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tv   Markets Now  FOX Business  May 30, 2013 1:00pm-3:01pm EDT

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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
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social media service out there. lori: you heard lauren give us an outlook on the disappointing news. phil flynn is in the pits of the cme with more for us. >> we saw one of the biggest spreads in history. today it looks like that investors are screaming uncle. we have the biggest jump in etf buying. it looks like the investors worried about rising interest rates, uncertainty about the econ big names. the john paulson, the george soros. they were buying basically gold
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miners. they are doing really good. lori: a double bottom. is that what we have seen in gold lately? >> everybody was bearish. you could not find one bullish story out there. certainly enough, that was the date they put in the low. lori: -- >> a lot of traders are looking back at the gulf of mexico. i hate to bring this up. another storm system that could turn into something. traders are watching it. lori: phil flynn of price futures group. thank you. melissa: although the oil cartel is expected to keep output steady, things within opec are anything but the status quo.
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matt smith is with us now. thank you so much for joining us. there are two big issues that they are grappling with. who will lead them and the other is fracking. you think they will talk about that? what can they really do about all the fracking that is going on here? >> that will definitely be the main issue, melissa. we are now at the highest level of domestic level in the u.s. since 1992. we are seeing production goes nuts. what has happened is you have these african nations, nigeria, i'll go up, they said their crew over to the.s. is bitf a glol
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balae messa:herere oy aoupl ingshey n dorope for. they can also hope for expansion and demand coming from places like asia. are there other options? >> well, we came to vienna this week. the best environment for the market demand is great. as long as demand is increasing, and an additional $1 billion each year, the supply thing is not necessarily an issue. opec have close to the quota. as long as that situation remains, they do not really have too many issues. melissa: they are also sort of struggling duke and lead the cartel into the issue.
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these guys do not get along that well. you have to put someone in place that can balance all of the competing interests. do you see a standout leader? >> oh, my gosh. i do not, to be honest. i think what they will do is defer until september. there will be enough issues to debate. melissa: it is so interesting. it is not like he is such a dynamic guy. he is kind of boring. maybe that is what they need. i have interviewed him a number of times. he is a nice guy, just very middle of the road.
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they really want to shake things up. that is where the conundrum comes in. >> exactly. because everything seemed so well balanced at the moment, i think they will maintain the status quo. melissa: interesting. we will keep an eye on it. matt smith, take you for joining us. >> thank you, melissa. lori: smokers and overweight people set to feel the pain. they will now be allowed to charge workers higher premiums if they do not meet certain health criteria. peter barnes joins us from washington, d.c. peter: the department of health and human services have finalized rules on obamacare.
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you can reward workers and penalize others. you can get an up to 30% discount if they make wellness goals, such as lower weight, lower blood pressure or lower cholesterol levels. they will also give discounts for up to 50% for smokers who quit. the regulations could be unfair to some workers. for example, those who have diabetes or those that are heavier for genetic reasons. >> these are the exceptions. they have made exceptions for it , but they do it in a very convoluted way. the employee would have to offer wellness programs. if you do not participate, you forgo the award. peter: the walls are designed to reduce the burden of chronic
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illness. companies with these wellness programs must offer a reasonable alternative to those certain employees with discounts. back to you. lori: the libertarian nightmare. peter barnes, thank you. melissa: pending home sales rising. the highest level since 2010. april seasonally adjusted and rose 3%. mortgage rates continue to rise. the 30 year fixed mortgage rate hitting the highest level in a year at 3.81%. that is up from 3.59%. 3.31% is the lowest on record. made in america.
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motorola has announced they will be the first company to assemble a smart phone in the u.s. the new phone will be released later this summer. it will be made in fort worth, texas. we know it will have a longer battery life and and l eb scream. lori: love technology. melissa: linked in on its way out. lori: whether u.s. businesses should be required to work for an attack. melissa: the dow is up 60. we will be right back. ♪
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♪ lori: hearing about it more and more every day.
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cyber attacks on the rise. public traded companies should be disclosing both actual and possible attacks. how would they know ahead of time? rich edson is live in washington, d.c. with more. rich: there is a real discussion here in washington. there are some concerns on capitol hill that the sec staff guidance does not go far enough when it comes to divulging that information to their investors. in a letter, existing disclosure requirements under the federal securities laws -- thaa is from mary jo white to the senator. that had been prompted from a letter.
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the staff guidance has had a positive impact on the information available to investors on these matters. the disclosures are still generally insufficient for investors to discern the true cost. there are other analysts out there calling right now for different changes. saying, basically, it has become a fundamental issue for most companies. >> it is important to know whether they have the right defenses an order or not. rich: you have lawmakers on capitol hill talking about something hundred billion dollars in annual property.
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you talk about companies saying they grace reporting requirements can get costly, they can get expensive. that can also cause them cyber security goals that they have in mind. a real tight balancing act here in washington. they are still trying to figure out what is appropriate. lori: thank you so much. rich: thanks. melissa: let's check the markets. lauren simonetti. >> goldman sachs is pretty bullish on this sector right now. all of these names are rallying. some better than 7%. goldman think there is a stabilizing earnings background right now on solar companies. the recovery is just six months in. let's take a look out for solar, in particular. one of the best stocks today.
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over the past year, it is up around 300%. goldman also giving first solar a price target of $64 today. upgrading the stock from buy to neutral. melissa: thank you so much. lori: let's make money with charles payne. he is taking us to the border with a spicy stock. charles: chewable -- chipolte. the person eating the doritos taco is just not the person buying -- lori: they have fresh margaritas; right? charles: you know more about it
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than me. [ laughter ] melissa: i did not know they served margaritas at chipolte. charles: i did not either. i am going to head over after the show. if taco bell was not part of yum , it would probably be the hottest stock in the country right now. they have their own issues trying to please their chinese customers. i think the topline growth is still strong enough. i think the margins are expanding. $419. ultimately, sometime this year, go back to the old high. $440 a share. there is a lot of room to the upside. melissa: you do not think that they are facing a problem with saturation?
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charles: what happened is you always go to the hip spots. they focus on those spots. pretty soon they will get to the really on hip spots him and i will be complaining about saturation. melissa: red states, blue states, rich state, poor states, the new report all what your states color could mean. lori: how about swimming with share milk. the ceo joins us with the summer plans. ♪
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>> 22 minutes past the hour. hi, everybody. i am jamie colby. this is your fox news minute. authorities are investigating the shooting of an immigrant.
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u.s. agents killed him. more on that as we get it. the white house letter has been turned over to the fbi for testing. assad says russia has delivered the very first shipment of anti-aircraft missiles that it had promised its government. the white house denouncing russia's weapon shipment as a step in the wrong direction. those are your headlines on the fox business network at this hour. i am jamie colby. back to melissa and lori. melissa: which states are gaining and which ones are falling behind? let's ask molly annenberg in d.c. >> it ranks the 50 states and
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economic outlook. it measures the states on 15 variables. everything from tax rates, and him him wage laws to labor policy. alec points out that almost all of the ten states are red states. >> utah is low tax rates, but more than that, a predictable tax client where utah legislators are very conscientious about the fact that they do not spend beyond their means. they make changes very gradually and they generally make them in a lower tax direction. >> the bottom ten states tend to be blue states with high taxes and more restrictions. new york and vermont rounding out the bottom two.
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>> it is hard to say that states should not try to pattern themselves after utah. states have strengths and weaknesses. in good years, the income tax performed very well. should california and new york try to look more like utah? probably not. >> the study also looked at the states economic performance. the state that struggled the most was michigan. melissa: molly, wait, what was that part of the study based on? >> it was based on the states gross product growth and population shifts and job growth. this shows where states have been. the growth rankings show the
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states and where they are likely to go. melissa: thank you so much. melissa: they have tremendous natural resources. interesting stuff. lori: absolutely. a move that is enough to make shampoo jealous. four times what it made in 2011. great for your teeth, how is it for your portfolio? melissa: who does not love sea world. eric holder running into some roadblocks off those off the record meetings. lori: checkout queue is up and who is down on the dow.
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most shares are in the green. travelers is out there. back after this. ♪ my mher made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen.
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here is what warren buffett had to say about this acquisition. it is a great fit for berkshire and long term investment in nevada's economy. this is state hard hit by the recent recession. he a little bit bullish over there. back to you. melissa: lauren, thank you very much. attorney general eric holder's invitation for media outlets is being met with resistance. he is trying to set up meetings regarding the justice department surveillance of reporters. fox news declined the invitation because the meeting is off the record meaning it can not be recorded or reported. other that would not attend, is associated press, reuters, cnn and "the new york times." lori? lori: let's talk about something fun, shall we? melissa: yes. lori: seaworld as you know a public company. shares skyrocketing after the company company's ipo up over 30%. they're gearing up for summer, opening a brand new
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theme park in san diego this weekend. with more on the plans we're joined by ceo, jim atchison. thanks for being here. >> thanks for having me. lori: every kid in the last 50 years loves shamu. things are going well. but now you have shareholders to please. so tell me more about the strategy? >> we're delighted to be entering this new phase of ownership. it is a great time for our company and a great time for our employees as you might imagine and look, this is a terrific business and one i think shareholders responded to. we had a very successful ipo and a good run of the stock in the after-market. we're delighted where we are. we have unique offering and proposition and i think people see that. lori: so the broader economic picture. obviously the second take on the first quarter. 2.4% growth. unemployment is stubbornly high. people more than that, are what we call underemployed, not having the right kind of job to pay bills they want. you know the story. gas prices, and what not.
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there are tough times out there. how is seaworld embracing that? >> what we have found as we offer unique compelling products differ rernt aided and differ value and we do across the 11 parks. we have our 11th park opening in san diego, aquatic can, our new water park we do okay. if you look at the economic cycle we acquitted ourselves well and outperformed the overall market if you look at industry and done rather well given you expect a company like ours who makes our business on discretionary leisure dollars to struggle. it has really been quite the opposite. you've seen that through the ipo launch. in fact our theme park industry overall has performed rather well over this cycle. we're a little more durable than people think. it can be a safe heart o bore even to some extent. lori: we showed a map. it is prime minister ses i have. sea word has 11 theme parks in five different states.
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your ticket prices are higher than main rivals six flags and cedar park. you're in the expansion mode. you must be optimistic about the economy in the future. >> we would like unemployment to come down a little bit. that would be better for everybody. we all agree there. what we're seeing people want to get out and they want to enjoy time together as a family. you look at our portfolio parks we're in destination markets like florida and california and also in regional markets likes texas, virginia, pennsylvania. whether you will take a long trip or closee to home trip, we're near major metropolitan markets where we offer good value, good experience and a way to get away. lori: let me ask you about the financials. obviously it was a homerun for the high-profile ipo when blackstone group took seaworld public. you've been there through the transition. how did blackstone leave you as ceo and overall profile for the park? are there new challenges right now in ownership? >> well, you know, we're delighted to be, have navigated through this ipo
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process but i've got to say we couldn't have done it without blackstein. the wisdom they brought to the process and guidance they provided for us is really nothing small. nothing to look past. they were a great, great partner in this process. now that we migrate through into public ownership, we're delighted to be in that realm, seaworld is a great retail name, a great brand. we'll have plenty of retail interest as well. when you look at our business, we have tremendous growth potential moving forward. whether as we mentioned, our 11th park opening this weekend or other development opportunities and, our performance has been terrific and if you're looking for something that's durable, durable investment, with some growth we're a good fit, very good fit. lori: so much focus on jobs, jim. do you know how many people you employ? >> we have about 22,000 people on payroll in our peak summer employment, yeah. lori: awesome. jim atchison, ceo of
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seaworld. one of my kids favorite spots over the summertime. thanks for joining us. it was a fun interview for me. >> great. nice to be with you. melissa: charlie gasparino is here next why now congress wants to investigate. lori: and is it time for us earth links to head to space? why not. elon musk is saying so. he is making out of this world comments at the all things digital conference. melissa: as we head out to break you can see the yield flipping just slightly on the 10-year. one basis point. here the 30-year is unchanged. we'll be right back.
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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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>> i'm nicole petallidesth your. struggling homeowners will get more time to take advantage of a federal consumer mortgage modification initiative. the white house is announcing it will extend making home affordable program until 2015. singapore airlines struck multibillion dollars deals with jet making rivals boeing and airbus. the combined aircraft orders are the largest in the carrier's history. singapore airlines is also the first carrier to officially commit to boeing's 787-10 x. >> foreclosure sales fell sharply in the first quarter to the lowest level since 2008. according to realtytrac, sales dropped 23% from the same time last year. rising home prices are,
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tighter inventory and low mortgage rates have helped the housing market get back to its feet over the past year. that is the latest from the fox business network, giving you the power to prosper.
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lori: in the aftermath of a series of high-profile battles with major companies proxy solicitation firms now find themselves in the spotlight. here's charlie gasparino with more. >> spotlight, investigations, kind of interesting. these are the firms that generally turn up heat on companies like jpmorgan, advising investors whether they should split the chairman and ceo role. jamie dimon won that battle, recently, won overwhelmingly. looks like proxy solicitation firms are on the hot seat. they're target after investigation, hearings, subcommittee hearingings by the house financial services committee that begin on wednesday. this will be interesting. what the subcommittee will look at whether political
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forces are driving these guys. take it for what it's worth, this thing is really heating up. melissa: whether political forces are driving them, what will they investigate? >> unions pushing them. political, or environmental agenda. that is essentially what i hear. melissa: so how, i mean how would that investigation go? isn't that the majority of people, you now, engage in their services? >> yeah. i mean basically what you're going to see the proxy solicitation firms being called in and put on the hot seat. that is essentially what i hear now. lori: that is interesting, right? you don't hear about their role coming up as much being such a big --. >> always hear about them, you know, behind the scenes. now they're going to be front and center. melissa: yeah. and i wonder if they're losing a lot -- did you need water? >> i lost my voice. melissa: let me let you have this here. you always wonder about, if they're going to maintain the same power going forward. you looked at the attacks
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they launched on jamie dimon. you thought something would come out whether jpmorgan -- >> by the way, now that i got my voice back a little bit, they got crushed. melissa: yes. that is where i was going with it. >> i think what people are worried about, if unions are behind them. that unions are paying them and forcing them to go after jpmorgan, forcing them to go after goldman sachs and forcing change that is more political than it is really shareholder-related. that is what i think you will see out of the hearings. proxy solicitation firms will be invited. they haven't been invited yet. we should point out i think harvey pitt will be there. they will have a whole roster of corporate people there i think this will be the first time we really see this thing get pushed back, the curtain be pushed back so we actually see exactly how these guys operate. i think, listen, is there a role for recommending how to vote shareholders? yeah. but should the shareholder kind of know how to vote? if you paid larry fink to manage your money don't you want his expertise where to
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vote on this? lori: that's a great point. what do you think is the best example where one of the proxy firms stepped in and made an important difference to the benefit of shareholders? >> well, listen, they have been pushing the breakup of the chairman and ceo for a long time. i think they have some impact on that. i think the jpmorgan thing was pretty key. >>. melissa: yeah. >> if you look what dimon did. he went out and attacked barack obama's policies and ganged up on by the proxy solicitation firms and unions and pension advocates. this is interesting. i never knew this. glass lewis is proxy solicitation firm, right. melissa: right. >> they're owned i think by the toronto pension fund. this is kind of an interesting thing, a conflict of interest. iss, if you're getting a lot of money from unions, right, what are you going to do? you will push their political agenda. part of their political agenda is shuttings up people like dimon and splitting the chair and ceo role to diminish power of the chief executive. melissa: they hide behind
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iss. institutional shareholders, nonpolitical, just looking out what is best for the average share holder. >> right. melissa: that's not what it is at all. >> listen, we're making somewhat political statements here. they would say they do a fair job. they basically represent interests of all shareholders. my only point is this. they are being paid heavily now by unions. unions and public pension fund which obviously have a political agenda. lori: they are regulated? >> they're regulated like any other business. i don't think they're regulated like a wall street firm. here's the thing, i think now we'll finally see exactly how they operate. melissa: interesting. thank you, charlie. don't die thhre. go get your voice back, whatever is happening. as we do every 15 minutes let's check the markets. john corpina on the floor of the new york stock exchange. jonathan, major averages are in the green despite weaaer-than-expected economic data. what do you make of that? >> we'll hearing here, i'll follow-through from
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yesterday's selloff. we don't see any conviction to any sell pressure on the market. if we don't see the sell pressure it shows me investors are a little confused whether this market will continue to rally. as we got through today, it seems like the market slowly started to pick up steam and we're trading at highs today. it will be interesting to see how we close the day. as we see volume pick up toward the end of the day and momentum continues. we'll see if the gains hold on. tomorrow, end of the month will be significant volume there. a rebalance will occur at end of yesterday or tomorrow. different factors will be associated here. overall if you take a step back, investors will see and think as the market continues to move higher. melissa: it will be interesting to see how we finish out the day what is your bet will happen there? will we see strength? >> tomorrow we normally see window-dressing. the window-dressing already occurred and occurring now as we speak. i think we'll continue to see this move higher. >> as we he had had into
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newmont with will be the things we look at to decide what to trade? >> we continue to look at the economic calendar that comes out. we hung our hats on really good us into and not focused on bad news and numbers that come out there. if you saw what happened today that might be insight into the future. we'll need a couple of dates on the calendar of negative news for investors to really think the selloff is about to occur. melissa: jonathan, thank you very much for your perspective. we appreciate it. have a great day. >> you too. lori: move on over, linkedin, there may be a new professional social network in town. we'll tell you who is reportedly launching a site of their own next. melissa: say what? tesla is moving from cars to mars. lori: that's great. melissa: more on his plan to colon eyes the red planet. look at losers as we head out to break on nasdaq. facebook moving higher almost 6%. good day for them. we'll be right back.
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lori: tesla motors founder elon musk like as good challenge. he is trying to spend time with cameron diaz. melissa: that is beside the point. lori: exactly. speaking at all things d conference last night, musk said he got into the electric car business because no one else would. he is setting his sights even further. take a listen to what he had to say about the future for us. >> future of humanity will fundamentally bifurcate in two directions for life as we know it. either will become multiplanetary or combined to one planet until eventual extinction events. lori: i made major news for
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the development of electric car supercharger stations. >> in fact you can drive from l.a. to new york just using the super charger network. [applause] lori: that's funny. what you said during the sound bite. melissa: drive all the way from l.a. to mars. who cares about the supercharging stations when he is talking about how we'll all eventually have to move to mars or face extinction. are those the two choices?. lori: always risk of an as toer -- asteroid hitting earth. not to be debbie downer. we should not downplay the risks. melissa: you would say we have need to move to mars by then? lori: what can i say. melissa: this stuff is too easy. oh my goodness. all right, so our coverage of all things d continues. our adam shapiro is there live with one company that is spine nearing a new way to surf the web and it is all based on social media. adam. >> that's right. you heard elon musk predicting mankind's
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extinction but two things that will stop that. cheese whiz because it lasts forever and is nutritious and rock melt. the must-have i want to say application because you can get it on your tablet, mobile device but also get it on the mac or your computer the way to describe what it does? who better to do that than the cocreator of rock melt. he is joining us. eric is joining us to discuss this. essentially what you're doing, as we talked earlier, if i have, if all the information on the web is in 18-lane highway what rock melt does all i have to worry about one lane of traffic? >> that's right. >> what is it doing when i have it on my tablet? >> we're trying to help you get the stuff, the best stuff on the web for you. so we understand what do your friends ant you to see. what is the type of content that you like. you like cars. we want to give you more stuff about cars. we want to give you the best stuff about cars and send that to you. >> when i have the rockmelt
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on my tablet what would happen? it learns from facebook, from twitter that i'm always sending pictures or talking about cars. so what rockmelt would do is weed out internet clutter from napa, auto parts and autozone but send me all the stuff from antique car collector or jaguar? >> that's correct. not only send stuff you know about from antique collector and jaguar, the power of rockmelt give you stuff that you didn't even know existed on the web. the thing that makes the web so amazing there is so much stuff out there and content and hundreds of millions of web sites and tons of blogs. there are all sorts of diamonds in the rough and we want to do is surf those and give them to you. >> like having your own room service every day, when i turn on the device, everything that i'm interested in is delivered in one stream and i no longer have to go surfing for what i might be looking for or unaware of what is out there to search for? >> exactly. that is even better than
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room service. as if room service anticipated what you wanted for breakfast tomorrow. >> sounds good. >> that's what we're trying to do. >> how many people using it right now? >> a little over five million are using us across the various products that we have and we just now launched a web version. we're very excited. >> launched a web version. you can download this at rockmelt.com. you're about to hit android. how long for the android users? >> we're month out from the android version. really cool stuff on android. >> as i wrap up to throw back to new york one of your big backers is andreessen horowitz. that is big money behind you. that is an indication this will be around as long as cheese whiz. that will need to avoid elon musk's prediction of extinction, correct? >> it shows you that it is a big idea. >> thank you very much, eric, for joining us. rockmelt is the application. get it at rockmelt.com back to you in the studio and get cheese whiz ready. melissa: adam shapiro thanks very much. keep it here on fox business.
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coming up in the 3:00 p.m. hour, we have the ceo of sony electronics. he joins adam to show the waterproof tablet and smartphone. all i say there better be a water bottle involved in this interview. you don't want to miss this one. lori: what a great assignment. you might already have a linkedin account but there is set to be another professional social network launched soon. news corp, our parent company is said to be producing a platform from "the wall street journal" but you can never have too many social media accounts, correct. melissa: obviously. lori: to bring like-minded people to talk about ideas and good for networking and seeing what everyone else is up to. you better accept my friend request. melissa: the fight over the, have you heard about this. lori: that wasn't a yes, lori. melissa: they're battling against assistant managers who the tips on the counters belong to. now the case is headed to court because the courts are not clogged enough. will it affect the future of the tip jar?
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and how much customers actually give? is there enough money to be suing? who are paying the lawyers, that's what i want to know. we have shannon liss riordan, the attorney representing the baristas at 5:00 p.m. eastern on fox business. do you put money in the tip jar. lori: so many people patron i canly i wonder if they pay trips as well. talk about a dwindling amount of tips. melissa: they're fighting over it and i'm wondering who is paying the lawyer. that is the great point. lori: stocks are up here up 85 points, erasing earlier losses.ing solid gains. are they back to their record breaking gains? quincy crosby breaks it down next with tracy byrnes and ashley webster next on fox business. don't miss it.
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ashley: welcome back, everybody, i'm ashley webster. tracy: i'm tracy byrnes. with two hours to go stocks are back to their winning
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ways and near session highs. investors are betting weak economic numbers will keep the fed printing presses rolling for now at least. ashley: oil prices jumping after six losses in seven days. opec is set to tackle this country, the good ol' usa's rising shale output and its growing influence in the global oil market. we'll take a look how that could impact prices coming up. tracy: our special report, small business, big ideas. meet the cofounder of a company serving more than one million healthy meals to american schoolchildren every week. revolution foods is also creating jobs. it is a remarkable story. ashley: that is a good. tracy: sure is. stocks, oil, gold all in the green today. we have team coverage. lauren simonetti at the nyse and jeff flocks in the pits of the cme. lauren, i think we'll head down to you first. >> hey, tracy. the dow is up five points away from the high of the session. we do have a rally. the nasdaq is up almost 1%. what's fueling this rally today is the financial
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stocks. take a look at this board. all of these stocks are at least at a 52-week high. bank of america, jpmorgan powering the dow industrials. morgan stanley is up 3.25%. but if you look, if you take a look at the financial sector, it is up this week by 2 1/2%. this month by 8%. this year by 23% and 24 of the 82 financial stocks in the s&p financial sector are not only at annual highs but three are at all-time highs. berk beck, aon and ameriprise financial. we definitely have a rally today, regaining some of yesterday's losses. tracy: thanks, lauren. ashley: what the market takes away ii gives back. jobless and gdp numbers are being watched at the cme. jeff flock? >> look at the scenes in the bonds. huge volumes over here by the way.
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yesterday set an all-time globex record across the entire exchange of 23.5 million contracts. it was led by the treasury futures and options. that's what you're looking at there right now. 13.2 million contracts there alone. but let's take a look at the gainers today. as you point out, oil is up, only about .2%. i tell you i had brent as one of my gainers too but that just went negative. gold also up obviously when it looks like the economy is not doing quite as well. the fed stays in there while gold continues to rise. the loser side, how about nat-gas? that's down about 3% today. we expected that. corn and beans also down. a lot better weather in the midwest. the rain has shut off for the moment. i want to dive a little closer into oil though, because in addition to today, the other information we had, also information from the energy department on oil stocks. up to 397.6 million barrels.
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that sup three million from last week and the highest in record-keeping history at the department of energy. that is 1978 is when they started keeping records. lastly, that opec meeting coming up, a lot of traders are looking at that. the international energy agency saying that u.s. out put by 2018 will be nine million barrels a day. that is from current level of three or four million barrels a day. that would bring us to near oil self-sufficiency here in the u.s. i don't know what that means for prices but it means something good about national security. ashley: i think it does, jeff, thank you very much. we'll have an expert on oil coming up later in the show to talk about it. tracy: stocks bounced back with concerns the fed will scale back its easy money policy. and that will, maybe it is starting to fade, who knows. our next guest says the central bank will tone down the taper talk if higher mortgage rates threaten to
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derail the housing recovery. joining us, quincy crosby, analyst at prudential financial. i heard someone everyone is having taper tantrum. it is crazy at one point, $85 billion a month seems crazy, right? but god forbid someone says 50 and the whole world goes into panic mode that is still a lot of money. >> it is still a lot of money and the fed i think will be very, very careful how they approach this they don't want to see the dislocation in the market. they don't want to see a fierce reprising of risk. so they will be very careful but as we see the market will move well befored fed. when we come up to the employment numbers the market is going to have a say what it thinks the fed is going to be doing. it will be extremely data dependent, employment data is crucial and under the hood in the employment data will be even more important. tracy: speaking of dislocation, back when i went to school, equities
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went up, bond went down. it is not haing that way anymore. everything is kind of moving in tandem. is this the new norm? >> it has been part of the new norm actually for, i think since they began quantitative easing. absolutely has. but remember, too, at fixed income it is a broad spectrum of allocation, of assets. each asset within fixed income has become an asset class unto itself. it gives you a lot of have right within that portfolio. some act like stocks. some are the antithesis of interest rates rising. some give us a nice backdrop if interest rates rise such as floating rates. tracy: that is fair point. like a stock-pickers market it is a bond pickers market as well. let's talk stocks. i know you like the financial sector. it has been on a tear. year-to-date the sector is up almost 23%. is it overextended at this point? >> it could be.
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you may see a pullback but i will tell you, the 10-year yield rising, it is helpful for financials. it is helpful for the big banks. it is helpful for the insurance companies. it gives you that steepened yield curve that really does help them and i think they have been a beneficiary of it and also they have been helped by the housing market and also better employment data, particularly when it comes to the unemployment claims. fewer americans filing. that helps the banks as well. so it has been, it has been positive, a positive backdrop for the banks and slowly but surely they're healing. and i think americans are seeing that. -- will be coming next. tracy: does that mean you would still get in at this point? >> you know, we always like to wait for a pullback. we always like to wait for a pullback. we will get a pullback but the fact of the matter is i think that the financials, they will be offering dividend and they will get more investors coming in, not just traders but
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investors. so we like that sector, yes, and the asset management particularly within the financials. tracy: i know in your notes you said to keep your portfolio u.s.-centric because of all the nonsense going on overseas but it seems to me all the other countries are kind of following ben bernanke's playbook these days an printing money. if that be the case couldn't there be opportunity in europe or japan or even russia at this point? >> no, you know, just because it is u.s.-centric that is the bull of the portfolio but when you look at emerging markets, you look at the small caps within emerging markets which becomes domestically focused for them, those are ones that we like. we believe that japan, the loose hands will get out of there and you will start to see the shorting of the japanese yen and continuing. that's good for japanese exporters. and as far as europe goes, investors are going in as the data get less bad. you see it with some of the indexes there. so, we are looking there as well but the bulk of the portfolio is u.s.-centric.
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tracy: i love it. as things get less bad, our standards are so low. >> that is how you invest. tracy: i know, i know. quincy krosby, thank you. >> thank you. tracy: the bar is so low, isn't it? ashley: turning now to health care, a new study finds obamacare will reward workers living a healthier lifestyle. peter barnes in washington, d.c. i'm sure you live a healthy lifestyle, peter barnes. >> doing my best, ashley. the department of health and human services has finalized rules in obamacare that allow employers to reward workers who participate in wellness programs starting next year and penalize some who do not. the rules would give workers discounts on their coverage, to be healthier. up to 30% discounts if they meet certain wellness goals such as lower weight or lower blood pressure or lower cholesterol. they would give discounts up to 50% for smokers who quit.
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some critics say the regulations could be unfair to some workers. for example, for those who have diabetes or who are heavier for genetic reasons. >> on the one hand they're trying to ban discrimination based on health status but on the other hand they're trying to say well, some discrimination based on health status is good discrimination and that's what this regulation is all about trying to define. >> hhs says the rules are designed to reduce the burden of cronic illness and to promote good health and to limit health care costs but the rules also say that companies with wellness programs must offer employees reasonable alternatives, certain employees, and give them discounts to avoid any discrimination. ashley? ashley: all right. very interesting, peter barnes. thank you very much. tracy: that means you have to drink more red wine than white. red is good for you. ashley: don't we always? tracy: like vitamins. ashley: dark chocolate. tracy: there's that. red wine and dark chocolate.
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we're very healthy. ashley: very healthy. tracy: coming up an economic battle pinning red states against the blue and we'll tell you who is winning and why next. ashley: plus a mute button for the noisy cicadas and how you get peace and quiet, yes, for a price. lovely video. as we do, take a look how oil is trading. despite a surplus in oil we're moving higher with the market. up to 93.47 a barrel. we'll be right back. this is america.
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we don't let frequent heartburn ome between us and what love. if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc a don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur tracy: this is a great study. a new report shows red states outperform blue ones when it cops to economic performance. fox news's molly henneberg is in washington with the details. it is pretty cool, molly. i like this. >> hi, tracy. this study ranks the 50 states in economic outlook, meaning their potential to grow economically this year and in the future. it measures states on 15
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variables. everything from tax rates to minimum wage laws to labor policy to get a predictor how these states may fare economically. organizers of the study done by alec, the conservative think tank point out the top 10 are almost all red states. top of the list? utah, in part because it has a quote, predictable tax climate. alec says these economic predictors, are not quote, rocket science. >> people vote with their feet. vote with their checkbook, very strongly to states like texas, florida, states that are welcoming to job creation capital, where they're fleeing big government high-taxed states like new york, california, illinois, maryland. and that trend consistent with our doing rich states poor states. >> the bottom 10 stttes in economic outlook william says tend to be blue states with higher taxes and more restrictions on business development with new york and vermont rounding out the bottom two. some analysts say the study
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is too simplistic and doesn't take into account for a state's economic success. >> what drives people to move to different region like i mentioned initial endowment of resources, even things like weather. the population tends to be moving to the southwest. in a sense it wouldn't be surprising northeastern states are looking worse. >> this study also looked at states economic performance from 2001 to 2011. it was backward looking, this part of the study. the state that grew the most during that time, 2001, to 2011 was texas. the state that struggled the most during at that time, was michigan. tracy? tracy: i hope politicians are listening. molly henneberg, that was a great, great report. it is so on just -- obvious though. ashley: you think? tracy: i love it we live in the states on way bottom. ashley: not a coincidence. blue state, red states, market in a green state. long past time to catch up with the markets.
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lauren simonetti on the floor of the nyse. looks like the bidding war for clearwire is really heating up. >> it is heating up. shares of clearwire up 26% obviously with a new annual high with a gain like that. this is what is going on. dish overnight making an offer for clearwire which surpasses sprint's offer that clearwire was supposed to vote on tomorrow. so now it is getting a little complicated. reportedly that meeting settle for tomorrow has been declared. all three of these stocks are up, as you can see. so this is going to be an interesting one. let's quickly take a look at clearwire shares over the past year. you can see they are certainly making a huge gain and that is happening today. back to you. ashley: nice move up. lauren, thanks so much. we'll be back at the bottom of the hour. tracy: coming up, the boom in u.s. shale, posing a new challenge for opec ahead of this meeting tomorrow. we'll look how it could impact energy prices. ashley: but first let's look how the u.s. dollar is
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moving right now against some of these currencies. well it is down against them all except for the mexican peso. the euro is up slightly as is the pound, the dollar and japanese yen. we'll be right back.
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>> 20 minutes past the hour right now. hi, everybody, i'm jamie colby. this is your fox news minute. nypd commissioner ray kelley says the deadly poison ricin was found in an envelope addressed to new york city mayor bloomberg. one sent to the mayor in new york and one to bloomberg financed mayors against illegal guns, a nonprofit in washington. it referenced bloomberg's support for gun control and were postmarked may 20th from shreveport, louisiana. the secret service white house mail facility also intercepting a letter to the white house similar to the ricin-laced letter sent to mayor bloomberg. the letter to the president was turned over to the fbi for testing and additional investigation. the fbi's conducting a review now of the florida shooting death of a chechen immigrant, ibragim todashev. he was killed on may 22nd while being interrogated about possible ties to the boston bombing suspects. his father said in moscow
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u.s. agents killed his son, he claims, execution-style. those are the headlines this hour. i'm jamie colby, sending it back to ashley. ashley: jamie, thank you very much. appreciate that. let's talk about oil prices row bounding from the lowest level in the a month on the latest supply report. despite an oil boom here in the u.s. our next guest says it will have little impact on the market. we have the director tore of the energy policy research group. professor, thanks for joining us. let's talk about opec. they meet tomorrow. they're not expected to do anything with regard to output. there is somewhat of a disagreement about the impact on opec countries of the u.s.'s booming shale oil production, especially among the african members of opec. is this going to be a real game-changer for them? >> well, ashley, there are a couple of situations occurring here that are contributing to this dynamic. one is actually the unconventional oil
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production among opec members itself is increasing. in fact, well before 2020, 15 to 18% of the crude saudi arabia will move into the international market will actually be unconventional crude. there is plenty of it available wordwide other than in the united states. the essential disagreement in opec will take place between those who have predominantly conventional production and those who have access to the newer varieties of unconventional oil. that being said, the cleavage there in opec will not be particularly deep and even though there is a considerably greater amount of extractable volume than we initially anticipated in north america, that is not going to have much of an impact internationally because the demand among developing nations is about to go right through the ceiling. ashley: so countries like saudi arabia, the top producer in opec, they're not particularly concerned by this development, this
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so-called energy independence that is becoming a big story here in the u.s.? >> no. and in fact if you take a look at the last opec strategic report, which came out a couple of years ago, opec itself assumes that by the time they reach 2050 they're not going to be selling a single barrel of oil to the united states. they have already written off north america. and they're eginning to recognize that the unconventional production in other parts of the country, of the world, north africa, for example, will be changing the dynamics of the market. opec's future lies with asia and all of the members of opec know that. ashley: interesting. so what does this all mean for prices going forward? >> i believe, ashley, that we're in a restrained period of volatility in the prices themselves. we've got a pretty narrow band, trading band in the united states between 85 and $100s. that is likely to be the
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band we're going to be experiencing near term. however, that price restraint is actually generating certain opportunities within the u.s. market itself. among those companies that actually have better regional exposure, positioning and have basins which they can generate oil and gas at a less price at the wellhead. so we're actually going to see some opportunities in the united states among smaller producers and also the midstream companies that are moving it from point a to point b. those likely to be the real opportunities moving forward. ashley: very interesting stuff. we could talk a lot longer. time always runs out. kent moores, professor at duquesne university. thanks for joining us. >> thanks, ashley. tracy: if you live anywhere from north carolina to connecticut and you have small children in school, you have either heard about or actually heard the cicada. they're making their once
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every 17 year appearance and kids are studying them very hard in school. they're not technically dangerous as my little one told me but they can be extremely loud, producing sounds up to 120 decibels. they can actually cause permanent hearing loss if they sang just outside your ear. i think you have bigger issues if you're holding a cicada up to your ear. "consumer reports" tested noise canneling headphones to mute the cicadas. the favorite, the beats by dre, which cost $300. they also like a sony over the ear model which run about $240. a much cheaper option is jcc inner ear pair that costs 42. either way they're you loud and annoying as any elementary school is learning, don't kill them. they eventually will go away. ashley: close-up view they are like the planet neptune. they can make such a loud
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screech. tracy: right. ashley: all right. from cicadas to the white house, extending a mortgage help program that, wasn't very popular to begin with. gerri willis is digging for answers next. tracy: plus first look at some of today's winners and losers as we head out to break. the s&p 500 winners, first solar up 7.2%. charles payne's favorite. we'll be right back. [ engine revving ]
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new york stock exchange of more. >> reporter: off of session highs. take a look at this part of the dow in the green. almost pushing higher as we head closer to the end of the day year. the s&p 500 the nasdaq up as well. yesterday for the dow we have the first loss in three days. we're getting a much aback today. facebook is up today on a pair of upgrades. jefferies, one of the trades giving a boost say they're very positive on this july launch of the studio advertisement and said this could be the next billion dollar business. melson want to show you a chart of facebook or the past your so. you can see that the stock obviously is down around 40% from may 2012. ashley: thank you very much. lori: the obama administration is extending its anti foreclosure program by two years now. the housing market rebound and
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the questionable success rate are causing many to wonder what the heck they're doing. because it was a flop. >> it was. this is what the workers to tout what was supposed to do. the big hoax. we will help all learners. reduced principal, modify mortgages, fight off foreclosure people could stay in their homes. soup to nuts. was a program that allowed you to stay where you were in place and everything goes well. so it helped over 1 million homeowners says the launch, but there were going to help, but the proposal was that what it -- that it would help three to 4 million, the cayman way behind the government starts a program. they don't know what they're doing. this in the banks would do all this work for them and they don't. so they actually have a permanent modification of their mortgage with median savings. and i am a crane the full screen -- ful.
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tracy: and their prophetic because this number is the best. some. >> rihanna spent 5 billion. this is the positive. the program hasn't worked, so we have not spent the money, but now the obama administration is saying we will extended for two years. now, now after wednesday read the information that home prices have gone upton%. flippers in california are doing a business at a rate we have not seen since 2005. the market is on fire, almost any way you slice it. the only problem is, there is not enough inventory. we are on our way to a bubble. the federal government wants to put even more cash into this. to me it is astonishing, and i cannot believe it. >> the people they're under water could potentially be under water, but your point about all the other stuff, that helps them get out from being under water. as some prices go up, the value of theirs will go up.
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so it's like you just did some patients. there is no reason. the way this of ministration things is spending taxpayer money, not. there's no reason not to. why wouldn't we. it's not perfection at. i think that only is it a bad use of taxpayer dollars from its dangers. because, to your point, this could really turn this boom into ashley: a bubble. >> a bubble bursts and then the government will be at fault. >> of the unused money get our deficit -- deficit. >> iraqis a really nice dinner. to saying. it would be a good time. at&t has decided they're going to implement a feat that $0.61 monthly for all of their customers out there. why, the reason, they say it is a customary fee. ashley: what does that mean? >> other people charged.
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ashley: is the very concept. tracy: is driving me crazy, so, yes, we're going to talk about it. 6:00 p.m. eastern. nichols and dimes six ways until tuesday. ashley: the class example. breaking news. oil closing up $0.48. oil, of course, rebounding today after earlier declines. all right. on decks, small business, big ideas. revolutions. healthy school lunches in 11 states. started in that project. tracy: as we head out to break the dow up about 88 points. let's check on your tan and 30-year treasury. your 30-year is moving slightly as well. up two basis points. we will be right back. ♪ i want to make things more secure.
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>> reporter: i'm nicole petallides with your fox business brief. investors are bullish. the new york fed terminated its agreement with the banks to move from regulatory to provision and allow it to return more money to its shareholders. the agreement had been in place since 2009.
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mortgage rates jumping this week to their highest level in the year. according to freddie mac the average rate on a 30-year fixed loan is now 381%. no longer on wall street. the public offering because of the merger with valley and pharmaceuticals. over eight and half billion dollars. bausch and lomb has filed for an ipo of up to $100 million in march. that is the latest from the fox business network, giving you the power to prosper. ♪
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♪ tracy: okay. in today's small business, big ideas, revolution foods is changing what american kids eat at school. the company makes 1 million meals a week served in nearly 1,000 schools across the country. you won't find any high fructose corn syrup or trans fats in
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these meals. joining us now, co-founder and ceo. i love your story because you actually wrote this business plan in 2005 when you were in grad school and did not even have kids. >> that's exactly right. tracy: and why? >> so my co-founder and i were inspired to start a revolution troops to provide access to fresh, healthy, delicious food for all students. it. tracy: and so you go into the schools. you create these fabulous meals. had you get them to tell these -- typically healthy food does not have much of a shelf life. had you get the food there fast enough? >> well, we actually operate out of seven culinary centers across the country. as you said, we are serving a million meals a week. we are daily receiving fresh ingredients in the back door in our culinary center. we are prepping the food, cooking the food fresh, assembling it command delivering
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a daily to our school partners across the country. tracy: how you get into the schools than? to you bring them the meals, to the kids get to try them? what is the pitch? >> it is actually really interesting. we do all those things. stevens certainly get to try our meals. typically are partnership starts out with students trying our meals. we're very focused on kiddy back when designing the meals, and that is what has allowed us to have success with pardners like san francisco unified who we just parted with with a program is actually driven real participation of the number of students taking meals every day by double-digit numbers. tracy: of the fear is typically more money. how are you selling that? schools are on tight budgets these days. >> welcome of portability is key, and it is important to recognize that all of our meals are reimbursable and compliant. that really speaks to that mission of access, making sure that all students can access the platform. so we have really used our scale
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and design a process, supply chain, our entire offering to make sure that affordability is at the core because it is so important our schools. tracy: with tickets think? no french fries and these mills. >> well, we have had a lot of luck with great participation. i regretted that to a lot of things. arcata validated approach where we are out sampling and testing and focus grouping with students. getting the best ingredients. tracy: i make my kids turkey sandwiches every day. you have see saltpeter chips. i don't give them chips. instead of a baggage chips, it is as pd chip and a piece of fruit. very small changes. how are you going to take this basically across the country? that has to be a plan, right? >> that is the plan. we are growing.
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we are currently serving 25 cities and growing every day. we actually had about 50 percent growth rate in the past year, and we expect another large growth rate this year, and it is really based on the demand for raising the bar for higher quality solution for kids. if we can keep a kid friendly and affordable than we feel like great growth is ahead of us. tracy: i think it's really interesting that the government has been pushing this and yet you, the private sector, is actually getting it done. christian richmond of revolution foods. thanks for taking the time. >> thank you. ashley: healthy guy indeed. good stuff. netflix learning the hard way that this hollywood stuff and so easy after all. the company winning rave reviews from the original series house of cards. now that the arrested development is out, it's a nightmare. dennis kneele -- dennis kneale joins us. >> reporter: a big business renting tv shows and moving in from hollywood and reselling the
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content to subscribers, but now that fancy themselves a producer on par with hbo. but they give us the sopranos and original shows that one dozens of amis. they have given us many house of cards, critical raves for lead actor kevin spacey in outcomes arrested development, of posted all the episodes at once, but the reviews are at times blistering for the survival of the libby comedy that our sibling canceled seven long years ago. they york times called it story and character. overshadowed jokes andd3 conceptual foolery. the "wall street journal" saying this series is reduced to doing a shaky imitation of itself. time magazine saying this series is dark, uneven, and frustrating. can't we have another. the better response is blamed for a 7% decline in stock earlier this week. stock has been up today.
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ceo taking to publicly defending arrested development, although he refuses to really give numbers and says ratings are not the point. sure they aren't. on television ratings are always the point. contract for $5 billion in content, but it does not -- is as it once 15% of its programming budget to get the original shows. $750 million. the way hollywood works, the more shows, the more flops will produce. ashley: i love their arrested development. definitely has a cult following. >> but for the money they spend, far more than colt. that was a problem fox broadcasting ran into as well. tracy: no one will be surprised that i have never seen it. ashley: not all. tracy: corporation until. time for stocks, as we do every 50 minutes, down to the new york stock exchange. i heard you say earlier, we were talking about the financials
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being on a tear. >> reporter: adding utilities into financials. you are still getting dividends. even what can i just think it is the flavor of the month and we have been hanging and utilities for quite a long time. as we have seen this sector rotation occur and equities become that much more attractive in general to investors that the investor portfolios already have enough exposure in some of the other sectors and not enough and financials. we are starting to see some of that come into play. tracy: financial's a ban on iran. do you think they have more room to go? almost 23% year today for the sector. >> the same conversation that were having for the market overall. you cannot fight the trend. the stepchild of people have stayed away from and really have not had a good grasp on. now that it is trading into such an aggressive manner people starting to steer away from it. i think that the momentum in this sector will most certainly continue.
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a quiet summer. we get toward third quarter, fourth quarter and we will see momentum continue to pick up. tracy: thank you very uch. >> thank you. ashley: not so we all need. tracy: yes. ashley: in france, hoping to turn wind into a pile of euros. we'll have the details. tracy: only in france. a waterproof tablet. adam shapiro will take you for a test. adam. take a look at some of today's winners and losers. dow is up 83 points. we will be right back. ♪
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♪ tracy: bringing as new technology with a waterproof tablet. coming soon, waterproof smart phone. at the all things digital be 11 conference and rancho palos verdes, california, adam shapiro there with the president and chief operating officer of sony electronics. i love this idea. >> reporter: it's a great idea. as you said, i do have him standing right here to describe. this is, i would call it my relatives in canada would say this said, but for those of us in the united states, busy. it is a beautiful -- this is an incredibly light weight, very sleek tablet. i'm going to have the son describes some of the attributes of this device which you can get
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now. as i poor water on it and continues to operate. >> this is tabelt z. we just released last week. a 10--inch screen. it is the lightest tablet with the tennant screen, also the slimmest tablet in the world. beautifully designed. and as you so well done here, he proved on other key attribute, it is waterproof. >> reporter: so far wanted to take this to the pool, big fingers, i apologize to my hit one of the buttons. it's still functioning, i can assure you that. i wanted to get the sliding dsk going. explain to me, this device. you have not announce the mobile partners said. for under $19, how does this is the equation? people like me grew up, you was the premier electronics firm in the world. how does this put you back in the game of being in the top player irenic? >> we have always pushed the boundaries and enervated and
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focused on really the customer experience and bringing new experiences. this piece of products is a wi-fi product. the beautiful thing about this is we talked in everything that is the best. we have a broad the engine in the background. the screen is very bright and clear. 20 percent more color reproduction. tracy: -- >> reporter: i can be in the pool. show me the phone. >> this is the tabelt z. it is unlocked, on sale now in stores. and in a couple of weeks' time we will announce our partner, operator, a partner that will
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go. >> reporter: we have been talking about the devices, but you also, they have on display here some incredible, a huge flat screen monitor televisions. to me about these. believe we might have video that we ensure you. >> we have been showing that 65 and jan 55-inch, the world's first all-star high-definition to a group of people here. and it is stunning, really four times the resolution and people look and without fail the sake of well, i want one of those. >> reporter: 85-inch display, but the other this place. >> the 65 basis $7,000. suraya changing the game there in terms of bringing another new experience to consumers. >> that sounds terrific. those of a cigarette, so like to see you in the game. this device, because of the glare you cannot see it as
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clearly as i can. the resolution is the functional . i'm just trying to steal this. >> you thrown water all over this. let you keep this one. >> reporter: appreciate you being here. on volume of it coming up next hour we have got troy carter, the manager but also from the atom factory, he is in every in the way you will be giving music in the future. the future is now, as you have seen that only from sunny but everyone here. this is just terrific. back to you. tracy: i think that's so cool. i'm totally the girl that drops stuff or ride on your tablet all the time. tracy: you know what. ashley: it's not water. it's a wind. tracy: so hard to balance the wind -- wineglass and the apparatus and time tracy: and nice transition for the story.
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watching out part of the palace's wine collection to raise money. more than 1,000 malls are for sale, expected to a fetch more than $340,000. put in the lineup for sales. ashley: to the unexpectedly tough lines. ,. tracy: this is why the was in trouble. [laughter] all right. liz will take you through the last hour of trading. the dow is up 93 points. don't go anywhere.
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>> this the evidence developed a memory sub so small that a half billion of them can fit on a bin and. co-founder and ceo, how they are used and how the brave new product made -- might make his start continue higher. a fox business exclusive. the man behind the billion dollar woman. we sit down with troy carter, the superstar behind a hugely successful social media strategy. wait until you hear what the next act is. it will alter the music industry landscape but never before. and speaking of entertainment, valet parking is nothing new, but bicycle well lead. haunted the nba's next is that again. ketchup of the man behind the plan. trough starts right now. liz: good afternoon. the last test -- it is the last

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