we have team coverage on the whole story of her head. lori: north korea warning the rest of the world to get out of south korea. talk about unintended consequences. we will talk with the chief executive of a new york-based clinic forced to push away cancer patients because of the sequester cuts. melissa: the fbi is investigating insider trading. what more can you tell us? >> we are following both herbalife and sketchers. they both reopen. the fbi offices in los angeles

-- some of this took place for shares of herbalife. this is why kpmg stepped down as the auditor for herbalife. now, they are looking towards sketchers. sketchers also said the former audit partner may have passed nonpublic information about it, about sketchers to a third-party. someone is under some serious investigation today. both stocks are halted. i also wanted to talk about jcpenney. ron johnson, ceo out. we solve the stock down about 50% over that time.

they brought in the old ceo to try to hold the reins. people are up in arms. the stock is down 10.5%. the most heavily traded day for the stock ever. the stock itself is looking to close at the lowest levels of the year. melissa: thank you so much. huge stories today. will these incidents her confidence or is the concern isolated to just these companies? i want to get your reaction to all the news that is moving the markets today. the market is still in positive territory. do you think these stories are isolated or did you think they

hurt others? >> is it something that could flood the entire market? i think it is more company specific. melissa: you think earnings is a bigger driver right now? >> yes. it gives an opportunity to get in. melissa: we are looking at about an increase of six tenths of a percent. do you agree with that? >> well, i think, likely seen before, it is probably a low bar. company management has done a very good job of managing expectations. we would see early on about 3.5%

growth. we ended up higher by 7.7%. what we gained in the fourth quarter, we lose. likely, that number will end up being in the low single digits when all is said and done. melissa: people think the second quarter is even weaker. do you think there is a danger that the guidance will be weak in that will undermine confidence in the market? >> that is key. some people are saying that the worries about the first quarter are temporary in that we will start to see better numbers in the second quarter. consensus estimates have not really changed. the economic numbers, we think, are going to end up surprising with the first quarter when gdp comes out.

a little more firm than people are thinking. melissa: really? okay. that would be nice. >> we are looking for growth above 5%. for the whole year, we are looking at 2.7%. each quarter is expected to be sequentially higher. melissa: you feel optimistic to be. what do you think is priced into this market right now? of course, that is what viewers care about. what do you think happened probably? >> investors are waiting to get additional news that makes them feel a little bit better. they felt pretty good since the june 1. melissa: do we need that to maintain these levels? >> i think we need that to go higher. we are looking at numbers from a technical perspective and we appear to be overbought. the thought is, do you use this

as an opportunity to buy now? you do not have to see lower prices got just a sideways movement for a couple weeks or so. melissa: it is so interesting to see your perspective. lori: small-business owners are feeling the pinch of slow economic growth and deadlock in washington. sales expectations remain weak. the one bright spot was hiring. the report highlights that uncertainty is slowing the economy. he will join tracy byrnes and ashley webster in our next hour on markets now. now for more on jcpenney's.

>> one of the reasons the board may have taken him is because the have strong relationships with vendors. one of the problems jcpenney's has faced in the past is the decision to get rid of coupons and sales, it also may have been the final nail in the coffin. >> coupons create a sense of urgency for shoppers to get into the store that day, that we, that weekend. all the other competitors, now they are closing in for the kill. a mistake that may come back into hot jcpenney.

the new ceo, former ceo at one point, under him, by the way, sales fell. at the end of the day, here is what this boils down to. according to standard, it was less than adequate liquidity. some people believe about a billion dollars on hand. not enough to help them get through this transition. back to you. lori: that is troubling. i cannot remember a world without jcpenney. melissa: $24.4 billion is not

enough. one of the biggest investors call the buyout offer inadequate. lori: lou dobbs weighs in on the unbelievable new report highlighting the wasteful duplication. melissa: take a look at metal. gold, silver and copper all trading higher right now. we will be right back. ♪ all stations come over to mission a for a final go.

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♪ melissa: it is time to make some money with charles payne this hour. charles, what do you have? charles: a good time to look at them before the street jobs that bandwagon on them. their relationships have gotten better.

software maintenance and services is starting to come on real strong. their margins are really starting to expand. it is what gives you stock expansion, typically. i think the stock is very cheap down here. i will say for technicians that comes at a close of 3650. my target is 42.43 on it. melissa: what do you think about everything going on in the market today? there is so much noise whether you are looking at jcpenney or what is going on with kpmg. charles: not really. it shouldn't. jcpenney hired a guy and they thought he had skills that apparently he did not have or he was a maverick. melissa: whatever. it did not work out.

charles: i start thinking enron and this kind of thing. additionally, you do take a pause. if they were involved in looking the other way when the books were being cooked, that would certainly be -- melissa: the market is still up. charles: these guys are taking advantage of good news. unfairly, but good news. lori: charles, thank you very much. we do have news on the bird flu in china. and a person has been confirmed dead. take a look at how some of the pharmaceutical companies are trading today. they are all up. melissa: as a do every 15 minutes, let's go to the new york stock exchange and nicole

petallides. nicole: let's take a look at what dell is doing right now. it is a gain of nearly two tenths of 1%. they issued a letter on the takeover deal saying the offer from michael dell and silverlake is flawed. we heard this before. it says the competing base are superior. let's move onto pandora. virtually unchanged. up to sense now. we will continue to watch that. registered users here in the united states is up.

back to you. melissa: thank you so much. lori: airport on the ground in south korea. melissa: lou dobbs is here next on the government wasted repetition and what it is costing you. ♪ [ male announcer ] you are a business pro.

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♪ >> i have your fox news minute. family members of the sandy hook mass shooting victims are meeting with senators to lobby for tougher gun laws. connecticut senator says the families are -- at the gop filibuster. thirteen are dead after a shooting rampage in a small

village. a 16-year-old man went into houses killing. in philadelphia, a federal court hearing on the national football league and concussion litigation has ended. former players are suing the nfl for allegedly concealing known risks to the brain because of head injuries. those are your headlines. back to lori and melissa. lori: thank you. federal programs are leading to billions of dollars in government spending. just listen to these examples. renewable energy products go through 23 federal agencies. unnecessarily costing you and me about $15 billion.

the forfeiture program lost in 2011 because the two agencies cannot find a way to share storage facility. even federal catfish inspections are done by three different agencies. that said the government back $14 million. this is just obscene. lou: good to be with you. how much of this is going to continue? we are talking literally hundreds of billions of dollars here. all of this dwarfs sequestration. the administration is still running around. it is laughable what they are doing. what is not laughable is that

even the folks that are identified all the waste in government, all the duplicate programs that why you would want to duplicate any of them is beyond me, but they never do anything about it. referring to uniforms. i find this mysterious. each branch has its own camouflage uniform without sharing it with other services. that is something that the president of the united states say cut it out guys. these are, i think some of the sorriest looking uniforms in the history of uniforms. these are pajamas with a little camera frosh sprinkled over. who's bright idea this was? no matter what they tell you, the reason for the uniforms was

to reduce costs. they have exploded costs as a result. they have a lousy uniform and they are duplicating costs and raising costs. so goes the federal government think about how much we are spending to have the president run around the country and hold conferences with various folks as he lobbies for various programs. how much money is being wasted supporting this president with his agenda? send us a memo. cut the nonsense. then loading them on the airplane so he can go ahead and exploit them some more. this may be smart politics, but it is on seemingly behavior on the part of the president or for

that matter anyone in elected office. melissa: on a lighttr note, when we talk about the catfish, these are the people that -- it would be funny if we were not literally putting our lives in the government's hands. lou: i am more optimistic than you. they screwed it up to this point. no one has read the legislation. what we are doing is getting the onset of obamacare. it is swamping us with trillion dollars in expenses.

now it is the later another year. we are going to see further delays. the exchanges are not being created. it is really a silly and simple idea. these people are trying. this president wants to turn it over. the problem is, he does not like to work. he assumes no one else should be working. they assume the same because they are not ready. he doesn't like to work so he is now putting people back to work. we have this government that cannot do anything. he has a better idea than a constitutional republic.

he has obamacare and he has obama way which is the only way in his view. lori: all right, lou, thank you. lou: could you imagine that conversation? lori: lou is with us most days at this time. chairman of the national republican congressional budget will be on with him later. lori: north korea warning the rest of the world to get out. korea. lori: we will speak with the ceo of the new york cancer clinic that can no longer see one third of the clinics 16,000 medicare patients because of the sequester.

melissa: take a look at who is off and who is down today. a sea of green. we will be right back. ♪ . ..

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get protected now. call the number on your screen or go to lifelock.com to try lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! lori: stocks now as we do every 15 minutes. back to the floor of the new york stock exchange and nicole petallides. nicole, the dow and s&p hitting new session highs right now. >> right. so we're watching them tick by tick here. the dow jones industrials above 14,700. obviously a big move in percentage terms. all major averages are up. we're seeing stellar gains for the year 2013. we've seen that back and forth action for the dow jones industrials over the last 13 sessions or some we haven't seen that since the late '90s. what is interesting we continue to move to the

upside. the majority of dow components are well in the green. we're certainly led today by technology names such as microsoft and intel and hewlett-packard and cisco. caterpillar has also been a real winner. wal-mart also. the vix, the fear index right now as i take a look is to the downside. other thing i was noting to was the u.s. dollar for example. that was something i looked at early on. it was lower the i see dxy continuing to drop which gives a little opportunity for markets to move to the upside. as far as commodities, oil and fold still higher as well. we're seeing acceleration in the buying and plenty of green on the screen and some new record highs as well. back to you. melissa: wow, really moving higher. nicole, thanks so much. the situation in north korea getting increasingly dire with new threats of war. fox's david piper is in south korea with the latest. david? >> melissa, yes, the latest we have north korea is warning all foreigners should leave here in the south because of danger, there is danger of a nuclear

war. now this came in a statement from a group supported by pongyang calling itself, the asia-pacific peace committee. they said the situation on the korean peninsula is heading for thermonuclear war. in the event of a war we don't want foreigners living in the south to get hurt. no reports of any panic rush to the airport though. this is the latest of a series of warnings about an upcoming nuclear war here on the korean peninsula. pyongyang said it could fire nuclear weapons at u.s. mainland and north korea. experts don't believe it has the know-how yet to put a nuke on a long-range missile. it shows it is capable of firing medium-range rockets without a nuclear warhead. according to the south korean government the north looks like it is preparing a mid-range missile test now. according to the reports out of here pongyang's preparations are now complete for the test of a musadon missile. the news agency quotes unnamed senior military official here saying their

intelligence shows pongyang could fire the missile tomorrow. now the south korean government says the missile test could be conducted on the 10th of april. it is the same day that pongyang has warned that foreign embassies in the north should evacuate their staff. japan is at the moment preparing to deal with any missile launch. it has deployed warships with the capability of interseptembering a missile and a second line of defense is deto deploy a patriot missile system in and around tokyo. back in the 1990s the north koreans fired a missile over japan. they didn't find out until they tracked later as they tracked it in the pacific. they don't want to get caught now. japan is ready in case anything comes their way. back to you. melissa: wow, david piper, stay safe, thank you. lori: all right, well many of us have not been affected by april 1st budget cuts known as the sequester. it is a different story for many cancer patients. cuts forced community cancer

clinics across the country to turn away medicaid patients because:i cans can not afford to treat them. we have the a doctor head of north shore oncology treatments he has to stop treating one-third of his patients. doctor, welcome to you. >> thanks very much. lori: this is terrible. wasn't medicare supposed to be shielded from the deepest sequestration cuts? why are the cuts turning out to be so impactful? >> well we didn't find out the cuts were going to apply also to the drug reimbursement. we knew it would be to the services portion of the medicare bill but we never knew it was going to affect directly the drug reimbursement that is what really caused the problem for most community cancer centers across the country. lori: in other words, it is a 2% cut to medicare. because you can't apply that 2% to the cost of drugs it goes to overhead right what you're describing as servicing and storage of the med kin. when you compare 2% to 6%

that's a significant and a deep cut and what these oncology centers like the one you run can not handle and can not restructure to accommodate, am i understanding that correctly? >> yeah. it is a little complicated. see the acquisition cost of the drug is higher than what medicare computes. so when they compute they give us 6% over what we pay it is really between two and 4%. so if you have a 2% cut on top of that, you could see you're right down to exactly what the payment of drug is. in some instances you're underwater. so what we've decided to do is not to send our patients elsewhere for all of their care but for their chemotherapy portion of their treatment, they're going to, some of them need to be treated in a hospital setting. lori: so give me a sense how much out-of-pocket costs it would be to these cancer patients? >> well, for them to shift to a hospital-based care for their chemotherapy, it will cost them about $650

out-of-pocket. but overall, the real issue is, the cost back to cms which we calculated at about 6500 dal per patient per year. so what we see if the net effect of the see question questionstation -- sequestration cut, 1 1/2 billion dollar increase cost to cms by what we see to the shift of care. lori: here is the frustrating aspect of all of this our federal government, doctor, as you know is grossly overspending, in your case we're finally seeing cuts but they're cuts to services or medications saving or extending people's lives, right? do you have any thoughts how legislators can get it right when it comes to budgeting? >> the only thing i can look at is oncology care. i can't solve all their ills but in terms of what we do, there are certain things that need to be protected and first and foremost we should protect our cancer patients rights. they should be treated where they feel comfortable, where

they're safest and actually where i is the most efficient and that is the community cancer setting. lori: well, we appreciate you engaging me on that last question. doctor, keep us posted. good luck to you. >> thank you. i will, thanks. melissa: so kpmg resigning as independent auditor for herbalife and skechers. charlie gasparino up next on the insider trading allegations. lori: let's check interest rates. a big rally underway in the stock market. not a whole lot of movement in treasurys with the 10-year holding at 1.75%. that is still the lowest level we've seen in a couple sessions. out the curve the 30-year duration is yielding 2.93%. we're back after this. ♪ [ 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.

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>> i'm adam shapiro with your fox business brief. herbalife and skechers both confirmed kpmg has resigned as their auditor due to an insider trading scandal at the accounting firm. shares for both companies have resumed trading after being halted pending news. late yesterday kpmg said it was withdrawing auditor reports for two unnamed clients. the 4.2 million americans wrongfully foreclosed on during the housing crisis will soon get money from the nation's largest banks. according to the federal reserve and u.s. comptroller of the currency, $3.6 billion will be distributed, roughly 90% of borrowers will receive payments by the end. month. boeing announced a one billion dollar expansion at

its 787 assembly plant in south carolina. the plant will increase 2,000 new jobs over the next eight years. that's the latest from the fox business network, giving you the power to prosper

melissa: all right. breaking news right now. sources at dow jones say the sec is now investigating kpmg's executive scott london's role in insider trading. his linkedin page show he has been with the company for 29 years. we're of course following story with more breaking news, charlie gasparino is here what this means for herbalife shareholders? >> we should point out, forget about the sec, the justice department is looking into this and that's why this is a really big story. the sec filed civil charges. it is perfunctory often in insider trading cases that the sec gets directly involved. we should point out why this is serious and discuss who it is serious for in a second, it is serious

because the justice department is investigating. this is part of the wide-ranging investigations to insider trading and when someone, when the justice department investigates you go to jail. sec run out of business or gets fined. that is why this is big. melissa: good point. >> we should point out who they're investigating. i've been in contact with sources close to kpmg. they are telling me kpmg, the entity, of itself is not being investigated by the fbi and the justice department, is not. who is being investigated? the partner himself, mr. london is being investigated. his activities are being investigated. kpmg in of itself i understand, may change in a few minutes, i will come back and change it but i generally know how this stuff works, kpmg is not being investigated. why are they being investigate for obvious reasons. this is pretty serious matter. i'll tell you this guys, people are saying whether on my twitter, page, this is great, because it has nothing to do with herbalife. one of the things this guy, london was senior auditor was for on shares of

herbalife. because it is not about herbalife really, kind of good news for the stock. herbalife shares have been bouncing all around today. i will not tell you that is not necessarily the case. melissa: right. >> what we don't know whether this gentleman, here is what he did, took the information, apparently gave it to a third party who did whatever he did, traded on it. whether that third party bought or sold the stock clearly, if that third party, especially in recent months, controversy with bill ackman, the short seller says herbalife is pyramid scheme versus carl icahn activist investor, i would say greenmailer, great thing, selling shakes around the world, that partner in particularly recent months giving information to this guy that caused this guy to sell, that is not good for shares of herbalife. i will tell you this, i don't know what happened in recent weeks or months. i'm still trying to investigate that but that is key for people that are trying to, i mean the news

is interesting here. kpmg being involved obviously look i said --. melissa: trades were connected to those two companies? >> the other company was --. melissa: skechers. >> i'm not as focused on that. not as big of a news item these days, but herbalife is particular. reason i focus on herbalife, skechers is not a big-time tradable stock lately. herbalife is. one of the biggest controversies in the market whether you buy or sell it. i'm telling you this if you could find out which way this guy was doing what he was doing in recent months based on this kpmg information, which clearly is, he is a senior auditor. he knows the books. that is a big story. that has not been reported yet. lori: i was going to come in, this isn't likely an accounting cook the books issue? into no. lori: this is information being passed on for insider trading. >> i will say this, based on what we know from kpmg's standpoint, that is what was interesting. they didn't know what was happening. the minute they found out about it they basically did certain things. they got rid of the guy.

by the way they killed, some of the reports he was involved in. whatever the legal definition, accounting definition, null and void we'll say, use that for now. why did they do that, because it was tainted. the minute he started sharing information with outside source. doesn't mean it was wrong. it means it was tainted. they took fairly, fairly come hensz sieve and far-reaching steps to say, a, limit the damage to them, do the right thing. to separate this buy out. basically that's why kpmg, i believe and i believe this is from inside the company they are not being investigated. that they did the right thing. this guy was kind of a lone wolf. it may change. it is a huge companiwide conspiracy? i kind of doubt it. melissa: is there any way it could go beyond these two companies? do we know it is limited to two we're talking about or do we know trades based -- >> when they get caught, they get caught, i'm writing a book, so i kind of know, obviously too much about this stuff.

they get caught because they come up on sort of these radar screens that the nasd has. now finra. i'm dating myself. finra which is self-regulatory organization of the securities markets. guy named cameron funkhouser. melissa: can't be his real name. >> cameron funk hauser. he is amazing guy, set up surveillance system. market, one of the best in the world. he calls it a thousand cameras on every trade. they have this in depth surveillance system if you trade behind key events they can basically pinpoint those trades. that is probably how he got caught. i would think he got caught trading, especially around recent events involving herbalife. this is my surmise because it is such a watched and traded stock, that all those surveillance cameras were on the battle between ackman and icahn and all the stuff that was going on that he placed some trades before some key events. maybe before herbalife announced its earnings a

couple months ago? was that third or fourth quarter earnings? that was a key trading event. right around those key times that i'm sure, there's a good chance they caught him then. this story is fascinating for a number of reasons. you know the crime drama of it i think is fascinating. i'm into these type of stories. melissa: you will have to do a separate book just on herbalife. just on herbalife. it gets bigger and bigger. >> if you could figure out traders out there, that's why you watch this stuff, figure out whether this guy from kpmg --. melissa: obviously enormous difference one way or the other. key to the whole story. if this were a movie that would be a critical piece of information. >> i wouldn't go that far. melissa: charlie gasparino? no? >> guy got caught would be huge. melissa: depends if your goal is making money. >> well. melissa: charlie gasparino. thanks so much. great stuff. lori: let's check out the dow soaring. we're up at session highs, 89 points. 14,702. the taxman looking to friend you on facebook and may even

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melissa: consider this cyber stalking taken to a whole new level. the irs may mon nor your social media to make sure everyone pays their taxes. shibani joshi has all the details in joshi on tech. shibani, what is the irs saying on social media steakout to catch tax cheats?

>> melissa the tax agency, the irs is getting more resourceful and creative how it tracks down people who are delinquent on their tax filings, six days before the official due date, april 15th, coming before tax day this year. new reports on irs trolling out facebook and twitter to get information on you if you don't pay the taxman. fox business reached out to the irs. here is exactly what it had to say about the issue. it said quote, suggestions that the irs is using social media to target taxpayers for audits are wrong. audits are based on information contained on a person's tax return, not a posting on a social media site. respecting taxpayer rights form as central part of all of our enforcement efforts. taxpayer service is the central thrust of the irs's efforts on social media. i reached back out to the irs. i said what about people who are red flagged. they didn't respond to me

but specifically that are what the reports are all about, if flagged or in trouble with the irs that is when they start creeping on your social media sites. melissa: wow! they're not the only ones using social media. i read crooks use social media attacks time to steal identities. is that what is going on? >> this is high time for social media and tax fraud according to a government committee in the house oversight and reform. one million fraudulent tax returns were filed in the last year. the bigger issue however is not just the use of social media but your network how you access the social media. kent lawson, the ceo of a private communication corporation said using a wi-fi network that is not secure means your social security number and confidential tax information could end up with an identity thief long before it reaches the irs make sure, not just about being social but being on a secure network as well. >> boy, shibani joshi. thanks for the warning on all fronts. lori: really. important one too. work hard, play hard, right?

how the saying goes. in california 2:00 a.m. is the time to leave the bar. sounds reasonable. everyone is shaking their head. a state senator says 2:00 a.m. is too early. in an effort to keep up with hot spots like new york and to attract more tourists he is proposing to extend last call for alcohol to 4:00 a.m. this of course means more tax revenue, big business for nightclub owners. l.a. tourists spent a record $16 billion. police are concerned more drinking could cut cause safety issues. melissa: can you imagine that is how you make your vacation decision. bar closes at 2:00. i don't want to visit that town. forget it. coming up tonight on "money," senator david vitter of louisiana joins me to discuss the new brown-vitter proposal would require banks to raise an additional $500 billion in capital. critics say it will break up banks and hurt economic growth. dick bove says it is

anti-american. we'll talk about all of it tonight at five p.m. here on fox business. >> business confidence falling after the rising last three months. in. fib chief economist bill dunkelberg weighs in on the shift. he joins tracy byrnes and ashley webster next on fox business. don't miss it. @

ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. jcpenney plunged. shares tumbling 11% as investors are totally fed up with the latest disaster at the long-struggling retailer. the company's board ousting ceo ron jon's sonsz and -- johnson, replacing him with the man he replaced mikes ullman. some are calling for the entire board to resign. ashley: job creators losing confidence in the economy. nfib chief economist bill

dunkelberg will tell us what small businesses fear the most. that is coming up. tracy: president obama's budget is due out tomorrow. hardee's chief says what the president can do to help american businesses. ashley: first the top of the hour. time to look at stocks. let's go to nicole petallides on the floor of the new york stock exchange as we do every 15 minutes. the dow is still up 32, >> it is a breaking news day. we're seeing major market averages with up arrows. we're gaining some momentum today. right now we're up about 82 points. we were up almost 100 points. up half a percent on the s&p and the dow. we have to get to the kpmg story pertaining to herbalife and skechers. this is because of a partner that allegedly was involved with insider trading and giving out some confidential type of information and, now the fbi is involved in los angeles. so you can see both herbalife and also skechers are the two where kpmg

stepped down as the auditor, accountant for these companies and the question is whether or not this partner did actually conduct some sort of insider trading pertaining to the shares of skechers and herbalife. meantime the shares seem to be trading pretty well. they are saying none of their information has been compromised. their accounting has been clean. a quick look at first solar which is jumping. this is mother of all short squeezes. a lot of shorts didn't expect great guidance. that is what they got trying to cover those shorts, up 44%. ashley: wow, that is quite a move. nicole, thanks very much. we'll be back in 15 minutes. tracy: let's talk more about jcpenney. shares down 11% as the retailer ousted its ceo ron johnson. everyone has been waiting for that call. they brought back the predecessor, i don't know if people expected that. adam shapiro is here, right? bring the old guy back at that was the problem to begin with. >> a couple reasons ullman has brought back. he has strong relationship

with vendors. vendors are not betting on jcpenney. they're charging premium. they need to stablize that. he has to raise cash. in words of standard and poor's, the rating service says they have less than adequate liquidity. they will need money to get through this transition. there are things coming down the pike for them really troubling. listen, we have statement from oppenheimer equity. they put out a note on jcpenney's this morning. quote, we're concerned this change could further upend the company and further a spiral down for j. cp as you read further into the note, we believe near term risks for jcp are severe and turning more treacherous for the company. the company, their web page. look at this. they're still listing ron johnson as the ceo but that clearly is not it. look at board of directors, we reached out. i was calling jcpenney to comment from the board of directors. only one member of the board has direct retail experience. that is leonard roberts.

he was, at one point ceo of radioshack from 1999 to two 2005. tracy: that worked out well. >> exactly. a board of directors under mr. johnson. they went through get rid of coupons and sales strategy and that backfired. it did not work. they saw sales drop 25% at jcpenney. you have a board of directors with only one member with direct retail experience. if you're a shareholder, you have to be questioning do they're going to do with this company? if you look where their stock is trading right now, oppenheimer has a price target of $15 a share. it was almost double that if you go back a year ago. jcpenney's stock has tumbled. ashley: what does ullman have to do? he has to bring in capital and stop the leaking. he was turned over for johnson in the first place. >> right. ashley: will he bring the ship level and set up a sale or what? >> i don't know about a sale but i can tell you this, one

thing analysts say he has to stablize this immediately. they're in the middle of a transition to boutique stores that johnson set up. they have to assess that. they have assets to sell. their department stores exceed the debt. they can sell off assets if they need to stablize the financial situation. most important he has to send a message to the markets and calm down the people lending them mon in going forward because he will to restock the stores. tracy: talk about, shareholders that won't go away, the stock is at the lowest it's been since 2009. why would anybody hold onto the stock? do you actually think this thing can turn that around? >> i won't answer that personally. pershing square, the largest shareholder, they haven't liquidated yet. they have still 39 million shares outstanding. tracy: hope springs eternal. >> bill ackman has taken a huge hit on this. he watched his holdings go from a billion dollars to 700 billion in the last couple months. tracy: ouch. >> in jcpenney. tracy: ouch.

ashley: thanks very much. stay tuned as thee say. there is more to this story as we follow the travails of jcpenney. adam, thank you very much. more on stocks, the weeks ahead are critical as companies report first quarter results. our first guest says right now the s&p is cheap in comparison to other investments. jack ablin, bmo private bank chief investment officer. jack, thanks so much for joining us. is it the earnings season will be the catalyst to keep this rally going? if that is true what do you expect to see in the earnings and how will markets react? >> just by way of background i think the market is cheap relative to bonds which means that most of the move we're going to continue to see for the now, until the end of the year will likely be fueled by liquidity and momentum. that said, earnings expectations, ate least for this quarter have an about pushed down pretty dramatically now so that i think most companies will be

able to beat these beaten down forecasts and that will likely create a little bit of tailwind but slowly, slowly the s&p 500 is going to be pried away from its fundamentals and moved higher on a tidal wave of liquidity coming from the different areas of the market, most noticeably bonds. ashley: yep. in the first quarter, health care, utilities were pretty much leading the s&p but they're not really affected by short-term slowdown in consumer spending. what sectors are you looking toward in the second quarter? which ones do you like? >> sure. so our four favorite sectors at the moment are financials, health care, consumer staples, consumer discretionary. here, ashley, we look at combination of cheap valuation plus momentum. the financials and health care are cheap. they are moving in the right direction. consumer staples, consumer discretionary are relatively

expensive but they still have positive momentum. so we'll continue to ride those. ashley: you mentioned financials. we've got jpmorgan this week. wells fargo reporting friday. particularly with respect to wells fargo they're so heavy into mortgages what are you looking for from their earnings? if it is healthy it speaks to a healthy housing market i would assume? >> yeah, i would think so. i've been pretty impressed with the gains we've made in housing both in prices and in, amount of sales that have been able to carry on. wells fargo, as you mentioned is kind of an anchor player in mortgages and, you know, the more mortgages they do or the more refi's they write, the better it is for their bottom line. i think that wells will likely, if they don't surprise us to the upside, then we've got to rethink the housing recovery. ashley: business confidence, of course a critical ingredient to getting this economy rolling. spending and hiring so important. but the latest small

business survey shows confidence is dropping. is that going to be a significant headwind do you think in the second quarter? >> well, you know, ashley it has been a headwind for a while. it is remarkable to me, here, most of the main ba rommers that we track -- barometers that we track, pretty much closed up the from 2007. if you look at economy, stock market, other things. business confidence is barely a quarter way off the bottom. this is not just small business but ceo sentiment of large companies too. the business leaders that i talk to just don't have the confidence that the way this economy is being put together right now with unprecedented monetary stimulus and massive fiscal deficits, you know, it seems rather than a foundation of this economy it seems like we're putting together with puty and glue. that is weighing on their confidence. ashley: of course it is. that's why we can't get this economy rolling.

jack ablin, bmo private bank. jack, as as you, thank you so much. >> thank you. ashley: put together with honey and glue. tracy: how it feels. ashley: yeah. tracy: we so much more ahead. american small businesses are losing confidence in the economy. nfib chief economist bill dunkelberg is breaking down why the economy is moving in the way wrong direction. ashley: hardee's parent of cke what he wants to see in president obama's budget that would help his business grow. that would be good. but at this time let's look how oil is trading. we'll talk about oil up today, almost a buck, at $94.22 a barrel. we'll be right back. at a dry cleaner, we replaced people with a machine. what? customers didn't like it.

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tracy: time to make some money with chars payne. this hour he is following up on a previous recommendation. those led lighting products

things, cree, what is up with that? >> you're not a fan, right, leds, light-emitting diodes? tracy: i'm liking old thomas edison diode. >> i got to tell you we ordered a lot of them. at some point we'll be using new ones. we know it. might as well try to profit from it. i've been playing this stock for a long time. it is finally coming into its own. some people may be rubbed the wrong way. coming into its own the government didn't hurt it with a lot of regulations and things like that. ashley: right. >> nevertheless if you try to make money, this is my forth follow-up on this since we did the segment. may i did it. november i mentioned it. and january i mentioned it. during that time it was downgraded by deutsche bank, can a cord, oppenheimer. you know what i love? all four firms will put a buy. tracy: they're 57% late. up 57% since january. >> guess what? i think it does.

i think we're going to reach 55. hit a double top. may waiver a little bit. after that i think it goes straight to 65. earnings estimates, consensus edging up almost every two or three weeks. street is looking for $1.78. three. months ago it was $1.66. when the street charts to chase earnings consensus. they're almost always wrong or always too short. ashley: it is a pretty competitive field. >> it is a pretty competitive field but i think they probably have a pretty dominant position. for years i thought they would be acquired by phillips. that was always the scuttlebutt. i haven't heard it in a while. but i would not be surprised because they proven themselves and phillips comes and takes them out. tracy: marsha blackburn that is what she is all about. >> i'm in first solar. sent a alert to take profit as an half. i've been afraid to tell people i like it because people get upset when you are doing anything like this. but i try to separate making

money from my political convictions. tracy: that's right. ashley: that is smart i think. >> a lot of people should do that many people watching the show missed this rally in part because of political convictions which aren't long -- wrong but make money, bottom line. >> wait for e-mails. tracy: god we love you. you're honest. ashley: send them to charles, not us. time to check the markets. nicole petallides on the floor of nyse. guess how often we go there in every 15 minutes, nicole. >> one to take a look at is first solar. shares are jumping 40%. you can see it is up over 32%. it has hit volatility pauses throughout the day here as they have given guidance going forward, better than expected. better than expected full-year revenue and also earnings that we're seeing that would be better than expected. so with that, one of the things we should note with the big jump we're seeing that there's big short squeeze. on dow jones they talked

about, called this the mother of all short squeezes. 60 million float. 18 million is actually short. what is happening a lot of people who did not think first solar would give guidance that was good news are running to quickly cover. first solar benefited from stronger than expected demand over the projects unexpectedly. over the last year we're up over 30% on the stock. back to you. ashley: very interesting. thank you very much, nicole. we'll be back with you of course in about 15 minutes. tracy: many could up, more than three quarters of business owners say business conditions will not be any better three months from now. nfib economist bill dunkelberg will tell us were owners why owners are losing confidence. ashley: three government agencies oversee catfish. thought it would only take two. i would say you will not believe it but you probably do. we'll have details.

a look how the good ol' u.s. dollar is doing that. it's weak. we've seen oil going up on that. euro climbing close to 1.31. the pound also up to 1.53. all of these currencies moving against the dollar in an upward direction. we'll be right back. [ male announcer ] you are a business pro.

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>> at 20 minutes past the hour i'm lauren green with your fox news minute. the navy is canceling the blue angels season for the rest of the year. they say budget cuts are to blame. they performed at air shows more than 60ers i don't. the six fighter pilots are often graduates of the navy's top gun air tactics school. in philadelphia a federal court hearing on the national football league and concussion litigation has ended. more than 4200 former players are suing the nfl for concealing allegedly known risks to the brain from head injuries. the nfl denies any negligence. the judge did not give a date or ruling when the case will go to trial. north korea warning foreigners in south korea to evacuate. a top u.s. military commander in the pacific, admiral samuel locklear, says north korea's pursuit of nuclear weapons

represents a clear and present, direct threat to the u.s. and nuclear security. those are the headlines. i'm lauren green. back to tracy. tracy: lauren green, thank you very much. >> you're welcome. >> american small business confidence fell in march after rising for three months. this is according to a new survey by the national federation of independent business. what caused the drop? we have to ask chief economist for the nfib, bill dunkelberg. i'm glad you're back again. this is a really change trend, right? smack in the middle after three months in, all going gangbusters and then bam, something is annoying us. >> tracy, actually it is not unusual. that seems to be the plan we've been following now for the past couple years. we do really well in the first you few months and we stumble and fall and we don't end up going anywhere. that seems to have happened this time. we're not exactly sure what trigger ad decline in optimism and why firms decided not to hire anymore and not spend more money on expansion and new equipment

but they did. tracy: did the holiday euphoria wear off? you're right. we've seen this the last two years. >> yeah. tracy: second quarter goes to hell in a handbag. yet we're seeing positive job creation, right? >> we did. the question we asked over the last three months did you increase or decrease the total number of working for you and if so by how many. that is how we calculate, we added 0.19 workers per firm, considering most of the firms don't change employment. that is the best number we've seen since march of last year, same time period. and of course we had a three-month run of increases better and better. so we were hopeful we would really get a much better number. instead it was very disappointing. tracy: yet the number that bothered me a lot, there were all the job openings and they couldn't fill them because they couldn't find skilled workers to do that. is it because they're low paying jobs and people didn't want to take them? are these brand new skills people need to be trained for? >> well, some of all of

that. obviously one of the places where you're finding shortages of labor is in the energy strip from texas on up to the canadian border. they can't find enough people to do the kind of work they want to get done there. so that takes some time. we also find that the young people's participation rate is going down. if we, we asked our owners what were the problems? of course sometimes it is you didn't have the right skill or right background. but for a huge numbers, like 20% of the owners, it was an appearance, attitude. you didn't know how to dress. too many rings in your nose, all those kinds of things, that, you know, worker is going to meet your customers or has to work in a team, those are very important things. so, and those are things that these people can change without going back to school and getting an education. just clean up, look sharp, and learn how to talk and they get a job. tracy: leave the nose rings at home. that is simple thing to do.

that is really sad state of society that our kids have no worth ethic. this is not getting better. we heard time and time again small business owners rather hire retirees than young kids with multiple nose rings? >> now they have got competition from retirees. in olden days retirees died off or were unhealthy. now retirees are very healthy. looking for things to do. sometimes they need to supplement the income. so they're becoming available. so the participation rate for that group is pretty good. tracy: right. >> and the young people are, somebody must be taking care of them. i don't know who it is but they're not working and getting a job quite as hard. tracy: there is another number bothered me too. only 4% said it was a good time to expand. that basically means we're at a standstill until what? the regulation goes away? taxes go away? what will make these people want to expand their businesses? >> well the expectation of having more customers would make them want to expand.

you're right, 4% is about as low a number as we've seen in our 40 years of surveying nfib 350,000 members. normally that number runs 18%, 17 to 18%. you see how far off the mark we are. that is spending we need. ordering new equipment and inventory and it's not happening and those are gdp numbers. tracy: that is exactly why the confidence number is down. bill dunkelberg from nfib we'll see you next month. hopefully we'll have better stuff to talk about. >> i am going to work hard at it. tracy: thank you. ashley: he is cheerful as he delivers not so great news. tracy: tells you exactly what is going on. ashley: nose rings. tracy: i beat my kids up if they go on job interviews with extraneous jewelry. ashley: they have been warned. the government accountability office says duplicate programs are leading to wasteful

government spending. senior correspondent peter barnes has details from capitol hill. peter? >> that's right, ashley. a hearing is just getting underway at the house government reform committee. the gao identifying 162 areas of duplication in federal programs by the government, starting with the one we've all been talking about today, three programs that inspect catfish. one at the department of agriculture that costs 14 million bucks a year. the food and drug administration, national marine fishery service. the gao also goes after the pentagon for wasting money on producing uniforms for the military, for soldiers and storing them. $82 million a year could be saved with changes there. on renewable energy, there are 80 different wind programs run by 35 offices at eight agencies costing $5 billion according to the gao. well the chairman of the government reform committee says, acknowledges all these kinds of programs have been approved by democrats and

republicans in washington over the years. so it is not a traditionally partisan problem. take a listen. >> it's partisan only in the sense it is the bureaucracy against the american people. it is fiefdoms within government against any kind of real reform. remember, for each of these grants there's a recipient. for each of these programs, there's a bureaucracy and a paid executive making over $100,000. >> gao has been doing this a couple years looking back to 2011 and 2012 problem areas. it says 16 were addressed. so there is help, right? 87 have been partially addressed. 27 not addressed. and i want you to know a white house official when the president announces his budget tomorrow he will include more than 200 program cuts, changes, savings for the fourth fourth budget amounting to $25 billion. ashley and tracy. ashley: let's hope catfish is in there as well.

peter barnes on capitol hill. >> i will be looking for that in the fine print. it sound fishy. ashley: something doesn't smell right. thank you, peter. tracy: honestly, enough with the pet projects. ashley: yeah, no kidding. >> oil prices jumping for a second day of a a three-day slide. we have oil expert kent morris. he will weigh in on oil's next move. why he says all the talk about u.s. crude exports could become reality. ashley: first take a look at some of today's winners and losers. the dow up nearly 90 points. the s&p is also up. are some winners on the s&p. we'll be right back.

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dow near back session highs, up 92 points now. the dow 30, microsoft high, intel, caterpillar. american express and mcdonalds lag behind in the positive market. nicole in the new york stock exchange has the latest. >> that's right, ashley webster. a record day on wall street. dow jones industrials, again, new all-time intra-day high as high as 1470 # 6 #, closer and close to 15,000. all right. take a look at a name under pressure and has been for some time, and that's jcpenney down nearly 12% at the moment. it looks it could close at the lowest level in 12 years. ron johnson was ousted. the stock out nearly 60% over the last year. came in, tried to say we'll have great value all the time, didn't test the strategy with customers. they wanted the coupons,

promotions, brought in the old ceo back to save the day, and shareholders and investors are up in arms. back to you. ashley: thank you very much. back with you in 15 minutes. tracy: oil prices driving after a three-datumble. sandra smith in the pits of the cme with the trade. >> good timing oncoming to us here. looking at crude in the after hours, 94.22, up be -- up a buck on the session. rallied back as well as crude oil, a bounceback from the selloff of 92 seen in oil. i want to bring in trey, a move for oil, just when everybody was so bearish, looks like the shorts are having to cover. >> why would you want to short crude? why be bearish? if you're bearish and short, pick very, very carefully. i think the world is counting on the idea that the market will react against $100 a barrel.

next time it's there, i bet it doesn't fail and market goes to $115 there. >> that's a big statement. i'll go for a quick comment, but $115 on the wti? >> every central bank is printing out of their mind. own stuff, don't short crude. >> going to possibly $115 a barrel. one other thing, guys, that the bears cling on to is that fact that inventories are sitting near 23-year highs. that's the slow economy, guys. we're not using this stuff, but as you just heard from trey, the bulls are out there. technically speaking, by the way, we saw a nice bounce off the support level, a hundred-day moving average. that's working in favor of the bulls now as well. back to you guys. tracy: sure is, sandra smith. thank you very much. ashley: the upcoming elections and other geopolitical risks fuel volatility in oil markets.

joining us now, energy expert and due cane university, kent moore. thank you for joining us. don't short crude is what we heard from a trader at the cme. why is oil moving high or at least appears wanting to be moving higher when we have a surplus now? >> well, it's an apples and oranges situation, but, essentially, a geographic one. we're beginning to see constrictions with spare capacity concerns in various parts of the world, and that tends to be overshadowed looking simply at western europe or north america, and we look at our supply surpluses thinking that, well, because there's surpluses here, the prices shouldn't be that high. in point of fact, however, this international market for some time has been driven by demand and supply considerations in parts of the world other than the developedded countries, and that's beginning to show itself more apparently over the next

couple days. ashley: interesting, isn't it? there's a weaker dollar, inflation in china is not as bad meaning the central bankers in china can continue to flood market with money and hopefully good for global demand. where do you see oil going? a trader said, look, push towards a hundred again. if we get through the hundred mark, we're up to 115. >> well, my predictions have been for some time now that by the end of this quarter, actually, by the end of april now, we might be looking at 127 a barrel for brent and $105 for wti. mine's lower than the trader you talked to, but there's dynamics taking place that will be more difficult to reversement one is that when you factor in the overall demand estimations that this market ought to be hitting, then that demand is actually going to be triggering a higher price point for the simple

reason that that spare capacity i talk about just awhile ago, that spare capacity is beginning to ware thin in certain parts of the world. we have about three million barrels of daily excess capacity left to cover current demand levels, and this is caused by the international agency and opec to increase both their demand and price forecasts for the rest of the year. ashley: quickly, running out of the time, so should we be in the export business shipping out crude elsewhere? >> i think this is a geographic balance, global balance consideration. the answer is, yes, and it's coming, and we have the director of the iea fly a test balloon last week suggesting it's not a bad idea. here's the first stage of this. we're going to be taking heavy, lower volume crude. it's going to be exported; then exported to be refined abroad, and we'll import cheaper,

refined products as a result, and that cycle will end up actually positively impacting upon the economic recovery in the u.s.. ashley: all right. the coal for that is growing, no doubt about it. kent moors, thank you so much. >> thank you. tracy: coming up, waiting on the president's budget. party's parent ceo will tell us what he says the president can do to actually help american businesses. ashley: plus, stocks building gains approaching close. live trader reaction from the new york stock exchange next. first, time to check the ten and 30-year treasuries. we'll be right back. ♪ step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

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tracy: a tiny tv service, making everything making big waves, so big that one broadcast giant issued a bold threat yesterday. dennis, you announce that here on air yesterday, did you not? >> i did. i have more. would fox broadcasting company really abandon broadcast to turn itself into a cable channel? that's the threat made yesterday by chase carrey, president of our parent company, news corp., seconded by univision which may do the same. the object of the hire is aerio,

likened to a bunch of pirates using free signals from fox,abc, and nbc and resells that to subscribers in new york without paying the networks a cut. cable systems pay millions to fox stations to carry the same content. aerio, oddly, backed by aic. diller put $20 million into the venture, and it was barry diller himself who started the fox broadcast network himself in 1986. a federal appeals court refused the request to block aerio pending a trial in the infringement lawsuit against that, and now news corp. says if the courts don't protect fox's property rights, they could switch to cable channel toppling the decades-long relationship between fox and its 205 affiliates. they pay fox a fee to get fox shows, and cable systems pay local systems a fee to carry content on cable.

fox owns 29 stations, but the network is far more money from affiliates than from the fox owned cable systems. a switch to a cable channel is a wind fall of the fox network from cable system fees, but fox assures affiliates they would share any upside. big changes could be coming. tracy: confusing. >> it is. what's going to happen is aerio will lose. you cannot steal -- ashley: which is what they are doing. tracy: like they are grabbing it from the air basically. >> right. they said it's a goldberg-like machine that is trying to step around the loophole, and two of the other courts ruled in favor of the networks and against a service like aerio. networks will not lose. fox broadcast will stay broadcast. ashley: thank you very much, dennis. quarter till. time for stocks, down to the new york stock exchange, ben willis

standing by. ben, is there any ceiling on the market? where else can you be but stocks now? no viable alternatives. the sky's the limit and beyond; right? >> couldn't agree more; however, there's a caveat. i've been wrong on the market. if i look for a pull back, it's not happened. a few 1% pull backs intra-day, spotty, here and there, but the money flows that continue to come into the market, not talking about some great rotation out of bonds, there has been a slow down into bonds in the pickup in equities. you'll notice there's a great draw down in commodity funds so you see that's one side of the equation where you see the ability for stocks to continue to rise k but i still believe that the market is going to go higher. i just am hopeful for the overall health of the market that it will pull back at some point, more than 1%. ashley: exactly. get breathing room. ben will sis, thank you so much.

we appreciate your expertise on the markets, and, you know, where else can you put your money? anything but cash. you know, get some return. next, outspoken obama critics speaking to a restaurant ceo andy puzder talkings about why he thinks the president is taking the wrong approach to the economy. tracy: looking at the winners and losers on the nasdaq. stuart varney must be happy with microsoft up. the dow is up 97 points. we'll be right back. ♪ e seen me today. tdd# 1-800-345-2550 when the spx crossed above its 50-day moving average, tdd# 1-800-345-2550 i saw the trend. tdd# 1-800-345-2550 it looked really strong. tdd# 1-800-345-2550 and i jumped right on it. tdd# 1-800-345-2550 tdd# 1-800-345-2550 since i've switched to charles schwab...

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tracy: president obama releases the 2013 budget proposal tomorrow. now, he's expected to lay out a map to create jobs and grow the economy. we heard this before. ceo of cke, parent of hardee and carl's jr. says we have to grow from the private sector, not the government. andy puzder, a long time critic of the president, joining us now. we talked about how your employees are hit by the obama p -- obamacare thing because they are going part time. for a student who took on a job to pay his way through school, he can't make rent. >> about 40% of the employees are part-time now, and every business, i think, in america, if you have full-time employees, you're not going to fire them and create part-time jobs. as people retire or people move to other jobs, most industries, most retailers hire part-time employees because you don't have to pay for obamacare, which, quite honestly, changes the

metric. the history is that you're full-time employees are the most valuable, the loyal, they know you at the drive-thru window, what you want in the restaurant, you president affordable care act's extra costs, you changed the met tricks so part-time employees are more valuable, and, also mechanizations like ordering at kiosks in the restaurants opposed to cashiers. there's a lot of changes caused by the affordable care agent that people didn't contemplate would be coming. tracy: you see direct effects of this. i know one of the things complained about is over taxes and overregulating. >> yes. tracy: how's that affected business of you? >> i'm not a critic of president obama, but his economic policy. i don't know him. tracy: that's right. we do the same. >> the view on the economy, be a supply side person or demand side personment on the supply side, we raised taxes on businesses, the highest corporate tax rate in the

country, bringing in various expenses, medical care with the affordable care act, a war on carbon fuels, driving up the cost of oil, trying to unionize employees or raising minimum raise, all attack on the supply side, increasing expenses, and when you increase expenses, business plans don't work, and people done i want vest. the other side is to incentivize the demand side, get money in people's pocket and spend. they believe it works, i'm not sure. say for a minute it worked. you don't want to raise taxes on people, which we did on high income earners, but raised payroll taxes on people that make under $113,000 get a 2% hit to the income all yearlong, and we're raising energy prices, again, taking money out of people's pockets. if you're attacking the supply side and demand side simultaneously, where's the growth supposed to come from. tracy: that directly affects your business. you cut into my paycheck, i can't take the kids out for

food. i'm worried about gas prices. i'll cook at home. this is all directly affecting your bottom line, suspect it? >> it does. affects food probably less than other segments of the retail industry because, obviously, you won't get a new shirt if you need one, might wait a month, and wait on the new car, but you won't skip a meal. people have less money and spend less money. everybody agrees with that. if you're attacking the supply side and the demand side, where is the growth coming from? i mean it can't come from government. government doesn't create growth. they live on the taxes that are generated by businesses and by individuals and by growth. you got to come up with growth from someplace. i'm very anxious for the budget. tracy: what would you love to see tomorrow in the budget? >> i'd love to see the -- i'm not going to see it, but i'd love the president to say i'm going to back off. we have over regulated, taxed too much, we need to let businesses grow. i want to see the president and

still a sense of confidence in american entrepreneurs to say, you know, well, we can grow. shouldn't be freeway to grow. the business plans may work, and when they work, we can invest. when we investings we grow, and we create jobs. i'd like to sew -- see him relieve pressure and let the american entrepreneurs do what they do best which is create jobs, growth, and prosperity. tracy: yet, you're in town, and we have to run, but you're in town to put up new places, new locations, aren't you? >> yes. the question is can we find the place where it works? this is what every businessman looks at and every businesswoman every time they invest. we look at rent, labor, food costs, and if you increase those costs, less of a chance people investment we want to invest. we want to grow. we're dying to do so. give us a break. we will. tracy: cost-benefit analysis i suppose. >> that's right. tracy: glad you're in studio and got a nice day. >> beautiful, like santa barbara. tracy: lucky.

ashley: over taxed and over regulated, something you never hear from washington. nice thought, andy. there's a coverup happening, a good thing. a detroit hospital is trying out a new hospital gown that closing that infamous gaping hole in the back of the gown that plagued partes for decades. you, you can picture it. instead of the ole-fashioned ties, the new gown has snaps in the front and back to close. why didn't we think of this decades ago? the new gown was designed by the henry ford innovation institute, and here's hoping it will be a big hit. if it was not bad enough you wear the damn thing -- tracy: did we neat the foundation involved in this? come on. you can find four italians from my hometown to sew them for you. limited brands weighs in on what jcpenney should do next. liz claman has the last hour of trading with "countdown to the closing bell," next.

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