lori: the u.s. credit rating upgraded. the s&p with the long-term outlook for the u.s. bob dole on which sectors he is setting on for further gains. adam: m&a activity monday. $1.4 billion deal for carfax operator. lori: warren buffett worth one third less? what is the oracle of omaha feeling less profitable. adam: he is still worth billions. lori: you do want to stick around for this story. this hour on the floor of the new york stock exchange. 15, 16 points on the dow. nicole: the fear index is higher, you heard them talking about what we have been seeing which is a stronger dollar and a stronger market. now you can see the market is mixed at the moment after friday

we saw a big jump on friday when the monthly jobs report came in better than expected. the s&p called on the u.s., something front and center lineg with the fact we're watching mcdonald's, not with the global sales numbers that easily beat expectations. so here in the u.s. surpassing easily europe was strong as well, asia was a wil wildcard wh china and the avian flu. mcdonald's increased the dollar menu, increased what people wanted. the mcgrath, pomegranate smoothies. back to you. lori: thanks, nicole. adam: breaking news, apple going to show off software updates and new radio services moments away. robert gray live in san francisco with the details. talk about a new operating system, is that correct? robert: that is what we're expecting.

expecting tim cook to take the stage. apple's officials would not confirm he is doing the keynote but that is anticipated. we will be broadcasting it live. expecting them to adjust the ios. we also may see new macbook and the desktop version introduced today as well as that iradio or whatever they decide to call it, streaming music service. they basically want to keep you with an apple ecosphere rather than going to samsung or pandora. double what pandora is doing, so watch pandora shares be under some pressure. app developers on the long list including analysts and investors who say the pressure is on apple to show some while factors for what is ahead for possibly new ipad and new iphones.

that is where a quarte three qus of their revenue comes from. back to you. adam: apple shares trading up right now, but tim cook would not say if anything innovative was coming down the pike. can we expect any surprises? is this pretty much just want to be upgrades to what already exists? robert: it seems that is going to be the focus. the design with her as some have dubbed him behind the slick hardware. look for a redesign, they may make it easier for app developers and more social integration into the system, developers sit is a lot more difficult to program for apple devices than it is for google or the mobile web. so we could see more apps, which means more cash for apple.

adam: thank you very much. lori: as fle the market, stockse trading sideways at the moment after the huge jobs inspired rally tacked on 200 points. where do you go from here? the equity strategist, wonderful to have you joining us this afternoon. what is your take? >> you are right, the friday rally was a pretty impressive one but i think it was a relief rally. many thought it would be worse than expected. they still have the issue the market went down 5% from 1687. we ought to do more repair work. we will have a tremulous sort of on the market as we digest earnings that will be so-so. the pace of economic growth outside the u.s., host of things

on the one hand this, on the other hand that. lori: interesting when you talk about a bumpy road, have we seen the best games of the year for the average's? >> with the market up from the first of the year to the peak more than 15%, hard to see us repeating that in the second half. i do think we will end of the year higher than we are today, but the pace of the gains is likely to be much slower. lori: not a lot to react to, but we got the outlook long-term rating outlook to stable from negative. is that great news, good news? looking at the reaction today, doesn't seem to be a whole big one. >> you're right, no big surprise. the situation short-term has improved cyclically, but the long-term problems are still out there. working on the deficit really

had evaporated almost, which is not a good thing. we want to put the pressure on them so they get the stuff done. i'm afraid it is not today, tomorrow or the next day. lori: talk about this discussion if the fed will taper, when it might. is that not such a factor for determining where the market goes? and can the market sort of exist continuing where it is that, hold up without the fed? >> i think the fed has been a huge part of what initially got the market going, would eventually got the economy moving to some degree. how much do we need from here? it took from the first rate cut, you and i both know it will take years to move the other direction. the question is when does that start? still facing unemployment

situation higher than they would like and inflation piece of information lower than what they would like. tapering not today, tomorrow either. maybe by the end of the year. lori: are you kind of surprised? >> not really. we have been aided by commodity prices falling, some of them much too high to begin with, and of course the sticky part of inflation tends to be laid to wagering. with all the excess in people that have dropped out of the workforce unlikely to get it going. that is good news because that will elongate the business cycle and continue to give the federal should they want to continue with a heavy dose of monetary ease. lori: thanks again. >> thank you. adam: very latest development on

that nsa leak. taking a hit after one of the consulting firm's employees claimed responsibility for leaking information on top-secret data-gathering programs. rich edson joins us from washington, d.c., with the latest on this story. >> he was at the ceo befor cia e that. analysis of the office of the director of national intelligence says about 790,000 government workers have top-secret clearance, half a million contractors do and in total in million and a half have access to secret government documents. it is beginning an investigation into the case. he is in hong kong and spoke with the guardian, justifying actions in the government is holding too much personal information. >> we hav had to eventually fall under suspicion from somebody,

and they can use the system to go back in time and scrutinize every decision you have ever made, every friend you've ever discussed something with and atttck you on that basis, sort of derived suspicion from an innocent life and paint anybody in context of a wrongdoer. >> this intelligence community is reviewing the damage that has been done by the recent exposures. he or she has an obligation to protect classified information and abide by the law. if he is in hong kong, h and states has an exhibition treaty with the hong kong government. back to you. adam: thank you very much. shares of apple near session highs as tim cook kicks off the worldwide developers conference. the event sold out and 71 seconds. robert gray in san francisco with us and we will update you

on what is happening at the worldwide developers conference throughout the hour. lori: fighting for equal pay. president obama speaking out on the challenges women face in the workforce. the man who introduced the president at this morning's event joining us from the white house just ahead. adam: dan gallagher joins charlie gasparino on the future of dodd-frank reform. lori: you just heard bob dole talk about that needed transportation commodities. copper headed slightly lower. back in just a moment.

lori: oil prices are pulling back on their highest levels in weeks. phil flynn joins us from the pits of the cme. well come from china.

what is the story? raising demands on oil, right? >> right. the rising supply is putting pressure on the market. on top of that you have the rising dollar after the s&p downgrade. the most exciting news happens to come from the energy information administration today which basically raised the global estimate on shell oil tenfold since 2011. that means we have enough oil at current demand levels to last 497 years. what are we going to do after that? i will worry about that later. the u.s. is the biggest proven oil reserves in the world next to russia, finding more oil and gas supply. in the entire universe also raised supplies for oil and gas, 10% of all the world's oil is in

shale, 36% of the worlds natural gas reserves are also in shale. i'm still worried what we will do 500 years from now. back to you. lori: that is cool. >> i know, isn't that cool? the 500th year we will have to worry a little bit. something has to change, that is about what we have. lori: thanks, phil. adam: we want to go back to the floor of the new york stock exchange. nicole petallides is watching some big movers. nicole: i want to see with the new york stock exchange is in 500 years. two naaes that garner some headlines today. the call here says the bad news is really factored in to the company's stock. lot of near-term catalyst.

pushing the stock up nearly 5% today. the homebuilders are weak today when we have the change line. basically evaluation coming in from neutral to overweight saying they are seeing it reflect above average fundamentals and still bullish on the sector, but bringing that to the other homebuilders as well. adam: tim cook started to speaking at the worldwide developers conference in san francisco and since he started speaking, it has fallen back from the gains of the morning. lori: high expectations. we also talk about equal pay. from the white house as president obama speaks out for equal pay for women of the workforce. adam: doing our research to avoid buying a limit. an interview with ceo on that companies 1.4 ilion dollars acquisition, why he says carfax

will be, and this is a quote, "a growth engine." lori: warren buffett ringing out more penny pinchers then big spenders. let's check the dollar against major trading partners. it is actually weaker. weaker against the pound, but a little bit higher versus the yen. a stark turnaround from last week. back after this. we know a place where tossing and turning have

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>> 21 minutes past the hour, i am lauren green with your fox news minute. in florida, jury selection underway in georgia women second-degree murder trial. zimmerman is claiming self-defense in the february 2012 shooting death of 17-year-old trayvon martin. the room and faces up to life in prison if convicted. philadelphia district attorney has convened a grand jury to investigate last week's building collapse. six people killed, 13 injured when a four-story building being demolished collapsed onto a salvation army thrift shop. a crane operator who was accused of beiig high on marijuana at the time turned himself in this weekend. in california, santa monica college students returned to class after friday's shooting

rampage. the school is open except the library where police shot and killed a 24-year-old who killed his father and brother before fatally shooting three other people, two of them on campus. those are your headlines. back to you. lori: unfortunately some tragic news for a monday morning. the equal pay app 50 years old already. on this anniversary president obama commending the country's progress but warning there is more work to be done. listen to his remarks this morning. president obama: until equal pay truly is a reality we are here to recommit ourselves to the work that needs to be done. 50 years ago today president kennedy signed the april pay act into law in the white house. he said it was basic to our democracy. the idea that all of us are created equal. as i said in my inaugural address, the journey to the

quality is not complete until the wives, mothers and daughters. the living equal to their efforts. lori: our next guest is the ceo, introduced and commended by the president before those remarks today for innovative workplace and commitment to equal pay. ranked as the best place to wo work. welcome to you. how close would you say the u.s. is to close the income gap between men and women? >> if you look at the data, i would say 80%, much better than it was years ago, but much more work to do. adam: i was curious, do we pay too much attention to the gender situation? should we be talking with the demographic profile for employees nationwide is changing and that we will have a rise of latino and african-american employees who in some cases face a ceiling as well.

should we help those people come into management rights? >> it is all inclusive. we call it ethnicity and gender. clearly people of color have even greater challenges than just gender. lori: interesting you have policies in place where you say you evaluate employees fairly unmentionable he is afraid of speaking up. can you give us more details how you could have somebody who has a gripe whether it is a woman or a minority background has the same place to express his or her concern? >> obviously the traditional one where you would talk to a supervisor, but the most important one as we have confidential hotlines managed by an outside organization, completely anonymous you can report any and all complaints by the employees and we have a pretty detailed process of chasing down every sinnle one of those items.

lori: why do you think moore are not doing that? >> people are at different stages. we have 60,000 professionals, and so for us it is the top of the list healing with people is our number one priority. adam: are there things women can do to help themselves? there are people who say having requirements actually works against them and at the same time from your own background, you have talked openly about how you had to have a mentor who had to pull you aside and say this is a corporate culture, this is how you rise up. >> that is a great point, a great question. not everybody starts at the same place in life. the one thing people need is somebody to follow that understands how they can catch up if they are behind or get equal if it is unequal. that is an important element of what needs to be done.

lori: interesting statistic came up last week that he got all kinds of conversations going. the working mothers percentage. 40% of working mothers in the household of these days. do you see that number increasing or decreasing? >> i would look for to increase. women make up more degrees today, bachelors, masters, so by pure math result will increase, no doubt in my mind. adam: we were talking about the demographic changes taking the country by storm. what about the fact baby boomers will begin retiring and have to be replaced in the people qualified are the women working on their way up, won't that naturally bring about the quality in pay and management opportunities for these people? >> the passage of time will work things out. they will sub optimize the opportunity. you are right, but something

that can accelerate the change is what we are trying to do. lori: in closing, how does it feel to be commended by the president of the united states? >> it is pretty cool. pretty cool. lori: thank you so much for joining us, joe echevarria. adam: university of miami grad. lori: there is always a connection. adam: winning and dining with warren buffett. the oracle of omaha sold on ebay. this may sound like a big sum, -@but last year's private chariy luncheon went for three times as much. the $1 million price tag is the lowest since 2007. is it a sign that his value is dwindling?

lori: i was aghast at this only getting a million dollars versus over $3 million last year? adam: they're going to mcdonald's, not the formal dinner. lori: is that what it is? adam: no. i don't know what it is. lori: they raised 15 million for this particular charity. the very latest from apple's worldwide developers conference as apple shows off updated software. we are on the ground covering the latest announcements from apple. adam: and ihs ceo of next on the acquisition of carfax. lori: let's break it down for you. the winners and losers on the index.

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lori: stocks now. 15 minute market schek. back to the floor of the new york stock exchange. nicole petallides. little changed after a big rally on friday of course. >> that friday rally came from obviously we had a big selloff in the middle. week. we got the jobs report. we managed to move gains up 200 points. we're watching what all the ratings agencies are saying. for example, raised its outlook to stable from negative. that was good news. we also moments ago hearing from moody's raising outlook or cut-rating by the end of the year. that seems a little more uncertain. i want to look at the names in the financial realm. according, we're watching american express. that is dow component. the other names on the board

are not dow components. we're looking at groups doing well, all with up arrows up 1 1/2%. oppenheimer cut morgan stanley today. s&p upgrade lifting sentiment on some. banks. back to you. lori: nicole, good stuff as always. thanks. adam: ihs is set to acquire rl polk, the owner of carfax in a $1.5 billion. joining us is fox business exclusive. ceo and president of ihs congratulations on the deal. can i get something from the presentation very quickly. you guys talk about this being significantly accretive for 2014 earnings per share. are you willing to go out how much you expect the share price to go up as a percentage because of this acquisition? >> thanks, and great to be you can look at our history and 10 years of 18% compounded average growth is driven our stock every year pretty successfully. 70 companies joined us over that 10 years. this is one more in building out a great capability at

ihs i would imagine shareholders were happy about it this morning. i imagine they will be happy about it in the future. adam: they are happy about it. your stock is trading up over 1 1/2% at this point. let's talk about what most of us know as carfax, but r.l. polk is much greater. 60% the revenue comes from those of us who do car searches when we want to buy a car. how do you take this forward? i know you're looking potential growth oversees with this? >> thanks, adam. ihs is the leading provider of business information and analytics. actually although carfax engages with consumers, it's in fact a business information and analytics firm. so we take all that vehicle history and all that information about vehicles on the after-market, we connect it with the core of polk whiih is registration data at point of sale. that connects back up into the supply chain with ihs that provides component level production and supply forecasts globally. so you can see the

connection here and combination is pretty compelling in terms of the analytics we'll be able to provide customers that they have in fact never seen before. adam: we're talking about customers, not just people like me at the retail level who might be buying a car but you guys are engaged, ihs is engaged as a leading source of information and insight into electronics. different kinds of chemicals used in the manufacturing process. so the growth i would imagine here isn't necessarily the united states. where are you targeting? is it south america? is it asia? >> well, it is definitely global. and you have it right, adam. so we're the leading provider of business information and analytics in four very connected capital intensive sectors. from energy as you said to chemicals which includes plastics, electronics and transportation. so automotive is important. if you think about that, think about the dreamliner. think about cars we all buy every day, half of them today are electronic components and lightweighting plastics and energy and fuels to create efficiency. so this is really at the

core of ihs's business which is helping businesses in sectors as they navigate a very connected global supply chain. so as you may know a couple years ago the production of light vehicles in china exceeded anywhere else in the world. they became the leading producer. china is very important. ihs automotive derives 30% of its revenue today in asia. it is very much a global story. if you think about automotive, think about brazil, india, china, russia as big drivers of the markets for the next decade to come. adam: scott key, ihs ceo and president. fox business exclusive. great to have you with us as you announce this acquisition. >> thanks, adam. lori: we'll continue with breaking news. all the developments coming out of apple's development conference. including a new operating system. dennis kneale is here with all the details. dennis. >> lori we're moning this. this operating system is in

part for mobile, fastest growing business everywhere, right? it also involves a change in appearance. remember the problem microsoft had when it went to windows 8. got rid of click and point things in favor of sliding stuff around and it hurt sales. how much of a change in appearance will the ios be from apple? we're waiting to announce the music streaming service. pandora's stock is down 3%. little less than that lately on competition from apple if they go into streaming. will they come out with a new ipad. they came out with the mini ipad, priced it too high, at $350 competing with kindle fire from many a son at 200 bucks that disappointed. will they have a stripped down model in some way. some interesting metrics apple is revealing. showing hey, guys, we're not so dowdy and behind the curve. $5 billion they paid to apple app developers just in the past year of a total $10 billion since the app program started a couple years ago.

50 billion apps downloaded by apple customers. apple has 575 million customer accounts which is a massive number. most of them have credit card numbers with apple. and the app store has now over 900,000 different apps. never mind that most of us use about seven of them. meanwhile, one million visitors a day go into apple stores. that is 14 or $15 billion a year business just that retail store. but meantime we're watching though, what will the streaming music service be if it comes out? what is the ios new operating system look like. what will happen maybe with a cheaper ipad? i don't know. we'll keep, stay tuned. lori: if you look at the share price, dennis looks like investors are optimistic. we'll hear more about the things you mentioned. you bottom lined it for us beautifully. thank you, sir. >> okay. lori: there is apple up 4.46. still way off the all-time high up over $700 a share. adam: i don't think people bought way low seven years ago are complaining at $447

a share. lori: all things in perspective. adam: moderation. three years later are we any closer to implementing dodd-frank financial reform? lori: charlie gasparino gets answers with an exclusive interview with sec commissioner dan gallagher. we had a lot of ratings agency commentary this morning. it was basicaaly good. s&p revising the long-term outlook to stable from negative. so you've got a three basis point gain in the 10-year. they're selling treasurys today. don't need that. stoccs are flat. out the curve 30-year is yielding 3.37%. we wentut and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known seone who's lived well into their 90s. and that's a great thing. butven though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> i'm jo ling kent with your fox business brief. intel is reportedly making progress in talks with media companies to buy content for its upcoming tv service. according to reuters the chipmaker is offering to pay up to 75% more than traditional cable rates. the service is expected to launch later this year. the u.s. auto industry is gearing up for a hiring spree in efforts to keep up with demand. center for automotive research expects carmakers to add 35,000 workers this year. rising higher prices are driving car owners to rent instead of buy. rent to entire shops provide ready credit for consumers who can't get loans through banks or other financial institutions. people are forking over big bucks for tire rentals. paying up to four times the retail price. that is the latest from the fox business network, giving you the power to prosper.

lori: important anniversary today t three years since the passage of dodd-frank. well the law has not been fully implemented. charlie gasparino's next guest says it may be years before it is. charlie gasparino is here with a special guest. >> on that scary note we bring in dan gallagher, sec commissioner. before we get into dodd-frank, what does an sec commissioner do? we take it for grant, there is a commission, chairwoman, mary jo white, you have a new boss and all you guys in between. what do you do? >> all four of us, in a nutshell, charlie, we vote on all matters that come up through the commission, rule mackings like folks saw on money market fund last week rule-makings or enforcement cases.

>> sac capital or something like that. >> i can't talk about any specific cases. >> you knew i would bring that up. >> no comment. >> you got it. i think it's a good case to be made that markets are somewhat screwed up right now. we have outages at euronext exchange. we have all the dark pools where you can trade stocks off the exchange. one thing i worry about, is the sec paying enough attention to this? we see a lot of other stuff, money market rules, because basics of stock trading are markets. a lot of people like dick grasso on our air friday saying he doesn't think the price of apple is actually the price of apple because there are some of these other markets out there. >> that's right. that is huge concern for us things like what mr. grasso are talking about go to investor confidence. if investors are not confident they're getting right price we have a problem at our hands at the sec to answer your specific question i think a lot of attention has been paid may six since the flash crash. >> right. >> it has been in slices and not comprehensive review of

the market structure whether things are working be. >> will there be? is mary jo white be committed to it. >> she is figuring out what the agenda will be. i will give her time to figure that out. most folks agree the time for sec to take a step back and do a deep breath and comprehensive holistic review of the market structure. >> a lot of talk about dodd-frank. you've been very vocal. we ran a piece where you said it will take years to implement. >> absolutely. what exactly does that mean? >> people don't understand, charlie the metrics at play here. 400 rule mackings in dodd-frank mandated. sec got 100, more than any other agency. of those 100 we're 38% of way through. >> right. >> coming out election year where there was debate about wall street whether it is has been reined in. i dodd-frank reined it in three years. this is mandates for regulators like the sec.

we're talking years. >> three years away? >> depends on the agenda and prioritization. part of the problem is, some of these things in dodd-frank a lot of them have nothing to do with the financial crisis. they're based on a false narrative about the crisis. if you asked me, i recognize it's the law of the land. we have to do these things but we should prioritize our day job. prioritize equity market structure. >> right. >> prioritize other things important to investors in the markets. >> one thing would be the volcker rule. we should point out the, paul volcker, author of that rule, former chairman of the fed came out and said, listen and the president's economic advisor, listen this thing will be implemented in june. we'll know where the sort of boundaries are about proprietary trading and what's banned and not banned. some people think proprietary trading is everything including market making. will we know in june, i guess this month really what the volcker rule means? >> no. the answer is no. it is june and weill not know in june. i don't know what it will look like.

we're waiting for staff to put together a viable final rule making. i called publicly several times and my colleague troy has been for the rule to be reproposed, charlie. >> what rule? >> volcker rule. one of the problems with dodd-frank in a rush to get the proposals out a lot of work wayne really of quality that -- >> volcker rule was supposed to ban risk-taking proprietary trading, firms using balance sheet to trade stocks and bonds. in its broadest interpretation it could mean the practice of you buying, you a bank, buying securities for your clients, making a market which is what the markets are supposed to be. so in the as sense of a clearly written volcker rule right now, what are firms doing? they're just making it up? >> truth be told since the statute went into effect, a lot of firms such down pure prop desks. those are fon. those are what folks were after in the first place. there should be satisfaction by lawmakers and policymakers the thrust of this rule is met. >> there are gray areas in this market. what are firms doing in the

absence? >> they're waiting to see what we come out with. you're getting at the definition of market making. hugely important issue for liquidity in the markets. >> there is no markets, no price discovery. >> you won't be able to buy and sell a thousand shares of ibm as a customer if there are no market makers. so we have to be very careful. the problem, and i said this publicly, bank leaders are taking the lead. >> firms are making it up right now with market making? am i making am i overstating that? >> the firms are, you know, huing i think to traditional notions of market making waiting for the definition to come out from the sec and banking industry. >> is that years away? >> probably not years given the political pressure. but given months. it is june. >> i'm sitting here with you. >> with volcker. >> not a bad tradeoff. i want to talk about insider trading. as a pain in the ass

reporter you can say no comment. >> i will comment, charlie, what do you want? >> i wonder if it is too big of a regulatory priority? you have a lot of stuff going on, i'm writing a book about insider trading, one of the best, enforcement agencies i ever met was sanjay who cracked the case. he works in new york. brilliant amazing guy. i wonder whether his time and efforts and intellect could have been used breaking up schools where there is direct rip yaus going on and you as agency are sort of elevating something that, okay, listen if i trade on insider trading you will buy the stock you will buy it anyway. you made a bad decision. victimless, somewhat of a victimless crime isn't it. >> yeah, again. if you believe efficient market theory is it is somewhat victimless. i go back to the earlier comment about grasso. this goes to confidence in the markets. if people feel like they're not getting a fair shake, someone get as better price

they will not come to the markets. volumes are done on equity markets. that is something we need to be concerned about. bringing insider trading cases shows the sec we're cop on the beat. i think that helps confidence. >> is the priority it is? >> i think sometimes people confuse like the big one sanjay is bringing, galleon case it is not necessarily a priority. you can't say i'm going to find a galleon. once you find it you spend years unraveling it. we have a great team that does it. hard to argue. some people say why do you bring a $10,000 insider trading case. i will bring that debate. should we focus on boiler room or ponzi scheme. absolute limb i'm with you. where the average retailer investor loses their money. retiree has to go back to work, charlie, we should be all over that. >> i will wrap you on that. ttat is perfect way to end the segment. >> thanks for having me, charlie. >> anytime. adam: thank you very much, charlie gasparino. as we do every time, we check the dow. we're down 21 points. lori: living up to the hype.

we're back live at apple's developer's conference in san francisco. there is look at shares rising on the latest developments at the developers conference. we'll check back in in a moment. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalom.com we put the law on your side. and launch your dreams. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ly.

lori: breaking news. we're hearing more about apple's future plans and their products. straight back to robert gray live at the conference in san francisco. what's the word, robert? >> hey, lori, just outside of the moscone center. talking about updating the new line of mac books. they're talking about new macbooks on stage. they have bill schiller on stage. it will have what he calls all-day battery life. air book, macbook air goes

from five hours of battery life to nine. 13-inn going to from nine to 12 hours. he is talking waiting to speak. we'll waiting to hear what kind of price tag the new generation will v we heard earlier from ceo tim cook at the keynote. at beginning came out rapid fire with a lot of numbers. talking paying 5 billion to appear developers over the past year. 900,000 apps are available right now. 50 billiondown loads have been made so far on the apple app store. went on to talk about the mack insaul base. -- mack install base. growth has doubled for macs while pretty stagnant from pcs at 18%. pcs have the lion's share of large numbers. third biggest segment for apple in terms of revenue. they spent time talking

about the new operating system, lori. calling as mavericks as california native that is hip surfing desnation off the coast of california. lori: you like the new setup on the west coast? fitting right in. >> absolutely. you're welcome. adam: approaching 2:00. dow down 10 points. i will join tracy byrnes for next hour of trading. will the person who employed the behind the nsa leak, will that person be charged as a spy? judge andrew napolitano weighs in next. tracy byrnes and myself take you through the next hour on fox business. don't miss it.

tracy: welcome barks. i'm tracy byrnes. adam: i'm adam shapiro in for ashley webster. we're waiting more from apple. the tech giant has a revamped mac book air. as well as a desktop

operating system. investors are hoping for a music service to take on pandora and spotify. and a lot more. we'll bring you breaking details from apple's worldwide developers conference now underway. >> nsa whistle-blower comes forward. a former government contractor says he exposed top secret surveillance of american citizens. he has need he claims to china into. we'll see if the stock much his employer, booz allen gets hit. adam: the outlook on u.s. debt, why is wall street, well, why is wall street seemingly not impressed? tracy: time for stocks now. we have to talk more about that. nicole petallides on the floor of the new york stock exchange. nicole, ad today pointed it out. we're down 11. you would think the market would be happy witt the rating. >> you have the s&p rating where they lifted the rating. that was good news and helped things along. moody's came out with certain idea and uncertain vision and that brought a

mixed market. that is where we are at the market. tech-heavy nasdaq is squeezing out gains while the dow and s&p are pulling back some. don't forget we gained a lot on friday. sometimes you see a little knee-jerk reaction after the friday monthly jobs report which was good news with today pulling back. got to get to the apple conference i know you mentioned at the top of the show. it sold out in 71 seconds. we know they started with the new operating system maverick. we've been watching obviously what we're waiting to hear anything more about i-radio. several of the analysts, at least two talked about price targets above 600 bucks. right now it is at 445 and change. this was a 700 stock last september. it was $500 stock in january. it has been it something in the $400 range for quite sometime. a lot of shareholders would like to see it go back to 600. we'll get back to google. it reached an agreement to by maze.

back to you. tracy: nicole, we'll see you in 15 minutes. adam: a 29-year-old cia former employee i'd time himself as the nsa whistle-blower. rich edson with the latest on what will happen to him. >> the white house commented. press secretary jay carney says the spying programs have enough oversight and provide appropriate balance of security and privacy. ed snowed den would disagree with that. carney refused to comment on snowden's case citing government ongoing investigation. snowden says he is in hong kong avoiding the federal government. in an interview with "the guardian" newspaper he admits to releasing classified information on spying. he once worked for cia and employed at booz allen, a federal contractor. in speaking with the journalists, snowden says he as a contractor had access to a stunning amount of information. >> not all analysts have the ability to target everything but i sitting at my deck, certainly had the authority

to wiretap anyone from you or your accountant to a federal judge to even the president if i had a personal e-mail. >> here in washington there is robust debate among lawmakers with some concern that the government is monitoring too much information. >> they're looking at a billion phone calls a day is what i read in the press and that doesn't sound to me like a modest invasion of privacy. it sounds like an extraordinary invasion of privacy. >> we face a very real asymmetric threat in international terrorism and our greatest line of defense against that terrorism is intelligence gathering capabilities. >> there is also a debate over who has access to top secret information. government contractors like snowden do, a lot of them. a government analysis says 790,000 government workers have top secret clearance. nearly half a million contractors do. in total, nearly a million and a half can view top secret government documents. back to you.

adam: rich edson. as rich talked about this, man he worked at booz allen. only worked there about three months. tracy: still getting hit, right? let's talk more about this. snowden's revelation taking a toll on shareeas adam said of his employer, booz allen hamilton. the stock is trading down $1.40. snowden didn't care who he took down including himself. he believes the government could charge him with treason under the espionage act. with more on all this, fox news senior judicial analyst, judge andrew napolitano. he is basically saying do what you want. >> he believes he didn't do anything wrong. tracy: right. >> indeed in the blogs and in large portions of american society and i am in this group, he is a hero who exposed the most extraordinary violations of the fourth amendment in the history of the country. that the government thinking it can somehow justify looking at the phone calls and e-mails of over 100 million americans is

mind-boggling. tracy: right. >> the fourth amendment directly prohibits. on the other hand, the government has enacted laws, the patriot act which are permitted to go before judges in secret. there are no records kept what the judges do that are available to the public. and using a standard lower than what the fourth amendment requires, fourth amendment requires evidence of crime in order to get a search warrant. this patriot act standard requires we're looking for terrorists. that is no standard at all. using that standard, it authorizes the judges to authorize the federal government to. >> on americans. but the snoop on americans. the level of snooping is extraordinary. if he is telling the truth and government is not denying, he could have captured the keystrokes of united states, supreme court, admirals, police chiefs, librarians and anyone he wants. adam: judge, i understand the concern that the government has gone too far in its collection of data but this man went to hong kong, essentially china. if he stays there,

potentially an adversary, whether economically or one day militarily now has access to individual who had access to all the information about how we gather intelligence. that puts us at detriment, doesn't it? he chose to go there instead of stay here. >> i don't know why he chose to china, adam. the united states has a extradition treaty with china. it is bilateral. we sent people there and they sent people here for ordinary criminal prosecution. he knows and he ought to know the government is serious wanting to prosecute him. i don't see treason as the charge. i don't see espionage as the charge. but i certainly see a violation of the secrecy he took an oath to retain to himself what he learned and he violated that oath. he believes he did it for a higher good. a lot of people will agree. adam: chose a communist country to uphold democratic principles. >> he chose the communist country to try to escape the

federal government. as he says in the interview, cia, he knows where they are, they are right up the block. i know where i am. if they want me they can come to get there. tracy: paranoia things, hood on when he puts in passwords. what could osceola stepsably happen? >> i think the government will charge him with espionage, which is giving secrets to the enemy in a manner to harm us. the government has to prove that was his innent. it doesn't appear that was his intent that would be overcharging him. the government usually on street crime overcharges. that is charges for more than what they think the evidence will bear. the end result is usually a plea agreement or injuredry verdict somewhere less than what they have charged but in the area they want. they will charge him with violating secrecy laws. they will charge him with espionage. i don't think they will charge him with treason. his defense will be, i did the right thing. i was a whistle-blower. the american public was entitled to know this.

if a judge let's him make that defense, if a judge lets him make that defense and a jury buys it he will walk free. if the judge doesn't let him make that defense there isn't much of a defense. adam: what happens --. tracy: sounds like very well he could walk free i imagine. >> if the judge permits that defense. you have to get himself characterized as a whistle-blower. in order to today that he would have to satisfy a judge there at least an argument that the government violated the constitution. adam: if he asks for some kind of amnesty, do the chinese, do we have terniona-- >> thawouldot b a couny whh heould g wou bereat he wod geit. we he too aountwe n't ve a taty lke iceld. try: the judge will be following that story. judge andrew, napolitano. adam: thanks, judge. >> with apple announcing more updates is more coming? we can only hope. we're live at the apple's development conference. adam: the president is set to present the new member of

his economic team. we'll bring that trading now. [ male announcer ] in your lifetime,

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pro. tracy: apple unveiling the new mac operating system in its developers conference. our robert gray is live outside of the event with details. how are you doing. >> i'm doing great, thanks. it is ongoing right now. folks are camped out all night to hear from tim cook and other execs. they are delivering pretty much what is expected thus far.% they offered a new operating system called maverick. named after a surfing destination off the coast of california. talking about that, basically streamlining it, making it more user-friendly across different displays. offering up neat tricks, mapping out of your way

somewhere on your mac and send iting to to the iphone and having at the top of the lock screen. that would be convenient and battery life. they dufed new macbooks. macbook airshipped today. gone from five hour battery up to 11. from 13th, 7 hours to 9 hours. they're calling it pretty much all day battery life. a new sneak-peek mac pro design. they were sure to hammer that home as they come under fire with so much of foxconn in china and human rights assembling so many things overseas. we're also going to expect to hear something about mobile devices. we're still waiting to hear that from tim cook and execs later on today. tracy: thank you, robert. we'll see you in a bit. adam: go to president obama in washington, d.c. he is naming a new chairman of the council economic advisors. [applause] >> having have a seat. everybody please have a seat.

good afternoon, all of you, it has not been nearly five years since the economic crisis and punishing recession came together to cost far too many americans their jobs and homes and sense of security they built up over time. and by the time i took office, my team and i were facing bubbles that had burst, markets that had cratered, bank after bank on the verge of collapse. and, the heart beat of american manufacturing, our auto industry was flat-lining. all this meant hundreds of thousands of americans were losing their jobs each month some this was a scary time. nobody had any idea where the bottom would be. 4 1/2 years later, our bees businesses have created nearly 7 million new jobs over the past 36 months. the american auto industry has come roaring back, we're producing more of our own energy, we're consuming less

than we import from other countries, our debts are shrinking rapidly. the cost of health care is slowing. housing market is rebounding. people's retirement savings are growing. the wealth that was lost from that recession has now been recovered. all of this progress is testament to the grit and resolve of the american people most of all but also due in some measureable way to the incredible dedication of the men and women who helped to engineer america's response. and two of those people are standing next to me. two very smart economists, alan krueger, and jason furman. today, i can announce that alan is heading back it teach his bee of loed students at michelle's alma mater, princeton university. when they get together, you know all they can talk about is princeton and they're all

very proud and those of us who didn't go to princeton have to put up with it. [laughter] and i'm proud to say jason furman agreed to replace alan as the chairman of my council of economic advisors. during the crisis, alan stepped in, initially to help engineer our response assistant secretary and chief economist at the treasury department. he was so good, that we then had to beg him to come back, extend his tour, to serve as the chairman of my council of economic advisors where he's been the driving force between actions that we've taken to help restart the flow of lending to small businesses and create new jobs and arm workers with the skills they need to fill them, to reduce income inequality, rebuild the aging infrastructure and bring down our deficits in a responsible way. alan is driven by the basic bargain at the heart of our economy, the idea that hard work should be rewarded. he is motivated bit

principle that no one who works full time in the great nation on earth should have to raid their families in poverty or below poverty levels. his commitment to the rising thriving, middle class shines through in often passionate presentations at least for a economist they're passionate [laughing] and in the policies that he has pushed. and i know this will continue to be a focus of his research. are here today and i know that they're all looking forward to having alan back. and now that alan has some free time he can return to another burning passion of his, rock economics. this is economics of rock and roll.

this is something he cares about. he is giving a a speech at the rock and roll hall of fame. he has a t-shirt under his suit with a big tongue. [laughter] don't show it. so alan's become one of my most trusted advisors. he has become a wonderful friend. i'm sad to see him go. but i they that he will continue to do outstanding work. unfortunately he will still be available for us to consult with him periodically because he is a constant font of good ideas how we can further help the american people. thank you very much, alan for all the great work you've done. [applause] i'm also proud to nominate another outstanding

economist to take his place. jason fuhrman is one of the most brilliant economic minds of his generation. don't take my word for it. you can talk to other economists who know a lot more than i do about him. he has won the respect ann admiration from his pierce across the split piers across the political spectrum. he chaired coins sufficient economic advisors under. joe stiglitz, hired jason to work for the cea under president clinton. after leaving president clinton's white house. jason finished his ph.d in economics. acquired a reputation as world class scholar and researcher but public service kept calling and jason kept answering that call because he believes deeply in it. from working at the world bank on issues of inequality and international finance to developing new proposals to

strengthen our health and retirement programs, he helped to shape some of our most important economic policy debates. when i asked him to join my team in 2008, even though his baby daughter, that is right, it was, you were this big, had just been born, he agreed to serve once again. and over the last five years, i've come to trust not only his head but also his heart because jason never forgets who it is that we're fighting for. middle class families, folks working hard to climb their way into the middle class, the next generation. and when the stakes are highest, there's no one i would rather turn to for straightforward unvarnished advice that helps me to do my job. he understands all sides of an argument, not just one side of it. he has worked tirelessly on just about every major economic challenge of the past 4 1/2 years from averting a second depression to fighting for tax cuts that help millions of

working families that make ends meet, to creating new incentives for businesses to hire, to reducing deficits in the balanced way that benefits the middle class. he, jason's wife who is an accomplished writer herself, has put up with a lot of hours with jason away. henry and luoisa who are here, they have made a lot of sacrifices so their husband and dad can be here to work for the american people. i appreciate you guys for sharing daddy, just a little bit longer. and, and the reason it's important because while we've cleared away the rubble of crisis and laid a new foundation for growth, our work is nowhere near done. even though the economy is growing, too many middle class families still feel like they're working harder and harder and can't get ahead. inequality is still growing in our society. too many young people aren't

sure whether they will be able to match the living standards of their parents. we have too many kids in poverty in this country still. there are some basic steps that we can take to strengthen the position of working people in this country, to help our economy grow faster, to make sure that it is more competitive, and, and, some of that requires political will. some of it requires an abiding passion for making sure everybody in this country has a fair shot. but it also requires good economists. i know it is called the dismal science but i don't find it that dismal. [laughter] i think it is actually pretty interesting. alan, jason, appreciate that. so sometimes the rest of my staff thinks, you know, obama and is getting together with his economists

and they will have a wonk fest for the next hour but, but this stuff matters. it is not just numbers on a page. it makes a difference in terms of whether or not people get a chance at life and also, how do we optimize opportunity and make sure that we don't hhve a contradiction between an efficient, growing, free market economy and one in which, everybody gets a fair shot. and, where we're caring for the vulnerable and the disabled and folks in our society who need help. so, a growing economy that creates good middle class jobs, that rewards hard work and responsibility, that is our north star. jason shares that focus. i know alan shares that passion and jason's new role as the chairman. council of economic advisors he will be working with some of our country's leading economists including jim stock who has joined us and i'm relying on them to

provide analysis and recommendations with just one thing in mind. what's going to the most good for the most people in this country? not what is best for a political party. not what is best for a special interests. i don't have another election. it is not what is best for me. what's best for our middle class. and everybody who is working hard to get there. that is what the american people deserve. so, i would urge the senate to swiftly confirm jason furman and i want to again thank alan for his outstanding service. i want to thank jason and his family continuing to serve the country they love. for all the economists in the room, thank you for, for the occasionally underappreciated work that you do. [laughter] all right? thank you. [applause] adam: that is president obama naming jason furman as the chairman of council

economic advisors. calling for the senate to ratify that quickly. this is a man who also the president said at the forefront and front lines of all the major policy decisions that have been made. he helped shape the aca, obamacare. the president said he is straightforward, unvarnished advice what he craves from this man and that he understands both sides of an argument. well will find out if people on capitol hill would agree with the president. tracy: right. actually been in washington though back since clinton. he has got some experience. adam: got some credentials. tracy: we know what happens in academia, they leave. there's that but dr. jason furman in for a while now. alan krueger back to princeton. let's talk about this u.s. credit picture because we've got an upgrade today. this is brighter, at least according to standard & poor's. what could it mean for your money? we'll have that next. adam: first here is how the money is moving right now, at least the dollar against other currencies.

medical

>> 90 minutes until the close, annie coal -- and, nicole, we're down ten and were more when the president was speaking, though. >> we had volatility, recently, unlike over the last week and a half or so, more volatile, swings of the hundred points, triple digits, the ups, the downs, and now, back and forth, mixed market, but none of the thee averages move more than one tenl of 1%. right now, down 12 points. taking a breather after what was a very big friday. facebook, a name we follow so closely, the $38ipo last may,

now it's in the $24.27, up over four and a quarrer percent on an upgrade with the price target of $29, and jpmorgan upgrated, but think the shares bottomed and bad news is factored in and ignored the near term catalyst like back to school, instagram, advertising, and there's a lot of potential for facebook, but it's up almost a book. >> i don't know, the teenagers don't use it though. i'm hearing they are finding other things. nicole, my kids are done with instagram. it was hot. they are fickle as, yes, little teenagers. >> advice from her kids. >> they are done. >> the market not impressed with news or your kids for that matter that starn and poors reaffirmed the aa rating on u.s. debt and revised the credit

outlook to stable from negative. with more, the bottom line. >> guys, we had news break within the next hour, moody's says they are threatening to cut the usa's aaa rating within the next year or, get this, they will possibly swing in the opposite direction and raise the negative outlook to stable. again, moody's threatening to cut the aaa or raise the outlook to an improved status of stable. i have not seep that split decision from any agency in awhile. the s&p action, a lot of headlines came out under the radar screen. they reaffirmed the status, and that's important, and they said that the outlook improved, but the other headlines were this. seeing inflation as stabilizing; right? it's a stable picture on unflags. that means that the s&p is given the fed more support to do more bond buying; right? they also said the federal rereceiver outlook raised to

stable as well. they get a good note, s&p gave a good note to the feds' balance sheet and getting back to the what was said about the u.s. fiscal picture, competitive, but slow improvement in dc, and they like the fiscal cliff deal helping to reduce the deficit. >> okay, so -- but, with threats of us downgraded, we're in a pappic, downgraded, and it's not a big deal. is that why we are not reacting? >> remember, we reported as you reported on camera too, right before that the bond yield spiked to 2.7 and plunged because of the eurocrisis because people floated into the u.s. after the eurozone crisis. we were, of course -- which we are, a safe haven, the ten-year bond yield is not moving. our senior editor is tracking it at 2.2%.

you know, whether this is already understood by the market, that seems to be the case. what s&p or moody's is saying. what is missing in all of this, and this is important for the viewer and s&p, no mention about economic growth slowing down to 2.2% or 2.5%. that's what's keeping back any debt in this country; right? the growing economy, the bottom line. >> thank you very much. >> sure. >> good. all right. the next guest says the u.s. equity markets are very volatile place to be. he suggests being cautious. that's the way to go. joining us now, the diversified financial consultant president with more op these safe havens right now. looking i know you have a lot of clients of all different ages, but you're looking at capital preservation, aren't you? >> priority one. >> why hasn't it turnedded yet? why vice president people said, dive in, make me money. >> well, we are getting --

because of the cash position, averaging 20% cash. >> that's a lot, i think. >> a lot for us, it is. we've been through already very volatile times. people look at the news and s&p and miss the picture. the market's doing great, but look what's happened with the nikkei; right? a tremendous year, and then collapse correcting 18% almost 20%. we bounced back a little. but if you bout at the top, you would have been crushed; right? people think they take times and years to unravel. in a 30-year period, bonds lost 4% of the value in 30 days. reits, the darling of the market, don't worry about it, real estate's great, 7-10% correction in reits. the s&p and -- we went through a hickup in the last ten days or

so, we have not really seen any significant correction in the dow and s&p yet, but i think we're going through that time of year where we could see a little bit of a pull back. >> because everyone's calling for this, and we're like where is it already; right? in the intrerm, you are moving into the beat p areas, aren't you? >> sure. we started the year being cautious, and now we look out on the horizon going well, they have been beat up. focus on reits. do we really think the real estate market's going to collapse or interest rates will go substantially higher over the next 12-18 months? probably not; right? it's an opportunity buy. maybe it's time to ease a little bit more money into that spice. the mlp space, great space, really well for the clients, got beat up. maybe time to ease dollars into that. >> emerging markets too. >> love emerging markets. they reacted to china, gdp was slowing, u.s. barely growing,

and up 2%. the merging markets feed into the economies right, and in 20 # 14 is spoken of highly, bring money in the space. >> you mentioned japan, which is interesting because last night, they came out said we have to cut corporate taxes which the united states should listen to, but that could be a positive sign to get in now. >> from january, it's the space to be. 3% in the nikkei yesterday alone. it's crepghted substantially maybe created a floor. time to start easing some money in. don't go in head first. ease in. >> great investment ideas. diversified financial consul at that particular time. good stuff.

thank you. >> apple, shares of apple losing steam as investors wait for more out of the tech giant's worldwide developer's conference. they see an upside for the stock who will be here coming up. >> but as we head out to break, let's shek on the en and 30-year treasuries. dow down 11 points, and ten-year up two basis points, and not moving a whole heck of a lot. the 30-year, 3.36%, up two basis points. points. we'll be right back. my mantra? always go the extra mile. to treat my lotestosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal about 2eeks in most men. axiron is not for use in women or anyone younger an 18 or men with prostate abouor breast cancer.en. axiron is not for use in women or anyone younger an 18 women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair

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♪ >> this is your fox business brief. home builder stocks under pressure today after jpmorgan downgraded menards to neutral citing evaluation. they are not interested they upgraded standard pacific to neutral saying the stance is positive. google is reportedly close to buying navigation app ways for more than $1 billion. the deal could be annoyanced as early as this week. they based a free app promising to help drivers find the best route. chrysler recalling 15,000 dodge dart compact cars worldwide because they stall in cold temperatures. the recall affects 2013 model cars with 1.4 liter cylinder engines and dual clutch automatic transmission. that's the latest from the fox

business network giving you the power to prosper.

>> all right. breaking news from apple developers' conference. dennis kneale has the details. hey, den. >> apple unvailing the important part of the announcement which is ios7, new mobile operating system for the iphone and ipad tablet. the ceo called it the biggest change since the debut of the iphone. it's going to have redesigned elements of the new i cons, different colors, new interface, and it's a controversial thing in these gadgets because we hate change as users. look what happened to microsoft when windows 8 had a new interface and six monthings later, recently, they had to introduce another version to let you switch to the old approach. we hate having to make changes when it comes to interacting with screens. still no word though in the

stock at apple up to two bucks today, a third percent, but no word on two others to drop. a streams music service that could blow out pandora, which is why the stock is down today, and the other is will they have a new ipad, their ipad mini came out, it was smaller than the kindle fire. we're watching the wires on that one. >> they got to do something. i ove my mimi, by the way, i love it. thanks, den. >> all right. >> apple analyst shares reactions on this coming up. >> china released a slew of economic data and numbers alarming for people. what has experts most concerned is the export number that rose just 1% year over year versus expectations of 7.4% growth. our next guest says it's just the beginning and predicts more of the slow down in coming months. joining us now patrick, silver crest asset management chief

strategist and former professor in beijing. slower gdp growth for the right reasons is okay. this is not the right reasons what we're witnessing in china. why should the united states be concernedd >> well, what's going op in china is they are driving growth through a credit boom over the past several years. >> we had that in the united states, 2001-2007. >> uh-huh. it is created over capacity in industry. it has created over capacity in housing. right now, the challenge is that they need to make an economic adjustment away from the dependence on investment in export field growth to a more balanced approach with consumer spending. >> but i keep hearing from people like yourself and jim and, you know, very wise people who say china, china, china, lies about the economic data, and that this is a country that is going to have a very hard landing.

they've been saying that, however, for the last six or seven years, and it hasn't happened yet. >> well, you know, figure of all, one of the things is you have a system that is a lot of moral hazard. that is, there's a closed financial system, and a lot of people continue to buy financial instruments to china and refinance because it's backed by the government. that keeps things going on for quite a while. you know, the other thing is there is productive potential in the chinese economy. there's potential in agriculture, logistics, retail, health care, but china needs the adjustment to tap that. in the past, with joining wto and reforming state enterprise, they did unleash that carrying them through, but right now, we don't see that reform. >> throw numbers at you to see what it means for me as and vester in the united states. i think it's a trillion dollars in new credit in the first quarter of 2013; is that right? >> that's right. that's the problem in china they have been throwing money into

the system to stimulate the economy. a lot of people say, well, if the growth slows, they have to stimulate. they have been. >> half of that is the shadow banking system, and even the own regulator said ponzi schemes. >> that's right. more and more of credit creation is taking form of risky financial instruments that kind of feed off of themselves. >> so if i buy into the china is, i don't want to say collapse, but they are in for a hard landing, how do i protect myself as a #*us invegser? >> look at who the winners and losers will be. there's o lot of countries and companies that benefited from the investment boom over the pages few years, australia, the iron ore, copper. china slows, germany sells machinery to china. all of those -- and -- >> caterpillar. that's been there. their earnings were not so terrific. are we a winner as a country? >> well, i think, you know, one

of the things that happens, china, you're going to have the investment boom, but consumption is resilient. you sell goods or food to china, that is -- that's going to ben -- beneeit. >> they want to buy smithfield, very quickly, do you see that going through? do you think there's a problem like there was years ago buying the oil company, and, you know, didn't buy anything for two years because of that deal. >> there's a visceral reaction because of the food safety scandals taking place in china and concerns here about what happens if you let the chinese invest in the food sector here, but the reality is, it opens th door to u.s. farm exports to china. you know, china is concerned about food security. they didn't want to open a door to u.s. imports, but this will open that door and be good for the united states. >> thank you very much for joining us here to talk about china, something every american has to talk about. so much of the economy is tied to theirs. thank you, sir.

>> all right, speaking of the economy, let's see the market. every 15 minutes, we go down to nicole, and this time, though, we have the pleasure of doreen, the voice of reason down there. we are down 11. i mean, i don't know does this mean anything to you? >> no, not really. you know, we have a lot of economic data coming out this week, and today there's nothing. we'll wait to see things unfold. inflation their numbers, retail sales, housing numbers, all these things are important in terms of market direction so as long as we have nothing, today, i think, there's a slow down in anticipation. that said, the only thing i think that's going to wreck the rally is the inflation numbers. interest rates go up, you know, that's a problem. >> yeah, sure will. thank you for taking the time as always. >> thank you. >> we'll talk about apple because coming up, apple unvailed the two new operating systems for mac and mobile. is it enough to regain shine

with investors in the analyst tom forte joins us. >> i can't wait. first, the dow's down eight appointments now. look at the winners and losers on the nasdaq, annie coal talking -- and nicole talked about to be. are the teenagers using it? we'll be right back. ♪

>> apple unvailing new laptops and operating systems for m oorks cs and mobile devices, but is it enough to get the mojo back with investors? the -- you were here before, and last time, you said everyone was overly optimistic with the stock price over $700 and overly possess missic under 400. is it fairly valued? >> there's too much pessimism. there's a repurchase plan for a floor under the stock, innovation to come, new products this fall, new product calendar 2014 drives it higher. >> you're saying what they announced today is not going to do much for the stock? >> we knew going into the conference they were not likely going to announce a new smart phone or tablet. they are the two most important devices. they previewed the operation system for desk top, laptop, and mobile, but what matters is the

new smart phone, new tab bet, and maybe a new form factor, watch, or television. >> the streaming subscription music thing doesn't do it either, then? >> streaming subscription now is a must-have. when google announced it, it was not a matter of whether or not apple does it, but when. i still suspect that's going to come from apple. >> it's interesting to me because so many of us, and i say "us," because i did this, we terned homes over to apple. i'm not leaving it soon. i mean, the changeover factor is very expensive for people, so while we're complaining that apple's not pulling a bunny out of the hat, we're not leaving it; right? >> the innovation in the headlines is coming from google and samsung, so if i'm a apple user, i'm loyal to apple, want to be excited, go to my friends and say look at the new device, here's the ten things it does that your samsung google device does not do.

>> we're jealous of what you are saying of everybody else and what's coming out and that i don't have it? >> the perception is all in google's favor. it's up to apple to bring it back to apple. >> so i have breaking news on apple, actually. showing off a new itunes iradio streaming service that has customizable stations. that, they are talking about right now. >> great. >> great, you don't care? >> they are playing catchup. they are catching up to google, offering a subscription service for music, helpful for the system. >> let's talk about this stock now. if i'm not in it, do i get in it? >> get in it because, again, from a product flow stand point, we don't know a lot of details other than this fall or next year as far as the timing of the new devices. i think where the stock's trading today, it is very, very low, the repurchase plan supports the stock, and the downside is minimal. >> they got beat up lately, tax hearings, you know, the tax

patent loss, and, of course, the tech slow down we talked about has somewhat changed, tech's picking up, but al factors are against them is the new phone and tablet enough? >> i think it can. you know, the buy back supports the stock, but innovation drives stock higher. those two items, form factor, a watch, television, that could drive the stock higher. >> talking apple tv for how long now? a long time. >> right. >> look at the stock price and say all the bad news, and there's been a lot lately, baked into the shares, and any positive news could drive it higher. >> fair enough. you said apple watch. you buy that whole system? like everything on your watch? >> i don't know if i'm in love with wearables. there's a description of connection, but i think that having more connected devices is definitely a futuristic trend, and apple will participate in multiple ways. >> next year, where's the stock? >> $540, the 12-month target.

>> nice, tom, you come back. we'll talk again. >> thank you. >> thank you. >> "countdown to the closing bell" is next, and don't miss a money manager who likes automobile stocks. >> ha (>> why ha? his stocks are great. his stocks are up 50% and more picks for you. "countdown to the closing bell" starts in just a few minutes. ♪ [ kit] you know what's impressive?

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what degrees give you the most bang for your buck? "countdown to the closing bell" begins right now. cheryl: i am cheryl casone in for liz claman. the dow is actually 15,263 points. little volatile day on the dow did the s&p is higher, the nasdaq is higher, a fraction for every index. into the final hour of trading. the market today can be described as indecisive. going back and forth throughout the session. the s&p rating agency forecasting and improving u.s. economy the optimism appeared short-lived adding to the volatility of trading today. here are the top stories right now. robert gray in san francisco.