do with something like this, by the way, everyone is outraged by this. stuart: thank you, charles. dagen and connell, it is yours. dagen: oh, my word. i am dagen mcdowell. connell: i am connell mcshane. dagen: the phone records scandal that is putting the department of justice on its ear. connell: the attention of the people bank of china. dagen: money is also cheap. corporate america taking advantage. those stories and so much more coming up on markets now. ♪

connell: didn't i tell you there is plenty to talk about. dagen: oh, my word. connell: let's go to nicole petallides. nicole: the dow is just turning into positive territory. the s&p 500 at record intraday highs. nobody has ever seen these levels on the s&p 500. the nasdaq with an up arrow. back to you. dagen: thank you, nicole. connell: in tolerable and inexcusable. conservative groups and eric

holder will testify on capitol hill in a couple hours on this. they ordered the fbi to investigate this scandal. dagen: joining us to debate, discuss, dig in, a fox news contributor and joseph banister a special agent at the irs. we will start with you first, joseph. how much of this do you see just blatantly illegal? >> quite a bit, actually. i saw that there was at least nine possible disclosure violations. nine applications before they had been approved with a private group, all kinds of treasury

rules of conduct that were no doubt violated. it runs the gamut. there are so many rules and laws that have been violated, it is not even funny. connell: j, let me go to you first to follow up on that. it seems like everyday and today before it is done may be counted in this as well. the scope of this scandal is wider and, i guess, the legal questions are wider a long with it. what do you make of it all? >> the tax exempt group was one of our clients within that group. there are numerous violations, both of the internal revenue manual of existing law including

conspiracy and the fact of the matter is, i do not think this will get better. this is not like a fine wine that will age well. this will get worse as a gift out there. clearly, there was targeting. the irs has confessed that. they made an apology. the apologies is not excepted. secondly, i think this is significant also. the inspector general said the agent in charge with this were not familiar enough with the actual law. that is more than troubling considering these are the agents charged with both of proving these kinds organizations and ultimately, some of them are auditing them. a number of the questions were not only burden the call but a violation of existing law.

dagen: it does not answer who came up with this idea exactly and where did this idea come from and to that this was okay that this was going on. it is an enormous go. 471 groups, apparently, were targeted. that takes a lot of manpower. what i really fear, ultimately what this is doing right now is it is raising the level of distrust among the american people towards the irs. i think something like 15,000 irs agents will be fired.

gardy found out that this group is getting files from six different groups that were confidential. they publicize this information. apparently, there was a pro- marriage group that had its information passed along. that was in the embarrassing for that organization. who knows what kind of sensitive confident information could get out. this question of how high up it goes. it is true at this point that we do not quite know. >> the treasury report indicated that there were dozens and dozens of people involved.

who is thinking of these things. each irs agent takes in all. apparently, they do not even know what it is. these so-called determination unit specialists do not even know the very laws that they are supposed to be evaluating. it is an evil agency. i hope the american people will get up in arms about it. connell: joseph, thank you very much. we talked earlier about how jay carney's job being difficult. how about eric holder. dagen: i have always had this built in petrified fear of the irs. it always seemed so unreasonable and irrational, but not anymore. connell: that is what it has

come down to. dagen: the attorney general is expected to face some tough questions in that congressional hearing. connell: we welcome in peter brooks how far can we take national security concerns over civil liberties. >> i am not a lawyer, i am not a constitutional scholar called but i am a national security expert. this was a very serious leak of information. those leaks of information, this was an ongoing intelligence operation. from what i know from public sources is this was the second underwear bomber case in yemen.

this person was able to penetrate al qaeda. talk about a daring intelligence operation. he was able to get his hands on the bomb and take it away from al qaeda and turn it over to western intelligence services. this was very sensitive information. my expertise is not civil liberties and i am not a lawyer of the law. the fact of the matter is, this was a very serious intelligence brief and whoever was behind this but sources at risk. as a lawyer, how concerned are you by the scope of this. how does it stack up? >> you have a national security issue. i think the verdict is out on this one yet. i do not think we know enough about what happened the subpoenas themselves were very

broad. it certainly sent a chilling impact, a chilling affect to the media. you saw yesterday the media's response to this. there was outrage. before that, you have to determine if there was a significant security breach. the question then was where the subpoenas issued going too far when it went to personal records, outbound calls, inbound calls? i don't think we know enough of the facts yet. i think right now that the verdict is out. it is just too early to tell where this is going. connell: i think to some extent if it happened in isolation, that would be true. there are lingering questions about benghazi. we will talk about this bloomberg story coming up.

>> they seem to be overreaching and it seems to be a threat to civil liberties. we will determine exactly what was leaked and how dangerous it may have been. that poor dr. in pakistan is now locked up for 40 years. it makes it easier for our enemies. dagen: you kind of touched on this, but the threat through all of this is this is what happens when you have a government that grows in size. you do not have anyone who has their checks and balances in place. >> this is a very vivid daily

tutorial to the american people about what we call unlimited government. it is very aggressive into getting into a lot of areas. dagen: finish that thought really quickly. >> look at the two main scandals here. these were self-induced. the government did this to themselves. the only one they have to blame is themselves. they should be held accountable. connell: thank you everybody. dagen: be well. gentlemen, thank you. connell: it is going from bad to worse for bloomberg news. we have been reporting on this all week long from elizabeth macdonald. corporate lending on the rise.

♪

♪ dagen: stocks now and a lot to talk about when it comes to google. nicole: by the way, first of all, it is at 9/11 and change. that is pretty unbelievable watching google get closer and closer to 1000. what is going on. this stock was $250. obviously, there you can see a nice run-up. morgan stanley put a new price target up from 932. they have and over weight rating on google before thank you so much. larry page has vocal cord

paralysis, but nothing else. connell: going from bad to worse for bloomberg news. dagen: word that a senate committee may investigate snooping by bloomberg reporters. elizabeth macdonald has done some of her legit snooping and here is what she has found out. liz: the peoples bank of china now weighing in saying it is concerned about the snooping allegations by bloomberg. the list is growing. the bank of england yesterday said they call this activity reprehensible. the bank of japan and england are the latest entrant to this growing list. here is what china central bank is actually saying.

it is saying it is aware of the situation. it is aware of the matter. we are in a productive dialogue with our clients and other stakeholders regarding this matter. jpmorgan chase is now in serious dialogue over the leaking. this is a real serious issue. bloomberg is still saying that they could not give specific information about individual stock or bond trades, but they can get aggregate information. this is an unfolding story. we will be staying on top of it and bringing you the latest developments as they unfold. connell: thank you. dagen: global companies continue their blending ranch and

borrowers grunting into trillions, tens of trillions of dollars being borrowed. connell: revisiting similar target accusations that have taken place in the past. we will get into that with the judge. first, let's take a look at world currencies and how everyone is faring against the dollar. ♪ are you still sleeping? just wanted to check and make sure that we were on schedule.

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♪ >> 23 minutes past the hour. russia has filed an official protest with the u.s. ambassador over a diplomat russia says is a spy for the cia. he was released to embassy officials. the state department confirms he worked at the embassy. he was ordered to leave the country. troops have launched a new offensive against islamist extremists. nigerian president has acquired a state of emergency and three

nigerian states and says the operation will involve massive the appointment of men and resources. pope print this stopped his vehicle during his weekly general audience, opened a birdcage and released two dogs who soared above st. peter's square. those are your headlines right here on the fox business that were. connell: i am going to do the same thing when i drive my daughter to soccer practice. [ laughter ] connell: in the meantime, companies are taking advantage of all of this easy money. corporations worldwide said to borrow up to $53 trillion by 2017 to fund new growth. joining us right now is michael

thompson, boy, what affect does that have, all of this easy borrowing for companies? >> the world will be different over that same period of time. i think it is kind of interesting. the market really finally woke up. it would amount to what the "wall street journal" reported. i think what is interesting here and what is different is that, as opposed to the way the playbook has usually worked for the fed, where they launch a more long-term approach because they like to telegraph out to market and give a certain level certainty is they will fly by the seat of their pants. they may on a periodic, change course a little bit more. >> at the same time, don't worry

about it. we got this. how do you see the timing play out. that is one thing that john did not know in his reporting. the timing of the exit strategy is not clear. >> i think that is right. it has been a very painfully slow recovery. it is happening and getting deeper. you have to think about qe3. that is really what is being dismantled first. what you see is your home sales on new build about 1 million units. you are kind of back into a normal range. connell: the stocks continue to

do well. the 90s are a good example of this. as long as there is economic activity to substantiate the valuation. stocks will be even more attractive. investors will be looking to benefit from the growth that the stocks will capture. also, potential inflation risks. connell: michael thompson, thank you, sir. thank you for coming in. appreciated. dagen: a portable media consumption device. walt mossberg is here, coming up with his review of audit committee apps. more on the irs investigation. how similar cases from the past will now be drug back into the spotlight. maybe questions will finally be answered. here are some of today's winners on the s&p.

the local

nicole: a little shopping. let's talk about macy's. the stock is up nearly 2%. it is that 48, 32. a nice move therefore macy's. they raised their dividend 25%. they are hitting a new high. really good news there. despite having uncooperative

weather, they have done very well at macy's overall. they have been merchandising to local areas. citigroup upgraded to a buy rating from a neutral. connell: one of our favorite segments of the week. a lot of people think of the ipad as an entertainment service. dagen: watch "game of thrones" until it is troubling. while mossberg is here. you look at a number of these and you put all of these apps do the same test. >> i did. i have to say, i do also watch "game of thrones" i'm not ipad. that is the beauty of it.

i wrote my entire column this week on an ipad. i really wrote this column partly because i got tired of seeing wall street analysts who constantly call the ipad and other tablets media consumption devices. there is nothing wrong with that. we like to consume media, but there are huge numbers of productivity apps in that app store. microsoft does not put microsoft office on the ipad or android or even on their own tablet in a tablet oriented way. they are working on it, but they have not done it. i looked at just four of them. there are more than four of them, actually. you know what the number one all-time paid download, paid app for the ipad is?

it is called pages. it is a word processor. it has been downloaded more than any of the paid versions of angry birds. people do work and product to the on ipad. i took a look at these. i made a very simple word typed document. i made it the same document on each of these that i tested. and then i exported, e-mailed them to myself in word format and looked on windows and mac and the versions of word on their just to see what the fidelity was. in other words, did they come out lookinggright. for the most part, they did. and then i took a 23 page

powerpoint presentation that have been created on a windows pc and powerpoint and saw how it looked on these apps and, you know, it looked good on two of them and not so good on two other ones. there are some issues. there are still some fidelity issues and things like that. if you are going to do a 23 page complicated powerpoint, i still think you should use a pc or a mac. if you are going to do what most people do, the ipad is perfectly good for that. dagen: the excel spreadsheets are just painful. connell: we do not have as much

time as you did in your column. you can get all the details on your column. i will explain one thing. two of these are local on the ipad. they store their files locally. those are i work and back office pro age the. two of the others that i looked at take a different approach. they have an app where you have to be online to use it. it basically takes you to a copy of microsoft office or a clone of microsoft you are trying to manipulate it with touch on the ipad.

the virtue there is because you are looking at a much more full-featured app, a program on a computer, you get many more features and you get better fidelity. those are the basic approaches. connell: fair enough. we will talk to you soon. thank you. dagen: be well, walt mossberg. just 3% down payment. connell: we are live in miami with more on that. phil. >> traditional buyers can again purchase without needing a significant large down payment. for example, $300,000 home, that is 20% down, that equals 60

grand. not everyone has that. things are loosening up. >> we never would have been able to get into a property if it was not 3% down. if we would have saved our money, it would have taken another year and a half to get into a place. >> recalled ten years ago when residential's good side. you could sometimes by with no down payment at all. you see the big drop as the session approached a big hit. residential lending, last year, increase 7% and this year it is expected to increase another 12%.

dagen: there is so much talk about buyers. >> it is starting to share the real estate market with the traditional buyers. a lot more so in the last few years. it is especially true in the bii international markets of l.a., new york and miami. buyers still do dominate when they have a lot of cash. this is a high rise kind of in south beach. it is already have sold. it has not even begun construction. those are not international buyers buying up half of that building so far, but north easterners. dagen: phil, thank you for that. the reason the home ownership rate is the lowest it has been

since 95 is because a lot of these buyers are international or investors buying up multiple properties. connell: this is a real estate report. they were terrific. all of them. digging up the past irs scandals. the judge, andrew napolitano, is coming in to talk to us about that. dagen: the u.s. open. it could end up on cable. why these big money makers are breaking long ties to broadcast outlets. ♪ t with advair, i'm breathing better. so now i can help make this a great block party. ♪ [ male announce ] advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together

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hi. [ baby fussing ] ♪ ♪ >> i am diane macedo with your father's business brief. iaon of homebuilders climbed to 44 from 41 in april. readings below 60 suggest negative sentiment about the housing market. according to the mortgage banks association, activity dropped more than 7%. since the turn of the century, the global cost has reached $2.5 trillion. that is according to the un national strategy. it shows the figure is much

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(announc) scottrade... and investnt companies."tomer loyalty for brokerage ♪ dagen: any reason -- sports broadcasting is at it again. looking to lock up rights to get another premier television event connell: dennis kneale is here. dennis: they are in talks right now to get the u.s. open tennis tournament. it has been on cbs since 1968. espn willing to pay a significant amount of money for that. what is really going on here? first, you have to wonder, can

anyone stop these guys? they reach 115 million people. the president of espn just said he has been doing up front pages for advertisers. they will try to get the u.s. open. let's remember that the mpaa college hoops finals on cbs will start alternating onto cable. dagen: can i ask you a question bush remark do viewers care that it is on cable versus broadcast? dennis: i do not think that they care. i think they are hearing footsteps. they are so big. connell: i know they are building a big set for sports center.

dennis: they are riding high right now. the one thing they are afraid of is senator mccain and the idea of splitting up the cable à la carte. dagen: i just want it all in one place. i does want to be able to go to one channel. connell: we will see you in the next hour of "markets now". dennis: yes. connell: it is looking good out there, baby. let's go to charles payne now and make you a little bit of money. charles: i was thinking 90 million a year at the u.s. open. have you guys been out there? anyway, this company, we have talked about this a million times.

they report after the bell. execution has not been great lately. in the meantime, though, these chinese internet stocks have come over really nicely. the pe ratio is 11. peg ratio is one. i think you used to play hero of the qing dynasty. if you ever pull up, pull up the all-time chart on this thing. it has truly been amazing. that is why i think it is worth owning going into the earnings tonight. you never know what happens with guidance and things like that. connell: charles likes it. charles: you got it. connell: charles, thank you. dagen: thanks, charles.

we are waiting for the testimony of attorney general eric holder. judge andrew napolitano talks to us about the irs scandal and why it could revive, dig up similar issues from the past. connell: first, to some of the winners today, we will go to the losers on the nasdaq. apple is down. a bunch of other ones. dagen: what does that say about you? it was going to be winners and they are losers. connell: i do not know. we will be right back. loser. ♪ for seeing your business in a whole new way. for seeing what cash is coming in and going out... so you can understand every angle of your cash flow- last week, this month, and even next year. for seeing your business's cash flow like never before,

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♪ dagen: the latest irs scandal reviving past allegations now at the agency and even within the administration. connell: the judge joins us from the nation's capital, washington, d.c. a political irs. i know it is outrageous and inexcusable and all of these things, but it is also something we have seen in the past. >> it absolutely is. good morning to you both and thank you for having me here. well, fdr, jfk, lbj, most famously richard nixon and now barack obama use this to torment their enemies. it alone can decide whose tax returns will get audited. whose applications will receive

a higher level of scrutiny. that decision is acceptable and within irs guidelines and federal statutes. it is done for a financial reason. if it is done for a political reason, then, obviously, that is a violation of the constitution. it is not a crime. no one in the irs can be prosecuted or sued for it. leaking information that a taxpayer or potential taxpayer provided to the irs caught someone who wishes that taxpayer bill like a political adversary, that would be criminal. that could form the basis for prosecution. the question is, can the justice department, the chief of which is barack obama, investigate the

irs. dagen: speaking of weeks, back in 2010, the chairman of the council of economic advisers made a statement about coke industries not paying any income taxes. that would not be public information. @he white house insisted that there, the irs promised to follow up the information that was released. we never heard anything about it >> at the time, he was a senior level advisor. a full-time employee of the president of the united states working in the west wing. where would he have gotten that information except from somebody from the irs. it is pretty clear that you cannot investigate yourself. are therr on his people in the irs? absolutely. in a highly politicized

environment like this, one where the president's back is to the wall on this and others, do we really want to trust the department of political justice to investigate one of its own? the common thread is, the government will do whatever it thinks it can get away with politically. the government does not feel constrained by the constitution. the government is concerned with serving the aims of its political allies. that is not what you want in your tax collectors. dagen: no, but we get everything from you that we want and need always. judge, thank you. judge andrew napolitano. >> whatever i am, it is a delight to be on with both of

you. connell: so much love in the room. dagen: remember, too losers make a winner. connell: the soli scandal in washington, the judge is getting into this. it could -- dennis and cheryl are all over that as markets now continues. dagen: more news on housing. an exclusive interview with the ceo of the national homebuilders association. ♪ ♪

[ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves.. futures move first. lrn futures from experienced pros with dedicated chats and daily live webinars. and trade witith papermoney to test-drive the market. ♪ all on thinkorswim. from tdmeritrade. ♪ cheryl: we are fast approaching noon eastern time. hello, everyone. i am cheryl casone. dennis: i am dennis kneale. some were the president could

squander his second term on defending himself from any chargers. we have an expert ahead. cheryl: more good news from the housing sector. we have exclusive interviews with the national association of homebuilders. dennis: going from bad to worse from bloomberg news. they admit they snooped on clients. elizabeth macdonald investigates. that is ahead. cheryl: stocks now. netflix and google both making a lot of news today. nicole: let's start off with google. they traded as high as 9/11 .76. you see it is up to .5% right now.

they upped their rating and they are loving it. i wanted to also take a look here at netflix. a name that we all know and we have watched netflix gaining this year. trading as high as 245 and change. karl icahn just made more. he has gained more than a billion dollars. he purchased 5.5 million shares last year. continuing to make more and more money. cheryl: getting in why that stock is cheap. thank you. looking into the irs targeting conservative groups. blaming ineffective management. rich edson is live from the white house with the latest. it changes every hour.

>> right. now there is a cascade calling for resignation. some calling for continued investigations. this after the inspector general report that came out last evening. the ig report that came out last night said that basically progressive groups applying for tax exempt status had been pushed through. those of conservative groups, there were inappropriate criteria developed for them. some went to election cycles without getting a determination on theirrtax exempt status. they also said they could not specifically determine who had been involved in developing that particular criteria. the irs says the issues have been resolved. they said they disagree with that statement, the inspector general's office said that.

they are intolerable and inexcusable. the federal government must conduct itself in a way that is worthy of the public's trust. that is especially true for the irs. john boehner wants to know who is going to jail. >> someone made a conscious decision to harass and hold up these requests for tax exempt status. i think we need to know who they are, whether they violated the law. clearly, someone violated the law. jeff: up next, hearings on capitol hill. the house oversight and government reform getting pulled it hearings. cheryl: the interim chief of the irs will be in the hot seat.

fascinating stuff. thank you. dennis: will the scandals in washington diver at the white house from focusing on the economy? joining us now we have greg and fox business anchor david. america has never been more add and short attention span. will this blow over in a couple weeks? >> it will last for a long, long time, dennis. there will be dozens of hearings. there is a new regulation every hour or so. secondly, the wildcard here is not the republicans. the wildcard is the democrats. i think a lot of democrats are worried about 2014. they will abandon obama in droves. dennis: we are hoping for tax

reform. we were hoping to work more on the deficit. do you think this will diverge us from getting things like that done in washington? >> i am not so sure that the market will take that as bad news. the less they do inside the beltway seems to be the better. that is seen as bad news. the more gridlock, the better in many peoples minds. dennis: we have justice with the ap, the irs going after tea party groups, if we have a third-party to come up that is overreaching like that, it gets far worse. >> i will give you one. it is still another one.

if i can quickly push back a little on what david said, i agree. i would also say be careful what you wish for. the specter of a three year lame-duck president does not look that great internationally. i do worry about that angle. >> i am not too worried about what is happening internationally. i think they will basically be just slightly by over the next couple years. it is the economy here that i am worried about. with gridlock, look at what we have been able to get done. the president realizes that he needs more tax income for natural gas and so forth. you look, frankly, that what has happened with the sequester. the treasury is taking in more money and putting out less money.

there are a lot of business people out there that contribute money to various causes. if they are aware, is they think that some of the information that they are giving to the irs is going to be used for political purposes, that may put a chill throughout the entire contribution projects that some of these companies have. this could really have a chilling effect on charities that the united states. >> we were talking two months ago about whether the republicans would keep the house. i am beginning to think they may gain seats in the house with a scandal like this. >> or, perhaps they take over the senate. >> there are seven seats of that minute robbie one in.

dennis: he has not -- look at how much pressure you put on democratic senators who were afraid to vote for him. >> they do not trust them. they are not close to him. they thought he was sailing down the river on entitlements. the next thing to watch, guys, is keystone pipeline. i think obama has to cave on that. >> now, the government has all the sources that the associated press has had for the past two months. just imagine the lack of work that somebody like charlie gasparino or our own elizabeth macdonald, the difficulty that they would have collected the information if their sources knew that the government would have access to their names and

information. dennis: it will go back to base. cheryl: we are always watching the markets. we do it every 15 minutes here on fox business. paul christopher, wells fargo chief mobile strategist is joining me now. we have the s&p 500. right now we are at 1658. you are calling for a decent return for the s&p 500. >> we are looking for the s&p to finish between 1575 and 1625. we think that is a pretty good return. in the meantime, we like set the goals. this is where it gets crucial. look at a one-year chart.

bouncing back.one quite well cheryl: what about a joke? what about china? i want to show the one year. there has been some volatility in the chinese economy. if you look at over a three year performance,. >> a lot of investors came in. cheryl: china have made the room to grow, though. i want to go somewhere else. frontier markets. always considered very risky.

there has been a big strong three-year performance on frontier markets. >> let's face it, american investors, u.s. investors still very focused on the large emerging markets. cheryl: this is spreading out risks. do you buy into this more than you would say a china story? >> maybe you are right if you look at this chart. this looks better.

cheryl: you would say china is the place to go over thailand. >> there are good bets on china and the recovering u.s. consumer. cheryl: we have to wrap it up. paul christopher, thank you very much. very interesting. dennis: yet another sporting event is going to cable. u.s. open tennis. that is ahead in the media minute. cheryl: in the west coast minute, the golden state has a budget surplus. who would have thought. did anyone tell stuart varney? as we go to break, let's take a look at oil.

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cheryl: maybe another record-breaking day. let's see what nicole petallides has to say. you have seen some big news here. nicole: taking a look at zynga and groupon. you can see that zynga and groupon was jumping on that news.

dennis: it is time to make some money with charles payne. he is shining the light on solar city. charles: it has a vertical integration. they just reported earnings earlier this morning. we had for insider buys. they bought almost 4 million shares. they will not earn any money for a while, but the estimates

continue to improve. revenues were up 100% the last time they reported. gross margins the last time they reported 39.6% from a year ago 20%. that is monstrous. i think the margins will continue to expand. they have partners like home depot, walmart. this is a stock that is extraordinarily volatile, but i love the upside. cheryl: you mentioned sans power. we have the ceo coming on. charles: i did it on stewart's show at $11. today it is that $22. the solar companies that have survived, i think are real. i think they are learning how to get off government dependency. i just think the names that have survived our winners.

dennis: solar city can benefit? >> they do benefit from lower income cost, there is no dow about that. i do not think they do, though, they should benefit from that. you know, it is one of these things. dennis: thank you, charles. cheryl: things are going, frankly, from bad to worse, if you can believe it. editor in chief, the new service does not mix. elizabeth macdonald investigating and finding some

new troubling information on the story. dennis: an exclusive interview with the head of the national association of homebuilders. cheryl: as we go to break, take a look at world currencies. ♪ 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 lot of us have known someone who'sived 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 thmoney you need to enjoy all of these years. ♪

♪ >> 24 minutes past the hour. i have your fox news minute. o.j. simpson is on the stand in las vegas. looking at a live shot inside the courtroom. he is looking at a new trial. a plea deal was on the table. and and moscow, another american spy was expelled earlier this year. this was on top of protest. american diplomat was caught wearing a blond wig detained by russian security forces and has been ordered to leave the country. u.s. citizens -- they was

arrested in november on a tourist visit to north korea. he was sentenced on april 30. some analysts have claimed that north korea is using the case to gain diplomatic concessions from the u.s. those are your headlines. ♪ dennis: it has been going from bad to worse for bloomberg news. they may investigate snooping and cancel the bloomberg service. liz: they worried about bloomberg news reporters snooping on them throughout the bloomberg terminal. you will not just to the federal reserve of the united states on the list, you will see the federal reserve.

the bank of england said yesterday that they found this activity "reprehensible." they are aware of thh situation. they are looking into the matter. bloomberg has come back to fox business. they are in a productive dialogue with their clients. what this is about is bloomberg news reporters getting access to the screen shots, essentially. jpmorgan is in serious dialogue over snooping of its traders over there. the question is, this is a culture. towards sales of the terminal. that is the most important thing for bloomberg. cheryl: at the same time, i have to go back to the privacy concerns. when the story first broke, that was one of the biggest issues.

this is such a direct breach of a company spying on clients. in these clients are saying, wait a minute, we will go somewhere else. liz: bloomberg has to answer. it was okay for years to log on to see screenshots. it was embedded in the culture. one said to me, listen, it should never have been a part of the culture. you know, now we have the people -- $3.4 trillion in foreign exchange reserves. any information whatsoever that gets out in the market, the fears could sway the trade against them. dennis: i am looking for specific examples of who got hurt by this. liz: we may never know. dennis: if someone got hurt, we would know it very soon.

they are worried about dealing with bloomberg terminals. why pay 20 grand each to have someone snoop on what i am looking at. cheryl: thank you. the justice department's secret feature of ap phone records. a matter of national security. we will go inside the beltway to get more details. dennis: more good news for the housing sector. homebuilder confidence is on the rise. we have an exclusive interview next. cheryl: as we go to break, take a look on the winners of the s&p. ♪

>> live on the floor of the new york city stock exchange on a record setting day own wall street as the dow and s&p break to new records not seen ever. other names breaking records, how about ford, good old american car maker ford looking good today. you see it's over 3%, up 14% year to date; right? the name that didn't get help from the government. we are watching that. look at other names like netflix, year to date, up 163 #%, and carl icahn today made over a billion dollars with his stake. macy's quarterly profit on the rise, up 20 #% with the profit, and the stock itself jumping to new highs issue and, also, u.s. airways on the same day when delta forecasts a better second quarter. you see the airlines doing well, but that, too, u.s. airways at a new high up 40% year to date. certainly, some of the names are worth taking a look at. back to you. >> made $6 billion as an industry last year on fees, which we all love so much. nicole, thank you very much.

sector to waif forsure. the controversy continues with the justice department's decision to obtain the ap's phone records. we're 30 minutes from holder's scheduled hearing before the house judiciary hearing. peter barnes has the latest of what is the first of many parole on the irs. you are busy in dc, peter. >> yeah, irs, benghazi, the ap story, and the attorney general will get a lot of questions today, and in particular, on the ap story, why the department secretly collected two months of ap phone records evidenced in a criminal investigation why they leaked information to the ap for a story in may last year about a failed terrorist plot. the ap says there is absolutely no justification for the broad subpoena of the telephone lines.

they want to know why the justice department felt it kneeledded to do this. >> we have a lot more to learn about this so we shouldn't draw cop collusions hastily, but we should ask questions about why that fishing expedition was so broad and why there was not a more targetedded approach to finding out what they needed to find out. >> with some democrats concerned about the ap invest gages, holder can expect a bipartisan grilling today. >> good television if nothing else, and interesting to hear what he has to say when he defends himself. thank you very much. again, attorney general eric holder is going to be testifying today before the house judiciary committee happening in 27 minutes from now. we'll bring it to you live on fox business. you do not want to miss that testimony. >> home builders' outlook rose to a five-year high, but

overall, more builders see sales conditions as poor over the next six month than seen as good. from washington in a fox business exclusive, jerry howard, ceo of the national association of home builders. good news, bad news, jerry. thank you for being with us. rises up three points to 44, but below 50 is bleak, doesn't it? >> look where we are coming from. we have been coming out of the depths -- what was a depression, been up around 4 # 4 #, closing around 50 is very, very good. more importantly, what the builders' expectations are over 50, 53, the highest in seven years. we think the industry is poised for we cove ri. >> you got lower inventory of homes out there helping the builders because are they in a construction boom as of yet? >> not a boom. i think we have issues with credit constraints still out

there plaging builders, and just as importantly or maybe more, real issues with getting building materials. as the materials in the manufacturers' sector ramps up, that slows us too. >> four main reasons in the survey, and three posted gains, but in the west, the index fell 11 points, and lost the most might end joy the rebound the most, why the decline? >> you remember the other parts of the country went in decline months ago and stayed low. the west was buoyed a built. this is just a natural e e quill lib yum finding of a balance for the whole country. we are not overly concerned about it. we'll look in the next two or three months. >> the chart shows it's up 18 points from a year ago, one theme from this is we went down so far that unless any

improvement feels good, like when you stop banging your head into the wall, the mere lack of it is pleasurable. >> well, remember, the wall we banged our heads into was a thick wall and banging for a long time so it is pleasurable, not just a perception. >> yeah, not just a perception. what gets in the way of this, and when do you get over the 50 mark? be bold, make a prediction. >> what gets in the way is continued restraints on credit at the consumer end and development and construction end, something we are working very, very hard on. if the supply sector doesn't ramp up production in building materials cost too much or aren't available, that could get in the way, again, something we're working on. again, i'd like to think that barring any geopolitical catastrophe or imposition of the two other factors, we'll hit 50 towards the end of the year. >> before year en, love that. thanks very much. good day, sir.

>> thanks, dennis. >> well, cashing in on small banks. you know what i'm talking about. talk about regionals, people, doing better that year than the s&p 500. we have the ceo of one of the biggest names. his bank on that list right now coming up. >> and tennis anyone? watching free tv? may be going the same way as other big sports and the big business of sports tv. that's ahead in the media minute. >> take a look at the 10-year treasury. ♪ [ male announcer ] need help keeping your digestive balance in sync?

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that helps maintain digestive balance. ♪ stay in the groove with align. ♪ >> i'm tracy burns if the box business brief, the investment in netflix streams in. dow jones reporting in that just over six months the investment in the video by demand company toppled the $1 billion mark as neeflix rally continues with the stock hitting a new high today. his 10% stake keeps pushing higher. wholesale prices fell slightly more than expected in april thanks to declines in gas and food costs. prices slipped seven-tenths of a percent innmarch, the biggest drop since february 2010. contrary to popular belief, men spend more each month than women according to budgeting women. men shelled up to $700 more in

the first quarter, apparel is the only category in which women spent more. that's the latest on the fox business network giving you the power to prosper. i'm so glad you calleded. thank you. we're not in london, are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen. [ female announcer ] when people talk, your chance to rise and shine. with centurylink as your trusted technology partner, you can doust that. with our visionary cloud infrastructure, global broadband network and custom communications solutions,

your business is more reable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. >> regional banks out perform their national counter parts, the big banks, and the next guest calls an overregularred business environment, the bank is doing good. the ceo expwroins us now. talk about your stock at an all-time high yesterday. >> it sure did. it's great. in fact, i think it's an all-time high for the 100-plus years in business. >> that's impressive. your performance goes with the sector, regional banks have been where i had several analysts say

regionals are better, but you complain about regulation. talk about that. >> we had a dump truck bill with dodd-frank is what i refer to it. we are missing the opportunity for the country if -- and overregulation is hampering us from growing even more. >> but yet your stock is performing so well so if i look at the chart, i think he's doing good, coal listen froth is doing get, but the dump truck bill of dodd-frank is in place. you're growing somehow. >> working hard. >> okay. >> texas is a great market. >> i know. >> it's a business friendly market, goody verseification, you know issue everybody thinks about energy, but there's technology, exports, construction, a lot of positives. >> do you think being in a state like texas where you have no state income tax, more business friendly corporate tax environment, does that help when you have a bank like yourself that's catering to usinesses?

obviously, businesses are coming to texas and leaving california. we know that. >> i think it's tremendous. you know, business people want a place that's healthy for them, and texas is that place, and that's the reason all the u-haul trucks head to texas. >> what do you think is so great, pun intended about the state of texas? >> well, i think it's all the things you said. i think it's the great market. people enjoy business. they -- that's the reason i'm passionate about customers. >> uh-huh. >> is -- and customers there want to do business. you know, people don't want to go in reverse. they want to build. they want to go forward. that's how texas thinks. >> when you have small business ordinary persons or even large business owners, they want to finance and grow something, what are the loan asked for and what are the projects they are doing? what's the growth story in the state. you have an eye on it. >> you're right. well, we're -- there's a lot of

factors. i mean, we got 52 fortune 500 companies so you got lots of smaller and middle sized companies that are supporting that growth, and i like to think they come into the banks, but i hope we call on them because that's what our great staff is doing, is going out, hustling business, showing them how to focus. i think there's a couple things. the dump truck bill it here, we can whine about it, but we have to help businesses be successful, take their great niches and expand, and we came through it where people have to replace computers and equipment and those sort of things, but now they are cautiously starting to expand. >> interesting. at least in texas we hope to see that in other parts of the country as well. >> right. >> maybe they take the lead. dick evans, the chairman and ceo, 100 years in business, it's great. dick, thank you very much. >> thank you.

>> all right. >> stocks now, heading to the floor, and john copina, we started down, but now up nearly 15300 on the dow. >> you look the way the stocks traded today, the down market this morning should have happened, and because people are taking short term profits off the table, but within the first 10-15 minutes, the montra is, is this going to continue? how much pressure is on the market? once investors and traders see the downturn is not happening and only small risk is off the table, within the next half hour, 45 minutes, we trade higher. once that gets momentum, it blows higher and higher. risk on trade is there, no reason to hit sell yet, there's a couple trading sessions left in the day, earnings, economic data. we'll see if it pops up. i don't think it's going to. >> thank you very much. >> nicely said. >> well from equities to the metals, they are hammered today actually. silver is leading the metal

sector down nearly 3% now. phil flynn from the cme in the pits there. all right, what's going on in particular with silver today? always so volatile. >> it is very volatile, and i think right now it's about the industrial metals getting killed. the industrial numbers this morning, empire state number, jut put number terrible. there's a slow down demand, but metals have to deal with the slowing global economy, the numbers from europe, the recession, all of these things are not boding well for metal demand. copper, another industrial metal that's crushed. you look at the lme copper stocks for example, you know, they got hit with, like, a ton of bricks. it's filled with 20 tons of copper increase, a 20,000 ton copper increase, absolutely incredible. these markets are under a lot of pressure right now, so --

>> phil, we're showing the viewers the one-year chart of copper, and there was really recent, look to the right hand side of the chart, really -- a recent pop, and that was off of data out of china, economic data from china, good data, but you tell me that, you know, we're crushed based on the same thing, so where do we go from here? >> listen, right now, the data out of china is questionable. what they are looking at more than anything right now are the copper stocks. copper stocks in london are higher than anticipated and singapore another area. that's one thing, metals another. >> following the metals, thanks, phil. >> thank you. >> today's media minute, another premier sporting event about to go to cable from a broadcaster? they are in talks to acquire rights to the u.s. open tennis tournament, a staple on cbs for

45 years. they declined to comment, but they are losing the march madness college finalling to cable in 2016. espn is gearing up for fox sports network 1 that debuts in august. the cell phone tv service of the other networks sued for piloting signals expands from new york to boston today, and in june, serving atlanta after a federal judge refused the injux shutting down reo battling in court. there's a growing twin. time warner's tnt c announced plans to begin live streaming for tablets and smart phones of cable subscribers on top of a new live streaming service by abc network and cable systems from time warner, cable, and cable systems makes you wonder where are they going to go? cheryl? >> good question.

good stuff in media this week especially. >> yeah >> after a nine-year battle, the las vegas corporation losing out to one of the former asian business consultants. how much legal loss to the gambling giant? that's coming up in the west coast minute. >> first look at some of the winners over on the nasdaq. ♪

>> a jury ruled against las vegas billionaire sheldon, and the judgment a win for richard thune arguing he was the reason they were successful in securing

chinese game ling licenses in the early 2000s and file the lawsuit in 2004, asked for 328 million, the stock down 14 cents california showing a budget surplus for the first time in more than a decade. governor brown, though, still warning lawmakers in the state not to spend. we're not out of the woods. the budget shows an 850 # million surplus, but he's asking for fiscal restraint and for strending cuts in the state. finally, dr. dre teamed up with his fellow beats electronics co-founder and music industry titan to donate 770 -- 70 million to the university of california. the generous gift creating a new academy of business and art with their names on it, of course, open to students in the fall of 2013. that is your west coast minute. well, i want to let you know fireworks expected on capitol

hill in moments as eric holder appears in front of the house judiciary committee. >> lawmakers expected to grill him on justice department's swipe of phone records at the associated press, and melissa and lori are next with live coverage of the attorney general's testimony. >> looking at a live picture. we'll be right back, stay with us. all stations come over to mission for a final go.

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closes at a new all-time high for the 20th time now. melissa: peter barnes is standing by in washington as we await attorney general's testimony. peter, you know, the hears is not scheduled to be a reaction to the ap or the irs scandal, but undoubtedly, it's going to go there. >> oh, absolutely, and, in fact, we already have the opening statement from the top democrat on the committee, and he is criticizing the justice department for this investigation into the associated press. he also has concerns about the story about the irs and the way it handled tax exempt status for conservative groups, but first to the ap part saying, quote, with respect to the government's subpoena of phone records at the associated press, i'm deeply troubled by the notion that our government would secretly pursue such a broad away of media phone records over such a long period of time, this from the top democrat on the committee ssying he's going to introduce,

reintroduce legislation, a federal press shield law to help protect media organizations in the event of federal investigations. it has previously passed congress, and he wants to try to get it through again. melissa, lori? melissa: this was to be about medicare; is that right? it's pretty coincidental and not great for eric holder this is happening a day oar two after we found out about all of these other issues that everyonements to ask him bout. >> right. yeah, this hearing was previously scheduledded, and the attorney general was supposed to go up on a general oversight hearing, if you will, which is common for administration officials to go up and do this, had it not been for the associated press story, the irs story, and, of course, ben -- benghazi as well, in would have been the hearing tha