you can see stephen miller there. the acting commissioner. connell: as he checks in from d.c. we will have plenty of analysis throughout the hour. let's start with nicole petallides and the stock market. good morning. a market that just will not quit. another record all time intraday high here on wall street. right now we are at 15,284. our highest was 15,305. the tech heavy nasdaq also moved to levels that we have not seen since 2000. you are seeing gains of roughly about a half% for two of our averages. the drug index is to the downside. the dollar is very strong and the majority of the dow components do have off aeros.

we had a very, very busy floor here over the last, from the opening bell until about 10:15 a.m. it soared over 50%. you have a robot network which is down over 50%. you have a very volatile stock. back to you. dagen: thank you, nicole. connell: charlie rangel had his chance at the questioning earlier and joins us now from capitol hill. >> at least we have one good thing that has come out of this. republicans and democrats are together in trying to get real answers. there is a lot of outrage. there are not many answers as to who directly was responsible,

how far up did it go and certainly, what has been done about it once they found out. we are in that. we just started our hearings. i am confident by the time the day is over, we will have much more better to report. this section of the law lends itself to politically wrong doing and there is no substitute for tax reform. dagen: it is good to see you. i have actually heard that from republicans as well talking about reforming the tax code. with the american people want, they want names. they want to know who is responsible for starting all of this. they want the people gone who were responsible. why do you believe that we will get any of that from this

hearing. what will it take to find out who is at the root of all of this. >> the administration knows how seriously we are taking this. we will not stop until we get to that. we have tens of thousands of irs employees that have this stigma. it is a rough job. we owe it to them. we all went to the civil service who has nothing to do with it. we deserve an answer that will give confidence. that is the bottom line. it is maybe a little too late for the congress to recover, but certainly as it relates to the irs, they certainly deserve better than what they are getting today. congressman wrangle who have been involved in the questioning earlier. thank you for your minutes.

thank you. let's go back to capitol hill. let's rejoin the hearing. >> it is not based on any fact associated to this investigation to this date. let me move to an area where i disagree with some of my democratic colleagues and their comments this morning. i do not believe that there is any lack of clarity in the statute this morning. the statute that is in effect has been in effect for decades. it requires before there is tax exempt status, as the crew group , as the citizens for responsibility and ethics in washington, you are to be denied

this status is you are not, exclusively engaged in social welfare. is that not correct? >> the statute is explicit. it uses different language. >> if this is addressed to me, i have to admire the secretary. that is a tax policy question and i am not in the position. >> it says that there should be a denial of tax exempt status to any group that is not exclusively engaged in social welfare operations. it was only after a regulation adopted long ago, long before any of you were at the irs that change from exclusively to

primarily that there was any discretion for this to be involved in this operation. i do know that we have indicated that some clarification from those in the policy area from the department of treasury may be needed in this area to help clarify again. if the statue had been followed, we would not be having to deal today with select this enforcement. we would not have any problems with enforcement in this area at all. i hope the petition is responded to properly. thank you for your testimony. >> thank you. time has expired. you may object to the word

targeting, but it is used in the ig report 16 times. it is a common understanding of the word. i would just suggest that it is a well settled doctrine. you admit that you spoke with two people about the planted question before hand. can you tell us more about that conversation. >> i believe we talked about the possibility that now that the ticket report was finalized, now that we knew all of the facts, now that we had responded in writing and everything was done, it didn't make sense for us to start talking about this in public. >> we were going to do it at the same time.

>> what other experience did you have about this to have the planted question at the aba? >> i am not sure what you are asking. >> what was your recollection of that conversation. >> where did the conversation take place. >> i believe it was over the phone. >> what they did it take place? >> i would have to look back at my notes. >> please, do you have notes or do you not have notes. >> i do not know. >> a little while ago you were being, you engaged with mr. reichert on the questions as to whether you knew that this

committee, this whole idea of does the committee have the right to know this information and then you sort of sheltered yourself in this idea of i have always told the truth. let's set that aside for a moment. you know that in the process of discovery, when you find subsequent information, console has a duty to disclose that to the opposite party. don't you acknowledge that you had a duty based upon your testimony before this committee of what your actual knowledge was. didn't you have a duty to come forward and disclose that based upon all of this cascading and

inquiries. >> sir, i do not believe so, sir. i was imposition of some facts. i was not in possession of all fax. we have done an internal review to see what we needed to do to get these cases going. they were in at exactly the same time. they were getting all of the facts. >> you were not concerned about the timing of the investigation when youtube made the decision to move forward and do the planted question. it was done. we had all the facts and we had made our written response. you have the actual information of what you are describing today. you had it all in your possession. you are under a scheme to go and

do a planted question. >> is that right? we had an understanding. a written or not written down contemplated that manipulation, call it what you will. you had all of the information; is that right? >> we were reaching out to the committee at the same time. we called to try to get onto the calendar. >> you call to try to get on the calendar. is that all you have? >> it is the truth. >> i find it incredibly ironic. on the one hand, you are arguing today that the irs is not corrupt. the subtext of that is you are saying, look, we are just incompetent. i think it is a perilous pathway to go down. there is, there is sort of this notion that has not been satisfactorily answered.

if the targeting was not targeting, how come only conservatives got snagged? >> they did not, sir. organizations from all blocks and all equations were pulled in. >> all right. it is contradiction of the testimony. >> thank you, mr. chairman. i want very much to be able to get to the bottom of this. more important, i want to make sure that we are able to do all we can to prevent it from ever happening again. i want to associate myself with

the outrageous and intolerable group as to where i think this ranks. what i would like to know first, in your testimony, you had a section that is titled results of review what you say the irs use inappropriate criteria for the identifying of these organizations. is that legal? >> is it legal? it is not illegal sir. you innumerate that inappropriate criteria was developed. it is not illegal, but it was

inappropriate. it is contrary to treasury regulations and other policies put in place by the department. the substantial delays, is that illegal or inappropriate. >> it is inappropriate. >> -- >> inappropriate. >> thank you very much. you also outlined the recommendations that you think are most critical and explain whether they are enough to prevent this from happening again. are they? the vast majority are. the irs agreed to the vast majority of them. do you have some mechanism for making sure that they are put in place? is there a plan to go back and review these and to continue

your gerd work of review to ensure that they are being followed out and that your recommendations are enough to protect the citizens of our great country? >> you anticipated pretty much our entire future plan. we were going to take a look to see whether the irs has successfully implemented, as i believe you indicated or someone did that they would ensure that the irs complies with those recommendations and that would be definitely be our intention to guarantee that that has occurred. >> we also have an oversight responsibility. is there something that will keep us in that loop? or will we have to find out about this outrageous and intolerable behavior through

some other means. we publish an audit plan each year laying out which audit we will engage in, read woodcrest information reports. we solicit ideas from congress. from the administration and from anyone who has a tangible role in the system of tax administration. it is our intention to once again do that. there is no dow in my mind that we will once again follow up with congress on this matter on a one-on-one basis. >> thank you. >> i would have to go back and take a look. i do not believe that there is an obligation. we knew it was in. i knew it was an inmate, almost

immediately when we were involved. we had had a meeting with mr. george and company and may where there was an indication that it would be done this summer. our understanding was that they would get the fax, or get them out there. >> general george, is there a need to pass specific legislature and that would make it more difficult for hopefully impossible for this to happen again and to strengthen the requirements for reporting when something this outrageous and intolerable takes place? >> the secretary has delegated tax policy questions to the assistant secretary. >> time has expired. you can supplement that answer in writing if you wish.

>> according to the inspector general's report, it is inappropriate handling. to swing back to some of the prior testimony, mr. miller, you indicated that you never spoke, excuse me, before i asked that question, let me highlight two pieces of media articles that appeared also, one in 2010 as well as one more recently. there wassan article in the weekly standard concerning the concerns of the coke industries attorney that there had been confidential taxpayer information potentially in the hands of senior administration officials. subsequently, just a few days ago, in the u.s. today, there was a column by a gentleman connected by a national organization of marriage.

the release of this organization's confidential tax return to the human rights campaign is a canary and the coal mine contrary to assertions that the targeting of tea party groups was an error in judgment. the release of this confidential data to a group of this nature suggests the possibility of complicity at the highest level of politics and government. back to the question whether there was any information sharing of taxpayer records, taxpayer returns with anybody outside the irs, mr. miller, you indicated that you never spoke personally or communicated personally with anyone in the white house about the sharing of confidential taxpayer information. is that correct? >> i believe so.

connell: we continue our coverage on the fox business network of the irs hearings. >> going around in circles in many ways. we are going to take a quick break and bring you back live to these hearings. we have people looking for some answers. we will get them. coming up. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your tre in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

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dagen: we take you back live to capitol hill. there is the democrat from wisconsin now grilling stephen miller. let's listen. >> your resignation to the president. he has accepted that. is that right? >> i have done so to the secretary. >> okay. any other instances of accountability, as far as those in charge of the cincinnati office? >> i think i mentioned that there were two instances where there was counseling suggested and there was a re- assignment to someone. what i should say is we now have possession of the facts with respect to the report.

now it is time we should be looking at that. >> any pushback and some of the recommendations that they are making? >> there is no error between the recommendations. >> is there any rules for the congress to make sure that something like this does not happen in the future. to feel like there is sufficient personnel in order to expedite the review of these. >> there is not. >> let me ask you, i think part of the problem is the definition

of the criteria of primarily engaged in social welfare with no clear bright lines or clear rules. i think the irs is trying to further define map for the division in cincinnati. is there further definition that would be helpful to irs personnel? >> the answer is yes. >> is there a role for congress to intervene? >> >> it is my understanding that they have the authority to do this on their own. it will be an inherently flawed human process of subjectively applying this material. especially with the huge influx of applications.

i think it is so important that it needs to be reiterated. mr. george, i apologize if you think you have made yourself clear on it. according to your report, you found no bias or partisanship for selecting applications. is that right? >> that is correct sir. we did find gross mismanagement. >> that is correct. >> thank you. thank you, esther chairman. i will recognize doctor price for five minutes. >> i think that if i am sitting at home trying to figure out what is going on here and listening to the testimony and the remarkable revelation some of these questions, you get some snickers after some of them, but you have the federal government asking what books you read, you have whether or not you know anybody in the organization that

will run for political office. this is chilling stuff. this is very, very serious. mr. miller, two you accept the findings of the ig report. >> we do, sir. one of those findings is that groups were targeted. do you accept that finding? >> i would not characterize it as targeting. >> you can understand why they would believe that groups were targeted. >> i think that groups that were put into the centralized grouping would have gone in, whether we had done the correct thing or -- >> you describe the list of criteria being used to identify these groups as obnoxious. correct? >> correct.

>> they are religious organizations. >> i do not know that, sir. i am unaware, and i say that as i do not know. i have looked at the list, but very quickly. are you aware that there were some baptist church organization identified. who is sarah hall ingram? where did she work during the period of time under question? >> someone has corrected my prior comment, i think. i think she was already working on affordable care act. i do not know when intent we made that. >> she held the division commissioner title.

>> she had responsibility over much of the concerns and discussion that we are having today. >> at the time she was the mission commissioner, yes. would she have known about this criteria that had been formulated? >> i have no reason to believe that she would. >> that she would? >> yes. >> you do not think that she knew about the criteria of the folks under her responsibility? >> there were a couple thousand folks. >> have you ever had that conversation with her? >> no. >> you have never asked her whether she knew. >> i am not sure if she was in that current job at that time. who appointed her? >> i moved her into that job.

>> you have also said in the context of the criteria list and what we are talking today that the irs provided horrible service. >> i think that is correct. the individual who was overseeing a portion of this and had responsibility for this "horrible service" now sits over the entity at the iris that will determine whether or not people are complying with the rules of the ac. is that correct? >> no. we would have to go back. i do not think that your timeline works perfectly, sir. there may be a period of time where she may still be in that job. >> in questioning, you said the irs would not have any access to medical records. is that correct?

>> i believe that that is correct. >> it would be unnecessary? >> i think so. isn't that how you described the questions and the information that the irs folks were gaining to the criteria list unnecessary >> i think, are you talking about the letters? >> i am saying that there is a parallel in the expansive nature. would you like to characterize. is it illegal? >> >> it is absolutely not a legal. let me understand the question. what is your statement as to what is a legal. >> do you think it is illegal for employees of the irs to create lists to target individuals in this country.

others will be able to tell that. i do not believe that it is. i do not believe that it should happen. please do not get me wrong. >> thank you, mr. chairman. i appreciate the opportunity for our being able to listen to the witnesses and try to develop a record and people putting forth their own ideas, their own questions, clarification. i think mr. inspector general, that you have provided tremendous service for the report. straightforward, identifying mismanagement, inappropriate activity and i hope that people would be able to actually read the report to reflect upon it. i appreciate your being here, mr. miller. it is not the most comfortable. i appreciate that you as a

career civil servant accepted responsibility, even though you have not done these things directly and resigned. it is an air of responsibility that you do not often see in the political arena. i am hopeful that we can continue to probe to direct, to make sure that no political entity is subject to inappropriate activity on behalf of the irs. i appreciate some of my colleagues talking about efforts that we can do to clarify laws and regulations together. to be able to make sure that there is less ambiguity. i also think, at some point, it will be interesting to rough legged on congress' role in what the chairman referred to as pretty strong terms about tax code, when i came here in the

104th congress, there were 114,000 employees in the irs. since i have been here, congress and its wisdom has expanded the code, made it more complex and cut genetically the men and women who are on the front lines to deal with it. they're in inadequate training budget. we had this testimony just across the capital before the senate this last week. i really hope that there is an opportunity to think about how we support the integrity of the internal revenue service. not just by making sure that there is not inappropriate or gross mismanagement. there accountability. we rely upon it to be able to function. congress has slowly been starving the budget of the irs.

at a time when each of employees, dollars spent on those employees, gives the federal government about $214 in revenue. for us to not make sure that it is adequately staffed, adequately trained, adequately equipped, it makes it harder to have the oversight and the accountability and harder for overall performance. i think it is inexcusable to cross the line. i think it is important that we bear down, we understand, we make sure that it does not happen again. i also think as the congress has made the code more and more complex given the irs fewer and fewer resources to administer it, make it difficult to train, i think it is undermining the

ability to take a complex entity that relies on self reporting and people having confidence in it. i am hopeful that this is not something that we slide past. i appreciate, mr. chairman, it your interest on simplifying and reforming the code. i also hope that we look at the task they have been given. the budget they have been given and think a little bit about maybe a rate of return that would more than pay for itself if we invested in training management and having war than 150 people to deal with the avalanche of these applications. i guess that was not so much a question, but it is something that occurred to me and i know, mr. miller, you have referenced the stress that that group is on and how hard it is to keep track. at some point, if you would provide to the committee, not putting you on the spot now, but

some reflections on what it would take to do this right, i think it would be a valuable part of the committee record going forward because we all want it to have integrity. we want it done right. we want to treat our employees and the taxpayers properly. connell: hearings live from washington on the irs targeting scandal. there will be more to come and we will keep covering it on fox business. we will be right back. ♪ [ man ] on december 17, 1903, the wright bthers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman can you ar me? and you hear your voice? oh, it's exciting! [ man ] toucown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi.

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there's a land of restful sleep, we can help you go there, on the wings of lunesta. ♪ >> hi, everyone. i am diane macedo with your fox business brief. follow the highest standards of journalists ethics. it also says to ethically -- the financial times is reporting that that eco- system is forcing some major backlash. editor in chief matt winkler has been part of the damage control efforts. some are calling for more action beard it has been a roller coaster year for gas prices. the national average is $3.51. trouble at refineries in the midwest are causing regional

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>> we have some breaking news that we want to bring you. diane was talking a moment ago about the snooping scandal that surrounded that news organization. the former ibm chief has been brought in to serve as an independent advisor regarding the privacy and data standards as they are putting it out bloomberg lp. that has just come into us here at fox business. >> from one scandal to another down from d.c.

>> the permanent one is the right person going forward. >> i very much agree, sir. >> thank you. i appreciate the opportunity to ask questions. i will attempt to be brief. this is not anneasy hearing for you or us. we are outraged on behalf of the american people. that is number one. our trust was violated. that violation is outrageous and unacceptable to us, and i hope to you. number two, there needs to be changes. we need to be assured that those changes that we make, things happen, investigations have to be done in and changes need to be made to ensure that american people that we know that and we will not accept bias and

discrimination in any way. this committee and congress also has a responsibility to do this. i think we have to be very careful about that. i would compel all of my colleagues to make sure that we also engage in this in a way that is clear and fair and nonpolitical. we all agreed that something has to be done, so let's do it. my question is really about what more broadly is going on in the divisions that handled the applications for nonprofit status. i had heard in my own office that groups come to us that applied for nonprofit status.

the backlog of a year, they do not understand why it takes so long. they do not understand why they are not clear about what is wrong with their application. they are not hearing back and given some of the cuts that we have made, they really are looking to try to make up some of the gaps that are here. i, for one, need to have better clarification. why the applications are taking longer than a year, if there are problems with them, what kind of questions you legitimately can ask and ones that you cannot and how we can move this process

forward. i think we have every reason to ask those questions. again, it goes to all of the nonprofit organizations. they should not be in the dark about the criteria. they should not be in the dark about why it is sitting on somebody's desk. if you could clarify for us now, mr. miller or give us some more information as we go forward about what that criteria is and what we can expect and explain and how we can make sure that you are doing this right. we can ensure the american people of the right process. the fairness of that process. the criteria that is being used in a timely appropriate response to taxpayers.

>> i think, probably, it is a big enough question that we will follow up in writing. the process right now is, as i have mentioned, we have a limited number of people. 140-200 that work on the 70,000 applications that come in for tax exempt status. they get a number of tax benefits. they get deductibility of contributions. they get state tax exemptions. property tax exemptions. postal rate reductions. these are significant benefits in addition to just tax exemption. we have to look at them. many of them are small organizations. some of them are large organizations that we need to take a look at. did you look at particular issues within them.

we will look for, is their private benefit. is there political activity going on. no activity is permissible. those are things that take time. we try to look. we try to move them along as fast as we can. we do not have enough people right now. >> this will be a continuing conversation. >> thank you, mr. chairman. could you define -- >> under the internal revenue code, political campaign activity has some limits. you need a candidate. you need a candidate for public office. that sort of is what you need for it to be a political campaign. a little different under 527.

connell: republican congressman of nebraska doing the questioning now as we continue our coverage of these hearings in washington, d.c. steve miller has been under the gun. dagen: we have not gotten any answers. people want to know. name names. that is one thing that we have not heard. we will stay on top of this. we are going to take a quick break. we will be right back. ♪ [ male announcer] surprise -- you're having triplets.

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connell: there have been some news breaking as we have been covering this irs scandal in d.c. the former head at ibm to serve as an independent advisor

regarding privacy and data standards. he will immediately take a review of the practices. they have big wall street clients out bloomberg. they will make recommendations and advise on the implementation of any enhancements that they make to these policies. included among this, will be the independent verification of bloomberg's systems and procedures. he will report to the board of directors. dagen: bloomberg was -- jpmorgan sent a former legal request to the company. connell: we have been covering

these irs hearings. i would want a discount going forward. dagen: i don't know. it is all about the money. we are talking about the irs. charles payne is here. charles: when mr. miller sort of set, listen, we agree things are sloppy, but he knew that it is not partisan. he then try to almost make it a row it. what don darby almost immediately is things with the robo foreclosing of mortgages -- it really is fascinating. he is specific on certain things. connell: people making a lot of it, the stock market and other

intraday high. >> a company called chipmunks. they have reinvented themselves. they do chips for lcd stuff. it is just a broad play on big tvs, laptops, smart phones. this stock is breaking out. there is no resistance on it until maybe 2021. that itself would be a big gain. their two biggest customers, their stock is up 50%. it is always great when you sell companies that are doing very well. that means you are doing very well. dagen: you can catch charles and i saturday morning. charles knows what i am saying. connell: more on the irs hearings that we have been

covering in washington. dagen: a live interview coming up. ♪ step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

earl casone. the man forced out as irs commissioner tells congress that tea party conservative views. no party why the agency targeted them. we will talk to congressman who questioned him earlier today. dennis: a year after facebook's ipo the stock is going largely nowhere. adam shapiro is the head on whether facebook has lost its cool. cheryl: horrible fever. what will you bosh with a $550 million jackpot? we have some investment ideas for you and they are fun ideas. dennis: we are a of schedule.

stocks every 15 minutes, nicole petallides at the stock exchange, the stocks when to rise. nicole: i got my ticket and when i win the money i will let you know why and investing in. thousand industrials are up 55 points, we did actually break through record territory moving to 15,305, a new record date, goes higher and higher, nasdaq composite up 1/2%, the s&p 501/2%, the dollar very strong, $24, names like boeing, jpmorgan, technology and cisco and we are watching retailers like nordstrom and j.c. penney and kohl's. cheryl: thank you. to test the exchange between outgoing irs commissioner steve miller and lawmakers over his role in the agency targeting

conservative groups. peter barnes is watching everything, fireworks from capitol hill, he has latest, quite a morning on capitol hill. peter: republicans and democrats hammering steve miller over this controversy, the agency targeting and delaying approval of applications by some conservative groups that were seeking non-profit status including dozens of groups that had the words tea party or patriots in their names. the chairman of the house ways and means committee very angry. >> despite a two year investigation by this committee the irs never told the american people or their representatives about this simple truth. in fact we were repeatedly told no such targeting was happening, that is not being misled, that is lying. peter: miller denied he lied to the committee but he did apologize for the agency's

actions. he said it was guilty of nothing more than just screwing up. take a listen. >> we provided horrible customer service here. i will admit that. we did. horrible customer service. >> it is a different question. peter: that is the question. was any of this politically motivated by officials and employees of the irs. that is what these investigations and hearings are turning to the chairman. cheryl: i have to tell you, so many questions, very little answers. of frustrating morning for everyone, peter barnes in capital. dennis: democratic congressman charles rangel no stranger to tax problems of his own. the member of that committee was on markets now with dagen mcdowell and connell mcshane

last hour. >> wheeler to taxpayers and american citizens that citizens get an answer that will give them confidence in government. that is the bottom line. confidence in government. maybe too late for congress to recover but certainly as relates to the irs they deserve better than what they are getting today. cheryl: what do you think of charlie rangel's comments? something for the tax man, can't be a real fan. cheryl: certainly charlie rangel and several committee members were very clear in their questions, very pointed questions and republicans did good job keeping questions short and to the point, looking for fact, miller would not answer. >> i expected him to be more -- we are so sorry. he doesn't seem real sorry. at one point he told -- a constant pleas which was so blunt and honest. cheryl: i do not believe partisanship motivated the

people that engage in the practice as described in the inspector general's report. dennis: i love that, but wasn't politically motivated at all, we are targeting tea party groups but not politically motivated. joining us from this side of the aisle are republican who questioned the irs commissioner, ohio congressman peter rosscam. the irs says this was not political and wasn't targeting. from the moment they say that in the hearing today, do you find this credible? >> no. your eyes glaze over when you hear them say that. 16 times in the inspector general's records they used the word targeting or target. the notion that somehow you pick people based on philosophy and got to be on the lookout list that they actually talk about and put one group in one category and another group in another category is completely incredible, it is absurd and it won't be tolerated. dennis: the irs chief miller who

has been fired in june, testified to congress, march of 2012, no targeting going on here, may of 2012 he finds out there was but he never went back to congress and you repeated the question in today on should you come back he basically says i answered honestly the questions i was asked what should he have come back to get you guys to ask him more question? video of the you to give you new information? >> yes. there was no ambiguity that the house was interested in this subject. had written the irs and verbally inquired of the irs, a record was laid that the house was concerned about this based on contract from our constituents. here is the irony. the internal revenue service based on the testimony today entered into a scheme to have a planted question that the american bar association when they should have come to the house of representatives. set that all side. the most chilling thing today was commissioner miller when he

was asked a question is this illegal, do you think this is illegal activity glumly said no. i don't think it is illegal. that is chilling. that is an admonition we need to be very concerned about. the power and the authority of the internal revenue service targeting people based on what they believe and prohibiting their ability to enter the public square and the great things will not stand. dennis: the irs has apologized for what it did. do you feel mr. miller was apologetic? >> no. it is not a matter of my feeling. is a matter of the internal revenue service. this would have gone much better today if they had said look, we targeted, we targeted based on political philosophy, these of the people that targeted and this is how this came to pass and this is what we're going to do to fix it in the future but instead this isn't targeting, this isn't parsing, all these sort of passive uses of words, mistakes were made. who made the mistakes, who made

the decisi how is an environment created that the internal revenue service where people thought this type of initiative was going to be rewarded by people you report to? is an absurdity the way they have approach to this, complete underperformance and american public won't stand for it. dennis: has this irs thing spillover into a way that you now look at previous clashes between business and government and whether there's something suspect, look at the epa or the national labor relations board, do you trust other obama administration agencies now? >> there is a big concern. that question has yet to be answered but there is a concern if there is a pattern in other agencies. congressman kevin brady from texas laid out an example of a constituent of his, made an application to the irs and audited from several other agencies that gave her one rough time. in the words of my teenage son i am just saying.

let's just find out what is going on. my hunch is there might be more and we need to inquire. dennis: see if it goes even further. thanks for being with us. cheryl: everyone washington focusing on the irs controversy lawmakers could be dropping the ball when it comes to the economy. james fridge wing is here in new york on set with us and the director of economic policy is with us as well. i want to take this question to you first. lawmakers are for so focused on the irs and they should be but are they dropping the ball when it comes to economic concerns? tax regulations for instance? >> they will be playing with the steve miller band for a while trying to track down what these dunes have done, it will take a long time, it will be really important because it goes to the heart of our democracy but that will put all economic policies of the making into the fall, right now it looks with a

positive deficit news they won't hit the debt limit until the end of the year so there is no reason to act between now and then and they won't, they will just have one hearing after another and the ap scandal and all the other things going on. cheryl: a crucial story but the focus is not on the economy. that will -- look at the markets. 15,305 with our session high, a new record for the market, all the attention is focused on washington. >> that shows where the market folks are focused and where other people are focused. these are moments liff is more interesting. the ap, bloomberg not getting all the headlines, the primary reason is the fed continues to provide the stimulus necessary to do it, keeping rates low, companies doing more with less, the reeovery is slower, but improvements in jobs and housing

market continues forward. that allowed consumers sentiment to have the best number in six years of the economy continues to do good things despite these headlines, and highlights how the fed is a driver, not the gridlock in washington. cheryl: really has been the driver of the market so certainly keeping interest rates where they are, a billion dollars a month and the market took a pause earlier, concerns that they will stop the party. do you think that is what congress should be focusing their attention, the fact of $85 billion a month spent by the federal reserve? >> the fed is going to start to think that because the economy is doing pretty well and the fact is the markets are probably the key factor driving the economy that we're getting a strong surge in wealth, the housing market that was just mentioned is part of it as is the equity market and we are seeing things like cars getting back to where they were a decade

ago in terms of normal so it is good news on the economy side of the we are going back to the old normal. the new normal might be behind us and having government gridlock might not be bad, there are things we want to fix like the corporate tax but if we don't fix those things the wealth affect is overpowering the negative news. cheryl: another story crossing in washington is the dollar at a ten month high. >> the u.s. is the best today and it has been for some time, china is showing signs of weakness and europe, no growth and still the debt crisis and countries to be dealt with, we are truly the safe-haven so the bond performance, stock market performance, a lot of money flowing into the country and we talked a lot about great rotation and whether that is playing out or not, the fact is significant in coming coming into equity and bond funds despite these high levels.

there's more room to go. cheryl: we need good news on a market day like this. good to see you, one of the few economists that like to smile. thanks. dennis: bloomberg news in damage control mode after reporters snooping on clients. and a former chairman and ceo of ibm to serve as an independent adviser on privacy and data tan. and the bloomberg current practices and policies for client data and end user information but let's note bloomberg is appointed and on wall street guy who may never use the bloomberg terminal. matt winkler is part of the damage control effort and calls this new thing an error the was and approve standard practice for 20 years. some people calling for more action. cheryl: interesting choice. the sacramento kings bought by a group of local business men.

it is in sacramento and you know that will be in the west coast amended. dennis: the latest weapon in the fast-food wars, the law while pull paco and analysts said on whether that and other new menu items at taco bell, mcdonald's and wendy's will work, fast-food renaissance and as we do every day at this time let's look at oil. i want to make thin more secure.

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cheryl: consumer confidence this morning and the new record interday hi, the dow higher by 58 point glass but fifteen thousand 305 is the market of the day boeing leading the charge with jpmorgan chase, bullish call from them, merck is dragging down the dow. 15 minutes ago, nicole petallides on the floor of the stock exchange and nordstrom is making headlines today.

nicole: we are seeing it to the downside down 1.5%, they can out with quarterly numbers that were a disappointment. right now at $60.23 a share loss of $0.90, 1% loss at the moment. it is a winner for 2012 up 12.5% but cheryl as a disciplined because they can out with their number lower than expected sales, lower than expected profit and lowering the full year sales forecast, not only did they have a tough winter, the weak business in early winter that they noted and going forward, not that great either. it makes for a down day and back to the market, high across the board. cheryl: we love it. thank you. dennis: charles payne is here making money. charles: one thing i love when i

research these companies is the pedigree, origins of this company. this was started by jerry greenberg, a cuban when he was 15 years old was visiting his friend at a shoe store in boston, give me one of those american alarm clocks, very rare and hard to find, went out and found one, sold it for $18 and didn't make a penny. the guy call the next day, i need four of them. can i make a profit? yes. at the time jerry was a leftist but when fidel castro took over he didn't want to be involved, they ridiculed this guy and we're going to kill him and is family, a school friend and randy came to america and the rest is history. great earnings a week ago, these numbers will be better than that and beating the street pretty good, long time they beat the st. 50% and report next week and having pressure but so far so good. this is a company with the right pedigree and amazing story and people with a lot of money are buying it these days. dennis: i see you there, you must feel this is above or below

something like these big watch brands. charles: above the fossil why referenced but below -- this is back to the 1800s and their watches go anywhere from 5 grand to 500,000. cheryl: a brother-in-law collect them. charles: they have better expertise in watches. dennis: is one of the fuel jewelry pieces a man can wear. charles: what made it ok for men to wear watches? rich watches. before that it was considered feminine. cheryl: we will let you go. market-making get? charles: loving it. i am the guy, a level pull back to be honest with you but i will take it. dennis: your own capitalism story. thanks a lot. charles: have a good weekend.

cheryl: the summer forecast, crowded planes, getting tough for travelers. it will be good news for a lot of investors out there. the c e o of travelocity on the show. dennis: star trek the endless movie frontier. will treaties turnout for the latest venture despite a few prominent pans from critics? the world currencies fairing against the u.s. dollar.

>> the financial times saying website and social media accounts have been hacked by the syrian electronic army which says they support syrian president assad. a link was posted to an execution video tape. they have secured their accounts and working to resolve the issue. the speed at which the syrian government is getting reports from russia, the military sent a dozen warships to with naval base off of the syrian coast line in the mediterranean coastline and russia sent its most advanced cruise missiles, all of this as the u.s. and

russia are planning an international conference on the syrian conflict in june. governor rick perry will survey the damaging in the north city devastated by wednesday's tornado that killed at least several people, those still missing as the recovery effort continues. those are your headlines. now back to cheryl casone. cheryl: good to see you. former travel season almost upon us and some good news for the travel industry. a new survey from airlines for america suggests two hundred million people are going to fly on u.s. airlines this summer. let's bring in somebody who knows the industry very well, founder of travelocity and current chairman of the country, good to see you. a little bit of business. kayak is being sold. >> the deal is expected to close next week so i will be out of a job as chairman of the board. cheryl: you are pretty good at starting up companies and selling them off.

congratulations. >> it is a great industry to be in. cheryl: you founded travelocity in 2006 and moved on to bigger and better things but what do you think of the competition out there, expedia, travelocity. when you started there wasn't any. you were a trailblazer. >> expedia came out quickly and price line. what is amazing is travel is larger than the next four categories combined. it is huge and there's a lot of room. there are 18,000 travel agents and a lot of people who book the old way. it is competitive, very competitive but we started seven years ago and the size of travelocity now with less than 10% of the people, we don't have 200 people. cheryl: a very small company, the bread of technology and also saying mobile, all this room to grow in mobile applications when it comes to travel.

>> we have twenty-five million downloads of a kayak mobile apps which stunned us and it is growing so fast and people are buying. i talked to another online travel company today and they are selling international tickets on mobile which surprised them that people will actually buy at $2,000 ticket. it is happening like crazy. a lot of room to grow. cheryl: what do you think of the industry overall? consumers are very angry but the airline industry made $6 billion in fees last year. >> they did but they kind of had to. the price on an airline ticket is down substantially over the last 15 years and every single major airline went bankrupt so they had to fix the model. it was broken. fees are what they came up with and capacity. you were talking about how many people are traveling, they will all be on the same airplane. airlines are running 80% load

factors. cheryl: the forecast for the summer is 85%. which is unheard of. >> take a market cap of the top six airlines less than starbucks. they are not rolling in dough. they are coming back and this is the way they found to do it. is fortunate for the consumer, irritating but getting to make a little money. cheryl: fuel prices are down which will help as well. what do you make of the consolidation like american and usairways? the consumer is worried, investors leavitt but consumers are worried. >> it is a good thing not only for investors but customers. you have to be a large airline today to be successful. have to have a big airline to generate those miles and get people who have places to burn as miles of the big network makes you competitive. time was with american 25 years and think it is a good thing. cheryl: you are fascinating to talk to let you have a book coming out called on innovation and you know how to run a business pretty well.

looks like a good read. terry jones, thanks for being on the show. dennis: if you're sick of waiting for the annoying passenger taking too long to stuff a big suitcase into the overhead bin american airlines has a deal for you. you better travel white. in an attempt to speed up on-time performance american airlines will give boarding priority to people just carrying a personal items that fits under the seat like a purse or a backpack letting them on the 4 other passengers. american tested this procedure at seven airport earlier this year as began applying it to all flights yesterday. the latest weapon in the fast-food wars, the waffle taco, i am loving it, that is such a misrepresentation. we could have another journalism scandal. an analyst at on what it will do. cheryl: they are make one comment? deal like waffled pacos? dennis: i love the man never even tasted them. cheryl: looking good. also something else happening today in washington. power ball fever.

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peter: they are recovering ground. steven miller, the former acting head of the irs is still in the hot seat right now. we want to go back to his opening statement, cheryl and dennis and show you the apology that he made at the very beginning. >> i want to apologize for the mistakes that we made and the poor service that we provided. the american public and affected organizations deserve better. it cannot even appear to be a consideration into terminating the tax exemption of an organization. miller also said that he did not think that the irs employees did anything illegal. he also denied that he thought that there was any political

motivation involved in these delays and in these reviews. the inspector general of the irs who uncovered all of this, agreed with all of that. take a listen. >> did you find any evidence of political motivations? >> we did not, sir. real simple there. that was from russell george. cheryl, back to you. cheryl: we are ready have the steve miller band jokes happening this hour. peter, thank you. dennis: let's check in with nicole petallides. we have seen a lot of ipos recently. it just shows you that we are back and it is the type of economy that is welcomed to companies. people are back on track. take a look at today's ipo.

you can see that it is up 55%. right now it is trading at 48 and a share. it opened up 55%. that is obviously a huge move. goldman sachs and morgan stanley is involved in this. the software is for huge data and, by the way, you see this area that is sort of empty now that you see the before and after, there were hundreds of people all the way out here shouting their orders. they go from all the way over here into the entire floor. it took them about 45 minutes to get this thing open. dennis: the animal spirits are back. thanks a lot, nicole. this just in, the waffle taco.

fast food chains going head to head with new menu items and the battle to your gut this summer. thank you for being with us, rachel. some are short runs, like the mcrib that will disappear quickly, getting grilled chicken. what is better, the short run? >> i think it is necessary to have limited time offers. any sort of cold beverages over the summer. obviously, every couple years, you need a new product platform to keep your food fresh and relevant.

>> in the fast food business, where does my growth as a company come from? does it rely on my trying to steal customers from another fast food rival. this is basically a market share battle in an industry that is growing very slowly. it is mcdonald's, burger king, wendy's. you do see a number of chains trying to go after new parts. they are trying to find a way to generate other things. dennis: i heard that wendy's is sort of retreating a bit from breakfast. do we have any evidence that shows these short run. >> it is just a limited time are for. the idea would be to rotate

them. you are exactly right about wendy's pulling back from breakfast. one of the things that you have to think about, it has to drive profitable sales on the part of the franchisee. it is not like health consciousness is really driving the fast food guys as they come out with these products. a lot of them are pretty fattening. >> i think that is a fair assessment, yes. i am not a dietitian, but i think that occurred. dennis: lastly, you know, you have yum, wendy's, jack-in-the-box, you have neutral on all of these stocks in only one stock you say is a great positive rating and that is -- >> mcdonald's. we said it was a market share battle out there.

when you are having a territorial battle, the gorilla will always win. i think those will be the success factors that will drive that company for many years to come. dennis: thank you for being with us. have a good weekend. cheryl: the powerball jackpot, you saw it during this hour. we are now up to $600 million. what would you actually do with the money if you have the winning ticket. we came up with a few suggestions for you because we are good at this. one of those islands is where one of the assassins used to live. how about a trip to space. finally, for those who would want to be smart and

investments, $6 million could buy you shares of apple. not that i'm saying you should buy apple stock, but i did die a powerball this morning. i am ready to roll, people. dennis: she will share it with everyone on the show. [ laughter ] cheryl: i do not win anything. dennis: bloomberg news. we will talk about that and the editor in chief matt winkler, part of the damage control efforts to reassure clients. we will tell you in the fox business brief why it may not be enough. cheryl: we will have that story coming up in your fox news minute. we will be right back. ♪

we went out a 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's 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. ♪

♪ >> i have your fox business brief. serving as an independent advisor. conducting a turnout reviews for the company's compliance measures. editor at large will conduct a review of the news that this is

the relationship of the company's commercial operation. separately, bloomberg clients are calling for more action. financial times reports some on wall street are now asking whether there was a wall. that would fundamentally change the way it operates. that is the latest from the fox business network. giving you the power to prosper. ♪

dennis: is facebook losing that it fact there? they marked their first year as a public company tomorrow. apparently, they do not want to be friended by their grandparents.

adam shapiro has more. >> for investors, you take a look at what facebook has done. they shot up soon after the $45 a share. right now, trading at roughly $26.40 a share. i do not need to tell you. you are the media expert around here. their revenue was up in the last quarter. they were up to 1.6 billion. some of the ways they are doing this are not ways that people who are in that age great state 18 to 25 really like. they put the ads right on your newsfeed.

dennis: thank you very much, adam. cheryl: we are taking a look at some big movers and commodities right now. gold is on track for the biggest losing streak in years. central banks had a total of 109 tons of gold. china, france, italy, germany and, of course, the central bank right here in the united states of america. we are at the trading pits of the cme. >> i think it is a reason why i continue to say long gold. we get printed money, quantitative easing. they get gold. what is wrong with this picture. we have that big run-up in the stock market in the 1990s. everyone was going crazy.

they got rid of their gold supply to try to get rid of inflation. right now, they are buying gold. usually what central banks want, they usually get. goal today is under pressure. mainly because of the strength of the dollar. if you look at those two currency markets, that is a reason to go to gold as well as this risings dock market. today, the department of energy approved lng exports to non-trade agreement countries. this is opening the door in the beginning of a new era where the u.s. will be a major exporter to other countries. basically, this is the movement. it shows you how the natural gas market has changed. it also means for prices down r.

the more we export, the more we will get more in line with prices around the rest of the globe. it is a new day for natural gas and a host stored day as well. the former ceo of groupon is going back to its roots. he is heading to san francisco to start a new company. it is not exactly clear what the company will be or do. he writes in his blog that the album will be the inspiration for this new idea. the stock really suffered under mason. it has been rebounding.

>> macy's is opening a bloomingdale's in hawaii. the store will be 167,000 square feet and will open by the fall of 2015. take a look at shares of macy's. the stock is up $0.37. it is over. this has been a good story to follow. the group led by indian billionaire will buy 65% of the team for a reported $348 million. it is a victory for kevin johnson. he puts together this group of 30 inventors. dennis, that is your fox news minute. dennis: let's talk star trek.

it is the most expensive home on the market. will anybody shell out, would you spend $190 million for it? we will have those stories coming up. take a look at some of today's winners over on the nasdaq. charles payne talked about one of them. we will be right back. ♪ fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily,e found someone who gave him a fresh perspective on hisortfolio. and with some planning and effo, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.

p5 in today's media minute, star trek into the darkness opens wide tonight. the sci-fi classic could rake into over $100 million this weekend. the disney marvell plot buster opened $175,000,000,000.02 weeks ago. it just past billion dollar

marks. one of the most aggressively self-conscious summer blockbusters ever made. a generic summer flick faintly inspired by some half forgotten culture. "new york times" says it is uninspired pack work. advocates that yahoo! is in talks with tumbler. yahoo! needs to get hip again and appeal to this under 25 -year-olds that dominate the tumbler site. this after reports that they were taking a hard look at lulu. there is the stock right there. talk about something that is going up. the most expensive home on the market. the price paid $190 million.

>> you will have to fork over a lot of money. it has 4000 water on the long island sound. use your powerball money to buy that one. daniel, he is being attacked by president obama. who is he? dennis: melissa and lori talk to kenneth baer. that is next on markets now. ♪ why are twice as many people oosing verizon

over any other carrier? many choose us because we have the largest 4glte network. others, because of our reputation for reliability. or m 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. ♪ melissa: welcome back, everyone. happy friday. i am melissa francis.

lori: i am lori rothman. we have an intense day on capitol hill. congressman of ojai is on the committee. he will be here in moments. the stocks pushing higher towards new records yet again. off session highs. three dow stocks hit all-time highs today. we have the biggest movers all our long. powerball fever ripping all of america. the jackpot just grew again. coming up, we will have some tips on how to spend all of that money. melissa: time for stocks now as we do every 15 minutes. nicole petallides standing by.