we will hear the case for letting those rates rise ahead. lori: plus attorney general eric holder meets the press as pressure mounts for a special prosecutor. weighing in on the off the record. ashley: know, yes, the internet sensation that is sweeping the nation. our very own lori -- no, it is ground pecans and her agent who will be here on how to turn internet celebrity into cash. ms. crosby. cute. in internet sensation. let's said ted stocks. the floor of the new york stock keychains, the never grumpy laurent joining us. you know what, forget the trends . it has actually been a great month. >> reporter: sell in may and go away. not this month. if you take a look at the major average, relatively flat, very

choppy session before the month, up three and a half% giver take. the dow and the s&p 500, up nearly 5% in may for the nasdaq. certainly it has been. today consumer spending falling for the first time in just about a year. concerning to some, but it looks like the bulls are on a run. this market still is negative. however, you know, and some positiveow and the nasdaq. by the way, you never follow a dog or cat. what's going on here? he put me on after the catch. ashley: i'm sorry. the animals and kids. you did great. lori: the cat at the end of the hour. building a lot. all right. you heard the stock. less talk about commodities. gold in particular. opec oil ministers keeping the status "production at 30 million barrels per day. fox business contributor phil flynn in the trading pits at the cme.

the managing markets and this one. >> well, it is. a lot of people were a little bit nervous about selling into the opec meeting just on the outside chance they cut back on the production. there is a lot of problems right gas. it is not just the country's of the saudi arabia. countries in north africa that they generally get along with. mostly concerned that they tipped their hats to try to help of north american neighbors. there was none of that. the situation in the united states. how to react to it in the future. from the market's standpoint, it's bearish. really the only things that is holding up this market, the uncertainty. we are seeing pressure. oil, down 66 points. we are seeing heating oil down the over four. strong this is gasoline, and that is on concerns of refinery

problems in the midwest again. lori: thank you for that. down considerably. ashley: it is. president obama hosting an event for college students at the white house to discuss the ongoing battle over student loan rates. those rates are set to double on july 1st. peter barnes of the white house with more. >> reporter: that's right. the president taking to the rose garden to pressure republicans in congress to avoid a doubling of student loan rates that would kick in july 1st. they will jump to almost 7% for new loans without a fix from congress. both sides have proposals to fix the problem. the president pushing his plan surrounded by college students out there in the rose garden today. his plan would keep most student loan rates low by pegging them titanias your trip -- 10-year treasury bond rates plus a surcharge of about 1%.

so by that formula the rates would be about 3 percent today. then he would keep the rate fixed for the life of the lawn and lessons cap payments to 10 percent of their income if they need to to keep them affordable. last week house republicans passed their plan. it would also pay grades to the 10-year treasury, but have a surcharge of two and a half%. their rate would be about four and half percent. it would reset rates every year, but the rates would never exceed eight and a half percent. the president's blasting republican plan. >> it fails to live again low rates for students next year. that is not smart. it eliminates safeguards for lower income families. that is not fair. you're going to actually costa freshmen starting school this fall more over the next four years than if we did nothing and all. >> reporter: republicans, which only give the president and a for politics, house speaker saying in a statement,

the difference between the house plan and the president's plan are small, but today rather than working to resolve the issues the president resorted to a campaign stance to score political points. ashley: all right. thank you very much. lori: well laid out. let's continue with this topic because it really seems simple off. colleges expensive. why the rates suddenly doubling? welcome our next guest says it is far from simple and time so that those interest rates rise. the cato institute associate director of the center for education freedom. so, as you know, welcome, of course, first and foremost. a year ago congress voted in the transportation bill to extend the low rates for another year. here we are approaching expiration date in the issue has come up again, yet it is much more political. you say the industry should just be allowed to rise on a federally backed student loans, just to be clear. why is that?

>> will we see in higher education is that students ages let's colleges raise their prices. in other words, it's self-defeating. we also see major problems of overconsumption of higher education because it is relatively cheap. about half of people who enroll in college will never finish. about a third of people with bachelor's degrees are in jobs that do not require it. we should let the markets at these rates, not let politicians ashley: the president just said, it's just not smart. it actually hurts lower-income students. prices them out of the game. >> that's simply not true. the fact of the matter is 55 and they're is a lot of data that shows this. the 80's is translating into higher prices. making it cheaper means that college is to raise their prices faster and it becomes and it is, self-defeating. if you really want to help people, let them go to the private market where they show that they have the ability to a the college level work, have a major that has a payoff and will

be able to get loans at reasonable rates that other people wanted money that lets them go to college to do things that don't pay off. lori: it is a vicious cycle, as you so eloquently described. the problem is, the political fallout. it is not political popular to give the appearance that you're shaking down students in this tough economy for more money. how can you get your message across party lines? >> that is similar. political no one must be seen as the guy who does not want to give money to people to go to college. that is why the public needs to know that this just fuels tuition hyperinflation. inflation in dollars is greater than anything, even greater than health care. it is not helping anything other than enriching colleges. the public needs to understand, it sounds like helping but it really isn't. it is hurting, and the need to say to people in washington, stop doing this. it hurts taxpayers. it hurts students, and it is religious in rich and colleges. ashley:

ashley: from a practical standpoint he said, of the 30 jobs that will show growth through 2020, only three require a 4-year degree or higher. so the question then becomes is it really worth it to get a college? >> well, is probably not worth it for many people to get to a four year program. post secondary training could make sense for people, but that generally will mean shorter certifications, quick programs where they learn specific skills. the way you do that is you have a real market setting where people can get a loan to do six credits or certificate programs where we break down this model that we have set in with federal aid where everybody is going to a 4-year program or 2-year program or go on to amass bigger your things like that. lori: that is what rates would be if they're allowed to double, if congress cannot get it back together and come to a compromise. to you agree that is the sweet spot for interest rates were it

would inspire college students to be particular about the majors and a career path that they choose? >> i don't think it is the rate. we have to understand that it was set by congress several years ago. lori: what should the red b? >> i don't know. we would need a market to set that. it would vary based upon the student. the background, the demonstrated ability. what they want to major in, where they go to school, and that is what we need. a system where you can tailor funding to specific students. not a one-size-fits-all politically determines loan program. lori: and i suppose we will leave it there because it sounds like too complicated to come up with a formula for that. we do appreciate your analysis and then cite. ashley: okay. european markets closing down as unemployment in the eurozone reaches that another new high compared to last month. unemployment tipping up to 12%. that means almost 20 million people are out of work across

the region. nearly one-quarter of job-seekers under age 25 are also unemployed. some analysts said the jobless rate could hit 20 million by the end of this year. netflix is on the move. it is not just the stock price, which by the way is up over 250%. starting thursday the video screening company will join the regular people waited and ex-technology versions of the nasdaq. netflix replaces the drug manufacturer peridot. and hurricane season officially taking off tomorrow for the 2013 season, predicting 16. it has gone up. tropical storms, eight hurricanes, and for major retains. we have to keep an eye on the pacific in the atlantic. lori: as to stall at weather. it has been particularly brutal. retirement under fire by the latest spending report from social security and medicare. ashley: a whole new meaning for

the term madman. the move that of the ad world's fuming. lori: plus, the nba mvp with an intern. will he pay up? ashley: he should, but let's see. let's get a check on metals as we head to the break. a stronger dollar. we talked about gold down nearly $18. we will be right back. ♪ i turned 65 last week. the math of retirement different today. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it. ishares incomes etfs. low cost and diversified. find out whyine out of ten large professional investors choose ishares for their etfs. ishares by blackrock.

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ashley: it may not come as a huge surprise, but the social security fund is not so secure according to a new report out this morning that the program only as resources to cover a couple of more decades. joining us now from washington d.c. to break down the numbers. >> reporter: 20 years and the benefits will fall or taxes must rise. social security can no longer pay full benefits after 2033. this is the same estimate, the same report from last year.

after 2033 social security can pay about three-quarters of its promised benefits. medicare can pay its full benefits until 2026, two years later than forecasted last year. but 2033 it could only pay 87%. by 2015 and after reelecting about 70%. the white house calls this good news as the report credits the president's health care law with extending medicare for almost a decade. >> today's trustee report confirms that the affordable care act is continuing to strengthen medicare and insurance solvency for future generations. >> reporter: the chief actuary for the centers of medicare and medicaid services says that while the affordable care act makes important changes to the program and substantially improves its financial outlook, there is a strong likelihood that certain changes will not be viable in the long range. some liberals and conservatives are already releasing there fairly predictable reactions. democrats say the programs the some tweaks.

some have proposed raising social security taxes. republicans have called these entitlements financial situations and on coming crisis and are you democrats a proposed little more than paying health care providers less for performing the same service, and this is a friday. if yes what some weekend reading , this is your social security report. here is your medicare. right there. enjoy. happy friday. ashley: mccourt to that. thank you. lori: that will do its. ashley: of the in the hammock this weekend poring through those documents. thank you. lori: with a cocktail on the side. a check on the markets as we do. lauren is on the floor of the new york stock exchange. >> reporter: getting a little bit of a pop today. and certainly a pop for the year. up 32%. so far this year. here's the deal. that board has unanimously recommended the offer from founder michael dell and silverlake partners to take the struggling pc maker private for more than 24 billion. that works up to 1365 per share

and you might be saying, not that much of a premium. in fact, it is because the price actually represenns a nearly 40% premium based upon the average price before all the rumors of the deal started. a nice bump today on that recommendation to the board. back to you. lori: i like that. thank you. ashley: the bull's firmly entrenched for the month of may, but will this rally last antigen is what everyone is asking. common fund chief investment officer will be here. what he will tell us, why he is betting on yes to that question. lori: investors probably thinking caterpillar. ca t r may be the comic strip icon, the lazy lasagna loving garfield. and of little girls everywhere are screaming with delight over hello kitty. these days there is a new feline star in town. and that is grumpy cat. the internet sensation that is turning it into big bucks. in studio. ♪

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>> reporter: at 21 minutes past the hour, i'm arthel neville with your fox news minute. in turkey police are using tear gas and fire hoses on government protesters in istanbul's main square. dozens of people are protesting a government decision to demolish a part in the city center and replace it with a shopping mall. today's crackdown occurred on the fourth day of protest. a giant asteroid is headed toward earth. asteroid 1998 qe2 is about nine times the size of a cruise ship. we are not in danger. it will pass by earth this afternoon at its closest point to our planet for at least 200 years of the three and half million miles. thirteen year-old from queens, new york the winner of the 86 national spelling bee. he won by spelling a type of dumpling. as champion he gets atrophy and $30,000 in cash. good for him.

as a your headlines right here on the fox business network. arthel neville. but did you back to lori and ashley. ashley: i did not know what it was. >> reporter: to start a new well eating canejo. ashley: thank you. a seesaw daa. pretty flat. positive consumer sentiment numbers. the s&p 500 aims for its second straight monthly gain. will the bull market continues its run into june? that is the big question. , and find it investment officer joins me now with more on why he remains bullish. the wholesale and may go away, forget that. we keep it going and do we have a generous one? >> we keep it going, although i would reckon this in different markets. the u.s. has continued positive news. one of the things that struck me recently, surpluses. california, connecticut, we may find some surprise in the public sector gdp it we had not

anticipated. private sector is good. europe, continued structural problems. the unemployment rate there. the interesting thing is in japan which has had some real volatility this month. it is difficult when you have i down 7% day and still be up for the month, but japan is the? out there for the summer and beyond. ashley: the common fund it manages 27 billion in assets. the mainly have them down in foundations. is it more conservative and how is your portfolio allocated? >> in some sense it is more aggressive. if you have a 20 year time horizon in terms of an endowment, you can take on certain risks in stocks that he might not be able to take on as an individual investor. likewise, you may be able to take on more illiquidity in your portfolio private investments, private equity hedge funds. in some ways it is more conservative, but there is certainly the idea that you need

to make cpi plus five. you want to basically be able to spend 5 percent every year and not lose anything in purchasing power. so like many investors, they won both, higher returns and low risk. ashley: with that in mind, what areas do you like? >> we are forecasting process, as we set an allocation and bring in the best managers to execute on that. in that context, asset allocation, long term, medium-term and a short-term. frames where we started off which was overweight equities, and particularly emerging markets in the the u.s. and in japan. so attractive areas also. i think real estate is attractive and will continue to improve. even in a more opportunistic real estate area. ashley: how much does this change in your mind was the fed begins to cut back on its bond purchasing? >> well, it is the reason they cut back. if they cut back because the economies and well then actually

at think it is very positive for the equity markets. in fact, what we have seen happening this year which is a little bit different from last year, reduction of systemic risk which means that basically p-e multiples can withstand, so we can have the s&p go up, even if earnings don't increase dramatically. so if the fed cuts back the program there will be a blip in the market. no, my gosh. liquidity is being taken away. ashley: theoretically the economy is good. >> exactly. only if things heat out of control in the fed has to tighten, then -- yes. ashley: thank you so much for being here. >> thank you so much for your time. ashley: thank you. well, forget keeping up with the joneses. it is the henry's. i forget what that acronym was, but we know who does. setting the pace. a group of height earners concerned with consumer spending. jeff flock has the answers in a suburb of chicago looking at

some pricey homes. >> reporter: a lot of henry's out here, high earners not rich yet. that is what henry stands for. take a look at the speech of an, a product of the kalamazoo outdoor or make company. they make ovens for pizza, outdoor ovens, also grills that price up to $21,000. also another company. you have seen a lot of positive spirit of but the numbers for consumer sentiment up. the people you sell to our positive right now. >> we are having their best year ever. people see enduring value in our product, and they also just love the fact that it is made in america. you take that and you combine it with the fact that people are investing in their home life styles, our business is doing terrific. >> reporter: that designer of these sorts of things. and it people really love the quality of this. but the numbers up. these are people that make between $10,250,000.

they can afford your stuff. they may not have accumulated great wealth yet, but can afford you. >> yes. there is a real dedicated team at kalamazoo billing all of these products to order. every grill is signed. people take a lot of pride in owning and using in kalamazoo. >> reporter: this is the $21,000 grill. take a look in there. that is pretty hot. >> you can love this up with charcoal and wood. the people that actually make these girls, they sign it. if you take a look here, this is where you can see all of the terrific charcoal and wood and gas. the versatility you did with this is the reason why people paying the money. you can cook anything that you want, smoking, roasting, grilling. >> reporter: holy crow. >> at thousand degrees, which you cannot get with any other grill on the marketplace. >> reporter: fallout of high earners may be. we spend everything that we

make. ashley: that is the temptation. i am dealing rather hungry looking at that. very good. thank you so much. lori: so easy. peace on the grill. ashley: easy. a cheap date. lori: when learn that. lori: all right. ashley: working for free. 17,000. a shocking number who actually made the cut. lori: iu-turned from madison avenue. the world's largest advertiser cutting out the middleman and a power shift that is leaving ad agencies scrap defects scrambling. ashley: as we add to the break, down on the dow. more green and red, although it is pfizer up again. we will be right back. ♪

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ashley: it's the bottom of the hour. time for stocks. let's head back to the floor of the new york stock exchange. our very own lauren simonetti who has some earnings winners for us. lauren. >> i do. let me first show you the markets. we have a battle between the bulls and bears the whole day. the stocks hugging the flat line. dow industrials trying to stay positive, up one point. let's talk about a trio of companies moving on earnings. lions gate at a new 52-week high. "the hunger games" and "mad men". krispy kreme donuts up 21%. also a new annual high. volume is huge, 7.1 million shares. we typically see 1.1 million over the course of an entire day. krispy kreme raised full-year numbers about. they are finding ways to get customers to eat more than doughnuts into their stores again. finally, guess shares,

another big winner. the story behind guess, earnings were down sharply 63%. north american and european sales were weak. but guess what? down 63% actually beat the company's targets and they're a winner today. consumer discretionary stocks are down as a whole. back to you in the studio. ashley: dunkin' donuts and chrispy cream i'm in. lori: did you have lunch before you came here. ashley: really bad food. lori: talk about proctor & gamble. there you go. message for the ad agencies here, that shill for its products is hurry up and wait. dennis kneale is here to explain. >> that is the message proctor & gamble is giving ad agencies when it comes time to pay the bills. p&g, one of the biggest advertisers, forces advertisers to wait 75 days for p&g to pay them. that is 25 days longer than old period of 45 days that is 66% longer delay. in grocery store chains wanted to force p&g to wait

75 days for what they on stocking up pampers, diapers, tide detergent and charmin toilet paper, not going to happen. p&g makes them wait because it can. it is one of the largest advertisers in the world. the stock fared well over the past year. they have 25 separate brands with each over a billion dollars in annual sales. where grocery stores earn a penny on dollar of sales. even that skimpy profit relies on payments from p&g other makers for premium product placement on store shelves. p&g late play delay from kraft spin-off mon dell lease. johnson & johnson, anheuser-busch, inbev. ad agencies are miffed. given the size spent by giant brand. what are they going to do about it? ashley: absolutely nothing because that is their bread and butter. what is the whole point of this? >> better cash management.

if you're p&g and billion dollars of sales and interest rates. if you hold onto the cash they could score extra half a billion over a year just in cash. lori: that is unbelievable. how precedent-setting is this? are other companies as powerful and influential as p&g to call the shots. >> the big worry now that p&g done it and kraft spin-off and j&j that everybody is going to do it. unless someone in the ad business draws the line we'll resign the account rather than put up with this, they will have their way. lori: incrementally? >> that is what happens. they will find a way to raise it in prices they charge in the stores. we'll end up paying because p&g wants to hold onto its cash a little longer. ashley: 75 days, that is 2 1/2 months? >> yeah. that's a long time to wait, especially when they meanwhile are trying to collect within 30 days. ashley: yeah, yeah. lori: so we'll see if that changes the pay schedule as well. ashley: more pressure.

lori: exactly. thanks, denis. >> thanks. ashley: interesting stuff. if you're looking for an internship, if you sent your resume' to goldman sachs you're certainly not the only one. the investment bank received 17,000 applicants for its summer program. turns out the financial crisis hasn't detered young once pursuing a wall street career but only 350 of those 17,000 applicants actually made the cut. how about those odds, huh? hmmm, if you made it, good for you. basketball king lebron james is looking for interns as well but a love for the miami heat is not enough for a slam dunk application. the nba star seems pretty particular who he will hire. those requirements include, residing in ohio, south florida, or new york and fluency in spanish, a knowledge of journalism, marketing and sports and the ability to work 10 week for three straight semesters. but while the awl-star player makes more than 17

million a year seems his interns could go unpaid. one thing missing from the online job posting was any mention of salary. come on, lebron. 17 million a year. cough up a dollars here. lori: has to be an oversight, right? ashley: i would think so. lori: working with lebron, the networking potential, that alone could be invaluable. ashley: doesn't pay the electric bill, whatever. lori: you interned right? i interned. we all interned. sounds poetic. i didn't get paid anything for a long time and had to work a second job. i you used to work at miller's outpost. ashley: i did. clothing shore in l.a., wore a sheriff's badge and said howdy, i'm ash. i did. lori: everyone has to pay their dues. 157 white house visits later why ex-irs commissioner doug shulman visited more than any other cabinet member. "wall street journal's" steve moore just ahead as the pressure mounts for a special prosecutor.

ashley: is bon jovi the new ben bernanke? the rock star's economic plan to combat the crisis in europe just ahead. ♪ . we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't chaed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

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with your fox business brief. in the midst of a rising stock market, american optimism over the u.s. economy pushes consumer sentiment to nearly six-year highs. wealthier households continue to set the pace, confidence among both middle and lower income earners also shows improvement. samsung will reportedly use an intel processor to power a new galaxy tablet. according to reuters the move is seen as a major for the u.s. chipmaker which is struggling to find its footing in the mobile market. how much would you pay for a private lunch with the "oracle of omaha"? the an all auction for lunch with billionaire warren buffett kicks off on sunday on ebay with a starting bid of $25,000. the proceeds go to a san francisco homeless charity, the glide foundation. that is the latest from the fox business network, giving you the power to prosper.

lori: attorney general eric holder is meeting the press again today. the meeting is in response to the controversial government surveilling of journalists. fox news declined to attend the meeting due to the off the record nature but "the wall street journal" did participate. stephen moore, a senior economics writer for "the wall street journal" welcome to the show. >> hi, lori, great to be with you. lori: some of your colleagues who attended maybe they leaked what the meeting was all about? what do you think of these meetings overall being off the record? >> well, first of all let me go back to the issue what happened with the irs story. i find this to be outrage just that the irs commissioner has been over at the white house more often than the attorney general, then the head of the department of treasury. there is something wrong here and i think it gets to how politicized the irs has become in this administration. this is hardly the first

administration that politicized irs but 150 visits is quite excessive. lori: steven, just want to throw this out there. do you not just want to address the doj is it too close to the vest for you?. >> yeah. i would rather, i would rather not, yeah. lori: just to be clear i appreciate you being honest with me. let's talk about the irs if that is where you're more comfortable going. turns out as you said the former irs commissioner doug shulman had more recorded white house visits than any other cabinet member. that is not what he said last week. i will get your response to the specific bite. >> easter egg roll with my kids. questions about the administerability of tax policy they were thinking of. our budget. lori: of course, you know he talks about when asked why

did you go to the white house he says, well, you know i'm going -- easter egg roll. what do you make of the answer? it has to be so obviously politicized. >> i don't think there is much credibility in that and i think there is a kind of a bit of a cover-up in terms how long he was over there. you have to ask yourself the question why does the irs commissioner reporting to the politicos in the white house? in fact i would make the case to you, lori, one of the repercussions of this scandal, maybe the irs commissioner should become, independent, like the federal reserve chairman, you know, so he is not, he doesn't report to the president because the temptation to use the irs for political purposes is so intense. and again, this is something that goes back to franklin roosevelt's presidency. this is not like barack obama invented the politicization of the irs but it certainly has been brought to new heights. lori: what do you think of this plan to put in a new

risk officer at the irs? i know there was a quinnepiac poll that followed up to that. sounded like the public would actually like to see a chief prosecutor assigned to the irs. >> you know, and reason for that, lori, is the public knows how abusive the irs can be because it is one agency of government that we all, you know, come very close to. and it touches us. and we know the extreme power this agency has. it can garnish your wages. it can come into your home. it can take money out of your paycheck. so yeah, i'm not surprised that the public believes that a prosecutor should be, should be attached to this scandal because people seen first-hand the kind of abuses that take place. lori: are we getting to the bottom of it? >> i don't think so. this is one of these scandals, lori, that actually, it is like unpeeling an onion. every day new aspects how deep this crisis runs and the scandal runs, and by the

way, thanks to fox and fox business news. a lot of this scandal, a lot of other networks by the way haven't really been covering this closely. thank goodness for you guys of the. lori: steve moore, appreciate that. we'll see you again. thanks. >> thanks, take care. ashley: as we do every 15 minutes let's check these markets for us. jason weisberg is on the floor of the new york stock exchange. jason, the dow just moving slightly lower now. you say it is somewhat of a rebalancing act today? >> yeah. everyone is getting prepared for the msci rebalancing, depending who you talk to it's a big deal. others say it is a nonevent. what we get out of it is a ballooning of volume. we see a huge expansion of volume we don't normally see during a friday, certainly during the summer, any trading friday. it will do, give some people waiting for some voluminous event, if you excuse the expression to move in or out

of a position they haven't been able to do because there hasn't been liquidity without affecting the price so much. this will give them opportunity to move large positions without moving the, the price too much. ashley: very good stuff. jason, thanks so much for joining us. we appreciate it. lori: rock and roll fans, bon jovi staying true to their blue-collar roots and make sure the fans in spain have a nice day. john and the boys are waving their fee on concert tickets in financially strapped spain. the ban originally was skipping a performance ou out country on fear that the tickets wouldn't sell. john bonn jeff very waived the fee for fans 30 years of support. those that sold for 80 euros will be sold for 18 euros. practically free. ashley: 18 euros is about 25 bucks.

there you go. not bad. talking of big acts, celebrities are a tough bunch to please and our next guest has made her living playing the perfect sourpuss. lori: from youtube sensation to big screen star, the one and only "grumpy cat" and her agent of course, of course. they're on their way in, to tell you how you can claw your way to the top. ♪ .

ashley: from living in obsecurity as a stay at hem cat to a big screen deal, "grumpy cat" has arrived, but how does one make money being an internet cat sensation? we'll tell you. let's meet the pair who

discovered the feline star the "grumpy cat"'s owner and her agent. of course she has an agent. of course the star herself, "grumpy cat". looking suitably, grumpy. lori: look at that face. a natural scowl. ashley: get out of here. tabitha, begin with you. tell me about grumpy. was she born with a grumpy face. >> she was born special. ashley: so you put her on the internet is that right. >> my brother brian did. ashley: what kind of reaction did you get for that? >> 27,000 views overnight. lori: what decide you to discover her, if you will? what makes her special and unique? >> i think "grumpy cat" has one of those special sparks inside of her. lori: what does that mean for an animal? we know about charisma among people? that can be pretty compelling. >> you see in the green room, everybody that works on the show was getting their pictures were taken before they made it on. that is just that magic

quality. she's cute. she looks grumpy. you can holder in the palm of her hand. kind of that magic mixture that makes her special. ashley: you take all those qualities. what can you do with it? what is the potential? >> i always say what can't you do with it. but, you know, "grumpy cat" has a huge fan base. we love the fans and you know, a-1 is about keeping it cool for the fans and giving them something to enjoy and continue to enjoy. ashley: what are we talking? movies, television appearances? store openings? i mean, what is grumpy's future looking like? >> the sky is always the limit. we just did yesterday announce we have a movie deal with broken road productions and so it will be the first movie deal that has happened and, that will definitely be a cool start. ashley:. lori: what can "grummy caa" demand as a salary? >> you ask tom cruise those questions? lori: it is out there, absolutely. we know the highest paid

actors and actresses and we know what agent cuts are as well. it is a fair question. >> it is fair, i always like to say as well just because she got famous on internet, just because she is a cat means she should demand any less. lori: you have a stable of animal stars? >> i have animals and people, i manage, means. things that go viral on the internet everybody sees. keyboard cat. two of the other biggest cats of all time. ashley: i can't believe the disposition of grumpy. she may be grumpy i should say, cats normally can be very squirrely but tabitha she is already, you know, suited for the bright lights of the cameras. >> that's true. she is really photogenic. don't tell anybody, but stays between you and me be, but she is really sweet. as grumpy as she looks, she pures when you touch her -- purrs.

ashley: we appreciate it. especially grumpy. look at that face. >> thank you, guys. lori: adorable. two hours to go to the closing bell. stocks headed for another winning month but s&p's sam stovall says look out, there is pullback coming. ashley and tracy is next on fox business. don't miss it. [ male announcer] surprise -- you're having triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense.

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ashley: welcome back. i'm ashley webster. tracy: i'm tracy byrnes. can they keep climbing from here? we'll find out. s&p chief equity strategist sam stovall will weigh in on

that. he is here. ashley: quite a different story in the bond market. treasury prices send yields plunging. a strategist, guy labot says more wild swings are ahead. he reveals his strategy coming up. tracy: there is a war over student loan rates. they are set to double next month. how will it impact the surging cost of higher ed? we'll have that story next. ashley: time to look at the stocks. the dow is slightly negative and flat on the day. let's go to lauren simonetti on the floor of the noiscy. >> it is a like a ping-pong match. did he would have bond yields pushing higher closer to 2.2%. we also have the dollar up. that is hurting gains. we have a mixed market. i have so much to show you. let's look at the dow industrials for the month of way. that could be at 7th month in a row that stocks are up. the dow is up three and change for may.

there goes that whole saying sell in may and go away. we didn't sell in may on this final day. the best performer for the dow was hewlett-packard up 21%. the worst performer, verizon down 8% this month. i also want to show you the nasdaq. it is up nearly 5% for the month and the s&p 500 is up 3.5% on the month. so certainly a strong one. we'll see what happens on monday which would be the first trading day of june. but looks like we're ending this month on a flat note, thank you. ashley: hard to bet against the markets these days. lauren, thank you so much. >> all right. tracy: our next guest says a pullback is on the horizon but it could actually be a buying opportunity. joining us sam stovall, chief equity strategist for s&p capital iq. here in studio. i love when you're here, sir. everybody is talking about pullback, it will come at some point and inevitable but you say there will be higher prices. >> it is inevitable that on average it comes once a year.

it shouldn't be anything that surprises us or scares us. you should look at it as an opportunity. our feeling maybe it will happen at around the 1700 level or a little higher on the s&p. that was a level forecasted by our chief technician mark arbiter. what usually happens they're surprising investors. they are waiting for it now and market will work higher and it will happen from a higher level. tracy: when you are here last time, we talked about the trade going into the summer. you said sell the s&p 500 etf. buy equal parts of the health care etf and consumer staple or trade out or do the reverse in october. is that working for you right now? >> right now it is basically keeping pace with the s&p 500. you brought up a good point where you basically said, do you really want to sell in may? i always said, no, you want to stay with stocks but usually defensive stocks do better may through october. since 1990 if you were in health care and consumer staples from may through

october but in the s&p from november through april you would have added four percentage points per year to your portfolio's return with reduced volatility. there is no guaranty it will work going forward. but i would tend to say if we are nervous, possibly we could get some sort of a pullback that usually it is these defensive areas that hold up best. tracy: interesting you're going off history and not ben bernanke and his money machhne, right? because we keep talking how he is potentially going to taper things off. people are having little taper tantrums about it. what would be so bad going from 85 billion to 60 billion a month? that doesn't sound so bad. >> that's a good point because something we've been saying it is like the doctor telling you i will take you off the iv and you're getting upset. no, because we're healing. the real concern because interest rates were kept so low so long the worry they will spike higher. if we end up with a more gradual increase in interest rates, then history says

that stocks do better than bonds, investors move out of bonds, move into stocks up until the line in the sand at 6% on the 10-year treasury. so i would tend to say that's the great rotation that has not happened yet. tracy: it's not, that's right. then you're saying then you expect it still to happen? >> we need to see some pain before stocks experience the gain. so you need to have investors move out of bonds and then say, where do i want to put my money? i will take the bad with the good. bad being higher rates. good being improving economy which is pushing up earnings and possibly prices. we constantly ask this question. so many people missed this rally. now coming into somewhat summer doldrums, do you say get in or say wait? >> i would say if you're a trader, i don't have an answer for you meaning if you're very short term. if you're looking 12 months from now i would tend to say history is on your side you want to get in. we're in the fifth year of this bull market and 83% of bull markets that celebrated

their fourth birthday went on to celebrate their fifth birthday. average price increase of 21%. if history repeated we would trade at 1875 on the s&p by early march of next year. tracy: whoa. i'm loving that. june trading ii starting. summer dole ups doctor we hope. do you think it will be a quiet summer? what are you expecting? >> my feeling is there might be no swoon in june. that because of some people are expected a swoon to take place right now, because of the worry, investors i think are getting head of the tapering to go with your pun earlier. if they're expecting it now, it will probably happen at a higher price as i mentioned. maybe it happens in july because companies will engage in window-dressing for june. it is the second quarter. so they can then make bigger changes in early july. tracy: we'll come up against the debt ceiling debate i guess could all add to it? >> it could but that is a very old wall of worry. my feeling boxer is rarely

felled by the punch he expects. since these are punches we've been worrying about for quite some time it probably will be something else that really tips us over. tracy: 1875 by march? >> that is what history says. tracy: we like that. sam stovall, thanks for coming in. >> thanks, tracy. ashley: a good prediction, isn't it? another example of do as i say not as i do. a growing number of lawmakers in the house and senate want to raise the federal minimum wage for private companies but those same lawmakers don't exactly practice what they preach. liz macdonald explains in emac's bottom line. hello. >> hello. yeah. so this is a new survey of 183 cosponsors of legislation to who want to raise the federal minute mum wage. 39% up to $10 an hour. look at number. 97% of them do not pay interns. there is flip side to this. taxpayers end up paying cost of those inturns.

the thrust of the study says practice what you preach. you're not really basically getting involved with what regular businessmen have to deal with in paying staff. ashley: right. >> tell you something. more and more companies are paying their own interns. you see that at google. you see it at apple. certainly see it at goldman sachs. some of the best places to be a paid intern is in social media and technology. wall street firms tend not to crack the tom 10. the flipside the reason you don't get paid as intern in congress is experience. reason why you don't get paid a lot as intern on wall street is because of experience. assley: right. >> time and again the thrust of the study, washington passing legislation that they are not really in the real world, having to deal with the impact of the legislation. ashley: right. >> and the other thing too, a lot of these guys who pass are on this legislation cosponsoring it they have no background educationally in economics or business. so --. tracy: that's what it comes down to, the economics of

minimum wage? it is entry level. you're not supposed to be there for the rest of your life, right? >> true. also get one week paid sick leave. that is the federal minimum wage hike bill. that is what the legislation would say to private companies, but you know whether or not congress understands impact remains to be seen. ashley: i would say no. tracy: remains to be seen. they don't understand it. let's clear that up for you. ashley: emac, thank you very much. appreciate it. tracy: coming up new warning signs from europe. italian unemployment spiking unexpectedly. charles payne says americans need to pay close attention. he will explain that next. ashley: makers mark still trying to win back fans months after scrapping plans to water down its whiskey. we'll tell you it's new plan to boost business. that is straight ahead. first as we do every day at this time, look how oil is trading. opec is expected to leave the output the same but the strong dollar pushing down on the price of crude, losing more than a dollar to $92.46 a barrel.

metals also moving lower on the dollar. we'll be right back. this is america.

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ashley: we have some breaking news for you from arizona. two small planes have collided and crashed in the desert north of phoenix. the phoenix fire department confirming four people are dead from this collision of two small planes. as you can see from this aerial footage, north of phoenix in the desert. tracy: ever since the thurman munson, right, those small planes scare me. thurman munson died in one of those planes, famous yankees catcher. new concerns about unemployment across europe with jobless claims coming in over 12%. one of the biggest surprises is italy where unemployment surged to a 36-year high. this is not good. >> this is not good. i saw tracy yesterday like ships passing in the night,

yelling from two different elevators. italy i had a great time. it was a great place we were talking about whether they have it right or we have it right with respect to how we two about it. people go to greece and italy, these people are doing it right. but there's another part to it and i think we saw it with these numbers. unemployment amongst the youth especially, 40%, over 40%. at an all-time high since they have been keeping the series since 1966 and what was interesting to me, there was a story a month ago, about 6,000 pizza makers jobs going begging, going begging. why won't the youth take it? somehow they get money from government or government programs and it is beneath them. that is starting to creep in here. i know kids in america who dropped out of high school won't work at mcdonalds. if you pay people not to work, they will not work. ashley: there is no incentive. it become as dangerous slippery slope. it really does. tracy: foreshadowing of the united states?

>> it could be but there is good news for the united states, arvind mahankali who won the spelling bee. tracy: he is cute kid. >> won it on a german word. he lost last year on german word. the year before he was kicked out of german word. he made his strengthness his strength and he won on a german word. tracy: what was the word? ashley: knaidel, a dumpling. >> there is this whole debate, whether we're a country that became great because we pulled ourselves up by our boot straps. this kid represents what is great about america in the past and what is the hope for the future. i was so happy to hear the story but to hear how percent veered over his weakness. it was fantastic. ashley: too much was missing these days. >> some kids have it. the girl who won "american idol" lost two years in a row before that. tracy: she sure did. >> young people, they have not fallen into the trap.

we see how slippery of a slope. by the way, youth unemployment 40% in italy? 42% in portugal, 63% in spain and 64% in greece. ashley: the youth, it is awful. tracy: good to know we have spellers coming up the ranks. >> that's right. tracy: i know a lot of people that can't spell. >> i special check, when i'm done, i go, oh, my god. i work spell check out like richard simmons, foreget it. ashley: i work spell check out like richard simmons. that is the quote of the day. thanks very much. have a great weekend shoe you too. ashley: quarter past. time to check the markets. lauren simonetti on the floor of the nyse. the stock exchange is making some changes. >> yes, they are. this is breaking news, ashley. the new york stock exchange asking the sec if they can bring back what they call speed bumps. these are lrps or liquidity replenishment points and

essentially what they do is cut back on volatility in certain stocks. we've seen a lot of issues with this, most recently at the end of the month, anadarko, next era energy all having trading issues. so the sec has in place in 750 stocks that trade hire at the new york stock exchange will be covered by limit up, limit down which governed the first 15 minutes of trading and final half hour. there will be broader protection over stock trading. this will take effect starting on thursday. it would have been good to have something like that down here today because we have the msci rebalance. this will be in place for june 28th, russell rebalance. that is what is going on. it will smooth things out when we have trading issues. ashley: seems like a good plan i would guess. lauren, thanks very much. see you back in 15 minutes. tracy: market pulling back down 34. coming up, what to make of the bond market's wild ride.

the -- you say it. ashley: guy labas. tracy: tells us what is says about the economy, the fed and more. ashley: look at dollar. stronger against all the commodities, oil and gold in particular. look at this euro down. u.k. pound down as is the canadian dollar, the peso and yes, the yen. we'll be right back.

>> at 21 minutes past the hour i'm arthel neville with your fox news minute. the u.s. and germany are warning russia that arming syrian president assad will jeopardize any possible international peace talks between syria and rebel groups. secretary of state john kerry and his german counterpart also said russia's transfer of new, long range surface-to-air missiles to assad's forces could prolong the syrian civil war. in turkey riot police used tear gas and a water cannon in a raid on government protesters in istanbul's main square. thousands of people are protesting a government decision to demolish a park in the city center and replace it with a shopping mall. today's crackdown occurred on the fourth day of protests. a buy ant asteroid is

headed toward either. 1998 qe-2 is nine times the size of a cruise ship. we're not in any danger. it will pass by earth this afternoon at its closest point to our planet in 200 years at 3.6 million miles away. those are the headlines. i'm arthel neville. get you back to ashley. ashley: i'm keeping an eye on the sky just in case. arthel neville, thanks very much. we appreciate it. treasury yields at the highest level in over a year taking attention from the attractive playing defensive stocks but how do you play the market? with very janney montgomery scott's guy labas is here with his take. guy, i was interesting to read goldman sachs bond selloff is finally happening. do you agree? >> well, i think it is evident in the market moves that occurred in the last month or so. we've seen substantial selling.

that said going forward i think there are a lost factors that will mitigate yields from rising very rapidly in the near term. number one, economic conditions while a little bit better are not accelerating at that great of a pace. ashley: that is interesting. as far as the 10-year-year-old what are you expecting over the course of say three to six months? >> well, i think one thing is certain. we're going to see a lot more of this volatility. one of the things that bernanke did last week was effectively put the markets on notice, that the we need to pay more attention to incoming economic data. we've been relatively incentive to the data for a couple years prior. we're certain to see a lot more volatility. the key strategy when you see the degree of volatility is keep a little bit of cash on the sidelines to be able to capitalize on any selloff we do see once again. that would describe a selloff as 10-year yields in the 2.2% area. ashley: a measured rise in the yield is actually pretty good for the market and financial especially. there are those who say that

is probably the best scenario, would you agree? >> i think a measured and steady increase is certainly a positive scenario. banks and financials make a lot of their money playing on yield curve, borrowing short from customers and making loans on the yield curve. steepness allows them to make loans at a higher interest rate. loan demand is pretty anemic with the financial institutions clients we speak with. in a normal environment higher interest rates in the long end could be beneficial for new loan originations. the fact that loans are not being made at a very fast rate kind of limits benefits. ashley: that's true. what about other fixed income areas? what about muni bonds, corporate bonds? what are your thoughts on those? >> sure the high yield market certainly had a tough couple weeks with spreads for treasurys widening a good bit with volatility. we think the high yield market for six to 12-month horizon is fairly attractive if you stay shorter on

maturity to limit interest rate risk. combination of selloff and spread widening in munis reached the highest levels in the course of a year or some it is coming in a couple good seasonal months for muni markets. i think represents a good short-term buying opportunities in munis. ashley: we haven't talked about the fed and much talked about tapering efforts. when will it begin? will it be done smoothly. if we take the worst-case scenario and it is not done smoothly, what kind of impact will we see in the bond market? >> i think obviously that would have a pretty significant impact. one thing that would mutiny increase from the fed stopping buying it dampens inflation expectation. real interest rates which are driven by supply and demand and inflation expectations. if the fed stops buying that weakens demand. real interest rates rise but at the same time it reduces the market's expectation of long-term inflation risks so we'll see some muted effect from that. our base case is that the fed actually tapers that

quite at a slow pace, much slower than the markets are perhaps anticipating over the past several days. ashley: so much is made of this great rotation. i don't know, is that just a myth or some reality out of bonds into equities? i don't think it is at the pace that everyone either assumed it is operating at or not happening at all. what is your thought? >> i mean the term the great rotation really came from an analyst paper last september i believe and kind of caught on at the beginning of this year. one of the issues we have is a large portion of the bond market are owned by investors who are essentially not flexible. and that includes investors like banks, insurance companies and pension funds who functionally speaking can't sell out of their bonds at a rapid clip. when you consider that part of the market being locked down, there is potential for the sector rotation on the margin. it can't be full-scale. it can't be broad. ashley: interesting stuff. we'll see what the fed does but those yields certainly starting to move higher. guy, thanks so much for joining us. >> thank you, ashley.

tracy: oil prices are tumbling after opec's latest meeting. we'll have a live update from the cme next. ashley: plus consumer sentiment near a six-year high. jeff flock is live from one retailer hoping to cash in. jeff? >> hey, you have heard of the yuppies, right? you heard of the di in. k? double income, no kids? have you heard of henries? we have the president of a company that knows henries very well. a lot of his customers are henries. who are they? we'll tell you when we come back. might get some food too.

♪ tracy: we have 19 minutes until the close. take a look at your dow 30 right now. tech mostly in the green. intel, ibm, cisco systems. consumer staples down today. coca-cola, procter and gamble and johnson and johnson. let's head down to loren on the floor of the new york stock exchange. >> reporter: 90 minutes left for the month of may. we have a market that is looking like it wants to close lower on this final day. the dow down about 43 points. off session lows. we did see green and a couple of points today. the nasdaq down about six and a half points, and the s&p down seven. a huge winter bonus. 9 million shares, huge for this company. stocks of more than 23%. a new multi-year i trading well above $17. it reported earnings that beat expectations. same-store sales growing. they're getting customers to

what things other than the down at the come into their stores. frozen pink lemonade. tracy: thanks. ashley: donuts. [laughter] we will headed for its third weekend decline of opec keeping its production target unchanged. price features group is in the pits of the cme. our concerns about global demand is what is weighing on crude right now. >> absolutely. and if you look around the globe, whether it be china, the ts, european unemployment, is going through. around the globe, there is not a lot of reasons to be optimistic about demand. and in the past when we have that type of situation, opec used to cut production, drive prices up. but they realize, with the economy being so delicate and the gas revolution in the united states committee have to be very careful that if they tax production they could do more damage to demand what they could

actually lose market share. how the markets react? to the downside. across the board. he looked at heating oil, crude oil, even gasoline. across the board. down after that big opec decision today. ashley: and so what does this mean for prices at the pump this summer? >> well, we just heard aaa came out with $3.50, looking for prices that fell dramatically. you know what i feel bad. every time we make a prediction like that something bad happens. it happened. another refinery problem. the midwest really is one of the reasons why the national average stays stubbornly high. we have another problem out there. chicago cash market. the big picture, i agree with them, once we get the refineries fixed, we can see prices fall and dramatically. $3.15 maybe i if we can get these refineries working. ashley: hopefully we have not jinxed it. phil flynn and a prestigious group. thank you so much. >> thank you. tracy: well, consumer sentiment

is at its highest level in five years. who is doing all the buying? turns out it is the henry's, whoever they are. jeff flock has details. in a suburb of chicago. yes. what is it? >> reporter: it is you. yes. it is you. tracy: so, henry. >> reporter: high earner not rich yet. i know you are not rich, tracy. but you work in new york. high earner not rich yet. these of the people letter actually spending the money. the president of the company that loves them. >> yes. i am president of kalamazoo outdoor gourmet, and we make the best outdoor equipment in the world. the girl you're looking at right here is the only one in the world that puts with charcoal, would come and gas all at the same time. >> reporter: the price on these, they started 10,000. >> yes. they start at $10,000. this one that we're looking at is $17,000. the reason why they're so expensive is because they have the most versatility in the

marketplace. and on top of that, they are hand built to order in kalamazoo , michigan. in fact, the people that build your grill, your broker. >> reporter: you better turn those states. how much he? with what you did. burn them. >> just a little bit. >> reporter: people are spending money on their homes, and particularly outdoor stuff. decent improvement shows focus on outdoor, outdoor kitchens. >> absolutely. we have been doing well for the last several years because we find is people are investing in their home life styles. they want to stay at home and enjoy amazing food with their family and friends. >> reporter: just to define it again, as we said, high earners, not rich yet. make between $10,250,000. of course, depending on where you are in the country, $2,002,000 in new york me give you a one-bedroom place. in wichita, kan., you're a king. but these other folks that are driving the economy because they are making money and actually

spending it on reasonably high-end stuff. it is one of the big drivers of the economy right now. tracy: for $17,000 a grow better come with a young man named henry to cook for me. [laughter] jeff flock. >> reporter: i got nothing for that. ashley: henry, the cabana boy. tracy: 17,000. c'mon, now. ashley: coming up, a battle brewing in washington over student loan rates, students and their parents are getting caught in the middle. it details ahead. tracy: at we do -- as we do every day at this time of day, we take a look at how your ten and 30-year trading, up seven basis points today. over 2%. 30-year up six basis points. the dow has fallen a little, down. we will be right back. ♪ [ lighter flicking ] [ male announcer ] you've reached the age where giving up isn't who you are.

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♪ >> reporter: and here is your fox business brief. the social security and medicare will be insolvent in 20 years, according to a report issued by the program's trustees. the report warns both programs face significant funding challenges as the giant baby boom generation continues to retire. u.k.-based travelers buying 60 new planes and at deal valued at $6 billion. the world's largest tour company and operates. the agreement also includes an

option to buy 90 additional planes. and as the summer travel season kicks up, trip advisers surveyed more than 9,000 people to determine their tipping behavior when they're on the road. the leader not to let germans of the most generous while on vacations, followed by americans italians came at the bottom of the list. as the very latest from the fox business network, giving you the power to prosper.

♪ tracy: president obama hosting college students at the white house as he launches a new campaign to reform student loans. >> we have to make sure that federal student loan rates don't double on july 1st. it the house of representatives has already passed a student loan bill, and i am glad that they took action, but unfortunately the bill does not meet that test. it fails to law can low rates for students next year.

tracy: the house speaker says it's better than the politics. here with more on that. >> i have to tell you, this is a tempest in a teapot. both sides are doing things they never imagined. above stop the doubling of rates by july 1st and said market-based rates. so they are not far apart. a stick with the details are in with the house bill. the rates for the 10-year treasury. these rays would reset annually. stop-loss rates at eight and a half%. you're seeing the details. kaplan's at ten and a half%. the president does the same thing. he would essentially tirades to the 10-year treasury, fix the rate of a lifetime. then there is something in there i find problematic. he wants to the put in place this rule that would be paid as urine. so you would not spend over 10 percent of what you earn on your debt. and what is more -- this is the clincher that no one is paying attention to, and taxpayers

needier. after 30 years your balance is forgiven. ashley: you're kidding? >> here we go again. promising taxpayer money down the road to people. the american public is really not aware of it. this is been a problem with the student loan situation for years now. we are giving people too much free money and people don't pay any attention to the amount of debt they take up because they know at the end of the day will be forgiven. they will go on as low payback brunt -- program. ashley: a hundred dollars. they will just raise a 200. tracy: exactly. ashley: it's meaningless. >> as true, but i think it is a fact that the federal government is they're making these loans that allow these colleges to do it. the other reason that the tuition is where it is because they know that these kids can go back and just give more money. i no college kids that have their tuition rates while in school. they have to go back for more money all because of this free government loans.

tracy: i agree. >> there is a part of the president's bill that would make this even worse. that is what i am really concerned about. the president called the house bill today not smart. he is calling it out and away it is just not true. he is campaigning, and this issue, unfortunately, is tied up in all the other and paris as the president is facing right now and should not be. we should get it right. ashley: are we going to talk about this tonight? >> no. is not on the show. [laughter] no. tracy: what are you talking about? >> we will be covering some health care stories tonight. join us. the six and 9:00 p.m. ts cif. ashley: exactly. well, how about this, better late than never. procter and gamble must be feeling it. the giant advertiser is imposing a major delay in paying its bills. this is an interesting story. more coming up right now. >> reporter: zillow. p&g is invoking another old saying for its ad shops.

hurry up and wait. one of the biggest advertisers in the world. now forcing ad agencies and suppliers to wait for a full 75 days to be paid. twenty-five days longer than the old waiting time frame. 56 percent launder. no imaginary grocery store chain wanting to force p&g to wait 75 days to collect with the grocery store those for stocking up on the diapers and up the busy mall and tide detergent and headed shoulders shampoo. it is not contacted. p&g makes them wait because it can't. is one of the largest in the world. its stock is very very well the past year. it allows 25 brands that each have over a billion dollars in annual sales. whereas grocery stores typically earn maybe a penny on a dollar of sales. even then that profit relies on payments from p&g and other makers from premium product placement on store shelves. now, the late pay delay follows

similar moves from kraft spinoff, the snack food maker, drug giant johnson and johnson, beer behemoths a behan which makes anheuser-busch, ad agencies are myth, but given the size of the ads, they going to do? nothing. tracy: -- ashley: that is exactly right because they hold all the cards. there the big advertiser. thank you so much. tracy: premium product placement , say ten times. ashley: no. tracy: one big alliteration. it is a quarter till three time for stocks, as we do every 15 minutes. we had to the floor of the new york stock exchange. i will not ask you to as a premium product placement ten times. i am back to ask you what you think about coming up on june trading year. summer doldrums are you think there will be some excitement? >> well, i think we will get plenty of excitement here recently today on the rebalancing. after that i imagine the markets will come down and we will get a

snail's pace unfortunately. but taken as break and then hopefully resume at the end of summer. you know, do we always do and play ball with foxbusiness.com accused for. tracy: nice work. have a little bit of peace and quiet for a while. these markets have been a little scary. this up, up, up. >> i think the markets have been behaving fairly scarcely considering there is no real breaking news. i guess really sense the unfortunate boston terror incident. and outside of that the market shrugged everything off. only seeming to react for earnings as of late. i think that we will just have to wait for the second quarter earnings and third quarter earnings to really drive the market. i imagine the close of the year in the top. tracy: he think that debt ceiling will be an old story now? >> you know, every time that we

have some economic threat from the government the tax increases, sequestration, it gets factored into the market so fast now that i think that -- and justifiably so, i think people are focusing on performance and discounting what the government is doing because of your net worth has been so -- your network dispenser correct in pointing out. trusting the people that have the keys to the castle. tracy: pretty scary. premium product placement. >> premium product placement. tracy: there you go. [laughter] >> adelle like to show off. ashley: coming up, becoming the next corporate superstar. the currency director and best selling author started dozens of companies and has found just three rules to greatness. tracy: that's pretty great. drizzle take a look to some of the day's winners and losers on the nasdaq as we have to break. we will be right back. ♪

♪ tracy: so what really should companies be exceptional? our next guests noted down to three rules. joining us now, strategy expert cannot service director and co-author of the new book, the three rules, how exceptional companies think. we have to get right to them. >> only three. tracy: first. >> better before cheaper. if companies to try to figure out how they will create died -- value for their customers, the companies that deliver exceptional performance of a

long run do it by focusing on what we call mom price to mention values. make a big -- better, not cheaper. tracy: people want the better regardless. >> pretty much. tracy: your next one interests me. >> revenue before cost. as a great company capture value? if you create value for your customers but they to keep of the nonprofits are important obviously. and what we found is that great companies, exceptional performing companies drive superior profitability through higher revenue, not through lower cost. and that was a bit of a surprise. tracy: that means of selling more. >> either higher prices are volume more combination of both. tracy: your thought on the trend that companies are missing revenue but beating on the bottom line because their cost-cutting. >> a bit of apology. attempting to make the numbers. it is more important to make the plan. the plan is to deliver value for customers over the long haul. if you succumb to this short term temptations you undermine what is you're trying to achieve. tracy: a good lesson to learn because just because wall street

numbers. finally, your third rule. >> well, there are no other rules appeared. and that's kind of important. a lot of rules of thumb, a lot of myths, if you will that people used to run their businesses frequently. innovation is absolutely crucial and sometimes it is. you know what, sometimes it's not. in mergers and acquisitions. some people tell you their indispensable another study their poison. we found is they are both. the third rule is, do anything that you have to in order to adhere to the first two rules. tracy: be very flexible. less talk about who's doing it right. what companies are following your rules? >> twenty-seven in-depth case studies in the book that are drawn from a population over 344 that we look at and to a lesser degree of detail. three of them that kind of catch people's eyes. you have heard of merck, obviously, the pharmaceutical company. we call a miracle worker. abercrombie and fitch, another company that people are familiar

with, but smaller companies that you might not be on the top of your mind. hardened express which is a trucking company. based in the heartland. tracy: abercrombie and fitch, their stock could arguably be pretty expensive. >> absolutely. they're able to iran as prices because they have the customer experience, the brand, the fashions that want that. there customers. tracy: word is apple fall? >> apple has been up and down over its lifetime. we take a very long view of like the entire corporate lifetime. over the last ten years it will come to a surprised as anyone, they have been a real pair. would suggest the reason the performance has been so remarkable is they cannot -- you look at what they have done and they have adhered to those rules, better before cheaper. people don't buy them because they're cheap. they enjoyed both higher unit prices and remarkably higher volumes. tracy: how you apply these rules to start up? as a volatile business at home

making brownies. >> well, the good news about focusing on public companies in the u.s. is that there are lots of data. second, public companies in the u.s. don't have to be billion dollar organizations. reseal of companies in a database that a ten, 15, 20 million a year in revenue. that is at your corner dry cleaner, but it is not -- you don't have to be in the fortune 500 for these rules to apply. tracy: keep it simple. thank you. >> a pleasure. ashley: all right. maker's mark. hopes you think it's bourbon is geared to the very, very last drop. the whiskey company planning to use a state of the art runs process to extract additional gallons a bourbon from its wood barrels. tracy does that with their wine bottles. the new process is part of a plan of over $8 million in upgrades at the kentucky distillers. the latest move by the company to try and meet the rising demand. you may remember early this year the whiskey maker backed away

from plans to add water to a suburban to try and stretch out its supply. customers were outraged. the company said sorry for suggesting it. now they're trying to squeeze every last drop. tracy: isn't that the same thing? ashley: they're not watering it down. they're trying to extract all of the bourbon that they can. tracy: well, then i'm all for that. ashley: that sounds like a plan to me. tracy: all right. liz will take you through the last hour of trading. she will be joined by the global chief in jet -- invest a strategist. stocks are still a better value than bonds or cash, but countdown to a closing bell is next. ♪ i want to make things more secure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t

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liz: what might be increased mean it up when the markets might drop? onone very smart analyst decided to count the numr of times that the bubble was tweeted. wait until you hear what he found out and what he thinks that my really mean. and want to live like jay gatsby? welcome to billionaire lane in the hamptons. the biggest names in money. want to rub elbows with them? you are in luck. we will show you the mansions for sale next door. "countdown to the closing bell" starts right now. ♪ liz: we will get to the mansions and a minute. hi, everybody. the last hour of trading, the last day for the month of may. here i