stuart: here it is. the highlight reel. >> when you take a look at previous devices, they get old. technology moves fast. stuart: what you think about the new blackberry. will it compete well against the iphone? >> i think it is too little too late. >> here comes blackberry giving something for the current people to use. >> where was the excitement? stuart: charles, it is judgment time. would you buy facebook at 30? charles: no. stuart: would you buy. at 12?

charles: no. blackberry becomes interesting at ten. stuart: dagen and connell, it is yours. dagen: the senate set to pass the band-aid bill pushing the debt to may. dan hedger says it is just another example of oval office bullying speed. bye-bye meantime to the president's job counsel. a new study out shows that one of them like this could said one third of american families into poverty. dagen: the oil market on ice.

reports are israel is launching airstrikes into syria. connell: the new energy markets. if you want to know where the jobs are, this will be one place you should look. dagen: looking good. not you. top of the hour, stocks now. nicole: let's start off with the dow jones industrials. down about 11 points right now. just below that 13,900 mark. we got very close to the 1400 mark. we were about 31 points away, if i recall correctly. the nasdaq is off today. up two points. we have talked about some names that are weighing them down. bank of america and coca-cola with pressure. qualcomm has new highs.

nine-month highs. they came out with their quarterly reports. they talked about profit they talked about revenue. the outlook looking good. you had ubs raising the price target. they had a buy rating. the stock is up 5%. connell: thank you. dagen: the senate set to vote on the debt bill. connell: we have rich edson on capitol hill. rich: the senate is increasing a debt in the ceiling. that would allow spending through may 18. they can push that date even further into the summer. the debt ceiling moves out of the way for fight over government spending. it has already started. >> clearly, it is the spending that we have to deal. now is the perfect time to do

so. the key to a robust recovery is to create jobs and grow. >> it is something that we know. we understand that. there is more to making our recall of an economy. rich: if any of the amendments pass, the bill then heads back to the house. the senate will very likely said this bill to the president's desk this evening. the sequester beginning in march in a large portion of government authority running out march 7. if they fail to reach a spending puma we will have another

government shutdown. back to you. connell: let's bring in band manager. -- let's bring in dan and. the president is a bully. is that what that means? >> clearly, john boehner is now understanding that what is going on is he is in the thunder dome. rather than in a good-faith negotiation with the president. i am so glad, dagen, in your introduction $450 at least twice. $450 billion is

incomprehensible. the democrats are arguing that the to spend this money because they feel that with the economy weak public spending will lift the economy. every dime spent will raise the economy a dollar $0.50. the republicans are arguing that rather than say spend -- let's talk about this the questionnaire. rather than spend that $69 billion, let's take it and put that 69 billion back in the private economy where it will be used more productively and more efficiently. in other words, we are kind of talking about two economies. that is what this spending argument is all about. which economy gets the money. dagen: the democrats seem to have it both ways.

you have jay carney blaming the gop. then, it seems to give the democrats ammunition that very economic weakness for more government spending. it was a drop-off in government spending that caused the economy to contract in the fourth quarter. >> well, that is right. dagen: they can have it both ways is what i am saying. >> once again, you could get democratic economist on this program round-the-clock and they will all say the same thing. we have to stimulate the economy with public spending. public spending pours money into the economy and causes consumer demand to rise. republicans are trying to save the more efficient way to do that is to leave money in the private hands, private businesses, private economy. there has been no evidence over the last four years, there has been tremendous public spending

the last four years, that that has raised the economy. where is the success in their theory? connell: to go back to the earlier point on why we had a contraction, wasn't it because military spending pullback? that was the reason given. >> the recession ended in early 2009. after a recession, you should have a growth rate of four, five, even 6%. we had 2% for four years. dagen: you have made a clear argument and laid out the private economy hearses the public economy. they are fighting back against the president. that is failing.

what do you make of that? >> it is a big problem. they will stand there and cindy talk about spending. you are not going to hear mitch mcconnell say certain things that i just said. they simply relate it to washington's problem, the budget, the deficit. they want to know what the republicans will do to help them. just talking about the beltway spending problems does not quite convinced them that they need to, you know, take these measures. connell: dan, thank you as always. dagen: next time, we fight till the deathbed. i promise. strong storms reaching habit from the midwest to the southeast. now settling into the northeast. high wind, torrential rain even

tornadoes being reported over large parts of this country. are we financially prepared for that? almost one third of americans have no savings account at all. this according to the corporation for enterprise development. 44% of american households are only one emergency away from financial ruin. they do not have savings to cover basic living expenses for three month if they were to suddenly fall ill or lose their job. some bad news at the pump. especially it lived out in california. crude oils are now spiking. with refineries soon switching over to costlier summer gasolines, golden state voters could see four dollars a gallon very soon. the national average is always

$0.42 a gallon. that is up from $3.29 just a month ago. connell: looking for a job? how about the oil industry. >> ill oil and gas industry has a complaint, it is that they cannot hire qualified workers fast enough. the system around here is stringing to try to meet that demand. there are 20 trade schools and community colleges in the region. for those i can get into these programs, the training is free. >> it is an opportunity that they are giving a lot of people that are not employed a chance to, you know can't get back into the workforce.

i think that if you do not have a job, this is a class you should be looking into taking. >> these slots in these training programs, in these schools, are limited. the competition is extraordinarily high. natural gas companies are also telling us that they are looking for people with an array of working skills. >> one of the things that is interesting is we have about a seven or 8% unemployment rate. help wanted signs are everywhere. i have not understood that. in the oil fields, that true also. in some cases it is because of the cdl license. >> if you can get a trucking license, you can make $60,000 a year. the medium family income is less than $40,000. if you have an engineering degree, you can start off, right after school, off at $90,000 a

year. they are hiring. they are paying. they are scrambling to fill slots. back to you. dagen: thank you so much, steve. more on that bad weather across the nation. connell: also, charles payne will be in here. charles has a stock he says you could buy on cheap. there it is. juniper networks. he will tell you why it is worth looking at. dagen: in airstrike launched by israel along the syria / lebanon border. take a look at oil prices. lincroft and k.t. mcfarland are coming up. ♪ all stions come over to mission a for a final go.

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dagen: look alive connell mcshane. a quarter past the hour. nicole: the traders have been running to hostess. their time and has halted here this morning. right now they are waiting for more news. this is all on the news that either bush had filed antitrust lawsuits to block the merger in washington courts. that may move forward.

constellation brands is directly correlated to this deal. with that, it is selling off. they had to hold it again. more news pending. this was not because of the volatility and the big selloff. now, it says news pending. there may be more news on this. we will continue to follow it. dagen: thank you. connell: just like the old days. a big crowd at the new york stock exchange. let's bring in charles payne. we don't always do this, we gave away his stock before the break. charles: i always ask people -- something like this could happen occasionally. reported earnings that was a phenomenal number. i started doing my research. i always do a peer to peer

review. the things i was impressed about with them, i was more impressed with juniper. i love that they are still spending a lot of money on research. they will continue to take market share. i think a lot of that is going from cisco. juniper has better margins. significantly better. all of a sudden, i am saying, what the heck. juniper is doing more research. i am looking at it to double top at 25. you remember the good old days. connell: we always get on you for bringing up this type of

stuff. charles: they beat the street every quarter. 20% better. sometimes i think that dark shadow from 2000 still angers some of these stocks. connell: thank you, charles. increased tension in the middle east has no oil market paying at least attempted to it. you have iran and syria both say they plan to respond to the israeli airstrikes. dagen: and the job's counsel away. what can happen between ceo and president obama? why get rid of it now? look at how the world currencies are faring against the dollar today. ♪ [ woman ] if you have the audacity to believe

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>> at 23 minutes past the hour, i have your fox news and it. syria threatening to retaliate. u.s. officials say they struck a

convoy. 's israel says israel hit a military research set. former gop senator chuck hagel is before the senate armed service committee. he is telling people not to write him off base on earlier comments about israel and iran. if confirmed, he would be the first veteran to serve as defense secretary. negotiators in contact with the suspect who is a retired truck driver holding a 5-year-old blake inside and underground bunker. the man grabbed a boy off of a school bus on tuesday after shooting and killing the bus driver. those are your headlines. dagen: thank you, greg. connell: violent storms ripping through the southwest. reports of tornadoes in six different states.

dagen: crazy would be a word to describe it. >> extreme. we are dealing with temperature drops in some cases from tuesday to saturday at 60 degrees. the incredible work for the gulf of mexico is what is fueling new storms. this is what we typically see at the end of april. two tornadoes were enough to in kentucky. speaking of that wind, the storm is moving across the south east. we have seen hurricane wind gusts. you can bet that we will have delays across the airports in the northeast. there are your wind gusts right now. forty-four in nantucket.

philadelphia 52. we will still be left with those wins throughout the day. 30 degrees drop. 22 degrees in chicago. extremely cold across the northern plains, upper west. we are back to winter. back to you. connell: you are right. extreme. dagen: i saw that tweet about the temperature drop in chicago. it is bananas. >> they broke a record. it will be 3 degrees tomorrow in chicago. extreme weirdness. dagen: unbelievable. thank you so much. these guys could not get it done. we need jobs in the country, but the president's job counsel is going away. connell: that is it. it is done. we will talk more about the

airstrikes in the middle east. what this conflict means that if anything, for the oil market. right now, let's go to the stock market with some of your winners on the s&p 500. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i reallneed is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes

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today. then there are airstrikes and syria. putting the oil market on @otice. facebook. facebook trading down after the latest earnings reports. dagen: it is the bottom of the hour. stocks now and every 15 minutes. the first ipo by a u.s. homebuilder in about ten years. nicole: i am standing here by drypoint homes. it certainly has been soaring. there it is right now at 19.40. this was a $17 offer. certainly jumping. we have not seen a homebuilder ipo in about 18 years. now i will bring you something salacious. hershey's. they came out with their earnings. great revenues. sales looked great.

stocks hit an all-time high. back to you. dagen: more now on the president decision to shut down the council. look no further than the president this interest in learning lessons from actual job graders. whether it joined the group or the president treated his jobs counsel as more of a nuisance than being able to spur job creation. senator, good of you to be here. what does this say about the white house and the effort to create jobs by disbanding the jobs counsel? >> i was a businessman myself for 25 years. i had my own company. last year i spent a lot of time talking to businesses all over south carolina. the president did not like what

these business people were telling him. they told me that they were pulling back on their plans because of the uncertainty of dodd-frank, obamacare cause, tax increases, the president has spent more on economic stimulus and borrow more money than any president in history. his policies are not working and he does not like what business people are telling him. dagen: we talked about this earlier in the show. you look at what happened in the economy during the fourth quarter. we had a contraction if you are on the other side of the aisle don't you look at that and say, hey that is a very reason that the government needs to keep spending money. >> if that helps our economy, we would have the best economy in history. there were no spending cuts in the fourth quarter. we have not executed as a cluster yet. companies did begin to pull

back. dagen: one that they are looking for is more infrastructure spending. we have heard that over and over again. why won't the white house get that? >> dagen, it is a different philosophy. the president and his party believe that the government is the central player in our economy. we talk about cutting spending, they think that hurts the economy. that divides everything we know about our countries history and economics. the more money you leave in the private sector, the more money grows and jobs are created.

this is the first president in my lifetime that has continued to go the government spending route despite -- this is the slowest economy and history as far as being a recovery. i cannot believe that the president does not understand what is going on. he seems intent on bringing our country down so that he could reorganize. dagen: senator, it was good to see you. congratulations on her new job. we will see you often, i hope. be well. peter barnes goes one on one with the new ranking member of the senate banking committee. connell: airstrikes and zero. we will tell you what this means for oil and the energy market,

in general. dagen: looking for more from the social media giant. that stock is down despite a solid quarterly earnings report. let's take a look at the ten year period unchanged. back below 2%. ♪

>> i am lori rothman with your fox business brief. higher than expectations for people who filed jobless claims last week. employers announced plans to lay off more than 40,000 in january. up 24% from last month. shares of ups under pressure after the profit missed expectations. ups reported earnings of $1.30 per share. revenue of more than $14.5 billion did top the estimate for ups.

a different story for viacom. the media conglomerate reported adjusted profit of $0.91, beating that event by one penny. that is the latest from the fox business network. giving you the power to prosper] ♪ [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ from td ameritrade. - ♪ 'cause people got me questioning ♪ ♪ where is the love - ma'am.

you forgot your purse. - thank you. oh. thank you very much. - a message from the foundatio for a better life. pete. oil has been down today. it is up nearly 2% for the week. there is certainly plenty of tension in the middle east. we bring in k.t. mcfarland and -- both in the studio today to talk about the fact that real has conducted airstrikes inside syria. that was a big headline this morning. what does this mean? >> do not think about syria and do not think about lebanon feared think about israel and think about iran. they are pre-positioning themselves for ror.

they are making all the moves to do that. in october, they moved missiles into the gaza strip. israel looks at that and said preemptive attack against all of that. that is where you are now. the strikes yesterday that israel was striking advanced weapons that were going from syria to southern lebanon. we think those were antiaircraft. there may be another move on this. connell: so, then, you wake up this morning and say this will really send oil skyrocketing. that does not happen. >> i do not think the oil market is really focused on geopolitics at the moment. i think the iran story is the one we have to watch this year for the oil markets. there is really no progress on the diplomatic front and we could get a nasty shock come

spring or summer. connell: for the most part, we have had some pretty good numbers. if the global economic demand comes back oil prices should keep going up. >> right. connell: instead of going up 100 bucks, it is 120? >> if you get any type of scenario involving iran or israel, you are facing a significant markup in oil prices. it is a little bit of a syndrome of crying wolf. connell: it is kind of like the government saying here is a clip. is that a risky assumption. >> everyone is talking about the straight of harm use.

that is -- the egyptians want to keep it open. you could have in the sinai peninsula, where al qaeda is setting up shop, you could have a small group of extremists who decide we will take out a ship. we will take out a tanker. then everyone has to go all the way around. connell: quick, before we go? >> i think it just underscores the problems in north africa. we were also shocked at what happened in algeria. the whole host of energy facilities and transportation routes are potentially at risk because of that phenomenon. connell: i know we talk about libya and egypt. there are some areas that we do not. algeria is one of them. thank you very much. dagen: i am jealous.

i adore those two ladies. they are superduper smart. thank you both. investors, meantime, disappointed with facebook. approved mobile ad revenue. you would think they would be happier about the results. shibani joshi has more on that. connell: you would think. great is not good enough for facebook investors. the numbers are great. they were great. when they came out after the close yesterday, they be on the bottom and the top line. helped by mobile advertising almost doubling. analysts are disappointed. this is a read you tune into fox business. we have the scoop behind the scoop. mobile revenues, yes, they were higher. the street wanted $350 million.

the other thing is we were informed that facebook is now in investment mode. the company will be spent on things like r and d on projects like it infrastructure. this is something that amazon did not too long ago. when you start to head and increase your cost, you start to limit what your earnings growth is. that is why we are seeing shares selloff today. "we do not believe that the facebook story has existed long enough that it can be given a path for this change in earnings trajectory. the run and facebook shares is likely over, at least for now. ". a little bit of a pause in the nice round that facebook has had over the last few months. connell: shibani, thank you. we are at a quarter past the hour.

nicole: we have been at the post, really since just before 10:30 a.m. it halted the second time. halted the third time. it is back in action. we have seen it down significantly. now, you have big u.s. filing suits here. bring forward that this could infringe upon antitrust problems. shares of anheuser-busch and constellation brands have been under pressure. they are trying to block the purchase. consolation brands has joined venture. the merger would actually result in u.s. customers paid more for beer and less in competition. anheuser-busch said they will vigorously contest this. back to you. connell: thank you. dagen: hospitals in america are consolidating faster that any

kind we have seen in the last decade. obamacare is the reason. connell: we have a doctor coming on to talk about that. first, some of your winners over on the nasdaq today. ♪ all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet...

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dagen: breaking news. you are looking at picture from a massive freeway crash in detroit, michigan. another example of the danger of this wicked weather we have been given. at least two people are dead.

twenty others are injured. this crash happened this morning on interstate 75 on the southwest side of detroit. you can look, white out conditions reported there. slippery roads. there you have it. the pictures certainly speak for themselves. connell: u.s. hospital consolidation. highest level in over a decade. we have a doctor joining us. he is a host of "health of the nation." what is in obamacare that is leading to this and tells exactly what is happening at hospitals? >> what is in the affordable care act are certain mandates that pushed the cost of healthcare up. those mandates have to do with information technology. they have to do with the delivery of specific services at a specific time.

these are coming together in a confluence and the cost are extensive. at the same time that medicare rates are dropping. they are taking hundreds of billions of dollars away from medicare in the first several years. hospitals have had to accommodate. in order to survive, the smaller ones have been brought up by the larger ones. connell: people say to themselves that some of these costs are up front costs, information technology, it will be costly for doctors and hospitals to upgrade their systems. over the long-term, consolidation and other industries has saved money. >> healthcare is unlike any other industry. it is not an industry. that is the problem. people do not understand that.

the only way that will happen is to squeeze more and more out of the supply side. that will not work. the issue is, how do you control the supply and the demand. that is not being addressed. essentially what is being done is the political solution is being applied to a medical problem. a one-size-fits-all is just not going to work. connell: example are people are getting hurt by this, patient care is suffering? >> sure. what happens is the real critical danger here is physician practices are being bought. hospitals use to contract with physicians. they no longer have to contract with physicians because they own physicians. if there are certain mandates that come down, once a hospital employs a physician and a

position becomes an employee of the hospital, what happens to the doctor-patient relationship? that is the danger. who comes first, the hospital or the patient? your paycheck or your patient? connell: thank you very much for coming on. dagen: what are we waiting for, people? the jobs report. connell: sandra smith is in the pits of chicago with the trade. sandra: this is a day where you want to assess the month of january. there has been a really big rally. the best start to any year in the month of january in the stock market since 1889. so far this month, the dow is up 6%. s&p up 5%. because of apple's poor performance, nasdaq is an underperformer. the big question today is this market top-heavy?

the news coming out of the economy has not been great. >> no. it is not great. is it possible that they can go uu? theefact that the nasdaq, you just said it, the nasdaq is ow participated in this rally makes me discount this rally even more. with a negative gdp rating, why would i want to. sandra: oil prices above $97 today. oil up 7% so far this year. how do you explain that? >> it has gone along with the equity market. the world demand for crude has been pretty good. the crude market is changing right before our eyes today. you are putting big premiums and. that is not bullish at all. i think crude is topping out today. sandra: we will leave it at

that. the jobs report toolbar. all of this hinges on whether or not that is better than worse than expected. stay tuned. dagen: thank you, sandra smith. connell: a very busy noon eastern time of market now. charles payne, david asman, sandra smith, that is some lineup. dagen: posted ceo is on how hot the bidding will go. snowball and pvr. that is a saturday night. peter barnes goes one-on-one with the new ranking member of the banking committee, greg rayburn. dennis and cheryl are next. ♪

nick i am dennis kneale. cheryl: i am cheryl casone. the dow is having trouble breaking through the 14,000 level. concerned about tomorrow's jobs report part of the weakness if the white house is shutting down its jobs council. fox business all stars will be here with their take on jobs, economy and more. dennis: $410 million to revive the twinkie. that is the opening bid for the assets of bankrupt hostess sweet cakes business. we have great raborn here on how high that bidding could go. cheryl: this fox business exclusive, peter barnes goes 1-on-1 with the new ranking member of the senate banking committee, mike crack0 on fox business. dennis: top of the hour, stocks now are, nicole petallides at stock exchange. we have the dow the breeders of 14,000 not here. nicole: we got close, we were at 31 points away from endow 14,000

and then we pull back and broke below 13,900. we have sold off, we are down 36 points on the dow jones industrial average. that is worth 1/4%, like the recipe 500 and nasdaq, a down arrow. we watched everything from research in motion to facebook making news on earnings and outlook, i wanted to look at another name which was timewarner cable. is down almost 10% after their quarterly report. clearly down to $91, a drop of $9.70 a brown the 200 day moving average and obviously not good news, this is how shareholders are interpreting the numbers in the forecast, most importantly the guidance missing analyst estimates on wall street. time warner cable fix the appointment today which is why you see it down 10%. dennis: thank you.

senator mike ray pope saying he wants changes to this tumor--consumer protection bureau before considering the nomination of richard cordray as its head. cheryl: the ranking member of the senate banking committee, peter barnes joins us from washington for a fox business exclusive interview with the senator. peter: you see it is perfect, senator crapo the top republican on the senate banking committee and will be doing a lot of heavy lifting when he takes over the seat. welcome to fox business. what are your priorities now as the ranking republican of the banking committee? >> there are a number of them. top of the this has to be dodd-frank legislation. oversight of implementation of the rules as well as legislative fixes to correct legislation areas where we can find common ground. secondly dsc reform, fannie and freddie need to come out of

receivership and we need to figure out what to do with them and third, reform is part of that and other like to see as the focus aggressively on pack -- capital formation. too much capital on the sidelines because of what i perceive to be a climate in which business does not know what the rules are going to be and the rules that they do know about in in too many cases to push their capital away from the market rather than into the market. peter: can you work on with democrats on the issues and get legislation on these issues out of the committee to the full senate? >> i do believe so. obviously there is a significant of the gridlock in congress. the banking committee has a history of working together in a bipartisan fashion. it has broken down in the last couple congresses but senator johnson and i have a good working relationship and i expect to build that back. there will be areas we can agree but there will be areas where we can agree and i believe we will

have an opportunity now in this congress to build some really good bipartisan steps forward in this arena. dennis: senator johnson of the committee, one piece is the consumer financial protection bureau, richard cordray renominated by the president to be the director of that agency. he was recessed last year because republicans in the senate blocked a that nomination. you don't like this renomination because you would like to see changes, what will it take to get your vote to confirm richard cordray formally for the agency? >> you explained it correctly. this isn't about richard cordray. it is about the agency itself and how it was structured and a constitutional prerogative of the senate to advise consent over property nominated candidates. i believe there is ground to move forward. the two major concerns the

republicans have and as you may recall there were 44, 45 of us who signed a letter to this affect the last congress and i expected to be that strong in this congress. are concerned by the agency has given all of its power to one individual, the director, no board, no commission, that needs to be corrected. secondly there is no congressional oversight wants the director is put into place over the budget and in fact there is not even any kind of requirement that the financing for that agency come from inside private sector funding or from the government. the requirement is simply the director has the ability to tap into the fed and take the necessary resources that he or she wants. if we can correct those two things and i think they should be correctable might see more willingness on the part of republicans to move forward. peter: are they prepared to block the nomination?

>> i can't speak for all of my colleagues but i believe there will be that kind of strength of conviction among the broad majority of the republican caucus and the point would be this. we are not prepared to move forward with any nominee that hasn't gotten anything to do with the individual person who is at issue, richard cordray, don't think we're ready to move forward with omni done any nominee until the agency is restructured. crisp phil: his nomination could be blocked again. you met with jack lew to the president nominated as treasury secretary. you are on the finance committee as well so you'll be hearing from him in his confirmation hearings. how did your meeting go with jack lew and are you ready to cast your vote for him as next treasury secretary? >> i haven't made a final decision right now. we had a very good meeting. each is that i have rick regard to the secretary of the treasury regardless of who is is what kind of direction we will get

with regard to dealing with our broader fiscal crisis, the debt crisis we face. i have strong objections to the direction we have been taking more getting from the administration, namely increased federal spending, increased stimulus spending and increased taxes. i think the increased spending and increased taxing approach to our fiscal crisis is wrong. we need to focus on the fact that the problem is in the spending and we need to deal with the entire budget and everything needs to be on the table including medicare, medicaid and the entitlement programs as well as revenue. i am sure you know i am a strong advocate for broadbased program something similar to what the bowles-simpson commission put out but i want to see a commission to a pro-growth agenda too, the kind of reform of our tax code that will make it so we don't have the most unfair, complex, expensive to comply with and anti-competitive tax code we could conceivably come up with. those reforms are what i'm looking for in terms of the leadership of the treasury.

rich: thanks for joining us. we will be with you every step of the way on all these important issues. dennis: thank you, peter barnes and senator mike crapo. cheryl: from washington to new york the dow continues to not get close to the 14,000 mark. the dow and the s&p seems to be hitting tough technical levels, unable to break through. joining me, director of investments can perish and hank smith, a table for chief investment officer. you have always been pretty bullish but there's something going on here. the s&p sitting at 1498. we can't seem to break above and hold these key levels. what is holding us back? >> we are in the middle of earnings season and the numbers have been pretty decent so far but there are some blockbuster earnings yet to come. there are some negatives out there. everyone has to estimate how the

decrease in payroll taxes will affect consumers and yesterday's gdp report was negative but all in all at the end of the financial group we figure we will hit another i for the s&p 500. we are 4% away and when we look at the market was at an all-time high for the s&p, the p-e ratio was 16 times and we have a ratio of 13,000 earnings picture probably gaining momentum in 2013. cheryl: let's look at those wars because i know you are saying you think we can get to 1650 on the s&p by the end of the year but same question to you. we are pushing up but not breaking through. >> it is as simple as this. the market is due for a pause. can't keep going up in a straight line day after day after day and this has to be viewed as something that is healthy. a little bit of consolidation here taking some of the excess out if you will, and so i think it is simply that as opposed to

any specific news. earnings are better than expected as they have been quarter after quarter and so a lot of the big tail risks have been taken off of the table over the past handful of months. the big factor is the individual investor is starting to be reinvested in stocks. cheryl: not just interested that spending money, $55 billion and inflows, mutual funds, they are back, they are in but that is not enough to get us through. you mentioned earnings and gdp and jobless claims but at the same time, 174 of the s&p 500 reported 65% beating estimates. we were getting the reports that we need. >> getting the reports and like hank said, you can't go straight up. we have to finish the quarter, go ahead and see what they say about the new year.

estimates of come down which was a concern for the first quarter of 2013 and that is the concern but all in all investors are gaining more confidence. there's some taxer and tiso that plays a huge role in our investors feel going forward. we are taking a diversified approach and expected growth out of a number of segments, broad based, one of the most broadbased increases in earnings expected for 2013, that is the great thing, we should see high-quality do well this year. cheryl: you like pharma, you like industrials, exposure to china, so you have a let's look overseas kind of theory going on. >> that is right. i am in a world with a factor emerging economies are growing 2 time that a developed economy and so the industrial space is particularly suited to take advantage of that and with respect to pharma we are at the

beginning of what we think is a multi-year positive trend as we are nearly at the end of major pant expiration and a lot of these companies have held the pipeline for the first time so we think pharma is very undervalued over the past 12 months ended is a multi-year trend. cheryl: we are close, no cigar. we will keep our viewers posted. thank you very much. dennis: fear that rising unemployment may tender the rising stock market, fox business all stars with their take on all of it. cheryl: after the new york times of all places reportedly had the chinese government. dennis: hostess taking the lead bidders to own the twinkie brand and more. ceo greg raborn your next. cheryl: want to take a look at oil, oil money at 50, but you

know what? pushing 100. we will talk about that later.

cheryl: 15 minutes past the hour, stocks with nicole petallides live from a floor of the new york stock exchange taking a look at facebook and underwhelmed by that report. nicole: that is a good way to say it, underwhelmed. the report came out and there were a lot of good parts but it wasn't good enough to impress wall street. today you'd see the stock at $32.72 a share of of its earlier lows of the day when it within a $29 range, $28, down 1% right now but the long-term chart had a nice one recently but certainly nowhere near the $17. cheryl: thank you. dennis: $410 million to save the

twinkie? that is the opening bid from two big investment firms. how high could the bidding no? greg raborn of hostess brand joins us now. thanks for being with us. we had $390 million starting for the main bread business, $410 million with this new bid of metropolis and the other guy, apollo, for the sweet cakes business but now they go and actually come in for new bidding, and new guys you haven't heard from will come in and try to top those prices? >> we will see new bidders or not new people but people who have been participating in a process who at some point determined they would rather be at the auctioning than participate in the stock so that is particularly going to be true on the cake side of the business because interest has been so intense. dennis: it is $410 million, up by another 20%. >> i hope so. where we are today if you take all of the transactions now we have generated over the last

couple months we are at $858 million of total floor price. dennis: you have raised. >> we probably have another 80 to $123 million worth of equipment and other things that add to that, from there it is a function of whom comes in and bid and where the bids go to determine the ultimate recovery. dennis: the target you are aiming for is $90 million in secured debt. you hope to get that back from the debt holders to parachute you into the company to fix it. if there is so much interest in twinkie, why wasn't enough interest to keep the brand alive? why did hostess shutdown as a company? >> if you go back and look at how things play out, the death knell for the business was the strike by the bakers' union. we could not overcome that strike. it was unsuccessful in convincing them to come back to work or get enough people to cross the picket lines to stay in business and we didn't have the liquidity or financial resources to weather a strike like that.

we were pretty clear that would be the outcome. dennis: you work all along you would cut shot the company down and you did not get the concessions needed. do you think baker thought you were blocking? >> i have no clue what they were thinking. may be some did. may be some thought there was a buyer that would take the company as it existed at that time which we said there wasn't but maybe there was some believe. dennis: wall street journal a couple days in a row, the bible of american business had this line, quote, hostess moved to liquidate after it failed to reach a deal on cost cuts with its second largest union representing the bakers. is that would happen? did you fail or did the union failed? >> when you have a result like this there is plenty of failure for everyone to own except as i said before the death blow to this company what the baker strike. that is what the company end liquidation mode. dennis: the previous management that build the company or ran the company, were they at fault for not being tough enough on unions early enough?

they had gone in chapter 11 twice but they did not extract or exact enough concessions. >> if you go back and i don't spend a lot of time looking that far backwards because there's not a lot of value after that but in this case the concessions that were achieved in the first bankruptcy were not deep enough. the assumptions used in terms of what the business would generate in terms of sales and profitability were overly optimistic at that time around and so the company therefore ended up -- dennis: especially when the company has to spend $100 million in the year on health costs for teamsters who had never even worked for the company itself. you are workout guy and you going to disaster, you went into world, after the scandal in new york off-track betting when it was in bankruptcy and dissolve the that. now hostess. this whole thing could be done by march, april. do you hope -- don't you want to make a commitment and stick with one company and run it instead

of coming to crisis? >> this is a kind of commitment. as long term as your about. [talking over each other] >> i don't know what is next. it is interesting being in the business i'm in, no radar, you can't look ahead and said -- three months from now. we will see what is going on at that point but by the end of april i could tep away from hostess if we get these large transactions. dennis: stick with the short term work out. keep an eye on rim. they might need some help. thanks for being with us. greg raborn of hostas. cheryl: good list putting together. all right, a sticker shock for california drivers. $4 a gallon gasoline may be here very soon. detail ahead on that. dennis: fears are rising, fear is rising that unemployment may take a bite out of a rising stock market. all stars ahead with their take on that. chris cheryl: we are going to take a look at the world currencies and how they're faring against the u.s. dollar and you are seeing

strength in the euro, weakness in the dollar. we will be right back.

>> 25 minutes past the hour your fox news minute, 20 injured and

two debt in a massive highway pileup in detroit, 30 vehicles involved in the crash south bound i 75 in detroit. white out conditions being blamed for the accidents which occurred two hours ago. severe weather has been impacting the country from the midwest to the southeast to the east coast. syriac is threatening to retaliate and is warning of a surprise response to israel's air strike near damascus. u.s. officials say is really jets struck a convoy shipping weapons to lebanon for the islamist militant group hezbollah. syria says israel hit a military research center. that hostage standoff in rural alabama alabama continues this morning. deron contact with the suspect to the retired truck driver holding a 5-year-old boy in an underground bunker. the man grabbed the boy off of a school bus tuesday after shooting and killing the bus driver. those are your headlines. now back to cheryl casone and dennis is hanging out there to. cheryl: he is somewhere around.

a new study is showing almost a third of americans have no savings account at all. according to corporation for enterprise development nearly 44% of american households are only one emergency away from financial ruin. they don't have enough savings to cover basic living expenses for three months if they were to suddenly fall sick or lose a job. should be six months. the study gives possible reasons for lack of savings like stagnant wages, rising prices and high credit card debt. the new york times says the chinese repeatedly hacked into its computer systems over the last four months stealing reporters passwords and chasing files on investigation into the family of a top chinese officials. the times says if the company hired security efforts to plug the breach and no customer data was compromise, but reporters got hacked. the number of ipad and other tablet users hit $70 million this year ended is the older age group that is buying them.

people age 65 and older are the fastest growing customer group and 55 and older make 19% and tablet owners according to market research firm emarketer. my mom loves her ipad. dennis: are third time the ipad is over my age or buy at. the dow is higher for 14 k, all-time high rising unemployment diverting us from that? can't afford to miss what our foxes all star has to say. cheryl: soccer blue, france going broke. what we are asking business to do to help out. as we get to break look at today's winners around the s&p, j.d. m, steve johnson and more. we will be right back. all stations come over to mission a for a final go.

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nicole: i am the cool petallides on the new york stock exchange. every 15 minutes, we do stocks now. rockstar games has been delayed. they are pushing this back. it is down 6.2%. how about constellation brands. the parent of corona. it turns out that the department of justice is stepping in and filing and antitrust lawsuit in merger that they are doing. this. not good news. it has been halted three times

today. down 20% right now. ups facing pension costs, facing a tough outlook, a tough economy and washington and it is down 2%. back to you. cheryl: jobless claims higher this morning. that is not stopping the jobs counsel for shutting down. dennis: this pushes an all-time high. we are joined by sandra smith at the cme, david asman and charles payne in the studio with us. charles, do you think that this unemployment will stop us getting to 14,000? charles: the market needs a kennel list. a lot of people are fed the best. we had a couple catalysts that did not happen this week. we get another stock tomorrow. the market could get to a new

high. you would need a true catalyst. david: can i talk about the job cancel for a second? cheryl: i wanted to get to sandra. i want to go over the estimates for tomorrow. they are still fairly low. 165,000 in the private sector. these numbers are not great. they cannot be excited about it. sandra: that does not seem to get in the way of the bullish sentiment that is down here at the stock market right now. when you consider the historically low interest rate environment and the fed saying they will continue to pump money into the economy to stimulate it, you will see the stock market continued to rally. this stock market knows that the

government will continue to try to prop things up and that will continue to push these stock prices higher. dennis: how much longer can you continue to punish the sector this is the only direct interchange that the administration had on a regular basis or eight euros regular basis with the business community they really think that they can guide this economy much better than the private sector can. i think that is dangerous. private obama kind of got diverted away from the economy and onto obamacare. at the inauguration, he talked

about global warming and green technology. he talked about gun control. i did not hear him talk much about jobs. charles: at this point, it is a second term. he does not have to put up the façade anymore. almost everybody on there was a liberal. to your point, the president will now work on his legacy. his legacy has never had anything to do with jobs. it had to do with fairness, rewriting the wrongs of yesteryear, redistributing the wealth. >> if we begin to hear the rhetoric again about the fat cat bankers and really direct a tax towards private sector likely heard at some point, aren't the folks they're going to turn around and start saying, maybe the private sector will not do so well under these conditions.

sandra: they are looking at the basic fundamentals of this market. when you look at the stock market, many of these stocks are still very deep. when you look at the jobs count, these guys are walking around on the floor this morning. these were not regular meetings. it was just an appearance that the white house made to make it appear that they were out there. david: had a road now, but they had specific suggestions, all of which, was ignored. i think simpson bowles was good. the administration and eight nor is. cheryl: i do want to get charles payne in here before we go to

break. charles: i think it is the economy. it is the jobs. it is the unknown. dennis: government interfering yet again. charles: people do not spend that money. cheryl: thank you so much. thank you very much. dennis: mercedes. it could be the big winner of the super bowl. it is all in the name.

coming up in today's media minute. if you live in california, the cost to drive will probably be going up. you will not like this one. take a look at the ten year treasury and how it is performing. ♪

>> i am tracy byrnes with your fox business brief. the u.s. justice department has put the brakes on anheuser-busch . filing a lawsuit saying the $2010 deal would lessen competition in the u.s. beer market. they were hoping to boost the position in the mexican market. it is up from 330,000. we will get the monthly jobs report for january tomorrow morning. 160,000 jobs are expected to be added. frito-lay wants a bite of taco bell's popular taco. it will be for a limited time this spring. it has been the biggest item on the menu. that is the latest from fox business. giving you the power to prosper. ♪

dennis: confirmation hearings for defense secretary nominee chuck hagel going on earlier this morning. if he is confirmed, iran, israel and gloomy defense cuts just some of the issues on his plate. let's bring in jeremiah o'keefe, a former pentagon and cia strategist. tell us why you think he is a good pick. >> i think that chuck hagel is the man for the job at this point in time from a strategic perspective. there is a big battle going on within the republican party. i reside in the latter camp. i believe after the war in iraq, the war in iran, we need to be taking perhaps more of an adventure approach.

i was in iraq as a white house advisor in 2005. i work closely behind the scenes with the white house and the secretary of defense. i sympathize with the sucker punch that we got on 9/11 and what we should be doing moving forward. that included iraq. at this point in time, i am all for the realist posture that chuck hagel is proposing to if we want to hit some high points right now, i think he is wrong on calling israel to move back to the 1967 borders. israel needs to finish their barrier while. dennis: you point out that israel used to be only 9 miles wide. let me just ask you more pointedly, israel, some say, is

our only real ally in the middle east. they do not hate us. president obama came in and had clear intentions with netanyahu. then he picks a guy who has a famous statement about the jewish lobby. was this pic by obama a way at telling israeli critics, you know what, to heck with you. >> you know, i would not say it was in particular a slap in the face of israel, if you will. in every friendship, and every partnership, business or friend, we do not always agree with our allies. case in point eisenhower invasion by france britain and israel.

asked to israel, you know, i would love to see a strategic event occur. the threat from iran is very serious. not just against the state of israel, but terrorists getting their hands on weapons of mass disruption. we can still not trace the -- we could not be 100% sure that it came from iran. this is what i would like to see. i would like to see israel finish the wall, the barrier, the well. i would love to see obama in 2009 work covertly to bring down that during the green revolution. they did not. i hope to god that we are doing something now. this theory out goes, so well iran.

the fact of the matter is, even if we or israel bomb iran, it is maybe a one or two-year detour and. dennis: how are we supposed to spark a revolution in. cheryl: local pub that is on the floor of the new york stock exchange looking at some of the movers for us. nicole: right now the new name is blackberry. down 3.5%.

qualcomm giving a good outlook for smartphones and such during its earnings report. facebook much better. they are seeing mobile ad revenue growing. their expenses have been on the rise. back to you. dennis: thank you. cheryl: time for your west coast minute. governor brown has had enough. uncovering multiple instances of state workers who are getting salaries, but then also collecting paychecks for doing the same job. governor brown launched and investigation. just when california drivers that they were getting a break, it looks like gasoline they be

heading back towards four dollars a gallon. crude oil rising and analysts say the average price is $3.43 a gallon and could be at four dollars. the golden state will get hurt worse than other states. that is your west coast minute. on the road and facing delays. wild weather is wreaking havoc. dennis: meteorologist joins us now. >> the downpours are done. that is good news. it left a lot of damage. we have wind advisories still. we will see very gusty wind all day long. some of those may be 50-60 miles per hour. at laguardia, we had almost

60 miles per hour. behind the system, things will be very calm. it will be much colder. 38 degrees right now in new york. temperatures will really drop and we will see some snow behind it. that is really the only weather maker for most of the weekend. just have to get through today and, unfortunately, in the big city, there will be some delays. cheryl: thank you so much. france is going broke. the government asking businesses there to help. dennis: great idea. first, some of today's winners over on the nasdaq. ♪ [ male announcer ] you are a business pro.

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dennis: adweek already a clear winner. mercedes benz has two ads in the super bowl. one involves kate upton. the super bowl is at the mercedes benz superdome. that will mean allost 6.5 minutes of on air time for mercedes. calculated at the ad price of $3.8 billion. that rises nearly $25 million.

time warner in turmoil. 6% cut. now time warner may want to sell its headquarters. that 1.1 million square feet of space could fetch more than $1 billion. time warner stock up a bit today. cheryl: if you think the u.s. has a debt problem, at least you do not live in france. a staggering 80.5% of people think that their company is broke. it certainly is cutting back. they are ordering people to shut off their lights at night. i hope that does not mean that the eiffel tower will not be lit up at night. energy traders keeping a close

eye on the middle east. syria threatened retaliation against israel. dennis: gas station sticker shock. for dollar a gallon gasoline may be coming to a pump near you. melissa and lori are up next. ♪

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