the president's health care law. connell: your mortgage reduction under attack. dagen: there is now support from both sides of the aisle. to yank the faa for loads that has any travelers steaming mad waiting on the tarmac. connell: lots of stories straightahead on markets now. ♪ connell: it is a good day for the market so far. dagen: cheech and chong. connell: thank you very much for that. doing something a little different. dagen: we will have that shot coming up quickly from president bush 43 library opening.

top of the hour right now. stocks every 15 minutes. nicole petallides out the new york stock exchange with a rally, hopefully. nicole: you are exactly right. the vix, the fear index, at the moment, to the downside. the dow jones industrials with a gain of about .5%. the s&p 500 sitting at 1589 and a gain of three quarters of 1%. yesterday, the dow sold off. today back in action with the arrows. the best two performers are verizon and microsoft. microsoft will be unveiling the new xbox on may 21. dagen: lawmakers from both parties are looking for ways to exempt themselves from president obama's health care overhaul.

how is it any different than small business employees who have to pay the same thing? connell: let's talk to dan henninger about it. >> people are enraged. it was supposed to be the most wonderful piece of social legislation and 50 years. this is the health care law, the affordable health care act. the whole thing is expected to be terrific. now, people are enraged that congress will exempt itself from what is turning out to be a rolling nightmare. connell: that really is what we are talking about. no, they are not really doing this. do your best understanding, they

are? >> it looks like they are discussing to try to get out of it. the truth is, the exchanges do not exist. congress will have to run away from something. just last week, senator from montana hss secretary that this is turning into a huge train wreck. this is one of the guys that wrote the law. dagen: how big of a train wreck will it be? you always say this with government. they raise taxes and then worry about the spending down the road. we already have been hit with a whole load of different taxes. the surtax on investment income, for wealthier americans, do we have any sense of how big of a disaster this healthcare law will be bushwhacked even four

years from now? >> if it it -- if it exists for years from now. corporations are trying to understand whether or not to hold onto their employees or dump them into these exchanges. i think there is a whole series of time bombs out here. this is turning into a potential disaster for president obama. the support for this flaw keeps falling all the time. i think republicans will go into this and think the healthcare laws are exploding. we will not talk to and must we put entitlement reform on the table. he just lost this gun-control vote in the senate this past

week. there was an article about democrats getting nervous about the president's power of persuasion. they are afraid that the immigration bill may fail now. now one year in, i think president obama is already facing a huge loss of credibility that will be a big problem. connell: real quick on something else, they are really having these discussions. they are worried about a brain drain on capitol hill. >> yes. connell: and all seriousness, will that be a problem for american companies as well? >> i think so. such a nightmare for individuals to be caught in the center of all this. if you say you are going to leave the company, where are you going to go?

people do not leave companies because they do not want to lose their healthcare coverage. i think that this is right. dagen: public information about it. the scary thing is, the leaders do not know either. >> there are no real answers on this. that is why it is becoming more and more of a nightmare. connell: thank you, as always. the mortgage deductions seem to be a thing of the past. dagen: peter barnes knows. he has the details inside the beltway. peter: it is back in the crosshairs today on capitol hill. they are holding a hearing right now on whether and how to cut it back.

a tax break worth about $70 billion. it would reduce the mortgage interest reduction by capping many itemized reduction, particularly for wealthier families. right now you can bid out the interest on mortgages for up to $1 million. some proposals would cut that to $500,000. others want to eliminate the deduction for mortgages on second homes. all of this has triggered a major battle. any reduction in the mortgage interest tax rate could hurt housing prices and the fragile housing market recovery. one critic says reducing it really would not hurt that much. >> i as a homeowner, if the choice given to me would be what i like to pay a little bit less or have a mortgage reduction, i

rather pay less for the house, quite frankly. peter: even some republicans have proposed limiting tax deductions in some way for those higher income taxpayers. this issue is definitely in play here in washington. we will be watching it. dagen: thank you very much, peter. peter barnes in washington. let's take a live look at the dedication of president pushes library down in texas. they are in the middle of prayer at this moment. what you will see is five living presidents all standing together. you see a shot of president obama, president bush and his son. they are in the middle of prayer. a historic day. president clinton and carter are there as well. let's move on to your markets.

major companies are boosting the markets with better than expected first-quarter earnings. also setting the bar high for the upcoming quarter. we have a chief economist from ihf. he joins us right now from lexington, massachusetts. what is to make of this? >> the underlying growth in the economy is reasonably strong. it is not great. it is not as strong as we would like it. companies are managing their costs very aggressively. the earnings numbers are looking pretty good. a lot of people manage down the expectations, but then beat those expectations. the reality is, these earnings numbers are quite good in the whole set of global environment.

i think it is a combination of a number of industries in the u.s. doing pretty well, even in this environment and a lot of companies being very careful with costs. can they keep it up? i think they can. there will be a bit of hiatus. first-quarter is strong. second quarter week. mostly because of the sequester and the impacts. energy, healthcare and so on, they will not really be affected by the sequester. we will start to see a bit of a mixed bag. second and third quarters, in terms of some industries showing good earnings. others getting her because of the sequester. dagen: you do see new time highs getting hit every day.

some financial service companies -- year-to-date performance, your defensive sectors. utilities are among your best performing. the underperforming s&p 500 with the technology, energy. are those the ones that you maybe want to be looking for a little better value? >> i would think so. certainly, energy is one area where we have had a build in the energy sector. i would expect fairly soon the earnings numbers for a number of those companies. they will start to look better. electronics, it is a little hard to tell. there is a little bit of a shake out there. it is a little hard to sort that

out from the underlying dynamics. anything related to those industries should do fairly well. thank you so much. it was good to see you. be well. >> thank you, to. connell: southern methodist university today. the library of george w bush is being dedicated. we have all of the living presidents, past and present, on one stage together as they the library to president bush. you can see the current president, president obama along with his wife michelle. there is barbara bush and president hw bush. the other presidents are there as well in addition to, of course, president bush 43.

you also have the other side of the stage, clinton and carter on hand. you have all five of the president in one place at one time. more coming up on those growing delays at airports across the country. more lawmakers are saying they want the furloughs to be lifted. dagen: if they do not want flyers that at them. $11 billion. the internal revenue service issued more than 11 billion smackers in refunds last year. take a look at the oil market. oil is taking back up to near $92 a barrel. ♪ friday night, buddy.

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connell: charles payne is sitting here. we will put him on television after we talked to nicole petallides. nicole: let's talk about what we are seeing here. we are looking at some coughing names. the thing that helped them along was the same store sales. you think of dunkin donuts, you think of baskin-robbins. they are having a good day here on wall street. we are watching starbucks closely. it is up three quarters of 1%. we will hear what starbucks has to say. singleserve coffee's have done well. we will continue to watch that as well. starbucks is up 12% year to date. dagen: it is time to make money with charles payne.

he is looking at slowing profits. charles: franklin electronic. it really is a boring company, to be honest with you. 2012 was a huge year for them. it has started in 1944. it is a complete global powerhouse. record numbers all over the world. strong numbers last time. south africa, sells up in europe last year. how many people can say that? i think they will continue to keep this thing going. longer term, i think it is about a $40 stock. it is boring, but it is one of

these names that is incident. connell: you never know where she is going. all right. dagen: i am just stifling. travelers waiting for washington to move on these delays that are plaguing flights across the country. connell: the explosion in high-speed offerings. times warner joining the battle in texas. first, a look at the world's currencies today and how everyone is faring against the dollar. we will be right back. ♪ how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one.

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♪ >> 23 minutes past the hour. i am jamie colby. this is your fox news minute. firefighters extinguishing a barge fire in mobile, alabama. the two barges were empty last night, but it carried natural gas. they believe the fire was

accidental. the bird flu crossing from china to taiwan. a man has been diagnosed with the first case outside of mainland china. china has confirmed 108 cases. twenty-two deaths from that virus. in dallas, all five living presidents attending the george w bush presidential center. also attending will be several former head of states. we wish we were there. those are your headlines. i am jamie colby. back to dagen and connell. dagen: thank you. connell: trying to prevent a way of more furloughs. dagen: rich edson is still at reagan national airport.

at least they let him in the terminal now. rich: after three or four days at reagan national airport, you are seeing delays around the country. there is movement around on capitol hill that could solve these. these are faa statistics. on sunday, the furloughs were to blame for about 400 different flight delays. on monday, more than 1200. tuesday, more than 1000. there are a few different proposals that have been put out by members of the senate. to basically ensure that the traffic control towers are not furloughed. the white house says they are open to talk about it.

>> lawmakers suggest they are available. congress has to act. we would be open to looking at these issues. it would be a band-aid measure. one proposal quoted by the senate majority leader harry reid would use unspent money from the wars in iraq and afghanistan. that is something that mitch mcconnell has recently called a budget gimmick. they may attach to a bill, a proposal that gives the department of transportation some more spending flexibility. that would be attached, in theory, what they are talking about in the senate right now to

an online sales tax. that effort is not concrete yet. it is something that would have to be done fairly soon, though. after this week, congress is out for next week. back to you. connell: thank you. rich: it is fantastic. dagen: is that music really in the terminal? rich: yes. all the time. it is terrible. connell: .in a $20 bill from dagen and let them know we enjoyed it. furloughs will damage this economy.

connell: i do have a daughter named caroline. not that that matters. the latest coming up on some of the big stories of the day. we will take a look at the timing of that guy. we used to call him suspect number two. dagen: a big hoops for the irs. refunds that should not have gone out last year. somebody has too much money. here are some winners today on the stock market. ♪

dagen: catherine herridge standing by to bring us the very latest in the boston bombing investigation. the irs handing out refunds that should not have been. connell: let's get back to nicole petallides. what you have for this time around? nicole: we always have a lot of stocks to take a look at. angie's list is moving to a new all-time high. it is up about 28%. they cut the losses. also, the amount in memberships.

safeway down almost 17%. what a big move there. first-quarter sales that were below the analysts forecast. they obviously compete against supervalu and walmart and kroger. the stock is really showing that. connell: thank you. dagen: dzhokhar tsarnaev has gone silent after being read his miranda rights. connell: catherine herridge joins us now. >> good morning. during law enforcement briefings on capitol hill, lawmakers were told the suspect's mother possibly due in 2011, the same year the russians warned that

tamerlan was dangerous. unnamed officials also tell fox news that a premature termination of the interrogation of the younger surviving son made national security implications. agents were only 16 hours into their questioning and were stunned to see the judge and attorney show up. >> that is a real issue. the fbi did not advise the registry. >> valuable intelligence may have been sacrificed as a result of that premature ending of that investigation. the suspect can't be questioned for up to 48 hours before the

miranda warning is given. in this case, it looks like it only lasted for 16 hours. late last night, a u.s. intelligence official confirmed to fox news that the cia was contacted by russian counterparts in 2011 and presented with the same information the fbi was given six months earlier. lawmakers briefed on the incident are not faulting either the cia nor the fbi. >> when the russians first sent the initial inquiry to look at this individual, we contacted the russians on three different occasions to ask for more information and nothing was

forthcoming. >> the bombs mostly relied on remote control for cars. >> a situation where we are now facing more of what europe has faced with alienation of part of the immigration population, self radicalization, it is a different challenge than those that are trained overseas. i think that will cause us to do some things differently. >> on the handling of tamerlan tsarnaev, we were told that the fbi requested that the name given to the cia by the russians be put on the tide database.

it is basically the big shopping place for all of the names that go on the no-fly list or the terrorist watch list. it is big. it is about a half a billion people. connell: thank you. let's go back to the economy here for a moment. it does not look so bad when you look elsewhere. how about spain? hitting a record high. its unemployment rate 27.2% in the first quarter. the unemployment rate was 7.9%. european markets closing up shop for the day. a mixed picture with tears in the middle of the screen a little bit lower. dagen: maybe the jobs picture is

getting better here. it is up from 46% back in 2010. the survey found that people's confidence about the economy buried upon their education. just 6% of americans with a college degree. they would lose their job last year. connell: we have seen that the lie for a while. the irs is doing its part to keep the national debt high. the agency issued over $11 billion in faulty refund last year. the second year in a row. nearly 21% of all income tax credit payments last year were believed to have been faulty.

connell: not surprising, unfortunately. google and att offering a high-speed service. connell: putting pressure on poor prices and other commodities. we will also have a report on that. ♪ [ male announcer ] you are a business pro. governor of getting it done. you know how to dance... with a deadline. and you...rent from national.

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caterpillar is announcing its buyback program. caterpillar expects to complete the program in june. the faa is publishing a new rule governing the lithium ion battery. the estimated cost of battery repairs for six united airplanes, $2.8 million. you may want to rethink changing your ticket when applying u.s. airways or united airlines. they quietly boosted the feet to $200. yesterday, u.s. airways did the same thing. that is the latest on the fox business network. giving you the power to prosper. ♪ everybody has different investment objectives,

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connell: joining kansas city and austin, texas to approve google fiber. rob is joining us now. this is interesting to watch from google's point of view. we will see where it goes. why don't you take the opening shot at it. >> google is trying to drive everybody too much lower cost, higher speed networks. they are using the power of this dark fiber across the nation. they are trying to drive in low-cost services in the belief that the cable companies in order to defend their turf will move and we will all get faster networks much more quickly than we otherwise would get.

connell: 100 times faster than "normal broadband" would be. it is great for someone in kansas city that passes. is it just simply better than anything else out there, from a consumer point of view? >> you get something quite a bit faster and quite a bit cheaper. they will build out their infrastructure much more quickly, also providing that bandwidth. the only real concern is what will be comparable. google has had the best reputation regarding privacy. there is a concern that these pipes get bigger. much more of your privacy will then be going through them. connell: keep these plans up. it is interesting. at the bottom of the screen, you

see if you pay $300 to google, you can get free internet forever. you do not get any television service from that. that does bring up the future in tv type discussion. people will not need at some point cable tv. they will all do streaming. >> right on the front end of what is likely to be fox wars. we have amazon, intel, apple and all moving towards this opportunity. no more tuners. connell: bottom line, bad news

for the cable companies, people in the cable business or you would not go that far? >> it will force them to make huge capital investments before they were ready to do it. cable companies will take a lot more to keep up with us. connell: always great to talk to you. thank you for coming on. >> pleasure. >> so much concern about furloughs and what it will do to air traffic around this country. i am looking at southwest. new 52 week high today. people are not worried about airline traffic at all. >> what you have been seeing is a reflection of how the airlines have right size their businesses. they have gotten their models in safe. crude oil prices have been

fairly stable for the last year. the real question you are asking is what will sequestration due to the potential problems just as they get into the higher earning season of the spring and summer. they do not mind enacting as much pain as possible. dagen: what about oil prices also going back up? does that concern you? >> you always have to keep in mind jet fuel is the largest component of the expense side of a ledger for an airline. you always have to watch it.

most of the oil prices driven by what opec does. they are happy to strike that equilibrium. as long as oil stays right here, the airlines will be able to figure it out and keep moving forward. dagen: thank you so much, keith. maybe that is the tipping point. you make me wait on a packed plane an extra hour or two, i will just sit at home. you have not been flying that much. >> not that much lately. you are right. i would like to just stay here. dagen: i was grounded in dallas. connell: they beat you could tell us about this when, oh, i don't know, the show is not on the air.

specific numbers. they are talking about a $100 billion deal, possibly. dagen: elizabeth mcdonald is here with her bottom line. the ceos have been more openly talking about this in recent months. let's look at what verizon ceo said just recently. we have always said we would love to own all of that asset. they have an open mind on everything. here is the timeline. the board is set to discuss the bid for the stake in verizon wireless, head of the investor meeting next week. whether this goes through remains to be seen. this is the most discussed

non-bid that the markets have been hearing about a new year's. how will they get their capital gains bill covered? that is why you are seeing that figure. if it goes through, what happens? will at&t moved the bed and try to take on? it could put themselves into a takeover target in the crosshairs. back to you. dagen: thank you so much. elizabeth macdonald in the newsroom. connell: the latest weather patterns are turning the economy around. dagen: some of today's winners on the nasdaq. ♪

♪ dagen: breaking news right now from sandra smith at the cme. sandra: right now we are hearing about a system failure across from the cme group where options have been halted. they are trying to get things back up and running. this is affecting one of the biggest trading volumes over there. customers are having problems downloading information. this started happening earlier this morning. word came back that things came back online, but now we are hearing that they are suffering outages again. at least one exchange stopped sending business during this outage. they plan to reopen at

10:15 a.m. eastern time. that did not occur. things are still halted, delayed over there. we are working our phones right now to find out what caused this failure. we will continue to bring you the breaking news. back to you. connell: thank you for that, sandra. sandra smith in chicago. democratic lawmakers are trying to find a way to and these faa furloughs. dagen: coming up, southwest airline ceo. worried it will damage the airline business and even this

countries economy. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

dennis: i am dennis kneale. cheryl: i am cheryl casone it may be the faa furloughs aren't a good idea after all. now they're rethinking the furloughs. we are live at the airport with the latest. dennis: and you will go one-on-one. cheryl: i will go one-on-one with southwest ceo gary kelly. and he will be talking about the companies outlook for the month of april. dennis: congress wants to exempt itself from obama to regulations and that outrage ahead. cheryl: mortgage deductions in the crosshairs. we will be live in washington were some want to cap it or do

away with it all. dennis: top of the hour, stocks every 15 minutes, nicole petallides. we are up. nicole: we're up for now. they're all posting up arrows. up about a half of 1% and regain that momentum. back with the up arrows once again, the major averages, the s&p 500 a gain of more than half a percent, the tech heavy nasdaq the best of three quarters of 1%. as far as what we're seeing in wall street, the thick of earnings season. reporting their quarterly numbers, the market moving events such as 3m. down over 2%. microsoft is another name on the move, that is a winner with the xbox may 21.

also taking a look at exxon. each set of earnings is big news as we continue to watch all of those names very closely. watching names like zynga, safeway, starbucks. just to name a few. cheryl: nicole, such a big day for earnings today, it is amazing. she is going to be busy today. many democratic congressmen think the faa furloughs leading to long delays at airports are a bad idea. rich edson joining us from reagan national airport outside of d.c. with the latest on the involvement of our congressmen and women. rich: nobody likes these furloughs, but how do you pay for it, how do you prevent it and find the $200 million between now and the end of the fiscal year to be sure there are no furloughs of staff. flights are beginning to stack up. take a look at the flights

delays due to these furloughs, 422 on sunday, the first day of the furloughs. more than 1000 on tuesday, yesterday more than 1000 as well accounting for about half of the flights delays we have seen in this country over the past four days, those are faa statistics. a move in the u.s. senate to allow the department of transportation to take money from somewhere else and find the $200 million it will take to prevent these furloughs. >> i find that within sequestration, but you know what, we're just fooling ourselves if we think we're doing the american people any favor by not finding a real solution. rich: a mix of spending cuts and tax increases on the wealthy for

all those that took place a few weeks ago. the problem in the u.s. senate, one below the department of transportation to move away from one place to another to prevent these furloughs, they're looking at attaching it possibly to the internet sales tax proposal expected to pass the u.s. senate today or tomorrow. but it is no surehe u.s. house, major problems with the bill itself, so the senate attaches these would have to pass along this resolve this problem so there's no guarantee this can be solved in the next couple of days. problem is congress is out next week. you can forget about any kind of solution the next week and a half. cheryl: obviously furloughs are affecting airports across the country. faa furloughs are sending the industry, airline industry into a tailspin.

i sat down with gary kelly to talk away situation he says is full of uncertainty. cheryl: it is a cautious outlook because of that uncertainty. i will not speculate on what it might be. the whole situation with uncertainty. we don't know what the faa will do on a daily basis. we don't know what cities will be impacted, so it becomes impossible to predict. if it is as bad as the faa claims they will make it, it will cost each airline hundreds of millions of dollars over an annual basis. i cannot imagine common sense will not prevail here, and we will address this silliness sooner rather than later. cheryl: is it your opinion the dot could find funding and other places and put the air traffic controllers back into towers across this country?

in your opinion, do you think they can do that? >> well, that is the essence of the litigation, but absolutely. to give you a serious opinion. our answer. it is not so much opinion as it is a legal opinion. we have legal support for this lawsuit and we will press it vigorously. it is just not fair to the american people, these are essential personnel to maintain in the national airspace. not only impacting the airline industry, which everybody knows is very fragile, but it will have a direct impact on the economy. it is ludicrous not to address it quickly. cheryl: let's get to the numbers, another strong quarter for southwest beating on the earnings, beating on the revenue. the management obviously is

strong. it had some fare increases year over year. you have done a great job on fuel hedging, but ticket prices may have to go higher this year to account for the tax environment we're in now. >> great questions. we are off to a great solid start for the year despite the softness in march. lower fuel prices have helped, we're pretty much on our plan, but the outlook for second-quarter is even lower cost is noticed in the press release. so that will help. the economy is it? and i think everybody knows we're in an early spring soft patch yet again. whether it materializes as it heads into continuing softness

like we saw in 2010, 11 and 12, i don't really know. so much stimulus out in the world supporting the economy, you have the commodity prices and hopefully the economy is getting adjusted higher taxes and sequestration. at least that is what the broader retail environment seems, housing is strong so you have all those things providing encouragement for a stable outlook for the rest of the year and that is very much what we are seeing right now. cheryl: will be checking back in with you for the next quarter. gary kelly thomas ceo of southwest airlines. thank you. >> thank you, cheryl. it is always great to be with you. cheryl: we want to bring you some breaking news now, we take you to dallas, texas, you're

looking at live pictures, former president george w. bush now speaking at their dedicated george w. bush presidential library. all of the living presidents, you've already heard from president barack obama and the first lady. you can see these earlier pictures of all five presidents standing together and getting remarks, former president carter, former president clinton and the three you see on your screen. continuing to go on right now live in dallas, texas, and continuing to monitor the remarks coming from there. dennis: our next guest says the easy money and shirt and gold is behind it, time to start shorting oil. you say oil is the next commodity to fall even more. it has been down, right? >> has been down, but not as much as gold.

gold has had an elongated bull market driven of course by key and increasing money supply. i think investors really got away from the fundamentals just to say there really hasn't been evident, the numbers have been wiped. outside of the emerging market inflation in the emerging world hasn't seen what people expected. dennis: gold is corrected, will gold continue to go down, or will gold go up? >> whether it goes up or down from here, the eu trade is behind us. other barometers of global growth such as oil hasn't seen the same direction. i would turn to those primers at this point and say if you want to play a continued slowdown in global growth with two other commodities.

dennis: y. will oil falls and water forecast be ruined the first time we are worried about iran again? speak of those proved to be short-term. they generally are passive stories. what is happening now is the second-half forecast are rising. somewhat moderate, not very impressive, lower numbers for the full year. it would have to be very impressive number in order to make gdp estimates and individual equity etf estimates bringing their hopes essential essentially. dennis: don't gold and oil travel in the same direction? >> they usually do. one of the things has been anticipation of spring and summer driving season. dennis: thank you for being with us. they're going to cut to some raking newspage cheryl: want to update you want to get on the breaking news we brought you the last hour of "markets now," the

delays of trading at the chicago board options exchange, some computer outages being blamed. there are some updated details on what is going on. sandra: i wanted to save independently confirmed this outage was the chicago board options exchange and different information than what was originally provided by various reports. it is affecting all options traded at the chicago board options exchange. the biggest options exchange in the world across the street from where we are at the cme group in chicago. none of those are open for trading. they were told they would have an electronic glitch, have those options back up and running by 10:15 a.m. eastern time this morning. that never occurred. we're actually standing right in front of the options pits at the cme group in chicago where

everything is still trading, this is just what we are talking about but this is of course the bulk of the options trading. also confirms to the fox business network there is no definitive time those options will begin trading again today. of course, this does affect the s&p option, the fix option, those that we talk about every day all day. they are not trading right now. no definitive time schedule as to when they will begin trading. we're on the phone and they will have options for us shortly we will bring those to you. cheryl: thought there was a delay, now now trading at all, that is frustrating for everybody down there. we will keep you posted on that breaking news as we get more details. congress now wants to exempt lawmakers and their aides from obamacare. dennis: and how cool is this?

everything finally clicked into place for the legoland hotel. we will take you inside. cheryl: shares of marriott vacations hear hired today. take a look at that stock. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and saveour money. joe doesn'know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.

dennis: more on breaking news i have been telling about a trading glitch shutting down. sandra smith at the cme. sandra. sandra: an electronic glitch shut down the trading systems, both in their electronic and therefore operations are closed, remained closed and never opened this morning. we've just confirmed there has been no trading of options.

chicago board options exchange. no trading of their options which includes the s&p 500, the vix options we talk about very often. all options have been affected, we know that at this point. the systems are still down. there was some confusion earlier because the exchange put out a notice saying trading would resume, note that never happened. the system is still down, there is still no trading at the exchange at the floor. working on getting things back up. they will notify us immediately when that happens. it has not happened yet. we are not releasing what exactly has caused this problem. we are on the phone with them and we will let the you know. cheryl: sandra smith of the cme, thank you very much. here in new york at the dow

higher by 65 points. nicole petallides live on the floor of the new york stock exchange. take your pick on what stocks you want to speak about, nicole. nicole: i want to talk about zynga. you think of "farmville," "words with friends." down 7% right now. not good numbers. deeper than expected loss, lowering the outlook. looking at 3m, under pressure and weighing on the dow about 19 points to the downside. that is the latest here, back to you. cheryl: nicole petallides. dennis: this hour he is drilling with profits. charles: i like your just a moment ago. this is a blocking oil play. recently they have pulled back.

i know crude has pulled back a little bit. this is a company, harold hamm is the guy who runs the company, he has been a maverick in this space. one year he drilled 27, these are the kind of guy to follow, they are pioneers in drilling. he says 24 william barrels of oil in nevada. the government will not allow them to go that far because of certain parameters but he has no doubt about it. they are equivalent to up 83%. they are sitting beautifully. i think the stock will turn around, go back up toward the 93 area. cheryl: i think what is so interesting about any of these drillers, those with cuts mentay

like continental, there is so much oil down there. charles: he has sunk a lot of money in the last election and it was not for the president in the white house right now. dennis: is always a gap between where the oil trades and the oil minors trade. charles: a lot of these companies have to hedge and things like that. they are betting on their technology and they have to bring oil out of the ground. one thing he made a point of, it has been touted as a natural gas play. that is where it will be, trading at 0.38 peg ratio. not anywhere close to where it should be trading. cheryl: your liking oil more. seven, eight years, you've really got into into energy in the last few months. a bit of a departure for you.

charles: it is one of these things with the global economy will be back it will do very well. dennis: thank you very much, charles payne. amazon targeting apple and netflix getting set to report earnings after the bell. amazon's plan for kindle tv. cheryl: peter barnes coming up on home mortgages in the crosshairs. but first, look at the world currency and how they are faring against the u.s. dollar and the euro at $1.30 right @

>> 25 minutes past the hour, this is your fox news minute. some new and stunning allegations from the u.s. accusing syria of using chemical weapons against rebels last month. john kerry says the regime launched to chemical attack and defense secretary chuck hagel said in a letter to several members of congress u.s. intelligence confirms some degree of varying consequence chemical weapons have been used

on a small scale. syria has denied using any chemical arms. the cia has suspected bombing suspect on a list. russian authorities contact the fbi on march 2011 about the older brother and several months later the russians also contacted the cia about him. but the 2012th trip to russia did not raise a red flag with u.s. intelligence. all five living presidents today in attendance for the dedication of the george w. bush presidential center continues in dallas. those are your headlines. sending it back to you, dennis. have a great day. dennis: thank you very much. you two. the rate for a 30-year fixed duction on your taxes soon toag disappear if some lawmakers get their way. peter barnes joins us with that story inside the beltway. peter: at least some of it.

the mortgage interest deduction is back on capitol hill. they are having a hearing on whether and how to cut it back as part of the tax reform. the tax break worth $70 billion this year for some 35 million homeowners proposals from the obama administration and some in congress would reduce the mortgage interest deduction by capping most itemized options particularly with wealthier families. right now you conduct the interest on mortgages of up to a million dollars, some proposals would cut that to just $500,000 others want to limit the deduction for mortgages are on second homes. it has realtor is fighting back hard warning any reduction in the tax breaks could hurt housing prices and hurt the fragile housing market recovery. but many lawmakers in both parties want to reserve some sort of homeowner tax benefit for middle-class taxpayers.

>> my biggest concern is would not pay for tax reform on the backs of working people. i am broadening the base and lowering the rate sounds great, a great bumper sticker, a great slogan for that cannot commit the cost of working class families. peter: one proposal is to replace the tax deduction with a tax credit for mortgage interest payments for middle-class homeowners. back to you. dennis: thank you very much, peter barnes. cheryl: a difference one year makes. the ceo of marriott vacations worldwide to talk about stock performance. and also an update on how the split is going currently. that is coming up. dennis: lawmakers looking for ways to exempt themselves from president obama's health care law. the outrage and the hypocrisy coming up. but first a look at some of the s&p winners and losers. this is america.

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cheryl: more on the breaking news about the cboe the trading glitch shutting down, trading at that exchange. sandra smith has more details coming from the cme right across the street. santa: imagine a trading floor with nothing to trade, that is basically what is happening across the street at the cboe, the chicago board options exchange. they're all still shut down, halted, not reopen for trading.

the system not allowing them to open for trading today. it will be reopening, did not. the bulk of the world's options trade right there at the cboe, they are not trading either electronically or in the pits at the cboe. they had no estimate of time they will begin trading and talk about what options were affected you will see the s&p 500 stock options, dow stock options, nasdaq stock options, vix options. their care options complex is not trading right now. we're still working the phones of a lot of traders as you can imagine it is the buzz the cboe is not open for trading today.

cheryl: thank you, sandra. dennis: stocks every 15 minutes, looking at some movers. nicole: kno note i'm looking at here? a tech favorite. gaining some momentum up 1.3%. also watch a microsoft lead the way the dow jones industrial certainly doing well ahead of the stock launch an annual high. we're watching angie's list which came out, they cut the loss, sales on the rise. an all-time high. duncan brand coming out with their numbers and doing well. how about good old facebook. back to you. cheryl: it has been a little over a year since marriott vacations worldwide spun off from marriott.

here is the one-year chart, up on earnings. they went public november 2011, if you compare it, didn't mean to hit that, the stock is one of the better performers. wanted to talk about the split from marriott because it is such a long transition and you will still be forecasting throughout the year with regards to the financials, do you think is going to go into 2014, the cost structure taking apart in marriott? >> thanks, cheryl. one of the things we have been working unless you're into this year is to make sure that we are the right size for the size of

business we are. in some cases that is meant we have moved out some of the technology platforms, moving on to something a little bit more size to a company of our nature. and we will continue to move in that direction. having said that, has gone very smoothly thus far, and it is the right place to be. cheryl: you raised your guidance, revenue in-line for this quarter. the weakness seems to be in asia. still a weakness nonetheless. do you have a turnaround for that part of the world where do you continue to focus on north america and the strength there? >> we will always focus on north america. asia is a great growth opportunity for our company. a few underperforming sales distribution centers for us, very focused on planning and

inventory on something more of an asset like nature, growth resorts in that part of the world. we think it is a great opportunity for the future. cheryl: five to 10%, which considering somewhat of a tepid stage of our economic recovery, and frankly around the world, is a pretty good number. looking ahead to 2014 do you think you can continue the strong momentum? >> it would be tough for me to predict that at this point in time. obviously we would like to be able to do that. a lot will depend if we can open new distribution centers giving us additional places where we can generate sales. we plan to try and do that in asia and other parts of north america. but our goal is to continue to grow as best as we can given the environment we have to deal with.

cheryl: ritz-carlton is way more luxurious brands you run, one of the stronger brands in the company overall. do you see expansion opportunities for ritz-carlton? >> please be mindful of its growth are managed by marriott international. but the destination club which was part of our portfolio brands quite frankly has hit a rough patch the last several years. really the space with this brand plays has been disproportionally hit as a result of what happened with the economy. the time being we are thinking taking a little bit more conservative, not developing new resorts. overtime of that condition changes we will certainly be able to pivot. cheryl: with marriott running the major brands, the stock

performance over the last year i think speaks volumes to how the ipo has gone so far. thank you very much, a good quarter, we will see you next time. >> thanks, cheryl. dennis: how is this for an outrage? congress want to give itself an exemption from obamacare. incumbents will talk to exempt lawmakers and their capitol hill staff from the insurance exchanges otherwise mandated to join as a part of the health care overhaul that they pass. it may show insiders don't like the restrictions of obamacare. bailing out of the senate to approve for the people who voted them in office. cheryl: don't you like when you pass a bill to 2000 pages, they admit they did not read. the effect on businesses and on legislative offices. dennis: kicking into gear 2014, but watch for any affect on midterm elections.

cheryl: you know who is going to have a lot to say about this. do dogs of course. he will be joining laurie and melissa coming up in the next hour. dennis: building a business, we go on the road to the legoland hotel. cheryl: take a look at the 10-year treasury and the 30-year period we will be back. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bk and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everi'm with scottrade.e. (announcer) scottrade.

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cheryl: we are getting crucial details bringing to you about the cboe. shutting down trading at the exchange. you've just learned crucial, crucial new information. sandra: some products will be opening at 11:50 a.m. central time. of course they're in a major scramble to get operations back up and running, so very brief conversation the cboe told us some products will be opening in just about five and a half minutes. they did not specify which products will be reopening, just some of those options will be trading again at 1150 central, 12:50 eastern time.

they did not say it is their entire operations, just some products will begin trading again. everything is still halted at the cboe. we will go back to you. cheryl: we will wait to see if this actually happens. sandra smith, thank you. dennis: time to go on the road, pirate adventure or kingdom, the theme room choices for guests of the new legoland hotel which just opened in carlsbad, california. we have the general manager, thank you for being with us, peter. open since april 5, 3 floors, 250 rooms, $360 per night. how is business? >> it is fantastic. north america's first ever lego themed hotel in carlsbad, california. a family themed attraction for

children between the ages of 2-12 and their families. i can tell you it has been very, very well received. dennis: how many lego models and bricks can we find in your new hotel? >> i think it is three and a half thousand in total. when you check in, there is a wall of figures like the ones on my back today, 1000, these are the kind of iconic statements children find so compelling. it has been extremely well received. dennis: 3 million lego breaks in total. every room have two tv sets, something kids would really like. >> absolutely. children have their own sleeping area which is distinct from the adult sleeping area. we even have signs on the walls. which the children love. their own television, they can

watch tv when they are resting, but most of the time they will be on the legoland park or in the water park having a blast so they will not spend too much time in the hotel rooms watching tv. dennis: did you carve out a space where parents can dump their kids with caretakers and get time away from all of those kids and lycos and stuff? >> the whole of legoland california is about the children being in the driving seat and i mean that quite literally but of course there are bar areas the parents can sit back and watch the children be entertained every night. you can have a beer or two while the kids are having fun in the hotel. but it is really all about the kids. dennis: good luck with the new hotel, thank you for being with us today. >> thank you very much. cheryl: continue to monitor what is happening in chicago, the cboe, we'll look at what is happening in downtown new york.

airlines reporting earnings delaying air traffic around the country, lots of big-name airlines reporting this morning. join me now from the new york stock exchange. southwest hitting a new high, other names are moving, are you bullish on this group? >> i am for the moment. we will have to see if sequestration with air traffic controllers slows down this nice run the airlines have had over the past year. that is really the main risk to the airlines right now. if you look at some of the indexes for the airlines, also five major airlines that are with the transport index, both of those indexes are closer to the 52-week highs so a nice run primarily by the airlines group and the business models to figure out how we can strip out the overcapacity of the industry so as they go up.

prices fairly stable over the last year, the biggest expenses they have incurred. cheryl: gary kelly was talking about this concern and no visibility about the month of april a carrier like southwest and sequestration will be hit the worst because they're the ones taking off and landing so much more frequently than the other airlines. having said that, what about the other big names? united, delta, also close to what is happening at the faa. will they have less of an effect? >> they will congregate the routes around chicago, new york, washington, d.c., atlanta. that is where most of the furloughs are occurring right now, there will be slowed down as well, pets or traffic going down, the casual traveler coming in will get frustrated and maybe

driving to their destinations or vacation destinations. a real economic issue for the broader economy. cheryl: what we were seeing today is a little bit of a tightening between brent and the wti contract. we're getting close to summer, you would think we're going to see a rise in home prices, that would just be seasonal. all bets are off, how are you feeling right now? >> opec is savvy and very sensitive to the global economy and always trying to strike a nice equilibrium between having a healthy oil price and not crimp in the economy too much. they reached out in the 90 to $100 per barrel mark, little bit higher for rent crude. as long as the economy continues to bump along i think it will prices stay right in there, and they will have some room to

move. cheryl: they can do that as well with the hedging they have been doing. keith bliss, thank you very much before the new york stock exchange. dennis: "the new york times" had big growth in online subscribers why did the online ad sales fall? ahead in my "media minute." cheryl: moving up today. we will be right back. [ male announcer ] you are a business pro. omnipotent of opportunity. you know how to mix business... with business.

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dennis: file this one under sleeping with the enemy. a new: firth film struck a marketing deal with a website hollywood hates. bit torrent. helping to fuel the illegal downloads every year. arthur numan is the film. the first seven minutes will run first on bit torrent before the film opens tomorrow. hollywood is officially outraged but it is a smart move, the card has 170 million users and most never would have heard of this film read the great lady not looking so good in the first quarter of "the new york times" saw revenue drop. ad sales dumping 13% in print, most gruesome online revenue dropped from a year ago. the times a day for $0.05 jump in online subscribers. but who cares when the stock popped up 5% earlier today, now down a touch. watch out apple, amazon gunning for you again.

kindle tv, cheap set-top box. apple tv has been a flop for years. cheryl. cheryl: we will continue to update you throughout the trading day, what is happening at the problems with the cboe. waiting to get confirmation that trades have actually kicked in. also, the sky is the limit, having the senate rethinking the faa furloughs. dennis: lawmakers conspiring behind the scenes to avoid having to sign-up for health care under the law they passed. lou dobbs on that nice little irony next.

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♪ lori: good afternoon. welcome to a brand new hour of market now. i am lori rothman.

melissa: and i am melissa francis. delays at the airport just pileup. lori: realizing what the affordable care act means. lou dobbs will wait in. congress will consider opting out. melissa: positive progress on the keystone pipeline. the chairman, congressman joins us as canada threatens to take its oil to asia if the u.s. does not act. lori: we are in the traders. it is back to the floor of the new york stock exchange. positive gains at the moment. nicole: up arrows across the board. the tech heavy nasdaq the best of the bunch. as far