yes. >> the first an account from an alabama anti party president says she was denied tax-exempt status for years. she will join as after her testimony today on capitol hill. lori: starting your smart phones, government officials looking into just how vulnerable your hand-held devices to a cyber attack. melissa: air travel fees may be going up again. if they do, we won't have the airlines to blame, only the government. why teens are intentionally breaking their smart phones, in the name of being cool. lori: cracked iphone, tech chic or just keep? what do you think? i'm lori rothman. this is melissa francis. we will read some of your tweets a little later on. in the meantime, let's did you set up at the markets. first trip to the floor of the new york stock exchange.

the dow and s&p are struggling to stay afloat right now. >> reporter: that's right. all three of the major averages to the downside. all selling off today. the dow, of course, jeopardize the those days where we had 20 consecutive tuesdays and douu jones industrials would lock in gains degrees today and the 21st tuesday it looks like at the moment it is to the downside at least not the winning streak. we have seen some of the energy stocks weighing on the now. the transportation stocks have been doing better. airlines. the dollar today is higher, and we are waiting the weekly jobs looked -- i'm sorry, the monthly jobs report. also want to take a look. when you talk about a big deal. the biggest maker of online sales management tool paid to a half billion dollars. take a look. 52 percent. exact target, the software maker. the deal ultimately will of the company's reach customers on

social networks. it's obviously a big deal on wall street today. sachs moving in relation to that. the news that he is upset with bernanke. the fed is actually the problem, not the solution to these markets and this economy. that is something else that we continue to talk about. obviously pondered. lori: oil managing to turn positive. phil flynn is in the pits of the cme. would you say that today -- >> well, i think it is part of it. oil traders just cannot make up their mind whether they want to watch the fed, the dollar, the storms that develop geopolitics, a lot of stuff going on. traders turning around like crazy. you can tell by the market action, it was all about the

dollar and the fed. then the market reversed. the dollar did not move. the bonds did not move. some people said, you have this tropical storm in the gulf of mexico. maybe that is the reason. maybe because of the geopolitical wrist in syria that talk of the use of sarin gas. someone has to be held responsible. even south korea talk about subsidizing oil imports of some very special blends of crudes. that also brought the market up to be a lot of the stuff going back and forth. all that kind of activity, wild swings the we are seeing and the reversals. lori: you know, metals have been making some moves. gold has been an interesting@ story. >> i think it is. we have had an incredible comeback, and now we have been doing -- stay above $1,400, get back behind it? right now traders are going back and forth. we saw a strong dollar. we still are seeing strong demand in india and china.

some worry that that could slow due to tighter rate policies in india, but overall i think the market is pulling back a bit until we get more reports. we have the jobs report, lot of that speech. traders are keeping it close to the best right now. lori: absolutely. phil fred -- phil flynn, thank you so much. >> thank you. lori: conservative groups targeted, having their side heard today in a hearing before congress. rich edson is live from capitol hill with more. compelling testimony. >> for the past three hours or so about a half-dozen groups here discussing their time that it has taken to get their tax-exempt status from the internal revenue service, some saying their applications are still outstanding, taking two and a half years, some taking three years, and they use this as a forum to detail their application process. >> in order to comply with the information requests it took hours of time, stress, and

aggravation. by the end of december we filed the request and permission with the irs. the nine january 31st 2013 we received a request for more permission which included, again, a request for the articles of incorporation, copies of e-mails sent out on issues we deal with applause copies from our facebook. >> now the irs has more questions answered, this about spending on conferences. reports coming in just a couple of hours ago saying the irs spends nearly $50 million on 220 conferences. just one conference. cause more than $4 million. the review says they cannot be determined that that is all that this band. that was money that was supposed to go to hiring enforcement employees. $135.

seventeen. aquino's speaker is melissa francis presentation included painting portraits of famous people. that will be a topic. melissa: coming up, we will hear from another participant in the testimony you actually choke up and started crying, demanding government accountability . becky garrison works from alabama anti party organization. we will hear her story. lori: really compare -- compelling testimony. cyber threat in the palm of your hand. mobile security taking center stage. peter barnes is on the story, and he joins us from washington with more on that story. >> reporter: well, with the explosion of hand-held devices on smart phones, we have seen an explosion in mobile security threats. here are some of the ways that cyber critics are getting to us. they create fake versions of common applications, like skype

and mr. gramm. they set up fake wi-fi hot spots and legitimate sponsors and a package your signal. and they send him out where that impersonates law enforcement, demanding payment to settle for investigation. several security firm trend micro tracks the growth of high risk applications showing 350,000 of them for android alone. >> the law again. there's a password. it's all of your e-mail, all of your personal contact and permiision to read all of your -- your calendar. where you are. all of this is of interest to somebody. we will see different kinds of alloys for different kinds of threats. >> what can you do to protect yourself and your mobile device? well, start by backing up your smart phone data on a regular

basis. 69 percent of users do not do this according to consumer reports. also, use screen lot scoot -- screen lots with passwords. 64 percent of users don't do this. you can download anti virus that, applications were devised look -- locator. if it does, there are applications that will wipe the contents of your device totally out from your home computer. back to you. melissa: fake hot spots. i have not heard of that one. that is incredible. lori: i did not know to be afraid of it. non-tariff ride. melissa: d'agata reminder. so lazy. alloys putting in the key cards. some other headlines making news today. replacing catch a manufacturer hines. scheduled to occur after the close of trading thursday. gm was taken out of the index in

2008 during the financial crisis. being removed as head of its acquisition by an investment group that includes warren buffett berkshire hathaway. speaking of acquisitions, amazon has picked up the popular show on torre the explorer and sponged by scorepads as well as content from mtv and comedy central. they did not want to pay the price. scoop them up for its pay streaming service. this comes after amazon have been netflix for the abbey. also, that's quite a range. in the airlines, industry united airlines will not sell a subscription for a year's worth of certain fees. the basic plan will cost $349. one standard size bag checked per flight within the continental u.s. and canada. this works out to just about 14 bags under.

lori: breaking news. chrysler firing back after the national highway traffic safety administration issued a recall request letter proposing that chrysler recall its jeep grand cherokee will model year 1993 to 2004. also the jeep liberty model year 2002-2007. chrysler says it does not agree with the agency's findings and that it does not intend to recall the vehicles cited in the investigation. and did not even know they could do that. approximately two and a half million vehicles would have been included in the recall. that will be an interesting fight to watch. melissa: in the meantime, a cultural icon to representing women who worked in factories during wartime. turning reza the river. i don't know about that. lori: rejoice. melissa: to putting those problems behind it. lori: and is the american dream fading?

why u.s. workers are reluctant to change jobs are now. lori: a whole lot on gold today. down again 1550. we will be back after this. i want to make things more secure.

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axiron. ♪ lori: the 15 minute marker. nicole was on the floor of the new york stock exchange. you're watching gold etf. major outflows as a result of what is going on with the trade in the precious metal. >> reporter: some much going on. i mean, gold is used as a safe haven, sometimes in relation to the dollar. even treasuries for that matter. let's take a look right now. this is an etf, a gop. today down again over 1%. you mentioned the commodity itself which is down over $15 sitting below that crucial $1,400 a troy ounce mark.

you are seeing stocks in the group and these ets made up of some of these names. all to the downside, all of which are losers this year. as far as the amounts we are seeing, this particular etf that we are talking about, the biggest up close and the market so far, $16 billion. total assets have fallen below $100 billion. down 32% from the end of last year. gold is not so hot. the investment that people are hot on for now. melissa: thank you. time to make some money with charles. he is looking at a news application using the iconic image of rosie the river to promote their new product. talk about an unusual ad. melissa: you wonder who was kind of thinking about this. let's take a look. listen. you know, people should know, came about, world war ii. women had to come into the

workforce. you know, women building battleships, not in the kitchen. it seems so interesting that this that would pop up with the current debate about women in the work force of women earning less money. also women playing a much greater role with respect to being the breadwinner in the average household. i think it is a down at. i think the timing of it is absolutely horrific. it is hard for me to believe that we talk about bubbles and corporate -- corporations, there is no doubt about it that someone made a big mistake on this one. lori: you know, i am wondering if people read that much into it. we do. i wonder if -- wonder how well the image is still known among their target audience. melissa: allied themselves and their history. i was personally offended by it. >> are you offended by the wage difference between women and men?

lori: now you're taking it to a whole different -- >> no. i'm not to be the only reason i ask. the little things -- sometimes it takes a lot of little things to wake of the public to offend the public before the larger issues can be attended. lori: i think it is cute. but in los with from there. >> would you like to see it do? a little bandana on. lori: to use to for a lot? lori: i do. >> you are renaissance woman. whoever is iran and were never a stated time gets done. and of this sounds like very much of it to perfect in this area description. there are always cranks. unlike history. i saw this and it took me back. the woman's world. do could take it that way. very influential. >> this is the exact

this is the exact opposite. the work force. lori: they helped make the ammunition and the products to support the guys overseas. >> founded by a guy named melvin. he died just like six years after the company he founded. his wife, chairman and ceo of the company from 1889 to 1919. chairman for 19 -- of the way to 1934. this woman ran this company. you would think -- melissa: it might be time for the modern woman to come back in plane. out there are in the bacon and go home and in the four. >> issue that has been in the background take a nap. i know. listen. maybe i'm reading too many newspapers this seems like a really bad time. >> the really clean floor would sell me a swifter. show me a floor that was

disgusting and now is really clean and it took almost no effort. >> working too hard. lori: only a woman who can build a ship can also clean the floor with this instrument. that's up much of a shell. show me some messy kids, dirty dog, and then a completely clean floor. no, what was that? >> i'm with you. melissa: we analyze that one. lori: the potential to oppose it. -- serious threat. but jeff to destabilize the financial market. but regulators are doing to safeguard the system. taking a little bit of a turn. melissa: here is another one that we can beat to death cracked cell phones, new status symbol. smashing their iphone on purpose. we are talking on broken glass ahead. it. ♪ i turned 65 last week.

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♪ lori: 23 minutes past the hour. here with your fox business minutes. french foreign minister says that tests of chemical samples confirm that sarin gas was used

in syria multiple times. france is giving those results to the united nations. u.n. investigators found reasonable grounds to believe that toxic attacks occurred in syria in march and april. the u.n. cannot determine whether it was government forces are rebels, or both to use the chemical arms. in turkey, as anti-government rallies continue for a bit straight day now for the government now apologizes for the violent crackdown on demonstrators to be deputy foreign minister says that the rate on protesters who were angry about plans developed largest park was wrong and unjust. in colorado, the judge has accepted a plea of not guilty by reason of insanity. accused of opening fire at an hour a movie theater last july, killing 12 people and injuring 70 others. those a year headlines at this hour. now back to lori. lori: thank you. it is an important government decision with a big market impact. government regulators say aig

provincial financial and see too big to fail. with more on what this means for you, here is a list. >> they had to face government stress test. they also had to face the tougher capital standards. the federal reserve can change without any input from congress and a half to basically enact living wills would still the government which assets they will sell-off. those are inadequate to the fdic can tell these companies that you have to put more assets in your living will beat you have to divest. the irony here, jamie has told congress that carries a solution of too big to fail called bankruptcy. break the company. i think what happened here was this of what happened with aig. and it's ended up at the reserve what will happen to those run assets to back the end of the reserve begin. chuck warehouses'. but the thing is, there is new legislation. all of these companies, cutting down on congress.

that is, the new legislation, they have to put 50 percent of their equity against their assets. as a big deal. goldman is saying is that legislation is enacted, big banks would basically see a damper on buybacks and dividends. for years. in fact hundreds of billions of dollars would be redirected toward the capitol and not toward buyback and dividend. that is putting a chill on the banks and what they think they have to deal with in too big to fail. lori: it ultimately impacts and these are the share price for the financial restitutions. >> we're watching that. we're checking to see if they will impact the share price it recently the insurance industry lobbied heavily against it. they did not like it and felt that they were being blamed for aig they were saying that we are safer than banks. what we have to be cited? we may hear from provincial. contemplating whether or not to contest it and say, we should not be listed. we will be watching.

melissa: overall amazing that we still have this phrase in our vernacular. too big to fail. let it fail. let it go legs up. >> attorney general eric holder testified before congress and said, we cannot prosecute them because they're too big to fail because the danger is, that would destabilize the system if he even tried to prosecute them. instead we have this big regime under way for the financial stability overset council. melissa: thanks. lori: shrinking the deficit one airline passenger and the time. melissa: can you do that? lori: details on the new obama administration proposal that may cost you on your next flight. melissa: the dallas trending lower. of 63 points. here is the breakdown. the 30 components. most of the issues are in the red. home depot down a dollar 60. the weakest performer as of now. we'll back after a short break.

...

lori: stocks now as we do every 15. let's head to the floor of the new york stock exchange. nicole petallides looking at big movers on the s&p today. >> let's look at two names. first monster energy drink. they are under scrutiny pertaining to caffeine and health risks and marketing to adolescents and children. however, that is still pending. there are still lawsuits underway. we're really seeing monster energy jumping. that is on the news sales are accelerating. you have goldman sachs and stiffle nick loss coming out and talking about sales they're seeing. the launch of muscle monster. that is on track. sales accelerated in may 13% from 5.7% in april. we know this is a hot one. according to a report from goldman sachs. year-to-date, monster energy,

those drinks are a winner for the year 2013. then there's dollar general. i'm actually standing at the post of dollar general. there is a look at it, down 8%. that is huge, huge move. save time, save money every day. that's what it says the truth is people were shopping in the latest quarter. but they had to lower their outlook. as a result we're seeing dollar general to the downside. raymond james cut it to a market perform as well. a lot of pressure on dollar general today. back to you. lori: interesting reason. -pnicole, thank you. melissa: so in an effort to pare down the country's $1.3 trillion deficit, president obama is proposing raising and adding new air passenger fees. perfect. former director general of the department of transportation mary think dish shy awe very says expect a fight over this tax -- schiavo. they say a lot of fees are not much. aviation passenger security fee that could be $7.50. but 70% of the money they

raise is going to the deficit. why should the flying public pay for, you know the irs's dancing videos and all the other stupid spending that is going on in washington? >> well, they shouldn't but the reason that they do is they're easy money. they're easy target. and it has been this way since the '80's and '40s. the theory way back when, rich people flew and we'll tax them and user pay system. that thinking persisted to this day even though that is not the case at all. anybody who has been on a plane, know the rich people are not there. in fact this is very regressive. the part of the tax getting the most pushback people don't hear about, the $100 per flight depart ture tax which would apply to attorney general eric holder aviation and private jets and air taxis. that's a big deal because airlines, account for about 13 million of the air traffic control operations but generally aviation and on demand aviation account for 22 million. that is where you have to

get some money. that probably won't pass because lobbyists are great on that. melissa: but it says this $100 per flight departure tax would be paid primarily about airlines. if you know anything about economics and math know that is not true. airlines will not pay for it. they will raise prices and pass it onto the flying public. >> exactly. melissa: it goes on the backs of the flying public. >> yes. melissa: who will stand up and say this doesn't make sense? why do you want, you tax what you want to discourage. don't we want more people to fly because it means they're spending money, going somewhere, to another city, renting hotels, rentinging cars? >> what the government beliefs demand for aviation is inelastic, that we'll fly no matter what. from somebody who is flying for vacation to mom-and-pop in peoria have to go to the grandson's graduation. they believe they can tax the heck out of the flying public and we'll take it. why? because we have. this will be a 29% increase on the flying public. now the airlines are pushing

back on the passengers behalf but by and large the passengers don't have a lobbyist voice in washington and the general aviation and on demand aviation, flying private jets do. so that is why it will mostly fall on passengers. melissa: we're getting taxed to death. september 11th fee, $2.50. passenger fee, $5. aircraft fee, $70. customs user fee. 5.50. immigration user fee $7. it is a ridiculous list of taxes everyone has to pay. where does all the money go now? if they want to take 70% of the new taxes to put it to the deficit where is this current money being spent, mary? >> right now a good chunk goes to two things you would expect. one it goes to pay for the tsa security. two it goes into the aviation trust fund to pay for air traffic control, runways, landing skimt, the new -- equipment, new next jen aviation air traffic

control system. that is what the trust fund is supposed to pay for. with this going into the general fund it is truly another way to tax the public because most people fly. melissa: mary, thank you so much for coming on the show. appreciate your time. >> thank you. thank you. lori: well they're back. lululemon restocking shelves with yoga pants pulled in march. you recall why. they noticed that the fabric on the popular pants was see-through. melissa: well --. lori: you didn't mind. you love the see through lulus. they introduced new fabric protocols that must pass 15 tests. did you volunteer to model? melissa: no, no. definitely not. lori: the shape of the fabric pattern has been adjusted to insure fit without being over stretched. look at shares of lululemon hitting a new fifth on new pants news. up $1.44 a share. that is all it takes. the remember the bend over test. melissa: can you return them and get your money back? bend over and let's see. lori: that is insane.

hasn't hurt the company much. melissa: all right. sweating at sac. charlie gasparino is up next as the troubled hedge fund tallies up investor redemptions. lori: what is going on with interest rates today? here is a check of the 10-year, holding at levels for about a week or so at 2.12%. and out the curve, longer dated maturities, 30-year is yielding 3.28%. we're back after this. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

>> i'm cheryl casone with your fox business brief. the state of new york is huing hsbc accusing the banking giant of ignoring state laws that helped financially strapped homeowners negotiate better mortgage terms and stay in their homes. new york attorney general eric schneiderman announced the suit at a press conference in buffalo. an hsbc spokesman says the bank doesn't comment on on going litigation. home prices posted the biggest annual gain since february of 2006 thanks to growing deman and low inventory. according to corelogic, prices soared more than 12% from the same time last year. of the lower 48 states, nevada had the largest year-over-year price jump. the u.s. trade deficit climbed 8.5% in april, short of analyst expectations. trade deficit is $40 billion, versus the 41.billion that was forecast. that's the latest from fox business, giving you the power to prosper

lori: today could be d-day for steve cohen's sac capital the fund tallies up investor redemptions and weighs whether to remain in the hedge fund business. charlie gasparino has the latest. charlie. >> you know i was reminded by a senior investigator at one of the agencies looking at, i don't want to give away too much, don't want to give the person's identity, one. agents looking at cohen. everybody remembers, and you guys know this, arthur andersen, convicted, right? lori: oh, sure. >> the supreme court let him go. remember the supreme court overruled that conviction. and, you know, i think we should remember that when we look at steve cohen. he has not been charged yet his fund is essentially being put out of business. we understand something like $4 billion of investor redemptions could come today. that would be it for sac capital. i'm losing my vows again. lori: what is the magic number? what --. melissa: need more water?

hold on. there you go. >> thank you. lori: so what's the -- >> bring it on, baby. lori: is there actual magic number? >> we hear it is close to 4 billion, on top of 1.75. that would be it for sac capital and not a single charge. here is the other thing i heard, investigators are unsure if they have a case against cohen. they're unsure if they have enough evidence. so it may come down to the fact that this guy is not even charged. and his fund goes out of business. melissa: yet they still forced him out? >> absolutely. melissa: i mean it's incredible. and we still are no closer to knowing what matthew martoma is going to do? >> i think july and august is the key dates. if they, if that happens, like, for example, the statute of limitations ends in july and august. if he makes it until then, steve cohen is not getting indicted, bottom line. melissa: so if he makes it through a certain period of time and he doesn't get indicted and seeing all the redemptions, is there anything to stop the investors from coming back?

>> you know, he would have to reopen the fund. that is one thing he could do. this is it what scares me now that i got my voice back as a civil libertarian. what scares me the notion of a grand jury subpoena, the notion of suspicion, can put somebody out of business and i will tell you, that, you know, no one has been more critical of steve cohen on this broadcast or gone after him as much as i have. they have been looking at him for seven years. seven years. they have not been able to get a case. we do know there is a grand jury empan they would. we do know investigators believe that he has done something wrong but they don't have a case. i still know the government is still grappling with that case. they are unsure if they have the case. and yet, we'll probably get some word later on today, and yet, this guy is likely to announce today, there is good chance that is done. this to me is scary. lori: it is scary and infuriating because don't you think he has the right, if there is no case, never indicted, steve cohen fight

back through the government? melissa: that's what i was going to ask, does he have ground to sue the government for damages? it would be pretty easy to substantiate what the number is. >> let's back up a minute. he is being investigated. i think you can sue the government if he can prove who leaked the grand jury indictment, excuse me, the grand jury called him to testify, right? got a subpoena. who leaked that. that is violation of law, okay? that would be a problem. and by the way, all of us have written that. we all got it confirmed in different ways. i will tell you this, if he goes out of business today, and there is good chance he will announce enough redemptions that they cease being an active business, he has been without a business without a charge, without the firm being charged criminally, without him being charged criminally. and he has been, essentially guilt by suspicion and, connection to other guys that have been charged. and i'll tell you, just to me, we should get judge napolitano on here to talk about that. melissa: yeah. >> that strikes me a little bit as someone who has gone after this guy in terms of

reporting very aggressively. he made lots of complaints about me. i am telling you that to be put out of business based on a charge, based on a suspicion of a potential charge, is pretty nasty. lori: what does the rest of the industry think what is going on with sac at this point? obviously it is competitive but what is some of the other big managers -- >> they're keeping their heads down. they know it could happen to them. that is one of the problems here. this is pretty scary thing if you're a hedge fund manager. if you're someone like ken griffin who runs citadel, there is suspicion that you might have done something wrong, i'm not saying there is, citadel received a subpoena like everybody else, but the suspicion could put you out of business. that is the scary thing here. i'll tell you this, i would like the government to either charge him or not soon. i mean, one. scary things here is that they didn't charge him before this redemption date. if they were going to charge him. they're waiting and waiting. a lot of this turns on matthew martoma, michael steinberg, whether those are

two potential witnesses against him. former portfolio managers that are involved in trades that you know, involved, that are alleged to be insider trading. there is some evidence that cohen may have known about the trades. not necessarily knew they were inside trades but knew about the trades. that is the whole thing. unless those guys flipped and they haven't flipped yet, they have until august and july. i think martoma statute of limitation is july. steinberg in august. that's when we know, that's when you know the case coming against cohen. but i will tell you this, i talked to enough government investigators on this, they are having a hard time bringing a case. so what you have today is sac capital possibly out of business as, he can manage his own money, but as a hedge fund under suspicion he will be charged. that is really scary stuff. lori: we know you're on it, charlie. thanks. melissa: all right. as we do every 15 minutes let's check the markets. ben willis on the floor of the new york stock exchange. ben, all three of the major indices posting loss this is

afternoon. the dow, it is accelerating right now, down 121. what is your take why this is happening? >> well i think the market is long due for a correction. it has been a fools trade to try to anticipate if it is actually going to follow through. we haven't had three straight down days or anywhere what could be considered a technical correction in this entire year. we have not seen a run like that since the 1930s. so it is somewhat of an easy pull back. it may have started the other day. i'm not saying it is a correction. but the lack of data, the lack of news outgoing on right now, yesterday we had an up move because it was first day of the month in my opinion. we have nothing. we'll wait for adp. then of course the numbers on friday. that being said, there is no reason to be in this market right now. melissa: ben, there is nothing in particular that is causing acceleration right now? as i'm watching, we're down 125, no one thing? >> my gut tells me there is something out there that i

haven't seen yet. i was chatting with art cashin. i know the fed heads have spoken. george spoke a little earlier. fisher later on in the day. my gut there is something going on right now. i'm not sure where it is but the fact there is no other news, any, market is very temperamental. right now the least resistance is to the downside. melissa: ben willis, thank you very much. >> pleasure. >> that did accelerate at that. tech chic or just plain cheap? the crazy length teens are going to put their own stamp on the smartphone. the cracked iphone craze is next. melissa: look at some of the today's winners and losers on the nasdaq as we head out to break. monster beverage, leading the way. good day for those investors up 8%. we'll be right back.

melissa: all right. we have breaking news right now. new jersey governor chris christie right there speaking just now about the senate seat left open for new jersey following democratic senator frank lautenberg's death, governor christie is calling for a special election to be held on october 16th, saying that he will not choose the senator but in fact they will have a special election. he is not yet chosen who will fill the seat until the special election. and he is also saying that the state is going to bear the burden inch of the cost to do that saying that the costs can not be measured against the value of having an elected representative for the state there. interesting. lori: okay. in a sea of smartphones, teenagers are daring to be different, using cracked smartphone screens as a new status symbol. kansas city star reporter jim fuss sell braved the high school angst to report on this one v. raw -- via,

by what else a phone. >> hi, lori. lori: let me read a sampling in your lied. once considered mortifying the spider webs of cracked smartphones screens are increasingly seen by teens and 20-somethings and inevitable badge of honor, cool battle scars impart a rough street cred in the mobile world. how did you come to discover this? >> well, we had been hearing some things around. also my 19-year-old daughter, allison, had a cracked iphone screen for a long time and, she didn't seem that upset about it, which was strange to me. so we did a little he can toing around and it turns out, that apparently it is cool to be cracked when you've got an iphone or another --. lori: we're showing viewers pictures of this. it is quite artistic. kids are using sharpies and nail polish you're reporting to decorate them? >> yeah.

they do color it up and, use nail polish and use food coloring and different colored sharpies. melissa: oh, my goodness. >> some said they would put it on -- and share it with friends. lori: why do you think the trend began? is it because kids didn't want to come up with a $99 apple care insurance or cover the cost to actually fix those shattered screens? >> that could be it. i did talk to some parents who were a little bit mad that they had bought the insurance, the apple care or other insurance plans and now their teen didn't want to use it because, you know, their phone was now cool because it was cracked. lori: do we know if demand is up or down or apple care insurance or what parts repair costs or how many broken, you know, cell phones are being returned or if people are just replacing them with new ones? do you have any stats along those lines? >> well i did call apple and, they declined to share

whether the insurance plans have gone up or down in the last year or so. so i don't really have a good bead on that. lori: okay. to your point, i know my kid shattered her ipad screen and quite frankly i was really annoyed by that. this trend, you don't expect will, seep into the adult, among adults? >> i wouldn't think so. i mean i'm afraid my phone is practically unhip and uncracked. lori: i'm with you. >> if it did get cracked you would think i would go have it replaced or get a new phone, but i am far from being the, teenager though. lori: interesting with apple like the technology is almost too good because the fully useful. doesn't really make a difference. it doesn't really thwart the actual copy or words on the screen. so, kind of interesting. >> well, if you can still use them and you can be cool like one teenager said to me,

four months anyway, i will ride it out, if i can be cool while doing it --. lori: jim fuss cell with the kansas city star. thanks for sharing your reporting with us. >> you're l you're welcome. melissa: tonight on "money," a two chief economists talk about corelogic's latest report that show home prices have seen their biggest gain in nearly seven years. a lot is due to the fed. are they creating another bubble. we're looking at new fad of online divorces. we have a woman who started a new website where you can divorce for $7500 online. it is cheap and easy but does it make sense? that is 5:00 p.m. eastern here on fox business. bring me your online divorce. i will solve your problem. lori: when it comes to irs scandals one tax expert says president obama is worse than richard nixon because nobody tells obama no. grover norquist, president for americans for tax reform. he joins tracy byrnes and

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ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. stocks moving deeper into the red this afternoon, with the dow on track to snap a tuesday winning streak that lasted, get this, for 20 weeks. we'll hear from one investor who says in this market you need to be dynamic, not defensive. ashley: terrific tuesday normally. the irs scandal raising questions about the culture of the obama administration but american tax reform president grover norquist says this may be just what we need to get real tax reform in this country. tracy: finally. are americans becoming more risk-averse? a look at three trends that say we are and why playing it safe is bad for the economy, we're seeing a bit of a selloff. let's get down to nicole petallides down on the floor

of the new york stock exchange. we were off session lows but why the pickup in selling, nicole? >> one can only speculate at this point. we had a stronger dollar. economic news that shows weakness abroad. the number one thing that is circulating on the floor in last 10 minutes is kansas city fed president esther george. no way to confirm this at the moment but in her testimony she may have said something people weren't too hot on. we don't have the testimony at the moment. i can't read through it if in fact she may have said something. i don't know what it may have been. maybe stopping the fed from printing. maybe it is about our economy. mate it is about our unemployment. we'll get the monthly numbers on friday that may be key. she i understand wasn't feeling too well to give it. but we'll try to break that down and figure it out. you see the dow accelerating to the downside. that 21 tuesdays would have

occurred, would be the 21st consecutive tuesday the dow posted some gains. it certainly seems to snapping that winning streak. dow industrials losers, home depot, chevron, exxon. a couple of tech names and energy names are among the laggards on the dow jones industrials down 3/4 of 1%. back to you. ashley: we still have a couple hours to turn it around, nicole. but we'll see on this tuesday. thank you very much. tracy: the last leg of the bull run caution reins supreme. our next guest says the next leg up may be led by potentially risk/rewarding groups. eric, thanks for being here. we first got to talk about the 21 tuesdays that might not be happening. we are 20 tuesdays in the green. today not so much. do you think it is because of all these fed heads coming out, talking about tapering? >> well, yeah, i think that the taper talk is going to have to happen, right? the fed at some point will stop printing money.

we don't think that point is going to be soon. they, they're trying to get full employment. which, they said at least, it is 6.5. they're at 7.5. they don't see inflation anywhere. they have got dual mandate, full employment and price stability. price stability doesn't seem to be an issue. we think they will continue to concentrate on full employment. tracy: yeah, hopefully that is the case. at the same time, second quarter slow down yet again. deja vu all over again, right? >> well, yeah. this was predictable, right? we have the sequestration cuts are beginning to impact the economy. the first quarter was actually quite strong. we're seeing slowdown in economic news. we haven't seen the market selloff. don't expect to see the same market selloff we've had the last three years. we expect some jitterness, between the first quarter, and sequestration cuts hitting and what we see as accelerating economic growth in the back half of this year. i think market is waiting

for data to confirm that acceleration is going to happen. nothing has proved it is not. tracy: yet at the same time, everyone is waiting for the so-called pullback to happen, right? >> yeah. tracy: you say invest dynamically, not defensively. what does that mean? >> we have an index we created, actually a series of indexes, the russell. best thing look at for the u.s. look at the russell 1000 dynamic and defensive indexes. the defensive index is exactly what you think it is. high quality companies, low price volatility. real stable earners. real stable price performance. dynamic companies are more cyclical companies. those companies will outperform. since the beginning of may, the dynamic index is ahead of the defensive index by over 2.5%. which is a change from we saw in the first four months of this year. we think that will continue as the investor becomes, you know more optimistic about equities and will want to start getting equities and economic growth.

tracy: you're talking more like consumer discretionaries, health care, things like that? >> more consumer discretionary. you will pick up sectors like energy, you know, what you're probably not going to own are consumer staples. you're probably not going to own utilities. high dividend yielding stocks they have taken it on the chin last month. concurrent with the rate, interest rate rise. tracy: we've been seeing this rotation out of utilities in the financials. let's talk quickly about emerging markets. where at this point are you looking to place some money? >> well, we do like the emerging markets. we think from a valuation standpoint they're actually quite attractive. the most notably attractive on valuation basis of stock markets. you have the economic concern that's happening not just in the u.s. but globally and particularly in china. we think that will ease again in the back half of this year, we think because of valuations emerging will run hard in the back half of the year like they did last year. tracy: are we talking old school "bric" countrys? i think you nowadays could

call greece emerging. where in particular are you going to put money overseas? >> well, look we're diversified investors. we'll look at all the emerging markets. we'll pick up latin america. actually our managers are general underweight the "bric" countries. tracy: okay. >> they're looking more broader set of emerging markets and focus less on the "bric"s in terms of their focus. tracy: good stuff. eric with russell investments. thank you, sir. >> thank you. ashley: conservative groups targeted by the irs are getting a chance to share their side of the story in a hearing on capitol hill. our very own rich edson live from washington with the latest chapter on this saga, rich. >> thank you, ashley. a half dozen conservative organizations detailed what they went through in applying for tax-exempt status, discussing how much information the internal revenue service repeatedly asked over the years, applying for tax-exempt status, for two, some cases three years. others are is it still waiting for tax-exempt status whether to be confirmed or denied by the

internal revenue service. a number about democrats questioned on the committee whether or not some of these groups actually deserve tax-exempt status. >> we ought to stop this regulation interpretation from 1959 that invites people to raise vast sums of money and keep the secret and to engage in political activity and some of it, i think, not necessarily promoting the social welfare of our country. everybody ought to play by the same rules. >> it is your kind of statements that have empowered irs agents to make determinations about which organizations qualify for the public good and which do not. [applause] >> this is the first of two irs hearings we're getting on capitol hill this week. next one s in couple of days. this report came out a couple hours ago about internal revenue service spending on conferences. some, 220 conferences costing $49 million. check out the details just

from one conference the irs put on in anaheim, california, cost $4.9 million. no assurances it didn't cost more than that that was supposed to go to hire additional enforcement employees. it included $50,000 on video. the irs couldn't explain specifically where that money went. 135 to you on 15 -- $135,000 on keynote speakers whose presentation included painting portraits of six famous people. $64,000 in gifts of the house oversight and government reform committee looks into that issue the day after tomorrow. back to you. ashley: we're obviously in the wrong business. rich edson in washington, thanks very much. tracy: have someone paint my portrait here at fox. coming up more on the irs scandal. americans for tax reform president grover norquist can explain why the scandal might actually be good for our country. ashley: the government has designated certain non-banking companies systemic important.

find out exactly what that means and why you should care. but first, as we do at this time every day let's take a look how oil is trading, turning lower, down about 50 cents at $93.02. turning lower along with the stocks. the dow is off nearly 140 points. we'll be right back. it's a brand new start.

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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. tracy: time to make mooney. charles payne is here to make money this hour. looking at self-serve industry coinstar. that is the redbox, thing, hat is the dead dough bird play. everybody -- dodo. everybody knows they will get their movies on line. a lot of dodo bird stocks are doing well. gamestop. best buy going out of business. that is up huge from a 52-week low. this one of these things

where you sure, you know what, they're losing market share. a lot of people will. always a certain amount of people who still will --. ashley: loyal customers. >> there are some benefits to it. 24 hours a day. it is right there. and --. tracy: generational thing too. >> it is. tracy: god love them, but when, that generation goes, then maybe you worry about it. but until then, they're still going to be renting dvd's. >> they will still renting dv. dids. the last quarter and eight-tracks, right? in the last quarter, redbox took market share. they took 7% market share. 47.8. half of the market share. they have no real competition in this niche. they still think in the next three years they will double revenue from 2 to $4 billion. they have other things going on for them. we'll see. they have a whole lot of different experiments. they admit too --. ashley: all over the world. >> that is it one point. on a global play, that people are underestimating them. also the idea this automated retail is a big, big space

now, listen to try things like food, beauty products, i don't know. electronic gift card exchanges. remember, this was company that started off with that one crain that used to pick up in supermarket, where you pick up a little stuffed animal. that was them. so they have proven in the past they could evolve. this is stock trading at 10 pe. 0.64 peg ratio. all the things traditional analysts love they call a cheap stock, it's a cheap stock in that respect. ashley: i have never seen anyone win on those things. >> i won a coin once. tracy: every time we go to the arcade that is the game my kids go to. >> really. tracy: i just hand money out because nobody wins. ashley: that why they're doing okay. >> why the stock might be a buy, a high-risk buy. tracy: because i'm a sucker. thanks, charles payne. ashley: thanks, charles. interesting mark we were down 125. we were down 136 now. quarter past. or nearly. get down to nicole on the new york stock exchange, nicole, down about, we're

down 1% at some point here. any explanation? or just a jittery market? >> there is always the nervousness about the fed. that seems to be the number one topic here in the last hour or so pertaining to the fed, pertaining to kansas city fed president esther george. there were articles about bill gross over at pimco and pinpointing ben bernanke our fed head being a problem rather than a solution, what the fed's actions have been of late. that is one reason why you're seeing a market down 133 points. the lowest point today. the dow was at 15,100. you basically had a 200 point swing from top to bottom today. and that is a pretty big swing. we don't see these two often. wasn't too long ago we saw that. that may have been the market top. teddy called that. teddy weisberg will be on the 3:00 p.m. show. lululemon is all-time high. they pulled off the lululemon yoga pants off the

shelves. there were concerns they were see-through. they were in fact see-through despite stringent tests and the like. they're putting these things back on the shelves. you can see the stock is reflecting that good news of getting merchandise back to the customers. you can top 1% and moving to new highs. back to you. ashley: be interesting what the stringent tests what they went through. tracy: we'll investigate that. ashley: nicole, market is down 134 points. tracy: coming up when it comes to the irs scandal we'll hear from one tax expert who says president obama is worse than richard nixon urgs i'm not a crook. first look how the dollar is moving right now. we know it has been strong today. that has put pressure on the market. as you can see for more of these currencies they're moving lower against the dollar, euro, pound, canadian dollar, mexican peso, the yen, all down against the dollar today. we'll be right back (announcer) at scottrade, our clients trade and invest

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>> it is now 21 minutes past the hour. i'm heather nauert with your fox news minute. in colorado, a judge accepted james holmes plea of not guilty by reason of authority. he opened fire in a aurora movie theater last july, killing 12 people and

injuring 20 others. to fill the seat left say can't by senator frank lautenberg, the primary will be health august 13th and special election on open 16th. senator lautenberg died yesterday at the age of 89. seven people are injured following an explosion at nyack college. that is 25 five miles north of new york city. one student and six staff members have been taken to the hospital. but none of those injuries are reported to be life-threatening at this time. authorities say that a gas leak may be the cause of the blast that blew out windows as you can see. some of that destruction right there. fortunately that college was empty. grad ways was held last month. those are the headlines. i'm heather nauert. back to ashley. ashley: timing is everything. heather, thank you very much. appreciate that. as we reported earlier conservatives who were targeted by the irs are testifying on capitol hill today. our next guest says the allegations should not come as a surprise since he claims the irs has been doing this for over a decade. joining us now, is the president of americans for tax reform, grover norquist.

grover, thanks so much for joining us. you're saying during the bush administration as well this was pretty common practice? >> well, i can't speak for the bush administration but in the '90s, i served on a congressional commission that was put together. senator bob kerrey and now senator robert portman were the two chairs of that commission and we were looking into abuses by the irs back then. you may remember scandals where irs agents were going over their neighbor's tax returns and, movie stars tax returns and people, violating the privacy of citizens that they had no reason to do. they weren't auditing their, their taxes. because they had that commission, we interviewed people from the irs and, i said that i had been checking and conservative groups were getting audited under the clinton administration. when i checked with liberal groups they weren't getting audited. could he please explain this discrepancy krepz.

i din assisted we have scientific way of doing all this and very even-steven. well, can you explain the discrepancy? perhaps tell us what this even-steven, very fair measure is and he said, no, i can't. it's a secret but you will have to trust us. and in point --. ashley: never trust anyone who says that, right, grover? >> it is dangerous. it is dangerous. longstanding unfortunately. ashley: are we ever getting to the bottom of who authorized this latest scandal in the cincinnati office? i would imagine any memos out there you would think do not exist anymore but how high up do you think it goes? >> i think when the president gets up at the state of the union and denounces the tea party movement and denounces the supreme court for allowing people to contribute to campaigns, with their, with their decisions, he is sending a signal out through his administration, get these guys. this is how the king went after thomas of beckett. he didn't send a memo.

please stab thomas beckett. he just complained an awful lot and his troops got the joke. the president brought with him not only people from chicago, but the ethos of the morals of the chicago political machine under daly and to this day. and they used the tax office, the assess sore's office, against their political enemies and to then their political friends. they used the government as an extension of the democratic party machine in chicago. why would they which they would operate any differently? we're certainly seeing that they didn't operate any differently. ashley: grover, from, a conservative's point of view, is it more important to damage the obama administration, depending how this investigation pans out or is it more important to bring tax reform front and center as a result of this momentum? >> well we need to get the truth and, when obama's people take the fifth amendment, that's not getting to the truth. we're getting obama's political people like

axelrod complaining about the investigation, which tells you that he thinks it's a threat to the president's credibility and perhaps his presidency. otherwise, he is not an economist. he is not treasury department guy. he is the political hack. he says please stop investigating this. i think we need to get to the facts of this so the american people can look at how we fix it. and there are two fixes. there are changes how the irs behaves and there are changes in the laws that the irs enforces. if we had simpler, less oppressive taxes you wouldn't have some of these problems in implementing it. but we also need to police against the irs political abuse, even in a perfect tax system, if the irs is targeting people politcally for audits and harrassment, that needs to be fixed. it needs to be transparent. somebody needs to be looking over this. we need to go back 20 years

and say how many liberal groups were audited, how many conservative groups were audited. not just the groups trying to get going like tea party people. ones that are going and get whacked and get a lot of expenses with an audit. ashley: we're already out of time. very quickly because we're out of time, grover, the acting irs commissioner dan werfel, he vows, promises to uncover everything. do you buy it? >> we need all the e-mails out there. we need everyone to talk, not go fifth, ask for their protection under the fifth amendment of self-incrimination. ashley: right. >> he isn't the guy who can do this everybody who works there is and the president and his political guys need to stop interfering in the press with that investigation. ashley: grover norquist, thank you so much for joining us today. we appreciate it. >> thank you. tracy: we have breaking news now. we're getting details of a speech by federal reserve governor esther george which

may have been behind the market selloff earlier this hour. george basically saying she is backing the tapering of the asset purchase program. the president of the kansas city fed bank saying, waiting too long to exit from ultraeasy fed policies carries no less risk than tightening too soon. you may remember george is the new dissenter at fed. the next meeting is the 18th and 19th. she went on to say it is time we prepare for a time when we're less dependent on central bank actions. she basically wants to pull away the punchbowl. ashley: that is the kind of rhetoric we expect from her. tracy: absolutely. it is one person. ashley: could move the market. down 122. maybe the fact that someone verbalizes that has a vote. tracy: and is out there. it is an important government decision with a big market impact. regulators now say aig, prudential financial and ge capital are just too big to fail. with more on what this means, liz macdonald is here with emac's bottom line. >> you know, essentially

these are nonbanks being lumped in with other banks that were thought to be too big not just to manage but too big to regulate. the insurance industry is upset about it. they are saying we're being blamed for aig's problems. we're not like aig. we're safer than banks. prudential financial along with aig and ge capital, now they are considered too big to fail. this is what these companies now face from the government, from the financial stability oversight council. basically tougher oversight in form of government stress tests. look at this. the federal reserve is talking about even higher capital standard without input from congress. there is legislation coming down from congress about that though. they would have to list even more assets for sale if the fdic says, living wills are inadequate. the thing is, the new legislation we're talking about would say, to all of the too big to fail companies that you would have to put aside 15% of your equity against your assets. ashley: that is huge amount. >> that is huge amount.

goldman sachs is saying $1.2 trillion over next 15 years. that would s&p stock buy backs. that is big deal. jamie dimon already told congress, listen there is an answer to too big to fail, bankruptcy. break them up. then the london whale happened. that undercut his thinking there. tracy: cross the line, doesn't it? you can get, next thing you know they will come down on best buy because they offer credit cards. that could be indirect. ashley: too big to fail. tracy: crossing the line. >> there is a definition of what is a too big to fail. very amorphous and subjective. tracy: right. >> it is contagion, it is capital. it is control. if you have $500 billion in assets then you possibly on the radar screen to be too big to fail. aig is now around the size of ge capital. so those companies, you know, the thing is, the government subsidy, the government backing, basically does it cheap own their borrowing costs in the market. goldman sachs says no.

but the evidence is it certainly lowered their own borrowing costs. ashley: as a backup. >> that is the flipside to it. ashley: true. tracy: thank you. >> sure. ashley: still to come, the cyber threat. we talk about it all the time. this time it is a smart phone. the government is looking how vulnerable your cell phone is to hackers. we'll be right back. i want to make things more secure. [ whirring ] [ dog rks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your siness? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutionfrom at&t have the security you need to get you there. call us. we can show you how at&t solutions elp you do what you do... even better. ♪

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>> let's look at the dow 30, way more red on the screen than green. still got mcdonalds on top though. somebody's buying burgers. at the same time, though, home depot, united technologies, hp, ibm, all down at the bottom. heading to the floor of the new york stock exchange, nicole, whag going on?

>> this is what we talked about at the top of the show, at the 2 # p.m., and ben willis came over to me saying, look, nicole, this is what i'm hearing. this beginning to translate across the floor. we got the testimony of the kansas city fed presidenn pertaining to the fact she's known to be a hawk, obviously, doesn't like easily monetary policy, is in favor of tightening at least to a certain extent, and so that type of rhetoric is the thing that puts pressure on the markets the the dow jones industrials dropped to the lowest point of the day to 15100, since recovered now at 15145, but there's concerns about the policy, about how some are dependent upon cheap money, and, also, margins, another issue, an asset bubble. these are things that come to the fore front on the wall street community. let's look at the name on the move, dollar general. the first quarter numbers came in, up 3%, 3.1% to be precise for profit. you are seeing it was a good

quarter, however, seeing the stock drop 7.5% pertaining to the guidance of the company. when they give guidance below the analyst's estimates, the stock suffers result. back to you. >> thank you, we'll check back in, dow down 110 appointments right now. >> all right, the cyber threat in the palm of your hand. mobile security taking center stage in a federal trade commission forum today. peter barnes on the story and joins us from washington, peter? >> well, hey, ashley, explosion of hand held devices and smart phones, education plosion in mobile security threats at the same time. here's ways cybercrooks are getting to us creating fake versions of common apps like skype, instagram and angry birds in space creating fake wifi hot spots and hack into the signal the so-called man in the middle attack and send malware

that impersonates law enforcement that demands payments to settle fake investigations. micro cracks the growth of malware and high risk apps reporting 350,000 of them for android alone by the enof last year. experts say, time to protect your device. >> you got your contact with the family and friends, a camera, gps location, and things provide benefits to you through the applications, but at the same time, the attackers are trying to get sensitive information because they profit from it. >> what can you do to protect yourself? well, stat by backing up your smart phone data on a regular basis. consumer reports says that 69% of users don't do this right now. screen locks with pass words. 64% don't do this according to congressional records. you can also down load appty vie

rise apps, apps locaters in case your phone is lost or stolen, and if it does, there's apps that wipe the content for you from your home computer. back to you. >> that's a good idea. peter barnes, thank you so much. appreciate it. >> you bet. >> okay. so zombies need not apply for work in china. the world's second largest film market may have banned # the new film "world war disr," and dennis kneale how can you ban brad bit? >> a spokesman tells me only a version of the splashy fx effects has been handed in the censors, and no ruling issued yet which could mean the guy i talked to ain't in the loop, but it could be a blow for viacom if they miss out.

it cost $2 murks million to make, market, and china rakes in ticket sales, growing 30% a year while the u.s. box office has been down 12% so far in 20 # 13. now, china's censors throw weight around. reportedly pushed disney to add bing-bing, forced 40 minutes to be cut from cloud atlas, and encysted sony cut out china town, had an entire chinese villain cut from the remake of karate kid. why did they bulk at world war z? they missed out on horror and superstition, but harry potter was in with no wrob. what's up with that? there was a story line saying the zombie virus started in china, but that was cut out. brad pitt starred in a film sympathetic toty bet. maybe that's the factor. the crack down on protesters in

1989, maybe something didn't sit well with the film's disturbingly realistic images of hordes of human all societal controls. just saying, tracy. tracy: harry potter made it though. >> i know, and that's all about magic. ashley: it is. >> the rule of law in china was extremely flexible. tracy: there's no rule of law. >> that's the problem. tracy: good story. ashley: coming up, talk about job security, the irs official in the middle of the scandal paid to stay at home. why that kind of security is at the heart of the scandal. tracy: as we do every day this time of day, look at the 10 and 30-year treasury going to break. 10-year up 1.3%, and the 30 year moving slightly, up two points to 3.29%. we'll be right back. [ indistinct shouting ]

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♪ >> this is your fox business brief, chrysler firing back after the national highway traffic safety administration issue a recall request letter. the auto maker says 2.7 jeep grand cherokees and liberty models are safe, not defective. there's a voluntary recall of the cereal making pulling the single serve reduced sugar kin mon crunch packs due to the

presence of salma kneel la. there's the online grocery business, they have been testing amazon fresh in seattle for five years. amazon will start with los angeles as early as next week, and san fransisco by the end of the year. if all goes well, it will launch the site in 20 more urban areas next year. that's the latest giving you the power to prosper.

tracy: scandal surrounding the irs grows by the day, but a factor overlooked? the culture. working environment for the government. gerri willis has a closer look. this is what they do. >> unbelievable. this is a place, there's no failing downward, no firing, just go op and on and on. we have numbers from a poll of workers, federal workers, only 2 # --

22% of federal workers believe pay raises are linked to performance. [laughter] okay, so, i know you're in the private sector, like, what's that mean, i don't understand that? 34% think promotions are merit based, only 34%. 29% see managers taking steps to deal with under performing workers. think about it. it is the inverse. ashley: compared to the private sector. >> absolutely. tracy: so bad. >> 3% every year people are fired, let go, and in the federal government, it's 0.55%. very different there. job security rate among federal workers? 99.43%. 99.43%. tracy: it's a job for life, have a belief because they are not working in the private sector where they are paid more money in their mind, they are sacrificing working for the government, therefore, these rules don't apply to them in the public sector because they are working for the government so they are entitled to perhaps not worry about job performance.

>> what happened to the .57%, the leftover, what do they do to get fired? >> i think you have to commit some horrible crime, but the reality is that's for just, like, the first year people. if you extend out further, the rate is higher. if you look atom workers who have been on the job more than two years, the rate is higher. the reality is workers are more likely to die while they're in their job than to lose their job and be fired. i bring this up because of the irs and lerner, and we talked about why isn't she losing her job? the fact is, it would be years and years and cost us a lot of money. tracy: is already. we are paying her to take leave. what where you talking about tonight in >> this very story, of course, and we got great consumer stories, one on a new solution for cancer that researchers out there are chasing to make a big difference to the viewers. ashley: good stuff. tracy: say it's a good one.

ashley: chocolate? >> watch to find out. there you go. ashashley: i'm going with red w. time for stocks, ben willis showing us what's been an interesting day, ben, down some 150 appointments about an hour ago, and is this all on esther george and comments about cutting back on stimulus? >> i think if you look to place blame on direction, that would be a good place to start. it was interesting to see that the fact of the matter is we knew she was ill. her commentary made the website. it was taken down, and the fact it was taken down is what rattled the markets and allowed the rumor monitors to chase the market around. it was reposted and had an understanding she was, in fact, a true hawk, there's the disturbing part of the commentary was that the growth in the margin accounts on the street is what rattled the equity side of the equation.

shouldn't have been a surprise, but the market is on tenderfoot right now trying to find a direction and appears the downside is the least resis tent. tracy: no kidding. jittery, ben willis, appreciate that. it was the block, we had gerri willis and then what? ben. >> ben and gerri. tracy: that was good! three key signs that risks are fading and why it's a big concern for job growth in the country. ashley: yum. as we head to the break, look at today's winners and losers op the nasdaq including monster beverage. up 9%, seagate moving higherment we'll be right back. ♪

>> americans pride themselves on willingness to take risks bel it's a business or changing jobs, but the next guest delves into the appetite for risk, and these days, we play it safe. joining us, "wall street "wall t journal" economic's reporter ben cassleman. this bothers me. back in the clop yal time -- clean yal times k found gold. what happened? >> it should worry you. it's a concern. there's a decline in risk taking by different measures. people are changing jobs less frequently. people are starting businesses less frequently. investors put less money towards new venn tour -- ventures. tracy: changing housing has to do with housing. >> it does, but these are trends going back multiple decades, not something that happened since the recession, but trends in the ?ois and 80s.

>> where are people, it's funny because my generation, i feel we change jobs so much. >> it's amazing. we think nobody holds a job for a long time, everybody changes jobs. the data don't back that up. people are staying in jobs for longer, more people are now in jobs for five yours or more than less for the first time in decades. >> what about the notion that the government is basically challenging you when it comes to get loans for startups and things like that? >> we have a number of factors almost certainly going on here. some is regulation. you need a license now in many places to become a hairdresser. >> right, i know. >> to have a food truck. these are basic entrepreneurial ventures more difficult. >> right. >> at the same time, you compete in every sector with big companies. you want to start a book star? compete with amazon. coffee shop? starbucks. that makes it difficult. >> i suppose the aging population plays in as well? >> absolutely. you start a business when you

are younger, baby boomer generation ages k making them less likely to start businesses and less likely to move across the country or quit jobs and start something new. >> health care costs? >> absolutely. if you want to go and start a business, you know people like this, i want to start a business, but how am i going to pay for health care? it affects companies when they hire. it's going to cost money to hire people and give them health care. >> different parts of the country though are willing to take more risks than others; right? >> silicon valley, of course, see it all the time, boom and risk taking, lots of people starting companies, boston, northeast looks good, and boulder, colorado, austin, texas, the fracking revolution, people bet billions of dollars on that. look in the middle of the country or in a lot of places that were old industrial places, we're just not seeing the entrepreneurship there. >> part is too, now, they are laid off froms, can't sell the home, and they don't have skills

with them anymore; right? the steel mills are shut down. >> manufacturing is not always appreciated, but that was a core area of small business intern thiewrship, small manufacturers, and now you don't see that in the same way. sure, internet startups, but they don't employee many people and not the economic engines that a steel mill was. >> you read about the manufacturing sector as well. it is losing steam. that's not a good sign, is it? >> no. i mean, we saw really lousy manufacturing numbers yesterday. what's interesting, early in the recovery, it was driven, the strength driven by oversea sales, weakness in the domestic market, and now it's the reverse. the domestic economy looking adequate, better, but we're hit by what's happening in asia and overseas. >> ugly perp in the room. -> that's, hey, we'll take it over -- >> we certainly will. ben, "wall street journal" thank you very much. >> thanks for having me on. >> all right, a question for you. you feel like your blood pressure is rising when you navigate in the e-mail inbox?

guess what, you may be right. according to a new study, reading and sending e-mails can signal signs of stress, including elevated heart rate, blood pressure, and levels of the hormones. 8 #% of workers followed became more stressed using e-mail rising to 92 #% when e-mailing and speaking on the phone at the same time. the study finds filing e-mails into folders lowers stress levels because it helps people feel in control, but a lot of people call the blackberry, whatever you use, the leash that you're attach to the with the job. >> that's true. i use the trash folder often. i feel relaxed. >> file it in the trash. many think, oh, mid do, i needed that. >> you can see it, though, middle of the dinner, and your thing goes off, and it's just, yeah. >> neverred dpoo. >> never. liz claman goes through the last

hour of trading, a slew of chinese companies preparing to ipo here in this country. who are they? should u.s. investors be worried, on board, nervous? i don't know. liz has all that and the rest of the day's business news including congressmens from two fed governors we heard earlier today. the dow down 98 points, and "countdown to the closing bell" is nextment don't go anywhere. ♪

♪ chie new, ipo loser, at least four chinese companies making plans to blast off at the u.s. stock scene preparing to go public here. who are they? should you jump? or wait to test the waters? we all like shopping when it comes to stock, so when is the smart money buying? we have a list of value stocks. you can't afford to miss these deals. a driverless cars getting closer and closer to a reality, you'll

never guess what's worrying americans the most about them. "countdown to the closing bell" starts right now. ♪ hey, never, never, i'm never getting into a driverless car. why would i do that? i'm liz claman, the last hour of trading, so much for what could have been the 21 club. the tuesday's streak, 20 in a row, comes to a stop. hey, anything could happen in the hour, though, we're looking at 21 consecutive tuesday gains, but today the markets turned around, around 1:15 p.m. eastern. that's right, around the time we had two sets of comments come out by two federal reserve governors. here's what happened. that's when you can see the market took a leg down there. fed governor esther george released a prepared speech after she became speak. she was supposed to speak,