♪ neil: get ready. you see what is happening with stocks, the record think, the dow 15,000 thing, the dow and s&p up north of 14% this year. stocks being the end all, everything think. don't look now, but the president is setting his sights on jobs to be the next big thing. all because of him. welcome. i'm neil cavuto. don't mess with a bull on a rampage. don't mess with a state on an economic rampage. the president not only impressed with both. he is taking credit for both because -- nice work if you can get it -- go to the state gets it done on jobs and take about four as well. nice of you if you're the

president of the united states setting out to texas. let's not forget what created this jobs boom in texas. now, the details are a little different than the presidency because there not the president's policies, more like the governor's policies, not regulation having washington, anything but austin. that is why the president's taking his job toward taxes. critics in his own party fear the bat optics of such a move, but i commend it, maybe for all the wrong reasons. president is doing the right thing in going to the right place. he may not get credit, but if he will take credit that it is happening. fact that he is there and all says clearly wants what is going on in taxes to ruboff in other states fall states. bad of picks, maybe to some politically, but if any of the state programs and policies rub off on the president, good for the nation economically, good for the stock market perpetually but there is more to this than what meets the eye because

forget don't mess with texas. why they want to see taxes mess with the president. in know, what really is behind this? >> my gosh. this is so obvious. this is obama and his administration wanting and even thinking that texas could go blue. texas is red, and texas is a shining example of what good government and the policies, the kind that the governor rick perry set up, which, by the way, i think this goes deeper because rick perry, and has been a very big raw milk that he may make an announcement to where he may seek reelection -- of presidential. neil: the last around not go too well. >> but is given a little bit of practice. good government that they have. this is an example of what it would be like to have good gop government. neil: you could make an argument at the president benefit appreciably from states run by republican governors, democrats. i would say, that's not fair,

but the fact of the matter is, the state that he won, ohio, wisconsin, florida, they were all benefiting from republican- led turnarounds'. this is what republican governors will tell you. if you can latch onto whatever success. seven in texas, his policies and the president's policies, so be it. >> exactly. i think that is right on. think about it is like. a tale of two states. affected by both national policy in state policy. the president is going to texas with a state policy that contrasts with his national policy. but it has an unemployment rate that is below the national average. why doesn't he get to california a state that has a national -- a state policy that is very similar to the presidents. i regulation, tax and an un panera of 9%, series using a state that contrasts with them policy was to get to, and not a state in california which is not doing nearly as well, which is more in line with the policies he is pursuing and national

level. neil: you know, since every president is the blame for a bad stock market, naturally they would take about four get along, even though presidents have little direct impact on that save those who have john dropping fiscal policies that lead to this. you can make be argued from reagan, clinton began of but this one. having said that, no harm no foul in taking -- trying to do the same for the texas jobs. >> i don't think so. >> it will work, but obviously most people don't understand it. one sixth of all the jobs were created were created right there in the city taxes. the reason why was because of smart regulations, lowering them back, 01 gun tax, zero corporate tax and at the end of the day folks mtv really should go on a bill which located its office in texas and look at rick perry's economic development plan. no secret elixir, but wide open for business. just me, the presentees understand the reason why texas is booming is because of the

entasis of his policies. >> remembered welfare and all that. perpetuated by republicans. yet the credit for it. >> in my opinion clinton reaped the benefits of ergonomics. anyone could have sat in that seat and watch the economy's about. >> federal programs. neil: he took credit for the unemployment rate coming down in florida, the election. wisconsin. all states. >> they don't buy that. neil: de think this is an attempt to make it public? >> detectives goes blew the gop is pretty much done.

the staple of the republican party. when i raise national funds one of the first stop sign do is i go to texas. they have some of the largest donors, red white and blue and republican base. so they know how an economy works. let's face it, republicans have great principles. they have great economic define the policy makes sense. it is the moral deal that is getting the democrats versus the republicans, and the democrats did not have anything economically that is sound makes good sense it. they have to go on these other garnishees to try to -- neil: they're going to. i guess what i am asking you, on this stuff 15,000 plus. it has essentially doubled under this president's stewardship. a lot of reasons for this. but isn't that something he is going to say, companies are making money, companies are doing better, earning more, investors. but ironically that is creating more of this wealth gap that he

originally campaigned against and said he would fix. he is in a bit of a pickle and ask and is seen at? >> he is a little bit. have to look at what he will go down in campaign in texas for. on one hand he will go there and campaign for a lot of the things he mentioned in this to the union, which he has so far basically ignored, including raising the minimum wage above 9%. that kind of addresses that wealth gap, but on the other hand, that is not going to help the national economy. they think will hurt the national economy, especially youth unemployment which is already very high to begin with. neil: we shall see. in the meantime, he is the guy going to texas. that was not by accidents. there might be texans out there who resented and find that, you know, he is the wrong person showing a been a wrong place to argue about the wrong bragging rights, but nevertheless he is going there. what is the fallout from all of that? >> well, you know, it tells you that the president really does not have a plan to create jobs.

he needs to understand that the best way to create jobs is by fostering an environment that is going to promote job and economic growth and that is one rick perry's doing. the reason why he wants to go down there and talk it is not just because it is booming, but it is a minority majority stake. as a native texan i welcome in down there, please do not take credit for something you didn't do. >> my word in a national for obama going to texas' thinking that he can fool everybody is good luck with that. neil: okay. guys, thank you very much. you know, i never know where noel stance. anyway, remember when chris christie singled out john for dragging his heels on and sandra relief bill. >> only one group to blame for the continued suffering of these innocent victims, the house majority and their speaker, john maynard. neil: he was wrong in the speaker was right. over the top and is now just coming to light. ♪ i upgraded your smart phone.

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♪ neil: all right. here we go again, another closing high, another milestone, although this one did take a while. the dow has never been better than it is right now. why are people feeling better? in 20 minutes, why stocks are jumping, but lots of folks are not exactly jumping for joy. in the meantime, i always thought that 16 billion send a little high for hurricanes and the damage. governors like new jersey's chris christie were in such a rush to get it out that they never stop to consider why some republicans on capitol hill were so focused on what their colleagues were sticking in and not just those colleagues in washington. news -- new york governor andrew cuomo is using $140 million in san the aid for commercials, luring businesses to come to new york. no wonder victims are feeling victimized all over again. can you blame them?

scott, you saw that and about what? >> it is amazing. it is outrageous, first of all, because there are thousands of people still without their homes. you have taking money it could be used for the people, and rebuild their homes and putting it adds up for businesses to come back. when the world trade center is finally build and to the show from nbc comes, the tonight show, you will start having business comeback. leave the damn money alone. i was told that it is going to take me $10,000 a put to raise my house. i could do 10 feet. that is 100,000. at $145 million could do 1,475 homes could be lifted and put proper. 1,000 board 75 homes. this guy wants to put advertisements out there to bring business in? you need the people here first before you can bring businesses. wake up. we need to be here first. you know what, businesses and not going to do any good of the

people a year. neil: the people have wondered. what do you think? was thinking with this money, there was plenty of other untold millions that was spent on repaving and retelling a wreath at the smithsonian museum in washington. nowhere near the hurricane passed. on and on and on it wind and continues to go. >> right away. is he kidding jackson many good things to spend the money on. my business is on the shoreline. three different businesses. so many different businesses that are struggling every they cannot get by. they cannot open. this happened six months ago. come on. he think you're going to make loans easy to get? you can get a loan. nearly impossible. you can't get funding. you can't open your place. what about the businesses that are there? what about these people? what about me. thank god i am a saver. i say for rainy day. i am places back open. i cannot see this bringing new people in business in, create

new jobs. what about the people that cannot go to work? it is terrible. neil: i was also thinking in your case when you're telling about the bureaucracy, the hoops have to get to the get the money that has been channeled to folks like use on stored destroyed and it is almost to the point where you just cannot get it. it is there in front of you, but you just cannot get it. >> it is too much red tape. they keep telling you. neil: give me an example. >> all right. like you said, tried to get a loan. trying to get money from fema. i get my insurance money for my insurance company, but i have to give it to bank of america to hold until i finish my house of 100 percent. is that crazy? where my getting my money? neil: bank of america will give it to you until that is done. >> until my house is 100 percent. neil: they are benefiting from this. >> they want to hold it and make interest on my money that i paid the premiums. it in a fork. i lost contests. i'm not covered 1 penny for it. but only the other day the fp --

fd people call me and said there finally going to a purview. six months later. you're up here, but we need the proof of what you lost. cookies receipts for their stuff effect of destroyed to back you know, where am i getting all the stuff? you know what, making it hard. they don't want the victim's back home. starting to really believe they don't want us back home in our homes. i think they want to take these for other purposes. i think the government, andrew cuomo himself, they have that damn election this year. they want to legalize casinos. waterfront property. let's get homeowners out and build casinos. neil: i hope you're wrong, but that has come up. the governor's people say that is not the case, but your point is well taken. one thing i want to ask you on this. you hear this $60 billion that was, you know, sent to effected states like new jersey and certainly like york. did any of that gate to you?

did any of that get to your -- the people who are directly -- >> the bad thing is, they tell you they're going to give you these loans. >> nothing. >> if you had andrew cuomo in front of you right now. >> you have to do it for your people. >> you are paid by the members and the people of new york state , the storeowner, homeowner, middle-class, poor, rich, not for your own personal gain. you need to put that money back,

say goodbye and get out of office. only to run for president because i could tell you, you don't put it back in the keep messing with the american people , i will be on the news telling them what you did as a victim of sandy. neil: all right. very happy. think you both very much. hang in there. all right. now we know this guy is running. his waist is shrinking. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]

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neil: new jersey governor chris christie said he it it gar the kids, but not a white house run in four years. the governor had weight loss surgery sunday to get fit for a presidential run, but first things first, get reelected

governor of new jersey this fall, and he certainly got the cash to do that, more than $6 million raisedded thus far as is likely democratic opponent is having trouble getting the maximum matching federal funds which she desperately needs now. no wonder christie's not so fat, but very happy now. lloyd weber, and peter, hadley what's going on here? >> listen, every time i hear this story, first reaction, gut reaction is to lament that we don't focus on the issues. how has he governed? legislate? you know, what office is he running for? that's what voters should be weighing rather than looking at the waistband, but, of course, image has a lot to do with politics and be real realistic t that. the by product of the surgery, ultimately for health, is good for politics as well. neil: what do you think? >> i'm here to say the word "obesity," to you, neil. neil: i love when you say "obesity" because you make it seem almost like an endearing

physical state. >> well, chris christie is endearing, hats off to tackling obesity. if he had not, had not done this, his medical records would have been like romney's tax returns in the last presidential election. it would have been a problem. added to which a 350-pound man on the campaign trail, the presidential campaign trail is rigorous, tough. neil: taft got through; right? >> modern era though. neil: right about that. what do you think? >> it's not entirely necessary to bring politics into it, at least not yet. you know, christie probably wants to be president so he seems to sort of act like it. he probably -- he seems like he wants to lose weight, but i'm not sure he wants to lose weight in order to be president. >> no, no, you know knowing enough about the families and kids, any father, mother, anyone would want to be around for the kids. i take that at face value. one of the things i say, though, it is better to be in inviting

shape than not running for president. image is one, dead on, and not just because you say obesity so well. >> obesity. neil: thank you. it is a rigorous process now. we've gone through on the primary to now constantly running virtually two years at a minimum nonstop for the job, all physically grueling, and you have to be up to snuff for it; right? >> right. you know, a better predicter of a candidate's success is not the size of the waist, but the size of the funding, which he has a lot of backing, been popular, and americans, themselves, struggled with weight, with weight loss, and so in some ways, this story just makes him more relatable as a politician. i hope people recognize that, you know, beyond the vanity of politics, it may represent someone taking responsibility in their own health care not blaming soda or big sugar, salt, or mcdonald's, but recognizing

his ultimately his responsibility. neil: he always said that, battled it for 20 years, i've lost it many times, not blaming it on anyone, but, i guess what i'm asking is do you think he's less appealing to a lot of folks -- like winston churchill like a thin waist; right? he carried, i thought more as a big guy, and to hear the stories when he visited fdr at the white house, rolling around the family mansion in the nude. i don't want to picture what that was like. >> where are we? neil: no, no, you heard the stories; right? do people feel the same about him? >> i think fundamentally, the struggle w's weight makes him relatable and responsible. obesity is a public health care catastrophe. neil: still popular as a thin and fit christie? >> absolutely. neil: really, peter, you buy that? >> it's not clear whether he's

going to be a thin fit christie or a less heavy christie. neil: i don't know. it would be like if santa claus had a richard simmons workout. >> still a lot of heft, a lot of -- you know, a lot of power behind the words. neil: doesn't matter. >> i think he still will, yes. neil: you agree with that? >> yeah i take him at his word saying he's doing it for the benefit of the health and family and longevity. i think that sets a good example for a lot of americans who struggled with weight for a long time, and healthy americans struggle with weights weight. look, regardless of the political cons imenses, good for him, bad for him, whether he's going to be a medium sized or small christie, ultimately, take him at the word saying it's for the health. neil: you agree? >> i do, absolutely. fundamentally, the biggest problem is not going to be obesity or hillary clinton in 2016, but the republican party, and, actually, winning that nomination because for some

reason, they demand ideological purity, and face it, kris he shd be embraced, but he's not invited to cpac. kneel they'll that's right. obesity had nothing to do with it. >> exactly, nothing. neil: thank you, all, very much. barak obama's watergate? why huckabee says it's just as bad with the same end resulting. ♪

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♪ neil: deja vu all over again, nixon, watergate did him in, and two years later, forced him out. mike huckabee says another scandal befuddling another president says it could be the same way, benghazi will do this this president what water gate did to that president, forcing him to be a former president before the term is up. governor, you think that's likely? >> neil, i think it is very possible, and if he's not forced to be resigned or impeached and tried by the senate, there's a possibility he'll be damaged by the revelations of benghazi, that he will be not just a lame duck, but a dead duck when it comes to being able to govern. this is a far more serious situation, i think, than what the press would like to believe it is, but when you have people

all the way to the top who knew there were cries for help coming out of the embassy and ambassador pleading to be assistance, and nobody moved, the revelations that start tomorrow, i think, are going to be very, very damaging up and down the administration. neil: you know, governor, i would say that you're right in the respect that there's a lot here that the media should pounce on, but a zeal, a relevance to go after nixon, i don't know, at least at this appointment, if there's the same enthusiasm to go after this president. >> well, no, they don't have the same enthusiasm to go after him, and, true, the media wanted to bring mixon down, that's unquestionable, but there's going to be issues here that are different than water gate, and water gate, it was essentially a third rate bungled burglarly, that was the narrative, in the election year, but turned out, the real crime was not the burglarly itself.

it was the lies and coverup, and in this case, we have lies and coverups, but we have something else. we have four dead americans including a u.s. ambassador, and if the testimony shows that they were giving plenty of warning, that there was reason to believe that al-qaeda was present, if they begged for their lives the night of the murders, and this was treated as something that was not politically helpful, then i just don't see even the press who love him, how can they ignore this? you know, we never found out exactly what was the president doing that night? it was not that he, you know, was overly engrossed in it because the next day, he went to the west coast for a fundraising tour. i do think that all of the talk, for example, last week, when the president acted like he had no idea that there were people who were willing to talk and had been told not to, jay carney repeated that. on the face, it's pore postrows, and we'll learn more tomorrow.

neil: there's a lot we don't know. i heard democrats, governor, said the trip to vegas confirms that he didn't know because he certainly wouldn't have gone to vegas. if he did, who knows. there's another issue proving a president lied or distorted something, and that's when it gets a little tricky. you have richard nixon caught on tape, the infamous tapes that did him in. it might not be so easy here. what do you think of that? >> well, i don't think he was foolish enough to install a taping system that records his every utter rains, but there is clearly some phone records at the white house, the question is how much of the material is going to be able to come forth and we don't know, but for the president to say for 17 days that this was the result of a spoon tape yows mob that just popped up and just happened to have an their shoulders some rocket power propel grenades, that, in itself, is laughable on

its face, and for them to continue to trot out the u.n. ambassador saying it was a reaction to a video, now we know, from inside some of the documents, that, frankly, fox news staff did a great job in reporting. neil: well, now, only -- >> from the very beginning. neil: other news organizations -- but a lot depends on the first whistle-blower to be credible; right? cotom across as someone who is evidence and words will be damming; right? >> well, it is, and these are people who are career civil service people, not political appointees, but the mechanics, the people don't care who if it's a ford or chevrolet, they work on it, not sell it. that's what the folks do. i think they are going to show their outrage and their absolute disdain that knob asked them to come forward early on. >> interesting, governor, we'll watch closely, thank you. >> thank you, neil. neil: mike huckabee.

may the 4th never leave us because if you hear what disney electronics arts are planning, you'd think "star wars" just started coming out now. ♪ we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a t of us have known someo who lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ very logical thinker. (laugh i'm telling yoright now, the girl back at home would absolutely not have taken a zip line in the jule. (screams)

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others, because of our reputation for reliability. or maybe it's because we've received jd power and associates' customer service award 4x in a row. in the end, there are countless reasons. but one choice. neil: r2d, what you going to do? make money hand over, that's what you do. never mind the "star wars" franchise decades old and about to get a revamping back to the future now leading off the blitz tonight. dennis, first off, what do you think of this? better than expected earnings, and also this electronics art, the star wars, what do you think of it? >> >> the mouse that warred, managed 33 # #% growth on a million dollar basis, almost unheard of, especially among

media companies, very impressed, but this deal with electronic arts strikes me because it's something they don't think michael, the predecessor, ever would have done. disney long had a not invented here syndrome. the studio set up because walt felt no one else would do business with him in the 30s and 40 #s, then they buy lucas films, kill the video game, part of lucas film, fire a couple hundred people, and hands the business over to the best video game company in the world showing vision, even though it took a blow to the ego. neil: the game thing, more car war related rides at theme parks, ect., but, again, it's a very old fran franchise, but i guess it's going to work? >> i don't know, respectfully, i have a different opinion. i think the market's getting ahead of themselves, and the gamers few and far between, asking customers who to do next, to me, a sign of weakness, and i

think disney is taking on something they may not be able to digest. >> it's a sign of weakness, keith, when you ask customers what they want? that's a sign of weakness? interesting. >> this that business, i think it is because usually the big successful games are built upon a very carefully predicated set of expectations, the vision, they don't have that vision and launching on the name, and star wars, when the customer base changed and moved beyond core gaming years -- >> but star wars games, as a video game, they never were super successful; right? >> exactly. >> if they were unable to do it, why not team up with electronic arts? neil: better at games, but if lucas couldn't do, tten -- >> that's the point. i think they will accident happen them -- sapp them up. >> we'll see. mew vie lovers staying in, theaters could be out of luck. profit dropping 23% as fewer people go to the movies. this was all pretty, you know, iron man 3, but missing the

mark, netflix is thriving saying the couch potato is back? >> i think the couch poe potatos back in form and theaters dead money. i can't make the case to invest in one. neil: dine-in theaters, like that? >> there's exceptions for the experience and am bee yans, but is that a great investment in that's a different choice, maybe private equity, but massive scales like that, it's not working. >> what do you think? >> the main problem is not the theater business, but hollywood was not making good films bringing people into theaters. box office down 12 #% this year. now a along comes iron man 3, $7 murks million already in two weeks, $175 million open in the u.s., second biggest ever, bringing people to the theaters, not to worry. >> technology is at work. to me, it's a bandwidth to zero issue, there's cost, netflix -- >> yet, nothing like an

experience in the darkness laughing with a bunch of people and -- neil: and shouting on their phones and -- >> this argument was when television came out. >> pick up in college and all that. >> do a better job of running the theaters. we said this when television came out, oh, it's going to kill the theater business. the vcr, it's going to kill the theater, u meanwhile, hit all-time highs. neil: contingent on the strength of the movies out there. that could be hit and miss. >> just do a better job, if you run a theater, make it attractive, serve dhol. >> that'd be great. >> i went to a film in london with dinner, movie, a polite gentleman says, ladies and gentlemen, time to take your seats issue and it was a wonderful experience. neil: really? grow up in beverly hills? in my town, popcorn, butter over there, get it. >> by the way, $22. neil: exactly. microsoft has another window situation on its hands admitting to windows 8 mistakes with tixes

on the way. too late? >> nothing like having a 95% share of the computers in the world to help you matter whether it's too late? and microsoft, the thing that windows franchise, and that's what was going to tear it down. had to stay compatible, but had to update. shift over. i think it made way too much a shift. we went from clicking on poster stamps to using fingers to swipe stuff. neil: you can do both though, unbiased here, i do like windows 8, i do. >> really? neil: yeah because you do both. >> we mate change so much. >> that's right. that prompted this. >> i can't get used to it. it's a legacy product, chuck it or get down to how people use stuff. neil: prefer the older version to this? >> i do. we have not consciously -- dlitly have not updated. i don't like the fact of the point and click and devices are not compatible. neil: resis tent to change as

well as the core base of the people? >> requires retraining, and then the inevitable bugs with every new software, just a pain. for the first time, corporate america said, you know what? i'm not knee jerk upgrading because you told me to, holding off. >> that's a big one because now the corporate user base is just not on auto pilot. >> sometime republican we don't buy new computers every other movant; right? >> windows 1998 here. >> that's right. neil: reliable, good, solid. [laughter] do you think that something microsoft can overcome or something that could be, like, a new coke fiasco? >> tough question. i think they are going to have, as long as balmer runs around, there's a challenge because he's not, i don't think, a visionary. i think if you get a job like personality in there capable of dealing with it -- neil: even bill gates vissonary as much -- >> i think he was a visionary, absolutely. >> more technical, balmer, the salesman. you know, microsoft gets it only

so-so on the first release, always get it right eventually, and that monopoly allows money. >> all the contract base, you know, not only the monopoly, but a lot of contracts. >> con tin yom. >> buy rim, actually, buy blackberry, heavy in corporate accounts, both fat, bloated, troubled companies, less so microsoft, but rim would be great. also -- neil: the x -- >> get a big utility, and that grows; right? >> interesting idea, absolutely. neil: he has tons of them. >>, no i like that. >> i like that. bring him on more. neil: i'm a little discouraged he found windows 8 intimidating, and i'm an idiot, and i got it. when we come back, the s&p, dow, soaring to record highs today, but a new threat, a new threat that could bring them crashing down. it's not debt and taxes here. it could be, could be hackers

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neil: china's scoffing, and the pentagon says the chinese are behind cyber attacks hitting big american companies and big military government installations themselves. china says it has nothing to do with it, but a former bush 43 homeland security secretary and founder of the group not so sure mentioning during the break, secretary, one of the things going on is that we're better at revealing what we're discovering fg -- discovering; right? we discover the chinese are play at that particular timely, flagrantly, and constantly doing this. >> there was a report from a private group a few weeks ago

that actually identified a specific unit of the people's liberation army that was responsible for hacking and spewing ip. the latest report to commerce goes a step further talking bow the risk that the chinese are in our networks, perhaps doing reconnaissance for the possibility of carrying out some kind of malicious attack. if, let's say, get into a hotted adversary situation. that's a recognition. >> what's that mean? things that escalate we come to blow? >> could interview with the infrastructure or distract us. neil: capable of that? >> well, i think this report takes some steps that are precursors to that. doesn't mean they do it, but looking to prepare a reconnaissance and prepare the battlefield. are we capable of fighting back? sure, the most sophisticated defense folks will be able to deal with this. the problem is the weakest link. the critical infrastructure around the country, whether it's financial transportation, water,

power, and if someone is not doing what they need to do to protect the network, it can be cascading in terms of the effect across a large part of the population. i think that is the concern that underlies this latest report to congress. >> here's what worries me, secretary, and it's one thing for terrorist to ram planes into the pentagon, but far more sinister and ominous for a foreign country, a respected foreign country, not some sinister force here, to get into the computers at that punishment -- pentagon and military contractors, and do so what appears to be abandoned over the last, particular year. >> well, the chinese, of course, deny it's them, blaming it on unspecified hackers. neil: do you think it's them? >> this report identifies the government, the private report identifies the people's republic army. now, are they likely to attack

us? very unlikely, and it would be really the culmination of the serious situation. do we have a responsibility to protect ourselves against a remote possibility? yes. do we have to press the chinese, not only on this, but the theft of intellectual property, literally exporting jobs overseas because you take our research and development, you give it to a national champion in china, and then they are able to produce that investment. neil: absolutely, maybe it's because we own so much money? >> because there's american companies doing business in china worried they will be hurt. at some point, there's a speedometer to the country to ensure we don't keep people pilfering our intellectual treasure chest. neil: sir, switching gears, boston, latest things discovered there, russians warning us about these sort of rebels in our midst, and makes you wonder how much more we could have learned

or are learning. what do you think? >> well, i think the key here is going to be what happened when the elder brother, tamerlan tsarnaev, went to russia? there for six months, there's a long history of western muslims going to chechnya or the reason getting radicalized and getting trained and coming back to western europe and some of them becoming terrorists. kneel nemo how -- neil: how many of those here? >> probably a small number, somalia, trained, couple came back, and we ultimately prosecuted them. it's a very small number, but as you can see, with the, you know, the attack in boston, even a small number of people do a significant amount of damage. neil: you know what i noticed, secretary? the delay factor. i mentioned on both shows today, about a visa that was revoked, not getting to the end result at an airport where tamerlan tsarnaev gets back into the country, communication from fbi agents who supposedly had the

guy, talked to the guy, never conveyed that, or if they did, delayed to local boston authorities. this is an issue that i thought we solved with homeland security. >> what we've done, you know, we have a structure now and legal system to allow the exchange of information. it it's now a human issue. people need a sense of urgency. the risk that occurs when you are successful for years is you get bureaucratic routine. they begin to treat as checking the boxes opposed to feeling they have to act as if there's a compelling urgency. i think this is an opportunity to look at what happened, obviously, you know, the department of homeland security, the fbi, tremendously successful over the last ten years and give them a lot of credit, but every time there is a failure like this, there's an opportunity to go back, look and see what didn't work, and whether it's a question of dialing up the urgency or changing protocols. you got to learn the lessons.

neil: quickly, an attack like experienced in boston more attacks now rather than playing it's the route? >> i think al-qaeda 2 # #.0 is beginning to be this kind of attack. we saw that in mumbai, europe, and the good news is that we've chased them out of the catastrophic attacks, but the bad news is there's more targets. neil: man, oh, man, the stuff you've seen and have come compo. thank you, sir. >> thank you, neil. neil: the dow settling above 15,000 for the first time ever, but just guess who is leading the buying parade? not the names you'd think. the boring names you likely forgot. back on all purchases plus a 50% annual bonus. and everyone wants... ♪ 50% more doo wop ♪ 50% more buckarooooooooos ♪ 50% more yeeeaaahhhh!!!! ♪ 50% more yeah yeah [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase,

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call us. we can shoyou how at&t solutions can help you do what you do... even better. ♪ neil: a rally not exactly sexy. the dow and s&p 500 spiking highs today, and, you know, the boring old stocks like the kraft, lowes, union pacific leading the way like revenge of the nerds. ben willis also here.

gary, what do you mean by that? >> well, basically, when i look at the new high list, i'm finding food, drugs, bev rammings, household products, rails, things like that. it's laiden with johnson & johnson and bristol myers. that's happening in the market now, it's not the great, glamour growth name the market is revaluing the companies based on the fed continuing to print money, and i have to tell you, we stopped, we don't know because the fed prints $3 billion to $4 billion. >> that's the driving force, the central banks the driving force for the equity markets. neil: why the cheap beneficiaries dull names, nothing wrong with that. >> no, of course, you think old, unsexy, you called me. neil: hey, i'm the host. what do you think of that? >> first of all, the early participants in the equity market had the utilities, the consumers, and, actually, there's a rotation out of the utilities into the beta names

right now, that had not really participated, but you heard the last guy mention the rail stocks, the rails, again, not sexy story, quite frankly, but you have a stock like ksu, kansas city southern, performing brilliantly, an oracle of omaha knew about the rails and bought himself the company because they participated in the very unsexy oil business in fracking. neil: a precursor of things to come because those stocks do well, gary, and others argue that's good for everybody. do you agree with that? >> neil, normally, and i use the word "normally" loudly, normally, i say, yes, it is the market indicating that going forward, business is going to pick up, the movement of goods is going to pick up, and the economy's going to be strong, but it's not normal times now. central banks are absolutely insane with what they are doing. there is long term repercussions, but right now, the going is good.

i think the economy remains an okay shape and that's all. what you remember about the companies and areas we talk about, they have not done anything in 13 years. remember, we're just moving above 2,000, the year 2000 highs in the stocks, what happened is evaluations came down while there's a little growth picking up, and now the market is in gear with them. i don't know they have a long way to go because the companies have zero growth rates, but others are better like the rails that have decent growth going forward. neil: top line growth, this stuff, revenues, which were not going along with beating earnings expectations, and, in fact, that was tested and more disappointment than normally meets the eye with the attention to other details. how much of a worry is that for you and what type of a leash does it put the market on? >> worried about the strength. the rally in the market is extraordinary. we had a great return on equity in the last four months that we normally don't see for 12 months. that tells you the market is over extended, over bought.

neil: sheer gravity. >> gravity. again, fighting the fed and central banks, japan, the japanese market rallying immensely -- neil: five-year high today. >> exactly, devalued the currency, race to the bottom, eventually, a losing race, but -- so the investors going into equity markets will not retire any time soon if they buy their u.s. treasuries in the safety. there's going to be a huge risk there, so the equity play has been the dividend paying stock. the mass limited partnerships, the real estate investment trust and utility. we've seen those buying powers in the stocks, but, again, recently, the new highs, less sexy names. apple, a great sexy name for a long time and everybody wanted to talk about it at the parties, but those people that own apple are invited to parties, they don't have money to throw them. neil: thank you, guys, very much. we shall see if it continues, but for the meantime, don't bite the tape.

following it all, also reaction to the markets, the benghazi testimony taking up something that fix sated the financial community as well. how big does it get and how much disrupt what we've got? tomorrow. see you then. ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" this gaining new report on safety in e skies. unbelievable shortcomings in airplane maintenance. the dow blows through 15,000, and the market hits another record. how tough fix some simple mistakes that all investors make. also, what is the real cost of immigration reform for the consumerin the overall economy? we are on the case tonight on "the willis report." ♪ gerri: we b