lori: minutes away from a look at the new xbox. microsoft unveiling its first major revamp and eight years. ashley: the horrific scene and oklahoma. more tornadoes are expected today. >> our prayers are with the people of oklahoma today. we will back up those pairs with deeds for as long as it takes. lori: devastaaing news out of oklahoma. we want to update you on the market. let's head to the new york stock exchange and nicole petallides. nicole: we sell the dow jones industrial average today break through 15,400. it has since pulled back some. however, you still see these up arrows and a record-setting day on wall street.

we are watching the s&p 500 over the last week or so. we have notice, once again you have seen the momentum continued to the upside. they have to wait in the momentum remains to the upside. there is a nice one week chart there for you. urban outfitters is coming under pressure. game stop and under -- game stop another one. they are saying by. lori: we continue to follow the jpmorgan news. jamie dimon keeping both roles. adam shapiro with the latest. >> up 2% today.

yes, he does keep the role. 32% of shareholders voted for the split. let me interpret what this means. i want to introduce you to michael garland. he is representing the new york city pensioners. essentially, you were in favor of the split. that is down from last year. how should we interpret that. we expect a higher vote in last year. ultimately, today's vote was a referendum on the board oversight of risk. some try to make it a referendum on jamie dimon leadership and that is not what it was about. those votes did land against a set of directors on the committee. in regards to mr. diamond in the board, this has been a problem at the bank.

it was an internal investigation and 2012 regarding the london whale problem. it did not go back before 2012. is that a problem? >> it is about putting a government structure going forward. there is a precipitous loss of regulatory confidence. >> we had talked earlier about the grand fisher report. why is that problematic? >> i think jpmorgan has been subject to more regulatory functions. they are very clear. it costs the bank both in dollars and reputation.

there are significant weaknesses that are putting their business at risk. we have not seen the board take those issues on in terms of the composition of the board or its leadership. >> michael garland, thank you. coming up at 2:00 p.m., we will hear from mike myope. what is the plan for succession going forward after jamie dimon? should there eventually be a split if there is someone stronger? lori: news that we can all use. thank you, adam. breaking news. the latest comments from william dudley. saying that the current fed exit plan is "stale and needs a revision." he says there is a risk markets

will overreact to tightening and we cannot be sure what the fed's next move will be. keep in mind, mr. dudley is a close confident of mr. bernanke. tomorrow we will get the latest minutes from the last meeting and the chairman himself, turning key, will testify before congress on capitol hill tomorrow. a lot of said news coming your way. this hour, we will speak with arel o'donnell to get a little setting up ahead of these events. ashley: let's go back to jamie dimon. investors liking the news. we have the director of financial services research at morningstar. he joins us now. this turned into a referendum on jamie dimon, instead of the bank managing risk.

do you agree with that? >> i do agree to some extent. with the additional referenddm on the chairman and the ceo split, i think a lot of it came back to jamie dimon. ashley: over concentrated power in the hands of one person is normally not a very good idea. in jpmorgan's case, does it work? >> i think it can work. a very powerful leader can do a good job. i think the greater issue is balance overall. whether it is separating the chairman or ceo or having a board made up of people that spent their whole years in leadership positions. as long as there is some sort of challenge, some sort of balance, i think that is all that is

necessary. ashley: it is interesting, do you think something like the london whale would have been preventive if jamie dimon did not hold both roles? >> no, i do not think so. talking about war buffet, he said the ceo is the chief risk manager. if you will not hold jamie dimon anyone responsible. it is really jamie dimon responsibility. dennis: his track record is pretty good. when it you argue he has been doing a pretty good job? >> succession is now becoming an

issue. obviously, they have run into some problems of their own. someone as good as jamie dimon cannot keep the bank under control, who can do a better job? that is a great question. ashley: thank you so much for joining us. >> take you for having me. lori: these are live pictures from microsoft headquarters. a company unveiling a new xbox. the first revamp in eight years. we will have more details and pricing information, whether or not this has went eight software on it. lots of details to come. ashley: very original.

the man in charge of the irs targeting conservative groups is in the hot seat. the finance committee looks to get to the bottom of the scandal. peter barnes in washington, d.c. peter: this is the latest here in a series of meetings on the irs scandal. if the investigation will be pursued to where ever it leads. kind of a shot at the white house here. while the white house counsel and the president chief of staff both knew about this issue, they did not talk to the president about it. separately, one of the witnesses is the inspector general of the irs and he said as far as he is concerned, the investigation may not be over either. >> suffice it to say that this matter is not over as we are

concerned, in terms of our next actions in this matter. >> you believe there will be further investigation on this issue? >> there will be continued review by us. if it leads to a continued investigation, that may be the case. don: jack lew was also up on capitol hill testifying today. he felt that the report by the inspector general showed that the conduct was not politically motivated, but it was unacceptable. lori: thank you. ashley: we will have more on the devastating tornado and moore, oklahoma.

lori: you heard from federal reserve bank president bill dudley. we are deciphering it all ahead of turning key's testimony tomorrow in washington. ashley: gold down again. silver and copper also heading lower. we will be right back. ♪ [ male announcer ] at his current pace, bob will retire when he's 153, which would be fin if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age.

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is cnecting today's leading companies to places beyond it. siemens. answers. lori: a quarterly market check since it is a quarter past. nicole petallides on the new york stock exchange. nicole: we are still in earnings season. we wanted to take a look at some names on the move that are having some new 52 week highs. beginning with home depot. today is no different. they came out with their quarterly numbers. we saw their earnings jumped 18%. coupled with some tough weather,

hurricane sandy and we will watch what happens with home depot. people run to home depot. saks, medtronic, dick's sporting goods, autozone all hitting highs. back to you. lori: people out there spending. ashley: let's go right to dennis neill in the newsroom with the latest details on microsoft's new xbox. dennis: the most important being is priiing. the xbox one, microsoft introduced the first one in 2005. eight years later, now comes the second model. microsoft dominates the videogame industry. it is neck and neck with sony

playstation. one new feature that you will love is always commands. they added that in the connect. now it is even more elaborate. it will allow you to switch between television, games, music and phone. the console business is down. down 25% from a year ago. they give up the console to move online. this is the center of the digital entertainment in your living room. they have something called snap mode. it will let you do multiple things at once on the same screen. you can watch television and do a web search. one thing clear from this event today, guys, microsoft, you are

no apple. they have everything but the rockettes practically. it is really kind of quaint in this day and age. the xbox 360 from microsoft, it has sold 76 million units around the world. 40 million or so are in the u.s. some say that that successful $10 billion a year consumer business is buried and the slow growth utility and that maybe someday you want to spin off a chunk of that videogame business into a separate stock. back to you, ashley. ashley: thank you. we are waiting on how much this will cost. lori: i think xbox one is a nice clean sound. i have to ask him about content.

ashley: in the hot seat today, the man who is in charge when the irs was targeting conservative but if groups. lori: lou dobbs is next. ashley: we have the latest on the ground in oklahoma after that monster tornado killed more than 20 people. that area on high alert once again today. we will be right back. ♪

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♪ >> 22 minutes past the hour. i have your fox news minute. rescue crews have pulled more than 100 survivors from the rubble. texas governor rick perry has sent texas task force one to help. the only search and rescue team is arriving with 71st

responders. meteorologists are predicting more severe weather on the way. three other states, texas, arkansas and louisiana facing threats. those are your news headlines. lori: thank you so much. we had a reporter on the ground covering the events in oklahoma. because of bad weather, we want to check in with them. things are very tense. in the meantime, back to politics. former irs chief testified on capitol hill today. a result of a new usa today poll showed three in four americans showed will make it harder, surprise, surprise, for the president to accomplish his goals in his second term.

the people who have been the commissioner of the irs, traditionally, it is a job because of their integrity, their public service, their success in life. we have had a stream of functionaries put into that job of who bring with them no cachet of accomplishment, of service that is significantor dramatic as we would want in nearly every department. the internal revenue service, all of this happened because they were unaccomplished and confident. this was embarrassing.

senator korn and trying to get the man to apologize with what happened. a president that is seemingly uninterested in and those little about governance. this is the result. this is a government out of control. the issue of motivation. are they simply unbelievably incompetent. i think we will find that there are examples of both in this administration. by the way, there is no credibility. it does not matter who they put up there. these are, these are ppople that will believe no matter what they

say. i am going to use only the nicest expressions to describe those contradictions and ms. representations. this administration has watched its credibility over the past few weeks dissipate. ashley: you just do not have these robe workers in cincinnati lou: we, as americans, have always been plainspoken and common sense spoken. if there are americans who believe this president was the only one in the white house who did not know what in the world was going on with his

government, then we have lost that common sense, i believe, as the people. i do not believe that at all. this is an administration that is in a crisis of credibility, a crisis of corruption, a crisis from which i am not sure it is recoverable from. 73% of folks say it will make it very difficult for this agenda if he continues at this rate. it will be utterly in the dust bin of agenda history. lori: these lame duck presidents, it just is not fair to the american people. again, if we are so absorbed in reese candles right now, it is

just frustrating that the reform that we need, corporate tax reform, we heard tim cook this morning. lou: think about that. arguably one of the top five companies in america. brought before a congressional hearing. i am just going to say this, very gently, folks who do not obviously know a thing about what they are talking about, instead of bringing forward to that hearing the ceos of the companies that were funded by the obama energy department for political purposes and fulfillment of obligations to cronies and corrupt ideological colleagues and there is no inquiring to them? this is madness. this is utter madness. lori: well said.

thank you very much. always wonderful to have a conversation with you in the afternoon. ashley: apple ceo also on capitol hill today as lewis talking about. he has his own tax issues that have lawmakers asking some tough questions. lori: to taper or not to taper? the next 24 hours crucial for the markets. bill old donnell is next. ashley: take a look who is up and who is down. we will be right back. ♪

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ashley: timeefor stocks now as they do every 15 minutes. nicole petallides. the dow of 71 now see 20 you see the dow jones industrials up 71 points and trading as high as 15,418. record intraday all-time highs for the dow and s&p. another record-setting day here on wall street. have to take a look at carnival cruise lines. they have been plagued by so many issues. the stock is down 4% today. they slashed full-year earnings.

when you do a comparison between carnival and royal caribbean, carnival is lower gear today. royal caribbean still doing great this year. lori: a crucial 24 hours ahead here for the bond market. how is the treasury market reacting and what is the message in all of it? great to see you. thank you for joining us. what are you looking for here? >> over the last week or two, we have heard from nonvoting fed presidents who have said nothing really good about quantitative easing and it has raised a lot

of fears. now running at $85 billion a month. the bond market and stock market have each responded. bonds are up for the first time. the stock market, as you said, of over 70 points. i thought bullard and dudley were quite clear. they still have concerns about the economy. i think it means more to you he, at least through the summer, probably longer. that means higher stocks and lower bond yields. if you go back and studied the lessons of the great depression and look at such things today,

things like money velocity measures, money multipliers, corporations are still holding cash. that is keeping households, you know, holding onto cash. keeping them relatively low in preventing this economy to breaking out into orbital velocity. lori: i know the fed is a key driver for the bond market right now. there are also reports showing that money is flowing out of commodities into fixed income. are you seeing that as well? >> well, you know, there are a lot of moving parts. there is recent evidence that there is money spilling out of japan. but we also hear and see money flowing out of the low income fix markets in many cases a

cheaper equity market. lori: what do you think could trigger a bond market selloff? people have been predicting the great rotation forever. i think it will come from at least three important indications. one is if we start to see bubbling signs of inflation. i think that would start the fed to rollback with quantitative easing. secondly, you know, if the fed somehow deems that the u.s. economy is on a sustainable growth path, they would likely pull back on qe and even start

tightening. again, i just think that we have to watch the world markets. if europe starts to show a recovery, china starts to show new growth. lori: bill o'donnell, thanks a lot. >> thank you. ashley: charlie gasparino will be here next. we will be right back. ♪ is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me? and you ar your voice? oh, it's exciting! [ man ] touchdown confirmed. we're safe on mars. [ cheers and applause ] ♪ hi. [ baby fussing ] ♪

♪ >> i have your fox business brief. americans got better at paying their credit card bills in the first quarter. the rate fell 19% from the same time last year. apple once again taking the number one spot. the technology giant is worth more than $185 billion. coming in second is google and ibm at number three. s&p is planning to hire hundreds of people with autism. the german software giant is teaming up with an organization that helps people with autism find technology jobs. that is the latest with the fox business network. giving you the power to prosper.

♪

>> mary jo white. white kal garcia. and others. now we have three. what is interesting rudy did, he threatened back in 1992 to go after drexel by using rico. raketeering influence core are -- corruption something law. it is one of most powerful law enforcement weapons cases. threatened by rudy giuliani.

there we two. organizations act. used against mobsters. rarely used against white-collar targets. but as we were first to report yesterday on the fox business network something clearly weighed by the u.s. attorney as he looks at sac capital. why is that? i should point out it take as little more to do this type of case, right? you have to show years of predicate acts, sort of activities that is, within an organization and that organization, which is run by a certain person like, steve cohen, that organization has kept those profits in the organization. keeps resigh killing the same practices over a period of time. it is a little harder to show than straight insider trading case, in cohen's case, their dream case would be michael martoma, former portfolio manager allegedly trading insider trading on the two drugs stocks. if they got martoma to flip is atae i did it with

insider trading. he hasn't. it take as little longer. from what i understand they have what they believe what they believe is illegal trades that have gone on over a long time and if they wanted to they could really press the rico button. here's the best thing from a law enforcement standpoint. there is, i don't think there is a statute of limitation or there's a limited statute of limitations on the martoma case. remember, that is running out. those are actives occurred in 2008. if martoma doesn't cooperate before july when the five-year statute of limitation runs out they can't go after steve cohen on that stuff. that stuff is done. >> clock's ticking. >> the clock's ticking on that. >> if you have a rico case, show predicate acts show them over a long period of time there is no such statute of limitations. there are statute of limitations in rico cases but it's different. you don't have to show the five-year time. if you show stuff going on over a long period of time, you can rope all that into a

major case. from what i understand, talking about this a for a long time, that's what they're weighing here. that is the potential weigh way to get the guy they think is running an organization that made money illegally through insider trading. i'm not saying he didn't. he says he didn't. sac capital says steve cohen believes he has done nothing wrong. he has not been charged, we should point out. the man is innocent until proven guilty. he hasn't been charged yet. the company has been charged civilly. clearly from inside the u.s. attorney's office, inside the sec, which only brings civil cases u.s. attorney brings criminal cases there is a belief that he runs an organization that is, that makes money trading --. ashley: does the threat of rico up the chance that is one of these employees will flip? >> i think it ups the chances that steve co -- cohen, i don't know this for a fact, this is my surmise, at some point steve cohen will go and say, here's what

we're willing to give you. we were first to the report that cohen and the sec put on the table. close down sac. defered prosecution. no one gets prosecute the. he would restart the fund and do a redo. i don't think they like that for a lot of reasons, but that came, those nepg shuns were going on when he was buying the art. i think that play ad little role. not a big role but a little role. i think this forces, remember what milken did. they were throwing everything at him, okay? they were basically threatening drexel with rico. they were threatening him with rico. he came to the table and said, give you have my net worth. milken was worth 2.2 billion. gave them 1.2 billion. agreed to 22-month jail sentence. drexel was shut down over the threat after rico filing. credit. as any wall street firms knows, sac is a little different. what i see from the situation is what i see. don't think it is going to

happen. they say they're innocent. this is where i see this going possibly where you work out a similar deal. steve cohen gives back, remember, his net worth is in that fund, 9 billion. they take a chunk of that. close the place down. he is barred from the securities industry. and that's that. he will fight that like crazy. he has great lawyers. by the way, rico is controversial. peoole think it is unconstitutional. people think it violates certain, you know, rights for defendants. we'll see. ashley: following it closely as always, charlie. we appreciate it. lori: thank you. ashley: as we do every 15 minutes we get back to the markets. the dow is off session highs. mark newton on the floor of the stock exchange. mark, new session highs. we said this yesterday but what could ben bernanke do to these markets tomorrow? are you expecting him to say anything that will move the markets? >> well i think it's interesting, you heard some of dudley's comments earlier, if anything he was overly ambiguous. he didn't want investors to overreact to the possibility

of normalization. the market continues to be resill nlt here. we have been up 9%. a lot of traders are ready to exchange dow 15,000 hats to dow 16,000 hats. we're only 4% away. seeing weakness in defenses which is typical after risk-on type move. technology is weak today. tim cook is testifying about tax loopholes down in washington. and you know, that is basically what we're working on today. so, market continues to be overbought. see signs of sentiment concerns. seasonality, those are worries. ashley: yeah. >> but the bottom line is, we're seeing relatively no weakness in europe. no signs of credit deterioration. even though earnings have seen some sort of deceleration and a slowdown, nothing really matters right now in this market and so the parabolic rise is simply continuing. >> nothing really matters to this market. you're right. mark newton, thanks so much. >> thank you. lori: you heard mark talk

about tim cook on capitol hill testifying. well the ceo is defending its company against accusations it is dodging taxes. ashley: microsoft unveils the new xbox i and sony already firing back. lori: a lot of winners with the dow up almost 70 points. let's check the nasdaq. a couple of outperformers indeed. biogen up 3.6%. nuance communications climbing 3 1/3% and vertex corporation up. back after this. this is america.

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ashley: breaking news for you. more details on microsoft's new xbox i. sony firing back. dennis kneale is in the newsroom. dennis. >> during the microsoft presentation rudy puts out a tweet of its own trying to

steal thunder, see it first, p s4 hardware revealed coming june 10th at 6:00 p.m. pacific. the war is on, guys. watch the price point. we don't know that yet. microsoft beat playstation 3 coming in at much cheaper price. we haven't seen when they will price this. could be pricier with all the futures. is this a game player at all or the coolest remote control for television in the world? you know, with the kin exhook up it wan read the heart beat. microsoft owns skype. you can see a live tv picture on screen all the time while you play the games. they will show you trending tv shows and a list of tv's most popular and on demand all of it operated by vocal commands. watch tv. xbox on. local "tv guide" with local tv listings. fan at this football apps that pop into the screen as you watch television football games. we have the smart tv everyone has been looking

for from apple, microsoft thinks that's what they're delivering today. of back to you. ashley: dennis, thanks so much. interesting stuff. lori: big news this morning, apple chief executive tim cook testifying before the senate permanent subcommittee disputing report on the tax strategies. liz macdonald with emac's bottom line. >> we have breaking news. rand paul blasting congress, instead of a tim cook to sitting before us we need to a giant mirror, which is the real problem. apple adheres to the laws congress makes. this is we should apologize to apple. they said apple didn't pay taxes on $74 billion or other income taxes overseas. they avoided via irs units. carl levin calls these phantom shell units and shipped away money from the u.s. and avoided u.s. taxes. here is what tim cook saying the senaaor's report and senate has it all wrong. take a listen.

>> we pay all the taxes we owe every single dollar. we not only comply with the laws but we comply with the spirit of the laws. we don't depend on tax gimmicks. >> so what he is saying it is irish unit. this is international headquarters. it is not a shell operation. it is international headquarters for apple. employs 4,000 workers. oversees 2/3 of global sales for apple in places like europe, middle east, africa, india, asia, and pacific. it does manufacturing, customer service, supply chain and finance. these are not shell operations. the money is parked overseas apple tim cook is saying that 61% of apple revenue comes overseas. lori: even the senate report says apple has not done anything illegal. >> apple said they negotiated rates with the irish government. they pay u.s. taxes on investment income from irish units. pay local use taxes and u.s. taxes overseas for the

units. if you want to change the laws. we'll abide by the laws. if you want to simplify the code we're willing to pay more corporate taxes. saying that high 35% rate is the problem. ashley: emac i spoke with rand paul's office this morning he is fired up about this. he is outraged. >> is he tweeting bit too? lori: i have to check. not quite sure. you can bet he will come back and this, any other proposal for corporate tax reform especially for companies that are profiting from overseas. >> interesting stuff. good stuff. lori: we'll follow up. coming up senator orrin hatch demanding answers after asking the irs about political targeting for months. the top republican on the finance committee which held today's hearings joins us coming up on fox business. stay with ash and me. we'll be right back. all stationsome over to mission a for a final go.

this is for real this time. 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 cnecting today's leading companies to places beyond it. siemens. answers. ...amelia... neil and buzz: for teacng us that you can't create the future... by clinging to the past. and with that: you're history. stead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in erything from the best experiences below. to the finest comforts above. we're not simply saluting history. we're making it.

lori: welcome back, 2:00 here in new york. i'm lori rothman. ashley: i'm ashley webster. a new milestone for the dow. the blue-chips index trading

above in it is for the first time ever. stocks building gains on hopes that the fed money printing, that it will not stop anytime soon. the biggest movers coming up. lori: new the irs scandal. gop senator orrin hatch accuses the outgoing commissioner of lying and blasts the white house for calling the hearings a sideshow. he is a special guest ahead. ashley: apple ceo tim cook hitting back to critic that is the tech giant uses tax gimmicks to avoid paying their taxes. an analyst joins us straight ahead. lori: nicole petallides from the floor of the new york stock exchange. nicole, 15,406. people say it will not drop anytime soon. >> what we're watching, you're seeing all up arrows. momentum continues to the upside. goldman sachs, to, raised their year-end price targets not only for this year, 2013

but 2014 and 2015. they continue to see up side potential year after year going forward. so the mow men testimony -- momentum remains to the upside. dow jones industrials trading as high as 15,418. nasdaq at highs and setting its own records since 2000. watching home depot at an all-time high once again, unof many dow components hitting all-time highs here day after day. they're doing well on their sales, their outlook, the aftermath of hurricane sandy helped them along. there is a 10-year chart which really reflects the action over the last year or so. as i noted a all-time high for home depot, adding 17 positive dow points. back to you. lori: nicole, thanks. ashley: our next guest says even if the rally slows buy on the pullback and just keep on going. sam stovall is s&p capital iq's chief investment strategist. he joins us now. sam, thank you for being

here. look, even if, we may be nearing some sort of a top, i heard that many times before. if you think the market is still generally undervalued and there is still room to the upside? >> hello, there ashly. absolutely. when you look at things from a fundamental perspective, meaning looking at price to earnings ratios going forward, looking backwards by 12 months, no matter which earnings you look at, the market seems to be undervalued compared to the long-term averages by anywhere from five to 10%. that said the technicals, the chart readers, and we have a very well-respected one here in mark, the belief that we're bumping up against resistance and that we probably could see a bbt of a pause before we move higher. ashley: so you say, look, you like some of these high beta stocks, and you say the best way to take advantage of these, one, invest in the s&p 500 high beta, etf. you think that will give a

lot of return for the investor? >> well, if you were looking to add some octane to your s&p 500 portfolio, what you could do is look on either end of the s&p. you've got the high beta, those are 100 stocks with the highest trailing 12-month standard deviation or volatility. and then you've got the low volatility group which has the lowest trailing 12-month volatility. and recently we've been seeing the high beta group significantly outperform the low volatility group. we've also been seeing rotation over a longer term period be confirmed by an upward move in this high beta category. so, shpb, which s&p capital iq has an overweight recommendation on. you can look to that etf. or you could look to one of 12 stocks that i screened in the 500, high beta stocks. those have --. ashley: yeah. let's go to consumer discretionary. we have some of these stocks up there for you. you like ford motor company?

>> that's right. ashley, consumer discretionary had the greatest number of stocks in the list. consumer discretionary had ford, goodyear tire, harman international, part of the consumer electronics and pvh corp. four companies that are for more of the consumer side of things. ashley: on the energy side you like neighbor industries. you highlighted that one. >> nabor industries has high volatility but has a buy recommendation on our an lift and strong by buy our quantitative system. ashley: you like hartford financial and prudential financial? >> add to that metlife, three companies in the financials, sectors have done very well over the past several months. it does have good leadership potential at this point. i think investors are finally realizing it is still undervalued. ashley: also on the industrial side, do you like joy global? textron as well. >> exactly. we're starting to see the

deeper cyclicals show a bit of improvement. and so the feeling is go for those that have been overlooked. ashley: and, let's finish this up. the materials with alcoa, that is obviously a standard name and eastman chemical as well. >> that's right. not very exciting names. more of your deeper, later cycle performers. and then they think because of high volatility because of also, because of the favorable investment outlooks they could be outperformers over the months ahead. ashley: as we see this move into cyclicals, sam, and there are those, growing number of people that believe that europe is actually bottoming out, i don't know what it is based on, but there is that kind of belief out there, we could set ourselves up for a strong second. >> that is a possibility. s&p economics is looking for annualized gdp growth in excess of 5%, for each of the final two quarters of this year. s&p capital iq analysts are looking for earnings to be up, oh, six plus percent for the final two quarters of

this year. as i mentioned before valuations are not factoring the potential of a better than expected growth here and also, looks as if we probably will see bottoming in the european union's gdp growth in the third quarter. and possibly eke out a ppsitive annualized performance in gdp in the fourth quarter of this year. ashley: very good. all right. very optimistic. sam stovall of s&p. thanks so much. >> my pleasure, ashley. lori: so jpmorgan chairman and ceo jamie dimon getting a vote of confidence from the bank's shareholders. adam shapiro is in tampa, florida, with the latest. >> that's right. the people who wanted the shareholders voting in favor of the split of the ceo and the chairman's role were never, they say, against jamie dimon. they want him to concentrate solely on being the ceo. well that number of people, those shareholders had roughly 32.2% in favor of the slit split. that was less than 42% that

voted in favor of a split in 2012. we spoke with mike mayo of sla, he told us one there is tremendous performance underjamie dimon. value of the stock, no need to tell you is at a 12 year high today. stock is trading up just under 2%. this according to some people might tarnish dimon's reputation. >> the stock price performance under jamie dimon as ceo is better than that of any large bank ceo. but that is the last seven years. the real question is the next seven years, did jamie dimon get too complacent. did the board get too complacent? did some of the managers get poo complacent. the meeting is a wake-up call that you better keep your focus. shareholders rights is reaching tippingpoint. chairman ceo split would not be a first issue. are boards rubberstamps for management? dove have accountability and oversight? is there an adequate successor and are they

simply a rubberstamp? >> mr. mayo asked that question and he was told that the board is not a bunch of wall flowers for mr. dimon. but no successor, no one is identified, very easy to make comment that, there is a plan in progress and there are things that are taking place. but really not quite an answer to mr. mayo's question about a successor for jamie dimon. and when i spoke to mr. mayo afterward i asked him what did you think of about the back to you. lori: adam, okay, thank you. there is so much more ahead on this busy news day. gop senator orrin hatch joins us. he says the outgoing irs chief lied by omission to congress. senator hatch is our special guest. that is just ahead. ashley: apple ceo tim cook on the hot seat over billions of dollars of offshore tax savings. business roundtable chief john engler says, apple is not the problem. owe explains ahead. let's check out hoyle -- oil

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lori: it's time to make money with charles payne. this hour it is all about transportation with yrc worldwide. hey, charles. more and more sexy deep cyclical stocks. does this fall into that category? >> absolutely. doesn't get any sexier than trucks. the diesel. yellow freight roadway. the company was actually founded in oklahoma city. shoutout to everyone struggling in oklahoma. ashley: yeah. >> this stock has been remarkable. it pulled back a little bit today, believe it or not. it hit 25. i think there is profit-taking which is good because i still think people can get into it. earlier this month they reported for the first time in six years consolidated operating profits. you guys remember they went through a near-death experience. they had too much debt.

the economy fell apart. it was in terrible shape. ashley: yeah. >> now here we are where the company is clicking on all cylinders. revenues are starting to turn around. they're actually talking about buying arkansas best. arkansas best saying they don't wanttto be bought but that would be one heck of a deal and street thinks maybe it will be a deal. insiders are buying 37,000 shares. not a lot. seven insiders bought. they beat the street in each of the last two quarters. earnings consensus for the next two years have gone up dramatically. they're proprojecting a loss of fiscal 2014. next leg up could go is significantly higher. people feel like they're definitely chasing it. going into thursday, fordham law university and they will give a conference and update. i think we'll hear big news. lori: my burning question on the coopany, is it just a domestic play or similar to the company we were talking about yesterday whose names escapes me which is

concentrating on global growth? >> this is domestic. they survived the worst. reinvented itself. got a new ceo. did a lot of things that had to be done and they're well-positioned for any up ticks in the economy. ashley: arkansas best is three times the size of its market cap. >> really is interesting. ashley: trying to -- >> really is interesting. and also interesting because yellow got in trouble. they made a lot of acquisitions. they took on a lost debt. i think the street wants to see this deal done. even if it is not done i love watching things turn. revenue per00 weight turned, revenue per shipment turned in the first quarter. i think this thing will do very well. i always ask lori a trivia question. you can chime in. ashley: sure. >> yellow freight, what color are the trucks? lori: green. ashley: orange. >> swamp hollow orange. lori: is it swamp hollow. >> swamp hollow orange. we need to way to make the trucks safer on the road.

they went to dupont. swamp hollow orange. lori: will you wear a tie in that color tomorrow? >> i probably have one. lori: so, this could be a good leading indicator for economic growth. >> could be. anyone thinking u.s. economy is turning around, look at it. thanks, guys. ashley: swamp hollow orange. love that. great name. quarter past. time to check the markets. nicole petallides on the floor of the new york stock exchange. nicole, carnival cruise lines, we know it's had a rough couple months to say the least but now the company is forecasting rough waters ahead. >> absolutely. obviously they have been plagued by so many mishaps. some worse than others. that being said they have had to lower prices in order to woo the customers back on board carnival cruise lines. down 4% today, because basically they're not, obviously gaining revenue and margins they had hoped. going forward they continue to try to be competitive against royal caribbean. meantime carnival cruise

this year is down over9%. royal caribbean up over 8%. royal caribbean is doing well while carnival continues to struggle to try to get themselves up and out of a obviously a series of tough, tough goingings. we talked about the capsizing over in italy. the gulf of mexico when it was stranded for five days and other issues as well. so carnival continues to struggle. back to you. ashley: very good, nicole. thank you so much. lori: on deck the senate finance committee grilling irs officials about the agency's extra scrutiny for conservative groups. the panel's top republican senator orrin hatch is up next. ashley: first look how the u.s. dollar is moving right now against these foreign currencies. the dollar is stronger but the euro up a little bit. lori: back to 1.29. ashley: nice and easy, huh? we'll be right back. why artwice as many people choong veron

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7. >> 20 minutes past the hour, i'm patti ann browne with your fox news minute. in oklahoma rescue crews pulled more than 100 survivors from the rubble of homes, schools and a hospital. the oklahoma medical examiner has confirmed 24 fatalities, including nine children. oklahoma's governor says 237

people have been injured and that the city of moore will rebuild. the town's fire chief says crews will search the entire community of 56,000 at least twice more, to make sure no survivors or victims are missed. meteorologists are predicting more severe weather with tornado potential on the way in several states. the national weather service issued a tornado watch for central and north texas until 7:00 tonight. those are your headlines, i'm patti ann browne. back to lori. lori: just devastating. thanks for the update, patti ann. breaking news on the financial markets. there is a look at the dow reaching fresh intraday record with a gain of 90 points, 15,424. 15,43 is intraday today. we're at 15,425 now. put away your 15,000 hat. people are looking for 16,000 hat. someone was joking about

that earlier. he may not be far off the truth. remember, 4:00 p.m. eastern is the close. it will be the 22nd record close this year. ashley: and counting. stick around a couple minutes we'll have another new record. lori: the fed, everyone is expecting the foot to stay on the gas. ashley: that's true. former is commissioner in congressional hot seat. peter barnes in washington, d.c. with the latest on this story, peter? >> ashley, while this hearing was going on there were also protests around the country by tea party activists against the irs. want to show you video right now of the protests that took place outside of irs headquarters here in washington, d.c. this morning. about 20 to 30 tea party activists out there with signs and out on the sidewalk in front of the irs building, protesting the targeting of irs employees, of tea party and conservative groups that were trying to get their tax-exempt status. doug shulman, is the former irs commissioner who was in

charge of the irs when a lot of this was happening. he was up on capitol hill testifying at the senate finance committee today but the real confrontation came between the ranking member, the top republican on that committee, senator orrin hatch and the, the acting commissioner of the irs steve miller, who had sent, who had responded to letters from senator hatch and other senators about this targeting and senator hatch said that he misled and perhaps down right lied, out right lied to the senators in his responses. take a listen. >> why did you mislead me and my colleagues, my fellow senators and most importantly the american people by failing to tell us what you knew about the exact subject we were asking about? why didn't you tell us? >> mr. hatch, i did not lie. >> you what? >> i did not lie sir. >> you lied by omission. youuknew it was going on.

and you knew that we had asked, you should have told us. >> i answered the questions, i answered them truthfully. >> today is miller's last day as the acting commissioner. tomorrow, budget, obama budget official, dan werfel takes over as the acting commissioner and the president and treasury secretary promised that werfel will hit the ground running and will report back to them within 30 days on changes he recommends to make sure that this kind of thing doesn't happen again. ashley? ashley: peter, good stuff. we appreciate it. peter barnes in d.c.. >> you bet. lori: we're so pleased to be joined by senator orrin hatch, the ranking member of the committee. senator hatch among the key questioners as you heard from peter's report former irs commissioner douglas shulman and acting commissioner steven miller. senator, we like to begin with the sound bite we just heard, asking mr. miller why he misled you and lied to

the american people. >> i did not lie. you said he lied by omission. why you satisfied with the any of the testimony? >> no. he was giving excuses all the way through the hearing. miller are, i sent two letters, signed by a number of republican senators, we were very concerned about this. in both cases asking him about these problems and he is special little -- especially the irs asking for don't nor lists contrary to their rules and contrary to the law. he basically and, he just basically sent letters back that didn't have any reference to what he knew and how he knew the irs was not doing what was right. so that is why i said to him, you lied to me. lori: it is frustrating indeed why does it seem like we're getting nowhere with this investigation? we had hearings as well. house ways and means on friday and i know you're on the record here suggesting perhaps administration did not want to deal with these irs targeting conservative groups until after the election? >> well, that's right.

looked as though they were just defering everything just to get by the election while at the same time, they were maaing it very difficult for conservative groups to get approvals. and they used this spike in 501(c)(4) applications. what they didn't say there was larger spike in 501(c) 5 applications which are union supporters. they didn't do a doggone thing about that in other words, what they were trying to do, in my opinion, was stop conservative organizations from being affected -- effective during the election year and try to get them until the election year was over. frankly, they're denying that type of stuff, but my gosh, what else could it been. lori: is it your belief the irs had a strong influence in the ultimate outcome of the 2012 presidential election? >> let's put it this way. they didn't go after the gorpg soros type 501(c)(4)s. they didn't go after all the wealthy democrat 501(c)(4)s

when the so-called spike occurred. they just went after the conservative groups. look, we should not have the irs going after anybody, not conservatives, not moderates, not liberals. they should be down the middle doing what is right. clearly they did not do what is right here. lori: so the american people, rightly so are intimidated by the irs i think it is fair to say. >> oh, yeah. lori: in the wake of this scandal. it has become big and political. how do you suggest reforming it? >> who isn't afraid of the irs? most people are terrified when the name comes up, because they are afraid they could misuse the law to try to hurt them. i've seen it time after time. i think most employees at irs arr really decent, honorable people who do a good job. but let's face it, there's a union at the irs which is one of the toughest, meanest unions in the business. frankly, you know, i think there was a real effort to try and sway the election and not let these other groups get their 501(c)(4) status so they could raise

money and help in the case of the tea party, people that they thought were good. they didn't always think i was so good but they had a right to participate, you know. lori: fair point. so what do you think should happen? i know that mr. miller has been ousted. are firings enough? do you think perhaps, he should be held, mr. miller, in contempt of congress for your statements today? >> i actually don't wish anybody any harm but i do feel that he has been disingenuous in some of his answers. you know, it's a tough spot to be on. i mean he clearly did not handle it right. the irs didn't handle it right. he clearly didn't come back, where he had an obligation to come back and say, look, senators, i may have misled you. these are the facts. no, he didn't do that and he should have done that especially since we're members of the one committee that really overviews the irs. you would think they would want to cooperate with us. lori: stepping back, senator, bigger picture, obviously the ceo of apple, tim cook,

is testifying as well about apple's tax practices. it leads me to my follow-up here about overall, the overall need for corporate tax reform. the tax code across the board is complicated. does this scandal, all of this fuss and concern and fear of the irs right now put the need and the priority of tax reform in this country down to a lower point on the agenda? >> well, as far as i know, apple was living within the constraints of the law as it exists. it points out why tax reform is so essential. these mon are overseas. we would have resolved that a long time ago with republicans because we could have come up with a bill that allowed them to repay treat those monies back here and this economy could be going better. why come back when they have to pay 39%? they can just do their business overseas. that is what the corporate leaders did. if they had done otherwise they would be criticized by their shareholders and be sued. if there is ever a reason

for tax reform, not just corporate tax reform, what is happening the way some people don't pay any taxes. but, they're living within the law as far as i can see. and they had a right to do that. it's the law that's wrong, not the corporations. and we need to change the irs code, make it more responsible to the american people, make it more efficient and workable and simplify that doggone, god awful bill or, you know, he irs code that nobody understands. lori: right. top down, reform at the irs, and tax policy, hopefully coming our way. >> right. lori: senator orrin hatch, a pleasure. >> pleasure to be with you. ashley: well-said. another unintended consequence of obamacare. a possible increase in identity theft. gerri willis has details in a specs week-long series concerning your medical privacy. lori: we want to show you some of the day's winners, mostly winners. there are a few losers here. we're in record territory, again on the dow.

we're at 15,407, if you cann3 believe it. back in a moment. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future. by clinging to t past. and with that: you're history.

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♪ lori: okay. breaking news. oil snapping a 4-day winning streak closing down $0.55 per barrel at $96.16, a loss of one-half of 1%. prices still elevated and looking at higher prices and to memorial the weekend. ashley: so about 90 minutes, less than that until the close. another record close. nicole petallides said the nyse. here we go again. >> reporter: another day, another record. if the dowel at 15,409 right now , so that is interesting

for the bulls out there who are hoping that they get higher and higher fee. but also we are watching clear wire as we see the up arrows. sprint up one 1/4%. there wire up nearly 5%. this is as sprint moved ahead and the reasons is the black -- buyout offer. the idea was the stock had been trading above the offer, so there were going to convene, an the idea was many believe that they would reject the previous offer in order to avoid that they up to the bid, some of their going to up push and have another shareholder meeting on may 30. sprint says this is there best and final offer. from 340 up from 297. back to you. ashley: to either leave it. thank you so much. lori: president obama's health care law aims to save money by creating a nationwide system of electronic medical record-keeping, but that specia series this could be more harm

than good. >> let's imagine that all of your medical records are in a cloud, a unsearchable databases on the internet. what does that mean it? it means that thieves will stea and make money off of your identity. this is a tragedy for people because it can be hard to find out about its cellular from the insurer saying that gasted bypass you had you have not pai for yet. you might find out that way, an in your medical record is changed. maybe someone has a different blood type that you did and now you're being treated in numbers zero. your history on record. ashley: all of this information when you're the victim you're presumed guilty until you compare your innocence. very difficult thing to do. what saves other in place? >> there are no safeguards. it is all i knew. here's a map that shows where this happens, and if you notice it is in the sun belt states, florida, a lot of seniors.

and foster's can get access to medicare, basically. scanning the government some $40 billion per year, and this kind of fraud you have to be very careful. i mentioned before that it changes your records. what you have to do is come bac and try to chase them back. it can be difficult to get your own records. you have a right to them. you have to apply in writing an sometimes pay a fee. it is difficult, but at the end of the day a lot of people star paying attention to this, especially now when your record are going to be solo accessible by some many people. lori: nothing is private is seems to me. all right. don't mess at 6:00 tonight. ashley: the devastation in oklahoma after a massive tornad ripped through a town just as that of oklahoma city killing a least 24 people president obama pledging to provide assistance by those affected for as long a

it takes. rich edson is in washington d.c with more. >> reporter: still too early to know if congress will approv more money for disaster relief. lawmakers are already discussin additional feral funding in sparring over whether to borrow more money to pay for it. oklahoma senator says if his state needs more federal funding , that is unclear now. connress should find programs elsewhere in the budget to cut. democrats must disagree. >> look, it bogged down in a fight over offsets. i do believe that when it comes to emergencies the american people expect and hope for from their government that we are acting appropriately. think we wait and see just what the assessment is of the damage. >> we will work with the administration of making sure they have the resources of the need to help the people of oklahoma. >> reporter: congress appropriates it half billion

dollars in disaster relief for the fiscal year. the government spent more than 5 billion on hurricanes and the fee, so the automatic spending cuts took about a billion more, leaving more than 11 and a half billion in disaster relief for the rest of the fiscal year. a white house expects the federal emergency management agency has the resources to mee the needs. officials are still of the earl stages of their damage assessments. ashley: all right. thank you. appreciate it. lori: all right. microsoft new product, we just learned today. at the company's bottom line hi $35 this week for the first tim about five years. we are hollis story. ashley: and they're going to call its x box one. it sounds genius. go after those ten and 30-year treasurys. it will be right back. ♪ it's a brand new start. your chance to re and shine.

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♪ >> reporter: i'm here with your fox business brief. a bullish day on wall street with blue-chip setting a new intraday high. accelerating stocks on the s&p 500, but all-time highs upset b earnings by home depot and of ozone. losses of more than six and a half billion. according to the irish cultural organization, the world's top organization as confirm that there have been 101 cases.

firefights, and experts said th trend will continue. according to prices fell in april compared to the same time last year, and that's the lates from the fox business network, giving you the power to prosper. ♪

♪ ashley: the next video game war begins. not call of duty, microsoft versus sunny, unveiling in the xbox1 today and it sunny trying to steal the thunder. dennis kneale has the news. >> reporter: just as microsoft was on states today unveiling a new xbox1, sony puts out a twee

telling fans it will reveal the playstation4 on june 10th. that is the eight long years says the first xbox came out. the business has changed vastly in that time. it is still a $65 billion per year industry. a quarter of a billion consoles of all brands since 2005 but sales down 25% from a year ago. council business down more as more players can play on-line gaaes through their computers which is why the gate you may b the coolest tv remote control and theeworld. a smart tv that everyone has waited for. you'll be allots tv shows as yo play video games. what is turning on tv. a voice controlled tv guide. live or on demand. you can use verbal commands. it these applications can be

placed right next to the game the you're watching. now, under the head the new xbo is a supercomputer. eight engine processor, eight days of memory, beret dvd player , 500 gigabyte hard drive. the big mystery is price. no details today. microsoft press the original at $300 under, half the price of the saudi position. will they be able to stick to that a cheaper price strategy with so much power on our -- under the hood? ashley: it is getting interesting. thank you. lori: let's get back to our 22 nd potential record. adelle. back before the new york stock exchange. and what do you think of this? where we landing today at 4:00 >> we show no signs of backing off from early highs. the market was-earlier, but as

as typically happens after the last 1930's is the market as readers of -- reversed. ashley: strengths. retailing would make up those. while it is a leaked list to th weakness in things like utilities, consumer staples. we are still seeing resilience. bottom line is that market continues to show real signs of being parabolic. lori: where is the money coming from? is a rotation out of commodities ? >> that is an interesting point. no one wants to step in. yields as low as they are, some money has to go somewhere. we are in one of these cycles where youuare seeing increasing size optimism and eventually th sentiment will, in turn, lead t a peak. we are in a post-election year but says to be the worst. we have moved up nearly 17% or so. seasonality is becoming a concern, but right now, the trend right now is still very much positive. lori: area looking evaluations?

about price you think people would say? >> is interesting in that unit evaluation. we did not really ever get this single-digit low valuation. went to excessively high and back to normal and now we are saying the stocks are fairly priced. i believe that the secular tren at thii point eventually oozes out to look back to the upside. right now we are still largely at 16 to 18 years sideway patterns. two big mayor of -- to big bear markets. now there really is not the law in place in my view fermented new perspective to suggest that we have started the next executive will market. lori: many thanks in today's al writing. ashley: and mr. bernanke's speaking tomorrow morning. coming of, blasting the tax cut saying it has failed to keep up with innovation. business roundtable steve says, you know what, he is right on the money.

he is here next. lori: other winners and losers in the stock market today. all posting gains. back after this. ♪ are you still sleeping? just wanted to check and make sure that we were on schedule.

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♪ ashley: in a hearing on capitol hill speaking said senate subcommittee accusations that the tight giant said the subsidiaries to avoid paying taxes. take a listen. >> we pay all the taxes that we go. every single dollar. wheat not only comply with the laws, but we comply with the spirit of the laws. we do not depend on tax gimmicks . we don't move intellectual property offshore and use it said sell our products. lori: has the tax code fail to keep up with today's digital age ? joining me now, president of th business roundtable. thank you for joining is. from what he was saying, you would think he is an absolutely noohing wrong. i don't think he misspoke today. >> she told it is theft of the way it is. he is doing what the law permits

. he's doing what the law require him to do. he is paying all the taxes here in the united states. ashley: strange that lawmakers to put him in the hot seat when apple already pay 6 billion in taxes and certainly it is the law, would assume, that is wrong , not what apple is doing. >> well, that is right. one of the things that troubles me greatly is that our law has resulted in some earnings made from sales in foreign nations. in our -- in other words everyplace but the united states . we have the highest corporate tax rate in the world. the only nation in the world of size insignificance economicall that requires you to pay on a worldwide basis. everyone else uses what is called the system. we should reform the tax code. has not been touched and a quarter century, before we even

had the internet, so let's get that fixed and is as the hearings will be unnecessary. ashley: the think hearings like this, john, push that effort for ? or is it just to get on television and be a typical operation? >> to think it's more of that. do think that said to the other quietly working harder that chairman max baucus, chairman de kamp, chairman of the house, ways and means committee and very serious events of the text showed. the reforms of the nation needs and its for he competitive, if we need economic growth, the corporate tax jobs is a big par of that. we ought to fix that so that it is helping in not hurting. ashley: you know what i found interesting, senator john mccai of arizona saying, look, he called it outrageous, he was insinuating that there was a shell company set up in ireland to take advantage of lower corporate taxes, but if you loo at what apple has in place,

4,000 employees is that a shell in any way, shape, or form. >> and no one is saying, and, i fact, they're not saying becaus they have done nothing improper senators may wish that the laws are different in other nations. i wish there were different and our nation. guess what, the united states senate cannot rewrite the irish or european laws, but they can rewrite the u.s. law. ashley: that is true. you know, generally apple has avoided the hill like the plagu for a variety of reasons, but this is important to for apple to have a say. it did tim could do a good job? >> well, look, i don't think anyone wants to find themselves event of a committee for really any purpose unless it's to advocate or something, improve the job climate. i'm not sure that apple would think today they're doing that, but think that the seal presented a spirited defense, explain it clearly that apple has been following the law.

good for him, and let's get the congress now focused on what needs to be done, and that is a reform on an outmoded tax cut that is desperately in need of modernization. ashley: one can only hope. thank you so much. appreciate your comments. >> thank you. lori: liz claman is here to tak you to the last hour of trading. she will have all of the deed - day trading action. right before a major announcement. she will check in with the oklahoma native an oilman with company headquarters all locate near the tornado devastation in the moore, oklahoma. countdown to the closing bell i next. ♪ ♪

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countries to hide money. ceo tim cook says, not our fall. fault. dimon wins. jp morgan's jamie dimon holds on to his grip as chairman ask ceo. -- and ceo. what will it mean for the stock in the future? our guest breaks down exactly how much you're paying for the jamie dimon premium. and open chat. the bloomberg terminal snooping scandal brings goldman sachs and thomson reuters together to find a new way of secure communicating. let the competition begin. "countdown to the closing bell" starts right now. ♪ ♪ liz: good afternoon, everybody, i'm liz claman. it's the last hour of trading. listen, we've got several developing stories we need to tell you about. first up, embattled herbalife trading higher as the company at the heart of that battle between bill actman of