lori: nicole petallides with the tao flying back from the deep losses earlier today. nicole: the dow jones industrial virtually flat at the moment. the nasdaq down a%. at the lowest point this morning we have the dow at 15,180. 29 of the 30 stocks were lower with the exception of hewlett-packard soaring all day. the fed comments, ben bernanke was very wary of trying to hold back any stimulus and the policymakers on that committee seemed a little bit more likely they wouldn't mind cutting back. pushing the lowe's yesterday. we watched a show, down 7.3%.

that is a huge, huge move but we should note a couple of things. moving on weak manufacturing numbers. one thing we should note is the nikkei is the best performance that we follow. back to you. lori: thank you very much. melissa: gold bugs are cheering. phil flynn in the pits of the cme. what is happening with gold today? phil: the stock market doesn't look like a sure thing anymore. they are now going back in. ben bernanke and the fed tapering down could mean tapering up and back and forth. it is making gold look more

attractive. he came out like a bear. all the volatile yesterday about how quickly we will see tapering off. fed officials bringing the market back despite the news out of china. talking we could taper upper taper down depending on the data, the other thing is oil down big this morning. it is coming back but there are lots of reasons to start being bearish on oil. memorial day weekend is here, mostly gasoline wholesalers have taken a little bit of a pressure off. prices coming down at the pump, good news ahead of the holiday. melissa: absolutely. phil flynn, thank you so much. lori: so we got some positive signs on the economy today.

april new home sales rose in march now up 13% from a year earlier. jobless claims fell to a better-than-expected 340,000. and here we are a day after the fed, a lot to chew on. so now that we have had a day to recognize it before congress and the last fed minutes, what do you think will be the next step in monetary policy? >> the next step will be a taper, coming later than expected. the excitement yesterday was a little bit overblown. being pressured by the chairman to answer the question could the fed potentially announce the taper before labor day? theoretically that is possible if it catches fire in the labor market starts blooming.

it is possible, if he gave a longer answer would have added generally unlikely as well. the market ran with it and people got a little bent out of shape with that. the real tone of the testimony was the more important message the fed willing to taper but are not seeing improvement of the economy. lori: you don't think that was intentional contradiction? >> i don't think it was an intentional contradiction. giving a theoretical answer to the question and people took it very literally. lori: new york fed forecasting the jobless claims with inflation moving back to the fed target. by the fourth quarter 2013 do you think that is about the time the conditions the fed has warned us they will finally

begin a strategy? >> the forecast are in line with our own forecast. what will be important as what happens in the near-term. as we get into q3 and further away from the tax increases at the start of the year ended the sequester, we will see the economy shift into a third gear. if we shift towards three, 3.5% you will see a much faster pace of job creation. lori: 3.5% is enough for the economy to sustain and grow without fed intervention? >> absolutely. the peril improving 225,000 or 250,000 per month. that will signal to the fed that

we have the all clear, and implement rate with in an economy growing three to three and .5% inflation will start to pick up as well. it will pull together. not in an urgent way to rush to change in policy that will signal to them they can begin to dip their talent to the water so to speak begetting a very long fed exit process. unwind the balance sheet and start normalizing interest rates as well. lori: we will see you real soon. melissa: trying to salvage what is left, producing heavy rain and hail and high wind. flash flood warning in effect as forecasters warn more tornadoes are possible. becausthe cause of damage for ms nato about $2 billion.

our next guest window best. thank you so much for joining us. do you think that number is low? >> it could be low or it could be higher. i was out doing the damage from the insurance information institute, and with both been in a lot of major catastrophes around the united states. the devastation is just incredible and the amount being a tornado on the ground for 40 minutes, 17 miles in a residential type neighborhood is going to be very, very high. our main goal is the insurance industry can sustain a loss like this, i'm not concerned with the number, my main concern is the industry is well-positioned to take care of oklahoma consumers and patent claims which the

industry has stepped up and we have already processed in the last two days opened over 6000 claims at the first baptist church which is a staging center for all insurance companies. our best practices from catastrophes and national title summit which we hosted in oklahoma the last two years, we developed this and model this best practice of having all of the companies here a one-stop shop where it has worked very effectively. melissa: the biggest names that represent the most homeowners. would you characterize them as moving quickly? are you happy with their performance so far? >> yes, there are other major brands that have as much market share as the ones you mentioned, state farm, allstate that are herr on site and we have

instituted close to around 121,500 out-of-state adjusters that have flown in from all around the country that we have institute instituted, relatively new for major catastrophes because they cannot get in yet, emergency management. -@melissa: how quickly will peoe get their money? people need cash quickly, to begin rebuilding and also about 75% of the people about 25% are renters. a lot of renters insurance as well? spiegel i'm happy to report on e 6000 claims i would say very high percentage of those have already got additional living expenses, we have been partnering with the bank commissioner and they have

been able to cash those checks here on site the last two days. the industry is already paying claims giving additional living expense in the hands of the folks who need them. melissa: thank you for coming on. >> you're welcome, thank you. lori: starling and devastating. hurricane season is right around the corner. who will get a look at how hard it could be this year. melissa: madoff from prison. adam shapiro face to face with the ponzi scheme are. why the banks are as guilty as he is. lori: ahead, shocking percentage of homeowners still underwater. the dow down 23 points, gold is creeping back up. silver and copper are trending down. this is america.

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melissa: breaking news. initial forecast for the 2013 atlantic coast hurricane season. rich edson in washington with the details. >> the government expecting active to highly active hurricane season in the atlantic ocean. 13 to 20 named storms is the production. 326 expected to be major hurricanes. that would be pretty much on the high end of what we got last year, 19 named storms. one of the busiest on record in the atlantic including super storm sandy that hit in november. colorado state: 18 named storms. 16 names, a bit above average saying basically in a cycle right now that is conducive to a

highly active hurricane season, that could reverse itself in the next few years, although it is hard to pinpoint when this could happen. a logistics firm, do business forecasting post retailers to figure out how they can best prepare for storms there already urging to get ready for the atlantic hurricane season starting on june 1. you have to keep your eye on one area, the gulf of mexico. some 4000 oil and gas rigs in that area, and during the summer driving season that is certainly one of the consequences. louisiana, mississippi and alabama consequences they had to prepare for down there. the government predicting a very active, active two very active hurricane season in the atlantic. back to you.

melissa: thanks so much. lori: hurricanes, tornadoes, certainly a rough season for sure. back to the market, nicole petallides on the floor of the new york stock exchange where the doll was doing everything it can to move into positive territory. nicole: good thing for the bulls hoping momentum continues. moved into positive territory, a weaker dollar and that certainly helped things along. the fear index is to the upside. hewlett-packard the key helping dow jones industrials along, guidance better-than-expected. the layoffs also coming along saving hewlett-packard money in the long run as well. what was the big loser last ye

year, the big winner last year in 2013. lori: thank you. fox business exclusive with bernie madoff. adam shapiro is next with the interview. melissa: the irs not exactly blowing over. considering hauling them back to testify. lori: see what the dollar is doing, you do see a weaker dollar today. the euro is strengthening today. back after this. thank you orville and wilbur... ...amelia... neil and bz: for teacaching us that you can't create the future... by clinging to the past. and with that:

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>> hi, everybody, your fox news minute. just a day of the obama administration took responsibility for the death of four americans in a drone strike in 2009, president obama outlining th their policies for unmanned aircraft part of a major speech on counterterrorism policy. inland than the british government saying to suspected muslim terrorists arrested in yesterday's brutal killing of a soldier have already been investigated the uk security services for possible terror

links. two british men attacked a victim with butcher knives and police shot and wounded both of the suspects. in washington, d.c., take a look, just arrived at her new home. the female asian elephants took 1100 miles truck ride from louisiana baton rouge zoo to become the fourth elephant in the upgraded exhibit. now back to glory. lori: thank you. adam shapiro joins us now from outside the prison in north carolina with more on this exclusive interview with him. what is it like meeting him face-to-face? adam: i wasn't sure what to expect.

we went to the room, he is 75 years old i thought he would look frail and then, but he looks healthy, he lost a little bit of weight, looks healthy, does not look 75. maybe low 60s. he seems calm. cut off from his family. he is leaving in a coffin one day, he is not getting out before that. what about the suicide attempt he and his wife attempted back when he was still out on bail. this is it, how was able to block out what i was doing and the consequences, i cannot figure that out. talk about how he ran the ponzi scheme but the consequences have been tragic for thousands of

people. how could i have caused so much havoc and pain. we talked a bit about the family, he said the one thing i did write was not make them a part of it talking about the ponzi scheme he insists his family did not know about the ponzi scheme. he talked about his son, mark, suicide. i will forever live with the guilt of his death. at issue there is nothing than this. he does not lead an isolated life. on the inside, a little bit of a park area, he has some mobility in the area. he referred to it not the kind of prison would see portrayed by hollywood. he doesn't seem to be in any

distress, which will not be comfort for his victims. but he invited them talk about the simplicity because bernie madoff want to help the trustee recover billions of dollars. that is what he said. back to you. lori: so he trusts you very much to have this conversation, but what do you think of him and his honesty. is he being truthful to you? >> he is very hard to keep on focus. you have to take everything he says with a grain of salt, of course. the new accusations he is making changing the story of the timeline of the confession to his family, those clients, we have reached out to lawyers, but it is hard to believe this. lori: fascinating story, thank you for bringing it to us.

melissa: new details of commerce secretary, let's go to peter barnes. peter: that is right, that hearing ramped up and part of it, she got questioned about an offshore trust, family trust in the bahamas earning $54 million from over the years, and she pointed out it was created when she was just a little girl, said i didn't created, i don't control it and said she has asked the trustee to transfer control, to step aside in the bahamas and transferred to the united states. her boss, president obama, has heavily criticized offshore tax havens, start with a question from one of the republican senators at this hearing.

melissa: that doubt trying to claw its way back after being down 120 points off the session lows. shrugging off concerns former fed chief ben bernanke remarks. lori: tesla revving higher. the payback the government loan. let's get a check of who is up and who's down on the dow. we are back after this. [ male announcer ] at his current pace, bob will retire when he's 153, which would be fine 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 fre perspective on hisortfolio.

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. .. lori: update you on the markets here 24 hours after the fed. a lot of swipes but i thinkk3 it is safe to say that investors have die he is ifed we'll not see the foot off the pedal of the accommodative policy at

least anytime soon. there is nicole on her post at the new york stock exchange, with the dow trending lower. >> the dow is down about 36 points right now, lori and melissa. 15,271. obviously we had a great year so far. they watch to hear what comes from the fed. they watch to hear what comes from other count criminals -- countries including china. manufacturing was weaker-than-expected and that is something that hit our markets abroad and here at home originally. we're not too far off the unchanged line. we're watching a name that is real mover and headline generator here on wall street and that is tesla motors. let's see what test la is doing at the moment. the company has the money. they paid back the department of energy plus interest. the first green company to repay their loan to the department of energy. don't forget back in 2010 when they took this loan they received $452 million for that. they say that they're going to be able to finance the next couple vehicles without

actually selling shares. you may remember they sold shares to try to make up for it. right now it is up 2.2%. shares have surged 70% in the past month. also we can't leave out that liz claman will talk to tesla chairman elon musk that is big deal at 3:00 p.m. on the "countdown to the closing bell". be sure to stay tuned to that. tesla, got a near perfect score and i'm sure they have plenty to talk about. lori: okay. we'll be watching for it. nicole, thanks. melissa: absolutely. top book there the market is trying to stop early losses on the back of some better-than-expected economic news. did the markets overreact to the fed? joining me, paul schatz, president of heritage capital. what do you think, was that an overreaction. >> every time bernanke speaks he is amazing they print and print and he disavows it and they print more and he disavowses it again. he is perfectly balancing

seesaw between giving the markets what they need and calming the natives. melissa: really? sounds like you said you can't believe a word he says. that doesn't make me feel very good. >> he walks this incredibly delicate line. he can't be fully transparent if the fed chairman of u.s. ever told the truth during a crisis we would be on the floor in a feet tall position. melissa: yeah. you know, everybody is so worried about the exit strategy and with will happen. are you concerned about that? do you believe they have a secret plan that will make everything okay? or is it like so many people have said, when we see them head for the door everyone will try to race and beat them to it? >> a couple things. i don't think they have a secret plan. we're in unchartered territory. melissa: yeah. >> if they can't open a textbook and say, if a, then b, then c, they will have to take this, i think people are worried that they will take the 85 billiondown to zero overnight. i would argue that in my lifetime, the fed's balance sheet may never return to

the $900 billion in t-bills it was precrisis. melissa: see, i don't think that is what people are worried about. i think what they're worried about when they say they're even thinking about slowing down or if they stop buying as much as they are, everyone will rush and sell and try to beat them to the punch. and that is what will cause a big reversal in the bond market and everywhere else, will be panicked reaction from everywhere else when they feel the slightest movement from the fed. am i wrong to be worried about that? >> everyone does think that but more important they think they will be out the door before the elephant pushes through the door. so it is not going to happen. melissa: yeah. >> more importantly the fed is smart enough. if they start to spook the market, the bond market especially because bond market equals mortgage rates, the slightest spooking they will come back right into the game. i don't think they will all of sudden --. melissa: you think they have the control to stem some sort of bigger reversal? they may. they're the biggest elephant out there but you think they have enough control if the market panics they can regain control of market by

coming back in and buying? >> they have done it over and over again. when qe1 left the markets got spooked they came back and they have done it several times. i never want to fight a guy who buys ink by the barrel. that is losing battle. melissa: what did you think of japan? that was a huge selloff. i woke up and said yikes. >> yikes is right, but take a bigger picture. japan is up 50%. the yen is down 28% since they started their whole, the guy gant tick financial experiment. could that happen here? sure. not to that magnitude. we haven't melted up 50% like in 1999. certainly that is a flash crash. flash crash here with 1000 points decline? could we have one thousand point decline overnight? absolutely. melissa: give me the bottom line. is this a pullback on stocks in the u.s. sell in may and go away is true four years in a row. it is still may. there is still time for people to sell and get the heck out of town. do you think we've seen the highs for the year or what

do you think happens? >> i don't think we've seen our highs for the year. to me the worst case for the bulls we saw momentum or internals peak. melissa: yeah. >> may get, two, three, four, 5% pullback. think it would be yesterday too easy to be peak before bull market or major correction. worst case for the pulse. we have a pullback. another run toward new highs that may look crummy. advance-decline line made new high. junk bonds made new high. transportation average, industrials. we had good sector leadership. you don't have the ingredients in place for 15 plus percent percent decline. we could have a pullback and it may be long overdue for months and months but i don't think it is here. melissa: paul, thanks very much. lori: new developments in the irs scandal. irs official lois lerner may face another round of questioning from lawmakers. congressman darrell issa say her use of the fifth amendment in yesterday's valid.omething no longer because issa did not adjourn the hearing lerner is still under subpoena and could be

recalled to testify. this is getting evening more fascinating by the day. we will definitely have our eyes and our ears glued to capitol hill to bring you the latest.% melissa: she thought she was very cute with that yesterday. looks like she is not getting away with it. lori: could be back firing on her. melissa: our own charlie gasparino is here next with the latest on sac capital's steve cohen. will he be charged. lori: concern about underwater homeowners, underwater on mortgage payments means you owe more than it is worth, could that bring the housing recovery to a screeching halt? melissa: first look at the 10-year and 30-year treasury as we head out to break. remember the big move the treasury made yesterday. the yield is down two basis points on the day. we'll show you 30-year as well as we head out to break here. thank you orville and wilbur... ...amelia... neilnd buzz: for teaching us that youan't create the future... by clinging to the past. and with that: you're history.

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>> i'm dennis kneale with your fox business brief. several u.s. retailers filing an antitrust lawsuit against visa and mastercard over fees essentially opting out of a pending settlement in new york. the suit contend that debit and credit interchange fees are being set arbitrarily high. macy's coles, target among retailers looking for compensatory and triple damages. shares of dover jumping after the equipment-maker aproves a plan to spin off technologies. spinsoff of knowles corporation expected early next year. virgin america flying

into the number one spot as the most popular airline. consumer reports says virgin scored 89 out of 100 winning the top spot in its first year ever on the list. "consumer reports" ranks airlines based on comfort, cleanliness and service. that is the latest from fox biz, giving you the power to prosper.

lori: even if sec insider trading case, insiders are confident the big hedge fund and founder steve cohen will survive. charlie gasparino with the latest. charlie. >> this may be hope against hope but judging by the mood inside sac and talking to people dealing directly with the senior portfolio managers in there, this is what they're telling me. this is from inside the company. they're telling some investors that cohen, steve cohen, the head of the firm, the guy that received a subpoena last week, the guy

that may face rico charges as we've been reporting that he will survey this. he will not, feeling internally be charged criminally. they think they will pay a large fine at least according to insiders. when all is said and done they will end the justice department's probe. this is from the manhattan u.s. attorney's office. they will end by paying a large fine with cohen not going to jail. at least that he's what the insiders are saying. what is interesting, one insider telling fbn, things are going better than what the press would have you believe. essentially means they don't think they will get massive redemption requests a lot of people say they will. the redemptions could come in june. a lot of investors are taking a wait-and-see attitude to see how bad this is. we should point out that sac told people, signaled to them. the investigation, u.s. attorney's investigation prompted with a grand jury subpoenas with steve cohen and other. >> three senior executives receiving subpoenas. >> no offense, but we knew senior executives are

getting it. now we know there is three. i don't think there is a big surprise there. i'm just telling you that this thing according to people inside the company will end, this is what they're telling investors, fairly postively for sac in the sense that cohen does not go to jail. the fund survives. it survives with a fine. now this, i'm only saying this because, you know, part of this story is what a major fund, what information major fund relays to its major investors. basically to keep them from jumping ship. this is what they're saying. one of the things about covering a story like this is that you know, you never know exactly what the justice department is thinking. from what i understand they are thinking is that they are approaching this investigation on a two-pronged process. number one they would love to get matthew march toma to flip, prelim on what he knows. former portfolio manager from sac indicted on insider trading charges. that alleged insider trade occurred after --. melissa: he must not have

anything damning on steve cohen. i want to ask you this. we talked about that already. >> let me finish what i'm going to say. that insider trade they believe occurred, occurred right after a 20-minute phone call with cohen. we don't know what he has on him. we don't know. we don't know --. melissa: if he had something good to avoid prison? >> we don't know if, if he is holding out for zero prison, one year in prison, three years in prison. the charges mandate if you got convicted on charges, all of them he would spend about 15 to 20 years in prison. melissa: right. >> so maybe the government wants him to spend five. maybe he is saying zero if you want cohen. that's what we don't know. a lot, one of the interesting things is when you talk to prosecutors, a lot of former prosecutors involved in the galleon investigation and various investigations they're now in private practice, i'm talking to them because they're sources in my book how much of this stuff the press gets wrong. it is not easy to do. you know you're dealing with sources and, you know, most

people, confidential are not going public with this stuff. there are shades of grayer who. this is a hard story to cover. i'm saying this. this i know what people inside sac are telling investors. i can't tell you whether it is true or not. i do know government has been looking at steve cohen since 2007. when you have a grand jury impaneled it is pretty serious. we should point out one other thing that kind of muddies up the water a little more. when you receive a grand jury subpoena they generally don't give targets to grand jury subpoenas. they indict you, right? the grand jury indicts you. they don't give you a subpoena to comes in. that is what makes this really weird. makes most people believe they're looking basically, corresponds to what i'm reporting here. looking at some charge against the fund. maybe not necessarily cohen himself. lori: got it. >> think of it that way. a little murky. lori: it continues. charlie, thanks as always. melissa: as we do every 15 minutes let's check the markets.

doreen mow guevara is on the floor of the new york stock exchange. doreen, looks like the bulls are kind of coming back but now i don't know. we're down 42. what is the mood like down there? >> we've had a very good day. it has been a surprising rebound, right? it was a very good morning relative to what we thought it would be. i came prepared for catastrophe and we're running around like crazy people and the market ended up very well. i think the volume is decent number. everything seems to be pretty good. bad news seems to be staying overseas not here too much. bullard says we'll have qe for a while. no exit talk. that makes people feel more confident. we have mixed earnings like hewlett-packard. and i think people in general are pretty happy the way things went today. melissa: where do you think we end the day based on the feel down there right now? >> i don't know. i think we're down as we're talking another 10 points. i could see us getting back down to the levels we were pretty well at this morning.

not down 127 which was the low. maybe down, 50, 60 points on the day. i don't think that would be a bad showing at all. melissa: doreen, thanks so much. >> thank you. lori: is the housing market in jeopardy? a shocking number about of u.s. homeowners who don't have enough home equity to afford a down payment on another home. melissa: we'll have zillow's chief economist what that may mean for already tight housing supply. look at some of today's winners and losers on the nasdaq here as we head out to break.

lori: the latest thousand hhusing data may show recovery in the industry but that is the big picture.

break it down and there are still troubling trends especially when it comes to mortgages. the chief economist from zillow now, stan humphries. welcome to you. >> hi, lori. lori: 25% of american homeowners are underwater in property is worth. stan, you say the problem is worth when you see people dealing with so-called effective negative equity. first define that and how many people fit into the category? >> that's right. negative equity itself whether you're outstanding mortgage balance greater than the current value of the house. that is negative equity. and that creates a lot of problems like foreclosures. effective negative equity is looking how many people have enough equity in the current house when they sell it they can afford a down payment for the next house. while 13 million people in technical negative equity, there are nine million americans in effective negative equity making it hard for them to move to the next house which is clogging up the housing market and creating excess, creating inventory constraints in the markets right now. lori: it is those inventory

constraints driving prices higher, right? when we look at increasing prices at first glance, that is a positive sign but perhaps in rea ty it is not? >> that's right. prices, the price spikes we're seeing in a lot of markets, california markets, vegas and some florida markets are driven by two distortions in the market. higher negative equity, more inventory constraints. constraining supply drives up prices. second distortion in the marketplace is incredibly low mortgage rates lead to spike in demand. all the demand is finding less supply and prices are skyrocketing. lori: low mortgage rates are result of accommodative monetary policy. let's go down this line of thinking. where is the sweet spot of interest rates? if there is one sector of the economy that benefited from monetary policy as it stands it is housing. it is too soon as most people agree to start raising rates and tightening up here. how do you adjust this, so you have again the right level of interest rate that

will provide a healthy through, housing market? >> you know, it is particularly thorny problem for the federal reserve. just about one of their few policy instruments they use to control interest rates. that translates primarily, housing market translates into the broader economy and translates slowly into the broader economy and negative equity prevents people from refi-ing their homes. the broader economy is not growing as fast as we would like. in order to effect the broader economy they have to goose the housing sector itself much more than they might desire. if it persists for much longer could lead to prices in some markets becoming much higher than they should which could be quite programmatic. lori: do you want to see slightly increased interest rates? what are some other solutions here? do you let inventory clear out, let foreclosures happen? do you want to see mortgage restructures with decreasing principal? should the government be more involved, dare i say? what do you think, stan? >> i don't think the government should be more involved. i think private sector is

finding pretty adequate solutions to many of these problems. for example, investors have done a great job in putting a floor under most markets and providing demand at a time when mainstream stream buyers didn't want to buy homes. in terms of interest rates, there will be more sentiment for pushing pushes rates up as soonnas fed thought. expectations were amid 2015. we're going to see in some markets emerging housing bubbles next year, year-and-a-half. that will put additional pressure on the fed to ease their accommodative stance in terms of monetary policy to push rates up. lori: that is little scary to say that you're seeing some bubbles forming here. do you see the bottom lines and effective negative equity bubbles resulting in similar crash we're coming out four or five years later? >> no, i don't. we definitely don't foresee another housing recession like we've had. i mean that housing recession was the result of really almost seven years of extremely accommodative monetary policy and runaway

home prices. and we've had largely corrected those. but what we we are concerned about, in the near term with very low mortgage rates, markets that have high appreciation rates like vegas and phoenix. we're not concerned about affordability in those markets because they got so low. california markets like san francisco, orange county and san diego which prices are skyrocketing and actually when you look at affordable relative to historical levels they still look good but only look good at 3.5% mortgage rates. if you go to 5 or 6% mortgage rates, homes look expensive to historical standards. that is the concern not this year but three years from now. lori: stan humphries, thanks so much for your time and insights. >> thank you, lori. melissa: so here's the word on tweet. twitter announcing a new push for video. the social media site is launching twitter amplify, a videoocontent new promotion tool. it allows media companies to push out hort video clips through twitter. here is the catch though, the videos will be

accompanied by a, brief video ad. media partners include a and e, discovery and the mlb. video is launching a video looping app vine back in january which is darn cool i have to say. tonight on "money," we have the president and coo of car flight. he is betting that people will rent out their own personal car while they're away. you drive it to the airport. somebody flies in. they use your car while you're out of town and you get paid for that. that is tonight at 5:00 p.m. eastern. they do it in san francisco. can you imagine? lori: what a brilliant idea. usually spend so much money to park your car. melissa: i don't wan anyone driving my car. whatever. lori: that is the risk. ashley webster is on his way in. he will join me for the next hour of "markets now. " we'll preview results after the bell and best ways to invest in the sector and much more ahead. hope you stay with us. we went out and asked people a mple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're livingonger, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ welwhere new york state is... investing one billion to enjoy all of these years. dollars to attract and grow business. where companies like geico are investing in technology & finance. welcome to the state where cutting taxes for business... is our business. welcome to the new buffalo. welcome to the new buffalo. lcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your business, visit thenewny.com

lori: hello, everybody, i'm lori rothman. ashley: welcome back, lori. i'm ashley webster. bernie madoff changing his story. the ponzi-schemer said key clients in major u.s. bank knew more than he has admitted before. we'll have details in this exclusive interview with fox business coming up. lori: on the economy, new home prices rising to a record high. housing expert anthony mason joins us to say they're rising too fast and he's worried. ashley: we're hearing that a lot. our special report, small business, big ideas. we'll meet the head of one internet security firm that just doubled its workforce, and oh by the way got more than $50 million bucks in backing from goldman sachs. top of the hour. time for stocks. let's go down to nicole petallides on the floor of the new york stock exchange. after all the volatility we saw yesterday, nicole, it is interesting to see the market moving sideways today. >> very interesting action.

what we saw yesterday was 300 point swing from top to bottom, right. we were well into positive territory, broke records and turned into the red later in the day. it was unusual to see that kind of a turnaround and even traders on wall street started to say this may start to be you know, putting in the top here for wall street. someone like ted weisberg was looking at it very closely not predicting but saying we don't normally see that kind of a dramatic turnaround. today we recovered. we're 15,180. now we're at 15,300. we erased a lot of dollars. weaker dollar and the vix, the fear index remains to the upside. we got good housing news that helped things along. look at some of the homebuilders as i talk about this. sale of new homes edged up in the month ever april, to the second highest post recession level. there is pent-up demand. it is very clear we had low mortgage rates. prices are on the rise for homes. that's a good sign. look at some of the

homebuilders, some are up two, 3% on a day we're virtually flat and continues to do so and outpaces the market. ashley: certainly do. nick co, joining us now. his take where the best opportunities are with the market. we have the partner and senior portfolio manager at skybridge capital. it is a hedge fund of funds. hello there, troy. before we get into the details are you surprised at the market action today especially what we saw overnight in japan with the market plunging more than 7% and bad news out of china and their manufacturing yet here we are the dow is kind of meandering a bit. >> it is kind of surprising. i think the markets got it right. as we were talking about before the main takeaway from the fed policy to us they're willing to do more if things get worse, right? ? ashley: right. >> what markets seized on they might taper over the summer into fall. you would expect more of a reaction that we've seen. given the fact that fundamentals are pretty good and the fed isn't stopping

anytime soon, investors are looking for an opportunity to buy. this provided another one for them to step in. ashley: what are you expecting from markets here? every time, someone said a broken clock is right twice a day. do you still see room to the upside? >> we do over the next six to 12 to 18 months. ashley: all right. >> if you look equities versus every other asset class availabll to institutional investors, retail investors at least there is upside potential if things improve. no guarantee things improve but if they improve you have up side. every other asset class is egregiously expensive. as long as the economy improves modestly, two, 2 1/2% growth even with austerity around the fed doesn't pull away the punch bowl two soon you will see gradual appreciation over the next six, to 12 to 18 months. ashley: what is your advice? investors can't expect equities going up by 17%. they need to look at alternatives that can generate returns not dependent on the stock and

bond market. what do you like. >> particularly things we like are mortgage-backed securities that have exposure it house price appreciation. this trend of home price appreciation has begun. ashley: are you concerned as to a guest lori interviewed in the previous hour they're rising too quickly and could pop into a bubble. >> again the trajectory of the increase may slow but for home prices to meaningfully decline after collapse be five years and start to deappreciate we think is highly unlikely. mortgage-backed securities do fine if though go up. and also what we think is venture equity. managers focused on hard merger and acquisition activities, sales, spinnoffs, special dividends all the type of complex structures in equity part of the capital structure. ashley: how do you find those? >> hedge fund managers have been focused on that for quite some time. many are publicly announced. for instance, if you look at, an example of what dan lobe done at yahoo! for instance. ashley: right.

>> he started his plan to restructure the company and since then the stock has had tremendous upside. a lot of these are available to retail investors. they have to pay attention to corporate activity. ashley: so you're pretty confident for the second half of this year? >> confident is a strong term but we think the balance of risk or assets and balance of probabilities be risk assets continue to gradually grind higher. >> very good. >> not 17%. that is crazy. ashley: that is crazy. troy, thank you so much of. >> thank you, ashley. ashley: appreciate it. lori: convicted ponzi-schemer bernie madoff changing his story on who knew what about his multibillion-dollar fraud. he gave an exclusive interview to our very own adam shapiro in prison earlier today. adam joins us outside of the prison in button, north carolina with more to share the covers. adam, to start with, simply how did he look? >> well he looks, like a healthy 75-year-old -pactually. a man with stage 4 kid any disease. not immediately

life-threatening but not a good thing. but he looks healthy for 75. he says he is ashamed of what he's done and he has a lot of remorse for the people he's harmed. he says the reason he speaks to me and other reporters he wants to get the message out there. he is trying to help the federal government and the trustee recover funds that essentially were stolen from thousands of people whose lives he threw into in his own word, havoc and chaos. there is lawsuit out there, the jpmorgan chase lawsuit. jpmorgan was mr. madoff's primary bank. his account there for over 20 years. he talked about a lawsuit by trustee irving picard against the bank, a lawsuit for the most part dismissed on standing but not on the ground of the suit and a portion of that suit is on appeal and still lives. what the trustee says and mr. madoff says that the bank should have known what they were up to. now mr. madoff says in our interview, not only did they know, they really know. here is the quote.

there is no question, mr. madoff said that jpmorgan is guilty. they would have to be idiots to not realize what was going on. the reason because of the falsified sec reports he filed with the bank and brokerage statements with clients at bank would not much up with the reports he was giving them monthly. the bank responded to this. a source close to jpmorgan chase tells fox business that madoff has made these false accusations many times in past interviews. mr. madoff says, that the inspector general's office from the united states treasury has contacted him and that they are investigating these accusations against jpmorgan chase. we've called the ig's office for confirmation of that. they have not responded to us and there was no comment from jpmorgan chase on that matter. they declined to comment. lori? lori: adam, when we spoke last hour i asked you if you believed madoff and, in no uncertain terms you said you're not really buying it. in particular with the charges against jpmorgan, what does madoff ultimately

want? what kind of a punishment? why is he so adamant? >> he says it is not about punishment, lori. he says it is about getting money back. at least as the trustee paints it in that lawsuit the questions that haven't been answered yet. jpmorgan chase in the fall of 2008 told the united kingdom organized crime agency they suspected fraud at madoff. the question that madoff could not answer and has not yet been answered in court why did not jpmorgan chase put a freeze on the account at that point when they notified u.k. authorities about a fraud. this is three months before it all became public? why if they did not or if they did, what did they do did they notify anybody in the united states about that? lori: madoff is now an advocate for victims he ripped off by getting money back from jpmorgan? >> i'll let you say that, not me. lori: unbelievable. great reporting, adam, thank you. ashley: interesting stuff. i mean bottom line is, can you believe something from one of the biggest liars in

history? lori: his credibility is questionable, wouldn't you say? ashley: you think. lori: coming up the real story on housing. expert anthony mason. he says today's housing numbers prove housing is in a bubble again. he is our special guest. ashley: investors rewarding tesla for meeting a deadline years ahead of sqed all. look how -- schedule. oil is losing ground down about 75 points at 93.53 or 55 a barrel. we'll be right back.

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ask your doctor about cialis for daily use and a 30-tablet free trial. all your imptant legal matters in just minutes. protect uramily... and launch your dreams. at legalzoom.com we put the law on your side. lori: direct your attention to the dow. it is now up 12 points after being down as many as 127 points this session. volatility is back. large swings exactly one day of a the fed minutes were released and before that the

fed chief himself took questions is on capitol hill. let's make money with charles payne here. this hour here to talk about the fed and consumers. you have a theory how a shift in optimism created a lift the moment society. >> the live for the moment society or what i call dropout society is actually been a boon for retailers and other spending in this economy. income, disposable income, which is different than top line, bottom line, income is as high as it has been in 19 years. you layer on top of that the savings rate. i think people are sort of bummed out. they get the checks. go to the mall. that is keeping retailers up. then you add into the bernanke effect. there is no interest. so, you put money in a savings account. it is not going anywhere. ashley: that's right. >> the needle doesn't move. people are like why, why? take a look at these retailers that are reporting after the bell last night or this morning. petsmart beat by six cents. guided higher. lori: that is whole another story. people are obsessed with

their pets. >> pacific sun, beat by four cents, guided higher. had childrens place, some people even like their kids. beat by 2 cents. guided higher. dollar tree by two cents, guided higher. dollar tree guided below the street. we took our profits. ralph lauren, kohl's they're not down but one or two points. general malaise in the economy and general society, main street and also the federal reserve. you know so, i think obviously that is part of what the fed wants to do. people talk about the idea that you can only vest in stocks as only thing because everything else is unattractive. it means for a lot of people, i might as well spend money i have because, i can't make any money. if you're a investing in anything and see a nice shiny new watch out there you may want to to for that said. i don't know if i'm speaking for anybody. look at zumiez. that is one i like down here, one of these retailers that

pulled back recently and i think may have another shot to retest the high. lori: they don't make those obnoxious pants, do they? >> they make a lot of obnoxious stuff for surfers and those kinds of kids. zumiez. you go in there the store is dark. everyone's got a piercing. can't get the job unless you have four piercings and a sleeve. you can not get the job. go for interview, take the shirt off. tatoos up to here and four piercings. ashley: that doesn't bother me. >> but you can't get a job there, ashley. that's if you would want one. lori: he has a tattoo. what are you talking about? >> how do you know? ashley: that is story for another day. >> see you later. ashley: thank you, charles. it is quarter after. nicole petallides. of course at the nyse. nicole, at least we're drifting higher. >> yeah. i need to do some research at zumiez to see if charles is really right on the money

with that. let's look here what we're seeing. we're watching tesla motors, in particular, a name started off to the downside. it is higher by 4%. what is interesting about tesla. they kept their promise, paying back the government what they borrowed back in the year 2010 of 452 million, over 450 million paying that back plus interest. they obviously sold some shares in order to do that. the company is now profitable. the next two models that they're going to be working on they will do so without having to raise more cash. they did get their numbers out of "consumer reports" for the model s where they got a near perfect score. you haven't seen that in several years. they got a 99 out of 100. lexus was the last one to do that. a lot of analysts jumped on board. over the past month or so it surged about 70%. it obviously has been a stellar performer that we continue to follow. i want to know in the 3:00 p.m. be sure to watch and stick with fox business, liz claman will talk with elon musk on "countdown to

the closing bell". there is nice photo of him. there is plenty to talk about moving the company forward. it is a green company and they have done so well. ashley: they are on fire. nicole, thanks so much. we'll be back with you at the bottom of the hour. lori: a lot of housing data out there to chew on and we're going to look what home prices are surging in some places hard-hit by the housing crash of years ago. real estate expert anthony sanders tells us which areas he is more concerned about next. ashley: look at the u.s. dollar how it is moving against these currencies. as you can see generally weaker. just the mexican peso down against the dollar but the dollar weaker today for the most part. we'll be right back. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that:

you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. wee not simply saluting history... we're making it.

>> it is defense one minntes past the hour right now. i'm jamie my colby. this is fox news minute. president obama announcing specific steps to close guantanamo bay, the detention camp that holds terror suspects. now the president is also asking the department of defense to designate a site in the u.s. to hold military commissions. those are the tribunals that prosecute detainees. to london now. police have made two additional arrests as part of their investigation into the brutal murder of a british soldier yesterday. police say two british men of nigerian descent attacked

the victim with butcher knives right on a london street. today a 29-year-old man and a 29-year-old woman were both arrested on suspicion of conspiracy to murder. president obama has condemned the attack and says the u.s. stands resolute with the u.k. against extremism. to texas now, the boy scouts of america are getting set it vote on whether to allow openly gay scouts in its ranks. the resolution would still ban gay-adult leaders but would overturn a current ban on gay youth scouts. those are the latest headlines. i'm jamie colby. back to you, lori. lori: jamie, always great to see you. >> thank you. lori: we saw record high prices in new home numbers released this morning. exists home sales came in at a three year high. some cities out west are seeing home prices up 25% from last year. our next guest thinks all of this could mean it's another bubble. anthony sanders, george mason university professor of finance of the this is the question today.

new and existing home sales continue to show improvement. people come here raising real concern, right, anthony? >> well, there are some big concerns. you show the graphic of the house prices out west. phoenix, california are up over 20%, as high as 26%. the fha numbers came out this morning, nationally it is 15.6% growth if you analize the monthly numbers. the point --. lori: let me have you finish because i think you will go to my follow up question what is driving these markets so much higher than the national average? >> what is driving markets higher than the national average is, uncle ben, ben bernanke from the fed. if you look at mortgage purchase applications came out yesterday that still have been fairly flat since 2010. so it is not consumers jumping in with mortgages. it is investors. investors are taking advantage of chief money from the fed. lori: how will this all sort out? if you will with my english co-host oday? that is a english phrase.

how will it sort out? we in our intro used the phrase bubble. do you see another housing bubble burst particularly in those markets that are rising so fast? >> i do. housing prices are rising so fafs and they're disconnected from economic reality. the underlying economy is not growing that fast. unemployment is still dangerously high as chairman bernanke said yesterday. and we just, we don't see any applications but, on mortgages coming in. this is a disconnect. and when you have that, --. lori: so prices are going up in those markets faster than the broader economy but what is the likelihood when the housing bubble first burst five or six years pric fell too far too fast and that this is just part of a correction phase. >> that would be a very nice interpretation. i like that one. lori: that was very receptive. >> i don't think it's right. the problem is chairman bernanke yesterday along with fed, federal reserve

president duke came out and they both are talking about easing credit to consumers. i'm going, oh, my gosh. we have thin inventoris. investors are already pumping air into the real estate market. what happens if we end up relaxing credit again? we could end up with a, well, housing bubble from last decade. lori: right. what do you do? you can't raise interest rates. we heard from bernanke. the markets went bananas down and up all over the place on concern that the fed was going to stop this, take the foot off the pedal here and we know that the one sector we keep saying this over and over that really benefited from the accommodative monetary policy so you can't raise interest rates quite yet. >> that is true, lori. if you look at the house price index, look at house price, case-shiller, fnc, from any of them and plot it against the federal reserve's monetary policy, you will notice they both collapse together and both have been stagnant together. housing is finally starting to rise which means, they

did this in 2008. and so it is finally starting to really kick in. the question can they control it this time? lori: that is the $64,000 question. we'll see where it goes from here. we'll check back in with you, anthony sanders, professor of real estate finance at george mason university. >> thanks, lori. ashley: $64,000 doesn't get that much these days. lori: not in terms of homes. ashley: not at all. lori: especially in those markets. ashley: hearing a more about the housing market bubble, is a little disturbing, isn't it? coming up we're living in a digital age. hospitals have switched from paper charts to computerized records. so how safe is your medical data when it is in the cloud? gerri willis takes a look in her special series, your medical privacy. lori: dow is in positive territory up 14 points of the these are s&p names driving the gains. hewlett-packard big story today. strong move. 14, almost 15% higher today on earnings. we'll be right back after this. ♪

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80 thousand of u investing billions... in everything from t best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. dennis: all right, 90 minutes until the close. the dow drifting higher as we have been saying. nicole petallides on the floor of the stock exchange. >nicole: hewlett-packard's top performer dow jones industrial up about 15% at the moment. revenue was a little light earnings-per-share and the outlook also good news. we have seen them work on the turnaround play.

the shares hitting a 52-week high. what is interesting of hewlett-packard, a top performer this year, watching how it compares to dell. some really hot on dell still. both dell and hewlett-packard suffer from dwindling pc sales. these two obviously continue to battle it out to get rid of a slowing demand. dennis: we can think hp from pushing the dial. >> paper and thing of the past when it comes to your medical records. now saved in the cloud. what does it mean for your tribeprivacy? >> i'm reading summary details i am scaring myself. details are bbing made secure in

this interview, more sufficient for the industry. easier to use for the industry but this is putting our information at risk, there is no doubt about it. this health care industry more exposed abroad than any other industry he has ever seen. >> at will, it appears. >> you kind of get why the hackers coffer businesses because you get intellectual property but why would people want your medical information? how do you make money off of that? >> is more lucrative to buy, sell and trade health care information then social security numbers. you can get into the deep pockets of the insurers, federal government. these huge, vast companies that have a lot of money at their

fingertips. >> obamacare is a big push to make obamacare is electronic. what is being pushed and how strong is it? >> 30% of this data is already on the cloud. if you have a fetal monitor, defibrillator, those are attached to the internet because doctors want to see them remotely. that makes them vulnerable to some sort of a hack attack. we are putting this information up on the cloud so at the end of the day it is open health information that anybody can access and as you know a lot of them don't care what they print down, they just want to bring down something and get a big headline. one researcher found the university of chicago resident, physician and training were

putting information from all of their work into a folder on the web the password for which was in public on the web. it is not being protected in any way. >> thank you. >> coming up tonight you don't want to miss that. a study that talks about how much people are spending on the health care. you're spending as much on your health care as you spend on groceries. even more. >> i believe it, even for healthy people. if you have a chronic illness, of course, but just regular maintenance, i need a mammogram, thought i would share that. they are expensive, and they hurt. >> one health care entrepreneur is big into venture capitalist. live with jeff flock talking about his newest passion in

chicago. jeff: this is the other piece of what gerri willis was talking about. he thinks we ought to be more mobile with our health care records. i have to give our viewers a peek of what you are into now. one of the most successful medical record ceos alive, what are we looking at? >> you're looking at ignite glass studios. and number are polygonal glass, a molten glass you are seeing right now, they will stretch the class and use it as part of a design for some of the great work you see here. one of the things they do is they go out and creative, which is how they got to become a ceo to begin with. jeff: in addition to the studio,

you are investing in a new health care company that makes medical records even more mobile. >> part of our goal is to make medical records and medicine were accessible and so when we talk about not just health care, but health. people don't want to be patients, they want to be consumers and consuming information and getting better health care. dennis: a lojeff: you wanted to. >> we felt like it was time to pivot again in health care and move from patients to consumers. jeff: talk about innovation, look at this. isn't this the incredible? this is what a creative entrepreneurial mind does himself. more to come.

>> fascinating to watch that. jeff flock in chicago, thank you so much. >> coming up, our special repo report. a special report, "small business, big ideas," web security. pulling ahead of the pack, the ceo joins us next. >> a look at the 10- and 30-year treasuries. spiking yesterday down a couple of basis points just about 2%, meanwhile on the 30-year the same story, 3.19%. we will be right back. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ le announcer ] where do you want to ke your business? i need help selling art.

[ male announr ] from broadband to webosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can helyou do what you do... even better. ♪ we're not in london, are we? no. why? apparently my debicard is. what? i know. don't worry, we have cancelled your old card.

great. thank you. in addition to us nitoring your accounts fornusual activity, you could also set up ee account alerts. okay. [ female aouncer ] at wells fargo we're working around the ock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] wn people talk, great things happen. >> your fox business brief. the house passing a bill for interest rates on the student loans they yield on thi on the treasury. forcing lawmakers to extend the 3.4% rate for two more years. president obama has threatened to veto the house bill. these under: 841,000 compact cars globally now since the steering bolt may not have been properly tightened.

is raising ticket prices at theme parks becoming an annual spring tradition? every year around memorial day one of the three raise prices with the other following suit. that is the latest from the fox business network giving you the power to prosper.

dennis: in today's "small business, big ideas," protecting yourself from cyber theft. our next guest started a company that lets users surf the web in a virtual private network keep it away from hackers and online trackers. investing $52 million in the venture. joining us now, cofounder and ceo. david gorodyansky.

explain to us what does your company provide? >> absolutely. we believe in putting consumers in control of th their personal privacy and personal information online. we're starting an addressable market of 5.7 billion users connecting to the web through the computer. i need for being in control of the personal information, the browsing. everything we do online we should be able to control how our privacy is collected and who can see our data and who can't. >> is there a fee for this, what is the payment structure? >> our structure comes in a freemium model. you can use a freemium version,

we have protected users from 700 million viruses in the cloud. somewhat different from an antivirus product because they protect a device, a computer or phone, we protect you, the user and everything you do on the web. dennis: i noticed what is interesting was your site was useful during the arab spring uprising in egypt, for instance, able to go surfing on the internet and look for information and able to do that without any interference. >> yes, absolutely. it has been fairly popular. we are growing by 5 million new downloads per month. it is fairly global.

in egypt specifically when the herbs rings started, it's that service providers all social media city could not get to or twitter, and h you would become secure and private and therefore could access any information and get complete on the web. in the cases are using the web in the united states, you are most likely using it to protect your privacy from hackers, users and wi-fi networks probably the most popular solution for protecting yourself while surfing the web because anybody sitting at the network could see anything you are doing and you would become completely private. even if you are surfing the web from home, we protect basically your personal identity from any identity theft. just to give you some metrics,

50 billion pages for our users, block 700 million malware. both on the iphone and android device. saving data for the users and in 12 months saving $12 million for our customers in mobile data. >> it is a great story, we appreciate you telling it, david gorodyansky from anchorfree. appreciate your time, thank you. >> absolutely, thank you. >> 15 minutes since our last market checks, so let's do it again. thank you so much. it looks like the market is on track for a losing week. if it happens we snapped a four-week winning streak. what do you think the message in all of this is? >> a lot of people are feeling

this is a very frothy place right now. this could be the beginning of the consolidation you will see, trading range back and forth the next few months. i really don't think we will see it go away. too much going with this rally right now. >> the federal reserve credit all kinds of shots in the market but got positive economic data, housing, some interpreted as well as on the jobs market. our investors focus on the latter points at all? >> it is primarily a federal market but those data points are the two we focused on all the time. the battle was very good, i still think there are a lot of people who think it is not good enough so we can tell if it is really people getting jobs.

dennis: coming up, "the hangover part three" kicking off the summer movie season. some serious competition. >> we will be checking that out. earnings got a round of, take a look at the winners and losers in the market today. all stations come over t mission a for a final go. this. step seven point two one two. rify and lock. command is locked.

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>> retailers in the spotlight as a lot of big names are reporting and beating earnings estimates this week but not by impressive margins. we are pleassd to welcome hii here. with more on what is ahead and investment suggestions advice for the specialty retailers. what are the overriding themes going on in specialty retailer right now? >> the reports we're seeing cross the tape so far have not been impressive. characterized by mix quality in earnings. you had urban outfitters, a little weak topline. and then what you have, they're making the numbers in

cost-cutting, which indicates we have had little pit of a tough slide for the improvement is coming in the second quarter. >> are they pushing on the guidance? >> summer trying to be a little bit cautious, we don't want to tip their hand too much. wwe're seeing the consumer focus groups, the consumer is really responding to the fashion. in the second year of the fashion cycle. you're going to get some of the consumers shopping the second quarter could be pretty surprising. >> that leads me to the cap. they introduced the colorful denim. i know you have an out performer, what are you expecting? are you still bullish? >> this is not the gap of yesteryear. this gap is completely reinvented.

with gap and old navy. they came from h&m. they'rthey are starting to workt around. it is not just about the gap getting it right confession. to be the authority, you have them take that strength which they have done relatively successfully, and when the product is right is coming against significantly better real estate. >> it will be here tonight? >> $0.69, there's probably a penny beat, but my guess is they will have positive things to say about how they wound up april and began may. >> so nice to see you, thank you for coming in.

>> thank you very much. >> the box office heating up for the memorial day weekend. dennis kneale has the skinny. >> thank you, ashley. step aside, "star trek." the hangover part three opens at over 3500 theaters tonight bringing in $3 million, but the third and final episode of the army, he decided to bring in less money opening weekend then part two when it opened. and "fast and furious six" on friday. reinventing itself with a multicultural cast and about the heist instead of underground races. paul walker is up against the rock in vin diesel. those two distinctly male vehicles will relegate "star

trek" into the darkness into third place in the second weekend in the u.s. they spent over $200 million making the "star trek" sequel. it expected to win the weekend and take in maybe 80 million. good news for hollywood, could hold in more than a week ago. ashley: interesting stuff, thank you. lori: if i can even get out, i have little kids had it is interesting box office is down double digits. says a lot about the consumer and what they're spending money out. ashley: way for it to come out on netflix. lori: coming up on "countdown to the closing bell."

liz claman catches up with the ceo of tesla motors. just handed over a big check to uncle sam fresh off of a near-perfect rating. stick around. ♪ [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium-rich tums starts working so fast you'll forget you had heartburn. ♪ tum m tum tum tums

liz: tesla king of the electric highway, profitable and finally out from under the government some. chairman, ceo and cofounder elon musk with us from california. healthy housing numbers abound, but beware of black gold. the list of the worst housing markets for the next five years. and most hated man on wall street gives fox business

and exclusive jailhouse interview. when you hear who bernie madoff is planning now. "countdown to the closing bell" starts next. liz: theft noon, i am liz claman. it is the last hour of trading. weaker than expected manufacturing news out of china overnight started casting a reddish call over the numbers. the nikkei numbers tanked overnight. we have been doing very nicely lately but they fell pretty dramatically and the whole situation was intensified with leftovers of the news on the federal reserve on the bond buying program. feeling angst in early trading but we are moving higher