first on fox business interview with peter barnes, says it is time to at least start talking about an exit strategy for the feds, details on that interview. more storms the midwest, so recovering from the disaster. and lawmakers lang at the president demanding talk against china on the cyber threats. those stories and more on this hour of "markets now." all right, good to have peter barnes in new york in the studio with us coming up. nicole petallides in a few minutes. a big story off the bat. dagen: the irs under scrutiny for spending $50 million in employee conferences between 2010-2012. now almost infamous dance video will be showing copious amounts of in the next fee minutes.

joining us from north carolina, patrick mchenry. we will have a hearing about this on thursday with the committee chairman, but we already have heard from the acting commissioner about this thing. already under control, already down 87%, so why focus on it now? >> we want to make sure this never happens again. they had these lavish spending we had unemployment nearly 10%. we have to make sure the policy changes so this can never happen again even without the public shaming that has seen some agencies need in order to be back in control of the taxpayer dollars. dagen: even senator chuck schumer has called this outrageous. last year we haddthe head of the

general services agency again resigned because of that lavish conference out near las vegas, the now famous photo of him sitting in the hot tub, so why hasn't there been even greater scrutiny on all of the government agencies and their spending, and how many more cockroaches are there to come out of the woodwork, not just at the irs? >> i am sure there are lot more, but we ha have to get to the bom of that. $820,000, ridiculous expense, but the irs conference was $4 million average price of about $1500 per person. deeply concerned and they did even follow the proper protocols on negotiating prices for this conference. even weddings you negotiate prices, and the government conference with taxpayer dollars we need to make sure that we

negotiate for the best rate for our taxpayers. dagen: until the government is significantly smaller, are we doomed to see this happen over and over again? >> until the government's power is checked. we have to remember the timeframe this stuff occurred. it was when you had a party in power in both the house and the senate with super majorities in the same party in the white house. it had unchecked power, so government bureaucrats thinking it could run amok. this is what my constituents bring up, they say that we are okay paying taxes as long as it is effective. they don't see that. dagen: isn't it more work targeting conservative groups begin congressional republicans coming up with information from two irs agents saying their

order came directly from washington, should we be more concerned with that? >> i think they go hand-in-hand, an agency who thought they could spend freely and have no oversight is also an agency for things they can target particular groups because they don't like their political philosophy. the point on these things is we need to know who made the directive and where it came from if it is targeting or the spending, we need to get to the bottom of it, don't need to jump to conclusions until we have the full facts of the case, no matter how long that takes. the american people deserve the real facts. dagen: patrick mchenry, take care. connell: moving ahead, stocks now with nicole petallides. rising interest rates actually might be a good thing for the stock market?

nicole: rising interest rates are one thing they should not be worried about. the major averages, right now the dow jones industrials are rising themselvvs up about one third of 1%, 42 points. the nasdaq and the s&p are both pulling back. ta couple key components. merck and intel. both are contributing. deutsche bank taking a look back in 1994 when interest rates were on the move, and we saw stocks on the move. the correlation saying as the wheels rise, the money is moving into equities, there's less worries, and so it is ultimately translating into good equities. right now you can see the 10-year well above the 6% line.

you look about a lot of things. back to you. dagen: thank you very much, nicole. connell: federal reserve bank of america president tom peter barnes we are approaching a time where the tapering of the bond purchasing program could at least be considered. dagen: what else did mr. barnes find out? he is here in the studio. peter: this morning we talked to dennis lockhart, he is joined into what i think the conservative campaign on the part of fed officials with ben bernanke. trying to start to prepare investors for the inevitable ending of all of the qe starting with less of it moving forward with the economy strengthening. it is okay, folks, we will start to take away the punch bowl at some point but we will start first by spiking it a little bit less.

take a listen. >> i think in terms of adjustments, downward adjustments we have been trying to position this policy as a flexible policy that could be used in either direction, be calibrated to how the economy is actually performing. so to translate tapering to downward adjustment, i think we are approaching a time in which it could be considered. >>peter: we will get a big repot this friday, he said at this very moment for him it would be premature based on the current data points he is seeing to start to taper, and he described it as a meeting by meeting kind of thing. he is very careful. i asked him under what conditions would you increase

the bond purchases because nobody was thinking about that. he said yes, we started to see deflation, they don't want deflation that we saw in japan or the japanese economy deflation or some sort of major policy shock problems out of europe. that might get them to increase bond purchases but it looks like they're getting ready to taper them, may be starting in the fall. connell: all right, let's bring in act extra merck to talk aboue interview. chief investment officer, mountain view, california. a little reporting on the interview with mr. lockhart, what is your view on this preparation? i am told we are getting set for something, we just don't know when it will happen. >> the folks at the fed don't

know it either. equities are up high. preparing the folks for one day. if you look at the inflation expectations down, folks are pushing to part-time jobs because they don't want to pay for obamacare. at this stage the only thing they do is target, and might even increase the purchases. get the market ready for what may come down. the market is pricing in an exit. no exit insight. connell: as you are making those we are showing where interest rates are. the three-year treasury, above 2%, which doesn't sound like much but we moved a lot in recent days and weeks. that is because people are preparing for time and interest

rates will be going higher. you are reading between the lines saying we are nowhere near that? >> part of the reason is i couldn't disagree more with the deutsche bank report you just said. this is not next 94, we cannot afford high interest rates. they would happens the government debt. we cannot afford to pay high interest rates. corporate america is in good shape, but our tax revenues coming up with reform on the fiscal side, we get high interest rates, we cannot afford high interest rates so we have to be very careful with how interest is going higher. now the housing market seems to be in recovery but not because prices are not up, but people are flipping homes again. we don't have a recovery on the base, we have financial engineering going a bond market that is in a very precarious situation. connell: your take has been your

negative on the u.s. dollar. is that it, or is there more to it? >> it is way out of itself. interest rates are good for the dollar. it is wrong because when interest rates go up, the bond market goes into a market that has priced in the dollar rally and infinity. they talk about negative interest rates which is not going to happen either. the dollar is expensive and gold is doing quite well because of manufacturing numbers are not good. with that there is a lot of whooshing by the fed in the market it will not materialize in the goldilocks scenario. we're buying gold and the euro. connell: thank you for analysis, thank you for joining us. dagen: get tough with china p at lawmakers want them to take a strong stance on cyber security.

connell: in six months, less than half of those uninsured if you can buy into it. dagen: more bad weather said to be on the way. they are picking up almost a buck per bbrrel. this is america.

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dagen: it is a quarter past the hour, stocks now and every 15 minutes. nicole, you're looking at homebuilders. nicole: we're looking at a group that has run up exponentially in the last 52 weeks.

another one up about 60% over the last 52 weeks. pulling back today as you can see down 2%, 3% respectively. but showing strength, construction stocks rose in april despite some weakness but they are in the rise. some manufacturing numbers which showed weakness and contraction more importantly, that has put a damper on many sectors including the homebuilders but overall a great performance center. back to you. connell: charles payne to make a little bit of money, here is charles. we will get a stock pick and talk about the market with the interview peter barnes just brought us. charles: omnivision, is a tremendous amount of upside for these guys.

i have a rear camera. dagen: you don't even want to know where my brain is. i was thinking a dashboard camera facing in for the intimate moments in the back seat. charles: connected straight to youtube. this company does those. it is amazing. i have them interior and on the grill, everywhere. 21% of mobile. security cameras everywhere. 50% of that market. this stock used to be a home run, i think it is worth choosing. dagen: connell kept looking over at me nervously.

connell: peter was just talking what his interview, this debate over when the fed is getting out. charles: my personal opinion the fed is making a huge mistake to play through the market and investors. they don't go up and down depending on where the economic data is. let the economy go to where you think it is okay and don't fiddle with it. the real mistake was on a 25 basis points at a time. when it is time to pull off, hold them off. say okay, economy, you're on your own, go. dagen: bunch of hedge funds blew up. charles: let's go back to basics. connell: on that note. thank you very much, sir. charles payne.

dagen: as lawmakers call for tougher stance on cyber security, we're going to show you how government and businesses are recruiting hackers to fight that threat. connell: the clock is ticking on the uninsured. more than half of those in need of insurance still have no plans. i turned 65 last week. the math of retirement is 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. i find out why ne out of ten walarge professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing

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>> 22 minutes past the hour, this is your fox news minute. the first death has been reported from antigovernment protest. on friday police crackdown on protesters angry about turning his temple; ike the area park into a shopping mall. the center of new jersey has died, a nine-year-old democrat with a world war ii veteran, multimillionaire businessman and senator in new jersey history. just a brief two-year retirement in 2010. california firefighters battling a wildfire north of los angeles now have it about 40% contained. at least six homes destroyed as

the wildfires have hit more than 40 square miles. dagen: thank you so much. connell: lawmakers urging president obama to get tough run china with regards to cyber attacks as reports chinese hackers gained access to the military's top weapons systems. dagen: with all that in mind, students at new york university are trained to become hackers themselves. david lee miller has more on this. what are these students doing that is so special? >> they are launching attacks against a simulated computer network. every wednesday night at the institute of new york. introducing real-world training. using case studies such as 2009 to learn how they broke into the system and what needs to be done

to prevent it from happening again. the programs hacker in residence, a former student who now owns a cyber security firm and says although it is a crime, students cannot break the law. >> it is very easy to stay away from those boundaries. we set up test systems. all of our testing is done on those systems. there's no way any of our students can harm th people oute of the university. speak of the students receive ethical training to know right from wrong when applying their newfound skills. connell: important when you think about it, so may the students recently once you have these skills and graduate from a program, are there pretty good job prospects? >> teams with hand on security and cyber terrorism and hacking are in great demand with the government as well. according to one study, a cyber

attack on the rise because of the dire shortage of security experts, so instead of the graduate having to chase down potential employers, it is the employers chasing down graduates. >> i have had tons of job offers, all i have to do is choose. >> there are bonuses to recruit people, it is very much they turned this almost into a cyber warrior type of feeling and element but a skill, job occupation that will grow, will not go away. >> graduates out of college to make a salary of excess $100,000 per year. you consider the barrage of cyber attacks, the expected spike many experts predict will take place these graduates have a great deal of job security. connell: good story from the newsroom, thank you.

dagen: one of washington's top cyber experts weighs in on bipartisan cries to toughen up the rampant cyber espionage. connell: more than half have no points to get coverage before the deadline strikes in the next six months. dagen: what are we going to do about it? harsh storm shaking things up for the yankees and red sox. and they look like girlie men and little bit. afraid of the thunder and lightening. and we will show you a real winner from the s&p right now.

>> dagen: we have a half hour left around here. here is what's coming up. the cost of getting covered, only about 2/3 of those who do not have health insurance right now still don't have any plan to buy it. even before the president's deadline coming up january 1. still cashing in on cars, auto makers rolling out strong sales numbers for last month. ford with dooble digit increases, chrysler as well. subaru announcing company records. b.p. making a huge investment here in the great u.s. of a. a billion dollar deal for more

production. connell: back to nicole with the new york stock exchange. >> i've been covering a top story and it's on the cover of the "new york post." you have michael douglas talking about throat cancer and he said he obtained it from the h.p.v. virus which actually has a vaccine and merck has it and there's a look at merck today. we're seeing merck move to levels we haven't seen since 2007 and this as merck sells this vaccine. it's in order to prevent cervical cancer and this is something that's been discussed for some time, whether or not you should not only vaccinate women but you should also vaccinate men and boys so this is something that we'll continue to follow but when you talk about vaccines for h.p.v., merck is the name that comes to mind. it's adding 18 positive dow points and glasgow klein also has an up arrow today.

dagen: less than six months, affordable care act will mandate every american have health insurance. buy it, get it, have it from an employer or pay a penalty but according to a report by insurance quotes.com, 64% of uninsured americans, almost 2/3 of them have not decided if they will purchase health insurance by that january 1 deadline. a former health and human services deputy secretary is here to weigh in on this. too expensive, most of them say. why is it going to get cheaper between now and january? >> it's not going to get any cheaper and all studying are showing it's going to be more expensive. the premiums are going up and it's a real problem. 2/3 of americans don't even have a plan but also don't know if they're even going to try. they're just reluctant to step into those waters. dagen: now, the government will provide subsidies, particularly based on your income level but particularly to low income

americans to go out and buy it through these exchanges and i wonder, though, if this doesn't begin to work out come january 1 and they can't get people enr l enroll enrolled. don't you think democrats will be lobbying for more money to make sure people go out and buy it? >> well, that's true and the democrats are talking about more money for implementation. the american people seem not to like this law and are not so inclined to give more money for it and the republicans certainly are not inclined to get more money for it. in terms of subsidies, it's harder to go up when some people are making $90,000 a year. subsidy levels are high and the democrats are saying it's not a problem but somebody is paying for those subsidies and the people are us. the costs are higher and subsidies are higher and we're all paying for more. dagen: what do you make of the health and human services secretary talking about money for the implementation of the health care law? she was pushing for it. congress pushed back. and then she basically went out

to health industry executives and non profit groups to try to get them to help, if you will, with this implementation which did include actual money. what do you make of that? shouldn't we be happy it might be coming from private sources? >> actually, i'm fairly uncomfortable and the laws of the land say if congress did not provide funding for something, you can't go out and solicit people to go and do this kind of thing. you have to remember that health and human services, where i work, is the biggest regulator for most of these companies that are in the health world not just insurance but also in the drug world and so if the health and human services secretary is going to say, hey, give money to this cause and maybe we'll look favorably upon the way we regulate you, that makes me uncomfortable. dagen: what about the blame going on? this is the centerpiece of the president's first term. democrats pushed for it and now it's not really working out even

the senator called it an impending train wreck but again, they're not willing to take the blame or even try to fix some of the things that are wrong so far. >> i love that senator who is one of the fathers of the legislation that calls it a train wreck but you have the the senate majority leader reid who are out there sort of blaming the republicans for this saying it's the republicans not giving enough money to implementation or not giving us more money for comblemation. a lot of money would go to the i.r.s. that a lot of americans are having problems with these days so they're trying to blame someone else but the people they're trying to blame are the ones who have been warning about all the possible train wrecks we've been talking about, all the flaws in the legislation. we've been warning all along and they're saying, well, it's your fault. i don't think that's going to fly. dagen: we'll see. the changes have to be in place in october and january 1, look out. it was great to see you. be well. next hour, while many are

complaining about obama care, meet a man who is prospering from it. he says you can, too. all right. connell: more strong sales numbers from the auto sector today. we have jeff block reporting live coming up on what is driving people back to the dealerships. dagen: and the cleanup from the deadly tornados last week. that continues, particularly those on friday and still more bad weather on the horizon. connell: then the lawsuit against apple over e-books. why is the government chasing apple when it controls such a small share of the market? we'll look into that all coming up on "markets now." and speaking of markets, here's some treasury yields for you. we went out and asked people a simpleuestion: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a t of us have known someone who's lived wl into their 9.

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

>> i have your fox business briefs. american capital trust is buying retail properties from g.e. capital for nearly $1.5 billion. this is the second deal between the companies in less than a week. global airline industry is expected to generate $12.7 billion in profit this year according to the international air transport association and that marks a 20% jump from the industry group's previous estimate. ford issuing a global recall of 465,000 cars to check a fuel tank leak that can result in

fire. models include the 2013 ford fusion, flex, explorer, taurus, interceptor sedan and interceptor utility. also the lincoln mkz, mks and mkt. ford will not have all the replacement parts until october. that's the latest from fox business network.

dagen: auto makers posting strong numbers for the month of may. g.m. having the biggest month since september of 2008. we love that. connell: pretty good. jeff has more on that story. hey, jeff. >> i'll tell you, numbers just keep getting better and better. we thought maybe trucks was going to be the headline this month but they're all the headlines. take a look at numbers overall and i'll tell you, it's the u.s. auto makers doing better. take a look at the regular numbers. g.m. up 3%, toyota up 2 1/2%,

chrysler up 11, ford up 14% and you know, v.w., one of the foreign auto makers down 1.3%. wayne is from naperville is out here. tell me your headline. >> up 34% last month. >> for this dealership. >> absolutely. >> what was the deleading the w? >> cruise and equinox. >> you have one over there somewhere? they're way over there. i don't know if you can find them. maybe go through the plants there. that was a big month for the impact s.u.v.? >> absolutely. >> and also small business and truck sales also, right? >> yes. the only thing, the trucks again was they're still a little hesitant as far as wanting to pull the trigger and make that 100% commitment. businesses coming up, they've got contracts, getting into a long term contract as far as increasing their debt, still a little hesitant.

>> you still sense some hesitance out here. you say why do you come out there on auto sales day to get the sense from the ground. take a look at stocks today. no serious appreciation. g.m. came in at about what they thought it was going to be. ford a little more in terms of sales. that's that new equinox, by the way. 32 miles to the gallon and had a real great month. cadillac had a huge month. best year to date, by the way, for cadillac since 1976. maybe etroit is back. connell: that's a good stat right there. good job getting over to the cars. let's do another edition of "stocks now". go back to new york stock exchange. our good friend joins us. >> thank you. connell: although we'll talk seasonality. first trading day of june. june stinks, too, or something.

last year was actually an up month for june which is rare but do you believe in that, that the market should be down just because it's that time of year? >> well, i think just by virtue of selling may, go away, most people don't think that june is going to be the good month, right? i think all in all, november through june is supposed to be the best eight months of the year. i think this year could be a little different for us. i think it could be extremely volatile. i'm not so sure it's going to be so great. we have the hindenbergh being hit. if you're a technician and you look at those things, i think you have a 77% chance of a 5% or greater correction after hitting that omen. i think people are going to be very cautious going into june. connell: bringing some technicals into it. earlier we talked about the debate of the market is when the fed gets out. do you want to weigh in on that

at all? that seems to be what's maybe driving some volatility that you referred to. >> i think so but that's sort of a double edged sword and i think that depends on which way you're looking at the glass, half full or half empty. there are a lot of traders saying if the fed exits, that means we're going to be strong enough to withstand them exit soing that's a good thing for the economy f. you think the only reason anybody is in this market because the fed is providing support, then obviously you're not going to be happy if they leave. personally i think it will be a very, very slow exit it and it won't happen until september probably at the earliest so i would imagine that's not going to be a huge factor going into june, anyway. connell: thanks a lot. >> thank you. connell: b.p. plans to invest an additional $1 billion in north slope area of alaska in 2016. it will bring two new drilling rigs to alaska. con c

conoco phillips announced a similar action. b.p. saying its investment could create as many as 200 jobs in the state. we have that out there today. apple moving closer to a new streaming music service for itunes. it's inking a licensing deal with warner music over the weekend, apple is, for the rights to the recorded music and music publishing. under this deal apple gives warner 10% of the ad revenue, more than twice what pandora pays the major music publisher. then the latest devastating tornados in oklahoma are still in the news. five tornado touching down friday, just 11 days after a twister categorized as an ef 5 tore through that town of moore, oklahoma. authorities now say 13 people are dead from the tornados on friday as well as the flash floods. dagen: those violent oklahoma storms then moved to the east coast hitting last night

torrential downpours, high winds. here is the latest from our weather center. >> hi. good to see you. that storm system you're mentioning that moved through parts of the northeast producing some areas of severe weathee still impacting us along the coastal areas from the northeast florida so very widespreadf areas. i do want to focus in on the next storm system. we have a brand new storm exiting parts of the rockies and ahead of it, we have those ingredients on place. humid air, very warm temperatures and also looking at wind shear within the storm system and all of those ingredients will be producing the next severe weather threat across nebraska, kansas, up into parts of south dakota. today we do have a chance to see thunderstorms develop out here that could produce damaging wind gusts in excess of 60 miles an hour, large hail and even some tornados. tomorrow we continue to see the severe weather risk but tomorrow take a look at oklahoma city. this area has been impacted multiple times just over the

last couple of weeks and yet again you're under a risk for severe storms. parts of kansas, missouri, expecting areas of heavy rain as well and even into texas and then mid week, oklahoma city again looking at severe weather risk and also texas in through portions of arkansas so we're looking at several days out here across the nation's mid section of more severe weather and i do want to switch gears a little bit because hurricane season officially started on june 1 on saturday and we're actually already watching an area of low pressure, showers and storms that could potentially become our next named storm system. a very low chance, though, just 20% out here regardless of whether it comes a named system or not, we're expecting heavy rain across florida the next couple of days. >> it's been rough here weatherwise. thanks. appreciate it. dagen: and we'll show you how professional baseball players reacted to bad weather. great. also apple in the cross hairs of the government over e-readers. the tech giant owns a small,

minimal part of this market. connell: then the losers today on the nasdaq. here's a few of them. we'll be right back. it's monday. a brand new start. your chance to rise and shine. with cenrylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadnd network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help u shine every y of the week.

>> moments ago -- i'm out. dagen: would you like to do the honors? i can't talk about baseball without guffawing at the girly men cowering the sound of

thunder. lori: that was the yankees-red sox game last night. heavy thunderstorm here in new york and i think reasonable reaction from the players. they were a little thrown off by the lightning and thunder. scary stuff. dagen: from baseball to real men, racing. naz c -- nascar. it's time for tony stewart to start winning and did he that yesterday, taking the checkered flag. that's his first victory this season which had been the worst start of his 15-wreyear nascar career so far. only five of his victories come before june and this gives him in position to make the chase. one of two wild card spots could get even better. number 14, mobil one, bass pro shops, rush truck centers. connell: anyone else you would

like to sponsor? we've been talking about the apple story we wanted to talk about. they're set to square off in federal court and the allegation is that the company conspired to make consumers pay more for electronic books. dagen: what are the details of the suit and who is involved? dennis neil is here with all of the details. dennis: ordinarily justice department comes after a company, you settle, you don't admit guilt and move on. but apple is last man standing here. originally the government filed price fixing charges. appear and he will five big publishers. now all five have settled and got this out of way. apple is the lone company going to this trial and saying, we didn't do anything wrong. capital c.e.o. tim cook signs the lawsuit bizarre. we're going to fight. but the trial judge has said she's pretty sure that apple will lose. i have two quotes for you. first apple c.e.o. tim cook saying we've done nothing wrong. we're not going to sign

something that says we did do something we didn't do and we're going to fight. look what the judge says. this is a district judge at a pretrial hearing. i believe the government will be able to show at trial direct evidence that apple knowingly participated in and facilitated a conspiracy to raise prices of e-books and a quote from steve jobs in the biography that was published after his death will figure in the trial. jobs is bragging about pulling off the great deal with the book publishers and he said, look. you want a higher price and you want to be able to compete with amazon so we'll do this and we want a higher cut. it has to do with the pricing structure. amazon says charge us whatever you want. we'll sell the book for $10. the publishes thought you're destroying our brand. along comes apple and says you price it and i'll take a 30% cut so they came out of the 12.99 price instead of 9.99 so the government got the knickers in a twist and thinks it's price fixing. i think theee-book price market

is soaring. this hasn't hurt any consumer. yondz what the big deal is but apple is going to lose if they're not careful here. connell: that's an interesting quote from the judge. think about that. dagen: if they do lose -- connell: more from dennis coming up in a moment when he's joined by cheryl. dagen: and the cyber threat as president obama and china's president address the issue later this week. a security expert says we need to get tough on the people's republic. this is america.

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cheryl: and on this summer

monday, the first day of june, the dau off to a good start. historically june has seen a slow spot in the last five years. dennis: and the cyber threat as president obama and china's president prepare to address the issue later this week, we have a security expert who says we need to get tough on the people's republic. cheryl: we have a guest who is prospering from obama care. blueprint health partners, how he's cashing in and how you can, too. speaking of cashing in, top of the hour, let's cash in on stocks right now. we have nicole on the floor of the new york stock exchange. >> we're taking a look here at a mafshth that's mixed and that's sort of what we've seen in the last couple of weeks. here's a look at the nasdaq and s&p 500, both to the down side. dow jones managing to squeak out ga

gains here. helped along by merck and intel, both of which have interesting news headlines and taking a look at a 10-year chart:if you' -- c. if you're feeling disgruntled, we're hearing from so many folks on wall street who say a little pullback is healthy. you'll continue to see the momentum to the upside. we needed goldman sachs raising their targets for 2013, 2014 and the year 2015 as well. so when you talk to a lot of the big guys on wall street, they still think the momentum remains to the upside. back to you. dennis: thanks very much, nicole. federal reserve bank of atlanta, the president there telling fox business we're approaching a period where cutting back on the fed's bond purchasing should at least be considered. peter barnes joins us from the studio, in longer in a box. hello, peter. >> that's right. dennis lockhart at the federal reserve bank was one of the fed officials who had not weighed in

yet on the question of tapering, whether or not the economy is getting enough momentum, enough job growth to start pulling back and eliminating some of that $85 billion a month that the fed is spending to buy bonds. well, he did finally. we have a chance to ask him this morning and he said i think we're approaching a period in which it could be considered. he said right now the data is not strong enough for him to go forward with something like that. and he said it's premature but he's watching the job creations numbers very closely for how he will make up his mind on this. take a listen. >> i expect that we'll see this moderate pace of job creation and the 160 to 175 range, something like that. above that would certainly, i think, be encouraging. below that would certainly give me a little pause about whether we have enough momentum going to consider it an adjustment to the

asset purchases. >> to lockhart, this is a meeting by meeting kind of thing. he's waiting on the data points like all the other fed members are. dennis: manufacturing index came out and fell beyond the expansion 50 level. that helps the case for the fed to not taper. >> exactly. so the markets are up today, probably because of the investors believe that this will give another data point for those -- to those who want to continue $85 billion a month. dennis: didn't he allow some -- >> oh, yeah. we went into a bad deflation cycle. we could increase. >> oh, yeah. they made it clear that bond purchases could expand to more than -- first time we heard possible expansion but that would be in lockhart's mind if we saw deflation, which we don't

want. we saw what that did to japan or if we had some large economic shock maybe from europe or something like that. dennis: thanks very much, peter barnes. cheryl: joining us for more on jobs, let's talk about what lockhart had to say to peter barnes. hopefully you heard peterrs report and his interview with the fed president. here is the thing. he was talking about jobs, that 160 to 175 range. you're looking ahead to the employment report on friday. you say that's a big market mover but what do you make of what mr. lockhart just told peter? >> it's nothing new relative to what the fed is talking about. if you think about the blied path the employment needs to be on, that they espoused as what they expect to drive their monetary policy, it's suggested that we need to see about 180,000 jobs per month being created and we know so far this year it's averages about 200,000.

friday's number will be indicative of whether we're on the path or not. if it's a number above that, it's likely that tapering would be, i think, a big part of a chatter at the upcoming meeting here in the middle of june and if it's below that like we saw from today's i.m.s. reading, bad news is considered to be good for the market because it improves the likelihood that the tapering program will be deferred. cheryl: we go back to the shapering program. that's one of the reasons we saw pressure on the global markets, not here in the united states but whether it was asia or europe, those markets were seeing pressure because of the feartapering. you've got now more and more fed officials coming out and saying we're going to look at this potentially this summer. what does that do to the markets which normally you have volatility through the summer months? that's history, any way. >> yeah. knee jerk reaction is the fear of tapering means the removal of liquidity being primed as the market forking -- forcing people

into risk assets. if the fundamentals are improving to the point where the fomc voting members are inclined to be taking away some of that stimulus, you would view that as good news. obviously it means that the economy would be self sustaining or more likely to be self sustaining and that should be good news for profitability which drive share prices. i would view any knee jerk, short-term turbulence to be opportunistic to put money to work but i do expect that to be a high probability outcome if they talk about tapering here, particularly as early as june. cheryl: we're looking at the 10-year, the 30-year right now. goldman sachs is sticking by the prediction in april that we'll see interest rates at 2 1/2% by the end of 2013. thaez a bearish call. they also see even though interest rates are going to rise that stocks will continue to rise. do you agree with that? >> i do concur. we had a story in our outlook 2013 piece that talked about a

better second half of this year built on capital spending revival, housing recovery and the consumer and i think as long as that continues to play out, which it largely has so far, then we think that's going to put pressure on bond prices. we had a 2.25% quarter for a 10-year. that should be supportive of equity as well. cheryl: we're up year over year 47% mark but all of this talk about tapering, about interest rates potentially going higher, what does that do to thee financial sector that has been the benchmark of our portfolios over the last year? more than any other sector.% >> cheryl, we've been bullish on financials more recently. we've added to the universal banks, the big money centers of the world but also had a position in the regional banks to benefit from a recovering

>> joining us from washington, cyber expert and global security lawyer, brian finch. thank you for being with us, brian. what should the president tell the chinese leader when they meet later this week?

>> i think he needs to tell the leader it's time for this unfetterred campaign against the united states, almost industrial in level needs to be rolled back. otherwise, there are consequences. the chinese at this point to borrow an expression from a sports caster, you can't stop them. you can only hope to contain them. they're just so good, they're so proficient at conducting these attacks that something has to be done ornery lying on technology and services to launch these attacks. there needs to be escalated to a lip -- diplomatic level. dennis: our officials say sternlly worded warnings and the chinese tonight like being told what to do. what actions can the president take to deliver that message? >> well, there are a number of pieces of legislation that the president can try to mimic or push congress to utilize in order to help blunt some of the chinese experts. chief among them, trying to stop the borders, goods that have stolen intellectual property in them. if you know something is coming

in that was clearly manufactured and developed as a result of theft of intellectual property, don't allow it in the country. don't allow the chinese to profit off of it. that's one specific example where the president could say, look. this is not acceptable and we'll not allow you to benefit from all of your actions. dennis: but if they can target that that easily, by now they obviously would. what kind of actual penalties could we take or impose on the chinese? isn't there some bill you talk about in something you just wrote where they don't want to buy certain i.t. equipment if it's a government contractor? >> that's right. there was legislation in congress that bars the purchase for use by u.s. government or chinese information technology systems. that was congressionally driven, really. i think the white house was caught off guard by that. you have an example of congress being ahead of the president and saying we're not going to allow chinese information technology companies to do business with a federal government. and knowing the size of that marketplace, that's something the president could certainly do and there's actually active

consideration right now to reform federal procurement to look harder and say, if there's questionable security risks, don't buy it. and that's clearly aimed at the chinese. dennis: seems like business is a great way to hit them now because they love business, the chinese. now, don't we do all of the things that we accuse the chinese of doing? can we be so certain that chinese hackers are at the doorstep of the people's liberation army has staged the attacks, because we're hacking in and finding out what they're doing? >> there's a different between the people's liberation army hacking into a fortune 500 cub based in the united states. imagine the outrage if the defense department was hacking into ashton martin or to sony or samsung to get their intellectual property. that's unacceptable. that's what the chinese are doing. they're going after commercial targets as well. i'm sure that's something we do not do and that's where it's hashing -- har kenning back to

the cold war days. >> thank you for being with us today. >> thank you. cheryl: it's only june but hurricane season underway, expected to be a potentially record year. we have a guest coming up helping the oil industry to prepare. dennis: and michael douglas' claim that oral sex led to his throat cancer is giving his stocks a boost. cheryl: justice department taking on apple over how much it charges you to buy an e-book. it's a great story with a little legal twist coming up in the media minute. dennis: first at this time, let's take a look at oil. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ]

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cheryl: you have the dow at 54

points right now but an even split as far as red and green right now. merck is leading. there's a new cancer trial with some positive results coming out for merck today. pfizer, coca-cola, boeing but the laggers are the interesting thing here. we were talking to mark about interest rates going up, all this talk about fed tapering, that's potentially a pressure point for some of the banks. time for stocks now with nicole on the floor of the new york stock exchange. news coming out on duncan donuts and the sandwich that's a heart attack on a plate. >> and it sounds delicious. it doesn't sound particularly healthy, however, it does sound delicious and there's probably going to be plenty of people who are ready to jump in here. duncan donuts is now serving a breakfast sandwich that is eggs, fried eggs and bacon split between a glazed donut. you have one on a croissant.

why not a glazed donut? how many calories will this delicious sandwich be? 360 calories. doesn't sound like that much. and it's actually less than the 390 calories for the turkey sausage sandwich it recently introduced for people looking to eat a little better. maybe they need a little lesson in healthy breakfast such as egg whites. that would be a good start. but this certainly sounds delicious. stock up about 20% this year. today a little higher. there you go. back to you. cheryl: do not have the donut at all. just saying. dennis: or just the donut and leave the other stuff. cheryl: or leave out the eggs and the grease and then go to the gym. dennis: there you go. time to make money with charles payne. >> people have a right to be

somewhat jittery and everyone is talking about the reaction to taper offing which is crazy. we're not talking about removing a spigot. just slowing it down just a little bit. maybe not $85 billion, $70 billion. key numbers for the dow, i think people should watch. 14,892. around there you might see selling to the down side pick up a little bit and then the number that i want to hold, 14,000. it's a lot below there but that would be the number, sort of the all-out panic numbers. there's a lot of room between it but you have to remember, we've had a heck of a move to the upside. those are the moving averages using exponential charts. dennis: you're thinking that stocks are going to go down before they reclimb? >> i've been hoping for a pullback for a couple of months. we're 20% cash right now. i'm not necessarily forcing it but here. you know, the thing i always try to distinguish on all the shows i do, people also have to make a distinction between the market

and what you own in your portfolio which is why i like individual stocks. i like to know the companies i own are taking markets share, they have pricing power, great management and if they happen to pull back with the market, i'm more of a buyer than a seller. overall i think people should be prepared for a pullback now. cheryl: i know that you're a stock picker and that's what you're so good at but if you look at overall sectors, it's surprising to see some that have not performed over the last year. utilities? what's going on there? >> utilities had a big year last year and i think what happened was that people were afraid and they were buying u 'tils for the -- u 'tils. cyclical socks are up more than technology stocks. i do like to look at macro stuff and technology is probably the undervalued thing here. nasdaq as we speak is getting slaughtered. the s&p 500 is down so that's a tough market. there's a lot of rotation into the safety and comfort of the dow but i don't think people should -- you know, don't let

that give you false comfort. want last 30 minutes of trading today should be a hum dinger so buckle up. it's a lot of room in tech but i don't know where that rotation comes. dennis: thanks very much, charl. see you later. cheryl: car sales shifting into high gear. jeff block is live at a chicago area dealership coming up. dennis: and two weeks after a powerball payout, still no winner haa stepped forward. details ahead in the fox news minute. cheryl: take a look at the world currencies. my mantra?

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>> at 24 minutes past the hour, i'm lauren green with your fox news minute. the court-martial trial is underway for apparently private. manning has admitted sending more than 700,000 documents to the wikileaks website. that classified information went into enemy hands. in turkey, the first death has been reported on the fourth day of anti-government protests. a taxi reportedly drove into a

group of demonstrators killing a 20-year-old man. there's a rebellion against the turkey prime minister's 10 years in office. it's been two weeks and still, no one has come forward to claim the $590 million powerball jackpot. one winning lottery ticket was sold near tampa on may 18. the winner has just 60 days to climb a lump sum payment or six months to claim annual payments. and those are your headlines. i'm lauren green. check your tickets, guys. dennis: thanks very much, lauren. michael douglas' claim that oral sex led to his throat cancer is spurring calls to vaccinate more boys and not just girls for the h.p.v. virus. the academy award winning actor tells the guardian newspaper his throat cancer was perfocaused b performing oral sex.

there's also an h.p.v. vaccine that's not marketed for boys. cheryl: well, it was a banner month for auto sales in the month of may with general motors having the best month in almost five years. who else but jeff is standing by in illinois to break down the numbers? you're on the front lines with these guys and things are going really well for them. >> that's why we come out here, cheryl. we want to get a sense from the -- you know, from the ground where the rubber meets the road. those are -- there's a chevy silverado truck that you can get about 9,000 back on right now in terms of rebate. cadillac, this month and the year to date cadillac, best year to date since 1976. trucks are big. ford f 150s up 31% for the month. this month, nissan and sub ru both had historic months. never sold any more cars than this month and leasing is back big.

chevrolet of naperville, why is leasing big? >> well, you can drive a brand new car for payments $200 or less putting men mum money down. the interest rates are 1%, residuals are high. it's a fantastic time to lease a vehicle. >> this is one of the reasons the sales are up and the sales include leases. take a lake-effect -- look at the percentages. anies ford was up, chrysler up double digits, g.m. up 3%, toyota 2 1/2% and v.w. lagging as well. people want to buy american these days. >> last month was our best month ever. 34% increase over last year. >> at this dealership. >> yes, sir. >> wayne, appreciate it. that's why we're here. that's where the rubber meets the road here in the heart landz of america. very good for the auto industry. cheryl: and where all the truck sales are happening. thank you very much. dennis: the health care debate.

we have a guest who is prospering from obama care. dr. weinberg ahead on how he's cashing in and mmybe how you can, too. cheryl: you thought the tornados were bad. hurricane season now getting underway. it's expected tore more active than year. we have a guest working with the oil industry in the gulf to prepare what could be a very bad year for them. this is america.

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dennis: time for reset. hurricane season underway. oil drying in the gulf could take a hit. we'll talk about congress is back and bashing obama care but we have a guest who says it's time to stop whining and start making money on it. we'll show you how and the government suing apple for alleged price fixing and e-books and the trial began today. details ahead in media minute. stocks now, nicole is live at

the floor of the new york stock exchange. what's happening, nicole? >> winning day on wall street. nasdaq and the s&p 500 pull back. i want to look at a couple of names on the news. we'll start off with best buy, the electronics retailer and they've been struggling and working on a trn around plan. everybody remembers whats to circuit city. they reported lack luster sales in the latest quarter. also take a look here at cracker barrel. you think of it as a store, also a country style restaurant. they, on the other hand, did very well. the stock is up about 4% and moved to an all-time high today after their quarterly earnings jumped over 30% and they topped expectations. they've had celled sales in traffic and gave revenue outlooks better than expected so cracker barrel a real winner while best buy pulling back some. back to you. cheryl: thank you very much. we'll see you top of the hour. well, severe weather in the midwest continues today.

fox news meteorologist has the latest from the weather center. janice, what a weekend it's been for weather. my lord. >> i know and it just continues, unfortunately, cheryl, for areas that were hard hit by tornados within the last couple of weeks. just doesn't end. the front that brought the tornados are part of the reason we saw tornados. it's now moving across the northeast in coastal areas. that should sweep off shore in the next several hours but we're still getting showers and/or thunderstorm. our next system is moving from the rockies, seeing shower activity across the dakotas and there's the risk today where we could see hail, damaging winds and yes, even isolated tornados across the high plains. look what happens tomorrow. more of a risk for bigger cities like oklahoma city, up towards kansas city and wichita. areas that were hard hit by two, three rounds of severe weather within the last couple of weeks so looking at el reno where we

had the devastating tornado that killed many. we're looking at a clear day today but tuesday and wednesday, strong to severe storms. they could see a repeat of what they've seen the last couple of weeks. several inches of rainfall on saturated ground and i also want to point out a lot of rain working into the southeast in florida. part of the reason for that, tropics. we're watching very carefully. this could develop into our first named storm of the hurricane season. it continues until november 30 and sea surface temperatures very warm to support development so cheryl, andrea is the first named storm and we could see her this week. back to you. cheryl: not the andrea we all know and love. this type of andrea we're not excited to see. >> no. cheryl: thank you very much. oh, goodness. three days, we're talking three days into the hurricane season and as you just heard, already there is activity brewing in the gulf of mexico. this area is where america gets

19% of oil, 6% of the natural gas and it's home to almost half of u.s. refining capacity. the american petroleum institute is preparing the clients, exxon, b.p., shell, chevron for what is expected to be a more active than normal hurricane season. joining me is the senior economist and you heard from janice that there's already activity in the gulf. we're looking off the coast of florida. that activity most likely going to go to the gulf. how do you prepare the major oil companies for what could be a very rough year? >> we monitor these storms very carefully but our first priority really is the safety of the staff of the off shore facilities. we have 20% of u.s. oil occurring. then he start to evacuate personnel from the gulf if they're going to be in the line of the storm and so it's all about precaution. taking those precautions if you're a refiner in the gulf, it may be that you reduce your refiny runs or your production

or shut it down entirely so that's the first line. so you look at the storm and you protect the personnel, we shut down operations and then you go back once the storm is over. cheryl: there's a half a million workers that are down in the gulf that are going to be in jeopardy. at the same time, these companies have to -- even despite what happened with the deep water horizon, still they have to balance getting produced oil and having drilling activity continue with safety. at what point do these companies pull back personnel and shut down the rigs? is it a possibility? >> it's an overabundance of caution. you'll see a lot of these facilities will be shut in or most of the entire gulf can be depending on the storm that's coming and the velocity of the winds and what the forecasters are saying. they have a very good safety record in terms of evacuation and protecting personnel and that is the number one priority. but once that storm, and even

phead of that storm, what we're doing is coordinating with primarily state and local officials, making sure they understand the distribution system, the fuel distribution system, making sure that we have accurate and they have accurate and timely information so that we can respond as soon as we can and get that fuel flowing. and that's a job that goes on all year long. it's not just during the hurricane season. cheryl: we all cannot forecast the weather. janice, one of my favorites, even says it's not a perfect science. we're always reminded of katrina. we're always reminded of rita and the amount of destruction to the platforms during the years and of course, the loss of human life. as we look at an active hurricane year, this year, are these companies doing anything different this year that they have not done in the past to prepare? >> oh, yes. we've learned important lessons after hurricanes rita, katrina, and important information about storms in the gulf of mexico, for example, that the winds and the waves can be higher and

deeper in the central gulf than, say, the eastern or western gulf. what we did as the american petroleum institute, went back and looked at recommended practices for operations in that specific area. and made improve manies to the operations so you do this each and every time if you're a manager of any facility. what could i have done different, better and we take those best practices and then disseminate them to ensure we have the safest operations we possibly can. cheryl: i hope we don't have to check back in with you this year. it was good to have you back on the show, though. >> thank you very much. my pleasure. dennis: and the health care debate. why waste youu time complaining about obama care? it's coming anyway. a guest says you can make some money on it. cheryl: and the most magical place on earth getting a lot more expensive. details coming up in the west coast minute. dennis: first take a look at treasuries.

>> manufacturing activity fell in may to its lowest level since june of 2009. latest reading for institute for supply management contracted for the first time since november. this as a pullback in business spending reduced new orders and production. real estate investment trust mid

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risk includes possible loss of principal. dennis: the health care debate. while many are complaining about obama care, our next guest says now is the best time of any for health care entrepreneurs. we're join by dr. brad weinberg, a partner in blueprint health. you're a young guy and you have an m.d. but you're not a practicing doctor. your group has put $20,000

apiece in startup companies all in the health care sector and yet, a lot of people say don't invest in health care because of obama care. >> now is one of the greatest times to invest in health care companies. i think we're going to see as many millionaires that were created by the internet era, the facebook and google millionaires and health care the next five to 10 years and people are putting that money to work. we've seen a 50% increase in the investment in digital health care i.t. the past year. over 1.5 billion went into digital health care in 2012 alone and we're on pace to break that in 2013. dennis: how can individual investors get a piece of this? can they put money in a company like yours? >> they can invest in individual early stage companies if they are credited investors and there's going to be a lot of new opportunities to invest in private companies which is what

we do. we invest in private companies, very early stage but there's also great opportunitieses to do that in the public markets as well. there's large companies that are really taking advantage of reducing health care costs and trying to take advantage of health care i.t., e.m.r.'s of the world where they can make the investments in public companies as well. dennis: let's talk about some startups you've been investing it. nuch surgery helps the surgeon train for a procedure? >> yes. this is an amazing application that was built by four surgeons themselves who are also developers. software developers. and they've walked through the process so that a surgeon can see every minute step that they need to do and their training position surgeons can see if they knew the steps. patients can use them as well. they can see the surgery that their surgeon is about to do on

them before they go through it. if they want to see it. dennis: i'm not sure i would want to know that having five surgeries myself over the years. how many things you're looking at are about making care better, getting a better imaging machine versus how many are making book keeping better? i have to abide by the new regulations so i need tools to do that. >> the majority of what we do provides physicians or care providers with more time to actually take care of patients and do the things rather than doing the paperwork that everybody is so frustrated with. for example, one of the companies that we've invested in, they help physicians know if they've washed their hands in hospitals. one of the biggest killers in hospitals is people getting infections. dennis: sounds an alarm or something? >> you have a band that you're wearing. the nurses, the physicians have this band. if you walk in and you don't wash your hand, it tells you. dennis: i'm luking it.

thanks very much for being with us, dr. brad weinberg and good luck. happy hunting. >> thank you. cheryl: and time for your west coast minute. federal investigatesors are looking into an oregon farmer's claim that genetically modified weed is growing in his field. it could have international trade implications as genetically modified weed is not approved for commercial planting. northwest grain has made it clear they don't want the product sold to them. b.p. is planning to invest an additional billion dollars in alaska. company plans to bring two new drill rigs to the state by 2016. conoco phillips also has plans to expand in the area. alaska rolled back taxes, making it more attractive for major companies to expand there. take a look at the stocks. overall market with the dow at 54, all the major names are trading higher. and if you are planning a family trip to disneyland this summer,

you're going to anaheim, california, get ready to pay a lot more. happiest place on earth just got more expense jifr. $92 for an adult ticket now. that's a jump of nearly 6%. the cost of a day pass has risen 28% since 2010. now, of course, the prices are going to be going up in disney world but all you californians, watch out. take a look at this. stock up 27% so far this year. right now it's higher by 22 cents. dennis: that stays us to "stocks now". let's go to the floor of the new york stock exchange. doreen is there and construction spending rose but only slightly in april, eh? >> that's right. i think, well, i wouldn't be surprised to see the housing starts today pulling back a little bit. but it doesn't really surprise me, you know, a good bit of this move has taken place the last couple of years. nothing goes up in a straight line, you know. it's all been about housing, housing, housing. i think that we have to remember that a lot of push in houses

came in foreclosures and refinancing. a lot of push we've seen is starting to slow down. we've seen foreclosures in the last month or so begin to really slow down. dennis: thank you very much. good day. >> that was quick. cheryl: ww don't mess around. flooding in the great plains. the region has seen more than double the amount of rain over the past two weeks and it is hitting grains very hard right now. let's look at the trading pits. phil is watching the trading futures there. when we have impactful weather, we start seeing the pictures and think, uh-oh. what's going to happen to the contracts? >> call it sloppy and cold. soybean planting is off to the worst start in 17 years. we're seeing a dramatic impacts not only friday but today. one of the most fascinating facets is old crop, new crop.

it was only the old crop we were worried about. prices will come down. not so anymore. both of those contracts have been on fire. in fact, we gained quite a bit on the new crop bean but there's still a $2 discrepancy in the prices. if we don't get the beans in the grounds, that means another possible $2 rally for the new price beans. corn is not that much better off. weed is underwater. karn corn is underwater. they're calling iowa the sixth great lake right now. a lot of fields are underwater right now. every day we lose is critical but you mentioned about the genetically modified wheat right now. we call it the zombie wheat that won't die from the weed killer. right now the zombie weed. the good news is south korean found there was no g.m.o. weed in there. that means that the wheat exports from the u.s. could

improve wheat is the only market right now getting a rally. cheryl: i'm glad you picked up on that. the nations around the world, what are we, the biggest wheat exporter in the world? that's our bread and butter in the united states. >> and it's the quality of wheat. you can't get it anywhere else in the world. dennis: apple's e-book prices being challenged in court right now by the government. phat story ahead in the media minute. cheryl: and then residents of one country that have just been named the world's best tippers. find out which nation waiters and waitresses like the most. dennis: take a look at today's losers on the nasdaq. clients are always learning more to make their money do more. (ann) to helme plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to imove my strategy.

and every step of the way.ice guides my learning because they know i don't trade like everybody. i tradlike me. i'm with scottrade. (announcer) scotottrade... ranked "highest in customer loyalty for brokerage and investment companies."

dennis: in media minute, anticipate -- apple you should the gun. manhattan filed charges against apple examine five big book publishers alleging they conspired to raise e-book prices. since then all five have settled. fifth and final one did so last week. apple c.e.o. tim cook calls the charges bizarre. maybe apple should reconsider. the federal judge in the case said at a pretrial hearing, quote, i believe that the government will be able to show at trial direct evidence that apple knowingly participated in and facilitated a conspiracy to raise prices of e-books. still it's hard to figure out who got hurt by this alleged price fixing. e-book is way cheaper than hard covers. meanwhile, fast and furious 6 winning the u.s. box office for the second week in a row taking in $35 million but the summer has the first official flop. sony's after earth, a sci-fi big budget film starring will submit and his 14-year-old son in third

place examine ta and da -- and taking in less than now you see me. cheryl: when it comes to tipping on vacation, the germans are number one. according to the survey by trip advisor, 69% of germans said they always tip while on vacations. americans came second with 16% of u.s. travellers saying they've had staff members asking them to leave a tip. rounding out the rest of the top five, the russians, brazilians and the number five, the french only tipping 35%. dennis: all this means is more germans lie about tipping than americans or british or anything else. f.a.c. capital under fire. our charlie is up next as steve cohen is the guest. cheryl: and energy c.e.o. will be talking to melissa and lori what it will take to give the

saudis a run for the money. to the magic kingdom, prices are rising. how much it will cost you. they'll talk about it. they have kids. they'll have big opinions on this one, i am sure.

>> good afternoon, i am lori rothman. melissa: and i am melissa francis. the inside take. lori: and weaker data not helping the market either. katie stockton nys of the recent decline is just the bulls catching their breath. melissa: saudis running scared. the highest level in two decades, saudi arabia oil minister doesn't want to talk about it. that certainly isn't stopping

us. what will take to give them a run for their money. lori: charlie gasparino faces for client withdrawals. let's get you updated on the market as we do every 15 minutes. let's check in with nicole petallides. nicole: we are seeing a market that has been mixed all day long, holding onto some gains right now up about 52 points thanks to merck and an hpv vaccine. intel with the chips for samsung. the nasdaq down half a%, also pulling back. on a day the last couple of weeks have been tricky, still year to date doing very well. the s&p 500 up over