>> this is hype hypocrisy. >> excuse me michael bloomberg, we are not as peasants working for you. you work for us. charles: there was a key sentence in there. the increase of the payroll tax is undoubtedly lowering consumer stuart: okay. charles: this number that came out was the lowest number since november alone.

connell: the president in las vegas. he is talking immigration. republicans mean time looking for direction and also looking for a new leader. we will hear why it may not be any of the usual suspects. the uprising in egypt is getting worse as well. that could be trouble for u.s. investors. the governor of texas wants to give money back. unused tax money. rick perry. talking about all those issues, plus housing with robert shiller and much more on "markets now".

nicole: we have you covered here on the fox business network. we are taking a look at a market pushing the five-year highs. getting closer and closer to dow 14,000. majority of the traders think we will hit that they share. the question is whether or not we take a breather on the way up there. the nasdaq composite pulling back a little bit. the majority of dow components are in the green. it is pretty good here. 108 million to 85 million. despite the fact that you have consumer confidence numbers showing that consumers are worried about payroll taxes and not coming out of their paychecks. they are not feeling that confident. quickly, let's take a look out for. it was the european operation that was a big problem for ford. it has deteriorated.

it is down 5.5%. that is a serious pullback. stuart: yes it is. thank you so much. the housing number was pretty good beard there is also trouble over there that may shape up our markets over here. the crisis could cause a lot of problems. mohammed morsi does not represent the goals of the arab why, brian, do the problems in egypt or other places overseas rightly translate for trouble in our markets? >> well, one thing is it definitely affects sentiment.

whenever you have conflict in the middle east, you tend to see it to the client as well. some of it stems from the fear trade. but it's also not forget oil. we could see prices go back up. connell: we will be talking later this hour about the oil that should be or could be coming down the keystone pipeline. i understand that is part of it. i am skeptical that people would not be much more worried about paychecks being smaller, maybe even more than they imagined with the payroll tax going up. they do not really care so much about what is happening overseas, but you think they do call or should. >> i think that depends on how widespread the conflict gets.

if it does not actually disrupt any of the oil supply, and i do not think investors will really notice it much in the markets. if we have a close down of a canal, if we could be energy independent, i do not think investors with care as much. investors will continue to notice and i think they will continue to be on the edge of their seats. connell: give me a stock market outlook right now. the housing figures that bob schiller will talk to us about later this hour that looks like things are getting better there. those are the stock market continued to advance or is now the time when we may see a pullback? >> we may see a pullback or a pause. i have not seen a lot of upside in the short term.

long term, i think the s&p will be closer to 1600. some of the volatility to enter into stocks. i do think we may see a little bit of a pullback as the situation in the middle east evolves. we will also beginning the gdp numbers tomorrow. we will the feeling some of the rut of this. also uncertainty in washington with the sequester. connell: we take 1600 from here. we will see. we obviously have you on a lot and we will check back. thank you. bad news for baby boomers. a new survey out think 74% think it will have to rely heavily on social security and retirement. the average social security check is a little over $1000 a month. many people are delaying their retirement.

60% of the workforce is now over the age of 65. in texas, already one of the lowest tax rate in the country, now the governor, rick perry, wants to go even further. he will propose that the state return tax money to citizens that it collects, but does not spend. the people have been told in texas and they are in favor of this by a wide majority. back to the big national political story of the day which is immigration. the president out in las vegas with his speech coming from there. this has become much more about republican politics, internal republican politics. is the party changing? marco rubio made an appearance last hour. >> the president sees this as a

possibility to move this situation to the left. i think that speaks poorly for the entire outcome of this endeavor. >> we go to a buyer in new york now. he is in d.c. how about the republican party? he is thought to be one of the up-and-coming stars. is it really changing? >> not yet. we have a couple of opportunities to hear them talk about the state of the republican party and i was not a plot of talk about fundamental change. last week they met in charlotte to observe changes to the party. they formed something they called the "autopsy committee." they decided it did not sound so great so they called it the "rose and opportunity project." the re-examination of

immigration, you will not get that from the rnc right now. connell: you wrote about it recently in her column. you went back and repaired the republican party today to the democratic party in 1988 leading up to 1992. is there a republican version of bill clinton out there? i am sure after 88 people remember that infamous speech that he did at the convention where he went too long. is there anybody that you see out there that you would compare to bill clinton? >> well, the thing is, there could be. we just do not know. the take away from the meeting in charlotte is the party themselves cannot make these changes. they need a leader to take them to those changes. viewed out of touch, out of

touch with the public. clinton came along and changed that. they understand it takes a leader. they look at the field that they have. they have marco rubio, chris christie, they do not know if any one of those will be the one. connell: the bipartisan group of senators yesterday. the way the republican party is handling this so far, chose politically, does it make sense to you? >> they are divided over it. that is all there is to it. senator jeff sessions was on the floor of the senate expressing real skepticism about this plan. leadership sources were saying, look, we will not sign onto this thing. we do not know where it is going. republicans are actually divided on this. no unity is there.

connell: always great to have you on. we will talk more about this. the president takes his turn. the former mississippi governor will join us. that is coming up a little bit later on this hour. then, some are positive news on the housing front. bob schiller will join us. he is not always optimistic, by the way. we will see how he weighs in today. 97.53 on the oil price. oil is up, stocks are up, consumer confidence is not great, but the markets keep on going. we'll be right back. ♪ (announcer) scottrade knows our clients trade

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♪ connell: all right. time to make money with charles

payne. the stock market continues to advance. jaws will have to stock pick and a second. despite some pretty rough consumer confidence figures. charles: the consumer confidence came in, the headline number one along with its 2011. connell: why are we selling off? charles: i am not sure. they came out and said, listen, a lot of this has to do with that payroll tax. people are just getting adjusted to this. this has really serious implications. if people stop shopping or -- listen, we have an economy where the gdp number comes out tomorrow that is just short of chugging along. this is really serious stuff. connell: bob schiller later on housing because that is the other side of it. give us a stock pick today.

charles: radioshack. i said i would not chuckle. nevertheless, you know what, you remember alexander's -- went from $78 to $12. they do have to reorganize, but they stop selling inexpensive close and all of a sudden there real estate was worth a lot. the volume has been astronomical. it is extraordinarily high risk. something may be going on there. connell: we will take your word for it. charles, thank you. nicole petallides joined as every 15 minutes with stocks now. nicole: i am watching the number one winner on the s&p 500 today. they are pushing near the

five-year highs. they are confirming that they are looking to seek five seats on the board there. if they get on there, they will be likely to spin off assets. sell off the retail operation. there are some people who speculate that the company should be split into three. yesterday we saw hess as a mover also. let's talk about what we are seeing with research in motion. tomorrow will be the day that the blackberry ten comes out. it is down 10% right now. it has had some run-up. of over 100% in the last three months. tomorrow is the day, connell. connell: the new library. well, we will see.

this report on home prices. a pretty good sign here. you always wonder what bob schiller will have to say. he will join us live coming up to see what is really going on in the housing market. it has been a week since nebraska governor gave a thumbs-up to a new plan with the keystone pipeline. we are still waiting to hear from the white house. first, more markets on" markets now". ♪ [ woman ] if you have the audacity to believe

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professors have decided president mohammad morici -- high pollution levels and thick smog is now surrounding beijing. authorities are now warning children and adults to stay indoors. it contains particles small enough to penetrate the lungs. relief could arrived with snow and rain tomorrow. could a chicken wing shortage collide with super bowl weekend? prices are up 14% from last year. blame the drought for that. farmers raised fewer chickens in 2012. those are your headlines. let's go back to connell. connell: thank you, heather. positive housing numbers out this morning. i have to say, this is pretty

good. the tenth month in a row of increases. he could tell us to call down a little bit or that we could have turned a corner in housing. one should stay calm. >> i do not think that the news is that exciting. home prices have been falling mostly. maybe we are back to some increases, but i do not think that it is a sign of anything exciting. connell: why not push the mark some people have, in all seriousness, started to sound much more optimistic than they were maybe six months ago. i have been reading some of your recent comments and you are not, and we joke around with you about being pessimistic, which you are not, by the way, you are

cautious still. you are saying be careful. why isn't this the big rebound that we have been waiting for? >> it is. i think maybe in phoenix or maybe in san francisco. what was really unusual about the recent boom is that it was nationwide. that is very unusual. one thing we have to guard ourselves against is expecting recent history to just repeat itself. the last really big housing boom that we have seen in this country, before the 21st century build, was in the 1940s. they just are not to be expected. i think home prices could go up. this seems that the cme is predicting it to go up.

that is plausible. it is not to get excited about. connell: the stock market, just to pointed out, we are close to 13,000. the consumer confidence is her. payroll taxes went up. maybe they are not as confident as they thought. >> the problem is, we have been to the biggest financial crisis since the great depression. history shows that crises like that, leave lasting scars. it is like the flu, you think you are ready to go back to work and several weeks later, you realize you still do not feel right. the idea that we will be off to the races again just does not

sound right. connell: we are a few years out from there. the worst of it was september september 2008. we are a few years out. is it a few more years you are talking about? >> the critical thing is that there is no objective way to forecast. it depends on peoples attitudes. there is a recent paper by gabriel, stuart gabriel, that shows that the home rate is not explained by demographic or economic factors. i think it is because they were burned in this crisis. it just is not coming back. it may take another generation before we get there real enthusiasm back. connell: robert shiller, as always, your insights are appreciated.

it may be a long road ahead for us. the hot topic these days is all this talk about creating a path to citizenship for illegal immigrants. it looks like republicans are warming up these ideas. we will talk about some of these ideas with the former mississippi governor. the keystone project still waiting white house approval. we will check in on that and oil prices and everything else. here are some of the wonders that we are seeing today on the s&p 500. ♪ ♪

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connell: we are back here on markets now. the republicans seem more open than ever on immigration reform. we will dig into the economic part of all of this. sitting on the keystone pipeline. we will have more on that coming up as well. following eric schmidt, google ads north korea to google maps. how about that. let's go back to nicole petallides. pfizer shares are on the move. nicole: that is right. this is a stock that everyone has been focused on. they have faced intense generic competition for lipitor. they have seen sales drop in that particular area.

pfizer up 3.2% right now. they have a pending sales of a nutrition unit. that is something certainly giving them a boost. they're pain drugs, they also have a sizable market for river toward arthritis. this is why they are doing well. buybacks have been very shareholder friendly over 52 weeks. and spending cuts is something else that pfizer has been working on. how is the dow doing right now. of about 52 points right now. hello, we are at the height of the day. 13,944. connell: getting close. thank you. president obama getting set to unveil his plan for immigration

reform. he will have that later in the day from las vegas. haley barbour joins us now. the politics of this have been really talked about a lot. in fact, we talked about it earlier this hour. let me start with the economics of immigration reform. a number of ceos have told us that they would like to see this in the perspective of, hey, let's get some highly skilled immigrants in here that will help the economy. that will help us to get us turned around. your views are what? >> there is no question if we follow what is good economic policy for america we will have immigration reform. it will allow more skilled and unskilled foreign workers to come into the united states. we need the labor. if you look at the labor participation rate in the united states, it is almost at a record low for the percentage of adults

who are actually working or trying to get a job. only about 58%. if you are going to grow your economy, you have to have enough workers and we do not right now. connell: we are behind on this, aren't we? i was doing a story a couple years ago on the european financial crisis when they were really at the worst of it and talking to some college student that the time in dublin, ireland. the economy is horrible there. they said they would love to come over to the united states call but because with the immigration laws, it is easier for us to go to canada or australia. we have not had the incentives in place to attract those kind of workers for whatever reason. >> well, you could go back to george bush who in 2005 tried very hard to push through an immigration reform bill. it is interesting that john

mccain who was one of the senators in a bipartisan group yesterday along with senator kennedy sponsor that bill back in the bush administration. you are right, we are late. we needed to be doing as previously. if we did, we would have a stronger economy, a faster growing economy. >> have you changed your mind on any components of it? when i was thinking about running for president, i said publicly that we are in a global battle for capital and labor and that we have got to e-mail ourselves. that means more immigrants. also, if you look at my state, mississippi, our number one agricultural product is poultry. everyone in there speak spanish.

if you look at california, it has reported 50-70% of the farmworkers in california are not here legally. now, from many low skilled jobs, many high skill jobs, we have a great need here. i do understand my friends who say we should not reward people for breaking the law. if somebody came here illegally, we should not reward them. connell: i want to ask you about the line in the sand. this all sounds, we have had a good conversation and the last couple minutes. we have heard from people like marco rubio, john mccain and lindsey graham. where should they drop a line in the sand and not be willing to go past that? >> if you ask alan simpson, he will tell you the failure was a did that, after passing the

bill, control the border even though they had promised everybody that was their number one priority to control the border. that made illegal immigration a magnet. people thought maybe if i can get into the u.s. illegally, they will do this again. if we are going to have a form of legalization, then, it is critical that in the process we get control of the border which we can do. it is not easy, it will not be perfect, but we can do that. one of the things i liked about this bipartisan bill is they talked about what to do about the people who come here legally on the visa, but when the visa expires they do not leave. thirty or 40% did not speak in, they came on a student or work visa. this bill, i think, is a good start. right now, it is just

principles. there is a lot of work to be done in both houses. we will see what the president proposes today. hopefully, it will be something reasonable. connell: thank you for coming on. help on the way for hurricane sandy victims. more than $50 billion in relief past yesterday. most of the debris from sandy into going to landfills. some end up being recycled and being we use. we have that story today. >> we are at one of two temporary downside in new york that is still processing debris from hurricane sandy. rolling in here with a parade of sanitation trucks dumping it on that pile. they are separating some of that debris and then putting it into trucks to be brought to landfills. if you saw this back in november, it was huge. it dramatically larger amount of

debris. they sift through it for ward, recyclable metal, they segregate out other materials including white goods. refrigerators, water heaters and appliances. >> for environmental reasons, it is very important to pull out the items such as refrigerators, water heaters, things that are not biodegradable that in the future it could cause environment issues. >> they had 400 trucks a day coming in here. they still have about 40 trucks a day bringing in more debris. connell: when they get some of this debris being used? spec they get a lot of wood. there is enough would to fill a football field piled as high or higher than the goalpost.

some of that, and a lot of that debris is being incinerated. a lot of it is being broken down into mulch. some of it is being made available to ordinary citizens. in some cases, one man brought his own sawmill out there. >> and manufacturing a product that could be used again and people can say this came from sandy, the storm, that damaged and affected so many people. there is a positive that can come out of it. >> a lot has been accomplished. so much is still left to be done, though. connell: thank you very much. we will shift gears and talk about oil prices here in a few minutes. we will get to this whole keystone pipeline issue. first, we told you about google's eric schmidt and his journey over to north korea.

now, you can see, i guess, the results of that trip. you can see it on google maps. a look at treasury yields today. 2% yesterday on the ten year and just below that today. ♪ [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science.

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one line, infinite possibilities. ♪ >> i am lori rothman with their fox business brief. right willard is leaving the obama administration. ray lahood is leaving the obama administration. he will be the sixth department had of 15 to leave as president obama begins his second term. the online retailer expected to -- the federal reserve began its latest two-day policy meeting. expectations are that they will stick with the plan until the unemployment rate dips below 6.5%. that could take until the end of 2015. that is the latest from the fox

business network. giving you the power to prosper. ♪

connell: talk about it elegy. we will get into google and north korea here in a second. what is the deal here, shibani joshi? shibani: the reinvention of microsoft office. this is the biggest profit driver for the company. a consumer version was officially introduced today. it is more of a cloud -based service. you get this available for up to five devices. lots of storage. even some skype minutes for $99.

this is the first time it has been directly available for consumers. all eyes are on this. again, 6 billion in sales in the last quarter. it needs this audit to gain momentum. we will be talking about office and talking to the companies technology celebrity spokesperson. stay tuned for that. connell: we will, indeed. shibani thank you. google is updating its mapping system with maps of north korea. hospitals, subways that even gray zones. google spokesman says there is no connection at all between eric schmidt and his recent visit to north korea in these new maps.

all right, we will talk about oil here in a second. let's go to nicole once again for stocks now. nicole: let's take a look at the movers. i do not know if you like snowmobiles or motorcycles. let's start off with harley davidson. the reason why it managed to jump is they have a new computer system to pinpoint the demand what type of bikes that people really want. snowmobile sales were weak. a cautious outlook. research in motion, it is do or die time tomorrow. ford f series did well. the outlook for europe is weak. back to you. connell: it has been a week now since nebraska governor david heideman -- ezra is joining us

now. he has been on with us a number of times. they better get moving on this or what? >> the official objection by the obama administration is that the roots and nebraska was questionable. the teamsters union there, they can hardly get to work. obama really does not have any excuse. this is not a question whether or not american should use oil. the question is which oil well americans this. we are importing about $800,000 worth of oil a day. this would directly displace that oil bringing down canadian oil and oil from north dakota. it is a no-brainer. connell: that is your angle on this. the ethical side of this. i think it is interesting.

you have criteria when you look at it to say, all right, what is an ethical move in the oil world . that is what we will come back to on keystone. the others are peace, treatment of workers and human rights. >> actually, all four of these come to play. environmental responsibility has far higher environmental standards. a free press to group denies the conduct of companies and accompanied themselves are publicly traded. compare that to dictator oil. it is a government run company they do not have a free press. if there is an oil spill, the media will not talk about it. even if they do, they will not talk about it. environmental responsibility, you bet. we use our oil resources for peaceful purposes.

treatment of workers, you work and make 150 grand a year as a welder. finally, human rights. in many opec countries like saudia arabia and iran, women are not even allowed to vote. they hang gays by the thousand. they stone people to death. it is just a different ethical character. i think it should be built for economic reasons. to my liberal friends, i would say, live up to your values. connell: ezra, thank you. we will have you on again. more people ready to place new beds in the market. the old safe haven taking a hit today. sandra smith talking gold.

first, some winners today on the nasdaq. ♪ all stations come over to mission a for a final go. no go call. this is for real this time. we are on step seven point two one two. we have entered our two minute hold. cabin venting has been inhibited. copy that. sys two, verify and lock. command is locked. flight computer state has entered auto idyll.

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connell: some of wall street's biggest names not so hot on gold anymore. sandra smith has the trait today. sandra: gold actually bouncing back a little bit today. moving towards $1663 an ounce. it has been on a serious the client. more than two and a half% of its

value is down on the week. it is down on the month. it is down on the year. the trend is certainly to the downside. now, goldman sachs has come out and said they expect gold to peak this year after rising for 12 straight years. they expect to see improving economy. the precious metal etf, the holdings in the etf holding for the biggest drop in more than a year. by the way, gold stocks,, have been underperforming the rise we have seen in gold the last couple of years, they are big today.

certainly, a lot of stock investors are seeing the recent drop. connell: they look good. sandra, thank you very much. the stock market in general has been kind of an interesting day. in the meantime, do not fear automation taking over george. it will be dennis and cheryl in the next hour. robots are good for the economy. some tips on how you can make some money. ♪ [ male announcer ] where do you turn for legal matters?

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the senate has come up with its own bipartisan approach. who will business support? will no corporate chief says no matter the plan it is time to get this done. dennis: the fear robots and automation taking of your job with an expert says it is good for the economy and has tips how you can make money on that coming away. top of the our stocks every 15 minutes, nicole petallides, on the floor of the stock exchange. stocks on the rise. nicole: not bad at all. 56 points on the dow jones industrials, 55 points from dow 14,000. the dow 10,000, we are the dow 14,000, getting closer and closer. traders i speak with feel we had a great january and that is often 83% of the time since 1950, demonstrates what we will see for the full year. if that holds true we have a winning year on wall street. the dow 13,936, not far off of the highs earlier today and drug

stocks doing well, pfizer has been a leader. ford motor coming out with numbers, doing well here on north america, the united states doing well but talking about downbeat outlook for europe. europe is a problem for ford and we see it down 5.9% right now. obviously weakness abroad is hurting ford's outlook going forward but their strength is in the united states. back to you. dennis: just ahead we are talking all things ford with chief financial officer bob checks. cheryl: president obama getting set to unveil his own plan for immigration reform this afternoon and a big part of the plan may keep high skilled workers rider in the u.s.. senator marco rubio talked about that last night with lou dobbs. here is what he said. >> in the twenty-first century we cannot have an immigration system that is only 6% of the people come you do so based on

skill. i am a supporter of family based immigration and that is how my parents came but in the twenty-first century our immigration system has to be more skills based than it is right now. cheryl: one company that says it cannot survive without educated immigrant workers is internet shopping site overstock.com. jonathan johnson is the president and joins me now. you have a lot of powerful backers, and citizenship in this country. there seems to be resistance, these jobs should go to americans. how do you respond to that? >> these jobs need filling, and whether it is americans or skill workers we need more workers and one of the real problems is bringing immigrants into colleges and universities, training them and don't let them stay. and create competition. >> 40% of fortune 500 companies

founded by immigrants, on the last six to eight words, a lot of backlash against illegal immigration. how do you balance the two? we are not talking skilled workers but the labor force in this country, people picking fruit in california, farmers looking for those type of skilled labour as well. a different skill than you need. how do you balance that and make it fair so you don't have an influx of too many influence into the united states? >> what we need is a system that works and allows businesses hire the workers they need. the current immigration system is so broken it is like a business trying to operate without computers. it is arcane and doesn't work boat -- whether it is skilled workers, these are jobs that need filling and if we don't have americans that are willing to do that work or not qualified to do that work, we need to find a way to bring them here. cheryl: what are the skills you

need? i will take the big leap, say it is engineering and itn nuclear physicists, what type of skill sets are you not being able to fill? what jobs cannot fill with an american worker? >> jobs we have a hard time filling our software engineers, statisticians and mathematicians, these are the things, we are trying to fill. cheryl: are you doing recruitment efforts? are you going to india? are you going to china looking for these workers? if you sponsored these workers, under current law you can't have them as an employee. where is the breakdown? >> we are looking for people already in the united states, students that are graduating from the university or graduate programs, these are folks who by their very actions show they are

innovative, a entrepreneurs, left their homeland, to better themselves, those are the people we have working for us. >> you understand washington is flawed and the debate, whether it is bipartisan or not will come down to where do we draw the line or how many workers, how many citizenship, pieces of paper do we hand out before the limit is reached, when you have unemployment at 7% or 8% in this country? >> that will be part of the discussion. important to know, and for every one of these workers we bring in that they create more than two, almost three jobs for americans. hiring people who are innovative and creating new technologies to allow businesses to go, hire

more american workers. is not a zero some game, it is a game where if we bring people in the economy grows in everyone's benefit. cheryl: the u.s. chamber, a bipartisan bill coming out, the president has a plan, there might be a debate but certainly something seems to be happening here, the president of overstock, thank you. >> thank you. dennis: stocks are moving to their highest levels ever but our next guest says a full back should be here, the ceo of planned financial services and charlie smith of fort pitt capital blaine us now. you say technical show that the market is overbought, make your case. >> a big sell-off coming in november and december last year based on the election and anticipation of increased capital gains. a lot of individuals, investors selling their positions and finding the right time to re-enter the market which based

on technical data shows that things are being overbought this january. dennis: you think things are not looking great but for different reasons. tell us that. >> fundamentally we are worried the prices are going to level off. we think natural buyers for housing are not there. we don't have a move a market, most of the buying in the housing market this year is 4 in money and institutional investing. we are having a hard time figuring out where the momentum will come from and housing is one of our issues. >> both of you gentlemen are stealing defeat from the jaws of victory. how about a little bit of hope here. we have been worried for two years about european meltdown, a china slowed down and about a government in the u.s. breakdown. all three big blue they men seen gone and no longer a problem.

>> really sustaining devaluation in the marketplace that company evaluations if you look at the ratios are around 13 and under the historical average of 16. stocks attractive to buy from a value standpoint. >> let's hear you. what to you say? >> if you get tax going and there are signs that it is happening, crisis continues to rise and a bank lending gets going again. i could be more bullish, we get the durable-goods numbers yesterday and show that year over year durable-goods numbers are basically flat, it is all about tax, bank lending and we need to see house prices continue to rise for us to get more bullish. >> we're seeing good numbers overall and didn't durable-goods come yesterday with a good number, did we have a nice jump fueled by defense spending? >> defense spending we believe was a budget plus at the end of the year, if you don't spend it

you lose it and those numbers jump around a lot. we had a big falloff in corporate tax in the second half of last year. has gone a little better in the fourth quarter but we're not sure corporate america is back investing again. is that more bullish? >> one problem with financial advisers, you never get in as much trouble with upside as you did, that i am mad at you and your advice can be more timid. when you say we are set for a sell-off, you are not telling me in my 401(k) i should sell stocks but stay in the stock market for the long-term? >> our approach is always to be diversified and the plan in your long-term planning that you could see a slight pullback, normally advising clients looking at areas where we provide all the more upside and staying away from areas we feel will prevent some downside when you look at events, defensive stocks, those areas we feel and even in a modest growing economy

will underperform. dennis: you say the s&p 500 closes out around 1500, it is at 1505 right now. would you like to bet dinner? the s&p closes higher than 1505 by year end. >> 1506. certainly reasonable. >> thanks for that small dollop of home. appreciate you being here. good day. cheryl: bad news for baby boomers and the nation's debt situation. 74% of baby boomers born just after world war ii will have to rely on social security and retirement. in case you are wondering the average social security check is the one thousand thirty two dollars a month, more and more people are delaying their retirement, 16% of the work force is over, up from 12% in 1992. dennis: looks like there's no killing the twinkie. bankrupt hostess brands nearing the deal to sell its iconic

brands and private equity firms apollo, global management and mitropoulos, priced at more than $400 million according to our partners at the journal, full details could be disclosed this afternoon. stalking horses did could be topped by other suitors. cheryl: the positive data continues to pour in. health prices are on the rise, we have a guest coming up who says pittman requirements in washington may kill the recovery. dennis: apple's stock feeling islam as the company unveils a new high end high price ipad. cheryl: the best profit in a decade but stock is trading lower. one on one with ceo bob shanks coming. dennis: as we do every day at this time let's look at oil up too high. don't like it.

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dennis: 15 past the hour coming up and the bulls are running. stocks every quarter hour and we have all over. >> team coverage now, sandra smith standing by watching gold, charles payne showing us how you can make money if you'll listen to his petroleum played the first to nicole petallides on the stock exchange, the dow moves closer to the all-time high but hitting a bit of resistance. >> not a surprise, traders talking about the fact the we have run up so far so fast, we keep breaking apart five year high, it is okay to take a little breather, that is what the sentiment is on wall street, we continue to the upside to pull back and sit around a little bit is okay too. as far as dallas, names like pfizer, at&t, some of the best performers, up rear 60 points

away from dow 14,000 and since 1950, 83% of the time as the is indeed as in january as director you saw is over 5% this month. let's go to chicago. >> with the constant rally we have seen in the stock market lot of folks are not seeing the need to own things like gold in their portfolios so bold, bouncing back a few bucks to date has been on a serious decline, down on the week and lost $40 over the past four trading sessions and down the year and credit suisse and goldman sachs coming out expecting gold prices to peak this year because they don't see investors seeking a safe-haven investment. that is having an effect on demand, the holdings are dropping the most in over a year so we're seeing a decrease overall investment sentiment

regarding gold, gold gts and gold stocks. cheryl: thank you very much. time to make money with charles payne. if only you had listened to him in june. charles: it is a 100%, marathon looked extraordinarily cheap. p/e ratio i don't even like to talk about evaluation metrics but they are chasing, give comfort. 1 third sales, here is the thing, bolero, one of their rivals posted a number out of this world, $34.7 billion, they beat estimates by $0.54, dollar and $0.82, marathon, all these houses trading at new 52 week highs. the stock is up more than 100% and will probably move higher and the metric doesn't explain, the ratio, price-earnings and

growth, what you pay for growth ought to be 1.0 less at zero.6 so that is surprisingly aggressive. and often to your point sometimes you will see a company with a high p-e ratio but small peg ratio which shows you is not that expensive given al is growing and earnings on the bottom. cheryl: charles payne, june 29th, that was the call. marker calendar. thanks. dennis: the appraising in egypt intensified. we will tell you why investors should care. cheryl: ford best quarterly profit, stocks under pressure, nothing to do with the u.s.. on will go one on one next with bob shanks. dennis: par world currencies staring against the u.s. dollar? the dollar's weaker. twins. i didn't see them coming.

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>> 22 minutes past the hour your fox news minute. transportation secretary ray lahood announcing he is leaving the obama administration. he spent last four years pushing greater safety in highways and in the air and will stay on

until his successor is chosen and confirm. he will be the sixth department had to leave as president obama begins his second term. egypt army chief of staff says the collapse of the state is possible. morsi five days of political violence and riots 60 are now dead. protestors have to by president mohammad morsi's to emerge in the point or -- declaration in cairo and three cities. high pollution levels and fog surrounding beijing. authorities warning children and older adults to stay indoors. toxic air contains particles small enough to penetrate lungs. poor visibility is forcing flight cancellations. police could arrive with no end rain forecast for tomorrow. those in your headlines. let head back to cheryl. cheryl: earnings season is in full swing and american auto giant ford has a warning, posting its highest fourth

quarter pre-tax profit in more than a decade, shares of the carmaker are down big on ford's lackluster european performance. also a look ahead at 2014 for chief financial officer bob shanks. good to have you here. we talk about europe here and $2 billion loss more than what analysts were expecting. you are saying recession in europe. how do you turnaround story overseas? >> i thought you might ask about europe. we had a loss of $1 billion in 2012, consistent with guidance that we had out there. we fought 13 when we gave -- announced a restructuring plan, we fought 13 would be the same but looks like it will be slightly worse than $2 billion and that is below rear end industry. the economic environment is deteriorating and that is being reflected in industry sales and that will have some adverse

effects in 2013. cheryl: the north american story is strong and stock reacts today, the biggest drop in stocks in august, 2011 on a percentage basis because of the concern about europe but $773 million into michigan. $1.6 billion in the fourth quarter in north america so the north american story, are the street missing that today do you think? >> i think what is being missed perhaps instead of focus on the total company, we have challenges in europe and we will restructure europe. we're on track and will contribute positively by mid decade but the company $8 billion and we generated positive operating cash flow of $3.4 billion. guiding next year to a result about the same in terms of profitability and strong cash flow. that demonstrate the progress power plant is making and 2013 will be a strong year for this company. cheryl: the asian automakers,

toyota see an upswing because the currency market and what japan just did with their monetary policy plus for them, going to be a difficult story for u.s. automakers. how do you fight back against that? is it going to washington? what do you do? >> we have to work with our government officials about manipulation of currency whether it is japan or any other currency, any other market. what we have to do as a company's key delivering our plan in terms of fabulous products, great value to consumers, great quality and if we do that, manage production, we will be flying which is what we have seen in the united states over the last several years and will see once again in 2013. cheryl: the f series has been a strong vehicle for all of you. you were at the detroit auto show talking about capacity buildup for north america in 2013. did you up your percentage for

the north american built? >> we are expecting that we will see stronger segmentation in 2013, the housing recovery, exploration into oil and so forth, construction, probably will give us a boost. we are entering a year with incremental 400,000 units of capacity across a whole system, not just f-series. that will help us gross here in 2013 which is one of the contributors to the strong growth we expect to see in results in the u.s. next year. cheryl: you and alan malawi have taken the ford 1 approach and the company never filed for bankruptcy or the bailout and we will be watching. thank you for being here. good to see you. keep an eye on that stock. just as the housing recovery begins in earnest, a guest says it might be killed by new rules requiring 10% down payment. dennis: listen up, jobs are a

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all-time high. we are off about a half percent. the tech heavy nasdaq pulling back by about six points. let's take a look at apple. in other day, another headline. apple will sell a new version of its ipad tablet computer. more storage, it will have 128 gigabytes of storage. that is twice the capacity of the existing model. it will also have a new high resolution retina display. it will look better when you are looking at it. it will be available on february february 5. that is what you have for apple. cheryl: nicole, thank you very much. a 10% down payment could be and the offering for first-time homebuyers. the ability to lead is still a hurdle. >> we have been to the biggest

financial crisis since the great depression. history shows that crisis like that leave lasting scars. it is like the flu. you feel like you are over at and ready to go back to work and weeks later you still do not feel quite right. cheryl: he is the cofounder and managing partner of mortgage-backed solutions. i want to get your take on this. robert makes a good point that it is up and down and up and down. this could really hurt a lot of the positivity that we have had. >> that is so true, cheryl. we are talking about the fha program. what do they have to do for a solid first home buyer? you look at the fha insurance fund and not is okay and it is literally just okay. they have had to replenish that

fund already. they are looking at, what do we have to do. is it decreasing fica scores? is it the debt to income ratio pusher mark the reality is, all of those adjustments that they make will impact the first-time home buyer. that is what we really want back in this market. cheryl: if you look at the data, and i know you have, you are finally seeing the move of the kids, the only 20 somethings, moving out and taking advantage. the banks do seem to be loosening up just a little bit. they do seem more ready to lend. when it's that kind of balance out the 10% issue? >> well, we definitely need the banks lending and loosening up. they overreacted and now they are coming back.

they just announce a new qualified mortgage role. it defines what we can do. it is a narrower definition that what we have had before. it includes all fannie mae, freddie mac, fha lending. it is not allowing some of the broader programs come back in a way that will probably be needed to bring full on liquidity to finance. cheryl: what is positive that could be happening? it looks like inventories are hitting lows. doesn't that tell you that prices and sales numbers will trend higher this year with rates at three-point, you know, 3.25%. free money. >> there is no question that these lower interest rates are spurring people to go buy a

home. there is a consensus out there that as soon as we start to see solid economic numbers, cheryl, we will see interest rates go back up. it will not jump up, spike up a lot, i do not think they will let that happen. i think you will see, cheryl, that interest rates could come up quite a bit. there is some product. let's just hope that they do not mess it up by messing with somebody's lending programs. cheryl: washington does have a history of messing up a lot of stuff. it is great to have you, as always. thank you. >> good to be with you, cheryl. thank you. dennis: rick perry wants to make it even lower. delivering his state of the state speech. this would require a change in the state constitution. texans favor that idea by a wide

margin. cheryl: the texas economy stayed strong while a lot of america did not. take note, america. look at the unemployment rate. the city with the lower unemployment rate has an 80% chance of winning the super bowl. if that is the case, just hand the nonparty trophy over to the ravens right now. again -- dennis: i have to root for the 49ers because of younger brothers everywhere who have been beaten up by older brothers everywhere. take a look at this beauty. this is in northern california. how much the jet sold for. making it one of the highest sales ever in this nation.

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♪ >> i in elizabeth mcdonald with your fox business brief. transportation secretary ray lahood is leaving. he will stay on until a successor is chosen and confirmed. two-day policy meeting. expectations are that the central bank will stick with its plan of allowing consumers and businesses to borrow at cheap rates. the fed expects that to change at the end of 2015. posted close to a deal. this is what is happening. more than $400 million. the deal will be announced as early as today. that is the latest from the fox business network. giving you the power to prosper. ♪

dennis, and wisdom is that a robot is about to steal your spot. they actually generate more jobs, not less. this says robots will generate many jobs during the next decade. >> two ways, one way is the robotic industry itself as it grows gross people. to make them and sell them and, you know, service them. on the other side, companies that the boy robot immediately lose the labor that they are replaced, but within 18 months, they tend, the numbers tend to

come back in other occupations. marketing, downstream occupations. dennis: are these robot so flawless that we do not need enough new jobs to take care of them? as soon as you put one in there, you need regards and gulls stood there and fix it. >> interestingly enough, there is a new company that makes togs for hospitals. when the taliban hits a wall or someplace and it gets lost, it dials a 24 hour service that they provide that turns on cameras, looks around, figures out where it is, where it was finding to go and reroutes it.

dennis: let's talk stocks. you veered off into this robot theme. you are one of the few people that actually follows an index that you created of robotic stocks. >> i have about 170 stocks that i track regularly. 120 of them make up the index. it is a worldwide index. most of the present-day robotic industry is offshore. it is german, korean, japanese and swiss. dennis: right. >> new style robotic companies, these are all over the world, in the u.s. and other places. they tend to come from the u.s. it is incumbent on us to try to keep the industry here. the newer industry. dennis: yes, sir.

thank you for being with us today. i am hoping a big firm comes to you. thank you so much for being with us. good day, sir. cheryl: it is time for your west coast minute. an alert system may save thousands of lives. 2000 census to look for ways regarded as precursors to quakes. you could get up to a 62nd warning. the state of washington is trying to keep its new legal -- there is ways to prevent smuggling including the idea of digitally tracking marijuana or using barcodes. the neighboring states still consider pot illegal and, well, so does the federal government. how about a $117 million house?

one of the largest residential sales ever in the united states has been reported in woodside, california. that is your west coast minute. dennis: must have been one heck of a down payment. cheryl: 9000 square feet. i think i could handle that. dennis: i think you should get more for that. it is a quarter till. stocks now. nicole: i am tempted to say, fox business will be broadcasting live from outhouse all next week. that would be fun. let's take a look at some movers here. first, let's start off with valero. they are up over 9%. levels are back to july 2008 levels. certainly, new highs there.

vm is down almost 21%. we did get more numbers on home prices. they actually were not so great. year over year, actually doing well. up 137% over the last 52 weeks. anybody would take that return. jcpenney up 7.5%. back to you. dennis: thank you, nicole. cheryl: a lot of excitement really. microsoft rolling out a new version of office. we have shibani joshi ahead on whether you need all the bells and whistles. dennis: and thinking on shame. the new plant that music piracy on the internet. we will tell you about it in the next media minute. the local [ indistinct shouting ]

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dennis: how is it that people can download illegally movies and tv shows free of charge? now comes a new weapon against it. shame. the university of southern california lab will release a monthly list naming the worst offenders. google and yahoo!. google itself helped fund this story. that stopped at a nice 750. now, let's talk lien lands. the folks at nielsen took a look and lance armstrong's likability

rating plunged 78% since fessing up. 61% of people dislike armstrong. lie to me once, shame on you. like to be a thousand times, shame on your product sponsors. go daddy.com gets upstaged by mercedes. a new ad features sports illustrated cover girl kate upton. cheryl: all right, microsoft giving its flagship office a big reboot. shibani joshi has a preview for us. shibani: the company has ninja loans, they have the xbox. the office software suite is really part of what the company does. is the bread and butter and it is having a monumental moment.

it is that it drives the majority of the company's sales, but sales were down about 10% in the last quarter. today, it is getting its first consumer update which will help it came up with the moment with windows eight. it is more of a cloud -based service. google draws and google mail is all about the drives. new features for excel, word, outlook, powerpoint, everything you could think of. available up to five devices with 20 gigabytes of storage. sixty free skype minutes. that is being sold for $99 or $999 a month. they are selling it on a subscription basis. kind of like a nap -- kind of like a netflix basis.

they are giving consumers the opportunity to learn about its newest offerings. a big focal point is the bomb set. this is all about bringing the productivity of the office into the home and later on today, we will be talking to a desperate mom or a desperate housewife, i should say, about what this product has to offer. cheryl: felicity huffman. she played a housewife on abc for ten years. interesting joyce. shibani: moms and women, you know we can manage and multitask and do it all. why not get some software tools

to help us even more. cheryl: we are looking forward to the interview. thank you. dennis: there is a map for that. google updating its maps. new detailed maps of north korea. it comes from citizen cartographers. now included are places like hospitals, subways and even gray zones where it is believed hundreds of thousands of north koreans are imprisoned. there is no connection between the new maps and executive chairman's recent visit to country. cheryl: one of the most interesting things was how stage everything was. she kind of opened up the veil and said you walk in, there are six people. they do not look at you. five people in a room on the internet. you are still completely -- i understand him wanting to go

there. dennis: it is every bit as staged at our own white house. every dream, have you ever dreamt of living in a free-market utopia? melissa and lori talked to a developer who wants to build a detroit island for a billion dollars and turn it into a commonwealth. you have to hear this one. cheryl: just as the senate reaches a compromise on immigration form, now comes president obama's plan. lou dobbs on the immigration debate. that is next. stay with us. ♪ ♪

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