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 14%, the dow

up nearly 16%. a look at electronics retailer best buy, today pulling back some, they worked very hard to remain competitive working on an intense turnaround plan and a matching program to entice shoppers to stop windowshopping at best buy and shopping over the internet on amazon and walmart. in the near term that would cut into their profits trying to do that. down 1.5% for best buy. melissa: the weaker than expected read has the bulls betting on the fed stimulus. in the pits of the cme. it is pretty interesting a weak economic read on manufacturing would be bullish for crude. >> i know, it is crazy. bad manufacturing news out of china was actually bearish.

the mantra behind this is the economy is doing better than everybody else but after that number, but will not be tapering off anytime soon. you can see it very clearly with the yen-$ relationship, going over $1 for the first time in four weeks. the other concern is a tropical disturbance down in the gulf of mexico. the national hurricane center said they have a 20% chance of becoming a tropical depression. right now traders are looking at that. another reason why the traders don't want to be short. brent crude is up a lot stronger than we are here. concerns of overseas production shutting down, there you have it, a big rally on oil and the products across the board. back to you.

melissa: how it's impacting natural gas? >> right now we are up a little bit. given last week's number was very bearish. everybody was bearish on natural gas. they key will be the storm in the gulf. if something develops, that will give natural gas a rally, but the weather is all over the place right now. melissa: very true. we appreciate it. lori: dennis lockhart telling fox business the fed needs to be very cautious when it comes to any kind of stimulus tapering. what a fascinating interview. >> that is right. dennis lockhart is not a voting member this year, but he goes to all the meetings and gives his opinions. he has not asked about this whole idea of tapering the $85 billioo per month in bond purchases to help distinguish the economy through lower

interest rates, so today we asked about that point blank and he said i think we are approaching a time in which it could be considered cutting back some quantitative easing. take a look. >> i still think we have two be cautious for an economy that has momentum, growing confidence. there is a case at this very moment being a little bit premature. i think it is meeting by meeting kind of thing. >> in other words, they're waiting for the data. receiving stronger jobs data, lower unemployment rate, getting momentum some want to do that as early as june.

he hinted later in the year. >> the good news is being interpreted as bad news in equities, interest rates shot right up. >> starting to take not spiking the punch bowl as much and getting ready to take it away. lori: your interview with dennis lockhart this morning, used coordinate effort that the fed really knows what it is doing and feels confident. >> i cannot confirm that. just trying to connect the dots. we heard it from the san francisco fed john williams speaking today saying the fed could cut bond buying, and then we heard the chairman himself, who doesn't say anything said in testimony a week or so ago we could start considering cutting back within a few meetings.

they all seem to be trying to prepare the markets for the day we know when a quantitative easing will start to be reduced and eliminate it altogether. lori: thank you very much, peter barnes. melissa: a possibbe tapering to the bond buying program on the heels of an report out the st. louis fed suggesting american households have regained 45% of the wealth lost during the recession. joining me today, moody's capital market with more on why the fed will adjust its easing. let me ask you first to interpret what you heard from dennis lockhart. is there an effort for the signal to put on the brakes? >> i think there is. warning the market not to expect quantitative easing to last into the 2014.

what they don't want to have happen is have the crisis rise to levels that are just too overly dependent on the fed continued downward pressure on the bond yield. melissa: aren't we there yet? it seems that is exactly what is happening when you look at the economy and most importantly the makeup of the jobs that have replaced the jobs are lost during the recession. we have lower quality jobs now. >> we may be getting better jobs numbers but it is geared towards lower paying occupations, 72% of the jobs created in the month of april, hospitality, leisure, that being said even if we took away quantitative easing, the fact that we have record levels of profitability suggests the

market value ought to be close to record highs in the average. what bothers the fed is if they don't warn the equity market the good thing will not last forever, there is a danger the equity market could go from being fairly valued today to perhaps overvalued. melissa: what if they could go through some sort of a crash in the market? how do they possibly stop the program without stopping major turning the stock market? do you think there is an easy and clever way out for them? >> there is no easy, clever way. we don't want to put too much faith in bernanke. look at what happened back in 2008 when many investors assumed the fed would not allow housing

prices to collapse, and yet they did. it is possible they may announce they will taper off quantitative easing. but if the equity market tanks, what is to stop the fed from reconsidering that announcement and instead say we will not taper off quantitative easing. keep adding to the return to it. melissa: isn't there an end of the line somewhere? >> the end of the line will be determined by the global marketplace. when we reach the dollar sink and foreign investors in the chinese divert u.s. treasury bonds, then the fed knows it has to stop quantitative easing pronto. melissa: thank you so much. >> thank you. lori: the automakers in the red, ford shares hitting a 52-week high of having the best may

sales since 2006. chrysler sales up 11%up %, year-over-year. up 34%. anmeanwhile conflicting economic signs out of china. the first decline in manufacturing in seven months. heavier weighted to state owned enterprises posted a slight increase. they show a drop in april and a weakness for the second-largest economy. nyse euronext having the acquisition of the company by intercontinental exchange, exchange merger was approved by special shareholders meeting in new york. nyse ceo says they will be working with rigorous to achieve the approvals required for the second half of the year. melissa: it is redemption day at

sac capital. lori: and bank of america shareholders glued to the new york state court today in a long-running fight over eight and a half billion dollars mortgage settlement coming to an end. melissa: and this service, the largest hotel doing away with delivery. lori: a look at metals heading to the break. up 64 points on the dow. gold up $16.30. back above $1400 per ounce mark. back after this. it's monday.

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lori: it is time to make money with charles payne. the soda maker after barclays raised the estimate. you have recommended this stock to us for some time. you are even impressed.

charles: the had a target at 55. you know their target now? $100. is it lyrically incorrect to say that is a manly target? then it is a womanly target. >> i don't even get what i'm trying to make a mac you're trying to get at when you say that. charles: looking at the upgrade, target 40, the target, this is like 100, from 55 to 100. melissa: he got lost on the way to target. it didn't stop for directions? is that what you are saying? charles: it is feeling strong. melissa: waiting for information.

nicolecharles: i like the stockt by didn't think 100. melissa: i talked a couple people who had it, but way too many people for my taste. charles: the part that is really upsetting me, i went to a restaurant this weekend, i am like european, you bring it out in the bottles. you know it is soda stream. melissa: why do you think the ball is going to tell you it? it doesn't mean anything. charles: some are just bringing out a link bottle. you're charging me a premium and you just casted up in the back? it is a really funny thing, this stock just doesn't stop i.

lori: is an easy anniversary gift. charles: they believe it is a gillette model. melissa: take your manly target and don't get lost. charles: you will still help me? lori: a key ion bank of america. nicole: dating back to the financials we had looking at bank of america 2.1%. this is a long-running spikes going on between investors and bank of america. now over eight and a half billion dollars settlement between bank of america and investors in mortgage securities of countrywide financial which they bought back in 2008. 22 institutional investors which includes blackrock, metlife,

they all entered into the deal, but others have said this is not good enough, pennies on the dollar, they are not agreeing to the terms at the moment. lori: thank you, nicole. time for the obama administration to get tough. meeting with china's top leader. melissa: it may be a small world after all. shock at disney, ahead. lori: check the dollar trading against the world currency. the euro trading up to the level of 130.85 against the greenback. we will be back with more after this.

>> 22 minutes past the hour, i am lorne greene with your fox news minute. oklahoma chief medical examiner says the death toll has risen to 15 in the tornado and flash floods. among the dead are three professional storm chasers. in texas a military judge allow the suspect in the 2009 fort hood shooting rampage to represent himself at his upcoming murder trial. he is accused of killing 13 soldiers and civilians.

he is paralyzed from the waist down after being shot by police on the day of the attack. the court-martial trial underway in the biggest leak of classified information u.s. history. he has admitted sending more than 700,000 documents to the wikileaks website. prosecutors say the cuts that information went into enemy hands. the attorney says he was naive but had good intentions. those are your news headlines. now back to melissa and lori. melissa: thank you for that. lawmakers urging the president to get tough on china with regards to cyber attacks. corresponding joining us now with the latest. catherine. spiegel each heavenly house intelligence committee mike rogers calling on the obama white house to make clear future cyber threats will no longer be tolerated by the u.s. government. china's rampant theft of

american intellectual property and the jobs that come with it are holding back our economy and impacting our competitiveness around the world. china needs to see real consequences for their actions. in advance of the summit between president obama and his chinese counterpart, defense secretary traveling in asia confirmed the u.s. and china have agreed to hold high-level talks on a regular basis. increasingly intelligence and military officials are bracing publicly what has been debated privately. the cyber attacks are rewriting the concept of warfare. >> does not quite as easy as the days when you could identify a navy across the ocean attack new or an army across the border to attack you. this is different. this is also one of these situations that puts some dangerous miscalculation is in

the stakes as to who was behind an attack. >> china wants reassurance they will not have offensive cyber attacks against iran take their program used on beijing, the chinese see a situation while the u.s. may fill comfortably using offense of capabilities, they don't feel china should have that right. melissa: thanks so much. one of the per existing in a hotel is room service, right? not anymore in one of new york's largest hotels. they are ditching a long time amenity, instead offering grab and go service. ordering outside food is another option but it must be up in the lobby. a spokesperson for the hotel cites declining demand for room service. industry experts say there is a way to cut cos costs operating 24 hours kitchen and wait staff

can be quite pricey. lori: little case at a plaza. $300 per night is pretty cheap for new york. want to visit the happiest place on earth? you will need deeper pockets. @he cost at disneyland, 10 years old and older has been hiked from $87 per day too much to begin with to $92. almost $100 for each kid. the price of a day pass has 28% from early 2010, a pass back then would have set you back just $72. all of these ppice hikes jumping 73% in the fiscal second quarter from a year ago. disney shares are trading up over 42% this year. if you have been put disney park

in anaheim or orlando, it is packed all the time. they have the price and power to do with. melissa: you just wonder how anybody can afford to do that, yet you cannot move once you're in the park. lori: one of the most important to benefactors to their quarter. s&p 500 after the selloff. her take in the level you may want to keep an eye out for next year to melissa: leaving the '70s in the dust with mark what the oil boom could mean for cutting our dependence. what it will take o actually make that happen. lori: here is your breakdown the industrial average. we will be back in just a moment.

.. this is america.

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melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange. nicole petallides is standing by. and, nicole, you have two companies involved in the year's biggest reit deal. >> right. we're taking a look here. the first one right here, mid-american apartments. you can see it is down 4.2%. this is the biggest deal as you noted, biggest reit deal. so we're taking a look at both mid-america apartment communities and they're agreeing to buy colonial properties trust. mid-america is to the downside. colonial properties of birm ingham is higher today. we're looking at this one, up 4.6%. it is all-stock deal. two multifamily property owners in the sunbelt. one in memphis, one in birmingham. the deal is expected to close in the third quarter. reits over all have had a strong start, the deals,

industry overall had a strong start, about $22 billion in else do as of late last week. now you have another really big deal occurring. of course still pending approval. back to you. lori:. melissa: nicole, thanks so much. lori: all right, the markets here today trying to claw back in the green after a rough performance over the last couple weeks actually but my next guest says this is simply a pause which will refresh the uptrend. music to bulls ears. katie stockton, a a chief market technician. great to have you. >> thank you. lori: characterize what we saw technically over the last two weeks and maybe a little bit earlier today with the earlier gains evaporating. >> this is shallow pullback so far. this is similar to what we saw in april and prior to that in february. and i don't think it will prove to be much different than that from a momentum standpoint on the downside so. i think it is a pause to refresh. i say that in part because the s&p 500 had broken out above a major resistance level to new all-time highs above its 2007 high prior to

this pullback. so usually the first pullback following such a breakout is a buying opportunity t also serves to relief what had become widespread short-term overbought conditions. lori: so the high on the s&p is 1687. today the s&p 500 is trading around 1626. we made some charts for viewers. what is your time frame like? what levels are you looking at here for markets to retrace that high on the s&p, that 1687? >> initial support for the s&p 500 is around 1600. of course that is a level that might have psychological significance being such a round number but to me on the upside there is potential for a breakout in 2012 to yield a target of about 1780. so to me the risk/reward is very favorable when you look at levels. lori: we have 100 points to gain on the s&p according to your calculations? >> over the long term i think so. lori: that is very bullish and exciting. what do you think in terms of sector strength and weakness. >> it was quite bullish, so

we had seen defensive sector rotation prior to may. utilities, staples and telecom services were outperforming. we saw a major shift back toward the more cyclical sectors of the market such as financials. even technologies and industrials, softed rotation into them. that was encouraging and i think it will continue. lori: so in terms of the particular stocks, i know you did some interesting graph work on apple. you say, even though apple has had some trouble the last couple months, falling off its high of 700 plus dollars a share down to around 400 at a weakness on you think that ample could be actually one. leaders of the nasdaq. where are we with those levels? >> looking at apple it had underperformed like you say for some time really. finally captured renewed positive midterm momentum. that is establish as perception of major indices with a such a large weighting in them. when you see the rotation back into apple with the

initial resistance being 525 i think that will help the major indices as well. lori: let me talk about fixed income. big breakout on the 10-year yield. this is the elusive selloff people wonder where it is for so long? >> i think so. we've seen a shift into the fixed income markets 10-year treasury yield exceeded resistance at its march high. the next resistance is around 2.4. we've seen breakdowns in the related bond etfs. so to me it is a real shift we've seen potentially long term. lori: longer term. so not 2.4 right away on the 10-year note? >> that's right. several months. lori: months. katie stockton, thanks so much. great to have you. >> you're welcome. lori: okay. sac capital is under fire as you know. charlie gasparino is next as steve cohen's hedge fund braces for these redemptions. melissa: let's get another look at the 10-year treasury as we head out to break. we were looking at 10-year treasury. with all the fed speak going

on it is unchanged at 2.13. we'll be right back. everybody ht investment objectives, ideas, goals, appetite for risk. you can't all'. it doesn't. that's crazy. we'rell totally differe. ishares core. etf building blocks for your personalized porolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackck. call 1-800-ishares for a prospectus, which includes investment objectives, risks,harges and expenses.

read and consider it carefully before investing. risk includepossible loss of principal. >> i'm jo ling kent with your fox business brief. glencore, strata and blackstone group reportedly potential suitors in rio tint toe's canadian iron ore business in canada. that is valued at $4 billion.

pandora's shares experiences static on the news. the radio company will face new competition from apple. "wall street journal" is reporting apple signed a licensing deal with warner music group offer the weekend for the rights to recorded music and music publishing. >> on the upside, investors are bullish for cracker barrel after the operator posted a 30% jump in profits in third quarter as higher prices on the menu helped increase sales. moving forward cracker barrel raised its full-year forecast. that is the latest from the fox business network, giving you the power to prosper

melissa: so even amid a wide-ranging insider trading investigation people still want to work at sac capital. so what is embattled hedge fund telling new job applicants? charlie gasparino is here with the latest as sac bryces for withdrawals. >> massive redemptions.

we've been reporting this for weeks. melissa: people still turning in job applications. >> i find that fascinating. maybe just me. i get some of the stuff on the twitter page. people are e-mailing me on sac capital.page applying to here is what they're essentially saying. the hr department at sac saying don't worry about it. whatever to be is to be. if worse comes to worse, i don't know how they know what worse will be, clearly the hr department doesn't have an open line to the u.s. attorney's office which is doing a massive investigation into this but anyway, this is what they're telling them, if worse comes to worse we'll manage our own money. we'll be a family office. send your application. you may get a job. i would point out this though, if sac does convert into a family office, i phink that is fairly likely scenario, we at the fox business network were first to report how they were drawing up plans in anticipation of these massive redemptions. today is the redemption date. we reported earlier they would get a lot of redemptions. maybe more than half of the

outside money in the firm. i think it is something like $5 billion is in sac capital. i think it is a very good likelihood much more than half of that flee in the next couple months. there schedule you can pull it out. at that point, barring anything else, and these other other things, that what regulators might do to sac capital, but barring that, likely sac will cease to become a business. manage essentially its own money and manage steve cohen's fortune, $9 billion fortune he amassed at least on paper one of the greatest traders of all time. if that happens though, think of this way, they don't get fees from outside customers, right? >>. melissa: right. >> that is 50% of the profits, 3% management fees. the highest bar far of any hedge fund there will be a radical down is seeing of sac capital. they will have to sell a lot of stock. close a lot of offices and lay off a lot of people. if you're applying for a job thinking they will be a

family office and they're will be wonderful chances are you won't get a job. melissa: is that the worst-case scenario in your opinion. >> no, that's a great point. they're saying that is the worst-case scenario. the worst-case scenario is what regulators and what the justice department might do. there is concurrent investigations going on here. a civil probe by the securities & exchange commission. which could charge steve cohen, bar him from the industry for life. could impose another fine on sac capital. melissa: right. >> they settled one big case. there are other cases out there. and then there's a u.s. attorney's probe which is criminal in nature as we reported could be any where from charges against steve coen had, charges against the firm, in recalls it of what went on with matthew martoma, the former portfolio manager that sold, been indicted for selling stock of drug companies. that, to potential rico as you know, racketeering charges which could really be damaging to the firm. a rico charge --. melissa: that is worst-case scenario. >> that is like nuclear war,

it puts people in jail for 30 years if that's what they do. it could impose fines that would eat that $9 billion, that cohen has and the other guys have, his employees have in the fund could eat that pretty quick if you look how rico charges add up. that is the worth case scenario. zack is kind of glossing it over but, you know, i will say this about sac capital. this is what astound me about them. i've been dealing with these guys for two years with their pr firm. is how much they underplayed this thing. i can't tell you, if they were just spinning me all these years, telling me that this isn't that big of a deal. there were times where they out right misled me. i can't tell if this was spin --. melissa: really believed it. >> that insane and they believed it. i can tell you this. i think it is a combination of both. i remember when i covered john thain's inglorious exit from merrill lynch when i was at cnbc. ii was really interesting. i was reporting for weeks he was on the outs with, like when merrill lynch was being mergee with bank of america.

john thain actually thought he would take over for ken lewis. i was reporting for weeks that he wasn't, he was on the outs with ken lewis. i don't think he had any idea. by the way he found out he was being fired from me on tv. there is a degree of that here at sac. that cohen, that steve cohen himself is so walled in by, this is my opinion. but based on some level of fact. sort of surrounded by a bunch of lawyers and yes men he didn't understand the severity of what was coming at him. lori: too insulated? >> it seems that way with the hr department telling his kids this. you know the worst-case scenario is really bad stuff. it is not, that you just have to lay half the workforce off and we manage our own money. lori: so interesting. thank you, charlie. melissa: charlie gasparino. lori: as we do every 15 let's check the markets. doreen mogavero is on the new york stock exchange. doreen, we started at a high and some earlier gains have

dissipated. we know a couple weeks have been the little tough, rough waters for equities markets. what do you see going on? >> here on the floor we're paying attention on the vote on the new york stock exchange ice merger which obviously as approved. looking at drug stocks and a lot of financials and tech stocks. energy stocks as well are doing very well today, let me ask from a personal perspective what does that merger mean for you and your trading business. >> i think we're all happy to here the floor will be a permanent fixture of the new company. that is very good. there re no plans for anything to go electronic. so, and i think the stock price is obviously reflecting that it is a favorable deal. i think always adding new product lines is always a good thing, you know. people here are pretty energized and excited about the deal. lori: doreen, thanks for sharing that with us. we'll see you soon. >> bye. melissa: the u.s. energy boom getting under the skin of the middle east's most influential oil men. why saudi minister alley

naimi is done talking about fracking. lori: fewer seats equal more profits, airline equation that has the industry raking it in. here are the winners and losers on the nasdaq. intel, dollar tree stores, a broad range of stocks adding to gains on the nasdaq back in a moment. this is america.

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melissa: are the saudis getting hot and bothered? america's shale boom is pushing u.s. oil out put to the highest level in two deck case but saudi's oil minister doesn't want to hear about it. just listen to mr. ali al-naimi, response at

friday's opec meeting. he said, quote, why are you all excited about all of sudden about shale? you know why? because you like to chitchat. you're an agent of disturbance. leave us alone and leave all these issues. we had enough of shale oil and talk of shale. please talk about anything else. then he switched from speaking in english to speaking in arabic. chris faulkner is the ceo of bright link energy, a company that specializes in discovering and extracting oil and gas here in the u.s. what do you think of minister naimi's response? to be fair and i've been to many opec meeting and i've been abused by the minister myself. he likes to get out there to beat up on the reporters in front of him, but even for him that is testy and bothered. do you think they're threatened? >> i was in the middle east all last week. i can tell you some level they're worried. they're worried what happened between 2005 and 2009 with katari natural gas no longer needed to be imported into the states

they're afraid it will happen again with oil. more importantly we're producing 7.5 million barrels of oil a day. they're at 10 1/2. we're on the road quickly to surpass them as the biggest oil producer in the world. that is feather they want to keep in their cap. some way he is jealous of our 20% increase in production over the last year and saudi themselves has to rely on oil to pay their budget and pay for most of what they spend in that country. melissa: yeah. >> i think they're finding themselves less relevant and opec in general having less control over oil that they have begun to enjoy the last three or four decades. melissa: let me take the other side of the debate for a moment. we're far from being totally energy independent. even if that happened there is demann for crude oil all around the world. asia is the biggest market. they're not discovering new production as readily as we are. isn't there still a huge appetite for their oil? >> there is a huge appetite. i think the folks, involved in opec, should be concerned are angola and nigeria. those countries and algeria,

that have light sweet crude, like what we're producing here in the states. there is still a need for heavy crude but by no means are they becoming irrelevant themselves. i think what is happening is, this world oil puz seal puzzle is starting to shift and america is getting more power in the oil game. that is what earns can them, because of fracking. that is why he doesn't want to discuss fracking. they don't utilize it there. they don't need it. they have conventional resources. i think in some ways they are becoming more and more threatened and that is apparent. melissa: that's true. when mr. naimi was asked about alternative energy or battery powered cars and wind energy he laughed it off and good luck with that. let me know how that works out with you guys. this time around his response, i say from experience is very different. i mean he does seem like this is more of a real and substantial threat and there are a lot of economies in the middle east that have not developed a plan b. even, the saudis have tried

but come up with another industry that could support their economy in the same way, right? this would be a real crisis for a lot of countries. >> they don't have one. most of these countries over there don't have another plan. they have an economy built on one commodity. oil and or natural gas or boat. that is big concern. saudis outspend themselves. they have to have $85 oil to meet production needs. they can't turn down oil to $60 someone threatened, we could have stop the shale boom if we had cheap oil. the reality they can't afford cheap oil. they have to pay their own bills. united states and nigeria would have --. melissa: hang on. is that really true? what is their wellhead price? isn't only like $19 to get it to the surface in saudi arabia? what price do you think they could drive it down to flood the market? that is the only option. >> well the cost is not the price it costs to deliver the oil out of the ground or to find it.

real cost what they need for their budget, to pay for all the bills of that country. melissa: that's a great point. >> if you look at budget they have today, they need $84 a barrel to pay their bills. they will not go down to 60 or $45. they can't meet their own obligations. they're stuck in a catch-22. $85 oil we can make money all day long at it. melissa: that's a great point. thanks for coming on the show. real interesting stuff. >> thanks, melissa. lori: that was funniest discussion on tracking i ever heard. well, you know, you need crude oil for jet fuel. that's for sure. talk about some of the news out of the airline industry. airline earnings will be 67% higher this year than they were last year. according to the international air transport association which upped expectations by 20% from three months earlier. the group is saying, carriers will likely generate a net income of 12.7 billion this year compared t 7.6 billion last year. so what is causing a jump? well, not adding seats with airlines set to carry a

record three billion plus people here, limited seats means the average occupancy will be lifted to a record 80.3%. melissa: i feel like the average is a lot higher than that planes are packed. they're packed. lori: when they land the theme of the show, overcrowding. >> average of 84%, i have been on a flight where there is an empty seat for so long. they cut some flights. amazing to me anything is that empty. lori: that's what they're saying. airlines are profitable. which may mean more competition for ticket prices which might benefit us with air fare coming down. we'll see. what is coming up? melissa: tonight on "money" we have congressman louie gohmert of texas. he will join me to discuss all the latest details in the irs scandal. have you heard about $50 million spent on employee conferences in the last two years. lori: did you see the videos? melissa: $1600 video of employees learning to dance. there is lois lerner's $170,000 paid leave. she is at home right now,

probably watching this show i would think. for $170,000, just on paid leave. why? why? 5:00 p.m. eastern right here on fox business. we're going to delve into all that. lori: coming up next hour, a couple hours before the closing bell so you want to keep it here on "markets now" as we guide you through, as the housing recovery takes hold, hedge funds are getting out and flippers are getting back in. what does the smart money know that the average investor does not? tracy byrnes and ashley webster, asking industry experts when they take you through the next hour here at fox business. stay with us. it's monday. a brand new art. your chance to rise and shine. th centurylink as your trusted technogy partner, you can do just that. with our visionary cloud infrastructure, global broadband netrk and custom communications soluons, your business is more reli.

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ashley: good afternoon, everybody, i'm ashley webster. tracy: and i'm tracy byrnes. stocks struggling for gains on disappointing manufacturing data but, it could mean the fed won't be so quick to taper. our very own peter barnes sat down with one fed insider who says increasing

bond purchases could actually still be an option. peter is here!. ashley: in person, in the flesh. we look forward to that. another scandal however brewing at the irs. this time the agency is coming under fire for reportedly spending $50 million, of, oh, yes, your taxpayer money on employee conference. >> crazy. as the housing market continues to recover, we're seeing a lift in who is investing. hedge funds are getting out while average investors are getting in. what does the smart money know that we don't? ashley: time for a look at stocks. nicole petallides on the floor floor of the new york stock exchange. stocks are off the highs of the day. it has been choppy, hasn't it. >> that is really the action we've seen over the last couple weeks or some we've been pull being back some. today a mixed bag, s&p and nasdaq pulling back while the dow jones industrials managing to eke out gains, sitting at a level of

15,162. still holding the 15,000 mark that so many bulls out there on wall street are loving. in the meantime though you do have commodities higher, the dollar is lower and as we noted the s&p and nasdaq are pulling back. i want to look at two reasons why we're seeing the dow jones industrial average to the upside, merck and intel, both which have headlines, both which are contributing. merck is contributing 14 positive dow points and intel six positive dow points. the reasons why, merck, now, jumping because of what we're hearing about the hpv virus and vaccine they have to fight that. hpv gained attention based on comments made by fame must actor, michael douglas. we're watching intel as a top performer today as well. intel, this has to do with samsung chips, intel chips in samsung products. one other thing i should notice the melanoma drug shrinks tumors in 38% of the

patients. this is a big deal. when you talk about tumors and melanoma this touches everybody's life, cancer, to some extent. both of these names are doing wellland helping the dow jones industrials to stay afloat. back to you, tracy and ashley. ashley: nicole, thank you very much. appreciate that. up 51 points. hanging tough on the dow. tracy: federal reserve bank of atlanta president telling our very own peter barnes that we're developing a period of tapering the fed's bond buying purchases could be considered. peter in the statute studio now. welcome to new york. >> i will come to new york more often. everybody treats me so nice. ashley: cookies in the green room. >> cookies in the green room. i have to land a big e about. we got dennis lockhart this morning, president of the federal reserve bank of atlanta. this is the one person inside the fed that has not weighed in on the issue of tapering, starting to slow down or cut back on $85 billion a month in bond purchases that the fed has been doing to help keep the

economy stimulated and help keep interest rates low. well, we asked him this morning and he said, yeah, i think we're getting, approaching the point which we could consider that. we've heard that that from other fed officials that maybe as early as june, the meeting in a couple of weeks they might do that. ashley: yeah. >> he's not ready to go there just yet. he said june would be probably premature for him. i asked him, what are you waiting for? he said well, i'm watching jobs. take a listen. >> well the most prominent ones of course would be, related to employment. so, the jobs number and unemployment rate, i don't understand that, i look at a range of other indicators of health of the employment markets and try to draw an overall picture. >> so once again we hear one of these fed officials saying it depends on the data. you know, we will respond to the data and he said, quote, meeting to meeting. tracy: i'm sorry.

ashley: no, go ahead. tracy: what does tapering mean though? take it from 85 to 65? 85 to 50? ashley: yep. tracy: what does it mean? >> that you're right that is the $64 billion question. 85 billion. ashley: 85 billion. >> one fed bank president, jim bullard said, perhaps the fed should actually give us some metrics. tracy: yeah. >> for every .1 of a percentage point decline unemployment rate cut back by 15 billion. ashley: at least that would give us something, some clarity. that would be interesting. >> as you said, tracy, in the beginning, dennis lockhart also left the door open to possibly increasing purchases. ashley: yes. >> under two conditions. one, deflation, because the fed doesn't want to see deflation. ashley: yeah. >> and two, an economic shock that might help cause a recession. so, he wants, he wants to leave it on the table. tracy: on that notion having little markers. then the market will say, okay, employment fell this that means we're cutting back this, we get it.

won't be quite a shock. >> rules-based, policy making. ashley: don't count on it. way too clear. tracy: my utopian world. thank you. good to see you. ashley: peter, good to see you. >>. >> thanks. ashley: does today's weak economic data mean good news for the market? seems that way. does it cool off the tapering talk? joining us john kenneally. john, peter is here talking with dennis lockhart. what is your thoughts on the fed and their efforts to perhaps taper on the bond purchasing? we hear all the time it is based on the data. what is your sense when they will seriously consider this? >> no, i mean i would like to weigh in on the comments about the market wanting some metrics from the fed. i think that is a spot on comment. ashley: yeah. >> a lot of volatility we've seen since the bernanke q&a a couple weeks ago has been related to the fact that we just haven't gotten any metrics from the fed on what they're going to do or when they're going to scale back.

we have the metrics on the rate side. we don't have them on the qe side. as a result you've introduced volatility into the markets that the fed probably doesn't want to see. ashley: as peter just said, there was the suggestion perhaps linking it to the unemployment rate, perhaps every .1 it comes down reduce bond purchases by 15 million, whatever it is. it is a smart way to do it. it would reduce the possibility of a big shock to the market. >> exactly. data dependent is the way they're going. and, president lockhart is joining, is another one of the members of the fomc of the 19, about half of them now say they're pretty close to ending purchases. that includes bernanke and yellin. bill dudley is not quite there yet. over half of them are. that comes down to what are they looking for? if we get a job number on friday that is 7.2% unemployment rate, is that enough? what if it takes back up to 7.7? i think market would benefit from some metrics.

i don't think we'll get a change from the fed here in june. that is probably too soon. >> yeah. >> probably right now looking more september. i think before the bernanke testimony it was december. the market adjusted back three months. i would be very surprised if it was at the june meeting. ashley: john, we got latest ism. contraction, construction building not good at all. still this underlying weakness in the economy. what is your outlook for the rest of the year? >> we continue to see, the current quarter is running in a little less than 2%. that is about where we see it for the year at about 2%. the recent inflation readings have been below the low end of the fed's unofficial target range. so they are more concerned about deflation which is falling wages and prices but not quite. so i think, you need to see a sustained and substantial improvement in the economy from the 2% run rate that we're at now. i just don't see that until later in the year. of course the fed has to act well ahead of that. ashley: right.

>> maybe that september time period is really what they're talking about now. but again, it is data dependent. ashley: so much these days especially from a corporation's point of view, john, is dependent on the global economy. we continue to get weakness out of china. what is your sense when we look at the global economy? >> i think china people are still getting used toothe fact that china grew 10 or 12% between early 2,000s and 2008 and they thought china would continue that once the global recession was over. that's not been the case. so china is coming in at 7 to 8%. europe the best you can say there it stopped getting worse but it really hasn't gotten better. i think europe has problems with their financial transmission mechanism. getting a it the money ecb put out there into the hands of small and medium-sized business who do all the hiring in business. there you best you can expect in europe is flat growth. emerging markets are kind of trailed behind by china. so i think you''e getting decent global growth.

no recession certainly but not getting that boom and i think that's enough to keep a lid on u.s. growth because we have a fairly large export oriented economy. half of our exports go to the fast-growing emerging market economies and you're not seeing as fast growth there as you have in the past. ashley: right. very good. we're out of time already. john kanaly, thanks for joining us. we appreciate it. >> thank you. >> redemption day at sac capital. how much money will flee the troubled hedge fund? what does that mean for the government's criminal investigation into the firm? ashley: as housing market continues to recover we're seeing one group of investors get out of the landlord business and another get in. we'll have details behind the so-called housing flip coming up. first as we do every day at this time we'll look how oil is trading. the dow is picking up pace up 77 points. oil too moving up, 93.46. up a buck 50 on the day. we'll be right back.

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tracy: that time of day. got to make some money. charles payne is here. this hour he has a stock pick that remind us of the best invests are the things you understand and love and i guess eat. >> and eat. tracy: what have you got? >> how many people watching the show, oh, man, i want to find me a nice hot technology stock, the next smartphone, the next tablet? people never really say, you know what, i will pay my investment on grits, saw mill gravy, buttermilk business cuts, country fried steak. they never say they will do that. how many people ate at cracker barrel over the every day last three years and don't own a piece of the stock? ashley: people that live in the south, if not more. >> i guaranty it. we've done the stock twice. absolutely remarkable to me. this is a stock from january 2009, it is up 432%. tracy: wow. ashley: a lot of grits.

>> that is like four times the market. imagine that for a minute. tracy: is there a cheer cracker barrel? isn't that cheese? ashley: that is supermarket cheese. that is the restaurant cracker barrel. tracy: but they have cheese in the restaurant, right? i have to presume, why --. ashley: big part of that irmenu is southern cooking. tracy: clearly i have never been. >> i have had ba on old, two to the store. they have a story front with a lot of cheat keys and stuff like that. stuff you con buy. it is good home style, southern cooking. ashley: there is line at restaurant every sunday morning. >> that's true. ashley: out the door. >> absolutely. it goes to show you, my frustration with some people out who missed the rally, there's a report out, people not even being 50% where they were when the great recession began. ashley: yeah. >> for the most part it is people who stayed out of this rally. but how many of those people do eat at cracker barrel every day? do love it and old 10 friend and family members? they became unpaid

spokesperson for the company and never thought for a second, a second i should own a piece of this thing? i tell you looks pretty good. almost every quarter prices are up. always look for a company that can raise prices. same-store sales are up 3%. for the retail part, tchotkes, part, stores are up 5.5%. ashley: tracy is trying to figure out what a grit is. tracy: is it bad that i don't know? charles payne. ashley: somebody's liking it. tracy: is it like risoto? that is not the italian version? i don't know what you're talking about. ashley: no, italian grits. this is quarter past that is quite a concept. quarter past the hour. let get back down to nicole petallides on the floor of the nyse. you're watching automakers today. >> you still think of about grits and my cousin vinny and anybody that saw the movie knows what i'm talking about. expectations year-over-year were quite stellar 6.5%.

that is what they expect overall sales. we're seeing automakers doing real well. toyota is pulling back. general motors, for example, posted a jump of 3% in may. cadillac sales, unbelievable numbers. 40% gains year-over-year for the hot cadillac? unbelievable. toyota sales, 2.5% last month. and that was right in line with the estimate. wanted to also talk about ford in particular. the f-series pickup which we know is truck of the year and it is a bug seller. how about the biggest seller, best may for the f-series pickup since the year 2005? so shares of ford did hit a 52-week high today. have been surging about 14% year-over-year and, big demand that we're seeing for auto sales. great numbers, guys. ashley: great movie reference, nicole. joe pesci. what's a great? tracy: she was great in that. ashley: brilliant. tracy: coming up, find out how the irs spent your

taxpayer money on lavish parties an trips for its employees. ashley: oh, boy, how much fun is that? first take a look how the u.s. dollar is moving on this monday. as you can see it is lower across the board. all the currencies moving higher. euro is still around 1.30, british pound up to 1.53. we'll be right back.

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>> at 20 minutes past the hour i'm lauren green with your fox news minute. senator frank lautenberg of new jersey has died. the 89-year-old democrat was the last remaining world war ii veteran serving in the u.s. senate. he was also a multimillionaire businessman and longest serving senator in new jersey history, from 1982 to the present. with just a brief two-year retirement in 2001. governor chris christie said lautenberg fought for the things he believed in. oklahoma's chief medical examiner says the death toll has risen to 14 in fried ace tornadoes and flash floods. included were the deaths of three stormmchasers. firefighters in california are battling wildfires one hour north of los angeles are reporting the blaze is 40% contained. 3,000 people have been evacuated. the wildfire destroyed six

homes and one thousand other homes are threatened. those are the headlines. i'm lauren green. back to tracy and ashley. tracy: lauren, thank you very much. >> thank you. ashley: the irs, talk about them a lot today. already under fire for targeting conservative groups. they face increased scrutiny for wasting taxpayer money on employee conferences. liz macdonald joins us with emac's bottom line. >> this is interesting history here. a lot needs to be cleared up what happened here. there has been a lot of misreporting on this story. between 2010 and 2012, 50 million on conferences spend on tenantees, free drinks and baseball tickets. this showed in march, i think we have the video clip. irs workers dressed up like "star trek" employees. ashley: there it is. >> or spoof of the gill began's video. at that time in march when those videos surfaced, irs said we're ctually saving taxpayers money with these training videos because

instead you would have to fly workers across the country. these are training videos the irs said for the irs workers. so they said, we saving millions of dollars. ashley: that is valid point. >> valid point, training for taxpayer assistance. the videos happened first. then news about conferences came out that they were flying workers in to places like anaheim for expensive conferences. now the house is expected to hold a hearing on this on june sixth. i'm hearing more disclosures will be made, more revelations about irs expenditures. we don't know what is going to be disclosed at this hearing. i'm hearing there will be more embarrassing details that will come out. that's all the information we have at this point. >> be amazed some were left. >> embarrassing line in unw videos, "star trek" videos, irs workers are dressed up like characters on the spaceship. one line was back, in russia i dreamed one day i would be rich and famous the guy says, me too.

that is why i became a public servant. some of the embarrassing lines from the video. tracy: it's beyond audacity if they don't think we're one, not going to find all this out? exactly to think they could get away with stuff like this. >> the idea we have the irs targeting conservative groups, tax-exempt groups. at the same time, the idea that they can spend freely with no oversight. ashley: yeah. >> that is basically, congressman on earlier in the day, you negotiate for wedding receptions. why couldn't they negotiate a cheaper cost for conferences. ashley: that's a great point. >> we've seen that government wide with the gsa scandal. ashley: kind of a government attitude. >> that's right. ashley: exmack, thank you so much. tracy: thank you. we have one of the early investors to pump money into the u.s. rental housing market. with home prices on the rise and more investors jumping the hedge fund is calling it quits on the land lore business. what does this tell us about

the housing? john burns, i'm glad you're here, this is really interesting angle that hedge funds to the in early are starting to pull out. how come? >> well this isn't an investment for everybody. first of all you need to be a real estate expert and not all these fund are real estate experts. some groups are not willing to play a bet on home price appreciation. i think that's the right bet but some folks aren't willing to do it. tracy: part of it too, they're not getting rental price they thought they were when they got in, right? >> well, that's right. if you think this is just an easy income property and lousy return from that and you're trying to earn 15 to 20% annual return which some of these hedge fun want, this is not the investment for you unless you're willing to bet on home price appreciation and not everybody is willing to bet on it. my personal view we have a lot of home price appreciation going on. if the fed keeps rates where they are we will see a lot more. tracy: it is getting harder and harder to buy cheap properties. that is part of problem with the hedge funds, right?

>> it is almost obvious bet at this point, everybody is piling in. we're seeing mom-and-pop. we're seeing flippers in the market. you only own the home for a couple months to make a profit. i don't think we're in a housing bubble yet because prices are not out of line in relation to incomes. i think it is time to start the conversation to make sure we don't end up in another one. tracy: the flippers are in. you hate to say, joe main street is in. does that mean it is bad? it is going to get to that point where they're in too late? money has been made and they're behind the eight ball? >> well, that's right. at some point we'll have a recession or something bad is going to happen and they're going to get stuck. for right now they're getting in at a pretty decent basis. they're not getting mortgage financing at least from federally insured banks. but you can see that starting to play out in the next couple years is my view. tracy: say what you want i guess about the hedge fund and whether or not they belonged in the market to begin with. they sort of set a floor on home prices, didn't they? >> oh, these guys have

absolutely saved the housing market. they came in. they cleaned up some neighborhoods. they have done a huge social benefit. make a great return for themselves. tracy: how are you consulting your clients? where is this housing market right now? >> we've been helping them pick geographies around the country. earlier on arizona and california and nevada. now it is atlanta and florida. the next game is in the mid west. 3.5 to 4% interest rates will cause rising home prices everywhere. at some point you're going to get affordability will get out of whack. that is when you want to get out. tracy: i heard nor more and more things are loosening up. more and more people are available to get some money. that will kind of set the ball rolling, won't it? >> it will. i don't think it will be the big banks. they have got fined heavill this time around. i think they will be conservative. startups. former execs from subprime companies are tout tlnd a he they know how to play this

fame. i think exactly we'll see them play the game all over again. tracy: it is deja vu all over again. you didn't mention the northeast in all of this? where are we in this. we're kind of behind the eight ball in the recovery process. >> it started out west and worked uptown and northeast and midwest. think you're next. good news. tracy: slow and steady wins the race, john burns, thank you very much. ashley: on its way, apparently. tracy: patience, patience, right? ashley: still to come, the u.s. spends 2.7 trillion dollars a year on medical costs. find out why american health care is so expensive. and, if it is really any better than the rest of the world. tracy: as we head out to break, take a look at some of today's winners and losers on the s&p 500. the dow is up about 75 points right now. it has moved since we came on air. ashley: all about us. tracy: all about us. nicole petallides is talking about merck. up about 4%. we'll be right back. this is america.

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>> there is 88 minutes to close. heading to the floor of the new york city stock exchange. the dow holing gains, nicole. >> yes, we are indeed. the dow is still holding on. you're right, up 16 points at the moment. i want to look at pandora, in particular, on the move on this day. panpandora, of course, pulling k today, shares sink on report that apple is getting closer, and i know we've reported this, but every time we say apple is closer, pandora sinksment today, down 10% for pandora. streams service, and "wall street journal" says apple secured a licensing deal with warner music group, and with that, those headlines, and under

the steal, apple gives publishing arm 10% of the ad revenue, double what pandora pays now paving the way possibly for future deals, pan pandora u% in the last year or so. you can see here now, though, pulling back 10%. year to date, 66% year to date, back to you. >> thanks so much. we'll be back in 15 minutes. >> it's no surprise that medical care in the u.s. is pricier than the rest of the world because everything is, but you might be surprised to learn just how much, even, like, little common procedures. gerri willis of the "willis report" has been digging in a report. what did you find? >> it's more exceptive for health care in the country because at the end of the day, the outcomes are not good as another developed country, but this is what we found digging in the numbers in the new report from commonwealth about exactly what people are paying in the country for the most common procedures. one is the colonoscopy.

we pay $1200, the swiss pay half that. hip replacements cost five times as much in the u.s. to get a hip replacement as in spain. a lipitor refill, in the u.s., pay $124, and in new zealand, it's $6. what's going on here? why are we paying twice as much as developed countries on average for the procedures? doctors are often prescribing the most expensive medications, the most expensive procedures with the most sophisticated equipment out there, and at the end of the day, the price tag is higher. the colonoscopy is interesting. in reality, you can pay $6,000, $7,000, and here's the dirty little secret about this, you don't have to have it. there are cheaper tests to take, less invasive tests to do that often provide the same kind of

reporting. >> there's a motive -- >> there's a profit motive, and i think that the procedure, after katie did one live on tv, the parties asked for it. >> interesting. despite all that, as you pointed out, the health outcomes, you are not getting the best outcomes. >> not necessarily. be aware of what you pay for with a major procedure or a surgery. >> might be cheaper to get on a plane and fly somewhere. >> i know people who do that. if you want to know what the average is in the u.s., go to a@ website called healthcarebluebook.com. >> you know, we spend more time negotiating a place to have a wedding reception than we do anything else. >> that's really well put. >> we should be gorgetting these things. >> you can. >> what are you talking about tonight? >> this story, exploring it quite a bit, and talking about the irs scandals breaking today. we'll have fresh sound on that.

join us. >> tough to keep up these days. >> i know. scandal after scandal. >> six and 9 p.m. here on fox business, don't miss it. breaking news now. oil closing up $1.49, now $93.45 a barrel. the jump of 1.of #% erases friday's loss. >> a group of new york city college students training to become hackers. well, find out what they do at their weekly hack night events. we'll be right back. >> is there beer? >> ha-ha! ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of od. ♪ [ agent smith ] ge software connects patients to nurses to the rightachines while dramatically reducing waitingime. [ telephone ringing ] now a waiting room is just a room.

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>> this is your fox business brief. looks like nysc euronet will have a new owner. the shareholder meeting shows they are approving a takeover by intercontinental exchange. they officially release results tomorrow. bp is planning to invest an additional billion dollars in alaska. the oil giant brings two new drill rigs by 2016. con koa phillips has a similar program after the state passed a tax overhaul bill last month. a management shakeup could be coming at microsoft. all things d reporting steve balmer is working on what's expected to be a significant restructuring of the company. the challenge's could mean expanded roles for some current executives. that's the latest from the fox business network giving you the power to prosper.

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>> today is the dead line for quarterly withdrawals from sac capital. it's anything but regular. exemptions expected to be in the billions from the embattled hedge fund. joining us is doug burns, former federal prosecutor. doug, thank you so much for being here. we said in the commercial break, this is dragged on for a long time, hasn't it? >> really has. >> why? >> well, it's dragged on because, first of all, when matthew was arrested, everybody,ingincluding me, thout he'd flip and cooperate because he had a critical 20-minute conversation with steve cohen about elan and wyatt securities, and, of course, if he could come in and just lay it out, speculating that, hey, this

80-year-old physician gave a head's up about the negative fda report, but we don't have that, meaning the government doesn't have it. >> fainted on the doorstep when fbi agents visited him in florida. >> good point. >> to be filing charges, but he's not budged. >> he has not budged. of course, interesting little ancillary footnote is that sac is paying his legal fees. nothing wrong with that. allowed to do it, and it happens all the time, but it creates a little of, you know, speculative, you know, conflict, sorttof theory. i'm not suggesting, just so i'm clear, that he's not cooperating because of that, but by the same token, it's worth everybody knowing. >> without him, can they get to mr. cohen? >> the fact of the matter is, i don't think they can. what happened was they were in a meeting, this is interesting, with respect to avoiding the $276 million loss due to the stock plummeting, but apparently, a lot of guys said,

we don't need to say. we are told we should. go with the closest to the situation. i found that interesting. >> oh. >> as if it was code speak. >> not even a clever code really. >> not clever really. unless, however, there's a finer point on the pencil, and you remember the case with the wire top is a they had the words. >> absolutely. >> with insider trading, if you don't have the words of the conversation, you are left spinning wheels. >> the government has to prove beyond a reasonable doubt the fcc could come in and fine and take away the license to operate a hedge fund? >> yes. >> could that be a possible scenario if the government can't get further? >> yeah, what you are saying is exactly what's reported which is that the government's considering maybe entering a deferred prosecution agreement, get a big fine, and back to the reseemings issue, this is interesting. the reason that that -- the

redemption issue squares into this. the reason people pull money out because it's rumored that part of the deferred prosecution agreement is going to be converting funds to manage only steve cohep's money and not taking investors. it's not a surprise, therefore, that -- let's get the heck out. if they convert to a fund, we don't -- >> you know, if he's just managing his money, where does he make money on the fund because fees are charged to himself. >> yeah, but at this point, obviously, he just wants to avoid criminal prosecution and do what he can, you know, to escape that. you know, they talked about using the racketeering lawyer, remember that? >> yeah, sure. >> but the thing is that they could have insinuated that for the statute of limitations because of the ten-year statute rather than five. i don't have a crystal ball, but i think at this point it looks like the government may reach some type of agreement to resolve this thing. >> keep a close eye.

doug burns, appreciate you being here. >> of course. >> the is saga continues. cybersecurity is a thorny issue for president obama meeting with the chinese president friday after a leaked government report reveals that chinese hackers had assessed the designs for the military's top weapons systems. here at home, a group of nyu students training to become hackers to fend off attacks. fox news david lee miller has more. hey, david. >> that's right. these students don't study hacking, but they do it. they launch cyberattacks in a simulated, computer network. now, this extracurricular program takes place every wednesday evening on the brooklyn campus of policy tech nick university part of nyu. students try to replicate cyberattacks using case studies of past incidents like the 2009 attack on google. hacking is a crime, the students

do not break the law. >> nothing we do is close to being illegal, and it's easy to avoid the boundaries. we have test systems in a lab network isolated from the rest of the university, and all of our testing, all our instruction is down on the systems, and there's no way they can harm outside the university. >> students with hands-on cybersecurity skills in great demand by private industry and the government. rather than chasing down potential employers, it's the employers chasing down the graduates. listen. >> i have tons of jobs offers everywhere i applied offered me a job, and all i have to do is choose. >> this is become such a key skill is there's bonuses out there to recruit people, security cleercheses required. it is very much, you know, turned it into a cyberwarrior type of feeling, element, but it is a skill and a job occupation that's going to grow, not go away. >> and these graduates right out of college can make a starting

salary in excess of $100,000. of course, because of the spike in cyberterrorism and hacking, they have a great deal of job security as well. tracy? >> certainly do. we need more, actually. thank you, david lee miller, that was good. all right. quarter till, time for stocks now like every 15 minutes on the floor of the new york stock exchange. the favorite joining us. you're the voice of reason down there. >> oh -- >> so, look, there's a lot of people saying manufacturing sector is put in contraction. all this talk of tapering, dow pulls back. should i have sold in may after all? >> i don't know. you know, tracy, i don't think so. i think the market continues to go higher. look today. every time it pulls back, buying comes in. we're looking right now at the dow as i'm talking, up six points since i waited. crude oil is doing better today, so the energy's stocks are leaders, but overall, i have to

tell you, the u.s. is the place to be. it does not change. the fed easing is a lot of conversation, but i don't think they are worried about it until it looks like it could be imminent, which i don't think it is. >> even when it happens, if they do it slowly, will it make that much a difference to the climb? >> i don't think it's going to make a difference. they have to be careful exiting. obviously, they don't want to cause the market to go into any kind of con vumtion when they decide to leave. they'll have a very, very well thought out plan, and it's going to be over a long period and in gradual stages. it shouldn't make a difference at all. >> yeah, probably going from, like, 85 had 84 for awhile. >> you're right, probably. >> thank you. you're welcome. >> thank you so much. >> it's a taper. >> maybe the 80. >> i don't know. one of my favorite subject, doe noses, incorporating the item in breakfast sandwiches, a new

fried egg and bacon sandwich split between a glazed donut. it's a regular menu item friday, and what the company says is national donut day in a time where many fast food restaurants promote healthier choices, but hang on. the new donut sand witch has less calories than the new healthy turkey, sausage sandwich. i knew it. >> you can want believe it. the numbers are transposed. it's 630 calories, has to be. i don't believe it. >> two a day, you're fine. nothing else, just a couple those. >> i don't believe it for a second. apple in court to answer charges that it was involved in an e-book pricing scheme back in 2009. our very own judge andrew napolitano will weigh in on that next. don't go anywhere. ♪ i did? when visa signature aske evody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis."

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>> apple in court over allegations that the company was involved in a 2009 e-book price fixing scheme with five major book publishers. apple denies any wrong doing, the publishers settled out of court, worse for the tech giant. the presiding judge hinted she believes there is enough evidence to prove apple guilty. joining us, fox news senior judicial analyst, judge andrew napolitano. sir, did they incriminate apple by settling on this? it's like an admission of guilt. >> the government says that apple orchestrated a conspiracy amongst five principle book publishers, one our cousin, harper coal lips, owned by the same operation that cones us, and that apple and these five agreed to charge a certain price for e-books so as either to put amazon's equivalent out of business or force amazon to charge more, which would

decrease its competitiveness against apple. the five publishers paid 75 million dollars in cash to the justice department and said, yes, we agreed to do this with apple. the justice department says, okay, apple, cough up. apple says e, says, we didn't do anything wrong. we wanted to compete. there's no proof that apple -- that amazon's prices are going to go up because you stopped these people from carrying on with the agreement we entered into with them. this is going to be a swearing match amongst economists produce by the justice department who will say if apple did what you said they did, they took money from other people or would have taken money from purchasers by -- >> so my question, judge, why isn't tim cook settling? what's the outcome if against apple? considerably more than the $75 million? >> it would be as no ,

ma'amically more than the others settled for. we don't know what the justice department demanded from apple aside from an admission of having done this, which hurts apple with investors and shareholders. the government, obviously, wants a lot of cash from apple as well. tim cook, ceo of apple, obviously, he believes he can beat the justice department. there's no jury, just a judge. when you try a case before a judge, the best thing the judge does is what this judge did. i looked at the evidence, and in my opinion, i have not heard the case yet, but in my opinion, the justice department is going to win, so, mr. cook, settle the case. that's what she said, and cook basically said, you know what? we think that you'll think differently about the evidence after you hear the case. after you hear our experts and their experts, fact witnesses, and their fact witnesses. >> isn't it a black market against apple that the others settled? >> it is and isn't. you don't settle because you did something wrong, but because it's easier and cheaper and you

don't try the case. >> yeah. >> we'll see where it goes. if i were mr. cook who knows more about the case than i possibly could, pay the government a ound of flesh and go home and do what you do best. >> by "pound of fleer," you mean pound of flesh. >> i do, whatever damages are there, whatever the judge decides would have been the increased cost for the e-books had this so-called conspiracy been put into play, multiply that by three, that's what apple will owe the feds. >> wow. >> and it goes to the feds, not the people who would have been paid. this is money in the treasury of the federal government, the justice department. remember who heads the justice department? >> yes. >> all right. >> mr. holder. >> there you go. he's not going to testify, don't worry. >> oh -- >> by the way, breaking news, shares of zinga halted, laying off 18% of the work force which amounts to 520 employees, in a bit to reduce costs. the social game maker closing offices in new york, los

angeles, and dallas. >> huh. kind of smells like dot-com bubble again. a little bit? >> maybe. they are trying to save costs. that's 18%, big move. >> yeah. all right. coming up, intel gets a boost from an upgrade. are investors really going to buy the case inside? liz claman has an indidn't look at the ratings rumble. dough up 82 appointments, up 30 points since we've been on, ash. "count dop to the -- "countdown to the closing bell" is next. don't go anywhere. ♪ talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe op in blood pressure. side effects include headache, flushing, upset stomach, and abnmal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away

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liz: the united states verses apple. did the text i deliberately try to fix the price of the-books? we will handicap the case and talk about what it might mean for apple and shareholders.

intel inside. the portfolio and not just your electronics. the chipmaker kits an analyst upgrade. does that check by -- the tech giant far underperforming the broader market. and we keep hearing about the fed's new stock market. all the names that are flying high because of it. who is getting clobbered as a result of the bond buying program? we will tell you which stocks to avoid. "countdown to the closing bell" starts right now. ♪ liz: could afternoon. i'm liz claman. it is the last hour of trading. we need to talk technology. as you just heard, breaking news from ashley and tracy. shares had been halted after announcing layoffs of some 520 employees. looking at the stock right now, still moving slightly higher. you saw the spike after the news because sometimes the market