but with advair, i'm breathing better. so now i can be in the scene. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator

working together to help improve your lung function all day. advair won't replace fast-actg inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, ask your doctor if including advair could help improve your lung function. get your first full prescription free d save on refills at advaircopd.com. melissa: i'm melissa francis and here's what's money tonight. it is the "money" state of the union. we're just hours away from president obama's address and we've got three money problems the president can't afford to dismiss our all-star power panel explains how to solve them. plus is elon musk versus

"the new york times." tesla's new model s is trashed in "the times" review. now he is fighting bacalling it completely untrue. tesla chief executive joins us to explain why. >> are you sitting down? the state of virginia is going to start cutting hours for part-time workers, just so it doesn't have to pay for health care. what? that is exactly what the president said would not happen. we're going to tell you this nasty side-effect from obamacare will spread to your state. even when they say it's not, it is always about money. melissa: all right. let's turn to today's market moment. the bulls getting back on track. a rally for financials and some strong earnings reports pushed the dow and s&p 500 back towards five-year highs. the nasdaq saw a slight loss, led by 2.5% decline in apple's stock. the blue chips closed at their highest level since

october 12th, of 2007. the dow is just 145 points away from hitting its all-time closing high. can you believe that? all right, my fellow americans, tonight i present you with the "money" state of the union. we are putting forth our own take on the three most important issues facing the nation and assembled now is the most powerful, power panel of them all. fox business's very own, other fearless leader, neil cavuto. vp of business news. he is the big cheese. lanny davis, former counsel to president clinton and david stockman former budget director for president reagan. the author of the corruption of capitalism in america. all right. nice to have you all on here. i hardly know where to start. you were scribbling i while i was talking so i go with you. number one thing, 12.3 million people unemployed. people would like to work or more to pay their bills.

what will the president say or do about that. >> he will have a lot to say about it but there is nothing we he can do. we're broke as country. we can't afford one plug nickel for tax cuts or tax credits or infrastructure programs or job programs. we have to focus on our debt which is far worse than the president thinks. because he's basing it on a 10-year rosie scenario from cbo and omb that is a fairytale. the real problem is much worse because we'll not go 14 years without a recession or create 18 million jobs in the next 10 years. melissa: right. >> when we have only created two in the last. so i'm saying they should focus on the job of washington to get our fiscal accounts in order before we go over the deep end and not pretend that they can make a difference on jobs. melissa: neil, the president is sitting down. he is listening to this right now. he said david stockman makes so much sense. i'm tearing up my speech. i will say exactly what i just heard. what do you think, neil?

>> i don't know about that. i think david stockman always makes a great deal of sense. one of the things i love about david both parties get ticked off by him. what he is saying is true. now is not the time to be did link about this. whether you argue it is a time for more spending cuts and or increases something has got to be done to address this situation and nothing has to be done is at best naive. i suspect despite what the mr. stockman might hope to hear tonight i don't think we will hear tonight. i think we'll hear spending but in very crafty terms, like initiatives, strategic investments, fancy ways of spending money we don't have. i don't expect to hear much more clarity out of republicans. i think this budget quagmire will continue to exist. if anything the day's news out of treasury we had unexpected bump in revenue that led to a surplus in january will sort of take the monkey off their back and they figure we don't

have to do anything. that will be a shame on both parties to turn their back on this as a result. melissa: lanny, do you agree with that? our principle number two we have to get to is the budget crisis. neil is saying basically they will try and maybe sweep that under the rug since they can say today, llok at this, we were running a surplus. we raised taxes on 77% of the population. and as a result we don't have a budget problem anymore. >> first of all, i remember david stockman something of a hero of mine when he was taken to the woodshed for trying to tell the truth to ronald reagan and i believe, or was it president bush one, david, i forget when you were in the woodshed. >> reagan. >> in any case. >> i think it was fillmore. >> to be an panel following neil is very difficult. tough act to follow. i've called with governor tom ridge last week's "usa today" and through all my writings in my weekly column that messrs. simpson and bowles are the only ones who got bipartisan support for

facing reality and which david stockman has pointed out. our generation, mine and maybe before me, has done the immoral act of taking credit cards, running up debt and turning it over to our children and our grandchildren to pay the bills. i hope president obama steps up to the line tonight and says, no more credit cards. if i'm going to spend one dollar, it is going to be taken away from another program and i'm going to raise taxes, including on the middle class because we're not going to raise enough money from the upper class. melissa: yeah. >> and go back to the clinton tax rate era where we did so well and start paying down this immoral debt. melissa: david, do you have any hope of any of that happening? >> well, i think it needs to be talked about and i was delighted to hear lanny say that. because it is so obvious to people who aren't caught up in the beltway that the credit card is tapped out. we can't continue to spend

100 billion every month or borrow, by the way, the fed, i mean the treasury borrowed 137 billion in the last two months even though there was supposedly a short-term deficit surplus. that was due to a one-time dividend payments and capital gains at the end of the year. so that isn't meaningful. we can't have the fed continuing to borrow or to print 85 billion a month, which they're doing. this is a huge ponzi scheme. and i agree. we need to have a tax increase on everybody, the wealthy and the middle class. we need to reform entitlements and put a means test on the better off social security which means they wouldn't like it in florida. but you're not going to hear that from rubio tonight. we need to dramatically cut back the defense budget and allow the sequester to happen. they're running around like it is the end. world when in fact we would still have a defense budget 60% higher than bill clinton's budget and that was big enough as far as i'm concerned. melissa: this says nothing

of our place in the world. number three on our "money" list on the state of the union, our place around the world as we try to influence what is going on in the middle east as that explodes. you look at north korea and what is going on there, and do you wonder do we hold any clout in the rest of the world any longer or is it diminishing what clout we had. >> i always say much of the prestige owes nothing to us that is great but the rest of the world looks so sucky by comparison. i don't mean to sound irreverent here to the tallest pigmy in the room and say you're not a pigmy. to all of europe we look prudent but that doesn't mean we are. the harsh and cruel reality, if we turn the back on the gold men moment and democrats and republicans have so early in the new year to address these problems, next year at this time we'll be knee deep in midterm election planning and worrying and already crafting the 2016 election

on that strategy. we'll be trillions more in debt. i know there are a lot of fancy terms to use. this debt isn't so bad as percentage of gdp. it is actually okay. revenues as a percentage of gdp could actually go higher. there are all sorts of fancy ways could justify legalling well enough alone but we really can't leave well enough alone. sort of like if you get a new job and have a little bit more money, you think those visa and mastercards i have jacked up to the limit, they're not so bad. well they're still jacked up to the limit, aren't they? that is the reality. republicans and democrats both have to face. i don't agree with david the solution to hike taxes a lot on anybody. i know where he is coming from. there is good deal of spending to cut. i like to venture that before we go on tax hike campaign. i will say this. i don't see the appetite or direction, to lanny's point and his credit of the clinton years, all they had to do back in the clinton years, i say all, but they did it, my hat's off to them

show a direction that these deficits would get better. that this was a serious blueprint for getting this down to size. you don't have to wipe out the 60 trillion today. you just have to provide a road map. they do that that could be on the way. melissa: big cheese, i have to interrupt you before we run out of time we have to do the money meter. on a scale of one to money i want to ask you about marco rubio because very high expectations for his response tonight and i'm worried a lot of pressure. there's a lot of focus there. on a scale of one to money, david stockman, let me start with you, how do you think he will perform. >> i'm putting a two on it. melissa: a two? that is low ball. >> i think he will give a handsome speech but will have no content. more warmongering from the neocon point of view. melissa: and i don't think he is addressing the real issue which is how to cut the deficit and social security. melissa: lanny davis, what do you think, scale one to money? >> i think whatever the highest number is money that marco rubio will outperform expectations because david, television is not content.

it is a visual media and he will be very visual. melissa: okay. all right. big cheese, neil cavuto, i will let you go last because your vote is the most important obviously. >> i wish that were true. i would agree with lanny. i will give him a four i think he will measure up. i think he was like secret superstar at republican convention. gave the best speech. very good, articulate, reasoned in his approach for almost any issue facing the country and certainly vexing republicans. he will deliver with some sound solutions that might surprise you. melissa: david stockman, lanny davis, neil cavuto thanks for making this the best power panel of all time. >> ever. melissa: catch neil cavuto's coverage starting 8:00 p.m. eastern. according to "the new york times" the tesla model s sedan is not all it is cracked up to be. a times reporter take the car for a spin from d.c. to boston. to check out the new charging stations.

the review crashed and burn. tesla's ceo saying "the times" review is totally false. he has got proof. tesla ceo elon musk joins us on the phone with more on this. nice to speak to you again. i read a report you are incensed by this. is that right, elon? are you incensed? >> i am, absolutely. i think this was a deliberate attempt to gain a picture of the model s put on a flatbed truck. i don't think there is any other possible interpretation for what this reporter did. and we have the logs of the vehicle which he did not realize, the tesla-owned vehicle. the logs show that when he says he was doing 54 miles an hour, he was actually doing 80 miles an hour. when he said he turned the heat off, he is actually has the heat blasting at 74 degrees. so, it's just, he reported things that are flat-out false. melissa: he said that he barely made it to a charging

station in connecticut. that he had to turn off the climate control. you say that is not true. that you can actually prove that he had the heat on. he said he spent the night in a hotel. that the car had 90 miles on it before it went to bed. when he turned it on next morning said the range slipped to 25 miles. does that sound right to you? is there explanation for that. >> that doesn't sound right. i think the key thing that i think is really most bothersome is that on the final leg of the journey, we advised him that he really needed to be at a 40% state of charge to reach his next destination. we were very explicit about this. he deliberately turned it off at 28%. deliberately turned it off at 28%. and then drove the car completely ignoring he passed several public charging stations and kept driving the car until it stopped. now if, if somebody were to do a test drive of a

gasoline car and pulled up the car to quarter tank, drove past several gas stations until the car stopped, what would i think of that reporter? melissa: elon, let me ask you, they say in their statement, "new york times" the reporter followed the instructions he was given in multipll conversations with tesla. there was no unreported detour the he was never told to plug in the car overnight, in cold weather. why do you think, why do you think they would do this? if you feel like they're misrepresenting what happened, what's the motivation? >> i think there is a pretty obvious motivation. tesla received one positive article after another. it has been, i mean the press has been tremendously positive. writing one more article that just reaffirms that doesn't get any click, doesn't get any attention. but writing a article with a picture of a car on a flatbed, that gets attention. melissa: so you are saying they're trying to sell papers and get click throughs? the car has lithium-ion

battery. you've been watching stories with boeing and the like. does that give you pause at all? have you looked back into that? >> it is worth noting that we've never had a fire ever in any production vehicle over the course of six, seven years now. and including when the cars occasionally have been in accidents even during the course of an accident we never ever have a fire. people should not be concerned about lithium ion batteries if the architecture of the pack anticipates, and really focuses on safety and testing. >> what has been the response from "the new york times" to you and what would you like them to do? >> i think "the new york times" really needs to do a proper investigation of what this reporter did, and assess whether that is truly in line with the principles of "the new york times" values. because they have not done that. melissa: elon musk, thank you so much for coming on. i hope you keep us posted what happens with this,

because fair is fair. thanks for coming on. >> exactly. thank you. melissa: next on "money", don't keep promises, don't make promises that you can't keep. no one was supposed to lose their health care coverage from obamacare but some virginia state workers are getting a big slap of reef alty. more states could be right behind it. plus, the government giving away free cell phones to low income americans, what could possibly go wrong? a bombshell report reveals a special program rampant with abuse. more "money" coming up. ♪ . i had enough of feeling embarrassed about my skin. [ designer ] enough of just covering up my moderate to severe plaque psoriasis. i decided enough is enough. ♪ [ spa lady ] i started enbrel. it's clinically proven to provide clearer skin. [ rv guy ] enbrel may not work for everyone -- and may not clear you completely, but for many, it gets skin clearer fast, within 2 months,

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♪ . melissa: so it's happening. the one thing the obama administration promised wouldn't happen under the new health care law. workers having their hours reduced so employers don't have to pay for health coverage. guess who is doing it? the government! the state of virginia announcing a new plan to cut its part-time state employees back to 29 hours at most. it would save the state $110 million a year. makes sense. that money would otherwise be spent on health insurance. so will other state governments do the exact same thing? dr. sreedhar potarazu is the ceo of vital springs

technology. we have paul howard, senior fellow with the manhattan institute. dr. p, let me start with you, shocking. you're shocked, right? can't believe it? >> yeah, it is shocking. i do business in the state of virginia. so it is even more shocking that the state is making such a dramatic statement. you know we heard a lot of small employers up until now talk about how they're going to switch some of their folks to part time but the state of virginia has a lot of people especially in community colleges and teachers who are going to be affected by this. we're going to be now shifted to 29 hours. now unfortunately these employees, not only will be able to get health insurance but they're also going to obviously take a pay cut. melissa: right. >> and be able to pay for, you know, just survival. melissa: right. paul, i mean i guess what is shocking to me about this is that the government is making a sound financial decision. like they're weighing the options and they're sitting there, hey, look, if we cut

back we don't have to pay this. so i guess in a way i'm surprised but not for the reason you might think. >> you're seeing this echoed across the business community. melissa: yeah. >> every individual company will make a decision, based on the bottom line can we afford to do this. melissa: right. >> it is not surprising virginia will do it. it will be large across the country. it was one of the unintended consequences you could see coming that washington didn't pay attention to. melissa: dr. p, this is only the beginning and when you look specifically what is going on here, in virginia they're looking specifically at 23 two-year community colleges where they have tons and tons of part-time workers. a lot are teachers and professors. they could work these hours and achieve the same things and all the money, externality, health care of some type when the system gets up and running. they won't have as much money as they had before. >> we hope they will get health care. we're banking on the fact that the state level exchanges will be up and

running and that people by this october, which is not that far away, are going to be able to go on to these exchanges and pick some kind of health insurance plan if they're not getting it through their employer. but as we all know there are still so much work that has to be done in terms of the regulations and the exchanges actually being put up that a lot of these people who are now losing their benefits could be left with nothing. melissa: right. paul, i mean that is a real danger. as we look at this we're getting closer and closer to the deadline. you look here, this could be a state law in virginia at least things to language inserted into the state budget. but that law could come into effect long before the we could see the government apparatus up and running to get health care. these people may find thanks to obamacare no health care and a smaller paycheck. >> 20 states said they will not set up health insurance exchanges. the fedex changes are

running behind. they have not set up all the rules. the coverage will be very rich and expensive. people will get sticker shock along the way. this will be a embarrassing moment for the administration. melissa: without question. dr. p, in the long run i think this results in a two-tier health care system. the health care that people can afford to pay extra are forced on to together and does not have enough doctors serving it. once again, you have the people who are wealthy and can always take care of themselves paying a higher price for private health care that they know is going to be good. >> i think we're really headed towards a one tier system, i think you're right, melissa. those that can afford it will find a way to get concierge service. melissa: right. >> or some kind of fee-for-service and pay cash for it and that will never change. melissa: yeah. >> but clearly the system is converging to a single-payer system where either the states are going to defer to the federal government to try and put in place these exchanges, or you're going to find, you know, a lot of doctors and hospitals now

conforming to a single system. and everything that we've seen so far lends itself to that. melissa: all right the thanks to both of you. appreciate your time. >> thank you. melissa: coming up on "money", surprise, a government program that gives away free cell phones to the poor is being abused but the real numbers are even worse than even its biggest critics could have imagined. stay here for the shocking details. plus, north korea detonates its most advanced nuclear bomb yet. and rogue states could be lining up to the buy the technology like it is black friday at wal-mart. we're going to explain that. do you ever have too much money? ♪ . twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to reink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors

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♪ . melissa: stunning new information about the government's lifeline cell phone program that gives free phones to the poor. the program has always faced criticism but a new report

from the fcc shows just how bad the program was being abused. a survey of the five lifeline cell providers found that 41% of nearly 6 million recipients didn't meet the qualifications needed to be part of the program. 41%! keep in mind, this is being paid for with charges on your land line, or cell phone. here for more on this one is spencer, who reported this story for "the wall street journal" and your website is blowing up. everybody is focused on the story. 41%!. >> that is like half, waste. how was this discovered. what is the abuse, give me more? >> sure. well the government began a reform program of this lifeline in 2010, a year after julius genachowski took over the fcc. there was concern people were getting subsidies for the phone service when they

weren't eligible. you have to get medicaid, food stamps or other government assistance programs to qualify. the problem was the rules written for the program were just really poor. so customers self-certified. you could go up to a carrier's store, say i'm on government assistance and they didn't have to document it. melissa: doesn't have to provide proof. just say yes. >> did that. there was no verification of one lifeline service per household. you had households getting more than one lifeline phone. the fcc woke up to this. they started cracking down. we got ahold of some data, right? they had to recertify all the subscribers last year, all the carriers who did this. we got a early look at some of the data. they showed 15% to be weeded out because of the reforms. and of these five top providers, 41 as you said were deemed ineligible they didn't qualify or didn't respond to the request to certify. melissa: i mean, it is really amazing. it shows you may have the best intentions when you start out, because of course

that is whaa everyone says you have people who are poor, can't afford phones, this and that. you need to call 911 and if you have children and trying to get in contact, emergencies, that sort of thing, there is no pay phones anymore. this, that and the other thing. when you involve the government you end up with 41% waste. that just is, sort of the lesson again and again. they don't do free stuff well. >> yeah, it is definitely a cautionary tale about the risks of government running certain programs. you know a lot of people are criticizing obama for this, that is part of the reason why it has become one of the, read story on -- i want to be clear. the program actually started under ronald reagan administration in 1984. after they broke up at&t, the government was concerned that local phone rates would go up really high and people couldn't afford phones. so they create ad subsidy to help offset that. in 2005, under the bush administration they expanded the use of the program to include prepaid carriers,

carriers that don't require a contract. that is really drove the growth over the last few years, is prepaid carriers like trac phone and companies like that. so you have to give the obama administration some credit for actually realizing there was problems and saying, hey we've got to fix this. melissa: how do you fix it from here? you're talking about going in and certifying that people only have one in a house and that they receive other programs. people are looking at it cell phone?ou really need a track phone is giving android phones to people to help them find a job. it is unclear these things are realistic and they aren't set up for abuse. is there any way to narrow it so it covers the most basic function which is safety? insist it is a land line without a cell phone? are there changes that need to be made beyond certifying basic rules. >> there are many changes. just to be clear the program includes land lines and cell phones.

everyone wants a cell phone now that is driving the growth. melissa: that is more ripe for abuse, people walking around doing whatever. >> hide in your house. like other things they were weeding out is nonusage. a lot of companies would give out the phones. people would buy them. some people just didn't use them because, you know, there was, there is potential fraud here right? there is one example --. melissa: buying them and selling them. >> they were selling unsolicited phones to people that didn't ask for them. so no wonder they didn't use them. they got rid of that. the big issue is the dupely cats. the process is still taking effect. these savings from this, talk about the money, government saved over $200 million on reform. they're expecting over 400 million this year and over next three years, $2 billion in savings. melissa: but that is saving on money we're spending. not real savings. >> better to save it than not save it. melissa: thanks for coming on. we appreciate your time. >> yeah. melissa: up next north korea gives the world the finger

conducting its most successful nuclear test yet. rogue states like iran could be lining up to buy the technology. we have got the details. plus sometimes a video says a thousand words or maybe just leaves you speechless depending on your gender maybe. "sports illustrated" drops big dough on the new swimsuit edition. is it worth every penny? piles of money coming up. [ kitt ] you know what's impressive?

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melissa: north korea is at it again, conducting its most powerful underground nuclear test to date. the question is how close the nation is to being able to launch a nuclear bomb that could hit the u.s. here to talk about the threat is gordon chang, author of the book, nuclear showdown, north korea takes on the world. welcome back to the show. what do you think? so how big of a threat is this to us? >> well i think it is pretty substantial. first of all we've got to remember the north koreans crossed two very important thresholds. they launched a three-stage missile in december, successful, put a satellite in orbit. with a few technical adjustments they can land a nuclear warhead anywhere and of course they just test ad powerful weapon today. if it is a minute tour rised weapon it is more impressive. in three to five years they will be able to incinerate any city on the earth.

this is a militant and unstable regime. >> absolutely and beyond that there are other nations line up to buy these systems from them. you look at north korea. they make no qualms about why exactly they're developing this weapon. >> yeah. melissa: iran at least says, oh, it is for energy. we're not really developing weapons but not these guys. >> yeah, in 2003 the north koreans told one of our diplomats they reserve the right to sell anything that they make and they have been selling nuclear technology to the irrainsians. that reactor in the syrian desert destroyed in september 2007 by the israelis, that was paid for by the iranians, a north korean reactor. the north koreans sold them processed uranium in all possibility. of course all the iranian missiles are north korean ones. melissa: you succeeded in terrifying me. is there anything we can do about that? what does it mean? >> most people say there is nothing we can do because we're sanctioned out and we applied all the sanctions we can but that is not true.

in 2005 the bush administration put in sanctions that cut off the north koreans from the financial system. you talk about it being money? to move money around the world they had to put it into suitcases to diplomats who acted as mules. we lifted them in 2007 at the behest of beijing. if we do that again we'll get their attention. melissa: i'm looking at our own interests but what about everybody else? >> this is a very volatile region. perhaps the most volatile right now. you have the chinese and japanese going at it. the north koreans hate the japanese. and i don't think that they would launch at anybody but they're certainly not going to launch at us but they could launch at the japanese. that would really be awful right now because essentially the chinese and the japanese warships in very close proximity to each other. the chinese are using targeting radar on the japanese. this is a very provocative act. then you have the north koreans. they explode this nuclear weapon. they probably are going to

explode another one very soon according to south korean intelligence. this will really roil the region. melissa: do you think that hams? what is the next step. >> the next step they will go to the security council but they're not going to do anything. they haven't done anything in the last two decades. the next step is up to us and we need strong leadership in washington because we don't have very much time to put north korea back in the box. melissa: thanks for coming on the show, you're always terrific. appreciate it. time for today's fuel gauge report. opec and the u.s. energy information administration both raised forecasts for oil demand growth. opec and the eia say world consumption in 2013 will rise quicker than they expected. the news helped send oil prices up 48 cents, settling at 97.51 a barrel. getting close to 100 again. u.s. regulators approved cnoc acquisition of canadian oil giant nexen. it is the largest foreign

takeover for china's state owned oil giant. a milder weather forecast took a bite out of the natural gas futures. they fell for the third session in the last four. all right. do we really need to say anything when we put this on the screen? here it comes. kate upton. she is coming, i promise. there she is. the new "sports illustrated swimsuit edition". it is about to make bank. we've got details next. at the end of the day, it is all about money. ♪ .

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melissa: my goodness. heating up newsstand today the prized 2013 "sports illustrated" swimsuit issue. kate upton, landed on the coveted cover for the second year in a row. naturally the marquee shot was taken in antarctica which is likely filled with babes in bikini all the time. "sports illustrated" invests heavily in the issue each year. they spent seven months traveling to all seven continents. to tell us why it is worth it is fox business's very own media messiah, dennis kneale. >> nicely done. this is big business. sports illustrated is a economy --.

melissa: you can't even keep a straiggt face here. you're trying not to look at the cover while doing this go ahead. talk. >> oh, my god. melissa: dennis what is it? >> i'm having to do this story all day long. basically an elaborate excuse for running gorgeous pictures of the gorgeous curvy kate. she is anti-twiggy, the best then of all, she is american. si will probably sell 35, 40 million dollars worth of ads just in this issue. it will get 40 million visitors on the website to this thing. more important thing --. melissa: you're doing a great job. >> markets. it turns out that kate, when she was on the cover a year ago, stocks rose 16%. melissa: you keep touching that. >> so you got to wonder whether there is a trend there. investment firm called bespoke investment group looked at 35 years of covers because there always been a thought. found when an american woman graces the cover, stocks rise far higher than when a foreigner graces the cover. so in the years when an american woman graced the coverer of the swimsuit

issue, stocks roseanne average 15%. s&p 500 that is compared to 10% --. melissa: i have to give you -- >> for foreigners. melissa: i have to give you so much credit because you had to come up with a angle. >> to run video like this. melissa: my hat is off to dennis for coming up with something somewhat serious to have a business angle. >> there is something a little wrong with the fact that all of these pictures of these knew bile nymphs all young enough to be your daughter. melissa: not mine. >> kate is not yet 21 years old. there is something disturbing about that as you get older. melissa: okay. so here's my question, we've watched video, seen all the photos. we had some models here in the building today. they have been everywhere. they're on "letterman". why buy the magazine? we've seen it all. it is on the internet. it's everywhere! really make money off this. >> here is why the print platform survived for 250 years. it's incredibly high resolution.

never needs rebooting. never goes on the fritz. can you say that about your iphone? melissa: really. >> plus you can rip it out and take it with you. melissa: what are the stats? do they make money on this. >> they make a ton of money. all the spinnoffs with the calendars and posters and specials. melissa: do they make money on the actual magazine. >> sure. sports illustrated is very profitable magazine still. a lot less profitable than it used to be. time warner magazine is cutting jobs now. even when online is here slick magazines with gorgeous beautiful photos, be careful what i'm touching --. melissa: you already touched the chiefage a bunch times. i didn't want to point that out. >> they want to do a quiz. talk about market indicators. which is the strongest market indicator? i will ask you. we've got four here. the january effect, we've got hemline length, as hemlines go up, stocks go up. melissa: right. >> we have got super bowl win, nfc or afc team? that is another long time

thing. and "sports illustrated" cover model. which is the best indicator. >> i go with number five the chiefage indicator. four inches is like 15% in the market. i think that is the best indicator. >> kind of release animal spirits, doesn't it? turns out that, if you look at these four, "sports illustrated" cover is 88%, stocks up 88% of the time. football super bowl is --. melissa: coverer model? >> it is 88% good predictor. super bowl viii 0% right. 80% of the time. hemline length. they looked at that, can't find any length at all. the january effect which we saw, the idea that stocks go up every january because we feel optimistic. capital system optimism monetized. you need january effect. we feel pretty good about january and that is 90% accurate. melissa: dennis, you are wonderful. you powered through that in spite of all the videos and distractions we tried to throw you off your game. you're the best. >> i'm hoping to hear from

kate. melissa: got about 10 in your office? you're all set. >> i could use this one. melissa: the guys on the crew want it. they're fighting over the other one. >> i bet they are. melissa: denis neil, thanks so much. would you bother buying the "sports illustrated swimsuit edition"? she is everywhere. most of you said no. i don't know if i believe that. thanks to those of you who said would only buy it if i'm in it. that is so sweet. i don't believe you. it was sweet of you to say that. we want to hear from more of you. follow me on facebook.co facebook.com/melissafrancisfox and follow me on twitter. @melissaafrancis. it is a zombie apocalypse. the emergency message in montana gives residents one hell of a warning. you can never have too much money. ♪ . twins. i didn't see them coming.

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we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink late [ male announcer ] hold packages at any fedex office location.

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follow the messes on screen that will be updated as information becomes available. another attempt to approach her apprehend these bodies, as they are considered extremely dangerous. a repeat. melissa: that is very scary. i don't get it. did the zombies come when you make the pancakes? they're heading our way. all right. we are kidding. what happened was someone hacked into a local television station in brazil alert system interrupting programming to send out a messes the zombies are among them. a hoax, but the local station is still investigating a what happened. they are not commenting on the situation. would you believe it or would you go by the pancaking? >> first of all, the company that put out that at i would be really, really upset and i would want to read emma commercial. i know something a little bit about hacking because my e-mail was sent today. not a big fan of hacking. you know, people think that this is a prank and it is funny. actually, we are getting more and more of this. twitter acting, e-mail racking.

>> hacking, you know, the upper east side of manhattan do. you know, but, no. [laughter] >> and a for extra credit. somebody inside the station. melissa: you think it was an inside job. >> absolutely. unless they have an outside control room you connected to the system. melissa: it will have to do more reporting and you bring is the answer. next up, this one is disgusting. it is raining spiders in a small southern brazilian town. here it goes. thousands of spiders spun together a massive web so it looked like it was raining spiders. this species is actually rather new and has only been steady for about 20 years and is known to be a social spiders that gathers in large colonies. >> how are you doing. melissa: they have to beat together. the spider apocalypse. >> it's horrifying. >> as social spider, what are