dagen: hey, charles. good to see you, my man. selling out to china. forcing americans to shape up or opt out. why the obamacare law will have little tolerance for smokers and the oldies. privacy rights are a concern here. those stories and so much more today on markets now. ♪ dagen: i know it will be a good day because i did not trip walking over here. there is a new report out on eye contact. it is falling at alarming rates.

what is to blame, smart phones? tablets? i want you to treat us and tell us what you think. we will get to some of your responses later in the show. right now, it is stocks now. lauren simonetti is at the new york stock exchange. >> we are looking at a market to the upside. up about 78 or so points. financials are putting in a strong performance. energy is down. dagen: close to sealing a deal

to require smithfield food for $4.7 billion. the largest chinese takeover for an american company today. bob mcdonald is with us today. governor, good to see you. they are promising to keep their jobs there. not move the company. the management will stay in place. are you good with this deal? >> i just found out about it yesterday. it is hard to build a hog farm. i think a lot of the jobs in that establishment will stay in virginia. they have 1.3 billion people

there. i think it could be good for virginia and our jobs long-term. i think they felt it was a deal they could not refuse. dagen: have you put in a call to the chairman of the company? >> i have not yet. we got a courtesy call yesterday. i only know what i have gotten from some of their representatives and some of the public forces. obviously, it is a huge employer for us. we want those jobs to grow here by exporting more to china and other places. they felt they needed this hong kong presence.

dagen: right. i want to talk about jobs overall. the unemployment rate in the state of virginia is down. that's has fallen just in lockstep. the national average is still higher at 7.5%. how much credit do you deserve? is it mostly government jobs? >> no. in fact, it is only 9% government jobs. 9% are government jobs. it is technology.

it is some defense contracting. it is tourism. agriculture has been a huge part of that. listen, the government, in my role, has been to keep taxes low and our strong right to work laws, holster our education opportunities and to be positive about business. i just got back from china and japan for 17 days. we have the second lowest unemployment rate in the southeast now. dagen: you talk about taxes. there are plenty of conservatives that do not like what you have done. frankly, they see it as a multibillion dollar tax increase

>> we have cut spending back to 2000 levels. we really have made our government a lot more lean. transportation has been an aging problem for years. there will be some additional revenues. there are not any free lunches. we have to make that our infrastructure does not crumble. we are a low tax state. it is a good place to do business. that is why we have low unemployment. dagen: my relatives and friends will be chewing my ear off about the higher taxes.

i know they will not be happy. >> you will be able to get there a lot faster because the roads will be better. dagen: governor, it was great to see you. >> thank you, dagen. dagen: thank you, governor. smokers and overweight people be prepared. employers under the new law will now be able to charge higher premiums. peter: the department of health and human services has finalized roles, as of yesterday, that would allow companies to reward workers who participate in corporate wellness programs. such as lower weight, lower cholesterol, lower blood

pressure. some say that regulations could be unfair for some workers. >> on the one hand, they are trying to ban discrimination based on health status. on the other hand, they are trying to say that tom is good discrimination. peter: the regulations would also give discounts of up to 50% for people who quit smoking. regulations are designed to reduce. the employers can make exceptions for certain employees due to a medical condition. dagen: thank you very much for

that. thank you. be well. pending home sales hitting a 30 year high in april. if the housing market recovery the one thing that could force the federal reserve hand? let's bring in anthony. chief economist at chase. thank you so much for that. the market was clearly shaken up yesterday. is housing what will force the fed to do something? >> i think that housing is just part of the story. the economy is improving. housing still has a way to go. at the peak, it was --

certainly, the studies out there and the estimates suggest that housing prices today remain below their value. something like 7% undervalued. dagen: whatever the reason is that the federal reserve will move on to remove. >> it does not make sense to continue to buy securities month after month at a trillion annualized forever. that certainly is not as positive for the market.

remember, when the economy is improving, it means that corporate profits are getting better. more people are getting jobs. we created over 6 million jobs. funny things happen. the economy has gotten better. dagen: it has gotten better. let's not break out the fireworks. one last thing, is the market in a position now where we will see this constant back and forth like we did yesterday? a couple of great days and then the market pulls back. >> it is still a relative unknown.

until we get a better idea, the market will remain nervous. the s&p 500 jumped. you have double digit year to date numbers again. at some point, a little volatility or pullback is not a bad thing. dagen: still don't like it, though. anthony, thank you. be well. >> thank you. dagen: the cyber threat and whether u.s. businesses should be able to support an attack. the lack of eye contact and smart phones. the devices are being blamed for not seeing eye to eye with your kids, family and friends.

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dagen: stocks now. lauren is looking at first solar. >> thanks to goldman sachs upgrading first solar to a buy rating. they see another 24% increase in the price target through 2015. this recovery and solar is just six months in. back to you.

dagen: thank you, lauren. some investors are arguing they are not getting enough information. rich edson is live in d.c. with more information. rich: they have to disclose that there is a reasonable likelihood that they could be attacked and that there is a bit to their revenue and cost increase. the chairman of the senate commerce committee writes while the staff guidance has been a positive affect on the information available to investors, it is still insufficient for investors to earn the true cost.

>> wall street needs to understand that the cyber threat is real. they should not just be looking at the companies with solutions. they should be looking at the companies that they have a problem as well. rich: the fec chair has responded. there is also a question for how much companies should be disclosing. you do not want to exactly tip your hand and get too much information. dagen: thank you for that. rich edson down in washington. tax breaks for the rich.

they are footing most of the bill, shouldn't that be the case? tesla cofounder talking with our frrend walt mossberg about mars. >> we could warm mars of overtime. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than y expected.

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♪ >> 23 minutes past the hour. this is your fox news minute. the ite use, meanwhile, denouncing russia's equipment as a step in the wrong direction. eric holder running into some problems. those meetings would discuss guidelines about doj guidelines. the associated press says it wants any meeting to be on the

record. preliminary test shows two letters that were addressed to michael bloomberg did contain the deadly poison ricin. they referenced bloomberg's support for gun control. dagen: two house committees will hold new hearings next week. attorney general eric holder, jack lew and irs official lois lerner. she oversaw the tax division at the agency. she said last week that she did nothing wrong. she is now on paid

administrative leave. in 1996, lerner is said to be investigating a republican candidate for senate who was running against vick durbin and illinois. she said she would drop the case if she promised to never run for office again. those questions were said to be intrusive, asking about their religion and prayer of several people, including colonel oliver north. the tax break that wealthier americans will be getting. more on the lack of eye contact and smart phones. handhelds being blamed for not seeing eye to eye with your

kids, family, friends, coworkers. tweet us your thoughts on twitter. here are some of today's winners on the s&p. ♪

dagen: the congressional budget office says 50% of the tax breaks in this country go to the rich. the rich pay most of the taxes. the lack of eye contact and smart phones, handhelds being blamed for not seeing eye to eye with your family, kids, friends and coworkers. is that okay? tweet us what you think. stocks now. krispy kreme looking sweet. lauren, what is going on? >> they report earnings after the bell today. we will bring you those a look . it makes me hungry. year to date, this stock is up 47%. krispy kreme has a recent history of big surprises affer they report earnings.

there has been a beat or a miss on eps by a pretty large margin in seven out of those 11 recent quarters. dagen: i want a dozen hot krispy kreme donuts in one sitting. i did that once in high school. they were delicious. >> i am so jealous. dagen: you should be. thank you for that. lauren simonetti. we have the editorial board member at the wall street journal with us now. >> love to talk about how much the wealthy benefit from tax

breaks. they do not like to talk about how this results from the tax system that they prefer. we do have the top 20% of earners sending washington 70% of their income taxes, we knew that the top 1% paid 37%. this is the inevitable result. dagen: some of these tax breaks, the charitable contributions that anyone could make him a mortgage interest reductions, for example, it turns into a hit list. >> there is an argument for tax reform. the question is whether the president is serious about doing it. traditional tax reform means lower rates in return for closing loopholes.

this president has kept in place -- he wants it both ways. one question here is whether he is serious. dagen: i am talking about not reform and not lowering the tax rates. >> the mortgage interest deduction is there. there is obviously a huge lobby that will fight that. there are loopholes that could be closed and good argument made for closing them. the president's goal is to raise revenue. he needs to permanently increase the size of government in order to pay for some of these items on his agenda. his real goal here is to increase revenue. the goal for conservatives,

however, is to spur economic growth. dagen: i think the biggest argument has to be this irs scandal. every conservative guess that we have had on this program kind of button what they are saying with that. >> well, it certainly put a focus on the irs. i think that the idea of the targets of the irs are political. to the extent that it focuses the attention on the irs and what they are up to, yes, it is all good. i think these scandals are giving him the way of anything the president wants to do going forward. once they blow over, if they blow over, it may have some

momentum. matt baucus wants to do this. he is not running for reelection. that is a good sign, i think. dagen: getting back to the irs scandal, that certainly gives any lawmaker a selling point to their constituents. may be beneficial for everybody. >> hopefully. dagen: it was great to see you. thank you very much. it makes talking about this exciting. the irs still scares me. i cannot help it. pay attention and stop checking that smart phone. how technology is wreaking havoc on our etiquette. there is a huge industry fight going on off the coast of alaska. elon musk, why mars is worth all

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♪ >> i am lori rothman with your fox business brief. the battle for clearwater is heating up. it is now postponing the meeting. foreclosure sales fell sharply in the first quarter to the lowest level since 2008. sales dropped 23% since the same time last year. low mortgage rates has helped get the housing market back on its feet over the last year. sears closed 333 locations.

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a message from the american academy of orthopaedic surgeons. dagen: when was the last time you had a conversation with someone while either you or they were checking their cell phone made conversation? checking their cell phone. you know what i am talking about. we have a doctor that is a clinical psychologist joining us now. >> there is no reversing this. when i came out, we have known each other for many years, i have been listening to you in the morning and so on, you were on your smart phone. you said, sorry, jeff, i can't talk to you for a moment. we are both i toss game.

it really begins to suffer. dagen: i tweeted earlier that when someone does not make eye contact with me, i want to smack them. hey, we are having a conversation. look at me. it used to be that when you did not look at someone, you were a little off, maybe. we do not think that anymore, do we? >> no. i knew immediately that you were multitasking. this is something that you can do between friends. if there is someone else, for example, to other people doing that and they did not know each other and one person is constantly checking their smart phone, the other person will

take that the wrong way. dagen: it also impacts eye contact in general conversation. even if there is no smart phone around. >> people are so used to being plugged into their phone, that this is the way that they communicate. it now becomes much more uncomfortable. i think we have always been uncomfortable with the one-on-one. we get better with that as we get older. now, we have that excuse. we have that phone that we can turn to whenever we get uncomfortable. dagen: at the irony is, if you are a parent and you are trying to basically raise children with great skill, people skills, if they are the ones that make eye contact, they will be the ones in the minority.

they are willing to put the phone aside and move it away and have a conversation with someone. >> i think you are absolutely right. we have to find a middle ground. i think the purpose of all of this is we just have to be a little more cognizant. pay a little more attention. dagen: will we get to the point where we cannot even have conversations with each other? >> i think it is happening now. there are certain cultures. i do not want to mention any. i do not want to be politically incorrect. some prefer to text to each other all the time. they are already having issues

being able to talk one on one. dagen: i had a boss who sat next to me and 82 and he would not talk to me. i would get in his face and basically shout him down. >> i love when you do that. that is your personality. that is you. i think a lot of these things have become an enabler to not talk to one another. that becomes the real issue. you can yell at me anytime. dagen: i do apologize for looking out my phone. >> i love you. dagen: as i do you. stocks now. shares of facebook are jumping today.

>> i think this is an opportunity that investors have been waiting for. the stock has sold off. investors who want to get into that stock weight for the appropriate opportunity to get in. we have an upgrade from jefferies. investors, when they look at social media stock, it all comes down to advertising. once advertising has come into play, that is where their dollars and cents comps from. back in november of last year, we were talking about how facebook was a teenager stock back in. investors have been trying to get that back above levels. dagen: jonathan, it was great to see you. thank you very much.3 >> always a pleasure.

dagen: five countries, including the united states, trying to reach an agreement. fox news dan springer is on that story joining us now from seattle. >> hey, dagen. this really is a big deal. we are essentially talking about a brand new ocean that opens up every summer. diplomats in the five nations have met in washington, d.c. twice now trying to hammer out some round rules. we have rdc and his mentality. environmentalists are pushing for --

>> as it starts to melt, there is increasing access. >> those five nations, canada, russia, norway, denmark and the u.s. dagen: what do the fishing industries have to say about this and the potential? >> it could be in the very near future. they are always looking for that great fishing bowl, of course. it would mean big money. especially for the alaska fleet. one arctic researcher thinks that the deadliest catch could already be migrating north. >> the biggest occurs all the way up to the u.s. russian line. that would be the resource, from the temperature standpoint, you

know, probably the most adaptive to move up to the arctic region. >> one of the goals is to ban the fish hungry nations of china, japan and south korea from putting their nets in the water first. dagen: thank you for that. elon musk up next. talking with walt mossberg. some of today's winners on the nasdaq. ♪ we went out and asked peopl a simple question:

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dagen: tesla ceo elon musk baking some surprising comments about his company and its future. adam shapiro is there with the latest. hey, adam. >> hi, dagen. i will talk about tesla and spacex. how much did nasa estimate it would cost to go from earth with human beings to mars? we will talk about that in a couple seconds. tesla. it is on its way to profitability. they wwll be introducing an all electric tesla model that will be under $40,000 a unit.

there will also be announcing supercharging stations. it will be a big boom for tesla, according to musk. there was the discussion of space. spacex. humankind -- we will land on mars in our lifetime. he said that although the red planet is colder than earth, we can heat it up with global warming. here is more. >> the atmosphere is carbon dioxide. it shows you how long carbon dioxide glass. >> also how slowly it warms up a planet. >> we have practice. mars is, you know, it is a fixer

upper of a planet. >> dagen, how much does that fixer up cost? cheaper to go to bars or bail out the banks? dagen: $20 billion or something like that. >> the estimate was 500 billion. dagen: thank you. good to see you. throughout the show, we have been talking about smart phones. some people do not think that smart phones have anything to do with the lack of eye contact. i did hear from twitter and

carnal. he is being a smart mouth. i tweeted back to him. he said, have a great day. we are still here. calls for president obama to get talk. coming up next, dennis dennis ke and nicole petallides. by now, you have probably heard about people cutting the cord on cable tv. now, it turns out that more are cutting the cord on the internet and moving to smart phones. stay with us on "markets now." ♪ [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomove can tell you exactly where it is,

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>> i'm dennis kneale and look

who is here. >> in the flesh. great to see you issue everybody. the dow up and new economic worries jobless claims higher than forecast while gdp revised lower. we have an analyst who says, still, all big ben and fed. >> the cyber threat, calls from president obama to get tough with china over hacking. a guest warns about the fallout. >> why obamacare is targeting overweight smokers and how much premiums will be going up. >> although, if you are fatter, shouldn't you pay more? >> stocks every 15 minutes, a look at the markets, lauren, wall street ignoring the negative reports this morning. >> they are. hey, dennis annie coal. we have up arrows across the board, dow up 74 # points, financials in the lead, and bank of america the top performing dow stock at the moment. eweutilities strong today aftera company agreed to buy nb energy.

we have momentum there as well. energy not doing well. crude oil turned higher, lower for much of the session and home builders, mixed performance, mostly lower, back to you. >> thank you at the new york stock exchange, appreciate it. next guest says when it comes to the markets and economy, the thing to worry about is the administration's poor decisions. the chief investment officer joins us now. why do you think current fiscal tax policy are a threat in your mind. tell us. >> well, we've seen a great deal of stimulus poured into the economy by the med fed over the last couple years and compared to a drug, and a drug, any time it's induced in a system, you feel great. i think that's why there's been a run up in the equity markets over the last six months,

enwhen, in our opinion, it's unjustified by the fundamentals in the market, and you see a lot of that in the details of the gdp numbers today, whether it's reduced federal spending from the sequester or corporate profits down in that period, and so -- the administration continues on this policy that they are simply going to raise tax rates and is, you know, wealthy americans pay for the social reforms that they want, and all of this stimulus, i think, will have a price in the longer term. >> i understand what you are saying, tom. obviously, the feds print money and help out the economy, and our markets, and you say that's unjustified. don't many you think the fed had to do something, not the wrong thing over all the years, but maybe pull it back now? >> oh, certainly, not, yeah, absolutely, we had to ce cover from the financial crisis in 2008 and 2009, but they continue, you know, to go op the policy with no end in sight, but recently, i think, the markets

are aware of this, and it's driven a lot of the gaining seen in the equity markets, and i question whether it's continued support is really helping the overall economy, and i think you see that in the figures, and so, you know, i think that the economy continues to recover well and longer prices perform well, but we are due for a pull back in the markets, and so it's important to look for values selectively within the economy. >> tom, tom, i want to get to the stock picking but i want you to quickly talk about the administration's taxes and do that in 30 seconds or less because you are not pleasedded with those policies. >> no, definitely not pleased with the tax policies. look at this week. you see the apple ceo defending their tax strategy where apple, a profitable company, is not paying any taxes at all in certain periods, and if you fast forward, i don't think that many americans have seen the full impact that the tax exchanges are going to have on them. recently, we saw the payroll tax increase.

you're going to have a lot of wealthy americans, truly, when you talk a hdredmilon or more, the resources where there's legal consul at that particular times or accounts, create strategies, going to reduce or mitigate new tax increases. that burden is going to fall on what i define as middle class america, people whose both spouses work, high incomes, woking hard, but there's a significant increase in taxes this year. >> tom, get to the stock picks. there's royal dowch shell, apple, and ge. start by talking about royal dutch shell, year to date, a loser. >> sure. if you are buying rights now, and if you look at the energy sector, the evaluations are good, you got a yield over 5%, and we think it's attractive,

and also here recently in the last couple quarters, production in shale oil continues to increase, and i think that's going to be a bigger story longer term. >> i hear you. talk about apple. where do you think apple is headed? above $700, and now in the 400 range. where is it going? you want to buy it. where is it going? >> sure, sure: well, the 700 range is a justifieded target price for it at present. it's beaten down badly, and, you know, it's more intuitive for me and the firm. i have three kids, and we have 14 apple devices connected. >> that's the first sign, something in the home, it's probably a hot product; right? quickly on ge, where is that headed? >> well, we think that if a diverse portfolio of businesses benefits from the recovery in the markets, en, you know, for whatever reason, it's still got evaluation that we think is attractive and a solid pick for

a core portfolio. >> tom carson, thank you so much for the insights. i hear what you say about taxes, the policies, and three great picks. we'll have you back. >> thank you. >> cyber spy fallout, and lawmakers call for president obama to take action. senator carl levin of michigan urges the president to warn chinese leader that the u.s. will impose real costs on china if it continues to steal american intellectual property. the two leaders sit down in california next week and joining us now from washington, we got dan bloomenthal, a resident fellow at the american enterprise stews. thank you for being with us, dan. >> thank you, my pleasure. >> what's the top advice to give the chie need leader next week on has hacking? >> tell him we will impose costs upon china for stealing our

trade secrets and intellectual property and destabilizing behavior in cyberspace that has to do with military and strategic issues. >> i was thinking the fact that the chinese own 1.7 trillion in u.s. treasuries and assets, and we need them to buy our debt kind of makes us not able to do a lot. what could he threaten 1234 >> first, dennis, on the debt, two ways, if they do anything with the debt, it harms the economy as well, losing the value of the debts they are holding, and it's interesting because they really want to get a better value for the dollars. they want to invest in the united states, and one thing president obama should tell the president is it's going to be much harder for china to invest in the united states with the suspicion surrounding them b around the chinese hacking and theft of intellectual property. >> could the u.s. say because you're messing with us

hacker-wise, we're going to block investments? do we have legal authority to do things like that? >> yes, and we have, we have specifically on anything that has to do with companies that provide services, telecommunication services, and we have a process in washington, d.c. that reviews any foreign investment in the united states. >> yeah, which bothers you more? up until the last week or so, all we've been told is that the chinese are interested in corporate espionage that's not a defense play, but now out comes a report saying they hack into actual defense systems. is it the military stuff or corporate espionage that worries you more? >> well, both are worrisome. one is in the espionage and crime and the other is military, destabilizing, playing with fire, and chinese probe our systems and probing to see what kind of threat they can pose in cyberspace should there be a

conflict between the u.s. and china. we need to be very straight with them, not about the consequences of that, but also exercise our own cyber capabilities so they know what we are capable of. >> i'm sure we do that every time we accuse them of doing something, the chinese say, you do it too and tell mom. thank you, appreciate it. >> my pleasure, dennis, thank you very much. >> okay. >> with the cyber attacks op the rise, the security and exchange commission pushes for companies to disclose information to investors coming to dwawl -- actual and potential attacks. rich edson has the latest from inside the beltway, rich? >> how much should public companies divulge about the security plans, how much they were breached, how much they lost, and you mentioned it, there's guidance out that says if you had a material breach, lost money, spent money, or a likelihood to be breached, you should disclose that to investors, but those on capitol

hill say that's unsufficient. from the chairman of the senate commerce committee, jay rockefeller, he says in a letter to mary joe white, the fcc chair, "begin the growing threat, the fcc should elevate this guidance and issue it at the commission level as well." the fcc in response saying it does have sufficient guidelines here and the commission staff is actively engaged in discussing public security matters and guidance to remind the staff's view of the importance of cyber security disclosure and others said like analysts that perhaps analyst should disclose more, and even the existence of the security plan. >> wall street needs to understand that the cyber threat is real and that when they look to invest the dollars, they shouldn't just look at companies with the solutions, which is where a lot of the money is going right now. they should be looking at the companies that may have the problem as well. >> those who are looking for more from companies are basically saying you look at

what lawmakers are talking about, some $300 billion stolen last year alone in intellectual property, much because of cyber security breaches, and that's not reported. there are others who say, look, they're not all that much you can report about your cyber security plans and prevention basically because you don't want to tip hackers. there's a balance to work out here, and washington, d.c. is working through it now. back to you. >> right, rich edson, absolutely they have to when you talk about cyber attacks, you talk about intellectual property and how much is lost, it's a big deal. rich edson, thank you so much. >> all right. >> by now, you heard of people cutting the cord on cable tvment now more folks are cutting the cord on internet access relying on smart phones and free public wifi. we have the ramifications ahead. >> and rich people getting more benefits from the tax code. is that a bad thing? as we do every day, let's take time to look at oil right now. ♪

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>> a look now at the dow jones industrials, components majority in the green, financials leading the bay, bank of america, jpmorgan, and on the downside, mcdonalds and coca-cola on a day we are gaining. stocks now, and lauren on the floor of the new york stock exchange with news on clear wire. lauren? >> those shares surging with a new annual high of $4.34, up more than 24% as you can see. essentially clearwire shareholders say this, sprint made an offer for the company weeks ago, upset that offer as well. clearwire set to vote on it tomorrow, but, oh, last night, dish network comes in. you see there, stock's up 1 #%, dish saying, all right, we'll

give you what we think is a better offer and value the company at $6.5 billion, some 30% premium so it's getting a little bit complicated with those two companies bidding for clearwire, but, obviously, they are the winner today. back to you. >> lauren, exciting to watch the bids and the big moves, big stock market. great stuff. thank you. ♪ >> time to make money with charles payne. two major solar stocks up triple digits in the past year, and now goldman sachs is jumping og the solar band wagon, time for others to jump with it? >> it was upgraded this morning so they think there's a continued bidding war which is why the stock's going higher. for people watching the show feeling like, oh, man, i missed everything. don't feel that bad. you see how much first solar is up already this year? have you seen it? first solar made a huge move this year. the stock and also they upgraded

sun power as well, neutral from sell on sun power to 52 #-week low is three bucks, three bucks. do you see where it is now? it's just absolutely amazing so i wanted to bring it up because people feel, well, i missed the move, and even the biggest, smartest guys on wall street are 200 points off. here's the good news. they are saying they like this and liked it for a lot of reasons i talk about with respect to the stock market. the composition of where the buying is coming from is going to be less and less europe, more and more rest of the world. not the places with austerity and tight pursestrings, but places around the world where people are trying to grow. europe is only 25% of the business, and by 2015, the rest of the world will be 60%. they used to be 331%. that's one of the main drivers, main reason they like it..@ >> didn't i just see first sew -- solar on the list of the heavily shorted stock with biggest percentage outstanding of the

investment against the company? >> absolutely. the shorts have been crushed this year on a variety of stocks from green mountain to first solar to tesla, they have been crushed, absolutely decimated. they never give up. why? because they are the massives of the universe and make a phone call, and somehow there's another $4 billion to waste. they never give up. they never give up. >> doesn't worry you? >> do you want worry me. my first drivers have been first solar, sun power, green mountain. i love it. i love it. >> she short cover it, and first solar up 266% year over year. >> exactly. charles, i know you like the solar stocks, and to pick three sectors, love when you are on because you do more homework than anybody. if you pick three sectors you love or one, what is the sector of 2013? >> the sector i love a lot is

construction, international construction. anybody building out oil rigs, liquid natural gas terminals and these things around the world will do extraordinary well, you know, and, you know, i did one called chart industries with varney this year, and i got way too cute. i got out, the stock is up another 20%. i should have stayed in. >> this global economy is okay? >> i love it. it's more than just germany and france and those countries. people have to understand that. people, don't feel bad. the big boy's got it wrong, and you can make money in it. they get shaky though, volatile. >> all right. >> i like when you're cute. good job, charles, we love you. >> obamacare targeting heavier people, and smokers, how much health insurance premiums increase. >> you know, nicole, you have a hard time saying it, "fat people" okay? that's what we talk about. what if he held a meeting and no one came. holder running into resistance to meet with bureau chiefs of

the news organization some of which his department conducted surveillance on. that's in the fox news minute. first, how the world's corp sighs -- currencies are fairing against the u.s. dollar. ♪ this is america.

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>> at 22 minutes past the hour, this is your fox news minute. the secret service now confirming the white house mail facility intercepted a letter addressed to the white house similar to the two ricin laced letters sent to michael bloomberg. the letters reportedly con taped specific threats and warnings. they were postmarked may 20 from louisiana and referenced bloomberg's support for gun control. attorney general eric holder is running into resistance from news organization over the plan to keep meetings with the bureau chiefs off the record. the meetings discussee guidelines and surveillance of reporters. fox news is invited, but the executive vice president says fox news will not attend the doj meeting if it is off the record. independent governor of rhode island joins the democrats. the republican, former

republican senator, left the g.o.p. in 2007 after losing his u.s. senate seat. in 2010, legislated adds nation's only independent governor. those are your news headlines, back to dennis. >> thank you, julie. a fat increase in health insurance costs could be in store for obese workers and smokers under obamacare. peter barnes is inside the beltway with the ugly truth. >> hey, dennis, the department of health and human services @%nalized rules in obamacare yesterday allowing employers to reward workers who participate in wellness programs starting next year giving them discounts on health care coverage to be healthier, up to 30%, for example, if they meet certain wellness goals such as lower weight, lower blood pressure, or lower cholesterol with discounts up to 50% for smokers who quit, but critics say they are unfair to workers. for example, those who are

heavier or have diabetes for genetic reasons. >> on the one hand, they are all about everything being fair and everybody treated equally. it's in spite of the fact people are different, and on the other hand, they are trying to change behavior, and so you can't have everybody treated equally and then on the other hand go and say, well, some people are equae going to penalize them because we don't like ha they are doing. >> hhs says rules are designed to reduce the burden of chronic illness to improve people's health and limit health care costs. the rules say, however, a company's wellness program must offer reasonable alternative programs with discounts to avoid discrimination against certain people. dennis annie coal, back to you. >> thank you. just pay me. i'm happy to lose more weight, okay? pay me. >> i like the inspiration. so-called experts wrong again.

the ten-year treasury yielded highest level in over a year matching of that of the s&p 5 #. should you buy treasuries? that's ahead. >> ten years, 2% a year, and by now, you probably heard about people cutting the court on cable television. turns out, more users are cutting the cord on interpret access. relying on smart foafns. we got the ramifications ahead. look at today's s&p winners and a few losers. ♪

>> looks like gas prices low for now as oil inventories hit the

highest level since 1931. cutting the cord on the internet, most doing it to rely on smart phones, and implications are ahead. the reviews are decidedly mixed for netflix's "arrested development," and that is hurting the stock. stocks now, lauren is on the floor of the new york stock exchange with the day's movers. >> hi, dennis. i'm in a good mood showing you winners today. facebook up more than 5%, a pair of upgrades, capital market saying you know what? the street is overly negative about the younger crowd leaving facebook. the ad sentiment is there, ad revenue is there, and they upgrade the stock. talking about express, a ten-plus percent with a new high, ditto for the the auto makers, ford and general moe tores. financials lead the market today as yesterday in the down day, and ameriprize up 1%, the

highest level in history. those are winners we wanted to show, most of them at annual or all-time highs. >> kids think they hang with their mom and dad when they are on facebook, and it's not cool. >> that and grandpa and grandma too. it's the whole family. >> thank you. >> see you later. >> the yield is at the highest level in over a year matching that of the s&p # 00 dividend year for the first time this year. >> trading volume in futures at the cme hitting a high this week, and joining us with a take op where yields are headed, sharon stark, da davidson managing director and fixed income strategist. so, sharon, people are worrying there's a bond bubble, worrying you got to get out of it, and you see a buying opportunity going the opposite direction, explain. >> i am going the opposite direction because i don't see a big change in the market in the fundamentals driving the market, for example, the economy's

growing, but it's not growing that fast. the unemployment rate remains above 7%, and i think the federal reserve continues to buy bonds so not a lot of change and given what the chairman said and the written testimony, i don't see a reason to pull back bond purchases. >> you talked about the fact you don't see them stopping the buying and printing where gomedman says early next year, they'll do that, later than some speculate, and that they'll raise them way down in 2015 or 2016, but in the near term, people speculate they may cut it down, but you don't think so? >> no, i don't. i don't think so. late next year is a possibility, but not this year, not this summer. >> you mentioned 7%. i don't mean to interrupt you, but unemployment is just not where they wanted to be at. >> that's correct.

we're far away, 7.5%, jobless numbers, higher again, and wages are stagnating, and i just don't see the type of growth we need. >> and yet i'm tempted to fire any financial wealth manager who wants me to lock up my money for 10-30 years at the lowest interest rates in history. this is a trade; right? get in, wait for prices up, yields down, and sell out. you don't want to lock up in a treasury, do you? >> not in a treasury, but looking at other markets like corporate bonds or mew municipal bonds, there's compelling yields there. >> what yields? >> looking at, you know, 3-5% depending on how much credit risk you are willing to take, but i mean, certainly more attractive than what you find in treasuries, yes. i wouldn't say lock up trash rich edsons, but if you're, you know, an institutional investor looking for total return opportunity, i would think about

being lost. >> one risk here is that if i take money out of stocks, put it over into bonds and more and more money goes into bonds, that sends the price of the bonds up sending the yields down on the bonds, and now i'm earning less return than just left in the stock market. suspect the stock market a more attractive place to park money now? >> it depends what sector you're in, and you have to be in it for the long run. even though bond prices could rise and yields father and mother, you're -- fall, you're going to earn your coupon. that income stays no matter what. >> stocks don't do that. >> stocks don't do that unless there's a dividends. that's why it's called fixed income and there's always, you know, good opportunities. >> sharon stark, da davidson managing director and fixed income management strategist, you talk about the bonds, and you're right, about asset management and risk toller raps. you're right about that. thank you for joining us. >> thank you for having me on. >> oil on the move after stocks

hit the highest levels since 1931. phil flynn is live with the action. >> stocks and supplies. we'll be back with more. ♪

♪ i'm tracy burns with the fox business news. highest level in the year according to freddie mack.

the average rate is 3.81%. rate are low by historical standards though. bosch no longer eyeing wall street withdrawing plans for initial public offerings because of the emergencier with valiant pharmaceuticals. canada's largest drug maker is buying bosch for 8.75. investors bullish for emc after the company approved the start of a quarterly dividend of 10 cents a share. the tech company's boosting the share buy back program by $6 billion. that's the latest from the fox business network giving you the power to prosper. ♪

>> all about advertising, sites

like twitter and instagram. tailors mobile ads to users' interest and habits. joining us from the all things digital conference, thee conference in california, adam with the founders. tell us, adam. >> no stranger to web advertising, but we're talking about mobile. the message here is hhw to you monetize mobile devices. 2 # 1% mobile penetration worldwide, and they will be explosive. thank you for joining us, bill. here's the smart phone. what is it that media pioneered that changes the way i get an ad and make people a lot of money? >> well, we take intrusive ads and turn them into invited ads figuring out where you are, what you care about, and we show you things relevant to you so you are happier with the advertising.

an example, if i were back in new york at a restaurant across the movie theater, there's the iphone here, you don't know it's me, but it's my iphone, and your software gathers the mapping locations? >> we can tell if you're a frequent movie goer and do a campaign for a studio who would like to reach frequent movie goers who are tom cruise fans when the movie is playing around the corner, target you precisely, and really give a great experience. >> you did this, and what you found is when you set the targeted ad, the click-through rate is higher. >> the average rate of an ad on a mobile device is preponderate 5%. when we round that campaign, we had a 5% click through, ten times better performance. that means that the advertisers' happier because they get the target of the customer they want. the publisher's happier because of the money, and most important, the user, you, are happy because you see something that you want. if you see the trailer, you're

like, thank you for telling me about that. it's not just the click-through rate but conversion rate. putting people in the seats. >> give me aned why of -- an idea of the money or why you're targeting on mobile discounts vices? hundreds of millions? >> millions, growing like crazy, it's $7 billion this year, $20 billion in a few years, 129% compound growth rate. when in a business like that with the wind of 129% growth rate at the back, it's incredible. there's a billion smart phones in the world right now. just this past year, there was a breakthrough, more mobile devices sold than pcs. that's never happenedded before. in such a short time. think how recently they came out. the world is moving mobile quickly, but there is has to be a better way to monetize. >> we have to wrap it up here, but we were discussing privacy concerns, again, with the ads and the way it works. you don't know the needs, but that this phone thatfuls at a

dealer shape one day and i wish a portfolio dealership, and the privacy issues people are worried about is not an issue with this, so back to you, but it is fascinating and billions of dollars to be made on this. >> so cool. that's all i can say, adam. >> absolutely. >> thank you so much for telling us all about it. >> you got it. >> by now, people are cutting the cord on satellite and cable tv service watching programs on the internet like netflix and hulu and the like, and now people cut interpret access at home. about 1% of the americans according to lightman research. with the implications, it's s&p capital senior telecom analyst, jim moriman.

>> absolutely. iithink talking about people who do this, they are light users of the internet, people who check social media, and those are the heavy users, talking about people that might use this and use a lot of public wifi, that is one concern. if you use too much public wifi, there's concerns about using that in hotels and airports and things like that and how easy it is to access e-mail that has financial sensitive information in there. that's a concern of this. >> yeah, seems to me that the cable companies have the most to lose if more people follow suit and get rid their localing locag the -- local account so the cable guy could be looking at a downside here, jim. >> yeah, one of the things to look at is this is the way the world is going, definitely moving towards a wireless world, and as lt or 4g as people call

it, beings throughout the world and throughout the u.s., that brings data fees more comparable than in cable and fiber and the higher end internet access so as wireless becomes a more closer alternative, you'll see people switch. just giving you more mobility when you watch video whenever you want to, and this is kind of supported by the fact that it you look at dish, they are making bids that, you know, a lot of different wireless companies to get into the wireless business feeling that mobile video, video will be both inside and outsiie the home. i think people see this as a huge opportunity going forward. >> these guys are never satisfied with their business, verizon wireless wants video, and cable dish wants to offer cell phone service. it's like rock stars want to be actorsment thank you for being with us. good day, sir. >> thanks a lot. >> a new study from the american legislative exchange council revealing red states out pace

blue states with economics. molly is following the story. >> this study anks the 50 states in economic outlook meaning their potential to grow economically this year and in the future. it measures the states on 15 variables everything from tax rates to laws and labor policy. to get a predicter how they fail economically. top of the list for the sixth year in a row, utah, in part because it's, quote, a predict l tax climate and because they have tax government pension payouts. organizers of the study, down by alex, the conservative think tank, point out when it comes to presidential election voting, almost all in the top ten are red states. >> elections have consequences, and fiscally conservative states are doing better when it comes to economic growth. now, obviously, median income levels and new york and some of the big cities still governed by liberal politicians still have

high income levels, but those levels are not growing like other places across the country. >> the bottom ten states in economic outlook, williams says, are blue states with higher taxes and restrictions on business development. with new york and vermont rounding out the bottom two, but not everyone thinks states on the bottom are getting are wrong. >> it's hard to say that states should try to pattern themselves after utah. states have different strengths and weaknesses. for example, i know the authors are not fans of the income tax, but inned good years, income tax performs well for states like new york and california that rely on a heavily. should california and new york look like utah? probably not. >> another part of the study looked back at the state's economic performance from 2001-2011. the state that grew the most in that time was texas, and the state that struggled the most was michigan. nicole? >> very interesting stuff,

molly, thank you so much for that. stocks now every 15 minutes, the financial sector is a top performing group of the week. john, live from the floor of the exchange. do you like the financials, what do you think, john? >> i do. there's a rotation out of utilities over the financials over the last few weeks coming down to a couple factors. investors are comfortable investing in the financial sector. if seems that over time rules and regulations are tighter in the section which gives investors much more confidence to get back into the sector here. also, investors are learning more about the financial sector. they feel they got a better grasp on the products that invest financial institutions working with and selling, and it gives them another incentive to get back in. once again, as the ball keeps rolling, the financial sector, the worst performing sector in 2010 has gone to the highest. investors want back into that. there's a snowball effect there. >> they want to take a little

chance there; right, john? >> absolutely. >> right. economically sensitive sectors, and now they are biewnsing back. thank you. >> thank you, nicole. >> and the u.s. oil supply now at its highest level since 1931 #, and there may be fire works at tomorrow's opec meeting. phil, when supply is up, price is to go down so oil is higher today. why is that? >> i know. a couple reasons, dennis. usually, you know, a big number like that, prices do go down, but we did see something in the report that caught some traders by surprise. it was gasoline demand. gasoline demand surged last week to the highest levels since last august. that was a surprise because last night, american petroleum institute reported that we saw the exact opposite saying that demand was almost nonexist end over the memorial day holiday catching traders by surprise, caught them short, reversed positions and went long. there's other reasons, of

course. first of all, there's the opec meeting tomorrow. you know, the word going into the report that opec was going to be at a standstill right now. saudi arabia was going to continue to increase production. the hawks in the cartel like vens way la and iran were going to complain and not get anything done. one report seemed to suggest going into the meeting opec could be cutting back looking at some of the tankers that are filling up, and there's been a slight decrease in production. they may be putting on their best face ahead of the meeting to try to calm the tensions in the room, dennis. >> thanks very much, phil, well handled on the explanation. >> thank you, sir. >> he's good. >> he is good. he's great. tax breaks helping the rich get richee, and democrats say it needs to stop. we got the latest. >> and the ups and downs continuing for netflix, the stock up 130% year to date, but look at why its latest content could stunt the company's

comeback. let's look at the day's winners over on the nasdaq. ♪

>> today's media minute, netflix learning that hollywood stuff is not easy. sniping at the arrival of "arrested development," and defending the show yesterday to the wraps.com while refusing to release viewing numbers insisting ratings are not the pointment sure, they aren't. ratings are always the point. this awkward moment at the wall street journal be all things digital conference. media mobile in one on-stage chat yesterday.

yesterday, the new smart phone tv sued by the broadcast networks and two hours later comes this broadside from disney's chief telling the crowd that diller's new venture is nothing more than other opportunity piracy. lastly, pirates piracy. the four films in pirates brought in more than some 3.7 billion dollars in ticket sales in the past decade, and only now is a florida man filing suit against disney in florida saying a cut of it should be his. now he tells us. >> my kids love that, love that. a new report finds the richest 20% of americans getting half of the overall savings from tax breaks. the congressional budget office finds the tax breaks, things like deductions for mortgage interests save americans more than $900 billion this year, but the rich benefit the most from it. democrats say that this is proof president obama's plan, limiting

tax breaks for the rich is the most sense l way to reduce the deficit, but dennis, irani don't you think -- don't you think it's time to give money back to the people to create the jobs? i know -- >> that would be it. 20%, the top 20 technocrats -- 20% earnings is not a scandal considering the bottom 50% don't pay any income tax at all and 11% of earner $1% earners pay 20%. what are they wiping about? >> cutting in washington with the sequester, but the truth is pay a lot in taxes and need jobs. that's the number one thing for business. for sure. opec ministers gathering in view vienna to decide oil output, but will america's fracking boom undo the oil cartels? >> i hope so. a move to make sea world jealous, the live show profit

four times what it was in 2011. how did they do that? melissa and lori ask the seaworld ceo jim afterrenson next. >> so cute. affordable care costs stack up. ahead, what's it mean for your insurance premiums? ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, can quickly understand my charts, and spend more time trading. their quick trade balets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

♪ melissa: good afternoon. i am melissa francis. lori: i am lori rothman. the economy grew less than expected last quarter. weekly jobless claims jumped. melissa: opec lacking things to fracking. what you need to know. lori: making a splash on wall

street. ceo on his plans to lure more visitors this summer. melissa: elon musk, in his out of the world prediction. time for stocks now, as we do every 15 minutes. lauren simonetti is standing by. markets are moving higher. >> that is right. we are more than halfway through the session. we are holding on to gains. the second raid on first-quarter gdp, weaker than expected. that is the bad economic data of the day. a huge winner today it would be. it is still the most popular