melissa: welcome, everyone. i am melissa francis. lori: i am lori rothman. the cyber threat may have hackers with ties to the group anonymous targeting the government business and your money. jonathan on what can be done to stop it. melissa: outsourcing the basic commodity, lou dobbs has been worried about china, so are these latest accusations in a surprise to him? lori: digging deeper into debt. the concern of dissident debt bubble that ballooned to $1 trillion. melissa: and what is in a name? a lot. what's your first name can spell for your paycheck. time for stocks as with every 15 minutes, nicole petallides is standing by.

the dollar near the highs of the day. nicole: it really is. 15,036 was our high of the day. a couple of points away, up about a half of 1% on the dow jones industrial. the nasdaq has moved back into the green lower the majority of the day. a gain of about half a percent. the majority of the names are in the green, retail stocks, banking stocks with green arrows. some of the best performers in percentage terms on the dow jones industrials today. there are several names of more than 1% but a look at caterpillar and jpmorgan getting closer to those. united health at 1% and dupont with an up arrow. three quarters of the names of the s&p have a perilous with the exception to some names getting beaten down. that is cisco and microsoft dropping more than 1% each.

melissa: thanks so much. lori: the u.s. under cyber attack again. hackers threaten to strike. coming at the pentagon issued its sharpest criticism yet of the chinese role in cyber espionage and hacking. joining us with the latest, founder of red tiger security working to protect america's critical infrastructure systems. thank you so much for joining us here. let's take a look at how seriously should take the threat from these anonymous hackers. >> you should never underestimate your foe. you should not attack a wasp nest unless you have a can of wasp spray ready, right? we don't think a lot is going to happen, but you never know. they could bring in some friends with heavy artillery. lori: it seems the threats are coming from every which way. this one coming from the middle east, the pentagon just the

other day issuing the strongest accusation so far against china blaming the cyber intrusions directly on the chinese government and the military trying to get american business data. will these warnings, the finger-pointing from the pentagon actually get china to back off? how effective is the strategy? >> we have to confront them. they are making money off of this. i don't think it is really going to do much. the report was spot on. lori: tell me more. you have expertise in understanding what the chinese hackers have been able to get from hacking into our industrial companies, some of the oil services industries. tell me more about your understanding of the actual information they're getting and how they're using it against us to eat up the economy.

>> they are coming into the corporate network, people are clicking on things they shouldn't click on, the computer is slow. what they're doing is putting some code on the desktop allowing them to remotely control their computers. from the corporate network they can creep down into the control system that monitors control, and from what we can see they are taking blueprints, operational manual show, they cn an efficient operation. some of it are bid contracts. what we saw were several contracts in venezuela, overseas in china were lost to chinese companies. certainly making an impact. lori: annually in china refers to point out how much business making with the interest in china. but i know you want to weigh in, the chamber of commerce new york businesses doing business in china did a survey and found out

46% of american businesses are seeing more instances of cyber attacks and stealing critical information, so how much of an economic impact, how much money, can you quantify it for me? >> i don't really know how to quantify that. our business focuses on critical infrastructure and what is alarming to us is sure, they're stealing information get into the business systems, that has been happening for years now. what is alarming to us is into the control systems monitoring and controlling critical infrastructure. what happens if the motivation changes? sweeping on how the powerplant works, let's say we upset them at some time, we will just go ahead and make the city of houston blacked out. that is what we worry about. cataloging the type of technologies we use, if the

motivation changes in the future. lori: how is u.s the u.s. doing preventing further attacks? >> what we're doing is the u.s. is putting out a lot of information, they're pushing out three things, hacking legislation, requirements out right now that the competition has firewalls in place to protect themselves but that is only one industry. more is needed for oil and gas. lori: jonathan pollet, thank you so much. melissa: the s&p 500 sitting at a new all-time high probably more than 13% so far this year, have we come too far too fast? my next guest says home evaluations are no longer as compelling as they were years ago. there are still some good deals to be had. sam, thank you for coming on the show. there was an article that caught my attention saying what

optimists and people in business to the ignore his high prices, the boom has generated profit of lower, not higher reward in the future, our prices too high right now to give us decent returns in the future? >> i don't think they are too high right now did history provides the guide to say this would be a better year than people were expecting or experiencing so far. this is the fifth year of this bull market. 83% of those bull market has celebrated their fourth birthday went on to celebrate their fifth and average price increase was 21%. how expensive are the underlining stocks i am buying. right now look at p/e ratios, are looking at discounts basically of anywhere from 8% to

16%, but all those indications are that we are below these averages would he go back 1988 or 1948. melissa: s&p profits have jumped 71%. that is the big number. it makes you wonder how much longer it can continue. >> i think anytime you have an advance in crisis, et cetera, the question is is that going to last. the average earnings increase on a quarterly basis close to about 7%. that is the number expected for all of 2013. in the most recent quarter, s&p i. q. is indicating it will probably be up about 5% for this first quarter while below the longer-term average is a lot

better than the one half of 1% that was expected at the beginning of this quarter. liz: yesterday said where we are now breaking this new record versus the last couple of times we have done it, more hedge funds are extended long. there aren't a lot of incremental buyers left on the sidelines right now, does that argument play for you? speak of that is possibly the case, but if you talk to an awful lot of individual investors and even a lot of institutional investors, they are disbelievers in this rally, lot of people have an awful lot of cash on the sidelines and i think that is the reason the bull market take the stairs and the bear market takes elevator. people throw in the towel at different rates of pace on the way up and that's what could sustain us up until 1670, 1700 s&p 500. melissa: thank you for coming on, great. >> my pleasure, melissa.

lori: the pressure is mounting on jamie dimon. the second proxy firm urging shareholders to split the role of ceo and chairman at the bank. recommendations are not binding but according to the "wall street journal" some of the bank's largest shareholders are still undecided if he should keep both roles. they have met with institutional investors to try to persuade them to vote against splitting the jobs. microsoft making over windows 8 coming after one firm said the software contributed to the huge drop in pc sales in the first quarter. microsoft is looking to make the software is easy-to-use and more compatible with more tablets. and a sign of the time, adobe pitching package products and move into the cloud. customers will have to use of programs like photoshop through an online subscription service. the company says it won't affect the bottom line but shares are down nearly 2% on the news. melissa: rough seas for carnival. the latest trouble for the

cruise liner to bring to you. lori: is why they don't have to grab a little brown bags. lori: what the length of your first name can mean for your paycheck. melissa: and china has the light on the criminals. lori: and what is the impact on metals? gold, silver, copper all down significantly with gold leading the decline. $18 per ounce. ( woman ) hold on, this might get bumpy.

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here's the thing i don't think people realize just how big the currency market is, the largest in the world, these guys have made major inroads. dumb little bit year-over-year, but everything from asia, europe, and stays up great over the last three quarters. account in retail up 50%, volume at 40% for april. if it goes on, this could be huge quarter for these guys and this stock is on the cusp of a major breakout. lori: do they do better or worse when the major currency dollar to euro do better or worse? charles: it is the volume and volatility. this is the irony. very little volatility from the bottom of the currency. we start with volatility amongst the currencies anytime this year, the stock, this company could be a huge beneficiary because those are more trades

like the stock market up and down. in the meantime i think this one would be off to the races for people who are intimidated by the currency market, and i think you should be. this could be a good way to have exposure to it. >> nicole petallides on the floor of the new york stock exchange for us. the dow transports hitting a new record. nicole: the truckers and shippers can be an economic indicator because it means more goods and services are happening needing to be shipped and moved by rail and the likes so certainly can be. dow jones had 1.3% hitting a new high. we look at the exchange traded fund, that is hitting an all-time high in the session as the dow jones transport etf, some of the top holdings including familiar names. federal express, fedex. union pacific shares for example

are hitting an all-time high as you can see the etf here is a one-year chart. up more than 20% from last year. obviously a great performer. looking at the transportation, the airlines did very well. delta and united continental. up 14%. back to you. lori: thank you. melissa: the pentagon is done being slight. blaming china for hacking the system. lou dobbs on why america has been turning a blind eye to the chinese threat up until now. lori: if you are brave enough to bet the dollar in and of itself. the performance against the major trading partner. back in a moment. change makes people nervous.

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>> 21 minutes past the hour, good morning, everybody. sager estate john kerry with

vladimir putin telling him that both countries share a similar interest to end the conflict in syria. president obama will be holding a joint news conference this hour. the two leaders plan to present a strong front against north korea's bigger threat. leaving the door open to talks. in south carolina, former republican senator is saying if he loses in today's special election he will not seek office again. he is running for a congressional seat against the sister of stephen colbert. after disappearing for five days to visit his mistress in argentina. a quick look at the headlines on the fox business network. melissa and lori, back to you. lori: thank you so much. the first time u.s. military officials are singling out china. the pentagon pointing fingers at china directly accusing the

country of cyber espionage. melissa: numerous computer systems around the world including those owned by the united states government continued to be targeted for intrusions, some of which appear to be attributable directly to prc government and military organizations. lori: the u.s. finally getting blonde with china on the cyber espionage. lou dobbs raising the flag of the commodities outsourcing and even ambitions with space. it is interesting why now do you think the pentagon decided to get stern with this warning, and will it be effective, more importantly? >> let's start with effective. at the margin possibly because this is a matter of what ago will. but the threat, i am using the word, advising to such a level now writing for not even politically correct sort of officers in the pentagon and the democratic leadership in both the senate and the white house

can explore, watching a tremendous buildup of chinese defenses, technology. 12 space launches last year alone, they have the capacity to get to space right now, the united states does not with respect to the fact 1869 we were the first to land on the moon. we won the space race but suddenly time has passed us by. the chinese, the russians are dominant. it is very much a serious threat what they're doing in space with surveillance, national reconnaissance effort in what they're doing in cyberspace. the united states defense department in its annual report had the knowledge for the first time that the chinese army is intruding as they used the word intrusion, they are absolutely attacking our military assets in this country.

and getting away with it to this point. you'll remember leon panetta said if they in any way disabled, crippled the u.s. asset, by golly that would be an act of war. in other words, this administration has announced to the chinese short of crippling our assets, you can do what you want in cyberspace and get away with it. we have got to have a response that is more than nonsense rhetoric. melissa: what do you think the appropriate response would be? >> if they come after our assets, we should in fact inflict great damage upon them. i mean significant damage in cyberspace. there should be no toleration. it should be a zero tolerance in an intrusion into the united states military infrastructure. that is madness to permit it. only fools would endorse such a policy. lori: chinese woma policy spoken

had this to say. is she full of baloney or does she have a point? >> she knows what she is full of. she can say what she wants as the spokesperson for the world most popular nation. it is about the united states, about our leadership, understanding the threat when it is clear and present. fbi director said a decade ago we cannot permit these attacks to persist. we cannot permit 3500 companies to be actively engaged in espionage in the united states. this is a preposterous tolerance for attacks on our sovereignty. lori: thank you so much, lou dobbs. melissa: very passionate.

>> i will tone it down. i don't want to convey in any way that i care. lori: you cannot fool us. join lou each and every day 7:00 and 10:00 p.m. eastern. you can see the house finance committee chairman, over viewing the conducting meetings and whistleblowers will testify. melissa: disney working some magic. what you need to know before the media giant reports. lori: americans cutting back on debt except when it comes to college. the growing concerns on the $970 billion student loan bubble just ahead. melissa: carlo can't seem to chase the dark clouds away. the new problem with the re-vamps ship. lori: and the decliners on the dow. cisco, jpmorgan shares are climbing.

we are back after this. [ man ] on december 17, 1903, the wrht brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you hear your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪

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melissa: time for stocks now as we do every 15 minutes let's head to the floor of new york stock exchange. our own nicole petallides standing by. nicole, the dow adding to gains here. >> this is one of those days great for the bulls if you're loving it, you love 15,000. the dow jones industrials are up 69 points. this is record-setting day, historic day as we set new highs. look at disney right now. you can see disney is up 3/4 of 1% trading near the all-time high. we'll get numbers after the bell. analysts looking for earnings 77 cents a share. both earnings and revenue were supposed to be greater

than they were big gains from a year ago. separately the company announced a deal with electronic arts. that will be one to watch. watch disney "after the bell." don't miss it at the 4:00 p.m. show. ladies, i can't resist, i'm a real patriot okay. first thing i noticed, does anybody see anything going on with melissa, lori and i here a little bit? lori: leave it to you, nicole. you leave no detail. melissa: i love it. you're the best. lori: if i had height like nicole, then it would be all good. you too, for that matter. who is taller you or nicole. melissa: she is definitely taller than i am. she is statuesque and gorgeous. lori: as you are, my dear. let's talk about something exciting, student loan debt. hovering if you can believe it near the one trillion dollar mark. estimates before today's update and consumer credit, student loan debt continues to pile up with nearly 39 million people holding some amount of student debt.

anthony randazzo, economic research for the reason foundation. he tells us how all this outstanding debt impacts the con mismd anthony, thanks for joining us again. >> sure. >> it has been characterized as the next financial bubble to burst causing a ripple effect of economic economic horrors. do we need to do something more to rein it in? >> we need to be worried about student loan absolutely. the word bubble is thrown around a lot. sometimes it is related to the housing bubble. it will not be the same way. financial institutions don't have housing debt, don't have student loan debt in the way they had housing debt. lori: so you don't think student loan debt is bubble about to burst because, only higher level of outstanding debt is mortgage debt. i've got these low interest rates with congress extending time frame it is keeping interest rates so low. >> it is a bubble for households. not for the financial markets. lori: okay. >> that is what is important. it impacts the economy.

it will not see that financial institution will need bailouts. homeowners have increasing levels of debt. lori: if students default on the debt, it is not forgivable in bankruptcy. >> right. lori: the banks will not get saddled with it? >> the fact the federal government has almost all the student loan debt. institutions will not be saddled with the losses the primarily the federal government, especially since 2008, they have taken on up to 90 even more% of student loan debt. it could be taxpayers that wind up dealing with the cost, the fact the matter is student loan debt in terms of nonhousing-related debt t was 10% of debt ten years ago. now it is 35% of household debt not related to housing that will be crushing homeowners. which means they will not be saving. declining saving means less investment. less investment means damage to the economy long term. lori: bring it home further. young adults fresh out of school in a lackluster job

market. they're not able to dig in to buy the american dream. not buy a car. a lot will move back home with mom and dad. >> or at rate they're not owning homes. it will be a change to the american dream. i don't know that particular change to the american dream is the problem. lori: okay. >> the biggest problem will be declining savings. declining savings, less investment in the economy. that is why we have such a dismal economy right now. there is very little aggregate investment, you get consumption bumps that have little spurts of gdp that provides a little bit but in terms of long-term growth you need investment and you need savings for that. increased debt hurts that problem. lori: do you look at it from the point of view from the educational institution whereas almost this vicious cycle, right? >> right. lori: the availability of debt is so flush that the institutions can keep raising and raising tuition? do you see stopping of that cycle at all? >> the increase of tuition is huge problem. the since 1980 the rate of tuition has grown 3.5 times the rate of inflation.

incomes are about at inflation. that gap, that is where the all the student loan debt is coming from. i would say, the less the federal government providing in student loans less demand there will be for education at these praises which would force institutions to sort of change their models. but at the same time, students will have to turn to alternative education models. not going for the four-year degree, is something that people need to embrace. at the same time, employers need to recognize that they don't have to just be looking for the 4-year harvard degree to get somebody incredibly talented. lori: that is whole another conversation, absolutely. there are so many angles to the student loan issue. thanks so much, anthony, for joining us and sharing your insight with us. great. melissa: more problems for the carnival cruise line. the sunshine ship sets sail for the first time in three months is already experiencing problems though. passengers are reporting issues with some cabins as well as closures of attractions on the ship's top deck due to unfinished work.

carnal says the main pool is closed because of technical issues. the company spent $155 million on the overhaul. it is one of the biggest ever or an older ship. hmmm. i don't know, would you go? don't say it. lori: that sums it up, right? treasury secretary jack lew jack lew's john hancock getting a makeover. melissa: that's right. forcing ethanol down your tank. the epa is set to rule on the controversial e 15 gas blend even as carmakers warn of the dangers. lori: this is not that interesting considering we have a nice rally in the stock market people are selling fixed income. you have interest rates rising. 1.78 on the 10-year and even three handle on the 30-year. three handle on the 30-year. we're back after this.

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[ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> i'm jo ling kent with your fox business brief. travelers could see relief at the pump this summer. the energy information administration lowered the forecast for gasoline prices by ten cents since april. eia expect as average of $3.53 for a gallon of regular. a federal court of appeals is rejecting a union poster rule by the national labor relations board. the rule would have required businesses to put up posters informing workers of their right to perform a, to form a union or face charges of committing an unfair labor practice. home prices were up for

a 13th straight month in march. according to corelogic, prices rose nearly 2% from february thanks to strong gains in the western part of the u.s. this was the biggest gain year on year since march 2006. and that is the latest from the fox business network, giving you the power to prosper.

melissa: so looks like jack lew is trying to work on that now famous signature of is before it ends up on the dollar bill. the most recent report from the financial stability oversight council includes a much more conventional and some would say boring signature by the treasury secretary which you see at the bottom here, instead of the curlycue signature that we originally saw. treasury spokesman tells fox business, as to his official signature i would advise you to stay tuned. lori: a work in progress.

melissa: i like the one looked like a ding dong. lori: very cute and so unique. melissa: all right. lori: crude oil futures are pulling back right now after touching a one-month high yesterday. jeff flock in the pits of the the cme with more. inventories are coming out tomorrow. what is the word? >> later epi later today gives indication about inventories. everybody expects them to build again today. we'll ask phil about that. wti, you see what it did over the course of the past week, phil but we're done, apparently. >> we ran up $7.50 from last week's low. we peaked sunday night. that was syria. whether or not we would go higher up and push into triple digits. >> brent as well pulled back even more. >> that was really a surprise. really the inventories are pushing this thing lower. >> we're at 82-year high as we continue to stroll the

floor. i want to look at perhaps the impact on gas prices. you heard in the news minute what the eia is saying. let's put the numbers up so you see them. year-to-date high, $3.7 for an average. now it is about 3.52. last year the year average was 3.63. the eia forecasting 3.50 for this year as an average and 3.39 for 2014. how the hell do they figure out what will happen in 2014? >> you got to look where we're going and where we've been. right now we're putting out seven million barrels per month. we expect that that to increase about 7.75 towards the end of the year. it is -- >> drill baby, drill, pump, baby, pump. lori: okay, sure, jeff. whatever you say. thank you. melissa: the epa could soon mandate that oil companies increase the ethanol content in gasoline from 10% to 15%. some interested parties are not prepared to accept such a decision though. fox news's william la jeunesse has the latest. william?

>> well, melissa it is a bat early for the barrel. automakers say e15 will damage your engine. the epa says it is safe. refiners say they're not against all ethanol, only how much they're required to blend. >> we just feel that it is not safe for the consumers. it is not safe for their engines. >> the refiners don't like it. neither do most environmentalists or automakers. >> 95% of the today's cars are not suited for e15 based on what the people who make those cars have told us. >> so why does the federal government require consumers pump more and more ethanol into their tank? >> when the law was passed we were 60% dependent on imported oil for liquid transportation fuels. today we're only 41% dependent. a good part of the reason for that is the growth in ethanol. >> first mandated by congress in 2007 as a clean, domestic fuel, gas sold in the u.s. is now 10% ethanol. the epa supports increasing that to 15%.

but the auto industry says e15 corrodes pumps, fuel lines and injectors. >> the problem is that congress has mandated more ethanol into the, gasoline pool than we can safely put. >> put e15 in vehicle not designed to burn it, your engine is going to wear prematurely. >> automakers say they won't cover damages caused by higher blend. >> they will not honor warranty if the use of e15 if it is not appropriate. >> ethanol makers dispute it. >> e15 has been sold in the country past nine months with no issues whatsoever. this is hysteria driven by they don't want to see more ethanol used in gasoline. >> now the epa may delay the mandate. we do know that they held hearings. they're expected to make a decision soon right now. you have a lobbying war. ethanol and farmers versus oil companies and refiners.

if they don't make that decision, expect to see a warning label on the pump and consumers make their own decision based on price and performance. melissa. melissa: william you made the most important point at all, for, many, many cars it voids your warranty if you use the feel. so important for people to know that. you obviously don't want to do that. william, thanks so much for coming on. good story. >> you bet. lori: let's check markets for you. jason weisberg of seaport securities joins us from the floor of the new york stock exchange. jason, do you think the dow will close above 15,000 today? >> yes i do. we're going a lot higher. year-end we'll all be dancing around 16,000 on the dow. lori: what will take us? what the drivers from here to there? >> i mean you're getting zero in the bank and people, people want to make money and there's, there is quality companies out there that pay a nice dividend to wait for capital appreciation. why not put it into the market. lori: where specifically? if i have new money to invest what industrys? are you taking a little more risk right now?

seems to be the play. >> i personally, i probably took a little too much risk early on but think financials are the place you need to be. lori: why exactly? >> because in order for this market, if this market is truly going to the places i think it's going the financials will lead it there. lori: so you don't, you wouldn't recommend being so obsessed if you will the dividend-payers and some blue-chips and some defensive names? >> no. look it. if your needs are, income i would focus on the income-paying stocks but quite frankly, the one sector that if you really need to be heavy in would be the financials. if you believe in the market going higher because they have kind of lagged last year and you think they're going to take this market to unseen heights. lori: what do you think about technology? some question marks among others. >> listen, i love technology stocks. technology stocks bring a lot of excitement to the table. they're constantly, they're the only companies that get a chance to reinvent the wheel. lori: sure. >> ten years ago if you got to invest in a company where

the object would be reinvent the wheel every year and create new products where people don't get bored you would do that. i think most solid technology companies have paid off huge in capital appreciation. not necessarily dividends. lori: jason weisberg, thank you so much. melissa: cashing in on facebook's billion users. the new video ads that could be popping up on your news feed soon. lori: and short and sweet. what the length of your first name could mean for your paycheck. paycheck. let's look at some winners on the nasdaq here. directv, yahoo! all having significant gap ups at the moment. back after this.

melissa: looks like facebook has a few more tricks up its news feed as the company

tries to lift its stock price, down more than 28% since this time last year. dennis kneale is covering the story. he jones us now. >> hey now that facebook has more than a billion people in its tent future growth lies in selling access to them. so face bike will start running video ads on the website t will join facebook users news feed in a trial in july. trial of big brands as coke, ford, american express. which may strike many facebook fans as a intrusive waste of time. they balk at any change in the interface and. too bad, we have a business to build and a stock price to lift. facebook could take in 1.5 million dollars a day in new revenue, that is $2 billion a year, 38% addition to annual revenue. analysts see as much as $4 million a extra. facebook is late to the party. video ads have been running on website more than a

decade. facebook started with no ads because the main goal was to link all either leanings to generate no profit. i say with video ads, they will balk less because we like to watch. lori: is that true though? if this is the way it is going we're be captive audience to advertise means to look at news feed? >> yes. it will start rolling with no sound. either click it shut it down or listen up. >> you can click to shut it down. >> yeah. "wall street journal" putting automatic video rolls on its website. if you say close video player. melissa: i might do it every time. >> i pretty much do. i always watch fox biz so the other video is just wrong. this is good move for video facebook. video ads, once they broke the barrier to do display ads at all which is anathema, everyone complained no one complains. twitter started doing ads and people squawked. twit twitter brings in hundreds of millions of dollars. lori: does the advertiser

pay facebook if you click off the ad? how does that work? >> that will be knew, i think you have to click on watch to pay. more of a search ad. search ads only pay when you click on it versus display ad. even though certain percentage of ads don't get on the screen. they're down below. advertisers end up paying for them. lori: don't go far. want you to weigh in on the next story. >> oh, yeah. lori: want to give your paycheck a boost? of course simple as shortening your first name. a new study by the online jobs site, the ladders, every additional letter in employee's first name reduce his or her annual salary by $3600. melissa: what? lori: the ladder survey was based on data from six million of its members, testing 24 pairs of name, steve versus steven or sara with an h versus sara without an h. of those tested lawrence was only name in the entire study that paid more having

five more than five letters. melissa: i know a loaded lawrence. that makes sense. lori: conducting the study, eight of the top ten names for mail executive positions have five letters for fewer. most popular c suite names were bob, bill, and lawrence. melissa: changing my name to dollar sign. >> or mel. lori: you think it takes less time to say, we're offers neighbors. i think, d. i never say dennis. >> names like --, the oscar-nominated child actress and chitikwa as name dirk or spike. call me den, and make i get a raise out of that. lori: that's what i'm saying. >> there you go. melissa: coming up on "money," speaker of the house john boehner sit down with our own rich edson discussing the economy, the keystone pipeline and his relationship with president obama and where it stands right now. that is 5:00 p.m. eastern here on fox business.

don't miss it. if my name is just dollar sign how will you pronounce it. lori: cha-ching. does it for us. melissa: perfect. lori: coming up, -- i don't know what would you call me? i feel like -- [inaudible] oil is pulling back after three days of gains with the u.s., production rising and consumption falling. you know it is time for tracy and ashley. wheels have totally come off the 1:00 hour of "markets now". jack girard is tracy and ashley's guest. stick around. uh, i'm in a timeout because apparently

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with google voice search that understands you the first time. just $49.99. hurry in, sale ends may 12th. powerful devices. powerful network. verizon. ashley: welcome back, everybody. i'm ashley webster. tracy: i'm tracy byrnes. a new cyber threat. the felt bi and homeland security warning of possible hack attacks against business, government and your money. former fbi assistant director sean henry tells us

what we need to do to just stop these once and for all. ashley: another record high for the dow and s&p. here we go again. we'll hear from one strategist who says this market has plenty of room to run thanks to some really decent valuation. >> oil pulling back after december gains with u.s. production rising an consumption falling. could they be headed higher? i'm not feeling it. we'll have the ceo and president jack girard. fingers crossed. ashley: we're heading into the summer traditionally. top of the hour. time for these report breaking stocks. nicole petallides on the floor of the nyse as we do every 15 minutes. the dow trading near session highs. >> it absolutely is. 15,050 is the highest point. day. we're less than five points away from that level, ashley and tracy. dow jones, let's start with that, up about half a percent. the s&p 500 up half 1%. and the tech-heavy nasdaq moved into the green

territory and remaining there, up about .1 of 1%. that being said i want to get to a mover have, looking at fossil. their first quarter numbers came in. their earnings rose 24%. they partly had that gain because of a joint venture but you can see the stock is up significantly, up about 10%. and certainly a win are year-to-date as well, up almost 20% this year. obviously the fashion accessory retailer is having a great day as their sales continue to improve. back to you. ashley: impressive. nicole, thanks very much. tracy: all right. s&p is on track for its 10th record close this year. our next guest says it could gain another 10% before the year is over. milton mezrati, senior market strategist at lord abbett. how do we get there? another 10% puts us over 1700? >> it is quite possible. it sounds like a ridiculous number because we've been languishing below our highs for so long and a lot of people are scared because the market made tremendous

gains in a relatively short period of time. but when i look at the valuations and we see the federal reserve will continue to pour liquidity on us, 10% is actually very easy when you get down to a sharp pencil or careful computer program to the actual numbers. tracy: but you weren't happy with the unemployment report, right? basically it was better than the last one which is where the bar is right now. expectations are the same going into the summer? >> i think expectations are, there is two things going on. one is that the best expectations are for continued muddle. this continued limping along in the economy. tracy: yeah. >> which means the market is vulnerable to upside surprise. we don't think it will get that. but it means that the market is pretty well braced for bad news or at least mediocre news. we will continue to have support from the federal reserve and the valuations, whether you look at the market, relative to history, relative to bonds, still looks attractive. tracy: that is actually comforting to me because my birthday is in august.

the last few augusts have really seen the market tumble especially with the debt ceiling debates and things like that. so you're saying we're actually positioned to handle whatever washington throws at us? >> well, not everything. obviously they're very good at throwing us curves but what looks like the republicans have funded the government through the end of the fiscal year. the, it looks like these manufactured crises which we had in the first quarter have gone away. we're expecting muddle and mediocrity from washington. it's not exciting. it its not positive but certainly is not the markets worst fears. it is possible to get a curve thrown at us. a string of bad statistics could bring the market to some sort of a correction but the fundamentals all look up. tracy: god willing everything is somewhat under control. let's talk about housing a little bit. seems that we're on the road to recovery. do you agree? >> well, i think it is recovering. i think some of the numbers we've been seeing exaggerate the degree of the recovery

ore the speed of the recovery. builders have been building, new construction has been running about twice as fast as new sales, excuse me, three times as fast as new sales. tracy: sure. >> so there's probably going to be some kind of a pause in the new construction. really it is kind of a midterm correction. we think housing is back but it will be a long, slow, slog. not the bounce off the bottom that some of the headlines are suggesting. >> seems to be the overall theme, right? everything is slogging along including the dollar these days. what are your thoughts on where the dollar goes? >> i think the dollar can probably make some headway. the japanese of course are trying very hard to depress their yen relative to the dollar and every other currency and seem to be succeeding. the europeans don't seem to have a new crisis on the horizon but there is always one. our guess is that the dollar will make moderate gains against the euro, the yen and, probably lose a little bit against the emerging market currencies over the foreseeable future.

tracy: presuming we muddle along, you know, so many people are still on the sidelines, let's get them in this market. i know you say consumer discretionary, industrials and tech over utilities and pharma these days. how come? >> we think, the best leverage, both in terms of value and in terms of a positive surprise will be with the most economically sensitive second, to. and that's the consumer discretionary, over the staples, the industrials and tech over the utilities and the pharma which tend to be places to hide in a bad market. tracy: milton he is rought at this, your -- ezrati's your lips to god's ears. we hope we have a nice calm summer. we'll talk to you soon. >> thank you. ashley: all right. well the pentagon is openly blasting china for hacking into u.s. government computer systems, prompting a harsh denial from the chinese. with more on this story, emac, liz macdonald with emac's bottom line. chinese.go again.

>> the first explicit statement from the pentagon saying essentially china is breaking into u.s. government computers and what are they looking for? they're getting information that they're looking for satellite technology, drone technology and also policy as well as software and here is david helsy, a top pentagon official overseeing east asia and he is basically saying, yes, china is intruding into u.s. government computers. here is david. >> numerous computer systems around the world including those owned by the united states government continue, continue to be targeted for intrusions. some of which appear to be attributable directly to prc government and military organizations. >> so we're talking lockheed martin and another company, kinetiq has been hacked for three years. that is the report that is out there. this comes as the president is trying to pivot to east asia. let me tell you something. there are 141 companies here

in the united states have been hacked since 2006. apparently at least four networks uncovered in shanghai doing the hacking. china know is hotly denying, hotly denying the pentagon annual report. here is what china saying calling the pentagon's analysis, quote, harmful. they're saying it is unwise and groundless. they're saying this is cold war thinking, zero sum mentality. but i got to tell you something, our companies here in the united states are reporting that this is going on and going on for a while, for at least seven years or more. it comes at a time when china is reportedly low balling the dollar amount spent on its military upgrades, 114 billion. now the thinking i is double that. that china's expenditures for the military $250 billion. that is fraction of u.s. spending on military. tracy: unwise. that is a little scary. ashley: that means we've been caught. emac, thank you very much. >> sure. ashley: our next guest says the government isn't doing enough to combat these cyberthreats against our

military, banks and businesses. joining us now, sean henry, former fbi executive assistant director, now president of crowd strike services. sean, thanks for joining us. look, we've known about these threats for a long time. so why aren't we doing enough? >> yeah, you know the pentagon report is really, it is quite amazing. it has taken this long for this to come out publicly like this. certainly the private sector has known about these attacks for such a long time. i think what's critical to do is, for the government to really define what the red lines are. and that starts with a strong debate with the chinese and other nations that are engaged in this type of activity to really define what the red lines are and what happens if you cross those red lines. ashley: also of course, not only china. we have this group a anonymous that can apparently announce what they're going to do with regard to cyber attacks and carry out those attacks at will. allegedly today is the day they will pick up on operation usa.

or op-usa they will pick on banks and businesses. they announce it. almost like a batter going up to the home plate and pointing his bat into the crowd and say i will hit it over there and they dot. >> denial of service attacks are difficult when there is so much data sent at a victim, targeted at a victim. they're very difficult to defend against. when you're looking though at the nation states that are targeting our commercial industry, stealing some of our most sensitive intellectual property, research and development and corporate strategies and recognize chinese companies and other nation companies are getting a competitive advantage putting the united states at a significant disadvantage, certainly impact on the economy and an area where the u.s. government should be stepping up more to have the discussions, to talk about trade sanctions, for example, to talk about policy and economic or diplomatic decisions. ashley: so right down at the consumer level, how concerned should we be that they can access our bank

accounts, take out money, get personal information? or is it just this denial of service, more a case of look, we can do it and we're proving it? >> yeah. so, i really, the concern really should be the exfiltration of data from our government, from our clear defense contractors, from all of our manufacturing, organizations and u.s. commercial space writ large. that to me is a long-term problem for the united states in terms of our competitive advantage and our ability to compete at a national level or an international level economically. that's a significant impact. ashley: is there any way we can totally prevent this. or is this something we have to try to keep up with and try to prevent as best as possible? >> the most significant, most substantial attackers are going to get on a network. our networks are so vast. they ride on inherently insecure infrastructure which is the internet. it is really important for us to identify and detect

when these attacks occur, and infiltrations occur and look to mitigate the consequences from these attacks. right now, the risk to foreign governments, when they steal this data is pretty close because there is no impact on them. ashley: right. >> the benefit is substantially high. until we invert that, that mathematical equation this will go on unabated forever. there have to be sanctions. ashley: consequences. >> implications, absolutely to stop them from attacking. ashley: quickly before i let you go. you were at the fbi. what worries you the most about this situation? what is the biggest, most dangerous aspect of this? >> when you start to think about what some of these countries have done in terms of our financial services sector and from our defense industrial base and what were to happen should they train their resources on our critical infrastructure, and what the implications of that might be, if there were a physical war, for example, or some type of conflict combined with an economic or electronic attack, rather,

how that would be augmented and how that would have an impact on our ability to respond. ashley: all right. frightening stuff. shaun henry with crowd strike services. thank you so much. >> thank you very much. tracy: so interesting because i feel like we're behind the eight ball. ashley: we're trying to catch up. we come up with new technology and hackers are step ahead. or countries i should say, these states, wherever they are. tracy: feel like we should hire the hackers. ashley: i think the fbi does that. it's a tough deal. as shawn said it is almost impossible to stop it entirely. ashley: yep. tracy: still to come the dow and s&p are on track to close at record highs again. we've got less than two hours left in the trading day and we're following all of today's action. >> and oil pulling back after three days of gains with the u.s. boosting production. could oil and gas prices be headed lower this summer? we'll ask american petroleum institute president and ceo jack girard.

first as we do every day at this time let's look how the metals are trading. they are down on the day as the dow and indices again shoot for records. we're seeing commodities and gold moving lower as well as silver and copper. we'll be right back

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tracy: quarter past the hour. we have to check on the markets that are on a tear. nicole petallides on the floor of the new york stock exchange where we go every fifth teen minutes. happy days, nicole. >> these are kind of days where it is worth checking on the markets. dru up 76 points right now near session highs. those looking for 15,000 and hoping to hold onto it, so far so good. let's look at two names on the move. we're starting off with electronic arts news here with walt disney. they signed a multiyear licensing deal. the terms of the deal haven't been disclosed. basically the deal, videogame publisher electronic arts will develop

games for mobile device, pc, consoles based on "star wars" movies. electronic arts is up about one-third of 1% with disney. we're finding out that they sold 100 million windows 8 licenses since they launched back in october. not sure they will outpace windows 7 which sold 240 million sales in the first year. they are revamping windows 8. they're going to get that out sooner than later. that is something we'll continue to follow with microsoft as well. tracy: thank you, nicole, we'll see you in 15 minutes. ashley: time to make money, why not with charles payne. this hour he is talking about one of his favorite topics, 3-d printers. look likes someone pulled the trigger literally, charles. we're talking about this for some time. it's been in the headlines. >> it has been in the headlines this week. i amazing i've been talking a long time, pounding the table. first time i discussed on this show, this hour, july 11th, 2012. it is up 40%.

why is the world jumping on it now? you can print a plastic gun with the 3-d printers. obviously handgun laws and we're talking about constitution arguments getting involved in this. safety issues, particularly after the boston bombing and having gotten some things off of that. ashley: right. >> this industry which could be a $9 billion industry in the next ten years all of that stuff comes colliding together. i find it to be very, very interesting. and, a little unfortunate. i hope the whole 3-d thing doesn't get held up in the tracks. it is truly exciting. forgetting about the gun thing. someone sent me something pretty cool today. an ear, an ear actually made with a hearing aid and you have the actual ear itself. it was a little bit crude but we have picture of it. take a look at that. ashley: that was done through 3-d printing? >> 3-d printing. ear part, ink the substance used to print. it was hydro jell cells in

silver nano particles. tracy: that is so cool. my daughter read something in science they're making shells for hermit crabs, 3-d printing, applications are limitless. >> applications are limitless. tracy: would you buy it now? >> we took profits on any dip i'm buying it back. it is extraordinarily volatile because the hype is ahead of fundamentals. this is something you can't let get off the radar. gun and fact that staples would start selling them i don't have a lot of confidence that the first version staples sell will make people excited about the space. think bigger things. that's all i can tell you. tracy: think about the hermit crabs. we're saving the hermit crabs, charles. >> hermit crabses and ears. ashley: thank you, charles. tracy: thank you, charles. ashley: lend me your ears. tracy: poor little hermit crabs. if you're working late would you rather be getting more money or a day off? we have the latest on a new push by republicans to offer

an alternative to overtime pay. ashley: either would be good. first here is how the dollar is moving right now. it is a mixed day. only the u.k. pound is down against the dollar but the dollar is lagging against all the other currencies including the much talked about euro up to 1.31. we'll be right back. i turned 65 last week. the math of retirent is different today. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it. ishares incomes etfs. low cost and diversified. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing.

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>> at 23 minutes past the hour, hello, everybody, i'm uma pemmaraju with your fox news minute.several gop senatore criticizing the border security provisions included in the new immigration bill. a committee hearing with senior homeland security officials senators argued the immigration legislation can't pass unless border control elements are strengthened. in south carolina former republican governor mark sanford ford says if he loses in today's special election he will not seek office again. sanford is running for a congressional seat against elizabeth colbert bush, the sister of. he disappeared after five days after visiting his mistress in argentina. john kerry is visiting with russian prime minister

vladmir putin. they need to work together to end the ongoing two year conflict in syria. those are a look at the headlines on the fox business network. i'm uma pemmaraju. thank you, tracy. tracy: uma, thank you very much. this doesn't make very good family endinners when brothers and sisters run against each other. but tensions and israel and syria easing up. jeff flock in the pits of the cme where the crude is headed. it better be south, jeff? >> i think it is. everybody seems to agree with that. even scott shellady agrees with that. we have more oil than anytime in what, 82 years. >> it will take something more than a geopolitical event to get something go up underneath this. we'll top out at these levels and just under 100 at best. >> looking at wti , i.e. ia released forecast and sew you the day's number and three month because we had a bit of a gyration. eia forecast, energy

information administration, they forecast wti $93.17 the average in 2013. $92 in 2014. you buy that? >> yeah, i do. i still think that may be a little bit high. remember oil sold off hard with gold and the other commodity as little while ago and recovered due to the fact we had a winter summer blending changeover and due to the geopolitical concern. this will be the high. we'll need something extraordinary to get us through $100 again. >> not only true of wti but brent the same way. look at the numbers on brent, very similar. before we went on the air you said i think we'll run out of corn before we run out of oil. >> we're talking about peak oil and oil situation in the states and energy situation we could run out of corn. we'll have a peak corn problem before we have a peak oil problem. >> fair enough. don't buy oil at least today. tracy: according to scott. jeff flock. thanks very much. ashley: still to come more on the outlook of oil prices we'll hear from the president and ceo of the american petroleum institute

himself, jack girard. we'll see what he has to say about those price. >> fingers crossed on that. as we head out to break though your dow is up 76 points. let's take a look at some of the winners and losers on the s&p 500. fossil as nicole pointed out earlier up 9.7%. somebody is buying watches. we'll be right back. [ male announcer ] $3.95 a trade.

visit us at marsco.com. no trading minim. no share limits. no inactivity fees. go to marsco.com to open your account today. $3.95 a trade. tracy: half past the hour, take a look at the dow 30. we have four stocks hitting 52-week highs. look at disney, disney touching

an all-time high. let's head down to the floor of the new york stock exchange, nicole petallides standing by. nicole: disney all-time high, take a look at some other names. tesla new all-time highs. they are working considering on doing driverless technology, basically an autopilot. working closely with these aspects for google. we will see what is going on with that. jefferies and company raised their price targets now up to $68 from $45 with a buy rating. take a look at teen retailer up 6 and a quarter percent. what is interesting, wells fargo raised it to not performed from a market performance certainly worth watching because they really covered 19 retailers today, some have more risk/reward.

those undervalued had been concerned about the near-term and the payroll taxes and environment overall. this is one of the names that actually liked. back to you. tracy: thank you, we will see you a little bit. ashley: rising tensions in the middle east have helped send oil to the highest level in one month. the bigger oil stories taking place in the u.s. he credits 1 million barrels increases in oil production over the past year to help calm the market fears over supply disruptions from the troubled middle east. joining me now, ceo and president of the institute read thank you for joining us today. we got plenty of oil as far as inventories go. we're always concerned with the middle east, but overall unless we see a huge pickup in the global economy, oil prices should stay down. do you agree?

>> we are seeing two things right now. a good news, bad news story. a little up o word pressure as e economy begins to recover. demand will go up somewhat. the point you just made in the middle east specifically in syria. some of the unknowns they are. what will that bring for the future? the positive stories we are producing more in the u.s., we can produce more and we should focus on that so these other variables become less and less important in the future. ashley: syria not really a player in pumping out the oil. the reason is he was the most important divided, saudi arabia. >> clearly saudi will continue to be a major player, but other dynamics such as relationships with iran and elsewhere, that is where i think has the market a

little concerned right now to wonder now that the israelis have taken some action, what does that mean over the next week or two, over the next month. will there be more unrest or will we calm down getting back to a truer supply and demand market? ashley: you're one of these people who say in oil sufficient very soon, pumping out oil, have a lot of resources. a day that we don't even care what is happening in the middle east with regard to oil production closer than we think? >> i think we will always care about the middle east for a number of geopolitical considerations. however i think the energy equation has become less important as we move ourselves away from reliance on some of those parts of the world and more and more on our own energy security by producing it here domestically. international energy agency indicated they thought we could surpass saudi arabia in the production of oil in seven short

years. and that begins to happen, the geopolitical data will shift dramatically while the middle east will always be important to the united states, the energy question becomes less important, and therefore we are able to deal with that part of the world more on pure foreign affairs standpoint with less consideration about energy. ashley: could we live right now with out opec's oil? >> canada is our number one import partner and a lot of people don't realize that. there are a couple of other issues that demonstrate how important policy is in this consideration and that is the keystone xl pipeline. we could double the canadian import in the next few years, but the keystone xl pipeline is critically important to that to bring some of that oil sand down to the gulf of mexico for there be refined and considered.

the policy matters in this whole equation but we can become energy security in north america if we will keep our focus here and realize we have a bunch of resource here at home. ashley: do we also lack a refinery system? we're going to be able to do what you're talking about, we really need to upgrade our refining system. >> to look at the u.s. refining capacity today, not only is it state-of-the-art on a worldwide basis, but we have adequate capacity. today we are exporting a lot of refined product. we could open those markets up and be more of a global player, thus putting downward pressure on prices, but we have to produce domestically. we can continue to invest, demand, upgrade the refinery capacity, there's looking at the future to make us the epicenter of energy and deal with this on a global scale.

ashley: thank you so much for your insight into this. thank you. >> thank you. tracy: if only. we just need a little help maybe from washington. all right, speaking of washington, if you're working late, we'd rather be compensated in dollars or days? getting private-sector employees a choice in overtime pay and paid time off. gerri willis is here with more. >> this story compounds me. why are the republicans getting involved in the private sector decision of workers and their bosses? secondly if the bosses want to do this, they can already do this. they are saying look, private-sector workers should have the same rights as public sector unionized workers, public sector unionized workers can choose between comp time and overtime pay. nobody in the private sector since around and account every

hour of every hour they work. it doesn't happen that way. tracy: they are admitting government workers are compensated much better than us. an admission of everything we have been saying. >> eric cantor has never worked in the private sector and he doesn't know how it works. does he know the pressure on individual workers to execute on a daily basis? people are not necessarily watch the clock and the private sector. they're sitting down at their desk and doing it. the rhetoric from the g.o.p. know why they're doing this? speak of a house in a bigger, better things to focus on. how about jobs. not how many hours you work. you know what, nobody is talking about this story we're going to talk about tonight.

apparently there's a huge problem with federal inspection of airplanes to the point we could be flirting with disaster here. inspector general report saying oversight of the inspections is horrible, people don't know what is going on. the report are handwritten and turned in. so we're going to be talking about this story with an ntsb official to see what is going on, what the problems are, why this has no allowed to happen because these are domestic and international inspection facilities. tracy: you have got to turn inside 6:00 and 9:00 eastern. ashley: go get a cup of tea, or something stronger. tracy: and other programming note, rich edson will have an interview with house speaker john boehner tonight at 5:00 eastern time on "money" with

melissa francis. you have to tune in with that. ashley: there you go. coming up, may the force be with disney. making "star wars" themed video games but will it be with the earnings which are out after the bell? we will have a preview for you. tracy: and let's take a look at how the 10 and 30-year treasuries are trading. 1.78%. your 30-year at 3% flat. we will be right back.

>> i am adam shapiro with your fox business brief. microsoft is going to update its latest operating system, windows 8, and complaints of confusion and one research firm says cause worldwide drop in pc sales. it doesn't seem to deter buyers of tokyo leum nokia lumina. and a after the phase three clinical trial of the alzheimer's drug failed toeet the primary endpoints. the alzheimer's program approach of careful analysis of the study. according to retail may not.com, nearly seven in 10 americans are more concerned with what it will be giving their moms from other day on what to get dad for father's

that is the latest from the fox business network giving you the power to prosper.

tracy: the walt disney company really is the mouse that roars. hitting 28 all-time highs this year. the earnings coming after the bell today. dennis kneale has the rundown. ashley: cannonballs keep up the momentum? looking for robust results of the second quarter, but more importantly raising outlook for the current quarter, and full year. getting a little cocky as ironman three approaches $700 million at the box office in two weeks. wall street looking for $1.4 billion in quarterly net income in $0.77 in earnings per share. 33% over a year ago. extraordinary bump on a billion dollar space. that forecast is up $0.02 per share in recent weeks. wall street will be looking for

signs of growth in the espn cable business and disney theme parks. ad revenue a signal of how businesses are feeling and theme park revenue into how consumers are feeling. searching for signs of improvement, the abc network ranks fourth in viewers showing signs of life with modern family. there is a disney movie business which the ceo soaked up with great acquisitions, pixar, marvel and latest lucas films has ironman three rocketing $2 billion box office. and the upside will. the current quarter and thereafter. an extraordinary run, up 48% in the past year could hit 29th all-time high today. rising above $65 today up almost 1%. and 30% also since the start of the year. a big test comes after the bell today. started to backtrack if only because they have been roaring

out for so long. i think the company special looking at the ongoing films, they have this interlocking super sequel strategy they have talked about. tracy: parents are suckers for stuffed mickey mouse things. ashley: thank you very much. time for stocks as we do every 15 minutes. the new york stock exchange, joining us now every analyst we have had on says there's always room to the upside, these equities, the valuations are pretty decent, they are reasonable, would you agree? >> i totally would agree. quite frankly i go back to 2008. if you like stocks in 2008 when the companies were built on a house of cards as the economy has turned out in hindsight you have to love them here because

everybody has their ducks in a row, earnings might be a little tepid for some people but nothing but upside. ashley: it is a buying opportunity, do you agree? speak i think depending on where you stand in terms of your risk tolerance, i would much rather buy on the way up there on the way down because it is very tough to catch a falling knife, as they say. down is a dangerous game. hank greenberg once said basically if you average down come he can be a larger shareholder of nothing. ashley: thank you so much. we appreciate it. shareholder of nothing. tracy: still to come, what one expert says this is a rare time for the real estate market in

how the good times will last. ashley: take a look at some of the winners and losers on the nasdaq. good day for that stock. we will be right back.

tracy: the average rate for 30-year mortgages near an near an all-time low at 3.35% according to freddie mac. our next guest says that these levels rates are helping to make the housing market. president of john b. levy and company joins us now.

if they are so low, why is it so hard to get this money? >> i think banks are listening up. they have loosened credit standards. it is not quite as fast as we might like it, but it is ridiculous than good day with 2.5% adjustable-rate home mortgages. the fed is paying you to buy a house at a screening costs. the real question is how do we get let down gently. right now at a 10-year, nobody alive in business today it is ever based on a treasury 1.65%. we are all in a new world did i think the finale is not here yet. tracy: you can't fight it, you have to be in it.

you have to participate. one of the things you are saying is the single-family housing market is doing better actually helping the commercial market in some way. we go to strip malls. >> any time you buy a new house somebody going to home depot and best buy, going to wal-mart to bring in new furniture, new equipment, and new houses are very employment central come it takes a lot of people to buy a new house. every time you buy an existing house, it creates the ability to create a new house. not only want it, but i have buyers for it. there were no buyers. i think for some reason the

spring came, okay, it is now time to turn. tracy: what is happening? strip malls, condos, what is going on in your world? >> where we are is commercial money, residential three and a half, 30 years. commercial 4% or less. what the fed is helping you to do, by all you can, borrow all you can, and what you see is more and more people getting up product. investing in san francisco, chicago, new york, boston. that game is over, but it makes sense to move to smaller cities where there hasn't been nearly as much money or as much overpayment. tracy: we are seeing home prices go up and that indirectly helps the state. >> it does.

home prices in washington, d.c., up 9 or 10% over the last year. where that is helping the status property taxes are all based on housing values. you have to admit them next week. the other thing that could be happening in many locations, texas have been going down, if they haven't bottomed, they will certainly go back up, that is good for localities. tracy: basically it is all good right now. housing prices are still 20% below the peak, so it is not like you're buying overpriced product. it is underpriced product at a low cost of acquisition.

tracy: thank you. >> always a pleasure. tracy: this friday all day on fox business will be looking at the business of real estate. ashley: "countdown to the closing bell" coming up next. cheryl casone filling in for liz claman. cheryl casone has that and all the stocks rake new highs today i had on "countdown to the closing bell." all stations come over to mission a for a final go.

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volatile currency called bitcoin, and the u.s. government is considering to regulate. we're talking to the man who will lead the effort. how to work and play like a millionaire. believe it or not, there are apps for that. we'll show you what the jet set crowd can't live without, and "countdown to the closing bell" starts right now. ♪ cheryl: i'm cheryl casone in for liz claman, the last hour of trading, another day, another spool of record, or at least the markets hold where they are at now, the fourth consecutive record close for s&p and 10th so far this year. there's the techs as you see, at 1625. some of the stocks behind the rally hitting all-time highs, names like directtv, starbucks,