like? got the alarm, security guy said, oh my wake-up alarm? what happened? how does this happen? i don't know. anyway coming up to an "money", former commerce secretary carlos gutierrez will join me to discuss this painting. no. he will discuss the debate. 5:00 p.m. eastern here on fox business. we're going to break down all the elements what to watch for the debate and lead you into our blockbuster coverage. lori: the art heist is a shame. they will be hidden away. you can't sell them. tracy byrnes has some vacation. i will guide you through the next hour for trading. shake-up at citigroup. this is headline of all headlines. chris whalen weighs in. he has been predicting vikram pandit's ouster for quite a while. he is our special guest next so keep it here on fox business.

ashley: good afternoon, everybody. good day for the markets. the dow up 126. good afternoon to you, i'm ashley webster. lori: good afternoon, yes. stocks are rallying. stocks are selling. investors surging a second straight day. we have expected corporate profits. all the worries about quarterly earnings, were they overreacting? ashley: hear is the story that has everyone talking. vikram pandit ousted as citi ceo but why now? chris whalen says citi's board has explaining to do at the very least. he will join us in a few moments. lori: it is crunch time for president obama and gop nominee mitt romney. we'll see how it will shape the election three weeks away. ashley: everybody looks at

body language and will be interesting. not a lot of smiles like joe biden. lori: i don't think it will be clear, the president is under a lot of pressure because he has to strike the goldilocks, not too hot, not too cold. talk about the markets. maybe they're setting up --. ashley: time for stocks as we do every 15 minutes. nicole petallides, not goldilocks. she is the qeenl of the nyse. >> long locks, not goldilocks, but you never know. dow jones industrials up 124 points where we're seeing markets take off to the upside. we have decent economic news and good earnings news as well. so we heard from goldman sachs today for example, one of the names moving higher. the vix, the fear index, no fear here. we're seeing it to the downside. the dollar is lower. that really led the way for the equities to move to the upside. up volume clearly outpacing down volume. dow winners include names like intel and alcoa just to name a few. the truth of the matter the majority of the dow

components are well into the green with five of them hitting 52-week highs today. look here at johnson & johnson, dow component, johnson & johnson. at its quarterly reports they reported better than expected quarterly results and we're watching it on the move. prescription drug sales those were on the rebound. they have been doing well with other drugs pertaining to sore crisis, hiv and cancer. prostate cancer drug is doing well for them. that is helping them with leaping sales for that particular drug. so there's johnson & johnson up 1.1%. back to you. lori: ox, nicole, thanks so much. we have breaking news out of citigroup. vikram pandit, the ceo out, effective immediately the ouster surprising many on wall street. what happens, what is next? here with particulars, adam shapiro covering the story all day and with the latest. >> that's right. vikram pandit saying the resignation was his decision. there seems to be a bit of a discrepancy. citi won't confirm he

resigned or as we reported ousted by the board not happy with his performance. look what citi shares have done since mr. pandit took over as ceo going back to roughly 2007. the shares have lost roughly 89% under his watch. there is real criticism under the way he watched the show over there, this coming from mike mayo, says the transition everyone on shock or at least surprise, shock a bit of high per fwo lee. this reflect as microcosm of the poor, poor corporate governance under vikram pandit. keep in mind he had the unpleasant joy of having to steer citi through multibillion dollar bailouts as well as the financial crisis. sheila bair who was at the front seat of the bailouts from the fdic issued this statement to fox business early this morning saying quote, the most important job of a corporate board is to hire the chief executive officer. the citi board should be commended for the decision they announced today. this is a new chapter for citi and i wish them well.

sheila bair will be on with liz claman at 3:00 p.m. you do not want to miss that interview. also under vikram pandit let's look how you and i saved citi, the u.s. taxpayer. look at this, $45 billion. that was the bailout they got. $99 billion in loans from the federal reserve and then remember the $301 billion in government guaranties that citi received. almost $500 billion, at stake for them thanks to you and i the u.s. taxpayer of the also, mr. pandit, although he talks about earning one dollar while he was ceo he made quite a pretty profit at citi. remember in 2007 he sold old lane partners for 800 million to citi. he made 165 million. they closed it, citi did in 2008 along with his partner john havens, who also resigned today as coo will throw it back to you. lori: thanks for summing up the last five years under pandit. ashley: joining us with more on vikram pandit's ouster

from citigroup and what really happened, a lot of speculation, i'm joined by chris whalen, bank analyst and senior managing director with tangent capital partners. crossing the headlines, citi is will announce hosting a conference call on the ceo change but doesn't have a time and date. look, you've been calling for a change for years at citibank but this is about most disorderly way they could have gone about it? >> it is unseemly. regardless who the made the decision and why, don't let the ceo of a large bank holding company quit the day after earnings. if he was going to leave, you should have told us yesterday. more importantly, mr. o'neill, chairman. board still apparently has a governance mess on his hands that goes back to bob reuben and sandy weill. you had two strong leaders that didn't lead very well. had a board of cronies around them and they don't have proper governance structures in this bank even today. ashley: was this in the works for a time or based on the way it was handled was

it a rash decision. what do you think?. >> it has to be ration decision. did they decide this last night? if they knew he was going to resign they should have told us yesterday during the analyst call. this is simple disclosure, you said you don't think the board or management at citi have their business under control? >> yes. ashley: why do you say that, third quarter results and earnings were pretty good. >> they're okay. citi is value destroyer. we wrote off $3 billion for smith barney. another extraordinary charge for few hundred million. every quarter there is something. to me at the end of the day you have to ask yourself is there an orderly governance process in this bank where they're making prudent choices in a deliberate way. when the ceo quittes in this fashion, won't stay on the board for continuity sake for a year, it raises questions. this is the end of the third quarter. they are supposed to sign off on the annual report and attestation to regulators. shael la bear said herself,

you will have her on the way, you want to see new leadership. i want to see a new operator at head of citi. we haven't had one for 20 years. ashley: you want a banker. citi is a political bank. mr. paulson, mr. biter in all affecting institution and preventing sheila bair and maybe people at the fed from demanding change, not so much in the executives but at the board level. if you don't have strong governance the rest of it doesn't matter. ashley: where do we go from here? the replacement, michael core bet head of africa and european business but there are those who say he not well-rounded about in his background and experience? >> compared to what? we had a former hedge fund manager running this the past few years. i think it is a refreshing change. i share chairman bair's view, i wish him well. he is not a deal guy. he is a banker. that is a wonderful change. ashley: citi is a huge international bank. >> yeah.

ashley: that is where it lives or dies. how would you like to see them move forward, diversify perhaps a little bit. >> coming in he has the cards he is going to play. they sold smith barney. they got rid of travelers. there is not any significant business you're going to sell. you have consumer and commercial lending. you have capital markets. you have very significant relationships in the middle east and asia. i think that is where he will have to build. i don't see them buying anything in the near term. if they could just run this business well and avoid surprises for a while i think they could get investors to come back. let's be fair. this stock is twice as volatile as jpmorgan. ashley: yeah. >> look at the beta. it has a very, very low dividend because the stock was so diluted during the rescues you just went over. ashley: right. >> it is hard for an investor who wants cash flow and low volatility to buy this story. ashley: interesting. >> jpmorgan if you have a choice, right? ashley: absolutely. certainly on a day like today, investors are wondering what the heck is going on behind thh scenes. chris, thanks for being

here. >> thank you. ashley: thank you. lori: shares of intel and ibm both gaining after reports after the bell. robert gray has our preview next. ashley: glenmede's jason pride says what will shape it for the rest of 2012? first as we do at this time every day, oil is down slightly at 91.79 a barrel. we'll be right back.

ashley: welcome back, everybody. breaking news involving news corp, the parent company of the fox business network. all our directors have been elected on the news corp board which means that rupert murdoch will keep his chairman and chief executive titles. see a chart of news corp up 44% by the way on the year. moving higher as well as 24.76. murdoch will remain chairman and chief executive titles. there was a move to nominate an independent chairman but that does not happen. the proxy vote is in and all directors have been elected. lori: as you know, ash, we're in the midst of third quarter earnings reporting season. so let's bring up to speed. tech giants intel and ibm report the latest numbers after the closing bell and analysts expect one company's earnings to rise and another to fall which is more adaptable if you will in a shrinking pc market?

robert gray joins us from the newsroom with details? >> lori, a tale of two tech titans if you will and where the growth is or isn't. pcs not where it is at. look at pc sales slump. gartner is saying pc sales in the third quarter will drop 8.3% versus third quarter of last year. the biggest annual drop since 2001. the slowdown very evident in the chip sector. take a look at intel. it is the biggest maker of chips for pcs and servers. they advised investors it will fall short of prior estimates. revenue expected to come in a full billion dollars below the third quarter of last year. smaller rival amd warned last week. the stock up today, amid speculation apple may hire intel to make chips and move from big rival samsung. intel's stock at lowest levels in a year, toughing that last friday, losing a quarter of its value from the multiyear highs back in may. investors don't want to hear any clues whether microsoft

new windows 8 operating system will jump-start sales heading into the holidays. that will be unveiled late next week. different story at ibm. it foresaw the decline of hardware. got out of the business of making pcs seven years ago selling it to china's lenovo for $1.75 billion. global slowdown expect to hit ibm. revenue expected to fall 3% from a year ago. analysts say ibm may beat that thanks to dollar' decline since estimates were made when dollar was firming against most major currencies. watch revenue growth rather or lack thereof and comments about the global economy and demand from businesses and government. government expected to decline especially as we head towards the fiscal cliff. back to you. lori: okay, we're up to speed, ready to go, robert. stay tuned to fox business for complete coverage of intel's earnings on "countdown to the closing bell" -- "after the bell", 4:00 p.m. eastern.

they have intel's cfo, stacey smith. ashley: more problems for foxconn that manufactures apple's iphones and cell phones. er this in trouble for underage internses. the company performed an internal investigation and found an indisclosed number of interns were indeed between the ages of 14 and 16. china's legal working age is 16. a chinese labor rights group says foxconn is at fault for not vvrifying the age of its employees prior to allowing them to work. the under age interns were reportedly working at the factory for three weeks. the company has begun sending them back to school. these claims come win month after foxconn facility in a province was accused of improperly putting interns to work on iphone accessories. controversy over foxconn goes on. lori: let's continue with our market coverage as we do every 15 minutes. let's check the stock market with nicole petallides on the floor of the new york stock exchange. you have another story

involving apple. this one apple wants us to hear about? >> this is one to celebrate for all the tech gurus out there and all those apple fanatics. you take a look here, how apple is faring today, but we should note obviously apple has had some run over the last 52 weeks. it has been hitting multiyear, obviously hitting new highs, all-time highs. not today. the all-time high was 705. it is up 51% in the last year or so. october 23rd, what are you doing on october 23rd? i can tell you what all the apple folks are doing. they will be presenting in california in san jose, the theater there, and everybody is anticipating to hear more about the apple ipad mini, right? that will take on some of the other tablets such as the kindle fire. look, we've got a little more to show you, right? so get it, get the pun in the invitation. october 23rd is big day everybody will be waiting to learn more and obviously the

speculation around the apple ipad mini. back to you. lori: are we as excited as we used to get for the apple events. >> i'm excited. i'm always excited for products that help people and gdp. lori: they build up all the anticipation. the stock is on the rise today. people are thrilled about it. i'm just debbie downer. ashley: negative nancy. ipad mini will not do it for me. stocks turning around from last week's losses up 109 points on the dow. can they keep up this momentum? big money manager from glenmede, jason pride will talk about which earnings reports he is watching closely this week. lori: we'll talk to axle merck later in the hour what he has to say about currency trades. the dollar is weaker with the euro. hitting 1.30 handle. euro losing ground versus the pound. back with more after this.

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>> at 21 minutes past the hour, hello, i'm julie banderas with your fox news minute. according to an infectious diseases expert meningitis outbreak is nowhere near its end. officials are concerned other medication made by the same company that

manufactured the tainted back steroid mays be contaminated. the outbreak has killed 15 people and sickened more than 200 others. social security payments will increase in january by 1.7%. that increase is among the lowest since annual adjustments were adopted in 1975. the increase rehe ins the relatively low inflation over the past year by comparison, this year's adjustment was 3.6%. a high-priced heist at a dutch museum. a thief getting away with seven paintings including a picasso, a matisse and two monets after breaking into the museum in rotterdam. dutch police are reviewing video footage but so far they have got nobody in custody. those are the news headlines on the fox business network. book to ashley and lori. lori: thank you, julie banderas. updating you on a story that broke earlier this hour, citigroup we're hearing will hold a teleconference on its management shake-up.

citi announcing the teleconference will happen 4:30 eastern time just over two hours. city chairman, michael o'neill, and new ceo, michael core bat will host it. ashley: interesting to see what they have to say. the dow posting big gains today, up 114 as earnings season gets underway. my next guest says look for consumer growth for long term investment ideas. jason pride, from glenmede which manages by the way over $20 billion. jason, thanks for joining us. >> thank you, ashley. ashley: i didn't realize there was any manufacturing going on in the u.s.. >> well, you know the u.s. manufacturing renaissance as we've been hearing for quite some time now, it is a very gradual improvement. what happened is, the u.s. held its labor costs fairly well to the majority of the international markets. everybody in europe, other

than germany has seen a fairly dramatic rise over the past decade or so in their labor costs. we're seeing some of the results of that now. we know that, costs have been increasing or at least wages have been increasing to the tune of 10 to 15% in emerging markets. that means two things of the as those wages go up, u.s. wages become more competitive, right? by comparison when something else is rising 10 to 15% the other side is 10 to 15% cheaper and more cost effective. we've seen evidence of companies bringing manufacturing capabilities into the u.s. incremental plant decisions on manufacturing capacity additions are actually being made in the u.s. by u.s. companies, by european companies, and even by some asian companies. ashley: let me, jason, take a macro view of the markets if we can. i think we've had a few challenges to some key support levels, certainly on the s&p, but so far, the bulls have met that challenge pretty well. how do you see the rest of the year playing out?

>> well, we continue to think of this as a very slow and sloppy recovery. right? but it is a recovery nevertheless. nobody ever said deleveraging would be easy. that's exactly what we're having to do. we're having to delever through the entire recovery. that means growth is slower. means we're closer to zero. which means we're more at risk of disruptions. just the slightest blip can throw us into a tailspin so risk is high. nevertheless we think it is a continual recovery. it will gradually work its way out and grind it way out over the course of next couple years. not just next year. it will take quite some time, it will be slow and sloppy during that period. we'll see slow ups and downs. >> you like manufacturing in emerging markets. what else do you like in this market perhaps investors are ignoring that perhaps they should take a second look at? >> if you buy into this concept of this being a slow and volatile recovery, well

that tells you two things. number one it tells you equities are probably not going to deliver upon their historical rate of return. they will probably be short of that and we'll probably still see the same level of volatility. that might not be the best opportunity out there. similarly, cash and fixed income is basically priced to underperform inflation for the next 10 years. so if you think of those two as the extremes, we've been recommending investors focus on anything in the middle, anything that you can find that deliver as reasonable protection against disruptions but also delivers a good return. that includes high yield bonds, high quality stocks, not regular equities. things that are more protected within the equity space. taking some credit risk with high-yield bond and global bond, particularly sovereigns in the emerging market. then even using some alternative or more esoteric strategies such as covered calls where you're selling some of your upside in an equity portfolio. ashley: right. >> against that portfolio and capturing that, as a bit

of a cash flow and even return enhancement through the period. it also acts as a way to stablize the portfolio. ashley: a wealth of information, no doubt. jason pride, thank you so much for joining us. appreciate it. >> thanks for having me on. lori: topics on the economy, foreign policy expected to dominate tonight's presidential debate. who will come out the winner? we'll have a live preview next. ashley: first look at some of do's winners and losers out there. how about first solar up about two bucks a share. not bad. fossil, up 6.73%. we'll be right back.

>> let's check on the markets every 50 minutes. nicole petallides at new york stock exchange with a guest. >> i am here with keefe and we take an ice close look at the market. he said you are not buying or selling? >> we had a nice rally trying to trade off the fundamentals and getting nervous this may stall. we had a critical resistance level next is 1461 then i turn neutral. we will start waiting for the big reports. >> what are you waiting to hear? >> ge is the largest if you look at the line ge is 22% of what to see what they say

about global growth, u.s. growth befooe i'd make an assessment on the overall market. >> and the other factors with the debate tonight, how does that factor? >> who swings the heaviest and allow this. the market is looking for the mitt romney win to take off. >> did you hear that? >> generally eat what we see that is what people are looking for. i think it will take off if we get that. ashley: three weeks from today. >> the second presidential debate is critical and obama better come out swinging. rear at hofstra university with peter. >> the basketball stadium is

behind us. he will try to rebound from his weak performance to weeks ago. obama's aides say the president will be more energetic and aggressive. he will attack mitt romney's proposals and credibility. listed more about the 47%. mitt romney hopes o keep up the momentum to look at the record on the economy and for policy and will try to connect with the voters. >> with this stage of the campaign we can cut through the clutter of negative advertising. the only way to win is if he can convince you to not like mitt romney and win by

default. >> both candidates are scheduled to get a feel for the staging. it is a town hall setting in around. we believe president obama is still inside doing his and governor romney is expected later this afternoon. ashley: more what we can expect from the undecided voters asking questions we're joined by gerri willis >> peter barnes has the right. the expectation is mitt romney will go to center and obama will say he is hard right. but what has me fired up is this is a sin questioners of

what they are capable of doing. the moderator says the cannot leave it to regular americans to ask questions they are not up to it. ashley: what? >> it is great to have questions from citizens. there expert questionnaires or following up. >> at the end of the day people who live in through 8% unemployment with the economy cannot grow 2%. i am sure. i of faith the american public will come up with intelligent questions and capable of smart follow-up regardless of what the media says. ashley: what is the criteria ? >> we're being picked by somebody else.

not the candidates. who get sick or gets to ask? we will see tonight. also candy can pick the questions and did what order. she made to follow up. the whole idea the american voters cannot ask a regular question is insulting. we will do more on this. we will talk about this. [laughter] ashley: in the will list report tonight we also have the debate coverage. >> neil cavuto at the top of the show, grover norquist and taxes. join us leading right into the debate. ashley: she is smiling vichy is fired up.

[laughter] stay on fox business for complete coverage 8:00 p.m. eastern posted by neil cavuto. lori: chairman bernanke was defending the kiwi three after brazil said it triggered a currency war. axel merck is our special guest. time to look at the treasury's. of big sell off. the yield is up five basis points. also with the 30 year. we will be right back. [ male announcer ] how do you trade?

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list. >> i am robert gray. fox business brief. fired by around a strong earnings from goldman sachs, coca-cola and major companies the dow was up 113.. nfl owners unanimously approved the $1 billion sale of the cleveland browns. jimmy says he wants to bring winning football back to cleveland. they have only been there once since 1999. home builder confidence rose to the highest level since june 2006. the national association of

homebuilders rose at a reading of 41 boosted by a surge of traffic from second home buyers. this is the latest from fox business, giving you the power to prosper.

>> breaking news on citi group we're here with the latest on citi group. >> vikram pandit has been telling friends on wall street he has been pressured by the board it has spent pressuring him for months about his performance and things that went on. today was a surprise to the market since they just announced earnings but not

do vikram pandit he knew he was on thin ice. the board has been increasingly uncomfortable regarding the stress test, smith barney it was valued at a price on their books higher than the independent arbiter. they had to take a write-down. i did here today the sheila bair book did not help. i am going through that book. my producer is. stable talk about that at 3:00. that was another cut death by 1,000 cuts vikram pandit is out today publicly stating he was not fired. he decided to resign.

sources are telling us he was host -- ousted the board lost confidence and alerted his days should be numbered. he was given a chance to resign. last night citigroup alerted regulators he was done. does that mean he was fired? that was a legal term. i think he is ousted. lori: this is a new board? can you pinpoint the time being? >> springtime i said said, wright? he has been pressured. it corresponds to o'neill coming in. vikram pandit lost the support of bob rubin he resigned 2009.

maybe 2010. that was a big blow. longtime goldman sacks executive he had a weird title like chairmen of the executive committee but he brought one vikram pandit to be the ceo. when sheila bair wanted him out, she was getting pushed back from the goldman board at the behest of bob rubin. ashley: there is a conference call set to add 4:30 p.m. with the new ceo. what do you expect to hear? >> who knows? i see them coming out to say vikram pandit decided to resign.

it is a nice way to say we forced him out. behind-the-scenes nobody wants to leave as a major ceo. you either leave as of blaze of glory like john mack. [laughter] the was a republic of our i am retiring. ashley: walk off into the sunset. lori: loans are higher, capital's are higher there on the right trajectory. is there a shift in strategy? >> when you plug goals in the dike with the bad investments, it was horribly run with sandy weill and then chuck prince. the investment -- investing of toxic assets overlap.

and the ceo played some responsibility as well. if you stop the bleeding comment if you leave it alone, it sits there and earns money. lori: net corvette ran the bad bank where they shifted the core assets. ashley: they did not do it fast enough. lori: the new ceo reenact he was a fixer. >> they were under pressure to do the good bank/bad bank ashley: good stuff. sheila bair will join liz claman at the top of the hour. so much to talk about. lori: we will make a hard left turn. defending the central bank monetary easing after he was criticized sparking of global currency war.

joining me now is axel merck from merck investments. a great friend of the show. we talk about the impact of quantitative easing on the domestic economy but what is the impact? the emerging markets are critical calling him selfish for debasing the dollar urging increase like the markets of brazil and china? >> everybody is selfish. called the national interest. i think it is wrong. qe3 is a real war because real money is printed. that cause is inflationary issues. bernanke argues that is your problem. if you allow your currency to appreciate we have to

continue what we will be doing. then think how will other people react? with the vietnamese tried to compete with that or the chinese are able to take a step back and maybe the best thing is to allow the currency to depreciate. lori: you are on the record critical upper nike's policies. what does that mean for the rest of the world? the stop bank buying sprint at 75%. it all have trouble with the exports the only thing they can do to be competitive globally. >> it helps to boost earnings but medium-term it erodes competitiveness.

our purchasing power is eroded. the big loser of the recovery those who save. the dollar does not get you anywhere. you have to diversify. some people do that with the stock market but we advocate why don't you do what the chinese do? then tried to stay ahead of the game because not everybody prance the same money. lori: we have breaking news with citi group. come back soon. americans pay more for guest how does that impact holiday spending? benmosche will talk next. ashley: and the dow is up

113 points. we will be back.

lori: consumer prices lot -- rose last month but inflation remained in check. what does this mean heading into the holiday spending season? i was just talking to ax the

mark but i did not have time to ask about the cpi number. we are okay on inflation negative energy. >> right. we had three straight months course cpi increased only 1% up 2 percent over the past year. that is what the fed is looking for. there are no pricing pressures in the supply chain. i would expect it to remain moderate. lori: so i can spend as much as i can spend for the shopping season? >> we expect modest gains. income growth is soft. we are adding jobs that wage growth this week. it is definitely the case with modest price gains and

given that i expect consumers to spend a little more. lori: the number released yesterday was some encouraging it is a sign the economy may be gaining momentum. what does it mean? where does the economy go from here? >> we did add of good retail sales numbers. but areas related to housing doing well. with a turnaround in the housing market. consumers are getting more confident. if the economy continues to improve we will see consumers spend a little more getting into that positive cycle then you have

a stronger job growth. we're not quite there yet to 21 everybody is a little hesitant. the worst is over. thank you for sharing your thank you for sharing your analysis.uncer ] this is steve. they should be commended joining liz claman and "countdown to the closing bell" is next.

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>> good afternoon. i am liz claman last hour of trading "countdown to the closing bell." which is