promising to "not screw it up". lori: china is at it again. resuming attacks hitting several of the same victims it has gone after in the past. ashley: a growing collection of art and growing homes. charlie gasparino is here. lori: all of that was the markets, of course. back to the new york stock exchange and nicole petallides. nicole: another record-setting day here. we are seeing both the dow and the s&p breaking out to levels we have never seen before. as for the nasdaq, you are also seeing the nasdaq sitting at and even 3500. it, too, hit a multi- year high.

as you can see, we've retraced and move back closer to the unchanged line. futures ticked off and we had some down arrows. it has been mixed. what we have been seeing, for the most part, in this market, is the higher lows and higher highs. new highs for the automakers. we are watching general motors, in particular. right now you see it at 3391. it is worth noting that. obviously, these are some stellar times for the automakers. back to you. lori: thank you. ashley: lawmakers looking to get to the bottom of the irs scandal. now learning that president obama knew the irs is scandals as early as mid april.

peter barnes is live on capitol hill with the very latest. peter: ashley, it always comes down to what did people know and when did they know it. a couple of committees of peer will continue the investigation. the house oversight and government reform committee will be holding a meeting this week as well. a six page letter requesting documents and details about how all of this went down. the president says that he did not know anything about it until he read about the irs's inspector general report. we are also learning, and officials are confirming that some treasury officials knew

about this including jack lew who was told about it why the inspector general himself back in march. a white house aide says, however, it was inappropriate, it would be inappropriate for the white house to interfere with the inspector general's work while that report was underway, while that investigation was still underway. take a listen. >> here is the cardinal rule. you never interfere with and independent investigation. you never give the appearance of interfering with and independent investigation. >> it is more and more obvious to me that we will find out more people knew about the irs scandal then have admitted about it. people will be upset when that happens. they should be upset. peter: yesterday, another republican lawmaker, senator robert portman of ohio, called

for a special prosecutor to investigate the scandal. ashley: peeling away the layers. peter barnes, thank you. ashley: does the iris make a case for a flat tax which are marked my next guest seems to think so. steve forbes joining us now. you have made a name for your self calling for a flat tax. you even tweeted responding to rupert murdoch. it makes perfect case for flat tax. nothing could be fair and abuse free. >> absolutely. they can go after anyone. you can literally do it in a few strokes on the keyboard or a single page.

you can do the same thing on the business side. simplicity is the best enemy of the abuse of power. lori: does anyone achieve this status? >> the nice thing about the flat tax is with the low rate, you do not have these deductions anymore. you do not have to worry about what is a mortgage, what is a home office, and less you have a small business. the terms of the charities, the contributions are tax free. that is where the irs gets power. under the flat tax, that goes away. many worry that this will be the end of charities.

people have more and they give more. that is the way to go. ashley: one of the sidebars that is developing is a handful of politicians and commenters that are coming forward and suggesting that gosh, i was just contacted by the irs, i wonder if it was a coincidence. >> i think more and more are coming out. i think people will be asking themselves is it something that i did to be put on this list. even if the irs did not have her actions from atop, they knew who their enemies list was. they also know that these conservative organizations want a reduced or eliminated irs. you will go after them, knows that think you should get bigger. big government needs big tax collector there.

lori: there is always tax fraud. are they just not able to do that part of their job? if you cannot do a job because some people did some abusive things inside the organization, that should be good news. in terms of fraud, there is real fraud. that should not be mixed up with politics and are you on the wrong side of the political divide in may, after you or you do not like the irs so they come after you. lori: a white house lawyer knew of this weeks ago and did not tell the president. what do you make of the white house reaction now? >> it is amazing that the president apparently did not know anything about anything. the real scandal is officials

knew in 2012, before the election, that this stuff was going on in they let it happen. it is like steroids in baseball. they knew it was happening in they let it happen. lori: fascinating comparison. thank you. ashley: yahoo! making it official that they will bite tumblr. it is a pricey bid, no doubt. dennis neil runs it down for us. dennis: what are they really getting for $1.1 billion? they get 117 million users. this is where yahoo! is one of the first big mass websites that is especially weak right now. how do you make it pay money. they have $13 million in revenue all of last year. roughly, they are paying something like $9.40 per subscriber to tumblr.

right now the service gets about $0.11 annual revenue per subscriber. here is the fascinating thing. when you get on tumblr, the images that you get, there is a lot of great regular stuff, but there is a lot of kinky, bizarre stuff. they are self cutting. people that mutilate themselves. there are bondage photos. there is all kinds of stuff. do advertisers want their brands in this kind of stuff? will you end up offending the very audience that yahoo! is really lying here? ashley: this is paying for audience and already on tumbler, the audience is in rose bowl. our producer was looking for

comments. one said read blog if you are against big yahoo! revolution. protect brands from damage. this will be one heck of a rebalancing act. how does this increase yahoo! revenue? i do not think that it does. ashley: that is a question everyone is asking. dennis, thank you. lori: watching battles for you. gold hoping to end its losing streak. gold has fallen more than 7% just this month. after hitting a 52 week low on friday, silver continues to slip.

levels not seen since october 2010. tomorrow is the vote that we are all watching. jpmorgan shareholders voting whether or not jamie diving can keep both jobs. youuwant to keep it right here on fox business as our own adam shapiro brings you complete coverage from tampa. special coverage all day tomorrow. we do want to bring you to two of the big oil and gas companies. chesapeake energy of by a long shot. robert lawler is there new ceo. he is a petroleum engineer with 25 years experience. ashley: of people -- steve cohen is subpoena. charlie gasparino investigates just ahead.

lori: boeings to minor back in action. ashley: gas prices feel skyhigh. lori: oil is climbing. we are back after this. ♪

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ashley: this is a site that boeing wanted to see. the boeing 787 dreamliner is back in the skies. united flight number one took off from houston on its way to chicago. let's check out how these stocks are doing with nicole petallides. nicole: cute, ashley. you are right about that. everyone has been watching boeing and the dreamliner so closely. back in the air today. the stock is up .1%.

we were watching to see if it would actually cross the $100 mark. the big story here is not just that we are seeing new highs on these two names today, but also that the boeing dreamliner is back in the air again after all of the battery as -- issues. they actually had the 787. they were the only u.s. airline with the 787. this is good news for united continental as well. ashley: thank you so much. lori: it is time to make money with charles payne. why did this one catch your eye. charles: the volume is phenomenal. you have to pull the trigger on it. in the last week, we learned

that a real famous hedge fund guys bought this stock. last week it was revealed that buffett bought a stock. it seems to be the hotspot right now. for this company, it is pretty obvious to see why. the two previous backlogs had said recorrs. they have a vacuum gas oil in europe. they have a new refinery and latin america. a chemical project in china. this is definitely a global play. i like to get in before these conferences. management does a good enough job to convince the stream. this is the kind of momentum that i love. lori: do watch currencies?

>> i think it is something that will be a long-term thing. wall street has a way of knocking it out. i do not think it is a problem. this is not a fly by night company. they have been around for a while. lori: they have a track record. charles: pretty good track record. china's military is back at it. lori: charlie gasparino is always at it. ashley: talking about the dollar. let's see how it is doing today. it is weaker against all of the currencies. the yen is up against the dollar. that is a story in and of itself. we will be right back.

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♪ >> 22 minutes past the hour. i am lauren greene. i have your fox news minute. two people were killed in a mobile home park near oklahoma city and more than 20 people injured after severe weather in the midwest. the winning ticket was sold at a supermarket near tampa for the powerball. north korea fired two more short range missiles into waters off it is caused making it six launches in the last three days. south korea is condemning the action. north korea says it's bolstering its deterrent against an enemy attack. those are your headlines. back to ashley and lori.

ashley: thank you so much. cyber security firm says that china, yes what, is back at it. they went silent over the last couple weeks after the pentagon pointed the finger at them. we have new reports now that those attacks have resumed. >> they put out that report back in february. this is what they tell us, they are continuing operations. the attacks are still active they are also using new commands to construct communications.

basically, they are trying to dodge what we already know is happening by using new strategy. take a look at the map here. we have a map that shows you exactly where it is. it is just outside of shanghai. ashley: they have not even changed the building. >> exactly. what we are finding out is it did not work. the chinese government has said clean up your act. get it together. we are not doing this anymore and yet, it is still going on. space. lori: what will it take?

>> exactly. lori: what can we do to get them to finally that goss? >> obama administration is sending the administrator to china soon. basically, all we can do, nd i think from the u.s. side, beefing up security, watching your networks, that is something that you expect and anticipate. it is a tough call. do not expect any serious progress anytime soon. they have just increased censorship on their people. they have tightened their grip. lori: anyway, that is another story. thank you so much. gas prices spiking $0.13. that will look before very busy

having driving on this memorial day weekend. ashley: record after record. lori: the dow is down slightly today. here is a look at the dow. most stocks are down on the industrial average. we are back after this. ♪

..

lori: stocks now as we do every 15 minutes. a trip back to the floor of the new york stock exchange to check in with nicole and you're watching campbell soup today for us, nicole. >> obviously a household

name that many of us know and we love when you talk about soups. it is the world's largest soup maker. campbell's soup is trading, look down 1.9% at the moment. however earlier today it did move to new highs. the highest definitely since 1999. $48.33 a share. campbell's soup came out with quarterly earnings which were better than expected. they raised the full-year forecast. the stock jumped but since pulled back. but under umbrella not only of soup but peppridge farm, prego pasta sauces. they did really well with sales and baked goods and simple meals did really well. the weak part was the u.s. drink business. back to you. lori: nicole, thank you. we have breaking news here for you. federal reserve bank of chicago president charles evans speaking you now saying that he thinks the fed's policies have been working but interestingly enough here he also says it is possible that the fed

could keep rates low after unemployment hits 6.5%. so extending this accommodating, this accommodative, very eaay monetary policy past that key target because from bernanke as we've been told for the past couple months the target to take the foot off the gas pedal if you will is when unemployment improves to 6.5%. that is really kind of the first we're hearing. of course we'll hear from bernanke himself when he testifies. ashley: wednesday orning. lori: we'll get the minutes from the last meeting. there has been a large call, the chorus is growing getting louder for the fed at very least taper the. ashley: that's true. taper or not to taper, that is the question. the market not really reacting to that news. slightly lower and essentially flat on the day. as the market continues to hit record highs my next guest says the high trading volume is giving him one of the ultimate signs of market confidence. joining me now, peter kenny, chief market strategist and managing direct to you at knight capital. peter, thanks for joining

us. >> thanks for having me. ashley: so from your perspective it is still safe to jump into this rally? >> given a certain backdrop set up like this. p and e supports the market. inflation low. quantitative easing is still in place. earnings season has been very supportive. we have improving macro data in the form of housing, durable goods sales, industrial expansion and employment. all of those factors are working to support the market. that is not to say we won't see some sort of a pullback predicated on some unexpected event but, or something even expected like a federal reserve shift in policy. but that said, the support is there for equity markets and friday we saw a tremendous upsurge in volume. that had an awful lot to do with institutions placing more assets into the market. and effectively giving more support for our current pricing. ashley: so, peter, what happens, is the market jittery enough if ben bernanke starts to really perhaps talk in more terms of tapering down these bond purchases, what does the

market do? >> i think that the market's march higher moderates. i don't think that if the chairman were to say, you know, we have a firm 6.5%. or 6.5% unemployment that would necessarily dictate that the markets sell off, no. i think ultimately what the market will do is really sort of temper the move higher we've seen over the last 4 1/2 months. we go back even further since quantitative easing was initially installed as fed policy effectively the markets have support for for where they're currently priced. if the fed takes their foot off the pedal i don't think the market would necessarily pull back very severely. could it moderate higher? that would be very, very good for the market and give it a more sustainable tone. ashley: right. let it stand on its own two feet. >> exactly. >> that said, peter, which sectors do you like? where are you putting your money? >> i loved home building

well over two years. the home building sector, financials still stand the most to gain, autos, durables, technology, telecom. these have been outperforming the market. they will continue to outperform the market because as the economy continues to rotate towards a more sustainable growth track, you're going to see those sectors of the economy continue to gain the most. in particular, housing which has been a darling but i think has an awful lot of room to grow. ashley: certainly does. you know, it's funny the bond funds are still attracting pretty decent inflows. >> yep. ashley: how do you explain that? >> well, i think that, there is still a fair number of people out there that believe that there is more downside, there is potential downside to the economy because we aren't quite yet on a trajectory or a self-sustained flight path. that's a part of that bet. another part of that bet is the sense that, not everything is okay in the world. there is concern over gdp

expansion in certain key areas of the world. clearly there are concerns over the e.u.. the there is clearly concerns over china, the most recent data suggesting that. coupled with the concerns of the fed taking its foot off the gas pedal are all playing into that bet for all intents and purposes. ashley: but the market continues to march higher a little flat today but my goodness, it has been an incredible run. peter kenny, thanks for joining us. >> thank you. lori: unable to escape the spotlight, the legal battle surrounding steve cohen and sac capital appears to be ramping up now. ashley: charlie gasparino will be here next with exclusive details. lori: i thought that was interesting discussion on people snapping up bond funds pushing yields ever lower but they are snapping back although slightly lower. the 30-year is unchanged yielding 3.16%.

>> i'm cheryl casone with your fox business brief. consumer spending will likely pick up this year, according to new survey by the national association of business economics. nabe is predicting that spending will rise average 2.3% this year. that is up from the february forecast of 1.9%. generic drugmaker activist is buying warner

chill colt for $8.5 billion. the company will have revenues of $11 billion. they will be the third biggest specialty pharmacy company in the united states. the deal expected to close by the end of the year. seamless and stubhub are combining forces. they will cover 20,000 restaurants nationwide. the terms of deal not disclosed. company name and market brands will be determined following regulatory approval. that's the latest from the fox business network, giving you the power to prosper.

lori: sac capital advisors, the giant hedge fund run by billionaire steve cohen, well, it is in unheave develop a as updates on the insider trading investigation continue to emerge. fox business senior krnt charlie gasparino has new details. >> interesting set of circumstances where sac is

-pin this investigation. they haven't been charged criminally yet. there is a civil charge. there is grand jury 'em paneled. they sent subpoenas to steve cohen the head of sac capital. this investigation didn't start yesterday. this has been going on since 2007. they bugged his phone in 2008, 2009, meaning steve cohen's phone. they have been, i would say relentlessly, meaning the government, both sec and justice department relentlessly pursuing him because this is what think believe. i'm not saying this is what i believe. they believe sac capital is firm that skirts the rules. the rules mean insider trading. that much of steve cohen's fortune, $9 billion in that fund, a lot, can't tell you how much they think but a lot of that fortune was developed through the means of doing insider trading or firm subordinates doing insider trading and him profiting being essentially walled off from that by creating this sort of compliance system that keeps

him out of the fray while all the bad stuff is going on beneath him. that is the theory of the justice department. how do they take that theory and get a charge out of it? it is not that easy. we should point out that sac, people at sac told the fox business network just a couple weeks ago, okay, sac went out and denied this to us, we know it is true now, the would basically try to government. sac wanted to do a universal settlement, end everything where steve cohen gets protected essentially. they would probably have to collapse the fund. remember when i was talking about this is it in the ether, people talking about this, they would have to collapse the fund. since he wouldn't be prosecuted he wouldn't raise money again. he could still be in the business. that deal was on the table. people at sac thought the government was moving toward approving that deal. then something happened. i can't tell you what happened. i do know that this thing had happened, that stopped that deal and actually, when the investigation got rump --

ramped up, about the time see cohen bought the art or excuse me, news of his purchase of that art was made public. it was, you know, about a month ago. now, are the two related? i can't tell you. i do tell you that the government investigators were a little perturbed by that art. lori: a battle of hubris going on between the government and cohen? >> they believe he operate as corrupt firm. it is a matter of making the case. when you buy art only reinforces government officials or investigators to do what you think they might do, look harder. we should point out matthew martoma still hasn't flippedded. that is the sac portfolio manager indicted on insider trading charges. before he made the trades had a 20 minute phone call with steve cohen. they don't know what he said. they want him to flip on what was relayed during the 20-minute call. michael steinering about, other sac portfolio manager has been indicted, is not

cooperating as well. many of the trades in question involve stuff that happened in 2008 where the statute of limitations is running out, probably in july sometime. end of july is the date i keep hearing. so the government has to move fast. you impanel a grand jury and you start working. i believe it will be a very difficult to get a case against cohen. i could be wrong. i believe one. avenues based on talking to other people is some sort of a rico charge. where you show so much bad stuff is happening at sac over the past five years it is essentially a corrupt organization and you basically shut the firm down and you can take a lot of the money. you can, remember, rico has some really far-reaching implication. >> yeah. >> i think you can pull back the ill-gotten gains. they can make a case that steve cohen deserves to give back half his money they can do that. ashley: he is not cooperating with the investigation anymore? >> remember, the statement

last friday touched all this off. we all knew it. i came on and quoted john coffey, probably a grand jury is being emfan he would and they want to protect steve cohen. though came out friday no longer unconley cooperate with the government. before they said that, the word was they were fully cooperating with the government why did they put out that statement. they're not exactly a public company but they're a hedge fund. they have made public statements. they said that fully cooperate thing. if their investors need to know if something has changed because let's face it if they do get sued, indicted investors, then they face not just the government but their own investors saying well we have a redemption date coming out. you hid this information. if we knew about the information we would have pulled our money out. the redemption date i believe is june as well. there is lot of stuff going on here. we're on the 10 yard line, right? we're almost there to the end of this thing. it is going to be a lot going on for that 10 yards in the next two or three

months. one of the best things about this from my standpoint, i have a book coming out on all this in july. which it is called, circle of friends. which essentially maps out the relentless pursuit of steve cohen over the last five years. ashley: nice pitch. the way you worked into the pitch. >> i got lucky. i listened to one person. came on fox business, a former fbi agent. he told me that they were going after cohen. asac complained to fox management that we ran the story. ashley: is that right. >> they complained. we were wrong. i was being unfair. i'm telling you --. ashley: now look at it. lori: inside word and last word from charlie gasparino. >> listen, i know the guy. i think he is a decent guy. i don't want him to get indicted. it is not me wanting, but me reporting that the feds are looking into it. that is different here. he is nice man. very charitable. i'm telling you he is. lori: thanks, charlie. ashley: thanks very much. as we do every 15 minutes let's check the markets,

keith bliss on the floor of the new york stock exchange. today we're kind of drifting a little bit. are all eyes on bernanke on wednesday what he may have to say. >> that is the most critical thing that we'll be watching this week aside from the durable goods orders on friday that indicate, certainly what we'll be look at on wednesday. we'll drift back and forth across the zero line today and probably tomorrow. but the market internals are still intact. the advance-decline line looks well and nine s&p sectors that you have spdr etfs on, five of those hit 52-week highs today, four are hovering right there. so the market internals look good. i don't get nervous drifting into the red a little bit today. ashley: probably need it but what is the volume like, keith. >> running average right now. that is where we'll be for the remainder of the day i assume. ashley: all right. keith bliss. thank you so much for joining us. we appreciate it. >> my pleasure. lori: overbroad and abusive of the those are words from associated press president over the department of justice's record grab.

ashley: gas prices, yep, guess what? spiking 13 cents in just two weeks the outlook for the busy memorial day weekend. lori: let's look at the winners and losers on the nasdaq on this session. back after this. ♪ [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fighting you? fight back fast with ts. calcium-rich tums starts working so st you'll forget you had heartburn. ♪ tum tum tum tum tums all your imptant legal matters in just minutes.

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lori: all right. we finally heard from the associated press president over the weekend calling out the department of justice and its investigation into journalist phone records on cbs's "face the nation" yesterday saying the justice department's methods were so sweeping, so secretively

harassing and overboard it is a unconstitutional act. joining me fox news contributor arthur aidala with what could be the ap ace next move. you're the perfect person. >> they asked him is the associated press taking any legal action? he said it is too early to tell. we're seeing what is going to happen. what he said was the associated press already feeling the effects. government officials now won't speak with them because they're afraid that the subpoenas are going to be issued again and they will see that person's phone number. that person will get in trouble for violating some sort of confidentiality. lori: take us through this, if the government is fearful a leak is jeopardizing our national security what is the right way to go about investigating journalists? >> okay. so --. lori: journalism 101 in a way. >> a leak, it has to be more than the, you can't subpoena the entire newsroom. lori: right. >> you have to say, we think it is lori who is doing it or lori and arthur doing it and use your phone and my phone.

you can't say, let's grab the whole newsroom. we'll look at the all the outgoing calls. basically they wanted to see who called the white house or who called the cia or who called the fbi. where was that leak, who was calling from the associated press to get that story. that's the bottom line. that's what they were trying to do. they were trying to get a source of a leak without calling someone, without calling you to the stand and having you raise your right hand and swear to tell the truth and you invoke your privilege of the press of not giving up your source. lori: what does your instinct tell but the nature of the story that the doj was so freaked out about? do you think they had no other option? do you think that the information would come to light? >> in other words, lori, it better be the case, that they had no other option that your life was in% jeopardy, my life was in jeopardy. they thought in the best interests of the citizens of the united states of america this is ahead this do because, short of that, this is not good. lori: yeah, no. >> i can tell you the real world i live in in new york city, a judge, if you came

in and said, i want to subpoena the whole office, they will say you can't subpoena the whole office. not 100 phones. mr. aidala, you have to be more narrow what you want to do. that was not the case here. looi: we're learning fox's james rosen was investigated by the doj for a story he did back in 2009 i believe regarding north korea. do you think this is the tip of the iceberg here, how far-reaching the doj will go to investigate journalists? >> i hope not. that is very strongly in the realm of possibilities. let's face it. it is called the first amendment for a reason. the founding fathers knew that the press in some degree was going to act on check and balances to the check and balances of our government, and to stymie that or hamper that you better have a very good reason. i'm not saying there are no reasons that could exist but we better hear a pretty good one and relatively soon. lori: it has gone on couple weeks already. let's have it. >> it would put the story to sleep if they came out with something much more powerful. lori: thanks, arthur. >> pleasure to be here.

thank you. ashley: feeling squeezed at the pump? you're not alone. today marks 15 days in a row of gas price increases. in the past week prices jumped 13%. the pain at the pump is outages and maintenance cushing output in refineries in illinois i, oklahoma and can kansas. memorial day weekend around the corner, how much worse or higher could prices go? earlier on market's now dagen asked gas buddies tom kloza? >> i don't think we'll move too much higher. the market is getting a little frothy on the west coast. we're past peak on the east coast and should have plenty of supply on the gulf coast and many states along the east coast. i expect prices will be about where they were last year. ashley: that was tom kloza from gas buddy. always makes me nervous when somebody says i think we'll be all right. i think there is as high as they will go. lori: i think we're

programmed to pay higher gas prices once memorial day weekend comes on. ashley: conspiracy theory lives on. lori: it is still lower than this time last year. ashley: true. lori: something to be relieved about. ash and i will stick around for another hour. how about that? ashley: let's do it. lori: yahoo! is making a bold statement with its billion dollar purchase of tum letter. with "barron's" jack how much. how the deal might turn sour for yahoo!. another hour of "markets now" headed your way. so now i can help make this a great block party. ♪ [ male announce ] advair is clinically proven to help significant improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers

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lori: good afternoon, 2:00 on the east coast. i'm lori rothman. ashley: i'm ashley webster. it is merger monday on wall street with yahoo! buying tumblr for more than a million dollars. a bigger deal is rocking the drug industry. barron's editor jack hough looks at pluses and minuses in both of those tie-ups straight ahead. lori: we had earlier gains

in the session but evaporating here. the dow and s&p hit new intraday records, bmo private bank chief investment officer jack ablin tells us the biggest risks to this market right now. ashley: a bigger question on whether some in the white house knew about the white house political targeting well before president obama found out. we'll have the latest on this fast-developing story coming up. lori: first at the top of the hour time for stocks with nicole petallides on the floor of the new york stock exchange. nicole, what is weighing on the markets today? >> what we're watching the dow jones industrials back and forth over the unchanged line. that is not unusual to see lately. it has doneto find some footing. but the point is we continue to break through new highs. while we have seen the back and forth action the trend remains to the upside. today, for example, the dow broke through, made a new all-time record high of 15,391. getting closer and closer to 15,400 on the dow. nasdaq is slightly lower as

well as the s&p 500 is down just over one point. worth taking a look at names though hitting new highs, multiyear highs, including jpmorgan, morgan stanley, goldman sachs and citigroup. four out of five names are holding onto up arrows. citigroup naming new head of the privatebank and goldman sachs raising over a billion dollars from an estate sale and morgan stanley selling off wealth management assets in india. those are pieces of news making these guys news around there. adam shapiro don't forget, live from the jpmorgan shareholder meeting in tampa. we're waiting for this one. we'll follow that tomorrow whether or not they will split mr. jamie dimon's roles as chairman and ceo. there was an interesting article pertaining whether or not that is good or bad idea in the "wall street journal." often successful companies don't separate. lori: thanks for the update, nicole. ashley: it is merger monday

for yahoo! taking over tumblr for a billion dollars and actavati joining me now. jack hough senior editor with barron's, who won and might have lost out on today's deals. let's get to the one that is starting a lot of conversation, yahoo! taking over tumblr. pretty aggressive move. will yahoo! get what they want out of it and will tumblr be hurt by its association with yahoo!. >> this has the revenue of lemonade stand in a good neighborhood. this goes back to the dot-com days about eyeballs. with so many companies talking about monetizing massive traffic using ads, how many ads will we sell? how much stuff will people buy as we find out new ways to monetize this massive number about pages? it brings ad rates down. i don't think these companies will ever recognize as much revenue as they think from this

gigantic traffic. ashley: what is yahoo! buying? a very young audience but a big young audience but what is the danger? that you alienate them? >> they're buying growth. page views are up big for tumblr and yahoo! is struggling to grow. they say they will leave it alone and it will look the same and not do anything to alienate losers. at the same time we're spending more thhn a billion dollars so we'll do a lot to make more money. which side am i to believe? you need a lot more in the way of ads. you need to change things around. i'm not sure which side of the story to believe. side being told to tumblr users or the side being told po wall street. ashley: that is interesting this out, because theypoint permit nudity on tumblr, a much more risque, racy postings on there. could that alienate yahoo! advertisers? >> boy --. ashley: that is do they want to be associated with that? >> i'm not the online nudity

expert at barron's, i want to point that out. maybe there are different corporate cultures here. people are not paying that much to use the service. they're setting up blogs for free on tumblr. tumblr users will go on about their business. yahoo! users will be fine. i don't think there is lot of money to be made. if you ramp up number of ads i don't think you make much money on each ad. when you put up a billion dollars and yet to show any meaningful revenue, boy that are is big risk for yahoo! shareholders. ashley: it really is. let's talk about the much bigger deal in the pharmaceutical sector. actavis, purchasing warner in chilton, a irish company. >> this you don't have to look far at all to see the upside. this company has good revenues and profits, reasonably price. actavis their stock is up huge. spending cash to buy the company, not paying cash,

spending essentially inflated stock price which is shrewd move. right in way you reincorporate a island. bring the tax rate from 28% down to 17%. ashley: not bad. >> only loser i see is uncle sam missing out on federal revenues chasing another corporation overseas with high tax rates. ashley: actavis puts out generic drugs once the drugs lost their patents, right? >> right. they want to get more branded drugs. although chilcot doesn't have the fastest growth in the past for its revenues it has a number of key approvals thht it has just gotten that really make its portfolio more attractive. so you're really buying growth. buying it at a reasonable price, you're paying stock and save money on taxes. it is a win-win, win. ashley: as opposed to yahoo!-tumblr. >> that is why actavis is up. ashley: m and a activity, will we see more of this? is the environment more conducive. >> i think so. where is the revenue growth?

it is nowhere to be found. what do you do when you have no growth. you try to buy it. ashley: they have the cash. jack, thanks so much. appreciate it. >> thank you. lori: let's talk commodities, gold in particular which is fighting back. precious metals struggling to find a direction. very volatile trading. gold has been down seven consecutive sessions before today. there is my friend jeff flock on the floor of the cme talking about the gold trade. what are you seeiig? >> giant sucking sound here in commodities. not just gold and silver but other commodities. scott shellady is with me. look at gold, what it is doing now, i said a you can ising sound. money comes out of gold and silver to go into equity that is making more money. >> slowly but surely folks don't want to miss out on the big rally we've had. there is every opportunity for the metals to trade higher, bad news, 85 billion a month, we're printing, printing. there has been recent news maybe we need to taper off. stock market is not.

we'll still taper to keep the normal base going higher. >> we're looking intraday, last two days essentially on gold. have we hit a bottom now? if we look at those charts, the gold and the silver it looks like a bottom. do you think so? >> no. and the reason i think not we had some folks earlier, paulson, soros, say get out of your gold now. goldman sachs jumped on board. we had a big flush of the trade after that. we're having another big flush. we'll trade back after that and continue to see the downward trend. >> before we get away, i want to tell you, lori, the other things that are moving today. that of course is crude oil. wti is up almost a buck. nat-gas up another 2% today. i'll tell you, exporting natural gas thing continues to get legs on that. lastly i mentioned gas prices, rbob, because gas prices have been up now, what is it? my numbers say 15 days in the a row. >> generally speaking the trade believes this nat-gas thing does have some legs. that really could be that gets us out of our problems on top of any recovery we

have. that is five-year solution but ultimately could be the solution. >> bottom rhine for me over here, lori, this sucking sound with a lot of money coming out commodities scott has time to talk to us because you're not trading as much. he has nothing better to do. >> no. we have to come talk about equities. that is where the game is. -pit will be that way for probably another 18 months. >> scott, nobody says it better. that's the latest from the floor of the cme. lori: that really sucks for scott. thanks, jeff. ashley: say so much and we won't. coming up, new questions about when white house officials knew about the irs targeting of political groups. fox news's judge andrew napolitano will have his spin on that. lori: plus, is the record stock rally running out of steam? a lot of people say this is the only game in town. scott shellady said that pretty much. we'll be joined by leading strategist jack ablin. he will share his outlook just ahead. here is another look at oil. you heard jeff mention oil

and metals. back after this. all stations come over to mission a foa final go.

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lori: all right. let's make money with charles payne. this hour he is talking about caterpillar. despite news looking bad it could be signaling a turning point for caterpillar. >> we'll do a little education here, guys. caterpillar came out with the april numbers. retail sales of machines were down 9%. so you know, if you kind of hear that doesn't sound like good news. this why i'm more all the people watching the show, with your holdings, don't just listen to people on tv. learn information for yourself. ashley: do your homework. >> i want to pull up a chart what happened over the last three months and why this down 9% is actually something of good news. if you notice from february, march, april, coming from your left to right, the numbers have gotten better each time.

asia-pacific was down 26, 24, 20. europe, africa and middle east down, 9, 8 and 3. last tin america up 3, 12, 28. rest of the world down 13, 11, 9. we talked earlier in the show, guys about these big investors, soros, buffett, tepper, buying into these gigantic construction companies are making a lot of money around the world. dovetail that with this kind of information, that is why this stock isn't down. it was up over a buck earlier today. of course caterpillar, you know, they have had a couple of bad numbers. they missed two quarters in a row. this is what i'm always looking for to stay ahead of the curve. if i'm in the stock i feel like it is good news. lori: looks like a 787 is about to land. that boeing 787 with the battery. ashley: at chicago o'hare's

airport. united flight of a 787 dreamliner. they have been out of commission 123 base with the lithium-ion batteries overheating and smoking and everything else. they have the fix right. that is lovely sight for boeing. >> certainly is, guys. ashley: we actually made a flight. >> that is the lesson for today. just don't take the headline. a lot of time investors see news that good news, stock is down. bad news the stock is up. take the extra step. health and wealth is worth putting extra effort. down 9% is good news and caterpillar may be turning around. lori: beat the street. >> that is how you beat the street. ashley: thank you, charles. coming up to quarter past the hour. time to check the markets. nicole petallides on the floor of the nyse. guess how off then we go there? every 15 minutes. nicole. >> we're looking at movers including barns and noibl, bks, the ticker symbol. it is up 8% today. another headline for

barnes & noble, a name surrounded by plenty of headlines this month of may. here's a look right now. we're talking about the simple touch to get a new web browser, e-mail, update the store app for the nook touch line of ereaders that is being reported by tech crunch. that is citing a source close to the matter. we've heard from "barron's" about shares having potential upside. we talked recently about microsoft. you see that big pop. that is when the thoughts that microsoft might be interested in the remainder of nook it doesn't already own. we saw the stock above 23 bucks. down to 19 and change. now jumping up to 21.61 at the moment. a little volatile with each headline. back to you. >> nicole. thank you very much. we'll be back at the bottom of the hour. lori: congress gearing up for new round of hearings for the irs scandal. there is some evidence that the people in the white house knew about the targeting. judge andrew napolitano

weighs in next. ashley: the dow is off 22 points. the dollar though today, has been a little weaker. all the currencies are up against the green back, including the japanese yen. we'll be right back.

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>> at 19 minutes past the

hour i'm lauren green with your fox news minute. more severe weather is forecast for the midwest. this comes a day after dozens of tornados struck oklahoma, kansases and iowa. two people were killed at a mobile home park near oklahoma city and more than 20 are injured. >> in connecticut officials warn it could take a week before commuter train service to new york city is restored. this following friday's derailment and collision near bridgeport where 72 people were injured. repair crews are rebuilding 2,000 feet of track, overhead wires and signals. more poor people now live in suburbs than in cities. that is what a new brookings institute survey found. the amount of poor jumped by 67%. a much larger increase than urban areas. social services in the suburbs have been struggling to adjust. those are the headlines on the fox business network. i'm lauren green. now back to lori. lori: thank you, lauren. lawmakers are learning that the white house counsel's office knew about the irs

actions against conservatives as early as late april. this is two additional hearings are scheduled this week in an effort to get to the bottom of the million dollar question, who at the irs is responsible? peter barnes live on capitol hill with the latest. peter? >> that's right, lori. it is continuing to be, the controversy continues to be about the question, what did people know and when did they know it, is that right? that is always the big scandal when a question like this pops up. press secretary jay carney getting hammered on those questions right now in his daily press briefing. two committees here in congress will continue to try to get answers to those questions in hearings this week. the house oversight and government reform committee has a hearing on it. the senate finance committee will have a hearing on it. in fact the senate finance committee, sent out a six-page questionnaire to acting irs commissioner steve miller asking for all kinds of information in 41 separate questions. and, separately, the, there

are some republicans here who are concerned about some remarks that a top obama aide said about all this weekend. take a listen. >> the law's irrelevant. the activity was outrageous and inexcusable and needs to be fixed so it never happens again. >> you don't mean the law is irrelevant. >> i mean whether it is legal or illegal is not important to the fact that the conduct, doesn't matter. the department of justice said they're looking into legality of this of. president will not wait for that. make sure it doesn't happen again regardless how that turns out? >> republicans are being careful about how they make political hay out of all of this. they say they are just going to continue to drill down into it and seek the facts. take a listen. >> the first four years of the obama administration everything was george bush's fault. now apparently everything is nobody's fault because nobody is taking responsibility for the government anymore. >> and yesterday we heard

from another republican lawmaker, senator rob portman of ohio, calling for a special counsel to look into the case. lori, back to you. lori: so, this isn't settled by any means. we've got two more hearings on capitol hill this week. my goodness. ashley: all the layers being peeled away. for more on the irs's scandal we're joined by fox news senior judicial analyst, judge andrew napolitano. judge, we talked about this. it may not be illegal. it may be unconstitutional. but as for criminal activity it will be hard to prove if it is there at all. >> the behavior which the irs has admitted is not criminal. it is unconstitutional. er here is what they have admitted to. they admitted to applying greater scrutiny to documents filed by taxpayers seeking exemption from the ordinary tax rules because of the speech of those taxpayers so they have preated people differently because of their speech. that is prohibited by the first amendment and they have treated people

differently for unlawful or unconstitutional basis. that violates the fifth amendment, the equal protection clause which says similarly situated people, applicants for tax exemption must be treated in similar way. you can't take media matters application and stamp okay and take tea party patriots application say we need another 4,000 documents. i'm giving you these two by way of example. ashley: what peter barnes was saying looking into the legality of this. >> the justice department is trying to reflect attention from the white house. here is the issue with respect to the white house. ashley: yeah. >> the president said last week, here's the question to him, can you assure us no one in the white house knew about this before your counsel learned of it on april 20 twek? answer, i can assure you i didn't know about the inspector general's report, not the behavior of the irs, the inspector general's report, until it came out last friday. if the president knew what the irs was doing, lori,

this goes back to '09 and 10. the president ran for re-election in 2012. if he knew about this and permitted it to happen so that the scrutiny of these conservative groups would keep them from affecting the outcome of his election, you're talking i word, as impeachment. lori: yeah. >> the issue when the president know, what did the president know and when did he know it is profound importance. as to what the justice department might find, there are allegations, the irs has not admitted to this, there are allegations from taxpayers that their private information got into the hands of those who wished them ill. that is, people on the other side of the political spectrum. lori:. ashley: right. >> if that information passed from the irs to those people, that is, if irs agents leaked information that was filed in support of these applications, that would be a criminal event and hopefully the justice department would prosecute it. lori: it's fascinating.

you bring up the "i" word, impeachment. but i mean, the fact that it is so as you put it earlier so difficult and, frustrating to peel these layers off, when you see why the administration is being so guarded but is there a way legally or illegally, the question of legality seems to be pushed aside at this point to get the bottom of this once and for all without all these machinations. >> so far the president held a press conference. much permitted two questions. one to him and no follow-up questions. that question and answer i summarized for you about anybody in the white house, he goes i didn't know about the ig report. mr. president, i wasn't asking about the ig report. i was asking what did you know about the irs, the irs behavior. look, george will had a great column last week. in the column he quoted one of the articles of impeachment voted by the house committee against richard nixon. it could have applied precisely to barack obama.

and he has used the internal revenue service to harass his political opponents by imposing greater obligations on them than on those who disagree with him. that appears to be exactly what's happened here. that's why what did the president know and when did he know it is of paramount know it. stated differently, did barack obama do what richard nixon was almost impeached for doing. lori: what i want to follow up, judge, we as average americans, can we personally sue the irs? is the government working for us or -- >> individuals who will need to spend a lot of extra money with their lawyers and accountants because the irs imposed greater scrutiny for political reasons can sue the irs. but if the irs comes back with a numerical reason, a nonpolitical reason, they're going to lose the suit. but there will be many, many of these lawsuits. it will be difficult for the irs to defend all of them with some irs based as

opposed to politically based reason when almost all the groups got extra scrutiny are libertarian and conservative and almost none of the groups that got extra scrutiny are liberal or progressive. lori: infuriating. really. >> it is infuriating. like a lot of these things there is probably more to come, lori. hold your fury. lori: tip of the iceberg. ashley: yeah ittis the tip of the iceberg. judge, thank you so much. >> pleasure, guys. lori: amy poehler on "saturday night live", please don't audit me. lori: a plane landed. ashley: plane landing, we showed you this in chicago a few minutes ago. dow jones reporting that ceos of both boeing and united were passengers on this 787 flight from houston. again it was united's first dreamliner flight since the plane was grounded nine months ago. ceos of both companies making a point saying it's all good. lori: we survived. ashley: yeah. no burning batteries. lori: watching the markets

here, stocks are holding back though off the worst levels of the session. the dow is off nine points right now. big money manager jack ablin will join us next. tells us what he is watching to gauge the markets next move. ashley: first let's take a look at some of today's winners and losers on the s&p. first solar is there. have a look. jc penny, what? there you go. on the winner's page. we'll be right back. i want to make things more secure

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>> it is half past the hour. the dow more red than green. in the pharmaceutical sectors,

merck is mmving down. cisco is down. nicole petallides standing by. nicole: back-and-forth action as we have been watching, winners and losers on the dow. virtually flat down six points ever hitting record intraday all-time highs 15,391 getting closer and closer to 15,400. not too far off from those levels. today also taking a close look at coverage of a company with a buy rating and price target of $31 spun off by the dutch financials company in early may. $19.20 on may 2, breaking out, and in addition to saying it is attractive and undervalued also sang as a potential takeover

target and that is a kind of language that gives the stock a bid. stuart: thank you very much. >> are there headwinds in the forecast? chief investment. ho-hum, and other intraday high for the record, what do you see the overall health of the stock market? >> there are five things to watch when we try to market and right now it is fueled by a lot of liquidity and positive momentum. we see credit spread still very tight, lenders still willing to lend, so all systems go. and of course momentum. we will watch advanced declines, and everything seems to be a go on that front. the concerns, valuation and the

economy. speaker at some point those two factors yield record lows. at what point was that become a problem? >> at some point when investors begin to realize there is a big valuation gap between the fundamental underpinnings like earnings, revenues, economic growth and value of stocks. we are certainly frothy, but at some point the fed will face a choice, do you want 1700s and p with unemployment above seven, will you keep the throttle on, or are you going to start gearing back evenly have not hit six and a .5%. lori: even if unemployment is six and a .5%, the fed will still maintain the ease.

you better be all in the stock market, right? >> we will continue to monitor momentum and for right now all systems go. i will say charlie evans, our chicago fed president is probably among the most of the fed board. so i think you have to remember that is more of a street view then it is the collective view. lori: we do have a lot of events on wednesday. if we do get some indication of a tapering everybody has been calling it, could that be a catalyst for selling? >> it is possible, it is hard to really know. a lot of the money flowing into the equity market is from would be bond buyers who are not happy, so having yielded rise incrementally will make them

sour more on it. at least the price steady, that could push more people into equities at least near term. lori: lot of people have taken note of this entr into reciproc. sometimes the super call. what are you favoring right now? >> what that is telling me is rather than would be bond buyers dividend plays, they are coming in to buy more of that play. overall, our play is discretionary, telecom and financials. lori: thank you. >> all of this week on "the willis report," take a look at your medical privacy.

you say your health information including medical data, history treatment and even your shopping habits at the pharmacy are the next big frontier of the battle of consumer privacy, so some information is being shared, and how? gerri: everything. prescription data, the hospital, your insurance information, your policy number, it comes from the doctor's office, from the insurer. and it is shared or sold to the pharmacy, to people who collect and manage information to sell it to employers. somebody may be applying for a job may have this information front of them that maybe you didn't pass a medical test recently. a lot of it starts right here. they track your every move. they are watching everything you do, the minneapplis man, teenage daughter targeted with ads in

the mailbox for diapers and a.b. furniture. target found out before dad did because they were watching her buying habits. medical data is really valuable. posted privacy clearinghouse, here is what she told me. >> this data is the most valuable personal information about you. more valuable than anything. many people know information like your social security number is valuable for identity thieves. it cost between $0.50 and $1 to get a social security number. but through medical records identifiable patient records can be bought for 14 to $25 each online. gerri: so think about that. your medical data is worth more than even your social security number. the bad guys know that, and they

come after you. there are rules you are not supposed to share this information but physicians and hospitals don't pay attention to it. health and human services said virtually everybody in the sample pool ignored the rules because they didn't have time to think about it. they didn't even know them. we will be covering this in detail as we change our focus to consumer, we are looking out for you, so don't miss it. lori: we are neighbors, so he probably shop at some of the same stores. it always gives you bonuses, but i guess the payback is they are monitoring every little last purchase. i don't want everybody knowing about. ashley: thank you very much. don't miss "the willis report"

tonight at 6:00 and 9:00 on fox business. lori, it hasn't passed in net sales bill yet, but some are spending the extra money. details ahead. ashley: take a look at the 10- and 30-year treasuries. we will be right back. this is america. we don't let frequent heartburn ce between us and what we love. so iyou're one of them people who gets heartburn and then treats day afr day... block the ad with priloseotc and don't get heartburn in the firsplace! [ male announcer ] e pill eachmoing. 24 hours. zero heartbur

>> this is your fox business brief. testifying before the grand jury government insider trading investigation into the hedge fund. legal sources told charlie gasparino it is because of that subpoena they announced they are no longer cooperating with the investigation unconditionally. gasparino reports announcement followed recent meetings with the southern district of new york regarding the status of the trading probe. china is back at it again, hackers for china's corporation went silent over the last few weeks after reports the pentagon blamed them for attacks on american corporations and computer networks. confirming to fox business the attacks have resumed using new strategies. that is the latest on the fox business network, giving you the power to prosper.

ashley: a growing number of states are already planning ways to spend online sales taxes even before congress has approved that very new tax. with more on this story, elizabeth macdonald. authorities spending it and have not even got it. liz: you have to spend money to make money. what we're talking about is $23 billion in new internet sales taxes. this hasn't even passed the house yet but already we are hearing a number of states have plans on how to spend the money. we're talking about maryland, virginia keeping taxes low. others say we could cut the personal income tax, the thing is again, the supreme court's decision has been out there since 1992 to 30 interest tax could be killed due to the next 92 decision saying retailers can

only collect sales tax if they have a physical presence in the state. they have to say we cannot enact this because of the supreme court's decision because they are talking about one online retailer saying this will be a death by 9000 taxers because you have 9000 different taxing jurisdiction. so i don't think this thing flies, the fact of ways to spend it. california talked about how to spend the facebook ipo, and what did california have to do? they expected for the facebook ipo. and then the problem with this, states doing it, when they start penciling in their budget of how much tax revenue they expect for future taxes and that line item stays in concrete and they have

to raise other taxes to meet the line item. ashley: do you think this will end up back in front of the u.s. supreme court? >> there is a really serious issue on if this faces the future in the house, and net sales tax, but who knows, i could be wrong. we will stand top of that. lori: it is a quarter until, an update on the stock market as we do every 15 minutes. we're joined by keith. the market searching for little direction, but would you say the overall trend of this polish rally, the huge move is anyway equated? >> the bullish posture remains in the market. turning back and forth across the zero line today does nothing to keep us away from that, the

market internals are very good shape, tracking momentum into the market still looks very good and what you are seeing is even though you're looking for the comment on wednesday, it does not look like anybody is worried they will pull the punch bowl a way anytime soon. ashley: city as they go. "star trek" winning the weekend box office, but falling short of key expectations, details next. lori: back after this. 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. ♪

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ashley: the new box office film when the box office the opening weekend but the news is not as good as it might sound. dennis: "star trek" fared well over the weekend but not well enough, they spent overr3 $200 million to make and market this film hoping to get it off on the right foot. iro"iron man 3" over a billion dollars worldwide and the great gatsby which when the box office last weekend. the figure is for the three days. "star trek" lost out to the great gatsby and the embarrassment of any self-respecting trekkie fan boy. "star trek" taking in $33 million in the 33 cities.

appealing more to a female audience it turns out with "star trek" audiences, many of whom couldn't find a female dates to bring to the flick. a weekend later, the hangover part three makes his premier and another film made by guys about guys for other guys. turning a profit for paramount? so far that did not compute. lori: people say this is more entertaining than iron man. lori: i think the nostalgia and the commitment to the "star trek" franchise will take it to the finish line. ashley: it could turn out they did not turn out for the first

weekend of appeals. lori: we have to split because we have breaking news on the irs scandal. releasing new details about when the white house officials knew about the agency targeting of conservative groups. peter barnes has the latest details in washington as always. peter: it looks like they're trying to get out ahead of some of the hearings we are going have here in washington this week, including testimony on the treasury secretary himself tomorrow and the latest is the white house is acknowledging that the council was told on april 24, about a month ago, on the primitive findings of this inspector general's report on the irs and targetinn conservative groups, and did also inform white house chief of staff on this, and other senior staff members about this

politically damaging report on this inappropriate screening of the applicants for nonprofit tax-exempt status. take a listen. and informed official staff, and in that information she made it clear it was her view that is was not a need in a situation like this with an ongoing investigation or audit that the president should be notified. >> in the white house and carney continue to insist the president knew nothing about this until the media reports a week ago friday and left the white house did not intervene in any way in the inspector general's ongoing report. dr. you. lori: the president learning about what is going on through the news. ashley: thank you, peter. apple will begin production of a

new ipad in july. it will be the fifth version of the large model ipad, thinner and lighter. that is what they always say. 30% less than the current model they say the new ipad will be out in september but this paper a little bit of a mixed track record on product news like this, so we will have to wait and see, but it could be ipad mock five. lori: liz claman is here to take you to the last hour of trading this monday afternoon. examining if yahoo got a good deal snapping up tumblr. and are thereabouts to be new arrests, charlie gasparino has the inside scoop. [ male anuncer ] $3.95 a trade.

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tumblr saying the blog will not merge into yahoo. but why are users dumping their accounts today as yahoo snaps it up. prosecutors circle hedge fund when possible criminal charges. big investors getting jittery as blackstone reportedly pulling on a change. and worried about going bust in the next big bubble? stay away. "countdown to the closing bell"% starts right now. liz: good afternoon, everybody, i am liz claman. for the first time ever, the russell 2000, small and mid-cap index surpassed the 1000 level today.