ashley: good afternoon, everybody. i'm ashley webster. lori: i'm lori rothman. we knew they were coming, but after unsuccessful talks with congressional leaders the president signaling sequestration is set to hit by day's end. the "wall street journal" joins us on washington's and the military to deal. ashley: wild swings for the market to finish of the week. stocks clawing back after being down more than 100 points in today's session. the dow yet again within striking distance of a new all-time closing high. lori: and cyber security fears

realized. mcafee gives fox business exclusive access to its control center as engineers track the latest threat. updating you now on the stock market as we do every 15 minutes, it's back to the floor of the new york stock exchange to check in with nicole petallides. close to session highs. >> reporter: close to session highs, close to all-time highs, another exciting day on wall street. dow jones industrials up 46 points at 14,101, the ethier index taking a breather. it was gaining during the president's speech to abide that pulls back. the dollar is strong. of course that always weighs on digs around here. we have gotten into economic news. the manufacturing index. the fastest pace of expansion in 20 months. fifty-four. it is a month-to-month number. let's take a look for the week. dow and s&p and what we're looking at. clearly a winning week. the dow closed at 14,000 even.

14,100. and the s&p 500 as well. close enough to give this. so of water as well. as far as the major averages, some of the best performers, bank of america, walmart and what is. lori: not the same story for commodities. ashley: not at all. among some of the reasons bush in the lower. oil prices pushing to the lowest level holding below $91 per barrel. so far this week crude down more than 2%. fox business kutcher reader, price futures in the pits of the cme. a combination of factors pushing oil or? >> reporter: you bet it is, ashley. if we elected the fact that the chinese manufacturing data was very weak, you know and, of course, concerns about the u.s. economy and the sequestered. a lot of reasons for it going down right now. the other key things that are being talked about is this report that there were 14 tankers ready to go filled with

oil. 80 percent full, ready to go. that is also making the rounds in the market. definitely you have to look at the dollar. you have to look at some other things. we have had a wild ride. the good news, i will give you some economic stimulus gasoline style because futures also hit the lowest level since january. they have come back a little bit , and they seemed to come back on the consumer confidence number. and that number came out it seems to suggest that consumers are saying, hey, maybe we can sell for gasoline. because to spend some money. that is amazing when they're not making as much with the market definitely going back up. the other thing you are seeing is a readjustment of the heating oil gasoline spread. that was totally out of whack, totally and seasonal. gasoline leading the pack, heating oil bill and the other way. it seems to be going more to normal. we're down on heating oil, gas. good news if you want lower gas prices. back to you. ashley: very quickly, how low could we go given the factors in place right now?

>> right now the market is filling a gap on the oil right around $90. this is going to be a key support area. long term maybe 88. ashley: very good. thank you very much. lori: you may have noted all along. no deal can stop the automatic spending cuts from kicking in. live from the white house following president obama's meeting with congressional leaders and the discussion with the press earlier today, peter. >> reporter: that's right. the president met with congressional leaders for a little under an hour earlier today. the four leaders meeting to try to come up with some kind of deal to avoid the sequester, but they met expectations with no deal. after that, the president came out to make his case to say we walked back from any kind of sense that these cuts will cause some kind a major crisis. he said that they will unfold gradually. they will hurt the economy, job

creation, government services for voters and that if that happens heels republicans will then get the blame for this and then come back to the table and gave on replacing the sequestered with another package that includes tax increases. after the meeting the speaker came out to the microphones and sounded like he was ready to pick that fight. >> we will get through this. this is not going to be a apocalypse as some people said. it is just dumb. it's going to hurt. let's make it clear that the president got his texas accent january 1st. the discussion, in my view, is over. it is about taking on the spending problem here in washington public -- >> reporter: as far as we know the president has not signed the paperwork to get the sequester

rolling but he has until midnight. lori: peter barnes. ashley: one minute until midnight. an internal power struggle at goldman. you would be next in line to lead. the man who tuned in on all of this, charlie gasparino. >> reporter: if their goldman steve dropped dead tomorrow he would probably get the job. that is true. that is what i wanted to read. but their is a bigger internal power struggle going on about who is going to run it. this is the interesting thing. when i did this story a couple of days ago i told you about the number two becoming essentially the defect number one is lloyd blank vine leaves. the problem with the story was that it is only half the story. the real story is if he leaves tomorrow, if that man gets hit by a bolt of lightning or just its upon the rocks had a bad and wants to hang in with his billions of dollars in the

hamptons, the gatt is going to get it on an emergency basis, emergency basis is the number two. the problem is long-term, there is a power struggle going on, and it is going on between two major players in sight. yes. he represents the trading part of the firm, but the other guy that is involved in this is something that you don't hear a lot about. a huge player. ran their asian division. a lot of the chinese ipos. middle of money. the power base from the banking side. from what i understand, there is a battle royale going on right now in terms of a long term, though long-term replacement for lloyd's. i can tell you, they both have their negatives and positives. positives, both of them have been around since 2006. understands that balance sheet better than anyone else. positive for evans, makes a lot of money, represents the banking side. people think that goldman sachs was left dead to less command

that is the theory for both of them going in. it's about time we have as somebody else in charge. known as nakedly ambitious. i am nakedly ambitious as well. the insular culture of goldman sachs, looking -- they hate the fact that we are reporting this. people call up later on and they will deny this. i'm telling you, this is absolutely true. that place, well behind the scenes. we have some insight. talking to people the work there, people that had worked there, people that know the partners. remember, still in many ways a partnership. this is what they are saying, and it is very unclear where the board is leaning. ashley: who has more internal

support? >> reporter: nobody knows. that is one of the kabuki things. they have been making the rounds. they have been doing in other places. kind of quiet, but if you notice. he is very politically correct. he gets it in the short term. does not show any inclination to leave. ashley: that's going to be a problem. lori: intrigued. ashley: fully close charlie gasparino. thank you. lori: from one crisis to the next, the sequestration set to hit less than one month from today in the government runs out of money. the inability to reach a deal. the next battle ahead. ashley: also, take a look at metals. we know that the dollar is strong. gold also losing ground today. silver slightly higher. copper moving slightly lower.

manufacturing numbers in china and europe did not help. we will be right back. ♪

♪ ashley: automatic spending cuts kicking in by the end of the day. time for congress to stop fighting their next battle or else the government will basically run out of money on march 27. rich edson is live in d.c. with the latest. >> reporter: info a different budget pieces moving in congress right now. the most pressing is funding the federal government beyond march 22nd when a large chunk of federal spending authority expires. already a movement to avoid it. the house will pass a bill next week to fund the federal government for the rest of the fiscal year. republican aides said they plan on setting spending levels that include these automatic spending cuts that is the sequester. though, in a way, that blunts the impact, especially when it comes to defense. president obama signals that that is a bill that he could support. >> is the right thing to do to make sure that we don't have a

government shut down. and that is preventable. we have a budget control act like we agreed to a certain amount of money that was going to be spent each year. uncertain funding levels for our military, education system, and so forth. if we stick to that deal then i will be supportive of sticking to that deal. it is a deal that i made. >> reporter: both sides said they want to avoid a government shut down, but there's a lot rigidities for the syrian a gridlock before the march towards of the deadline. even if washington wants the government, automatic spending cuts are still on the books, and the debate over the will likely continue through the rest of the year, perhaps the rest of the decade. back to you. ashley: all right. thank you. lori: from one crisis to the next. we are joined now with more of washington's inability to get anything done. senior economics writer, very prolific other wall street journal. thank you for joining us again.

the battle for the continuing resolution to keep the government-funded. had you keep see -- seal is unfolding. >> even having this debate for two years. all of this goes back to remember those debt ceiling debates that we had back in 2011. here we are, the first day of the sequestered both sides are still worthy are at the beginning of this. republicans are basically making the case, look, you got your tax increase, mr. president, in january. so i guess the answer to your question is as i talk to the republican leaders and some of the others and some of the of the major committees they're saying right now they're hearing from they're constituents. they have to cut something when they have a trillion dollar deficit. for not going to do this to know what are we going to do? i think they are a total waterheads.

overplayed his hand a little bit with some of the scare tactics. lori: you think republicans are confident because some pundits are suggesting that republicans are very nervous heading into the 2014 midterm election. >> i think they're feeling confident right now, but as the sequester rolls on it gets more severe as the weeks and months roll forward. so ask me to or three months ago the republicans are still feeling confident about this. but right now the mood is, they're not going to cave in to the president. the president actually agree to the sequester process back in 2012. this was something that he helped set up, so i don't -- o.c. much changing. i think the one thing that could really change the whole equation if the president says, look, i will agree to some entitlement reforms and those big boulders of the -- you know, the obamacare, medicaid, medicare, social security, food stamps if we reduce the cuts in domestic programs. i think that is something

republicans would go for. lori: right. your colleague wrote about that earlier this week. perhaps those sides might be closer in agreement that either me realize by way of what you just said. democrats may be in favor of some internal reform. entitlement cuts and republicans agreed to close the loopholes. >> yes, except that the republicans, want to be very clear on this. when i talked to republican leaders of the essays and we talk about closing loopholes we want to use that money for tax reform. a little bit of the two sides pat -- talking past each other. very different. i still think that two sides are pretty far apart. in thailand reform is the key thing. the president has from time to time put internal reforms out. then he kind of next and back. that could be the solution to this. but look, i am an economist to does not believe that this is the end of the world. we have these 50, $60 billion

cuts. this is about a quarter percent of gdp. the world is not going to cut. i don't know about new york, but in washington d.c. the sun rose in the east this morning. lori: the market is starting with an all-time high. we had the revision on the fourth quarter. not great, but out of negative territory. not contraction area. that is almost as if their is a disconnect between this constant logjam. and really what main street is feeling. >> you really have to tip your hat to the business, you know, american businesses and employers, that they're able to keep growing. you know, the housing industry is improving. even though washington seems to be doing everything they can to screwed up. lori: with a great place to leave it. ashley: that encapsulates everything that has been going on. he's the best.

second only to you. as we do every 15 minutes, let's check the markets. nicole petallides on the floor of the nyse watching tech moved. >> reporter: let's start off with a well-known name. apple. 434. it actually hit a new 52 week low today, down to just under 2 percent at the moment. he did have credit suisse talking about they're numbers and expectations. they cut their forecasts for iphone shipments by 11% to 158 million. you know what that means. that would trim the full year earnings per share by roughly 6%. they want to look into these numbers again, but what it did is actually hit apple. as you can see coming down over seven bucks. , we take a look at into a surgical. despite an fda investigation this stock is up almost kidnap%. they want safety data on the surgery robot, but both suggest the probe is no reason to derail the upbeat sentiment we have

been sitting on this particular name. ashley: nice gain on that. thank you very much. all right. struggling groupon ousting its ceo. interesting comments. does the shake-up bode well? lori: best resignation letter from icl ever. more on that to come plus predicting the stock market's past using twitter. nearly 90 percent accurate, charting the market's short-term movements just by monitoring twitter. all right. let's check the dollar today. weigh on stocks a little bit. not too bad. the dollar is down -- up, rather against the euro. back after this. ♪ dad, i'd put that down.

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♪ >> twenty-four minutes past the hour, marcel level with your fox business minute. the catholic church operations are being run by a committee as the cardinals prepare to choose a new pope. meanwhile, the vatican spokesman said the pope had a quiet evening last night at the papal summer residence.

after is an emotional resignation. a voluntary evacuation order has been lifted for the residence of riverside, california. firefighters say that 200-acre wildfire that erupted wednesday is 30 percent contained. the blaze damaged the house and initially left 2,000 residents without power. electricity has been restored. and the faa is looking into the latest craze to hit the internet. a group of students participated in the harlem shake. dancing in the aisles of aircraft, airplanes. the faa want to know what phase the flight was enduring the dance. frontier airlines says the seat belt sign was off and that safety measures were followed. and those are your headlines. did you get back to ashley. ashley: thank you. i don't know, you know. seeing everyone dancing around might make me a little nervous. lori: something like traveling with that many kids. ashley: no more than one person near the cockpit because of the

fear of terrorism. well. lori: all right. ashley: i tell you what. a giant banana in there, too. more trouble for the motor city. lori: machine governor officially declaring detroit a fiscal emergency stating today that he would wait on the appointment of an emergency manager over the city's finances until after the cities to invest the appeals process. snyder says he already has a candid in mind for the emergency management but declined to release details. detroit is facing monumental financial had ways, including headwinds, $327 million budget deficit in more than $14 billion in long-term debt. ashley: of course the mayor and city councils a note. lori: that as a whole to climb out of, for short. ashley: may need someone to come in and clean house. andrew mason is after groupon, his severance says not well today's ceos. indeed. shibani joshi has the details. >> reporter: so many things to talk about when it comes to this story because this one is a good one.

a greek, this is probably the most interested in a colorful way any tax ceo has certainly resound -- resigned in might recent memory. he is controversial, and even the way he resigned as controversial, putting out an employee the -- employee letter. i was fired today. if your wondering why you have not been paying attention. one thing is not controversial, the amount of money that he is leaving with is quite small when you compare some of the most recent things we have seen from ousted ceos. in fact, he is going to leave with just hundreds, if not thousand dollars. he is entitled to just 4,344 hours in total compensation according to a recent sec filing. that is partially based on the fact that he urged a $756 in 2011. dick a salary cap from $180,000. but no fear and no matter because with stock options compensation he owns 07% of outstanding shares and is worth more than $208 million.

groupon shares have been under pressure, basically since they won, down 75% since ipo. a host of issues. dressing up to this employee letter saying that from controversial metrics to two quarters and missing our own expectations and the stock price that is hovering around one-quarter of our listing price. the events of last year and they have spoken for themselves. as ceo i am accountable. he's funny, what is also accountable, and i think this is something that everyone has been talking abouttand finally seeing materialized. ashley: writing on the wall. how does this tree reacting? >> reporter: obviously reacting positively. stock is up today, but keep in mind, this is only part of the problem. the stock fell about 20 percent the day after the company's earnings released. this is only a partial solution. overall what i am seeing today, ashley, just the analysts committee weighing in on the viability of these groupon type companies as a whole class.

rear talking about amazon, which has a similar sort of deal. groupon, google, living social. questions. it is a hot industry, but will it survive? will willis morphin to? groupon ceo is just one of the latest casualty. ashley: thank you so much. always says something when the ceo gets booted in the stock goes up 45%. that's kind of like see you. lori: was very cool about it. the keyboard to of losing his group of 40 pounds as well. a lot of laughs but a lot of serious sunday after respective. sox are climbing back after being down more than 100 points. back on the floor of the new york stock exchange next. ashley: sales of new cars and trucks in the u.s. continue to rise in february. said real hot commodity. they can't find enough new cars to meet the surging demand.

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lori: time for stocks. let's head back to the floor of the new york stock exchange. nicole petallides. nicole, the dow is trying almost desperately to reach the all-time high. >> it really is. it really is. get excited. we're 83 points away from the all-time highs we set back in 2007. i'm talking about the closing highs. that is the first milestone we want to get to if you're a bull out there. want to look at a name on the move on wall street. certainly one grabbed a lot of headlines, that is best buy. it is down one-third of 1%. there are two stories

surrounding best buy, the founder richard schulze who worked with private equity investors to try to take the company private. he is out. that deal is not happening at least for now. the second thing they're doing better at sales of after two years of dwindling sales at the holidays, they're doing better. that is good news. back to you. lori: nicole, thanks as always. ashley: february a good month for automakers with february posting gains. the real hot market is used cars. that is if you get hands on inventory if you're a seller. we have a co-owner with more on lengths he has had to go to keep used cars in stock. doug, thanks for being with us. you have experienced this first-hand. why is there such a shortage of used cars? >> well it is a pleasure it be on the show, the reason there is a shortage, 2008, 2009, 2010, we only sold ten.5 million new vehicles year. we were trending 17 million

prior to that in 2007. there is huge shortage of vehicles. this year there will be approximately 20 million vehicles available under seven years of age. normal i it is about 24 million. we're down 20% in available use cars for resale under seven years of age. so when you are looking at 0.5 million used vehicles sales we'll have a crunch. we're out there trying to buy any and everything we can in the used car market. ashley: what, to what lengths have you had to go to find new inventory, new stock? >> well, we're doing creative stuff. we have billboards all over town. we have box trucks that are lettered up. some of the creative stuff we're doing, scraping web sites like "auto trader".com, cars.com, craig's list. you scrape these. he immediately call private individuals selling vehicles or send them a ex-t, try to make contact, to try to buy the car directly from the individual. we find out one out of four times they're looking for a car. we're able to sell them

something. our goal is to buy preowned vehicles. my father had a saying a car well bought is half sold. we're spending half the time finding cars and half the time selling them. ashley: when there is not enough supply, prices go up. is that the case? >> absolutely the case. right now the average used car is $11,300. 1-year-old cars is closer to 20 some thousand dollars. prices will be up. gross will be up for dealers. there will not be enough inventory. what really makes it tough, a lot of people today with impaired credit. we did a study with the credit bureau. over 40% of the people applied our at dealerships ad beacon score over 600. they scan only get used cars. there will be high demand for preowned vehicles. there will not be enough inventory. the manufacturers are basically advertising used cars. 17 a month lease for 24

months, cars depreciate more than 187 a month. they're creating a market down the road for preowned vehicles. they will be back up to 17 million soon. ashley: get to the point prices go up so much, prices start to get better if your credit is not too bad. you can get great deals on new car, the payments might work out almost the same as used vehicle. >> payments might be less. majority of people in our market are payment buyers. they're not cash piers. so that fact is true. again creditworthiness comes into play with that. we're looking for a good year with preowned vehicles. i tell you. i think it will be a major shortage right now. again we're spending all of our time out there trying to buy cars. selling them doesn't seem to be problem. buying right used cars seems to be an issue. ashley: wish you best of luck. thanks for coming in speaking to us today. appreciate it. >> thank you very much. lori: a well-bought car is half sold. that is the quote. ashley: great quote. >> absolutely. we'll switch from, --.

ashley: cars. lori: old economy to new. how about that? ashley: there you go. lori: what does it take to stop cyber hacking? we look at mcafee's cyber team operates. adam shapiro is live inside mcafee next. ashley: look at 10 and 30-year treasurys. ten is down to 1.85%. as for the 30-year. the same story. down 2. we'll be right back. ♪ [ indistinct shouting ] [ 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 onhinkorsw from td ameritrade. ♪

>> i'm dennis kneale with your fox business brief. shares of chesapeake energy are trading down on news the sec is investigating the company and its ceo aubry mcclendon. regulators are notifying the company that an informal inquiry has gone into a formal investigation. the sec is looking into a program where mcclendon received a share in every well that chesapeake drilled. u.s. factories expanding for the third month in a row and at the fastest pace since june 2011. the institute for supply manage anti-index of manufacturing activity rose to 54.2. sacramento mayor kevin johnson getting financial help in the fight to keep the nba kings to from moving to seattle. ron berkle and they are offering to buy the kings from the current owners the maloofs and keep them in

sacramento. that is the latest --

lori: cyber attacks are on the rise and efforts to stay ahead of hackers are in high gear. adam shapiro is live from santa clara, california, where he has exclusive access to mcafee's world headquarters. adam? >> in the last hour we told you about project blitzkrieg which an engineer here at mcafee first discovered and verified and we put everyone on alert on this. these are actually, what you see behind me, this is actually malware that is attacking computers worldwide. mcafee's slogan, safe never sleeps. they never sleep at mcafee because the threat is constant. i want to introduce to one of the co-presidents of mcafee. he is here to talk about the steps that mcafee is taking to protect its customers. thanks for being on fox business. >> thanks for having me. >> cybercrime alone globally,

$110 billion annually and growing. this is a real threat, just before we came on air you were telling me, boardrooms, the boards of directors didn't start to take cybercrime seriously until just four or five years ago? >> right. i think the threat levels have increased so much as well as requirement for disclosure of breaches, the amount of increased activity among consumers on identity theft as well as monetary theft really brought this to a new level. >> as you and i are talking we found out just here in the united states we're talking about cybercrime. that totals $20.7 billion annually. what you can see behind us is, the global threat, security threats throughout the world. this is mcafee is monitoring this. every now and then you will see these kind of things. you see these right now. these are as we're talking, threats, 55 billion a month that you guys are tracking? >> yeah, what happens here, a global threat intelligence team, we have 100 million devices around the globes

that give us feeds about traffic patterns and malware detections taking place around the globe. that is what the global threat intelligence team is doing, building this database and building reputation around the threats we see that help us protect consumer enterprises. >> the mcafee story, we were talking about safe never sleeps. we have 500, what i would call engineers, security researchers, who are constantly watching these kinds of threats but mcafee is unique in different, say from other firms that engage in this. how is that? >> mcafee is the only security company in the industry, looks at end point, meaning desktop, that could be your laptop, desk book, mobile devices, smartphones, the network activity that takes place around different is about, governments, education. looking what happens to all of those end points, collating that into a management site that goes up to the global threat intelligence database. we're the only company that really looks at all vectors

of attack. >> when we were talking about at the beginning of this interview we were talking the board of directors not taking some of this seriously until the last four or five years. does the image of a hacker being a teenager nothing better to do. it is sinister than that. organized crime is behind this. >> when you look at many attacks, they're well funded, professional organizations that have very talented people. one of the key things mcafee is doing, especially with intel, how we get at university it less where the bad guys can't see us. that is whole defender and deep safe to is about. it is giving below the os, the operating system to where we can see what the bad guys are doing and the bad guys can't see what we're doing. >> this is technology that mcafee is pioneering? you're in the lead on this. >> right, with intel. >> i have to ask you very quickly what do you lose sleep over at night regarding these kind of attacks?

>> what worries me the most, look at governments around the world they're using threat vectors for both offensive and defensive approaches right now. >> todd gephardt, senior co-president at mcafee. appreciate you being on fox business. we'll continue a exclusive tour what they're doing here at mcafee. we'll update you on project blitzkrieg. we have the interview with the security researcher who discovered this on the web and so you can take precautions. lori: definitely good advice, adam. is this new cold war adam is talking about and reporting to us on as close as your keyboard? next week markets now takes a look at cyber threat on the impact on your money investments and your business. connell and will sit down with biggest names in the business in a series you won't see anywhere else. it is the cyber threat, not "the odd couple". ashley: that is scary thing right there. this is quarter still, a

little after that, as we do effort 15 minutes, let's get back to the nicole petallides. rough day for european banks. >> we're seeing our own banks here at home with up arrows you see some of the foreign banks and european banks coming under some pressure. there is look right there at this board. we'll go through it a little bit here. first and foremost, goldman sachs cut deutsche bank to a sell from neutral. concerns that foreign banks will adopt the federal reserves new capital rules. this is why you're seeing deutsche bank in particular down nearly 4 1/2%. the rest of the names continue to fall the sector overall is under pressure. royal bank of scotland was cut to a hold from a buy as well as societe generale. back to you. ashley: nicole, thank you very much. appreciate it. what can your twitter comments say about the future of the stock market? lori: we'll introduce you to a professor who is using

moody tweets as an indicator what could happen in the markets. ashley: moody. lori: moody. friday night, buddy.

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ashley: stock alert. let's look at the dow. it has been a wild day on wall street. at the open the blue-chips dropped more than one00 points. thanks to positive readings on manufacturing and consumer they bounced back. we're still less than 100 points away from the all-time high. you want to keep it here on fox business. coming up at 3:00 p.m., liz claman is hosting

"countdown to the closing bell" live from the new york stock exchange. as they get closer to the all-time closing high. you don't want to miss it. lori: ever think your tweets might predict the future? an indiana professor is putting your tweets into a powerful computing system to predict the general public mood. following how we feel he is predicting the mood of the markets with shocking success. tests from his first paper showed 86.7% success race against short-term ups and downs on the dow. to tell us more is the man himself. welcome, doctor. >> hi, there. lori: hi. you sent along this chart. it essentially is a snapshot how the sentiment data you gleaned from twitter pretty much parallels the performance of the dow. hopefully we pop that up for our viewers at home. it is, as i said, almost a direct parallel. fascinating stuff. how did you have the idea to go to twitter to gauge market sentiment?

>> well, it was a little bit after lucky coincidence. my team and i are very interested in public sentiment. our research focused on collective mood stage as it existed in the public. twitter is a perfect tool for that because people volunteer so much personal information about mood states and activities, whereabouts, et cetera. they do it in very short time periods t was an ideal data set for us to look at. lori: give me an example for some words and phrases you look for that would give you and indicator? >> there is a lot that goes into the secret sauce. we try to make the computer algorithms not as complicate indicated as we can but not as complicated as necessary. it looks for things like grammatical expressions. certain words like calm, sad, stoked. recognizes certain american dialects. recognizes knee mitigation. it recognizes things that could into the indication of

the moo food state of the person. lori: you raise a great point because twitter is so widely used, it would be easy for a market manipulator, someone with the goal to set it up, sort of set you up. there must be some kind of margin error mechanism here to weed out the false sentiment claims? >> yee. we do that on several levels. it is absolutely clear there are communities out there whose purpose is simply to spread misinformation or to, to, sort of throw a wrench into the gears of this algorithm. the but, yes, the algorithm, actually, it doesn't filter the tweets according to its particular content but it is on the lookout for efforts to manipulate outcomes, absolutely. lori: so this is still in its testing phase. but what type of investor is this tool using twitter ideal for? how will you get it onto the market? >> well, i would i say it is not for sort of the retail investor. it is not for individuals like myself or someone else

who has a couple thousand dollars to invest with. this is for major hedge funds that are specialized in algorithmic trading and looking for additional source of information to get a good edge. lori: there are all kinds of technical indicators out there already. resistance, support levels for markets. do you think this twitter predicter, twitter indicator do you have a actual name for it yet? do you think it really fall into our sort of tool box looking at markets and predicting? >> it could, it could very well be. it stands by itself. as we showed in our research but i can definitely see it being included in some of the tool kit of investors as just another data source that can give you sort of an idea what's going on in the public, in near real-time. i think that's particularly interesting. we compared a little bit to the weather report, right. if you're growing corn it is useful whether there will be a storm coming or not. lori: absolutely. doctor, we'll keep tabs on you and the proing guess to

see how is it proliferates in the marketplace. thanks for sharing your research. ashley: congress, we know that is negative. lori: very funny. ashley: tracy byrnes and i will take you through the next hour of fox business. coming up lord abbett strategist milton miss roughtsy says the market will see through the sequester. what will impact the next move? he is coming up next. keep it here on fox business. i don't use super poligrip for hold because my dentures fit well. before those little pieces would get in between my dentures and my gum and it was uncomfortable. even well-fitting dentures let in food particles. super poligrip is zinc free. with just a few dabs, it's clinically proven to seal out more food particles so you're more comfortable and confident while you eat. so it's not about keeping my dentures in, it's about keeping the food particles out. [ charlie ] try zinc free super poligrip. ♪

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tracy: hey, good afternoon, i'm tracy byrnes. >> i'm ashley webster, dumb but not the end of the world. that is how president obama describes congress. no. he and speaker boehner seem farther apart than ever on spending cuts an tax hikes. exactly how will it all play out in washington's next big battle? tracy: ongoing bat he is. stocks closing out a wild week with cautious gains. that means flat. the dow and s&p are up more than 6% for the year though.

is now the time to buy or sell? lord abbett chief strategist milton ezrati has answers in moments for us. ashley: fiscal emergency in motown. detroit, michigan's governor taking the first steps towards seizing control of the city's books over its $14 billion debt haul. more on this unbelievable story straight ahead. tracy: it is top of the hour. time for stocks, as we do every 15 minutes, nicole petallides on the floor of the stock exchange. up 41 points on the dow. not terrible. >> it is an up week for the week. dow is the at 14,086. so we are clocking in a winning week. s&p 500 as well. the tech heavy nasdaq up .25 of 1%. the dow is up. retailers, drugs, banks, all with up arrows. i also want to take a look here. how far we off all-time high? we're talking about the all-time closing high set back on october 9th. that is 14,164.

we're about 76 points away from that. let's look at a comparison of the s&p versus the nasdaq year-to-date to see how we're faring. both are i here. it has been aning year for the year 2013. apple is so heavily weighted in the nasdaq. that is something we're continuing to follow on a day where apple today hit a new 52-week low. back to you. tracy: thanks, nicole. we'll see you in 15 minutes. >> thank you. ashley: the deadline has come and gone with no deal to stop the automatic budget cuts from kicking in but both sides need to be talking. we're now less than a month away from a government shutdown. we have team coverage. rich edson is in washington but we start with peter barnes at the white house. peter? >> well, they were talking this morning about this, ashley. the president meeting with the republican and democratic leaders from congress this morning for about an hour to try to come up with some kind of a deal to avoid the sequester but as expected they could not

reach a deal. so the president came out to the briefing room afterwards, to make, to make his arguments for why it hadn't happened. and, he backed away, he, been backing away from this kind of a, sequester will cause a major crisis kind of talk we've heard over the last couple weeks but the president did say he thought that this would have an impact gradually. it would hurt economic growth. it would hurt job creation. it would hurt government services for voters. and he made it pretty clear he hopes when that happens, republicans will get the blame. they will be forced to come back to the table, cut a deal that will include some tax increases. but the speaker came out as well after the meeting and he sounded he was like he was ready to have that fight. >> the economy will not grow as quickly as it would have. unemployment will not go down as quickly as it would have. and there are lives behind that. and that is real and it's

not necessary. that's problem. >> let's make it clear the president got his tax hikes on january 1st. this discussion about revenue in my view is over. it's about taking on the spending problem here in washington. >> now we, we have not heard if the president is actually signed the executive order, order that he is supposed to sign to put all this in motion but we do expect that to come sometime later today. ashley, back to you. ashley: peter barnes and the white house. peter, thank you. tracy: so we move onto the next one. it is time for congress to start fighting their next battle or else the government will they claim run out of money and shut down. less than a month away. rich edson life in washington with the latest. like deja vu all over again. >> yeah, just a few weeks away, tracy. march 27th, that is when government spending authority expires. no budget deal by then. then there is a government shutdown though early

indications and statements from the white house this morning are encouraging. house speaker john boehner says the house will pass a bill next week to fund the federal government for the rest of the fiscal year. republican aides say they plan on setting levels that include the automatic spending cuts, known as the sequester. though in a way that blunts the impact, especially when it comes to defense. president obama signals he will support ssch a proposal. >> the sequester are additional cuts on top of that, and by law, until congress takes the sequester away we would have to abide by those additional cuts but there is no reason why we should have another crisis by shutting the government down in addition to these arbitrary spending cuts. >> if the house passes its spending bill next week it will still have to clear the senate. democrats there have been talking with republicans to resolve this, so they can move onto the next fight, the debt ceiling, coming

this summer. back to you. ashley: one stumble to another. tracy: we need a calendar of events to keep people in line. >> thanks, rich. the stock market can see right through the sequester. after another volatile week what will shape the markets next move? let's bring in milton ezrati, senior economist and market strategist at lord abbett. milton, we'll survive it appears the sequester, that is 2.5% of the overall budget. let's be honest. but as we heard from rich edson we'll stumble from one fiscal crisis is to the next. the next one is the continuing resolution, funding of the government on march 27th. does the market pay any attention to that next event? >> the market will. i think the market is anticipating there will be some kind of a muddle, effectively what we got the last time. this was supposed, the debt ceiling was supposed to come a lot sooner. they gave continuing resolutions. i think markets expect there will be some continuing

resolution after a great deal of angst about what we just went through, spending cuts, versus tax increases. market could be disappointed in that, if the government shuts down, it will probably rock the market at least for a duration of the shutdown. tracy: i think the market knows as well as most us, this is like the boy cried wolf again. they will figure it out. come down to the last hour. so obviously market keeps going up. it is ignoring that. what do you think will derail this market? will it be bad economic data. will it be europe? clearly it is not d.c.? >> well i think it is going to ignore d.c. and you're quite right. i think the market is acting like this, he knows, the market knows when they negotiate they have to go down to the last minute otherwise they get accused of giving away the ranch. they will do this again. europe, especially in light of the italian election looks more dangerous than it did a few months ago. that is possible derailment for the market. i don't think the u.s.

economy is going to be anywhere near recession. i don't think it will boom either. i don't think the threat comes from there. europe is a threat. washington is unlikely threat. but, anything is possible. but i think the important thing here to realize about the market is that it is priced still, even after the rally we've had in the last 18 months or so, the market is still priced for disaster. as a consequence it has to get some pretty bad news to rock it and it can go up even if it gets middling news because it is wasting for the worst. ashley: milton, some analysts say the steady rise of equities is a concern because the volume is not keeping pace with it. in other words, it doesn't have the conviction and ultimately we need to push the reset button to rebuild with more solid momentum. would you agree with that? >> well, i think that's important for a long term move. but when markets rally like this, it always starts on

thin volume and builds. what we saw, what was interesting from our point of view at lord abbett, that after a year with off and on volume but a market that fundamentally rallied in 2012, we came into this year and got a great deal of retail interest in equities for a while, and i think that's the first sign that a lot of investors who have been afraid may be returning to this asset class. that could really build momentum because ultimately, probably take it further than it needs to go. but that's a long way out. we think that that's very likely to develop in 2013. these crises scare people, but, as you aptly said, people are getting tired of this and are beginning to ignore it. ashley: so should we jump in very quickly, milton, and where would you suggest? >> well i think there's still a lot left in the market. so i would suggest that people average into this market. yes, there are risks. yes, there's always something that can derail

it. that's perennial but give the valuations the potential als much more on the upside than the down. ashley: that is great place to finish. milton ezrati from lord abbett. thank you as always very much. >> thank you. tracy: glass half-full. we have much more ahead on this busy news day. the michigan's governor declaring a fiscal emergency in detroit. will the state take over the motor city's finances? ashley: oil tumbling close to 90 bucks a barrel. we'll have update from the cme and what is exactly causing the drop. don't go anywhere. we'll be right back.

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tracy: dow is up 40 points. time to make money with charles payne. this hour he is taking a look at one retailer moving higher on strong earnings. this isn't the first time he has recommended this name and it still blows my mind. >> it does. the gap stores.

they reported tremendous numbers. had it a couple weeks ago with the 1:00. we talked about, have you guys bought any jeans from there lately? tracy: no. >> i have. pretty cool. first of all i was happy they had my size or i could fit into gap jeans, okay? tracy will tell you, it is hard-working my way to a good before picture. tracy: come on. >> last few years trying to get a good before. the after we'll talk about in couple years. but everything. gap stores are up 4%. last year they lost money. banana republic be last year flat. old navy, lot last year. up 8% this year. opening athletic stores in japan. tracy: that is it cool store. >> 33 gap outlets in china. 35 this year. i think it is going to go to $40. tracy: not a cool logos for the kids. >> my son won't buy them yet but he really lost his mind. that is whole different thing. he is tripping. he is trip inch.

tracy: you lost yours after 12 after the president's little speech the. >> i was tweeting right before the segment. should never go straight from tweeting to this. tracy: your on fire. >> your mind is on fire. listening to the thing. i root for anyone who is president. i really do because i root for this country. every time the president steps up is finger-pointing game. it is establishing blame for the future. hey, if economy is weak you will know why. if we grow a little slower you know why. if we go .1 of percent to flat? is that what happen. divide and conquer may win you elections. you wan in the argue that but doesn't do anything for the economy. this is the worst post-recession recovery and hard to say it is a recovery, in history. ashley: you're right leadership. >> i just really, you know what the president has an agenda. and he is not going to sway from that agenda at all, period. maybe if public opinion changes and people stop falling for this blame game,

maybe that might do something. of course, he is saying same thing. things get bad or worse, rather as year goes on, public opinion will crush republican resolve. which by the way isn't based on their economic ideology. but the fact that they just simply don't like him. they draw horns on him. tracy: but you know what? there was all the diversion stuff too. a gay marriage. preschools for all. no one wants -- >> always got to tug at heartstrings. always got to set up, how do you even mathematicly fix the deficit on the backs of senior citizens and college kids? how do you mathematicly do that, that burden? we can't do the entire burden on them. well, guess what, a couple weeks ago, we hit the rich and we just hit everyone a job with a tax. 150 million people put more skin into the game. what do you mean, senior citizens? always somebody who has to be vulnerable and he will step out in front. reminds me of opening scenes

of underdog, used it come down, sweet marian? the bad guy was riff after. polly pure bread. tracy: good one. charles payne. love that. >> have a great weekend. ashley: thank you, charles. little past quarter past the hour, the markets are up 36 points. nicole petallides on the floor of the nyse. nicole. >> looking at best buy in particular, obviously a name that had a lot of headlines recently. the most interesting at least for the moment today, you see the stock up half a percent. it is numbers we're seeing out of best buy. after three years where we've seen basically them having struggling sales, now you have their new ceo, the first quarter at the helm of this struggling electronics company. they had a narrower fourth quarter loss. their comp sales are looking better. they're actually posting a profit. that is good news the profit

topped forecasts to be more specific. then there is the whole deal about richard schulze, founder, taking that private, but that is not happening. at least for right now. back to you. ashley: may have not heard last of that story but not now. nicole, see you in 15 minutes. tracy: god bless him for trying, right? federal reserve chairman ben bernanke helped boost the market. one fold watcher says the market is dangerous terror now. why? ashley: the euro actually dipped below 1.30 for a short time today. as you can see only the canadian dollar moving higher against the green back. we'll be right back.

>> at 21 minutes past the hour i'm arthel neville with your fox news minute. a sinkhole 30 feet wide has swallowed a florida man in his own bedroom. jeremy bush says he tried to rescue his brother jeff late last night at his home near tampa as he screamed for help. fire rescue officials lowered equipment into the sinkhole but not so far seen any sign of life. a secret investigation into pub republican, wisconsin governor scott

parker aides have been closed a no charges were filed. the milwaukee county district attorney said the investigate closed last week. six people were charged with crimes looking into activity in the milwaukee county executive's office when walker held the position. bonnie franklin who played the divorced mother of two girls in the long running comedy one day at a time has died. she died from complications from pancreatic cancer. she was 69 years old. those are the headlines on the fox business network. get you back to tracy. put like that show? tracy: i watched religiously. i wanted to be alysha del vallery bert nelly. she was so hot. i'm not sure what happened along the way but she was a hottie. arthel neville, thank you. the fed keeps printing money but isn't causing a run-up in prices so far. its favorite measure of inflation rose a whopping 1.2%. this is the smallest annual

increase in two years. well below the fed's target. what has our next guest's so worried about the fed's growing balance sheet? joining us is the deputy chief u.s. economist at ubs. what are we doing? you think the fed is in very dangerous territory. they seem to thing everything is hunky-dory. >> everything is hunky-dory until you need to get out. it is all fun and games until someone gets hurt. so what they're doing, they keep on expanding their balance sheet. keep on expanding the balance sheet. at some point the balance sheet has to shrink. everyone loves it buying securities people own and prices go up, what happens when the fed has to turn around to consider selling those securities or letting the assets roll off in a way that takes a little bit too long and maybe inflation is beginning to pick up? tracy: i hear you but what about the notion maybe they don't have to stop? just keep printing money and make it bigger and bigger what is the endgame at the end of the day? we just keep the market going? >> that is what has me

concerns because there doesn't seem to be a good endgame. tracy: right. >> look at every central bank around the world, look at qe, and banks that did this quantity quantity. >> purchases of assets. no one ever stopped. tracy: right. >> once you start, you don't stop. it is not a good thing, something the fed should consider, right? no one else has been able to get out. why are we so confident we'll be able to get out? tracy: the question of a lot of traders making serious money in market are asking, why do we have to get out? >> you have to eventually get out because the amount of goods and service in the economy, gdp, that's what economists have to talk about and you have to have money in the economy and they have to equal. if you triple money supply and gdp stays the same are. the wry that fix itself and called inflation. tracy: i was going to say that but why haven't we seen inflation? >> we vane seen inflation on what we call absolute basis. the overall level is pretty low. the problem if you asked any economist out there, what inflation rate we should have with unemployment rate

of 8% none would put as high as it is today. yes we haven't seen a lot of inflation but we see more inflation than there should be. tracy: i certainly see it at the food store for what it is worth. we have fomc meeting coming up march 19th and 20th. what do you expect to hear? same ol' same ol'? >> same ol' same ol'. person key did the testimony, all the keel worried about what i'm worried about are not they having it through and he thought it through and we should trust him the market seems to have bought that. with luck hopefully people will buy it and he will be the first guy to get us out of it in the right way. tracy: there is no real history for a exit plan. we have no basis is comparison here. does the market back? do traders say hay we don't have backstop and come out of this market? >> that is the problem, we don't know how people react. tracy: right. >> what if the fed tries to get out and it doesn't go as smoothly as they are hoping?

what if the market doesn't react that well. what if we have exit strategy that doesn't go so smoothly? i expect the market will get rough to put it mildly. tracy: we have the punch bowl. >> keep it going when you have the punchbowl. there. when you take the punch bowl away. who has your keys, where did you get the coat? should i drive or call a cab? that is when all the you tough questions happen. tracy: i get there you. been there, done that. ashley: hate that moment. tracy: the worth. >> the governor of michigan declaring a fiscal emergency in detroit but the city is fighting back with a more than $330 million budget deficit. >> the dow is up a little bit. up 24 points. let's look at winners on the s&p 500. intuitive surgical, charles payne favorite. up more than 9%. we'll be right back.

♪ ashley: half past the hour, taking a look at the dow 30, more green and red, but the market up 24 points. on the downside, mcdonald's. be of a up about 20. tracy: you know why, they took this salad also the menu. ashley: outrageous. with -- ashley: let's add to the floor of the new york stock exchange. nicole petallides standing by with a very special guest. >> reporter: very special. we have to bring in liz claman. coming here on the fox business network. >> thank you. i just grab a couple of traders, and they say, probably not happening today. and in classic trader, you never

know. they always have to hedge. >> reporter: probably not, but you never know. if we could call the block, put in some orders and make it happen. >> you have to go and talk about what is going to let the markets. but i happened to talk to traders. chinese state debt early this morning the brought the market down. we are indeed moving higher. he will be talking about the sequester. this aid is a non-issue. used to say that a couple of days it could become an issue. watch out for that. the line of the cities they have for learning languages. the most and least popular.

see if you can see which one that is out of the 30 plus language is that they teach. all that and so much more coming about the top of the hour. plus, we are going to gain the required reading for any investor. warren buffett cheryl letter which comes out after the bell. before that happens we have had dorsey, a longtime asset watcher and shareholder and will tell you what to watch for. all that and more of the top of the hour. see you then. ashley: thank you so much. tracy: breaking news. the state department of release on friday a long awaited draft. environmental assessment of the keystone xl pipeline according to several government sources. more on that as it develops. basically they put it out. ashley: of 45 day comment timeframe, and the state department goes back and gives a ruling about a month after that, so we're looking at mid year before we get a definitive yes or no. tracy: it is something. at least is moving.

oil prices falling to their lowest so far this year, below $91 per barrel. fox business contributor phil flynn in the pits of the cme. what is pushing oil lower? will price of gas go down? >> the price of gas is coming down, and it will come down. you know, i think we have broken the bubble on the gasoline run-up in price. the reason we saw those prices drop so dramatically, the shortage of supply on the east coast. the lack of pipeline capacity. refining issues all around the country. guess what, those refineries are starting to an -- tip back on line. big bills in gasoline supplies. now, thank goodness, we have seen a big break in the price of crude oil. crude-oil prices, the lowest level of the year knocking on the door of $90 per barrel. for every dollar that oil falls, that's about two and a half cents per gallon. so the good news is we have come down.

so look for a 14-cent pricing gas. ashley: the governor of michigan declared a financial emergency in detroit. it is an effort to save the city from its longstanding financial problems, including a $327 million budget deficit. is a mess. we're joined now. >> worse than three under and 27 million. $14 billion in the whole. detroit, one city. unbelievable. lars the inflection of the fact that they cannot manage their money, but also the they have these very expensive labor contracts. city council has basically stood in the way of any kind of solution that could come. the governor saying it is a financial emergency get -- just as the north sake. they may appoint a special manager to come in and take over. now, you should know, the city

council is still opposing that. and they may. so there are loggerheads. nothing is getting done. let me show you a picture. he is on the right side. he has people that he wants to suggest to be the financial manager. but the reason cities that have declared bankruptcy, there are many. most labor issues. but detroit has even more going on. a history of corruption in that city. you know, the kilpatrick, facing a public corruption trial. a lot going on, and if they do get this emergency situation put in place they can renew the labor contracts revised and approved budgets, sought city assets. last night on our show we have someone who has written this incredible book about detroit called an american autopsy. pretty dramatic. >> lots of things went wrong.

we have a big racial issue that we never confronted with the south did. unions took a big bite. mannesmann went along with that. japanese are making good cars. or lombardo's. lots of things all at once. 2008 comes and the realistic collapses. that is the death nail. the whole country shields the lack of manufacturing. >> giving you of 50 year history. about 60 seconds. ashley: the population has gone from just over one-half billion of the 700,000 the exodus, property-tax collection. people move away from the homes. >> buyouts for the price of a car. one of the more recent things that is going on and i think is interesting is that artists are moving in. you can get housing so cheap.

that means they can do their thing in a very reduced cost. there are spots, but they are so few and far between. the big question is will be ultimately bailout detroit and will they ask for it? we have already seen city council the blast for this. ashley: no kidding. gm got bailout. so what do you have coming up tonight? >> we're not talking about this. a great story and obviously breaking news. we will be talking about a number of topics, including -- and i hate to say this, the big debate in washington over money going on right now. sequestration. sni would not say the s-word in here i am saying the s-word. we will be debating that. ashley: don't miss the will support right here. tracy: coming up here is one great spot for detroit, of those sales surging again despite consumer caution. those numbers ahead. ashley: inside the war room on cyber crime. live at mcafee headquarters

coming up. first, take a look at the ten and 30-year treasurys. we'll be right back. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

♪ >> reporter: and shibani joshi with your fox business brief. all good on the rocket.

unmanned rocket successfully launched this morning turning a ton of supplies and experiments to the international space station. nasa paid spacek to deliver the cargo. this is the company's third mission. consumer optimism is up to its highest level since november. the university of michigan consumer sentiment gauge rose to a final february reading of 77. january's final reading was 73. in u.s. factories are expanding for the third month in a row. the index of factory activity rosenfeld yuri. up from january. does the latest from the fox business network, giving you the power prosper. ♪

♪ tracy: breaking news, large

possible acquisitions citing different sources that include deals like biogen, i guess bristol-myers lost they're patent protection. the problem of the market for additional acquisitions. ashley: cyber attacks are on the rise. we all know that. efforts to stay ahead of hackers are in high gear. adam shapiro is live from santa clara california worry has exclusive access to maggoty world headquarters. >> reporter: that is correct. as we know, at the forefront of trying to prevent these viruses. you see this wall is showing active viruses. we heard. 55 billion queries, they would call them, every month. joining me right now to explain how these viruses work, an engineer here. before we start talking, we will

map out an actual attack. one to just remind you, the causes of these attacks on business every year, this is coming from the institute. they interviewed 500 businesses that were surveyed. they said that it's costing companies the number one, the attacks on u.s. banks have been denial of service attacks. to walk you through an attack looks like, we appreciate you doing this. we're talking about, at this point, the virus that is over here has gotten past my fire wall don't. it has gotten past internet service through comcast a time-warner, gun pass their security systems. it is now in my e-mail. what happens next umass -- next? >> that will transport the virus to your system. >> as simple as open the e-mail.

in the old days you had actually physically download something. >> there still are a tax for you have to click on a link in their knees to be downloaded all but a lot of times they used was to the call the drive-by download and just visiting a website will actually download that now we're because it is imbedded. >> reporter: at this point my laptop is now infected. what happens? >> of course any piece of nowhere is going to want to spread. is going to want to either send them permission now we're going to want to find other places to in effect. this is a problem that happens a lot of organizations. somebody may get home. the system will get infected and every network. of course always starts trying to spread out around the rest of your network. >> reporter: what point is a gathering my private information? we have been talking about potentially getting information of people's bank accounts. as it happened here? is it happening in my e-mail? is it happening earlier?

>> some sort of sensitive account. >> whether it is at work or personal computer at home to allow these things done. there will destroy cocaine tell us something. >> possible a discrepancies. >> even if you do go through unclean that your system, there's never any way to tell the you have removed 100 percent. so unfortunately for a lot of organizations the only option is to completely wipe the system and start over from scratch. >> reporter: thank you for joining us. we're back with you in the next hour we will be talking with the other co-presidents about some of the threats that businesses face as low as consumers. again, how you protect yourself. back to you.

ashley: thank you. a new cold war as close as your keyboard. next week markets now takes an in-depth look at the cyber threat. its impact on your money, your investments, and your business. tracy: the dynamic duo -- duo. all right. it is quarter till. time for stocks as we do every 15 minutes. nicole petallides on the floor of the stock exchange. we have pulled back a little bit. >> reporter: we are up about 20 points. want to take a look at deckers. other hot are they not? the whole brand. we're looking at the stock right now. fourteen and 1/4 percent. well, makes news. surprise first quarter loss. a full-year profit outlook that is harder than expected. for -- fourth quarter was good news.

for analysts to begin raising their price target. $65 target. a $40 target. and while they have not reached the pinnacle yet they are making some great progress. it is a winner today. back to you. tracy: it is that time of year. ashley: speak for yourself. coming up, protecting your reputation on line. reputation dot com founder tells us why business is booming. he will be in there. tracy: first, let's take a look and some of today's winners and losers as we head out to break. only about 15 points. here are some of your nasdaq winners. we'll be right back. ♪

16. tracy: rising in february. a buick. dumping is break down the numbers. >> we always love to hit the ground floor perspective. we take you through the numbers to sell your clarinet. another big month for u.s. auto sales. ford of 9%. chrysler and toyota both up 4%. leading the way. loving that. >> absolutely. up 20%. >> you are winners. buick and gmc is what you sell. you use to sell pontiac. what were the big winners this month? >> right now the buick client -- duke clot -- buick conclave. leading the way.

>> gmc is big, too. >> absolutely. the terrain the un-standing by has been an industry leader month after month. >> leasing right now. leasing is huge. >> with minimum down you can walk away with this for about 099 months. >> hundred $99 a month for this one right here. i know someone with a new baby that maybe could use this. i don't know. 199 a month on leasing. leasing is huge, bigger than it has been a long time. tracy: idle have a new baby. i have three older ones, and i will take it. sold. >> reporter: sold. the lady with the babies. tracy: you're awesome. thank you. ashley: all of your personal information on the internet, health records to shopping habits, being collected and sold

without your knowledge and permission. you don't even get a piece of the action. founder and ceo of reputation.com says his company has the solution. thank you for joining us. basically we are all being exploited without our knowledge or permission. is that right? >> that's exactly right. if you look at the basic business model of the internet, it's not evil. is just out is. you look at the basic business model and the companies that succeed in basically their internet media companies. they give you something free. we use every tool to collect the data and then you sell the data without a real knowledge and permission to people you can't identify for purposes you could never know. no one is torelli their whiskers the home saying, we were out to get people. that is just how the internet has been built. there have been a few attempts in the past. and reputation.com is now doing it for our customers. you can imagine where you put the actual customers in the middle of the transaction.

instead of saying we will sell your day without your knowledge or permission, all we can do is say, look, these does want to buy your data. fox business to sell your information to these guys, where their car company or mortgage broker or airline company and then say, look, i do want to have its rate for discounts. i want said trade my data for status and the airline. i want to trade my data for cash. that is a knowing ineligible transaction. it is not a new idea, but no one has been able to succeed in actually pulling it off. now finally the conditions in the market seemed to be right to pull it off at scale, and that will be much better and much more pro-user, user-centered weight. the free market solution. free-market solution to this problem of data. ashley: how does that work? i give you permission to take my information. you put it in a vault, in a data volt. taipei you to look after it and then go ahead and sell it to whichever company wanted? >> the concept is you don't have to pay for it.

the user has value into himself and that to herself. your day is valued at between 50 and 5,000 per year depending upon what database you are currently in that is now selling your data without your knowledge and permission. and so the idea is, instead of taking all that money for themselves, we could do is say, look, here is a split. you don't have to pay for this. you ought to be viable, more job offers, more stuff that you can buy at cheaper prices. you want to be able to transfer your airline status from your senior status on united to american airlines or vice versa. the idea being you can take your data with you, take your status with you, get paid for all the things that people charging others for your data for right now. and have a good sense of where your data is flowing. you are being exploited. your data is being exploited without your knowledge. and you have no idea what you're worth. so i think we should view the middle of the transaction.

something that is still leaves you ultimately. not that technically difficult thing. it is just, no one is a grand scale of the sense that the customers really ready for this. the good news is that privacy is now kind of a low-level anxiety problem round of consumers on the internet. they're ready for this emotionally and such understand it intellectually in the data is being used. so now they're starting to say, i want to defer way to do it and this is the market's way. ashley: we already ran out of time. it's been the next hour talking to you. so much information. >> like that. let's do it. let's make a date. ashley: thank you. tracy: wow. lots of energy. so does liz taking mr. the last hour of trading live from the new york stock exchange. don't go anywhere. ♪ the boys used double miles from their capital one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card

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