good morning. summer time rally, everybody. back from memorial day and back to buying. how long before ben bernanke throws cold water on this party? president obama heads to the shore, the jersey shore. arriving in new jersey this hour to see how federal money helped repair the hurricane ravaged coastline. a commander in chief who clearly needs the glare of those dc scandals to dim. the cyber threat, chinese hackers said to gain access to the u.s. military's most critical weapons systems. digging into that story and many more coming up on "markets now." ♪ nice rally, we'll take it. back from the long weekend, stocks now and every 15 minutes, nicole at the new york stock exwhaing looking at what, nicole? >> well, i'm looking at a big rally here. up over 200 points, dagen at 15

15020 and change. a rally underway. in good economic reports on consumer confidence and case schiller and everybody continues to see the fed printing at least for the nearest term, and so with that, we continue to take off. don't forget, we sold off last week and broke the winning records that we have seen, so after four straight weeks, we give backlash much of the same for the s&p 500. a little bit of a bounce back here, and majority of the dow components are winners. the only losers, proctor and gamble, merck, american express cleiding -- leading the way. you're a superstar well-republic the anchor, but if they bring back "the jersey shore," you can star in it. dagen: i have the tan working on it. >> i'll be the side kick. dagen: you did that naturally. i do this in a bed with bulbs

and silicone lotion. that's too much. nicole, thank you so much. you look fan fantastic as always. home prices in rally mode. the home price index for 0 # -- 20 cities jumping 11% in march from a year ago, a gain in seven years. phoenix, san fransisco, and lass vegas up 20% from last year. joining us from the chief markty strategy, how long before we have a happenover from this, if at all? >> in our view, the definitive bottom was the fall of 2011, 18 months into the recovery that we think is going to five to seven years run. we had a huge deficit created just now digging out. there's bright spots in the economy. dagen: what happens if and when or when the federal reserve removes some of the -- just the

bond buying, when they just start to back it off a little bit, what happens to interest rates and home prices at that point? even the stock market, how much asset inflation is built on just what the federal reserve is doing? >> you got mortgage rates at or near historic lows, and if the fed tapers to you infinity, and that should happen at some point, maybe later this year, the beginning of next year, the extraordinarily low fed funds rate at 0 is likely to stay at zero for awhile longer for another couple years so that the idea that mortgage rates are suddenly going to jump up to 10% or something like that overnight just is not going to happen. mortgage rates will be low for a very long period of time. >> but you listen to so many people talk about the federal reserve and how they are communicating with investors, and it just seems like it can't go well at the end of this. it can't possibly end in a pretty fashion.

>> no. it was a perfect microcosm of what you talked about. ben bernanke shows up in washington wednesday. at the same time, later that day, the minutes from the most recent federal reserve meeting released, and the market's perception is the that fed is ready to close accommodation as early as june 17th and 18th. the market dropped 3% in the space of, you know, a day. the reality is that the federal reserve to begin to tape earn, to moderate accommodations, they have to do that with the economy strong. right now, the expectation is that fourth quarter gdp was not good. fourth quarter this year, not strong. second quarter this year is going to be below first quarter. the fed, in our view, is not going to be tightening policy on an economic down tick. as the economy starts to recover in the second half of this year and into next year, that's when we can begin to see the fed begin to taper, and i think the market has to develop a sense of

reality in terms of when that tapering process is going to start. it's not going to start next month. dagen: stocks or houses, pick one or the other. >> why choose? both -- dagen: because i asked you to choose, phil. >> look, okay, the way to compromise here is -- dagen: housing or stocks, which is better? >> depends upon your time frame. i mean, in order to make want commitment on the housing market, you got to be prepared to live in that house for a period of time. five, ten years minimum. i think housing prices are going to continue to work higher over the next decade. stocks, which are up 150% here oafort last four years, are not done. we're beginning to see the stock market continue to grind higher over the next few years. dagen: you like both. >> i like both. dagen: by the way, bob schiller picked one. >> what was that? dagen: stocks saying they are a better value. >> well, he is a bearish fellow with housing. the housing market is, like i

said, in the early stages of a nice long term recovery, but stocks, we think, continue to do well here as well. dagen: okay, phil, thank you. >> thank you. dagen: you sort of answered the question. you like both, okay. president obama landing this hour in new jersey, set to tour the recovery efforts along the shore, resulting from, of course, the damaged caused by hurricane sandy last october. peter barnes joins us from the white house with more. hey, peter. >> well, hey, dagen. that's right. the president is touring the jersey shore with governor christie, baa -- back with the governor again to get an update on the recovery and rebuilding efforts seven months after hurricane sandy, and as the summer vacation season kicks into gear in the jersey shore, it's not just a fun time for families, but it's also a time of year for job creation. as you recall, congress approved $60 billion in emergency disaster relief for new jersey, new york,and connecticut after

hurricane sandy, and with congress out of town on recess for memorial day, the trip also gives the president the opportunity to change the discussion here in washington away from all of those scandals. take a listen. >> well, i think the president doesn't want to focus on the scandals right now, of course trying to change the narrative away from one with a federal government intruding into everybody's life, out of control, outside of the realm of anybody's ability to manage. the president's trying to move the political narrative away from that fact to something new, and i think tas why you see him going up to new jersey today. >> the president will finish his trip with a speech, in asbury park on the recovery efforts. back to you. dagen: if he's interested, governor christie can sing any bruce springsteen for the president there in the park, literally, i think he knows lyrics to every song. thank you so much for that. peter barnes at the white house.

more trouble at sea. this time for royal caribbean. a scheduled seven night cruise aboard the grandeur of the seas cut short after a fire started in the rear of the ship around three yesterday morning. the fire was extinguished after two hours and no injuries reported. the ship never lost power and sailed into the port yesterday afternoon. all 2200 passengers are expected back in baltimore today where the ship began its journey after being flown on chartered flights from the bah ha mas, a full refund, and vowture for a future trip. the cause of the fire under investigation. shares of royal caribbean down 1.5% today. from the high seas to high-tech, -ell, sort of high-tech, more like lower-tech. a fully functional version of an apple 1 version computer took in over $670,000 in auction in germany this weekend. the device was created by steve

jobs in 1976, expected to bring in around $4 # # -- 400,000. it was sold by electrical engineer, fred hatfield, who bought it 40 years ago for $700. the original price was $66 6.69. there was a letter offered hatfield to exchange the apple 1 for the 2 for just $400. he wisely turnedded down that deal. the price of oil trading above $95 a barrel, we head to the cme and just flock has the latest. washington post report reveals chie nays hackers have accessed designs for our military's most critical weapons systems, and speaking of commodities, here's how some metals are trading today. ♪

♪

♪ dagen: come back from a long holiday weekend, and, well, see that? a big fat market rally. dow up 180 points, off the high of the day so far. time to make money with charles payne. this hour, he's looking to turn coal into cash. what do you buy on a day like today? >> it's really hard. a lot of people think it's easy, but i'm sure a lot of people watch the show, like, golly, buy something at the all-time high because i feel i missed it, but you felt you missed at 14,000, 12,000, 13,000, 11 # ,000, 12,000. go in there, buy value, a company that's taking market share, that has upside potential

and great management. those stocks are not as cheap as they were a year ago b but they are not known-on-quote expensive. dagen: that apply to this pick? >> it's involved in scrubbing the coal plants and there's a mandate for coal plants to be retrofitted. it's a huge industry. in fact, the 1200 coal fire plants, spending $27 # -- $275 billion between now and 2035. it's 5 huge market. they do refine coal emissions, mercury stuff, the stock's been going up nicely. 300%, that kind of stuff. the stock's made a big move, but ultimate potential in the backdrop is phenomenal. good news, coal back to 40% of electricity generation, and it's not going to go lower. the guys who drove, they will note let it go between four bubs. dagen: and breathing down the

neck unfortunately, what what hurts natural gas benefits coal. >> yeah, absolutely. there's the international markets, and coal people don't realize, coal is the fastest growing source of energy in the world. right now, at this moment, and places like india and china, kidding me? they have to clean up too. huge opportunities for the company. now huge opportunities for the company ten years for now. dagen: charles, good to see you. enjoy days like today. >> i love it. i had, you know, the canadian solar, oh, my god. we took profits today, but just knock on wood. dagen: i'm a grump, but i like when the market goes up. >> do you? dagen: i top. >> i never seen so many people upset the market's up. dagen: not at all, no. i don't like people being down on american companies and down on business, and that's what it's about when the market's falling. >> i'm with you 100%. it's not just fed printing money, but a lot of people missed the rally and

conservatives missed it thinking it's just the fed or obama to get credit. it's a lifetime opportunity wasted. dagen: bent on american entrepreneurships. >> all the time. dagen: stocks now, nicole, nike cutting ties with livestrong, the foundation started by lance. >> right, it's, obviously, to a certain extent you expect this to translate and happen. right now, nike stock up 11.8%. -- 1.8%, the cyclist, obviously, the champion who had performance enhancing drugs, add milted to that, and then nike cut ties with lance armstrong last october, and now it's cutting ties with livestrong cancer charity. that was founded by lance armstrong, most notably everybody knows the yellow bracelets, but, obviously, the livestrong name and foundation continues to help those fighting cancer. also, i wanted to take a look at

tiffany. it was higher than expected sales. they did very well in asia. they had their 175th anniversary. they also had valentine's day and the tie to the great gatsby movie helping it along. dagen: than. interesting article about lance arm jng strong how he's not been on an apology binge to all the people he wronged. expwressing -- interesting for that. thank you for that, noi keel. the summer driving season here. gas prices hovering at $3.62 and climbing. we head to the cme for the latest report on supplies, demand, and just what it's been up to. is it legal for health and human services secretary, kathleen sebelius to solicit donations or encourage private companies to spends money to implement

obamacare? rich edson is all over that story. you will not believe what he's digging up. look at how world currencies are holding up today against the dollar. ♪

>> at 23 22 minutes past the hour, this is the fox news minute. senator mccain crossed this area to turkey meeting with rebel leaders critical of president obama's nonintervention policy in syria. the rebels call for more weapons in the two year fight to overthrow assad. in colorado, gun right activists target lawmakers calling elected officials who voted in favor of stricter gun laws. the state passed expanded laws limiting gun rights following the shooting massacres in colorado and connecticut. in california, firefighters are battling a wildfire that started late yesterday in the mountains north of santa barbara. the blaze grew to more than

1,000 acres as air tankers were growned evacuating 4,000 to 6,000 people, mostly campers in the forest. the cause of the fire under investigation. those are your headlines. i'm lauren green. back to dagen. dagen: thank you so much. oil prices fell, but with the summer driving season kicking into high gear, we may soon see a spike. jeff flock at the cme. jeff, what do you think? >> not much driving in the midwest this holiday season because it was nasty awful weather. demand is down. first the take on oil. everything up today. consumer confidence up. home prices up. there's no way for oil not to be up. >> there's not. it's going to be a tucks of the economy doing, it's doing well this morning, and prices of oil going up. supply and demand is not working now. >> other factors, the boards, we got opec meeting and concerned about u.s. production.

dan, we are producing a pile of oil. they are afraid of prices. >> yeah, saw it today, the eagle formation and texas 500,000 barrels a day, higher than they thought, the oil field in north dakota, again, doing real well, so the -- the middle east countries are worried. saudi arabia is not, and they are the lynch pin in the meeting. >> the numbers up, pretty much flat. we had a terrible -- you and i talked about vacation, the memorial day, awflg. >> right. >> demand lower than we thought. >> right. >> prices not going anywhere. >> 4.09 in chicago, way above what the median price is in the country, but we have issues on refineries all the time. >> i was going to say. there you go. good news, oil, you know, had four straight days of declines in oil prices, i guess it's time to rise. dagen? hope you had a better weekend than i did. >> i watch racing all day sunday, what do you want? that's anywhere dnivana.

longest race in nascar. by butt's about four inches wider than friday, but other than that, everything was great. >> ha-ha. you got a lot of room, girl. a lot of room to go. dagen: ponder that, mr. flock, thank you. asking private companies for essentially donations to help implement obamacare. you can't make this up. republicans waving red flags right and left at health and human services secretary sebelius. rich edson has that. at it again, chinese hackers breach the top weapon designs as the white house says the president will talk about it with his chinese counterparts. details ahead. first, here's some of today's winners on the s&p. ♪

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♪ dennis: down the shore. that is where president obama is headed. chinese hackers reportedly gaining access to the designs of many of this country most sensitive advanced weapon systems. "hangover part three" feeling hung over. it was dominated by ""fast and

furious" six." nicole: there is a that to talk about. we are seeing some big games here across the board. i wanted to also take a look at general motors. gm is up 3.5%. back to you. dagen: secretary of health and human services requesting

donations, essentially, from private companies to help implement obamacare. rich edson has that story from washington. rich: just add this to the list of congressional investigations. a tagged as secretary, an organization established to get uninsured americans to sign upf. the administration is bypassing congress and seeking its own funding to implement the healthcare law.

in a letter to the government accountability office, the republicans right, the secretary's action shows an apparent disregard. the secretary only made two fund-raising calls. in a statement to fox business, said january, the secretary has engaged in a dialogue with a wide for id of stakeholders. federal law allows the secretary to push grant to nonprofits that promote healthcare. dagen: these navigators are part of the law.

they are supposed to be there to help educate people. there is only $54 said aside at the federal level. that is the rub here. rich: they need to go out and fund raise for these organizations to promote the healthcare law to let people know if they are uninsured, they need to go to these. if they don't get that additional customers, that is a real problem for them. dagen: thank you for that reporting. for more, let's bring in our

friend, art laffer. this healthcare law will cost war they had anyone had any idea >> i think you are exactly right. it makes no sense. i think the obamacare, literally, will not make it in the next five years. it will collapse under its own weight. every department, every agency wants more money. yoo know, whether it is legal or not, it is really inappropriate what she is doing. it is just wrong. when you substitute morality for

legality, you are in big trouble to begin with. dagen: historically, hasn't the government, when a government program was being starved, they always step up and give it more money. are you saying that it will go away? >> it will go away because it is ill-conceeved and poorly done. what the healthcare law does is you pay a premium and you get the product below cost. in this case, almost free. that is exactly what will happen to the healthcare law. it will not be able to provide the services to law thomases its

consumers. dagen: all all of it really kicks in next year. it will already be in place. >> they have these long waiting list. you have to wait or two to get your health benefits. that is exactly what will happen here in the united states. it will be really expensive. dagen: it was great to see you,

art. >> it was wonderful to see you. dagen: -- >> by the way, your show was awesome today. i love being with you on a bull market day. dagen: i like it, we all want the economy to do well. we want american businesses to do well and go out and hire our fellow americans. great to see you. president obama in a helicopter right now set to join new jersey governor, chris christie, and moments to to her the recovery effort down the jersey shore. take a look at the treasury market today.

the yield on the ten year. when does that get in the way of the stock market rally? ♪ [ male announcer ] at his current pace, bob will retire when hs 153, which would be fine if bob were a vampire. buhe'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 plannining and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.

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♪ dagen: president obama in a helicopter right now with new jersey governor, chris christie.

is this trip enough to take the heat off the recent scandals hitting the administration? scott brown joins us now from boston. what do you think, senator? >> the question is, is he doing this for the pressure coming off of him? i would argue it is probably a little bit of both. as we all know, those are very, very serious issues. we need to make sure we keep the focus on the things that matter. dagen: james rosen was labeled a

co-conspirator in the affidavit. before we move on, though, senator, i always look at it from the other way. if the president did not go and visit parts of the shore, given the fact that it is the unofficial start of the summer, he would face heat for that to. >> i do not know if i agree with that. he could have gone last month. the fact that he is here now would we have basically said no problems problems in washington, i think, speaks for it so. chris christie is a straight shooter. he will do whatever it takes. i do not blame him. i think any elected governor would do the same thing. we need to make sure that we get the answers.

what is happening is unacceptable and unconscionable. dagen: what happens, though, i have argued in the past, if you have a president who is basically powerless to do anything because he has no capital left to spend down in the nations capital? that alone could be a drag on the economy in the next couple years? >> it is not good for massachusetts. there's one size fits all approach is not good for our country.

listen, bottom line is that this is costing way more than we had anticipated. the new taxes are clicking in. medical device companies are shifting businesses overseas. i am glad the stock market is doing great. you know, as well as i do, that the business and investors are the sidelines. if you actually dig down into the numbers, people are still hurting. we are in $17 trillion worth of debt. dagen: it is great to talk to you. thank you. >> remember what president reagan said.

i him from the government, i am here to help. dagen: thank you so much. take care. be well. stocks now. keith, we were watching bond yields go up. at what point do those yields, those higher yields, get in the way of all of this, well, euphoria for stocks? >> i do not think that they do. use these sectors like utilities really start to come in and sell off. that is really the only sector that is down right now. by the way, it is tuesday. you buy stocks on tuesday, if you have not noticed. dagen: okay. i will use that the next time i buy a pair of shoes. thank you. china continuing its rampant

espionage. it has put our defense systems in jeopardy. >> we are seeing a new amount of information coming out. a new list of defense systems have been hacked. more than two dozen of them. we are talking about ballistic defense systems. analysts say that this could be a huge blow to u.s. defense giving it a leg up. senior military officials say the chinese have skipped over decades of dumbbell bent and saved billions of dollars by doing the hacking.

this explains why the obama administration has amped up its finger-pointing at the chinese in the last couple of months. this task force included that the cyber threat is serious and the united states cannot be confident that our technology system will work under attack from a sophisticated and well resourced opponent, also known as china. the chinese continue to deny any wrongdoing. we are seeing the espionage spread to australia. dagen: how does this change or alter our relationship with china at this point? >> the president will be meeting with them next week. cyber security, the white house

says, is going to be a central issue. the most important thing is, analysts are saying that the u.s. must take matters into its own hands. beef up security on the u.s. side. figure out how to better prevent and detect the hacking faster. analysts need to take more responsibility from the diplomatic side. do not wait until the fbi comes knocking. they need to know sooner. they need to figure it out. dagen: it will be interesting to see what the chinese say to the president. again, how does our relationship these meetings? it is great to see you. thank you very much. "fast and furious" six. dennis kneale joins us to talk

about that. "the hangover three" may be one of the worst movies ever made. we will talk about that. ♪ all stations come over to mission 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 captur. is connecting today's leading companies to places beyond it. siemens. answers.

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♪ dagen: fast and serious six putting the pedal to the metal. dennis kneale joining us with the kids. the sixth installment of this

movie. dennis: a decade old, this franchise. fast and periods six wins the box office. it wins worldwide as well. that is quitt a surprise. it is a good decade old. viewers clearly liked it a lot. and calms the hangover part tree. they swear it is the final installment. dagen: let's get down on our knees and pray that it is over. dennis: though whole memorial day weekend box office for hollywood, the biggest memorial day of all time. this was very good news for hollywood.

star trek, kind of a defeat for the paramount film. fox had a new animated film called out "epic". "ironman" still hauling. dagen: i was of service with candelabra. dennis: like michael jackson to me. the liberace biopic not luring a way a lot of man. dagen: behind the candelabra,

the book, is available on your kindle. dennis: i think people just want to see michael douglas. dennis: we love it. kudos. thank you. dennis does not go anywhere. he just shifts seats. also, cheryl casone will be here. the federal reserve keeps refilling. the cyber threat, chinese hackers gaining access. the u.s. military. they just can't keep up. ♪ tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep, and lunesta eszopiclone can help you get there, like it has for so many people before. do not take lunesta if you are allergic to anything in it.

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rally. i am dennis kneale. cheryl: i am cheryl casone. the unofficial start of summer. the market is soaring. dennis: the cyber threat. chinese hackers gained access to the u.s. military's systems. cceryl: jc penny tops the of brands that will disappear before 2014. dennis: stocks now and every 11 minutes. nicole petallides. nicole: we have a market rally underway. twenty-nine of the 30 dow components are well into the green. up one percentage point.

the s&p has of arrows. 1663. you did have bank of america, merrill lynch upgrading. tesla with news above the $100 mark. confidence numbers are the best we have seen in five years. altogether, after a week week last week, we will bounce back here. cheryl: we will see you 14 minutes from now. our next guest says it is more proof that there are plenty of reasons to be more bullish right now. we are up almost 200 points. we pulled back a little bit. what is standing out to you today? >> the fed will be signaling and

doing a lot of talking about their tapering. in the meantime, consumer confidence at a five year high. the recovery really is starting to take shape. that is giving the fed a lot of ammunition. they do not want to spook the market. i think we get more used to it. the market can withstand the feds exit. cheryl: we know that the fed will pull back. do you think -- they are kind of throwing up their hands already. >> they are doing a lot of signaling. this will be a busy summer. 7.5%. still well above the target. right now, it is benign.

it does not give it a lot of reason to curb. let the second quarter gdp numbers come out. let that be digested. i think the market will be able to withstand it. end of summer, i think that is when we will start seeing it. cheryl: you have been talking about the four pillars of banking. these are all names that you have been backing for the last year. the stock performances are the best performing sector of banking. we are talking double-digit gains for this group right now. >> it is important for these large banks to be the pillars. cheryl: i am worried that i am

going to miss this onee >> yes and no. still well off of its highs. it is a high margin business and the bank. i know this makes the regulators cringe. these are important things for the economy to do better. they allow the banks to earn better profits. a lot of the easy money has been made. these large banks will innovate their way back. cheryl: you really think that that is a message that is at play right now? >> it is absolutely at play right now. it is a very important piece.

the private equity firms are playing a role in this. the banks are doing this business. it is important to the economy. it is kind of the third leg to the stool. cheryl: we have confidence, out today. both of these really giving us a big boost on the market. >> sometimes you win, sometimes you lose. sometimes it rains. i think we got a little bit too cute. we like retailers. we are looking for innovative companies. we are looking for inspiring companies. i will say, having the geek squad, two thumbs up. a very positive experience.

cheryl: the last man standing. thank you. we will talk to you soon. ♪ dennis: the china threat. beijing continuing its threat of cyber espionage. our defense system is in jeopardy. now the white house says cyber security will be on the agenda when president obama meets with the chinese president in california next week. how serious is this a breach? are we in danger? >> dennis, i appreciate you having me on.

the fact of the matter is, you know, based on my experience working with several civilian government agencies over the past three or four years is that the reality is our competitive future, as well as our national security of our country is really at stake here. unfortunately,,the problem is as bad as it seems. cheryl: is this because they want to come up with a new way of disarming that new missile? >> well, the most immediate concern is, you know, them being able to gain a tax. basically having access to our technology. they will be able to develop those technologies as well. they are looking to modernize their military and develop superior technology, superior

weapons to ours. they are using our design as a template or starting point and using that to build an advantage on top of us. dennis: the report came out as naming the chinese as the worst hackers in the world. this is a different theater when they are going out after defense systems. >> i think the main thing that i like to drive home here is that no business in the united states or in the western world, for that matter, should be considered immune from this we have the u.s. government, but also organizations that make up the industrial base, as well as, you know, companies that are in the high tech industries, aerospace industries and such. we are all being targeted ride this threat.

we are developed for another age. for a different world where these threats are not as great as they are now. dennis: you also have -- thank you for being with us today. tune into fox business that 2:00 p.m. eastern. tracy byrnes and ashley will webster will be speaking with former homeland security adviser. cheryl: president obama getting out of dodge today. he is in new jersey. peter barnes has been watching everything from the white house. peter: that is right. the president back in new jersey seven months after hurricane sandy. he will be meeting with governor

chris christie. they will be looking at how the rebuilding efforts are coming along. with congress out of town for the memorial day recess, this is an opportunity for the president to changes discussion away from all of the washington scandals that have been dogging him. when the president went up there last year and met with governor christie, governor christie saying president obama's praises for his response to hurricane sandy. conservative republicans were not happy about those comments back then and they are not happy about the christies meeting with the president on this trip. take a listen.

>> they are looking for somebody who stands up for the wasteful spending that goes on in washington. i think that this will hurt him in her christie in terms of 2016. it may help him in heavily democratic new jersey. peter: governor christie has been mentioned as a possible presidential candidate for 2016. he is running for reelection for governor this year. cheryl: thank you very much, peter. home prices at the biggest annual gain. the best place for you to cash in. dennis: remember these guys? ♪ dennis: the gm job creators will

be here with their latest. let's take a look at oil. ♪ i turned 65 last week.

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♪ cheryl: we certainly still have a rally ahead. we were up above 200 points. now we are up 150 points. cisco systems one of the big movers. overall, you have a sea of green here. taking a look at hertz. nicole petallides. nicole: highs we have not seen

since the year 2007. talking about the fact that it is travel season. that is obvious. as a result, you see the stock up about 4%. avis with of arrows. hitting new highs. hertz is up over 60%. back to you. dennis: thank you very much, nicole. ♪ dennis: with more on the rally, charles payne joins us. charles: has this struck anyone that we are up today on good news? remember the narrative last

week? cheryl: he is not worried about it. charles: we do want a rally that is going up. jobs are being created. the economy is doing well. everyone is nervous all of a sudden. how do you interpret this news. we have the home numbers out. we are back to rallying good news. this would be the perfect scenario. dennis: that could show a certain sentiment shift here. charles: well, you know, the idea, ultimately, is that it should do that.

you hate to say it, but it is pretty gutsy in this day and age. i am seeing rotation. banks are up. you get the sense that people do not want to come out of the market. it is real hard to buy stocks when they are already at a 52 week high. cheryl: what you say to people that look at these stocks and they are worried that they are topping out right now? charles: i would not touch bank of america. i would not touch city. i do not know what they are holding. it did not really get a lot of press. the stock market turned around. banks that were losing money were making money.

i am afraid of those two banks, in particular. cheryl: all right. charles, thank you. charles payne. a wall street veteran helping returning veterans get jobs. dennis: john mccain makes a surprise visit. details next in your fox news minute. here is how your currencies are faring today. ♪ (announcer) scottrade, our clients trade and invest exactly how they want. wi scottrade's online banking, i get one view of my bank and brokerage accounts

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♪ >> 23 minutes past the hour. i am lauren green with your fox news minute. a judge ruled that tax that trayvon martin sent before he was shot art inadmissible as evidence. the ribbon is charged with fatally shooting martin last year. passengers are expected back in baltimore. the cruise ship caught fire

yesterday. no injuries were reported. the ntsb and coast guard are investigating. john mccain met with syrian rubble leaders. mccain is critical of president obama's -- those are your headlines. i am lauren green. cheryl: thank you. appreciate it. moving from wall street to main street. my next guest has built a very unique mentoring program to help returning soldiers get jobs. joining me now is the chairman of the founder of american corporate partners. it is great to have you on the show. you decided you will make a change.

>> that is true. i spent close to 25 years on the street. most of which was merrill lynch. i got it started with my own money, but it took a lot of people to get me going. cheryl: these are one on one mentoring relationships. how do you get people like that to take the time? >> we owe so much to these folks that serve. they are not asking for anything when they come back. it is not easy to think about a career when you are in the hills of afghanistan. a lot of charities, a lot of nonprofits. we do not want money from individuals. we want their time. we want their expertise. rupert murdoch has been a great asset to our organization for

years now. cheryl: certainly, it is an initiative very important here to this company, but also across the country. are you finding that companies are approaching you and saying i need x amount of personnel with x amount those skills. >> sometimes companies ask us to help recruit people. we help people who really are not sure what they want to do. we have such an large number of folks going back to college. they are going back to school. they are not sure what they want to do. they are looking for a career. we try to help them with career development. cheryl: how do you compare what

the private sector is doing for our veterans versus what the administrators programs have been doing? >> well, we do not have a political agenda. we have folks from both sides of the aisle helping. we have people in the administration. the department of defense has been great. if we can get the private sector involved in this issue in helping our guys, don't think about careers in helping them succeed, we will be all better off. cheryl: doing something very different. it looks like it is a great program. thank you very much for coming on the show. dennis: we have some breaking news. the house judiciary committee is investigating whether eric holder lied under oath in his

may 15 testimony. the panel looking at a statement holder made when hank johnson asked him whether the doj could prosecute reporters under the espionage act. holder denied it all together. does that contradict holder's claim that he was not up to speed on this whole issue? cheryl: we will continue to follow that breaking news and also the markets today. home prices really jumping. we will talk about cash in on that and why it is so important to the overall economy. dennis: the quality of the movies or the horrible boreal day whether.

first, let's take a look at some of today's s&p winners and losers. ♪

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>> once again, major gains right now for the major averages. the dow, but i want to do a couple things differently with the leaders. these are leaders, the names early in the dow now, that's by a percentage basis. look at volume, the most active stocks op the dow 30 by volume, and bank of america, the financials talk about twice in the hour of "markets now," ge, microsoft, and fieser. look, this is a broad based rally. nadz deck higher by more than 1%. again, some of the most active

stocks, stocks you know, microsoft, stuart, there you go, making money today. cisco, intel, oracle, again, a broad based rally. bottom of the hour, nicole on the floor of the new york stock exchange. you talked about auto makers. one in particular. >> right. it's easy to talk about tesla. so many headlines, it's above a hundred a share today moving to all-time highs. they are doing well. they posted their first operating profit ever. they get substantial help from the government because they are electric green vehicles. there's been a lot of shortages. there's a 20% of the shares, the levels were short. now we see outstanding shares down to 12.3%. there's short covers, and elan, obviously, the founder, head of tesla and now he has the golden

touch. under his realm. people are looking at that stock. tesla taking wall street by storm and doubling since april is a good way to say it, above the hundred dollar share mark which is key. back to you. >> thank you very much. case schiller 20 city index of home prices rising at the fastest rate in seven years with west coast cities leading. home prices rising more than 20% in phoenix, san fransisco, las vegas. home america ceo, greg rand, has eyes on two other cities now. thank you, greg. what two cities are they? >> i like chicago, all right? chicago is one of the only major, like really big cities, big population cities, and when i say "chicago," it's chicagoland. suburban chicagoland, buy a family home, rent out for 5%

yield, just on the rent's for the expenses, and that's the only place to do that. you can't do that in boston, dc, or new york, the east coast cities, and it's rare in san fransisco, san diego, l.a. so for the standpoint if you play big u.s. metro, chicago's the only place. >> 9.3% unemployment in chicago, higher than the national average, bad publicity about shootings. how come that's not enough to make you not like chicago? >> suburban chicago. i'm nervous about the fact that like new york and california, they don't have their arms around the financial problems so there's going to be a reckoning down the road, but we build for single people reits. you have to balance it out. you don't want to avoid chicago like, where it's the center of the midwest, drawing population from all over the midwest. whatever population is lostis usual down to texas,florida, z cases where everybody is losing

population. to play that, get a good deal, low basis, rented out for profit, and be in the major metro, i believe chicago's challenges will be solved, but if not from the standpoint of crime, the suburbs are robust. the other is winston-salem, north carolina. >> why? >> it's a balance. play big city usa against small town. winston-alem is in north carolina, and every city there is a buy for us now. population, migration for the north, low cost of living, all fundamentals in tact, but north carolina is the lowest foreclosure states in the country. it is one of the highest foreclosure cities in nards so that balance of having long term gain in tact, a little short term gain, and when we see foreclosures, we just don't see

obvious lower prices, but we see demand. if you raise your kids in a house, lose the house to a foreclosure or short sale, your biggest motivation right now is to shield them from impact, and so go to the same school monday they went to friday once you move, and we track households as an indicator of representer demand in the cities thereby increasing yields over time. >> thank you, greg. help in the housing market that continues to recover, slowly, slowly. dagen: fast moving wildfire claiming a thousand acres in southern california. details coming up in the west coast minutes. >> jib jab next with a new business keeping the interpret clean for kids. we went out and asked people a simple question: how old is the oldest perso you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.

and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

♪ >> i'm tracy burns with the fox business brief. well, there's a post memorial day rally on wall street today with the dow and s&p on track to close at record highs. right now, dow up 148 points. former guatemala president has been extra extradited to the u.s. for money laundering. he laundered money from the government from bank accounts in the u.s.. expected to appear in a new york federal court today. how much would you pay for oracle of omaha?

the billionaire investor has a starting bid of $25,000. it starts sunday through june 7th with the proceeds to san fransisco homeless charity, the glide foundation. the past five years, the top two million dollars. that's the latest from the fox business network gives you the power to prosper.

dennis: remember these guys? ♪ dennis: jibjab creators here with story box, and we welcome from los angeles, greg and evan, thank you for being with us, gentlemen. one of you go first because i don't know which is which, and, greg, tell us what story bops are. >> sure. story bops are little creature living inside our iphones and ipads with the mission to help kids have fun learning, and also

to help parents with fun utilities that make parenting more fun. dennis: evan, what are you going to do? playing the child protection angle. what are you doing that other apps don't do now to protect children? >> well, i think one of the biggest things is greg and i both, between the two of us, we have five kids, and we look at the way they engage with media on devices and the web, and we think we can build a better, safer place for kids to play and experiment and learn and have a good time so no external links, no purchases, no ads. it's a locked down safe place for a low monthly subscription. dennis: greg, jibjab is famous because you take pictures of your friends and souper impose them on soul train dancers. that happened to me. it was humiliating. is this the same? giving me the tools to create

animation rather than playing something created for me? >> absolutely, yes. it is personalization as a big pillar. as mentioned, really, our kids love jibjab, but it is not really the appropriate place for a 3-6-year-old, so we started experimenting with storybooks. we have an ipad app called "starring storybooks," put your children into it where they are the star of the book. we also have over 3 million of those read since we launched that product. we have a product on storybahts.com, stars videos to put your child in that video, and over half a million are made by parents putting kids in them. personalization is a big part of this. dennis: nice. evan, you started jibjab in 1999 before the huge tech wreck, and in some ways, survival itself is a miracle. amazed you have not been bought by somebody. why not sell yourself?

>> well, we are having a good time, and maybe if somebody put enough zeros at the end of the check, we might, but the truth is, we're really excited about building this new brand for kids, and we think there's a ton of opportunity, and we think we have almost 14 years of experience so we think we got a pretty good background to follow through on. >> and with story bahts, we think, like, in ipportunity to e street for a new generation of kids. how they engage with media is different, and all the experiences we've had producing entertainment with jibjab over the years is perfect for kind of helping to define what that -- what that experience could be for kids today. dennis: yeah, you've got a $5 a month recurring revenue model; right? apps are a dollar and gone forever. >> yep, yep, well, what we are doing is part of -- as parents, it's hard to find high quality

apps, so the vision for story bahts is we're going to create basically a one-stop shop for parents so that if you want a great reading app, we got that. if you want a great map app, we've got that. entertainment, coloring, puzzles, the idea is to make is easy for paraphernalias and provide -- parents and provide a ton of value for a relatively small fee. >> look at our starring -- sorry, look at the starring book alone, a good book is $2-$5 so for a $5 fee, there's access to over 30 books. it's -- we think we're providing a big value for the siewrls. dennis: it's a nice private kid ensure safety, you are in a great area. thank you for being with us greg and evan. good day, sir. >> thank you. >> thanks for having us. >> thank you. dagen: back to the rally, up 156 points, off from section highs though, quarter till, to the floor with keith bliss, a en,

keith, big day for the dow, just off the session highs, but what do you think the fed discusses tapering off that the argument for stocks dispates. >> it does. the market's reaction to what the fed says in the bank of japan says is at this point in time, you see rallies, and they make utter rainses, i think what's interesting based upon economic data is what's happening to bond yields on the u.s. corporate side. the ten year bond is e vis rated at this point in time, and yields on the temperature year are breaking art right now, and because of the rotation in equities, and that's why we have a rally here. capital goes where capital is rewarded now in u.s. equities. >> which sectors do you follow? the obvious here is going to be your banks with consumer confidence, it's your home depots, ect., is that what you

buy into? >> yeah, any of the economically sensitive sectors dependent upon a good strong economy where consumers spend a lot of money, financials, health care, tech stocks, any discretionary names from the low end of the consumer to the upper end. they do well if people believe the economy's back on firm footing and move forward from this point. >> best buy we discovered today. keith bliss from the new york stock exchange. keith, thanks. >> my pleasure. >> energy futures heating up with oil up $95 a barrel. let's head to the trading pits of the cme and our phil flynn, phil? >> hey, the crude leading the way on concerns, of course, what's happening with the rebels in syria and also talk about that this could expand beyond the syria into lebon. all that talk is driving up the brent crude along with good economic data here in theeu.s. adding to the upward pressure in the oil market. looking around the board now, it's the brent crude that's dragging. the economic data offers

support. we also have the product up as well. look at rbob futures up 3.5 cents, heating oil up 5.6 cents, ultra low for diesel, a sign that the demand expectations are rising after all this strong economic data, but be careful. today is option expiration day on the product. that could mean even more volatility in that market as we move forward. the big thing here, if you look at oil right now, look at the spread twinge the wti and brent. it's brent leading the way, and if brent breaks down, i think the whole complex is in danger of collecting back right now. back to you, dennis. >> thank you very much, phil flynn. ♪ >> and time for your "west coast minute," a nevada panel approved two bills to raise the unemployment tax for nevada companies. some 57,000 employers could soon be hit with a higher rate as the state trying to pay back the federal government money borrowed during the recession. increase amounts to an annual

charge of $22 a year per overall worker. a fire burning in southern california has already destroyed about a thousand acres. named the white fire, the blaze is only 5% contained, but as of now, seems to be moving away from homes and businesses. 6,000 people evacuated from the white rock campground, and the fire burns outside santa barbara, 85 miles southwest of los angeles. years after foreclosure troubles, new home permits have a jump in phoenix. month of april, 1290 permits issued, top spots in the valley were in the southwest valley, gill bert, queen creek, and prices climbing with average at 280,000, according to housing analyst, rl brown. that is the west coast minute. big day for housing, story of the day. >> sure is. yahoo for hulu? that story ahead in media minute. >> as we break, look at the winners over on the nasdaq, and

by a percentage, a few names to watch. microsoft was up there earlier. ♪

>> time for the media minute. for movies, memorial day to remember. "fast and furious 6" getting furiouser winning the box office in the u.s. and worldwide. f6 hauled in $120 million in the u.s. and over $300 million worldwide, good news for comcast universal, and not bad for the franchise now a decade old. warner, the hangover part 3 taking second place in the box office over $50 million. it was the first time ever that

the holiday weekend brought in more than $300 million combined. suddenly, hulu is the bell of the ball. yahoo reportedly making a bid for the online video website making seven suiters for hulu, unloved by the three rival owners, disney, news corp., and comcast. they have just 3 # million paying subscribers compared to 30 million at netflix, and wonder what they are lose if they lose content stream from the bickering partners. >> 24/7 wall street have brands that will disappear before the end of the year. in 2014, there's no more jcpenney, nook, living social, and leap wireless, and 24/7

wailing street says it's the brutally competitive nature and importance of not following behind of figure sigh and innovation. you need money. >> those are good picks, actually, of that living, but volvo, the idea of volvo disappearing? that's hard to believe. overall, brands are undervam, pumping millions into the brand equity, and i think that's not value where it should be on the balance sheet. >> i disagree with martha stewart magazine. i think it goes online, whatever. >> digital is where print magazines go to die, okay? it it's digital, it's dying. >> we are not dying on the markets today. look at the markets because, really, we're still firmly in rally move, off session highs, up 145. david says now is the time to cut and run. he's joining melissa and lori. huh. >> are you ready for the u.s. to be involved in syria?

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♪ melissa: back to work and they are buying today. i am melissa francis. lori: i am lori robin. melissa: housing prices rebound. lori: bond traders running for the exit. melissa: chinese hackers brazen attacks. the new beer as we learn they may have access design for our militaries most critical weapon

systems. lori: let's get to the new york stock exchange and nicole petallides. nicole: some firming economic news is certainly correct. we had a selloff last week. today, a different picture. the dow jones industrials of over 200 points today. twenty-nine of the 30 dow components have been in the green. case shiller numbers showing home prices on the rise. also, just looking at the u.s. dollar today. it is higher. also keeping an eye on tiffany. doing well with their sales numbers. coming in and beating