adam: hello again, everyone, i'm adam shapiro. lori: i am lori rothman.cc7 the japan nikkei plummeting overnight. former fed insider here with the global market weighing. what the banks will do next. adam: the tech heavyweight microsoft reveals it his new pls to compete teaming up with best buy. microsoft windows ceo on the new strategy just ahead. lori: that will be good. and lou dobbs on what snowden is time china now. adam: five people dead, more than 5000 injured as a turkish prime minister issues his final warning to protesters. we want to check how your investments are doing. the floor of the new york stock exchange, nicole petallides, the dow is at session highs. nicole: it really is.

today is a different picture, the volatility index is to the downside. we have come off of the lows prior to the dow's opening. we saw futures the downside, though back and forth, here we are up 100 points. watching the nikkei into the bear market. talking about the carnage acro across. but did say a couple of things that helped the market along, rocking the 10-year and the yen rallied, so we are off of the lows and the session high. those shares are soaring. we are seeing the shares up 28% entering more, doubling the presence and broadcast because of "usa today" and newspapers and the likes. lori: fear of the fed tapering,

stocks falling into bear market territory as investors around the world are trying to determine central bank policy. perhaps it was too much of an overreaction considering the u.s. stock rally underway right now. to help put this in perspective, expert analysis, the vice chaarman and chief monetary economist, former executive vp for the federal bank of atlanta. welcome to you, sir. >> thank you. good to be here. lori: do you think the market is giving clear signals in so many asset classes that we are bracing for central banks begin the process of scaling back >> scaling back is a major problem we face. one of the things we have learned is even a few words from chairman bernanke in his testimony in the fed minutes can really have a big impact on the market. you heard lloyd blank line referred to the fact the market is going to react and the market

is nervous. and i think that is exactly what we're seeing. lori: referring to the may 22 affect, they release the minutes, it caused almost confusion in what the next fed will do. having said that, how does bernanke now come to the next set with next week, it is a biggie because of the press conference and a statement on where the economy is headed as well. so how does the fed navigate from here? >> i think that is a key. i don't think they are ready to make a move yet, and the abrupt change having a signal based on the 22nd reaction that you just mentioned. my experience is the fed does not intentionally create

uncertainty or intentionally cause the market to react this way. i would expect them to try to smooth things down and use the press conference to send a clear message this time. lori: do you believe the fed has a firm exit strategy in place that it is ready to pull the trigger when the time is right? >> talking about whether they want to change the principles they articulated in 2011. they didn't reach a decision on that. i don't think i have a strategy yet in place to have a consensus formed around, that is the problem. the economy is improving clearly it is doing much better than it did, but we are still a long ways off the 6.5% unemployment objective, and so i would be surprised to see them do anything but try to calm the markets and say it is going to be a while before we do

anything. lori: lets look at the monetary policy from a global perspective because japan pulled off and expectations if the u.s. federal reserve starts tapering, all of that liquidity which has been a benefit to emerging markets would dry up, so should the fed the u.s. focused or should it consider the reaction in japan and what it could mean for investment market? >> i think you raise a critical point because all the central banks, the major ones engaged in various kinds of quantitative easing. there is a lot of liquidity and if one country start to tighten, that will create a jump in interest rates convincing lloyd blank line is right in that respect and that will set up an opportunity. it will be awfully hard for one central bank to act independently of the other. unfortunately the economy is not operating in parallel. that is an added complication

which spells cautiously. lori: thank you very much. we will see what's next week brings for the fed. hope to see you soon. adam: turning our attention to turkey. when you consider the trade between the two countries, protest hitting the two week mark, over 5000 injured and the prime minister has had enough, now demanding an end to the occupation of the tax and square. for morris was happening, we are joined by vp of global analyst at global intelligence. thank you for joining us. is there a threat to the economy of turkey of these protests escalate or are they now coming under control? >> for one, don't think you will see sustained massive demonstrations across the country. we very early on made sure to make clear to our readers while

it is very distracting to the se protesters getting tear gassed and it brings back memories of protest, this is not the same thing. you can see the protest petering out. people are losing interest. that does not mean it is a long-term political challenge, but i do think the short-term market jitters are going to level out. lori: this all started as an environmental protest and evolved into a political protest with all sorts of different grievances. if they are managing to contain the situation, was anything accomplished? >> for one thing, the seal has been broken. particularly in the past three to five years has been very effective in committing its rivals and neutralizing the opposition. now especially if you look at turkish media which is very politicized us uc newspapers gog back again becoming a lot more

critical. even former allies becoming much more critical. business lobbies will become much more cautious with the government trying to create a short distance not going against the government to avoid government backlash. politically things are going to get much more complicated in turkey in the business environment, but that is a long-term challenge, right now there is no political contender that can seriously compete with it in any upcoming elections. adam: 60% support for the prime minister and his party but he has been driven toward religious conservatism, for instance after the eu denied turkey entrance into the union the economic union any chance they might be getting entry into the unions, or is that not going to happen? >> that is a reality even more pronounced of the european union is in the economic decline, and turkey a very strategic

position. it can reach a lot of different markets to the central asia and it has very resilient small and medium businesses that have been adapting to the economic downturn. so turkey's bid for the eu is more symbolic, it is not a realistic bid. a lot having knowledge that with time so really the eu bid itself is irrelevant. when you have a more secular leaning class in turkey that want to identify more with european values and is against a more social conservative values in recent years. lori: a quick comment on tourism, such a public tourist destination, the turkey travel website puts it at 23 billion u.s. dollars receipt tourism to turkey. just look at these pictures around the world has to have an impact, do you agree? >> absolutely.

this cannot come at a worse time for the government and this is the peak of the tour season. running pretty long in turkey so there would be some recovery, a protester unlikely to be sustained mass demonstrations across the country even right now, there are few protesters that have put up tents and will be cleared out quite soon. but we may see demonstrations come up, but remember 60% of the country is still in strong support of the government, they do not have an alternative, they have benefited from the past decade of the parties rule and has an economic benefits come from that. adam: thank you for joining us on fox business. >> thank you. lori: goldman sachs ceo lloyd blank fine speaking out on the economy. at a politico conference he says they have taken root and falling

back into recession is very low. warning a fight over the debt ceiling will hurt the economy. shares are soaring to a new high on partial victory in the supreme court, the court ruled human genes cannot be patented synthetic material can be. holding patents related to the cheto genes. and a recent trade by lululemon raising eyebrows. selling 50 million shares of lululemon days before the departure. the move is totally legal. company executives can trade their stock even when have access to private information. he saved himself a huge losses the stock plunged 17% earlier this week on that news of the ceo stepping down. adam: the "wall street journal" today whole thing on it and you and i have three to investors get left out.

lori: a good point h to make, we will see if changes are coming. adam: talking about change, microsoft coming to your neighborhood. we will ask windows cfo about the tech giant new plan to partner with best buy. lori: okay. $150 million in upgrades later, the carnival ship described as the cruise from hell heading back to see. adam: and the soggy course getting drenched. the latest on this massive storm just ahead. we went out and asked people a simple question:

how old is the oldest person you'venown? we gave peop a sticker and had them show us. we learned a lot of us have known someone who's led well into their 90s. and that's a great thing. but even thgh we'rliving lger, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you ma re you have the moneyou need to enjoy all of these years. ♪ lori: as we do every 15, let's

check the market. nicole petallides on the floor of the new york stock exchange. looking at a few winners. nicole: i am indeed. the dow up 83 points looking at a couple of names starting with blackberry. giving the stock a boost by their commentary of 5.3%. they have done their own research and found the sales of the new phones are much better than many expect and i have raised their outlook. taking a look at safeway, selling off the canadian assets, unsolicited, as a result the s&p 500 stock is jumping up 8.3% at the moment. adam: something we all like to do, make money. revisiting apparel stock. you had previous he talked about it a few times back in march. >> took profits april 11, made a big pop, he has pulled back, the last quarter they beat the

estimate by 133%. it has been a little bit of an iffy stock because of sheepskin prices. i like what is happening with sheepskin prices. down 39% from june of 2011. one of the big overhangs, and they really have turned it around. we haven't pulled the trigger, but i think probably in the next day or two, we will. the only thing i am waiting for is volume. they make uggs. lori: is the refusal issue? >> there is a little bit of a seasonal issue. i have the regional stores, they are always packed. we will hear a little bit more about what they are doing and on the 18th they will be at jefferies. i think we hear more from management, the volume picks up. i think it is oversold, really

pull the trigger a little more volume. adam: like west 68th is always packed. >> always packed, it is amazing. sometimes go with the crood. lori: that is how i feel about lululemon. that is one solid product. >> i think it is not is not to buy the stock down here. >lori: triumph carnival ship heading back to see after the upgrades. you may recall the engine fire in february that made national news video passengers stranded at sea for several days. the triumph expected to set sail today at 5:00 p.m. local time and believe it or not it is completely booked. the upgrades including new bars and restaurants but the carnival ship has been outfitted with advanced fire suppression systems. shares up more than 20 .5% on the day.

adam: that is the issue that was the problem. let's keep it clean. microsoft, everybody had some exposure to microsoft. the major deal bringing tech closer to your neighborhood. microsoft windows ceo tami reller on the new store within a store contest aspec at best buy. lori: charlie gasparino coming in with a possible nasdaq acquisition. coming up after this. ♪

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>> it is 23 minutes past the hour. hi, everybody. this is your fox news minutes. an update on the stormy louisiana we told you about at least 30 people injured and emergency crews still at the scene of an explosion and fire at a petrochemical plant in baton rouge. they make highly flammable gases. high winds and record heat, dry conditions are fueling several colorado wildfires. a blaze near colorado springs this drunk 360 homes making it the most destructive wildfire in the state's history. firefighters are battling

wildfires in new mexico and california and in oregon. play resuming in the first round of the 113th u.s. open, they had lightning, strong rain and it suspended the national championship at the national golf club in pennsylvania. several more severe thunderstorms are heading to the mid-atlantic region later today and tomorrow. so be careful out there. back to adam and lori, you are dry where you are. adam: thank you very much. lori: i thought it started at 2:00 eastern. adam: despite a fumbled ipo, facebook is looking to expand. it is with the details. but before we get to that, tell us about it. lori: you had a nice little hit. you wrote the book.

>> his rise, his fall, his rise again. there is mild interest in it. there's an interesting item on page six today, just saying it is interesting. lori: you're asking ben kingsley to play the role. >> famous kitchen, i am friends with frank, they left me in the bar, don't have a table there. but dick grasso does. that was his unofficial office. it would be a good movie but about seven years after. adam: be careful with hollywood. it will twist your script. it will be calories and paris hilton. the nasdaq. >> nasdaq is discussing further acquisitions. bankers are warning this.

if you buy something that sizable, expect a ratings downgrade. nasdaq is one notch above junk. junk bond status. which means if they do go out and they buy something given the capital levels and the debt is kind of a good way to finance stuff now, there's a good chance nasdaq will get downgraded to junk. that is what bankers are telling them. they are telling them yes, they are basically saying their main goal now is to sort of consume the part of writers. right now it is to consume it and reduce leverage which means understand if they want to grow, they buy acquisition, have to get down. they have it going private.

the carlyle group, talk about merging with another exchange, this conversation does not preclude something like that. i believe in my sources there will be consolidation in the exchange base over the next year. now that you have dodd-frank out of the way, these exchanges, the nyse merger pending relative approval. right now nasdaq would like to grow, being told by its bankers if you want to grow, you will be a junk bond. adam: is there more trading going into a? >> nasdaq's problem is particularly debt. they have a high debt to the dollar. the bottom line is for the average viewer out there, they

have a lot of debt on their balance sheets. if you are going to buy something, you have used cash or stock. think about it, -- lori: the junk bond of today is not the junk bond of yesterday. >> there is a huge balance listings, your stock exchange says look at their technology, it is real. the nasdaq has come back and tried to use the night implosion as that occurred on the new york stock exchange. can you imagine if they were a junk bond. adam: the nyse would go to town. they would love it.

>> i just think right now theyy% are kind of interested in expanding. the being told by their bankers if they do it, they are junk. charlie, your sources are right, we're looking to reduce leverage. lori: is this the only option for them? >> i don't have the capital to use it without debt. doesn't nasdaq have a cast on the balance sheet? it is consumed too many acquisitions as it is. i would say one of the best ceos. the facebook screwup in terms of managing stuff, this guy knows what he is doing. he made a comeback.

lori: are you sweet smelling or juut stinky? lou dobbs ahead on what they are taught a chinese newspapers about snooping. adam: and the east coast is bracing for more powerful thunderstorms. the flight forecast next. she's alwayseen able to brighten your day.

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lori: ooay. time for stocks now. as we do every 15 minutes. let's heaa back to the floor of the new york stock exchange to check in with nicole petallides. you've got your eye on coty. what is the story? >> this is big ipo, the billion

dollar ipo category. turns out it is not doing too well today. shares down nearly 1%, sitting at 17.34. priced in the midpoint of the ipo range and it is to the downside. i want to show you some products to show you what they gave out and give you familiarity with company. calvin klein perfume. sally hanson nail polish. the scandalized mascara. they certainly have popular names. lady gaga. just to name a few. vera wang was here today. this goes out in history in the top ten losing ip offs over a billion dollar. palm, you may remember back in two thousand was a real winner. back to you. >> i've seen that blue nail polish on everyone. that is so popular. we'll see if that holds up. thanks so much, nicole. adam: not so popular, metals are the big losers in the market. fox business contributor

phil flynn of price futures group is in the cme. phil, is this because people are worried about china or is it the fed? >> i think it is the fed. it is another manic metals day instead of a manic monday. we've seen a lot of volatility. actually china coming back into the market. we saw the physical demand for gold pick up a little bit. it had fallen of course because of restrictions in india on purchases. i'll tell you what. they're looking at the bond market. they're looking at dollar. looking at the euro and the bond auction. right now if you look at fold, we're down $14. back to the 13 # 7.70. silver is down 23 cents. the other market a good judge of economic growth is copper. we saw tighter supplies than expected. we're up rallying to higher end of the range but we're down again. that is china as opposed to anything else. back to you. adam: phil flynn, thank you very much. lori: all the buzz and

watercooler chat is about the weather, severe weather making its way across the midwest. wreaking travel plans havoc with storms in the northeast. rich, how does the weather look although you're inside. >> i can see outside though. it is sunny. we have the pop up thunderstorms coming down across the area. we had a pretty strong front with system move through couple hours ago. we're bracing for more. we have delays, about 36 of them right now on theeairport screens. you looked up and down the east coast, those storms are really slowing down traffic. dca, we're at about 53 minutes. lagarde i can't, two 1/2 hours. philadelphia, an hour and 20 minutes. newark, more than an hour. jfk, 42 minutes. if you look at reason why, we're worried about later this afternoon because of what is going on in west virginia right now. another storm front is developing this one is supposed to be worse than the one a few hours ago. that is supposed to come through the east. folks in washington are thinking

last year the storm that rumbled through june of last year. folks in the d.c. area didn't have power for a few weeks. there are weather forecasters saying there is the potential we could look at something like that again. so d.c. braces for this afternoon as the rest of the east coast waiting for the second front to come through. lori: are you meteorologist also, rich? >> i need a wall here, right? i should get a wall with cloud formations. i think that would really help. >> did a fantastic job, rich. thank you. >> thank you. adam: good to see you, rich. the lake that keeps going, drip, drip. we have new details that what nsa whistle-blower edward snowden is reportedly confessing to china right now. lori: lou dobbs is next. fbi director robert mueller is grilled on capitol hill. adam: look at ten year treasury yield.

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shopping season. the company spokesman says to assure appropriate staff something there and not a consist cutting move whatsoever. yahoo! plans to delete all user names that hasn't been used in the last year. they hope to help customers. in order to avoided a purge, you have to act by jewel 15th. that is the latest from fox business.

lori: well the head of the fbi defending the legality of the nsa snooping in testimony in front of the hoist judiciary committee. here is some of it. >> the fisa court has approved both programs and these programs have been conducted consistent with the constitution and the laws of the united states. and the programs hhve been carried out with extensive oversight from courts, independent inspects general, and congress. >> meanwhile the man at the center of the controversy, nsa

leaker edward snowden, you see him here, well he is still on the run from authorities and he is still claiming to be in hong kong with no plans to leave. he is now telling a chinese newspaper that the u.s. has been hacking hundreds of chinese targets since 2009. time for lou dobbs. we established we believe edward snowden has broken the law and not consideree aheer row in all of this. >> have we established that if. lori: i think discussion from yesterday. >> absolutely the case. those who are trying to lion eyes this man are, well, they are best premature. lori: i totally agree. he absolutely broke the law. whether or not you agree with him, prism program is legally. had high security clearance. >> he hasn't proved half of what "the guardian" or "washington post" said he would. you heard robert mueller the head of the fbi say there is no indication any part of these

programs are outside the law or oversight of the congress or the relevant courts and authorities. so, this is a man who is now es sconced in hong kong. obviously focused on chinese interests, not american. he's violated his, his duty to the united states government. adam: one of the things with civil disobedience you are willing to suffer the consequences of that disobedience. let me ask you the question. i love to play devil's advocate. at the end of the day is anyone surprised we're hacking into chinese computers since 2009? what has snowden actually revealed that our government has been up to? >> his statements don't make it sew. he has not corroborated his allegations or statements, number one. nummer two, the statement is on the table as cyberattacks and front companies being operated in the united states bit people's republic of china and right now it is not the nsa. it is not the cia and the fbi and the justice department who

are on trial here? it is edward snowden. his conduct, his statements. adam: i agree with you. >> reporting of two -- going to be devil's advocate. here comes the devillers go for for it. >> the fact of the matter he made assertionings and allegations unsubstantiated. these newspapers have made ales against our intelligence agencies that you heard mueller say. adam: you don't hear a lot of talk about those. this man worked at the cia. god forbid he faust into the hands of chinese who i'm sure -- you. >> don't think he is in the hand of chinese? he is in hong kong. talking about chinese interests. adam: we need him back here. to your point he hasn't corroborated what he said. that is a good sign, isn't it? that means the intelligence we need to protect in the united states has not leaked out through this man who is a loose cannon? >> you know, i don't know what we can infer from his conduct to this point, other than, thii is a person who went rogue, who has gone through an extensive vetting process by this

country's contractors and in the case of booz allen hamilton, contracting to the nsa, through a vetting process. through polygraph examination, psychological examination, somehow he made it through. that is the biggest issue here is that in this one instance out of ten upon tens of thousands of employees serving the government, they made in this case one mistake obviously. the rest of it, the drama, the public dance in the newspapers and media, raises questions. we just don't know but we do know that there seem to be some people also eager to attack our intelligence agencies, and our military, that are the two most trusted aspects of our federal government. i just mentioned mueller. part of the justice department. the american people have no faith in the justice department. the chief law enforcement in the country is under contempt of congress. the state department, i mean, these are scandal-ridden

departments of a federal government that is not held in high esteem by the american people. and lord, congress itself walking around sanctimoniously here and the way they were talking to general alexander, the head of nsa yesterday, and in thaa committee hearing, my lord. you would have thought they were the one sitting on a mountain of respect and regard. it is the inverse. david: congress is rated lower than reporters. that should tell you something. >> well, it tells me that congress is rated appropriately. david: reporters are not rated that high, so yes. lori: lou, thank you so much. make sure to catch "lou dobbs tonight," 7:00 and 10:00 eastern. >> is adam trying toosay i'm a reporter? i am confusedders i would never call you a reporter. maybe a member of congress. i'm not insulting. as we do every 15 minutes let's check the markets. ben willis is on the floor of the new york stock exchange. ben, we'll up 73 points.

we'll take it after what we saw yesterday. is there fundamentals driving us forward or is this back and forth of speculation? >> the upside move is not fundamentals as much as technical. the overnight session we hit 1598. the relative low from recent lows intraday. we bounced off that. that added to the fuel of a bounce after three straight down days which we have not seen this year. we actually had quite a run where we had not seen three straight down days. set a new record. so that's, i think that is mostly what we're seeing today and the lack of volume is also indicative there is not a lot of conviction in this upsiie move. adam: forget a black swan event, is there a white swan event, something perhaps that could really set the market on fire forgetting the federal reserve? is there something that we could look for that would set us on a positive trajectory for good? >> yes is the answer to that but it will come out of the fed. most people, the market has swooned on the idea that the federal reserve will taper and walk away and interest rates will rise.

i have news for you. that is a fundamental great indication of a healthy economy and the justification of p-e ratios being low by historical standard. companies will then be able to make more money, hire the more people, the economy will improve. weeve been sputtering along. if the fed starts to tell the world we see things a little better, the glass is half full and getting full, the rest of the market will participate to the upside. we've seen the selloff because money has been in safety of u.s. government bond market and that is going to turn out to be a huge mistake if you don't get out of that position while this tapering takes effect. adam: ben willis, thanks very much for joining us from the floor of the new york stock exchange. we'll be talking about microsoft in our next segment because microsoft is battling apple on a lot of fronts. retail stores, unfortunately they are, but retail stores, no exception. the tech heavyweight reveals new plans to compete, teaming up with best buy. we have microsoft windows cfo on

the company's new store within a store strategy. lori: all right. let's show you the market. we have the dow up 77 points. these are some winnerr on the nasdaq right now. sears holdings, altera, fossil, the watchmaker is up better than two 1/2%. a solid day with a nice turn around. we're back in a moment. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the worldoves... fures move first. learn futes from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

adam: microsoot versus apple, the two granddaddies moved earn tech have been battling to win consumers for as long as they both have existed but now microsoft is going to heat things up on the retail front as they have just announce ad partnership with best buy to launch a store within a store. microsoft windows cfo and cmo joins us with the big reveal and why did you decide to do this? it is not quite the apple store

concept. it is something different. a store within best buy. >> yes. so yes, thanks for having me on. i mean the best buy and microsoft relationship and partnership is long-standing and we get to take it to the next level to be really be able to give customers an even broader and bigger and better hands-on experience and the time something great. we have so much innovation coming to market. you know, both from microsoft as we as from our partners this gives us an opportunity to really bring it into a great environment and let customers be, you know, hand-on with the products. and we want it to be set up really well to give customers hands-on experience with devices that are coming to market for back to school and into the holiday. that's why the time something really quite perfect. adam: and this is going to start i guess soon after the launch of windows 8.1, what had been originally windows blue, which is the upgrade to windows 8. you will have only roughly 600 stores within a store where one

of your competitors, samsung has 1400 stores within the store. wouldn't you want to at least be on parity with them or is it sufffcient to have 600 in north america? >> here's what we're able to do with best buy with this partnership and this investment. in 600 stores we'll have a large, dedicated, section to the windows experience. not only will it showcase all the latest devices but also show how microsoft products work together across phones, tablets, pcs and the living room. so all of that will be showcased including the latest and greatest devices from our partners and as well as microsoft surface. within the departments of best buy you can see the latest from xbox and see our phones and our partners tablets in the tablets section. so it's a very substantial footprint in these 600 storess in the rest of the best buy stores we'll also have great microsoft experiences and windows experiences and as well.

one of the things -- adam: tammy, let me interrupt you if i can, i'm sorry. >> more dedicated experts to help customers as well. adam: i understand having experts there, this is, microsoft is in the middle of a transformation. pc sales have peaked as we know from idc everything is going mobile. isn't this what is really part of to capture some of the tablee market, the windows phone market? you sold 900,000 tablets in q1, because you need to up that won't this help do that? is this a response getting to the critics that windows 8 and 8.1 have to deliver far greater than they already have? >> it is absolutely an opportunity to allow customers to get hand on with our tablets with all the great convertibles and detachables coming to market. it is absolutely part of what windows 8 set out to do which is get more mobile devices out into the marketplace. absolutely part of the vision. adam: the stock is up 31% year-to-date. today it is down a bit. when do you think we'll see you

guys jump again? will it be with launch of 8.1 later this month? >> well, our focus is really to make sure we're innovating and we're bringing that innovation to market in a way customers really see the value. that's why this type of partnership is a great example of allowing customers to not openly see it but get hand on enough with the products to be able to make a great decision for them. and of course that's the vision of windows 8 which is from the smallest tablets to all the way up to touch laptops and all in one. you get the benefit offwindows. that's what we're focused on. adam: tammy, a lot of us grew up with windows and wish microsoft and you all the best. i have friends with lumia phone with windows operating system and they love it. we'll see with the hands-on experience with 8.1 later this june. >> thanks very much. please do. lori: markets in rally mode. the dow is up 90 points. ashley webster and i take you through the next hour of

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great businesses deserve unlimiterewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male aouncer ] get e spark business card from capitalal one and earn unlimited rewards. choose 2% cashk or double miles on eve purchase every day. told you i'd get half. what's in your walle lori: welcome back to markets now. i'm lori rothman. ashley: i'm ashley webster. stocks hitting session highs in the last half hour after opening in the red. the dow is up 91 points and on track to snap the first three-day losing streak in months. russell investments steve wood will help us make sense of all wild market swings coming up straight ahead. lori: our special report, small business, big idea. one company says it solves the problem how to find a parking spot. parkwhiz has expanded in eighty cities in just seven years. cofounder jon thornton tells us how it works just ahead. >> i could use that.

gold has tumbled 17% so far this year. u.s. investor global chief franks holz says now is the time to buy. why he is bullish on gold and gold related stoccs coming up this hour. lori: all that greaters, right, ash? time for stocks. let's send it down to the nicole petallides on the floor of the new york stock exchange. what has caught your attention right now? >> the first thing that caught my attention we're down three days in a row. we hadn't seen that with three consecutive days of losses. the other thing other noting despite tough news this morning nikkei sold off again and moved into bear market territory. the markets managed to take the news and digest it and gain up in a positive way. up 106 points to the dow jones industrials, moving to session highs. we have a big deal on wall street. looking at gannett. that is the largest newspaper chain in the u.s. we all know it

for "usa today" and the like, moving more into the broadcast business. this is a big deal, $2.2 billion deal and, the blo company is what they're moving into. that is a big broadcast company. this will almost double gannett's broadcasting assets, making it the fourth largest owner of u.s. major affiliates. that is big deal, puts them in nearly one-third of households and there is look at belo. back to you. lori: nicole, great, thank you. ashley: our first guest says with fed unlikely to change its policies anytime soon the markets will be choppy through the rest of the year. joining me steve wood, russell investments chief market strategist with more what he thinks are the the big bets for investors right now of the you think we will maintain the chop miness through the rest of the year? that a quite a period of time, isn't it? >> it is. more than half the year so far. ashley: yeah. >> if you look what the fed is trying to accomplish, they have been very specific. bernanke and company, they want

to hit 6.5% unemployment and 2% on inflation and want to hit 4.5 to 5% nominal gdp when you look in time left for bernanke's term he will opt out by his own statements. so are we likely to hit those very aggressive real numbers, real economy numbers by the end of the year? probably not. i think this will really be an issue for the next chairperson of the fed which probably will be janet yellen at this point, the odd on favorite. ashley: that's right. >> highest probability, a, he will not do anything dramatically before her tenure starts. b, i think part of quantitative easing 1 and qe2 it ended on a certain date. as soon as the date started approaching the market started to sell off and you see the summer swoons. i think the fed will want to keep the date uncertain so they get more bang for the buck on this policy keep the market guessing. to keep the accelerator depressed for a while. >> what does that mean for the investor?

choppiness can be frightening for people in terms of market years. >> you need to do that in increments of years, not days and weeks. you need to look in the multiasset space which means global as well as the u.s., cap, large and small but looking at things like emerging markets for longer period investors. ashley: money is pouring out of the emerging market. >> so the valuations become attractive. also in the united states for example, looking at valuations which are important, areas of the market, look at the russell 1,000 up 15% year-to-date, area of the stock market that has done best are the defensive. if you look at your defensive and dynamic indexes you have stocks that act like bond. they have fixed income but want to get the yield in the equity space. there is a lot of valuation, actively managed, do your homework but you will need a while for a lost this volatility to ride up. ashley: what in particular do you like in this environment? >> we like the u.s. we're

indifferent cap, large versus small. maybe lean a bit into cyclical names. look where valuations in europe are attractive. we don't like europe overall systemally but there are great stocks to pick in europe. there is listed infrastructure and global credit. there are ways to create a multiasset return strategy i think investors will like and the first place they will look probably is in u.s. equities. ashley: okay. i want to mention to you before we run out of time what is going on in asia and nikkei is down more than 6%. it has been an ugly, ugly day. they're in bear market territory. the yen is now gaining strength. >> what: is going on and what implications does that have for the u.s.? >> just a week ago i was in japan for five days. they're very interested in knowing what the west thinks but three components or three arrows of abe-nomics. you need the head of bank of japan to double money supply. ashley: right. >> fiscal policy, one or two hundred people to tax-and-spend

more. the third one will be structural reforms. that will take, 5, ten, 15 years for a lot of structural reforms in terms of agriculture, pharmacy. ashley: yeah. >> so i think, in japan for the first time in a very, very long time, japan is interesting. david: as an investment? >> it is. now could be positive or negative interest. ashley: yeah. >> it can go up and down but for the first time japan is not just flat-lining that is interesting. understanding where will be pockets of opportunity and pockets of risk i think will be verr important. the yen will be critical. ashley: yeah. >> the japanese want their yen weak to export, goose their economy. ashley: it has been going in the opposite direction. >> koreans and chinese, other asian economies won't like that. you will see a lost pressure from a currency perspective in asia so stay tuned. china becoming more like a 8% grower, not like ten or 11%. maybe new information and volatility will come out of japan for the first in a long time.

ashley: steve, always interesting. thanks for being here. appreciate it. lori: back to u.s. politics, new developments in the nsa leak scandal, fbii director robert mueller defending the surveillance. peter barnes is live on capitol hill. peter? >> lori i want to bring you new information which comes from a closed-door briefing by national security officials to members of the house intelligence committee and it involved, it relates to edward snowedden who is the nsa contract employee who leaked all the information about the surveillance programs and fled to hong kong. well it appears, according to members of the house intelligence committee that officials suspect he might be a chinese spy. take a listen. >> we're going to make sure that there's a thorough scrub what he is, what his china connections are and there's a lot of questions there that need to be anticipatessed.

>> just seems unusual, it seems unusual that he would be in china and asking for protection of the chinese government, giving press conferences to chinese media. >> chairman rogers did say after that he was not accusing snowden of being a spy. they didn't have any evidence of that yet but obviously it is looked into. separately as he said the fbi director was testifying at the house judiciary committee and got asked at lo of questions about this. he did defend these programs saying they have helped to thwart possible attacks on the united states and that, and that these leaks anddthese disclosures of these programs have put the nation's security at risk. take a listen. >> one of the great vulnerabilities that terrorists understand is their communications and they're consistently looking for ways to have secure communications. any tidbit of information comes out in terms of capabilities and programs and the like they're

immediately finding it. >> all of this has triggered a big debate up here on capitol hill about the need for these kind of perhaps to help protect the nation, to improve national security, prevent future terrorist attacks while at the same time balancing those need with privacy concerns and civil liberties. ashley and lori, back to you. lori: boy you summed it up beautifully right at end, peter, this very intense balance between our freedoms and protecting us from terrorism. it not easy knishes its not and a difficult line to walk. peter thank you very much. critical supreme court ruling on human genes sending one stock surging 8%. we'll have the story next. lori: newspaper company gannett nearly doubling its tv holdings. the impact on viewers and advertisers coming up. first a look how oil is trading today. up 96 cents a barrel,. back with more after this.

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lori: all right. time to make money with charles payne. this hour looking back at detroit based auto company, american axle, charles. >> you weren't here but i did it with ashley and tracy march3 third and it is up 23%. i still love the way this thing is acting. lori: take a victory lap. >> one of these companies with global auto market. this is one of the survivors. i was joking around with ashley and tracy last time. they have to change the name. it is no longer american axle. years ago in 1994, they had two customers, five facilities all in america. ashley: worldwide axle. >> they have got 33 customers. 200 facilities all over the world. they do zero revenue in china. by 2015 they will do ten% of revenue. zero revenue in thailand.

it will be 5%. they have a whole slew of products coming out. one of the next real big technology waves will be in automobiles. just like the technology waver in fossil fuels, fracking things like that, really we don't think of that as a technology wave but it has been. ashley: axles in particular? >> they have an all-wheel driie that is extraordinary. it is revolutionary. not openly does it save you miles per gallon but it also gives you, lowers your emissions. gives you better miles per gallon and lowers the emissions that is tough combination to be able to pull off. number one in the area. number one in a loot of things. they presented at a deutsche bank conference at 11. the stock is trading million 1/2 more shaaes than normal. edging higher. ashley: you still like it at this price? >> i still like it. earnings for next year continue to ratchet higher. next rise to be 23 bucks. lori: i disagree with you that

they should change their name. i think american anything in the title is patriotic and carry as great reputation around the world. >> they were talk about remaking the patton and i think you might be front in line for the role. lori: george c. scott. i'm impress charles with myself yaw once in a while. >> you're like 50%. you get half of them. ashley: thank you, charles. >> american/global axle. lori: compromise. ashley: i like that. it is quarter past the hour. time to check in with nicole petallides on the floor of the new york stock exchange. nicole, we're at session highs or close to it. >> we are. have to tell you lots of green. what a different picture than what we've seeing most recently. the vix index, drug index, retail index all with green arrows. with all those bulls and believers we were in an uptrend, at least for right now we're finding you were right, up 111. look at myriad genetics. what do you think of dna

cloning? dna being produced and reproduced? now the u.s. supreme court issued a mixed ruling in a case that concerns the patents held by myriad genetics. it was a unanimous vote. the nine justices reach ad compromise, they said synthetically produced again net tick material can be patented. but genes extracted from the human body, your body and mine, isolated dna do not merit those same legal protections. synthetic, yes. yours and mine? no. back to you. >> thank you for making that clear. it is confusing the science of biotech stuff. ashley: nicole could give herself a break down there on the new york stock exchange. >> and every guy in the world. ashley: i was not thinking that. i was thinking more work point of view. he is covering his eyes in the studio. frank holm tells us why he is betting on a come back, straight ahead.

lori: retail sales getting a part of boosted in retail sales. from builders paradise. ashley: look at him go. >> this is what every guy really wants the heck what you said. this is craftsman multitool. we'll be back exclusively with the president of craftsman, to talk about a new story of an american tool brand. stay tuned. [ heart beating, monitor beepg ] woman: what do you mean, homeowners insance doesn't cover floo? [ heart rate increases ] man: a few inches water caused all this?

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>> 21 minutes past the hour. i'm jamie colby. this is your fox news mmnute. right now an update, according to louisiana state police one person has died, at least 30 people are injured at the scene of that explosion and fire at a petrochemical plant near baton rouge. the williams company plant is in the town of of guysmar. it makes highly flammable gases. we'll keep it updated. >> a massive storm is heading east. there is rare june nor'easter. it could bring heavy rains and floods from new york to boston late tonight and friday.

other storms will post a threat of widespread damaging wind and large hail. severe thunderstorms halted the u.s. open at the merion golf club for three 1/2 hours but play has resumed in the first round of the 113th national championship. forecasters expect more severe thunderstorms that would interrupt play again later today and tomorrow. those are the newest headlines on the fox business network. i'm jamie colby, sending it back to you, lori. lori: jamie, thank you so much as always. breaking news. want to direct your attention back to the stock market. we have new highs. the dow is up 124 points. stocks have been climbing all day since a couple of better-than-expected economic reports set the tone. you had fewer initial jobless claims and retail sales, forget higher taxes and all the government policy, people are spending money especially on autos. .6 of a gain increase in retail sales. they were looking for only .4 of a percent. okay. overall sales are up .6. sales of building materials rose nearly 1% on continued

@trength in housing and home improvement. so we have frank holmes is witnessing that first-hand at the craftsman experience in chicago. jeff, where is the power tool you were showing us before? >> i have a bigger power tool. take a look at this power tool. this is part of the craftsman experience. this is part of a tricked out motorbike. everyone has a craftsman tool box. look what they have done with this one. i think it is an aquarium. it is about creativity. i want o get strategy from the president of craftsman as well as the cmo. you're focusing on this brand and, craftsman is 6,000 consumer skus. you focus on the brand, not so much, i want to sell it everywhere which some people thought you were headed down that road. >> right. we want to create what we call within sears a wow member experience. the experience comes from brand and great product and how we connect and how we engage our

brand enthusiasts. >> this is a gem of sears. obviously the three core brands, kenmoore which you head and die-hard and craftsman. look at sears stock. that has been a bumpy last year. it has been a bumpy self years actually. some say are better off if you were off on your own. if we compare you to say black & decker, that could be you think. which has a nice run-up in he last year. >> think craftsman stands on its own. we're number one in hand tools. we're number one in tool storage. we're the leading portable power tool brand. number one in snow throwers and lawn and garden. i think the brand is pretty powerful. i think we have a great product and experience. >> before we get away lori is asking about power tools. this is one tool system? >> this is one tool system. this is the c-3 portable power tool system. 30 tools for regular tools, saws, impact drivers, impact wrenches and lawn and garden, trimmers, hedgers off one

battery platform including xc lithium power. happy father's day, lori. maybe you know somebody would love one of these. put me on the list. lori: thank you, jeff. david: duly noted for later in the year, maybe around the holidays. jeff flock. lori: happy father's day almost to you, ash. ashley: thanks very much. great stuff. nice to hear people actually, american companies doing well. excellent. well, this is bad segue into this story. the department of veterans affairs saying processing claims under the obama administration is making it impossible to handle all the requests it receives. that means over 800,000 veterans not getting treatment they need and deserve. willis willis is here with more on the story. >> this is a national embarassment, i have to tell you. veterans not getting what they need out 6 the federal government. listen to this. 851,000 veterans waiting for decisions n compensation claims for wound, injuries, illnesses.

this is, two or three waiting more than 125 days. these numbers get worse every year. they recently found a guy with a claim that was 20 years old. 20 years old. >> how can that happen? >> filed in 1993. can you imagine? lori: is it human error or blatant ignorance. ashley: red tape or what? >> it is red tape run amok. the agency itself says they're totally overwhelmed and, they're trying everything to try to process more quickly but they're juut not getting traction. it is unbelievable. when you see the systems that the federal government operates with, i mean it is pretty much, what was it called vrotran this situation is three times worse under obama than it was previously. clearly this caseload is stack up, stacking up, stacking up. they can't get any traction on it. people who are getting hurt are veterans, our heroes, the people we would most likely to see get benefits out of this government. lori: like we always criticize

big government. you have big government. this is one of the things should be able to expedite and it's not. unbelievable. >> it is not working. we'll talk about that tonight on the show. tomorrow night we'll have actual veteran who has nnt getten claims money. waiting for help. we'll be covering this all over. lori: look forward to that. david: gerri, thank you. don't forget to not miss "the willis report." did i say do not forget to miss? "the willis report" every night at 6:00 p.m. here on fox business. lori: put you it up on the bar. ashley: what are you saying? lori: nothing. homeowners who thought they dodge ad bull -- bullet staying in foreclosed homes. find out why the banks may be finally coming after them. lori: you're jealous because you never invite me. ashley: some of today's winners and losers. look at the s&p 500. gannett on the big news will buy

belo, television group. that is up 27% today. owens-illinois. safeway. we'll be right back. my mantra?

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the tech heavy nasdaq about 1% as well. less talk about blackberry and apple. today's action, hot on blackberry. they have seen the sales and other research. we waited so long for that product. and say they are looking good and actually raised the outlook. you can see, blackberry today really jumping on these positive comments. analysts at six and a half%. take a look here an apple. the same day we are hearing about a different color iphones with bigger screens and the lower end of the price range. here's a look. 434. everyone is waiting for 500, 600, 700 on apple. right now you can see, it is up and a half%. back to you. ashley: thank you very much. the dow up 128. ♪ ashley: up from the opening bell, that's for sure. llri: positive economic data. the housing industry, a surprising uptick in lenders seizing homes from hours to a fallen behind other mortgage payments. with more, here is a look at the

bottom line. i think this is a good house sign of housing recovery. >> it shows that the housing market can handle these foreclosures. we have seen an 11% uptick in may versus the prior month in foreclosures. thirty-three states are seeing an uptick in foreclosed -- foreclosurr activity, meaning banks are moving into repossessed homes. florida, nevada, ohio are the top three foreclosure states. banks are moving to repossess more rapidly. $25 billion mortgage settlement had little lasting impact on the bank's holding back and not basically repossessing. they are repossessing. what is key here is, we are seeing mortgage rates hit the sixth straight week rising higher. they hit a 14-month high, so this is a mixed bag for borrowers right now, depending upon this to you live in. here's the story. you basically see above 500,000 homes for close this year. that is less than last year.

buyers.know, that's good news as laurie pointed out, when foreclosed homes come in, not for the borrowers who are under water. basically they are in negative equity in their mortgages. so two things here. ashley: because prices are rising, banks are jumping in saying we will take the house that because we can get more back on it. the problem is, people are concerned with the flood of foreclosed homes coming back into the market that ultimately could suppress prices. lori: that's interesting. >> well, what we are seeing with this report from realty track is that the judicial states are actually living up. they are allowing more foreclosed properties coming into the market, some banks are not having that hard time to sue the get the homes repossessed. so you are seeing home prices going higher in the states where there are not judicial review surprisingly. that means that the housing market is recovering. they have that price power that they can do with these homes. lori: they still have such a high number of negative equity

borrowers. >> well, the ultimate fate is, the home prices go up. that's a good thing. if these foreclosed homes, to the market on mass and drive prices down there will be deep in negative equity. but the thing is, the central bank, ben bernanke has been -- and his advisers have been saying is that the foreclosures will be slowly move into the market. banks -- the bank has to go to court to repossess. lori: always a pleasure. ashley: thanks. breaking news parodistic a look at oil. the last few minutes of trading, closing up $0.81 per $96.609 per barrel. that's a 3-week high. a gain of nearly 1% on the day. coming up, a company that aims to hel you with one of life's more annoying problems. lori: finding a new co-anchor. ashley: of parking spot. find that how you can reserve a paid for parking spot before you arrive. lori: as we do each and every

day at this time, that slick interest rates. the ten year, there really buying treasurys and even with the stock markkt rising. so pushing yields lower down to the just under 3 percent on the ten year end 30 years as yielding three in the third. back in a moment. ♪ i want to make things more secure. [ whirring ] [ dog barks ] i want to treat moogs. ♪ our business nds more cases. [ male announcer ] where do you want to take your busine? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutio can help you do what yodo.. even better. ♪ canthe math of retiremedo.. is differentoday.week. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it.

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>> reporter: i'm jo ling kent with your fox business brief. goldman lloyd plank fine speaking of the u.s. economy and fiscal policy and applause conference. he says the recovery has taken root, and the rest of the u.s. falling back into recession is very low. he did warn, a fight over the debt ceiling would hurt the economy. meanwhile, microsoft is teaming up with best buy on the retail front as they launched a store with an historic. starting this summer, the windows are will be in 500 best buy locations in the u.s. and more than 100 in canada. and revlon will sell about $850,000 to settle charges with the sac the reorganization since the cosmetics company did not disclose the information to shareholders about the going private transaction. revlon neither admitted or denied any wrongdoing. as the latest from the fox business network, giving you the power prosper. ♪

♪ lori: it is one thing to save money, but peace of mind is priceless. in today's small-business big ideas segment, we are introducing you to a company doing both. you know how frustrating it can be after you have spent a fortune on a concert ticket or a sporting event. when you arrive you can find a place to park. now you can reserve your parking space on line in several major cities thanks to a ompany called parkways. pleased to elcome co-founder and chief technology officer. hi. we have all been there. >> center for having me. lori: so close, yet so far away. tell us about your experience. boston. i went to the red sox game. i had the worst time finding parking. anyone who has been to fenway knows that it is congested, lots of 1-we streets. i drove round for almost 45 minutes and missed the beginning of the game and ended up parking some are just around the corner from our was looking in realize there had to be a better way to

find parking when you go somewhere. lori: how does this work? you go online and click on the parking spot and it is reserved? county you guarantee your customers that the parking space will be ready and waiting that it's an era of? >> seeking go on the website or use our itunes are android phone and bucket. the way we do that is the work with all the parking laws that appear on our service. so everybody that appears on the map that you can reserve will be ready and waiting for the reservation and will hold a spot for you. lori: in new york city, as you probably know, it can cost upwards of $30 to park for an event. how much is an additional spot? >> it can actually be less expensive because when you get to a yankees game, for example, you're going to direct to the stadium and find the expense of parking. you don't know, there is much cheaper parking a short five men walk away. that is where we get to. lori: in the city, that is where you have these big up charges, and there is also -- this is my personal frustration, not so

much getting a parking space, but waiting in a long line, especially midtown, for the attendant to bring your car and of a garage. is there any way you can expedite that has of a people? >> aasolutely. when you book your spot you tell us when your leaving and in the parking rise knows when your leaving to. lori: what is everyone's living at the same time? >> well, it's tough to serve as living at the same time the laws of physics kind of prevent everybody from leaving at the same time. but if we do -- we do everything we can. lori: i appreciate that. how the guys looked revenue? your connection with the parking garage is? ready get them to sign up? >> we have a great sales team that devised the parking lots are service. the parking lots themselves actually set the price. we let market forces determine what prices they said and that determines some response to sell. lori: simeon idea of how much it cost a buck is pasted it for a baseball game. >> sure. we have parking anywhere from 750 the $30 depending and of

those you want to be. lori: cool. so there is arranged. what are your business plans? to you intend to go public? how are you bbilding the business to mccotter you doing to prevent it? >> we're focusing on building the business as well as we can come in going public would be a dream come true. right now we're concentrating on chicago and new york. once established in those markets, expanding across the u.s. lori: to will keep our eye on and follow your success. thank you for joining us. >> thanks for having me. ashley: i want my car now. no one no excuses. lori: on the worst. ashley: newspapers, owns 82 of the multi. what do you do? you buy tv stations. we have the details on this deal. >> reporter: you know, one half billion dollar deal will almost double its group to 43 stations. that would make it the fourth largest station group boehner in the country.

already the largest donor of nbc affiliate stations. al become the largest cbs affiliate group as well in the fourth largest for abc. it will add $0.50 per share in earnings in the first 12 months, then a 50 percent increase over what they earned last year. three years that they can save $750 million per year in overlapping costs. now, spun off its own newspaper group in 2008. in the past two years we get a chart on this. things that dire in newspapers. the broadcast was up 40 percent more of the ap was down as much as 40%. now back up the flat. and the stock is very extremely well in the past year, especially for a newspaper company. up almost 60 percent as it builds up the digital business. now, they bring in over $400 million per year in ad sales, digital and sales that it is.

that makes it one of the biggest on-line and jobs anywhere. in fact, this deal marks a milestone, up to now, the ink stains retched it's over half of all revenue. but the tv station will provide over half of total earnings. tv and online ad sales together will provide almost two-thirds of the earnings. so you have to wonder, now that news corporation, our parent company, has said final details on wrecking a suburb a separate video print house the misspending of newspapers and book publishing into a separate publicly owned company, when might they do the same thing? ashley: that's a good question. i think that is a good, solid group. often it strong stations and local markets. >> both stocks of peat's today. ashley: not surprised. thank you very much. lori: it is a quarter after. time for stocks as we do every 15. let's sit down to the new york stock exchange are we are joined by jason. as you know, stocks are rallying close to the best levels at the moment. a dow of 114 points.

positive economic news set the tone or is there more work? >> well, unfortunately there is a little more work. obviously positive data is always excepted with of of -- open arms. i think we're playing a cat and mouse game right now. the earnings. a kind of having their way with the indexes. think we might be settling in to the very range bound to it that the moment. it would be normal for this summer, by the way. it's learning. there will be any big surprises. up 100, down 100, up 200, down 200. it sounds a lot historically, the dow been 15 dozen is really not a big move. lori: it's interesting. actually quite optimistic dear you point to earnings kutcher fundamentals. because, as you know, the conversation about the fed, the fomc next week. a big one with the press conference.

the company statement and a projection on the economy. um wondering if we are going to kind to hold on to this wait and see motive we will bouncing around until that if that could be a driver, the next catalyst. >> you bring up a very good point. sec some huge and i'm. ashley: amelie. the ensuing press conference. up thinn anything will change. think they have been fairly open and pretty honest about what they will do. the telegraph every move. in fact, it's already fixed into the market. they're telling you that. unless someone comes out and they're pounding the table with a completely different story than what they have been telling us today, i don't think it will remove the kneele much. lori: the take on tapering. thank you. ashley: that is a lot. coming up, the recent volatility in gold prices, investors may need nerves of steel to bet on the precious metals. u.s. global investors seasonal slump. a buying opportunity. he will tell us why.

lori: let's look at stocks, lenders and losers on the nasdaq. back in a moment. ♪

♪ ashley: a tough few months for gold investors. the precious metal is been selling off since april, way off of record highs from august a dozen 11. but our next guest is bullish on gold because of the so-called love trade, which he says is not going away. joining us now, ceo and chief investment officer of u.s.

global investors. i wanted -- what do we mean by the love trade? thank you for being here. >> well, it's to do with jewelry demand. and that is 50 percent of the equation. 50 percent. and what you see with the rising gdp per capita in the emerging countries, it is a cultural affinity toward gold. gold for gift giving. india, china, vietnam, bangladesh. dubai, turkey. they give gold, and it is very inexpensive. twenty-two and 24 karakul jury. so what you see is that there has been a big correction, the physical demand will pick up dramatically. lori: india, there is a problem because the government is imposing some big taxes. >> they are, and impose a 6 percent tax to read a couple of weeks ago they added to 8%, but it really is only temporary. because they're not talking today about smuggling gold into the country. it's just really part of their culture. what's more important is that gdp per capita.

so the correlation is about 90% to gdp per capita in asia rising that is this big theme i have, we are in a super cycle but you have business cycles and corrections, like we're witnessing. also important for gold investors historically. lori: i was going to ask you that. is trading right now about -- around 1377 per troy ounce. it's way off of flies in 2011. where does it go from here? >> in 2008 actually had a bigger correction. you can get these 25 to 28% corrections. back in the 70's you had a huge correction. over 35%. i think we are looking at models that the odds are, $100 down at $300 above the next six months. that is the betting person is based on the seasonal demand that will start picking up with jewelry demand. ashley: when you buy gold, how you doing? ets, goldminers? to physically by the bullion? >> we do, at times.

ww have a gold fund chemical shares. we buy a lot of gold equities. we don't have any plans talks, we have let them etf because of the problems in south africa. fears of disruption, we think that platinum will rise because the car sales are rising. we are big believers that the gold stock is extremely oversold. your seeing that dividends are rising, green companies pay a monthly dividend, which is higher than what you are earning on a money fund. 70 percent gross profit margins. this is a stock that can easily jump 50, 60 percent with a $300 move in gold. ashley: now you concerned about what the fed does once they start fighting that -- tightening the monetary policy? >> what is important is it's done because of global growth. because we have seen before, it's only when interest rates, the fed charges for money is greater than the cpi number. then that makes gold unattractive as a financial asset. and right now is making four

basis points on a money fund. inflation is over 100 basis points. you're losing money and cash. gold is much more attractive. ashley: certainly not acting as a hedge against ablation. >> isn't, but we have always advocated investors have five person exposure to bullion. beautiful gold jewelry. another 5% of gold stocks and then rebalance because these moves will follow and it is important to take profits. ashley: so by year's end, or ec? >> i think, as i said, $100 to the downside. you can sigell over 17, $1,800. ashley: we shall see. thank you for being here. >> thank you. ashley: thank you. lori: did you know that almost one in three robberies in the country involve the theft of a mobile phone? that shocking statistic is according to the sec. now the top prosecutors in san francisco and new york are launching a nationwide initiative calleddsecure are smart phones to try crackdown on smart phone theft. the initiative is intended to

put pressure on smart phone companies to help drive up the secondary market in stolen phones. they're calling for the introduction of an industrywide kill switch that would render a stolen phone worthless. ashley: i think that's a great idea. lori: can't beat it. countdown to the closing bell is next. retail sales making aacomeback. liz claman. a fox news exclusive. the second-best performing stock. of more than 235%. solar industry on track for next -- the best year ever. it is another fox business exclusive. ♪

♪ liz: shining brightly, the solar industry on track to have its best year ever. the company at the forefront, first solar.

the ceo of the company is with us in a fox business exclusive. the first solar stock up more than two under and 30 percent over this past year. warren buffett even taking a stake. planning to further scale up. the king of branddng, founder of fubu and star of abc business reality show a shark tank. technology is killing the clothing business, but he has a plan to take it back. it is another fox business exclusive. and what in the world is going down with housing, or should we say up? after hitting a 75-month low, foreclosures are now on the rise. we break it all down for you. "countdown to theeclosing bell" starts right now. ♪ liz: good afternoon. i'm liz claman. is the last hour of trading. what an exciting day. woke up and saw