stuart: earlier this morning there was a sudden burst of black smoke from the chimney. black smoke means no hope, yet. the odds on who would be the pope shifted. also, running close is the brazil cardinal. over to our vatican correspondent, charles payne. [ laughter ]

charles: applying the same principles that i apply to stock market. emerging markets, global growth and a lot of religions want the same thing. >> i have my odds on dolan. stuart: weight, news just in, cardinal dolan is now 14-one. a couple days ago we quoted him at 20-one. >> i will bet you right now one dollar. stuart: you are a practicing catholic. you met mother teresa. would you bet on the prophecy? >> yes. stuart: connell, it is yours. a true catholic. go cardinal dolan.

as the president meet with lawmakers once again today, a new poll is out and it shows just how upset we are. cyber experts are rushing to address what looks like a new round of attacks on some big banks. on the economy, there is no bigger bowl man ryan westbury. those stories and much more, maybe even a new pope. dagen mcdowell joins me for market now. ♪ dagen: you are very low. go cardinal dolan. i am actually excited.

smoke watch is 1150-215 eastern time. we will see. if there is no pope, it will probably be about 2:15 p.m. eastern time. cheryl: you know what, i can watch a smoke stack for a few hours. top of the hour, almost. stocks now and every 15 minutes. nicole petallides at the new york stock exchange. nicole: i enjoyed that analogy. they are both very entertaining. we are down, the dow is down about 14 points. six record closes for the dow jones industrial. a green arrow would mean a record close for the dow today.

names like verizon, procter & gamble, alcoa are pressuring the dow. the s&p is going nowhere fast. boeing hit a new 52 week high. you have many retailers hitting new 52 week highs. we are seeing american spending on gasoline, auto sales, grocery stores. talk to you. dagen: where is the disposable income after that payroll tax disappeared? continue negotiating. 82% is a proof of the way congress does its job. joining us now from washington,

d.c. is steve moore. senior economics writer at the "wall street journal." will compromise and improve their standing in the eyes of the american people? i highly dow it. >> let me bring you up to date. there is still black smoke coming out of the capital. we still have not seen a senate budget. by 4:00 o'clock or 5:00 o'clock tonight, maybe. hold onto your hats, we make it a set budget. that would be quite a rare occurrence on capitol hill. people are extremely angry about the budget situation. they are extremely angry apple parties because of the accumulation of debt. they do not seem to be doing anything to stop this tsunami of red ink.

washington is incomplete disarray. what do we do in november? we reelected 96% of these people. the numbers do not add up. dagen: i completely agree. if you look at the proposals from paul ryan and the senate democrats, where do you think there is room for compromise? >> i have looked through both of these budget. i spent most of yesterday going through paul ryan's budget. it is almost like republicans are from venus and democrats are from mars. they are totally talking past each other. the documents could not be more

philosophically at odds. they could reach a compromise, but they are still really far apart right now. dagen: certainly infrastructure spending. >> $100 billion stimulus plan when we are supposed to be talking about reducing the deficit. >> you start to hear talks from both sides about tax breaks. if that could turn into tax reform, that would be great for everybody. >> i cannot wait for that day. let's go back to the principle of tax reform. get rid of the loopholes. lower the rates, do not raise them. again, they are talking past each other. dagen: keep watching the smoke stack, steve. steve moore, thank you very much.

from the "wall street journal." connell: president obama calling in a number of ceos to the white house and they are going to talk about the cyber threat. >> some of the vulnerabilities, whether they be states or denies criminal groups, vulnerabilities exist that we need to take care of. connell: with us now to talk more about all of this, former director of the national cyber security center is almost phone with us. >> the financial services is

targeted with particularly large u.s. banks. connell: are they doing enough to prepare the banks? >> the banks have been hit so hard repeatedly over these past years that every major bank in the u.s. and most the major banks in the world are working on these issues. it is really tough. connell: what is the difference that you have been seeing over the last however many weeks or month? >> sure. hundreds of thousands of corrupted personal computers. these are coming out of the cloud. enormous network servers. it is through corrupted websites that are being posted within the cloud.

the first hour of the attack is very high and very difficult to defend against. connell: this meeting at the white house today, the president brought in ceos to talk about the issue. the balance that everyone keeps arguing about is how much of a role for government have in mandating what these companies have to do. are we anywhere close to finding that balance and if so, what do you think it will look like? >> i think that executive order is pretty well-balanced. the companies do not want to be overregulated. on the other hand, they want the government to move towards some policy that may allow them to take better defensive action. connell: it is not like they aren't taking it serious, right?

>> with the bank, they know it is serious because they are constantly under attack. for 70% of the ceos, they do not get it. that is according to recent surveys. connell: what should they know that they do not know? >> they do not know that the adversaries are already in their network taking a lot of valuable information. they are in a state of denial. these are disruption attacks on their customer service. they are retrieving intellectual information. ideally your enemy is coming in on scene. i think the ceos do not realize that is going on and they are in denial. connell: the government does

realize or think this is important because it dominated that threat assessment hearing yesterday. cyber security was topic number one. rod backstrom, thank you very much. dagen: we bring you the case for the bulls coming up. brian westbury and charles payne are on deck. connell: plus, the great fight for california. how more taxes have business owners looking for a new place to call home. let's take a look at oil today. just under $93 a barrel. ♪ ♪

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connell: the dow closing at a record for six sessions in a row. even with these new highs, our next guest is talking about dow 18,500. brian westbury is with us, as is our good friend, charles payne. talk to us, brian. >> it is great to be on with charles and good to be with you, connell. if you look at a capitalized model, you take corporate profits and discount them with interest rates. we actually have interest rates going way up. the model is conservative. profits will grow within the

next year. connell: this is how will stocks performed in a rising rate environment. we are not there yet. charles, you think the market can do well. charles: somehow the fed will raise rates in the market will collapse and we will all live back in caves. it has never happened and there probably will not happen this time. i love ryan. he always sees the glass half-full. i blushed when i heard the number. [ laughter ] >> just to put that one statement in perspective, if you look at gdp growth, knowledgeable gdp growth, it says it should be around 3%. that would not kill the economy. we have from zero to 3% before the economy really gets her.

i agree with charles, the market can go up even if the fed does raise rates. connell: the idea that you do not have to like the politics. you can like the market. you are not a big fan of some of the things happening in d.c. why does the economy and stock market continued to either do okay or much better than okay? >> this is a great question. on one side we have all of these negative policies. on the other side, is the drivers of growth. inventions, you know, the cloud, smart phones, fracking, 3d printing. we are always trying to balance those two things out.

i think this scale and up tipping towards growth. it is not booming like it did in the 90s. it overpowers the negative stuff right now. connell: if at some point the economy continues to improve and the stock market is going up, at some point do you say maybe i am wrong? charles: i will not say i am wrong about that stuff. no matter what side the political aisle you are on, greece did not become greece overnight. america will not collapse overnight. although, we are built to last, we have an economy that is extraordinary. connell: brian, it is always good to see you.

brian wesbury and charles payne, thank you very much. dagen: i was sitting back here like this. charles and i -- i was about to get charles more riled up then you did. that is for another day. let's talk about taxes. people in california, entrepreneurs there are getting hit. are those very business owners, the people who create jobs, looking for other states for residency? one entrepreneur created one company and sold it. we are owing to share his story with you coming up. dagen: more jobs are being added to the federal government. the judge is coming in.

andrew napolitano with some thoughts on this. then we will talk about some markets. here is a look at currencies today and how everyone is faring against the dollar. ♪ all stations come over to mission a for a final go.

this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it.

siemens. answers.

>> out 23 minutes past the hour, i have your fox news minute. in vatican city, the cardinals are expected to return later this hour. day two of the conclave resumes. the voting will continue with two round each morning and two afternoon until a new pope is selected. venezuelan president is looking into accusations that hugo chavez was poisoned. they believed that cancer was a result of poisoning by a foreign rival. president obama is talking with the secret service about

reinstating white house to worse. a spokesman said overtime costs factored into the decision. that is a quick look at your headlines. back to dagen. dagen: thank you. hit with two giant retro at -- when will the state job creators, the entrepreneurs in silicon valley finally say so long? they are already looking at real estate in other places. i know that you are looking to buy a house in san francisco recently. you are saying maybe not so fast. you started your current company in california. maybe not the next one? >> maybe not the next one. the current company just got

started. dagen: what do people talk about, like your friends, people that you work with, entrepreneurs or just acquaintances, are they seriously talking about leaving the state? do you find that discussions are coming more often, if you will? >> yes, dagen, it is unbelievable. almost on a daily basis, if not twice on a daily basis. i think california could end up with less tax revenue overall. it has gotten so high that people are trying to get out of the state before they make money. dagen: do you think the

lawmakers in the state fully understand what is at play? ultimately, this could damage the state permanently, in terms of success and the types of entrepreneurs and companies that it creates. >> i think you are right. over 3 million people have left the state since 1990. i do not know what it will take for them to notice. it is not just the magnitude of the tax, it is the fact that it is retroactive. it is a huge retroactive increase. i think they will see the tax revenue fluctuate a lot year-to-year as wealthy people are leaving. even though i want california to be the place to be successful. dagen: when you start these businesses, can you do what you are doing in california somewhere else? technology has changed so much.

you can get talent to move or you can find talent in other cities whether it is austin or even in the mountains often nevada. >> sure. actually, you taught is a popular place to start companies right now. it is funny you mentioned that. we are trying to create what amazon did for products and goods. teeth cleaning, massages, dog walking, all the different businesses are listing the services on my time. we are national, in the sense that we want to be in all the major cities and population centers. the fact that our headquarters is in california is almost irrelevant to the business. the d.c. money is more actively looking around the country and around the world.

investing in asia, europe and india. absolutely no reason you need to be in california anymore. dagen: you can eat as much -- and nevada as your stomach can handle. you cannot do that in california. >> you heard about our plan. dagen: oh, yes. i have friends who are criminals because of that. congratulations on my time. be well. speaking talking about apps coming up. apple is not playing nice. we will hear from walt mossberg next. dagen: the federal government is

still adding jobs to its payroll. judge andrew napolitano is on to get fired up about it. ♪

connell: we are going to talk about dreamworks for a little while. i am looking at the camera and you are staring at me. we are going to talk about dreamworks with nicole petallides who joins us now from the new york stock exchange. nicole: it sounds uncomfortable. maybe you should both go to the vb theater and check out some dreamworks movies. they had a tough go of it.

it was no secret that "rise of the guardians" was a louder for them. they are beefing it up. netflix, netflix is also on the rise. not only can you get netflix just about everywhere, but you can now get it on facebook. the customers will be linking up with facebook so it will be easier to work with your friends in finding tv and movie shows that you like. it is up over 100% this year. back to you. dagen: thank you, nicole. connell: android is playing nice and apple is not when it comes to apps. dagen: walt mossberg is here with all things digital.

it is great to see you. the whole point of the piece that you wrote today is that apple, you call apple switzerland and all these companies whether it is google or amazon, make apps for apple. apple is getting by with what? >> well, maybe i could just stare at you randomly. i am not sure. [ laughter ] >> instead, we will talk about it. i do not think the question of apple being bad at this in the other guys doing a good deed, none of these things are being done out of politeness or courtesy. they are being done out of business model. apple, google, amazon and microsoft, everyone makes apps, unofficial apps, not the 800,000

apps out there that third parties make, everyone makes apps for the iphone and ipad . you want a being search app, you want your phone to work with your xbox, you want kendo, all of that stuff on the iphone. meanwhile, apple doesn't take any of the things they have on their phone and put them on anyone else's smart phone. it means if you own one of the apple devices, you have access to one of the official top flight apps, but if you own an

android or windows phone, you do not have access to any of that. i would not call it rotten, but i would call it lopsided. the reason is business models. connell: that is what i was wondering about when you said that. you gave a bunch of good examples. i have a samsung smart tv app which is great. is there any scenario in which this dynamic would change? >> well, i mean, the other guys could decide to pull all of their stuff off apple's devices, but that is not, i do not see that changing because i said they have sold over 400 million of their devices. they have sold over 500 million, i understated that. that is a lot of people.

lots of surveys show those apple customers tend to download more apps, spend more money, because apple does not sell cheap phones, they tend to be in a higher income bracket. they all make some hardware, but that is not their primary business. you want to be on every device and apple makes a huge amount of devices even though there are more androids out there. in terms on whether apple would start sending it out to other people's devices, they are primarily a hardware company. the point is this morning is to say to users, look, if you buy one of these apple things you will have a good chance of getting a good amount of what you want from google, or microsoft, from amazon without having to bite their devices.

connell: thank you for not staring at us uncomfortably. dagen: you can stare at me all you want. take care. judge andrew napolitano of next to talk about jobs being added in the federal government despite theesequester cuts that went into play. dagen: boeing takes the first step to getting its prize dreamliner back in the air once again. first, let's take a look at treasuries. ♪

♪

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not respond in a crash. the models affected by the recall includes all the month, sentra that pathfinder and leaf. that is the latest from the fox business network. giving it the power to prosper. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world mov... futures move first.

learn futures from experienced pros with dedicated chats and daily li webinars. and trade with papermoney to test-drive the market. ♪ all on tnkorswim. from td ameritrade. dagen: the spending cuts with into effect at the beginning of this month. federal jobs posted over the last ten days reveals nearly 3600 new postings. connell: judge andrew napolitano is with us now. what is up? >> for two weeks and we were talking about the sequester, i was doing this. this is the increase in federal spending without the sequester. this is the increase with the

sequester. you are talking about two cents on the dollar. if the president needs 100 new soldiers, he gets to higher 98. unless he can move money around from one column to the next, which he can do. he can do that because there is no federal budget. if you or i disobey the law, somebody comes after us. the irs, u.s. attorney, whatever. does anyone in the federal government get punished when there is no budget? of course not. prisoners will be let out of jail and not prosecuted. that is nonsense.

they can move money around. they can higher 3600 people in the five days since the sequester. dagen: they can also move money around to the point where they make our lives more difficult. >> if the government does things to hurt the american people, just so they could prove a point, that is not what they have been elected to do. connell: what is an example of that? >> an example would be to cut something nonessential. one or two more cadets. if you thought about two out of 100, you can do that. president nixon tried not to spend all the money congress

appropriated. he went all the way to the supreme court and said you must spend what is appropriated and in the budget. when there is no budget, the president can move the money around. the president's job is to put his arms around the government and say i will make this work. it is not to say, i told you so. if the president intentionally did that, he would be doing the opposite of what we paid him to do. that may very well be an impeachable offense using the power of the government to harm us. absolutely. i cannot imagine that would happen, but it would fit the definition of it. connell: all right, judge. good talk. dagen: get out of town. [ laughter ]

connell: all right, judge, thank you very much. let's go back to nicole. stocks now. nicole: i wanted to take a look at a retailer. gasoline, autos and groceries. department stores and the like have been to the downside. use although fourth-quarter earnings jumped 5.9%. it is that outlook here that is worrisome to wall street the ceo warning of a softer start to the new year. there are fewer shoppers and the people that are shopping our shopping less. that is not good news. full-year guidance is now under expectation. dagen: jumping more than

expected in february despite the payroll tax cut going away. half of it was gasoline. connell: sandra smith with the trade. sandra: a lot of it was gasoline. keep that in mind. taking a look at the retail sales numbers, a jump of more than a full percent. estimates were a jump of half a percent. this was twice as much as expected. the month of february there was a lot of concern about dialing back because their payroll check trunk. not so much the case. there is a lot of momentum. we are out there shopping. the goal is to find out where they are shopping. we talked about costco yesterday. they are still trying to buy them both. take a look at these retailers, trading to the downside. coldwater creek, hot topic, and warehouse, all of those reporting after the bell.

express. this is a smaller retailer, as far as apparel retail is concerned. we are still not seeing signs of like there. by the way, this is a stock that lost 33% of its value over the past year. guess what, not bad news. profit for the company were up 6%. when you look at the retail trade, do not think it is all bright and shiny for the retailers going forward. there is still a lot of concern that we are hearing that things may not be so good the next couple of quarters. something to keep in mind. all those other retailers will have more in the next couple hours. a handful of them reporting after the bell tonight. back to you guys. dagen: thank you, sandra. connell: some light at the end of the tunnel for the dreamliner. dagen: make sure those batteries do not catch on fire.

when will the twinkie be back on the shelves? cheryl and dennis know and they have the story at the top of the next hour. take a look at some of the winners today on the nasdaq. ♪

connell: we are back on what we are loosely calling smoke watch for the next two and a half hours or so. we will be paying somewhat attention to the chapel and the chimney above it to see what type of smoke comes out. earlier today it was black smoke indicating there is no new pope to. between now and 215bm eastern time, we should see some more smoke. if we were about to get it in the next few minutes while we are still on, it most likely would be white.

they will burn both of the ballots together so that we will only see the smoke rising together. if the first vote was a yes, you would see the white smoke sooner rather than later. dagen: elizabeth macdonald is here to talk about the federal aviation administration approving boeings plan to redesign the batteries in the 787 dreamliner. liz: this story is deeper than the reports are indicating. they will stress test the batteries before they will allow the planes to be put back in service. the company wants them to be back in service by may. there is the per battery. here is the problem. there are still question marks over what is causing the fire. we know that one of the cells

are now. what is causing these fires? are they replicating that? boeing is at a five year high. they have been possibly coming out with a new 777 plane. boeing stock is at a 52 week high. also because the profits are up in the commercial airplane. the problem with the battery is there are still too many question marks over what is going on. what actually caused one of the fires when the plane was grounded in japan? connell: one of the smartest people that we know. dagen was pointing out at the vatican, you probably know more about the catholic church.

liz: lately i fear that i will burst into flames as i walk by a church because i have not been recently. what is going on at the vatican is very interesting. cardinal dolan odds have improved. he is at a 14-one odds. we have to see, we will be watching this until, i think, 2:00 o'clock. connell: live, thank you. talk about retail sales rolling out today. cheryl and dennis are coming up with a look at that. dagen: words from experts on whether or not you should be investing in retail. cheryl and dennis coming up. g ♪ to be easier to be easier but now there are more choices than ever. i want to know exactly what i am investing in. i want to know exactly how much i'm paying.

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dennis: hello, i am dennis kneale. cheryl: i am cheryl casone. the dow taking a bit of a breather. even as retail sales picked up the highest level in five mont months. coming of the president and ceo of the international council of shopping centers. dennis: dollars and cents, the college major you or your kids choose could mean hundreds of thousands of dollars more or less that we earned. a ground breaking report with peter barnes. cheryl: fox business continuing to keep you up to the minute as president obama meets with business leaders to stop attacks on your bank, broker accounts and other valuable information that could be at risk. dennis: nicole petallides at before the new york stock exchange. nicole: we are looking at a market that is a little bit weaker today. six record consecutive closes. the dow was up about 400 points in the last eight trading days today pulling back a little bit

down 14 points right now. the s&p down fractionally. we saw the numbers, the best numbers up 1.1%, the fourth straight monthly gain. what is interesting, you can take a look representing some of the retailers, americans are trending on what they need. ethylene, auto sales and the like. restaurants, department stores dropping. they have to buy what they need, they need groceries and gasoline, they are facing higher payroll taxes, higher gasoline costs. going forward, the good news is ultimately we do have a stronger labor market, tax refunds will get going back to the people. dennis: thank you, nicole. the dow is up 400 points in eight trading days. time for the total buzz kill. our next guest says the record

highs will stay right here. scott, i think stocks are looking pretty good, but you basically feel like the party is over for the rest of the year. explain yourself. >> i knew you would get a little bit of trouble about that. our target was 1525-1575. we are looking for a good year. obviously the market has been shot out of a cannon right off the bat so what we're trying to do is figure out do we need to adjust this base i and many fundamentals that may have occurred? we have been watching china, europe, we told our clients this may be a little conservative if china bounces back a little more, if you're up is less bad flattening out. those are the types of things we are worrying about. but in the last two years we have been fairly accurate in the market it created well above the target and well below the target.

i don't think we will trade significantly higher from where we are now, but we could trade a little bit higher. dennis: using the jobless rate will be 7.5%. the fed said we will not start messing with interest rates until it is at 6.5. so many states lose, that would be a good thing for stocks, right? you say the housing recovery is really taking shape at jobs are looking better and good retail sales number. >> i don't think so, we have to take valuations into account. it is hard for valuations to expand a lot. 14.5, 15 is probably close to the core value. housing has really boosted consumer confidence, we saw the retail sales number today, people are out spending money. but i think overall we have to

still realize we're in a modest growth, modest inflation economy, that will not change so we have to watch a valuations. dennis: six to nine months out, right? if stocks are saying the economy is better six to nine months out, and growth improves the second half as many think it will, can't that build so stocks will stay in the following six to nine months out will be better still? >> we have to remember we are up 10% already and still in a modest growth already. the fed tailwind will keep blowing, but what people have to, they can't get too optimistic. right now they are chasing a little bit, which is nonexistent in 2012, everybody is looking for a pullback which usually means the market will trade a little bit higher than most people think. dennis: the party continues. thank you for being with us, appreciate it.

cheryl: well, despite payroll taxes and also gas prices going up, americans were actually spending in the month of february. retail sales out today have in their best showing in five months. today's good retail news with ththe battle of brick-and-mortar stores versus the online giant. to the ease of online shopping. not to mention the tax loophole will become a thing of the past. the ceo of the international council of shopping centers said online sales and loopholes threatening entrepreneurs. but this is progress, this is capitalism. americans want to shop on the web. some brick and mortars coming in and say we will play, others will not. >> wal-mart is a great example. there are other examples as well. those are the retailers, the big

retailers doing very well figuring out how to tie the internet and brick-and-mortar stores together. we do have that format. the other retailers who are doing well but most hampered by this unlevel playing field or the mom and pop retailers in our town. they create the jobs. he mentioned the internet tax loophole. the marketplace fairness act. cheryl: bipartisan. there is federal legislation operates now, that is what we will talk about, market equity act and market fairness act. it is gaining traction, we should say. >> absolutely. it was a valentine's day gift for the industry. all the issues have been worked out by both houses of congress so it isn't going to require a committee negotiation. cheryl: it would give them the

state tax. >> it is not a new tax, just empowering the state's to allow them to collect sales taxes from the retailers who are out-of-state. cheryl: if i am living in mississippi, amazon doesn't have operations in mississippi, we are on fair playing field. unless mississippi levees that tax. >> that is right. when you're in new york and buy something online from out-of-state, you have to pay sales taxes on it. if the retailer doesn't collect it, you have to figure out how to pay it in this legislation would allow a new york to require those out-of-state retailers to collect sales tax for the consumer. cheryl: wouldn't just take it away from the hands of the states and make it one federal law so everybody is equal, everybody pays online sales tax whether mississippi is selling

things or my car business in arizona, it is all fair, would that be simpler? >> we are all about simplification. that is what this legislation is about. a philosophical question about a states rights, but from a business standpoint we're simply looking for retailers whether they are online, rick and mortar, to have the same advantage and not pick winners and losers. cheryl: when you had wal-mart opening up across the country, there was public backlash because it wa was destroying the mom-and-pomom and pop business,t is still successful bringing low income consumers goods they can afford. can't the same argument he made today with the online sales tax? >> absolutely. the government giving an advantage to the online retailers and you're losing those small mom-and-pop stores. and you get to the issue of jobs and the support of the communities, collection of sales

taxes and property taxes that are all paid in those communities. cheryl: hence why the congressmen and women are involved. thank you very much for coming in and talking about this issue. >> thank you very much. dennis: college grads make far more money than those without degrees, you knew that. but one state says some major is worth a lot less than others. peter barnes is in the beltway with the very latest on that. peter. peter: a new study in colorado suggest the best investment for college kids may not be a traditional four year degree, but a two-year degree in a technical or specialized field. a report called higher education pays fine finds in colorado and associates degree in applied sciences paid more in the first year than most other types of degrees. that is because it equips students with skills that are in demand. in colorado a high school

graduate earns $18,000 per year. a more general two-year degree earns you $32,000. a four year bachelors degree earns about $39,000. but a two-year associate of applied science degree earns nearly $46,000 in the first year. good to know, especially if you have to borrow a lot to pay for school. >> those college students, the information i have about college is largely in a block box, they have little information about the schools they are going to and what this report shows is there are real benefits to getting not just a bachelors degree but an associate of applied sciences. peter: so what kind of degrees are we talking about? they graduate with a two-year degree in criminal justice and colorado takes home a $44,000 in his first year. in health care, $45,000.

nurses earn $51,500. and get this, a two-year degree in fire protection in colorado gets you $62,000 in the first year. earlier studies have shown similar results, and we want to note this looks adjust your earnings in the first year, some other degrees may earn you more money over more years and only covering graduate who stayed in colorado to work. dennis: quite a few notes, but very interesting. thank you very much, peter barnes. cheryl: a sweet deal for sugar manufacturers unless of course you invest in this commodity. we are live at the cme next, the latest news on sugar. dennis: making real money on digital music. the president of rhapsody is next.

cheryl: and is there a mr. twinkie? is that anything now? dennis: and as we do every day at this time, a look at oil. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, whait's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

dennis: 15 past the hour. there is more. cheryl: team coverage. jeff flock at the cme with us. sugar could leave a sour taste in our mouth. sandra watching crude oil. at first, nicole at the floor of the new york stock exchange. nicole: let's kick it off. dow jones industrials down five points after five straight record consecutive closing for the dow. obviously up about 10%, and the

best quarterly return we have seen since late 1998. up about 10% for the dow is a pretty good run. again getting us going. getting concerns about the z pack. most of the buying it in grocery stores and auto and gasoline. but you never know. this will really be tied going into the closing bell. jeff flock, what is going on? jeff: we are talking sugar today, something a lot of traders at the cme are talking about, nicole. the "wall street journal" reported th the wall governments considering buying 500-ton of sugar. why? to try and boost sugar prices.

today it is bouncing around. but sugar, t and look at the one-year chart, has had a tremendous fallout. propping them up essentially, but they made loans when sugar was $0.24 per pound, it is now $0.18 per pound. the government is thinking of stepping in, buying sugar to try and boost the price so they don't default on their loans. one of the most subsidized by the u.s. commodities. sandra, what is happening with oil? sandra: jeff flock, you may have noticed traders talking about it at the open, crude oil contract, hitting an all-time record high yesterday. and look at what is happening. this is an intraday charts reaching the lows of the session, but still positive on the day, which is kind of a shocker because we got an in

inventory report that basically revealed production is up, supplies are up more than expected 2.6 million barrels in the latest week, much bigger than expected. usually prices go down. they're on the way down now about to break into negative territory but overall look at this one-week chart. very telling story, that of bullish momentum keeping prices up right now. up for a fourth straight session, 2% over the past week or so. still off 6% from the 2013 high. we were just about $98 per barrel. bringing up the year-to-date chart, still well off of those highs, but crude output 7.160 in barrels per day. that is the largest amount since 1992. start to look for those prices start to come down even further, that can push down your gas prices, natural gas prices in the green.

if not two other than that. in the red. taking a loo look at how this is affecting stocks, pretty mixed action. chevron in the green at oil continues to hold on with a slight gain, exxonmobil in the red. back to you guys. cheryl: thank you very much. dennis: the dow down only a point. we have the latest as president obama meets with ceos at the white house after calling out the chinese. cheryl: and we continue to look at live pictures from rome. there was gray smoke at the vatican. but there are live pictures, we have them up for you, and two more votes this afternoon, we shall see what will happen. so far, the cardinals have not picked a new pope. a look at how the currencies are

faring against the u.s. dollar.

>> 23 minutes past the hour, hello, everyone, this is your fox news minute. the cardinal electors are inside the sistine chapel at day two of the conflict continues. so far three ballots have resulted in black smoke resulting from the chimney. two more rounds each morning and two in the afternoon until a new pope is chosen. venezuela acting president is launching investigation to acquisitions the late president hugo chavez was poisoned. he died on march 5 after a two-year battle with cancer. he named interim president leaving the cancer was a result of poisoning by foreign rivals. a day after questioned by authorities, investigators at the internet café allegedly a front for gambling. she proposed a bill that would benefit these internet cafés. on friday they will investigate

the business of gambling, but for now a quick look at the headlines making news now. back to you. dennis: thank you. i am waiting for animation, but we will go without it. best coverage of the cyber threat right here. annual global threat hearing drawing top security advisors who say the gravest threat isn't al qaeda or even north korea, it is cyber attacks and cyber espionage. fox news chief correspondent. catherine. >> good morning. later today the president will discuss cyber threat with leading ceos in the white house coming after he recently signed executive order and also calling on congress to provide legislative direction. in the meantime the president has now gone on the record calling out of china for cyber espionage. >> we have made it very clear to china and other state actors

that we expect them to follow international norms and abide by rules and we will have some pretty tough talks with them, we already have. >>, one day after officials told congress cyber is more of a threat than terrorism to u.s. national security. the head of the u.s. cyber command for the first time publicly confirming the u.s. is developing an offensive capability to respond in the event of a major cyber attack. alexander predicted targeting of u.s. financial institutions is on the rise. >> i do see this as a growing problem, and i believe this is one of the problems the antivirus community and others will say here's what you're going to see in 2013. what we're seeing with the banks today i am concerned will grow significantly throughout the year. we have to address it. >> in a recent interview, the leading democrat who has rigorously briefed on the event.

it could be too destructive attacks as well as imaging hardware and software. >> there certainly has been destructive attacks designed to hit us here in the homeland. there have been attempts to do that here at home, not just around the world. this is an ongoing phenomenon. the biggest cyber challenge we face right now is the cyber theft were experiencing from china and other nations. >> this shift from disruptive attacks too destructive attacks on the issues that hav has the attention of u.s. intelligence officials and they have seen it overseas with the destruction of networks and computer software and as you just heard, they have seen attempts to launch similar attacks against targets in the united states seen as a major escalation and it is seen as the work of these nationstates.

specifically i ran in this case. dennis: it is the next global battleground. thank you very much. cheryl: in just about three hours from now president obama is said to have his security cyber meeting with ceos. though he knows better than former united states secretary of homeland security. now chairman on cyber security. he will join melissa francis and lori rothman coming up next at 1:00 p.m. eastern time on fox business, that hour of "markets now." dennis: can anybody make money on digital music? the ceo of rhapsody is here. cheryl: worth about $100 million. the ceo of the company will talk about how has managed to make profits and giving millions to charity to help disadvantaged children. as we go to break, so obvious that the winners and losers. they have some names that are winning including netflix,

walgreens and more. we will be right back.

today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.

cheryl: cds move aside. the digital revolution in music is the biggest moneymaker in the industry. we have a return date for the twinkie. a new owner wants it back on store shelves before the end of the year. and the iditarod is over and the winner is the oldest person ever to take home the prize in the grueling dog sled race.

we have nicole petallides on the floor of the new york stock exchange. nicole. nicole: i wanted to take a close look at boeing. of course we know it has had a pr nightmare with so many issues pertaining to the 787 dreamliner, but the good news we are learning about boeing is the faa is ready and approving the battery certification, the new battery certification during test flights, and bring us one step closer to being back in service once again. i just wanted to quickly show you what niklas is saying, they put it at a buy rating and upped the price target from $85. certainly wan one to watch and better news rather than what they have been doing with this year. dennis: thank you, nicole. digital music boom?

sales surpassed sales of cds. about time. is there no hope in music business? jon irwin, you're a brave man. he had been ceo for three years or so at a time music seems free and ad supported everywhere, you're stuck to the pay model. how is it going? >> since we spun out from realnetworks three years ago, we have more than doubled our subscriber base. this is the first time the digital music sales have surpassed physical music sales and this is the time when the technology and the business of rhapsody is ready to expand and explode. dennis: still, you have only 1 million paying customers. it seems like you failed in your model has been proven wrong. what do you say? >> absolutely not. up until 2008 the way people put music portably with them was on

the ipod. it had to have an ipod to take music with you. 2008, 2009 with the iphone, the android devices, the capability of these devices now allows people to take our model we pioneered with them anywhere, anytime on the devices they now love. so this is just the beginning of a rapid expansion in this market. dennis: what is the most often occurring space, where they often listen to rhapsody? >> it is on the mobile device. it is initial entrée into the car and there are more than 70% of listening on mobile device. dennis: if you're such a good business model, why did realnetworks let go of you? >> realnetworks still owns a share in the company, a major share in the company and continues to provide that leadership and guidance.

we were able to spin out a tiny industry move quickly to pursue our own roadmap, create the greatest music experience for the fans so we can grow the customer base and keep up with the rapid changes in technology. dennis: like 120 million per year in revenue, privately held though, right? >> privately held. dennis: could it be bought by different company who could leverage you up some? >> be still tim tried to buy the best music for the fans. we work with wireless providers and cable companies so that we can bring music and embed rhapsody in that listening experience for those partners and their subscribers. dennis: your answers are very well hers and articulate. performance fees. radio stations which have been around for over many decades to

no performance fee whenever they play a hit song, but online services end up paying pretty big fees. pandora has been in congress trying to lower fees. what does rhapsody have to pay for the differ from radio? >> is their version of radio, still short of on demand. we pay the majority of the revenue we get to the suppliers, to the label and to the artist eventually the rights holders. there is still margin for us to focus on investing or profits creating a great experience for music fans to listen to. dennis: it seems like an artificial difference between what radio does and music is music i don't understand why the old tech guys get away with don't have to pay any fees but the new guys get hit hard. >> because it is fundamentally better. you can listen to it over and

over again. dennis: nice job. cheryl: a question for all of you, what is your vice? do you like to smoke once in a while? you are not going to want to miss friday on fox business. a networkwide special on all of your favorites and how you can make money on them. coming up on the noon hour, we will roll the dice and focus on gambling. online gambling like poker, a game of chance. but former senator says it is a game of skill, it should be legal to play online. he is going to be here on the noon show on friday, all day long on fox business, all about the vice. dennis: cheryl has no vices. i have lots of vices. more people are watching brian williams on the 6:00 news than

any prime time show on nbc. that story ahead in my media minute. cheryl: president obama set to meet next hour commute won't believe how low cut his ratings are with the american people. actually, you are going to believe it. dennis: a look at the 10-year treasury. [ indistinct shouting ] ♪ [ 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 onhinkorswim from td ameritrade. ♪

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>> i am tracy byrnes with your fox business brief. a $1.2 billion stock repurchase for the company a merry purchase of the program will be to offset dilution from the equity conversation plant. march madness tipping off next week. somebody should start repairing for a drop in productivity. according to an annual study, nearly one third of employees will spend at least three hours each week, each work day following the basketball tournament. federal trade commission says companies are cutting on twitter must include a disclosure. the problem is, only 140 characters per tweet. companies think about the disclosure by starting a tweet from xp 10 with a warning that states "ad:" or "sponsored." with the spark miles card from capital one,

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cheryl: what if you could create a great product on a multimillion dollars company and do some good? all that is happening at the company, life is good. $9 million raised for charity for children. marc jacobs is the ceo of that company and joins me now. we have t-shirts and products in all kinds of stuff. you look very comfortable, by the way. >> thanks, cheryl. appreciate it. cheryl: they go out and donate to charities, that is part of what they do, but that is the value behind the company. why did you decide to go that route? >> i think the whole message of life is good is optimism is powerful and so our positive purpose is to spread the power of optimism so to us it makes sense that we are connecting

with community. we look at it this way. there are social problems over here in a different conversation where businesses and capitalism are over here. and we actually believe all the answers are over here with businesses who are lucky to have this business, as you said. very simple idea work. it is natural to give back. cheryl: you and your brother didn't have business experience, you took it a chance. >> all the more reason we're inn a day and age consumers care about what the company stands for. for us the consumers of th are e ones who built the business. cheryl: and it was word of mouth. >> that is right. cheryl: you have apparel, t-shirts. like a hawaiian style hang 10. stationary, football, frisbee, all that good stuff. how are you finding your products selling overall?

>> business is good, it really is. we held onto all of our employees, we are very healthy and back in growth mode. for every business we can look at the macro sittation and say if it in debate if it will get back where it was or can be part of the solution. cheryl: what happens if production cost goes up, taxes will go up. how do you handle that though? >> like anybody else, your margins might fluctuate up or down, but we aae committed to helping kids, it is part of who we are. the fact we are doing the right thing consumers give us a vote and they believe in us. we have been at it for 19 years, so they see something authentic and what we are doing. cheryl: do you find you get different breaks in the

business? do you find you're getting different breaks when you go out to buy? >> people help us and they root for us and they believe in us and i believe even sometimes our competition routes for us, and that is different. cheryl: bert jacobs, thank you very much. still like the t-shirt. thank you. stocks now, nicole has a big winner and a big loser on the s&p. nicole: we see these indices going over the unchanged line. over 57 times yesterday and the s&p is virtually flat but the stocks on the move so we will take a look at the two names on the top and the bottom of the s&p 500 stocks. on the top, walgreens has been a winner year to date. today an analyst upgrade. the price targets now $48 from $41, so you can see it still has

upside potential. bolero down 2.7%. there is a look at valero chart. valero is a winner about 30% going back nearly 3% on the same day where we are seeing oil pulling back. the oil at 92.03. back to you. dennis: thank you, nicole. in your "media minute." gone missing almost 12 million viewers. that is how far down the combined average audience is for the top 10 shows in prime time on the big four networks. in total viewers, only cbs up a bit. fox down 22% on "american idol" declines. in the wheel coming off at abc, starting the season at number one but finished february in fifth place behind the spanish

language television channel univision. and from one of the more premiere magazine publishers in the world, print is dead, long live video. they are starting video channels on youtube. some say it is long overdue. entertainment weekly and current driver magazine already have their own news channel. hbo game of thrones. the melodrama returns on march 31 and just in time, iron throne is a blonde ale from the brewery in cooperstown, new york. just one question, shouldn't they have done this for "cheers?" cheryl: the oldest washer ever takes the iditarod dog sled race. details coming up. dennis: and twinkies has been

bought by a billionaire. we will tell you who the proud new owner is ahead. cheryl: we take a look over at the nasdaq. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

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cheryl: it is time for your "west coast minute." it is not exactly better business in los angeles. the 101-year-old better business bureau has ousted the los angeles chapter and strip it of its title after years of internal problems i and a large

amount of audits. accused of asking businesses for money in exchange for better ratings. he is now the oldest champion in iditarod history. 53-year-old alaska resident mitch seavey crossed the finish line to win the sled dog race, the biggest event in alaska. nine days, seven hours, 39 minutes, 56 seconds. mitch seavey is the oldest winner. his son, dallas, is the younge youngest. he won last year, believe it or not. if you want to invite 50,000 of your closest friends to your hawaiian wedding, you're in luck. offering the home of the pro bowl as a wedding venue. it can be rented during the off-season he can get married at the 50-yard line. that is your "west coast minute." they do everything bigger in texas, and by the south by southwest fiesta bowl is no

different. music, film, technology and this year for 300,000 people expected to attend the big party. dennis: live in austin, texas, at the two weeklong festival which is it a goo a big busines. >> the festival is fully underway really spread out all over the city of austin, and it started as a music festival back in 1987. that is really how a lot of people came to know south by southwest. but it really has evolved through the years incorporating film, fashion and perhaps the biggest component, the interactive portion where they are thinking up new apps, new technology, new gadgets. it made twitter famous back in 2007 and two years later sportswear was launched right here, so it's quite possible the next big household name could be born here. not to mention more than

$135 million tourist will be infusing into austin and the state of texas while they are visiting. listen. >> weaving the hotels are first and airlines all come into play. what really speaks to is the florist and the bellman and the taxi driver, how they feed their families in the way they spend their money in the community. >> our best days we are a preview of what will be hot in two years. which makes it hard to say nothing is wrote in thi him thir at south by southwest because we don't know what will break and we won't kno watched the first f years. >> the real music portion of this thing gets underway this weekendby big names like green day performing. it is a star-studded event deep in the heart of texas. dennis: thank you very much. and elsewhere, twinkie has found a savior.

billionaire leon black is the new mr. twinkie. apollo global management the only company to make a bid for the business. also dingdong, snowballs and other snack cakes will be back on the shelves by september. they could go up for auction on friday. cheryl: the obama administration is calling it a bigger threat to the united states and even al qaeda. cyber attacks. an inside look at how washington is prepared to handle the growing threat with secretary. dennis: it has been two years since the nuclear crisis in japan. former energy secretary spencer abraham on why he is bullish on nukes.