we are off to a good monday. nicole: all 30 dow components have been in the green. obviously, you have had different pieces of economic news this morning. homebuilder sentiment came in the highest in years. everyone is waiting to see what the fed has to say later in the week. and lot of anticipation there. a lot adding that they will not taper. all without the arrows. the one wildcard this week really is what the fed will do. energy names are doing very well. jpmorgan is doing well also. cisco systems is up three and a quarter percent. cisco systems and hewlett-packard also looking

great. and lots of winners to speak of today here on wall street. >> thank you very much. it is all politics. president obama and european leaders are taking steps towards a trade deal. peter barnes joins us with the latest. >> a little bit of business news out of the meeting this time around. this morning it was the president and the european leaders announcing they will start talks to build a new trade agreement between the u.s. and the european union. it could boost trade by more than $2 billion a year. the president will host the first round of the talks here in the u.s. next month. >> this will be a priority of mine and my administration. it is important that we get it right. that means resisting the temptation to downside our

ambitions just for the sake of getting a deal. >> europe is our single largest trading partner. these negotiations are expected to take several years. the party crashers this year was edward snowden. he leaked details of secret u.s. surveillance programs. u.s. and british spy agencies eavesdrops. snowden is participating in live chats. adam and lori. >> and that of people have been asking that question. much. lori: the other topic under the

summit today, a new poll out showing the president's approval rating is at the lowest level in a year and a half. how will this play off? brad lakeman is a professor of politics. welcome to you, brad. >> thank you. >> he has to have a success. he has to have a take away to tout that back home. he is desperate to find a bit of good news. it is also going to be about syria. it will be about spying, unfortunately. obama was hoping that would not be a distraction. >> you talk about the economic news.

i recall, several years ago, that citizens in this country were losing their faith in free trade agreement. this seems counter to everything we have all been raised upon. how does the president take ownership of reversing that or is that not even going to be an issue? will the political agenda drop everything? >> the political agenda will most certainly trump this unfortunately. snowden's disclosures are just beginning. they have about 12 stories to come out. we are in the second act of a 12 act play. these leaks are purposely done. as peter barnes just reported, this will take years to develop a free trade agreement, if it is

to happen at all. europe also need some good news. the fact that we are even in these talks, i think, is very positive assuming that the president will put together a team and get to work right away. lori: russia basically is not believing the u.s. claims with regards to syria. we know that russia as well has refused any type of sanction against syria. how will obama and who did get on the same page, if at all? >> i do not know how the times we have to reset with the russians. the burden is on president obama .

certainly, the president needs a coalition. we cannot act on our own. we have to be very tough with the russians. action must be taken, but we cannot do it alone. >> have we reached a point in our economic evolution, here in the united states, where those kinds of issues no longer affect us, given the fact that we are becoming energies efficient with fracking? our economy is growing, the dow is up today 161 points, can we ignore the world events and continue to go on with the kind of relationships we used to

need? >> no. i think it is more important that america become a player. we still have so many other issues. as the world is getting smaller, america must exert their influence in ways that were unforeseen 20 or 30 years ago. we have to be engaged. if we take an internal role of we are not needed as we were, i think that we do it at our peril. lori: a lot of economists are very concerned about this currency war that is underway. you have countries at the g8 representing $7 trillion in global economic wealth. do you think that that topic will come up? how do you realistically have a discussion about a trade deal if

you do not talk about what is really going on. >> there is no question about it. if we will have a trade agreement, it has to be free, it has to be fair, and it has to be equitable to all parties. if one party has an upper hand, it is honored as a breach. companies are looking at how we are handling the chinese currency to see if there is anything there as far as america's ability to be forceful against economies that use their currency as a weapon. i think that that certainly will come up. the question is, how publicly will it come up. lori: thank you for your time. natural gas, a standout in the commodities pits. phil flynn is in the pits of this cme for us. >> it looks like the heat is on again. we are looking at hot temperatures and much hotter

@han people were projecting last week. you also have to look at the gulf of mexico where you have tropical depression number two. there is some concern that mexican natural gas and oil rigs mmy have to be shut down if this turns into a storm. the heat can work two ways against natural gas. it can cause these tropical storms and that, of course, is a worry today. lori: absolutely. you have the g8, iran elections, lots to consider if you are in oil trader. >> we are going to be up three weeks in a row if oil can hang onto these games. i think it will be a little more

difficult going iito the fed. that may ease some tension. when it comes to oil, we have to look at the dollar. the dollar is up. oil will come back down. lori: there we go. lori: always a pleasure. boeing, of all companies, they are doing well at the paris air show. the company expects global demand for new aircraft to hit 35,000 over the next 20 years. shares are hitting a new 52 week high. homebuilders are feeling a lot better about the state of their market. for the first time since 2006, the national association of home builders sentiment topped 50. the key level reflecting

optimism. no surprise here, homebuilder stock, those stocks are surging on that news. get ready for a big announcement from facebook. they are hosting an event on thursday at 1:00 o'clock eastern. a small team has been working on a big idea. some say the company could unveil a news reader application. shares of facebook are up 2%. lori: after edward snowden leaks info, apple says they have given lots of data to law enforcement. >> a dream deal for netflix. dreamworks provided more than 300 hours of shows. well investors like it? lori: that homebuilder confidence, knocking it out of the park.

are americans confident in their big banks? we will get to that topic after the break. first, a look at metals. ♪ ♪ my mana?

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lori: watching netflix. nicole: that is right. it is all about the content. making a deal with dreamworks. netflix jumping 7% on this news, on this deal. there will be about 300 hours of new programming. later in the year, they will debut an exclusive on netflix. you know, reworks for shrek, madagascar and kung fu panda. good news for both companies. lori: thank you, nicole.

>> it is time to make some more money with charles payne. it is all about letting the profits shine. at some point, it ultimately will be a reality in terms of where we go. this company is pretty interesting. you have a couple things going for it today. it will probably trade 300%. you have a couple things working. first of all, china says they will help their companies. people were like, maybe china is walking away from this. the fundamental side is doing

well. nevertheless, these guys sort of weathered the solar storm. >> what is the demand for solar products right now? charles: it still is not necessarily competitive with what you get. things start to get really demand full. >> they put solar panels in both of those houses. it is expensive, but with the tax incentives, he is not paid for it you like the city anymore. charles: right. these guys do big projects. listen, it is a tough space. it is a volatile stock.

i think that this bad boy will take off big time. lori: thank you very much, charles. americans are getting more confident in u.s. banks. it is up from a record low of 21% last year. american confidence in the eggs is that it highest level. the percentage of americans who say they have a great deal of confidence know about even with those that express little or no confidence in them. >> would you think about it, i mean, there was a point when that was 60%. congress, thanks. congress, banks. who is lower? u.s. automakers are revving up summer production plants. china could throw a serious wrench into the plans of

detroit. lori: chrysler so far refusing a recall request from the national traffic highway safety administration. the cost of doing this kind of business. we will tell you next. we are talking about currency wars. what is the dollar doing today, it is stronger. the dollar exchange is still pretty high. we are back after this. ♪ vo: traveling you definitely ent

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♪ >> 23 minutes past the hour. the supreme court ruled that they can sue big drug companies board deal with competitors. they say that those paid for delays cost drug buyers or than $3.5 billion a year. drug companies say they are legal patent settlement. an arizona law requiring legal

ship to go. in michigan, picking up a field for romance. this tip is from 85-year-old. one of the most powerful mafia figures. those are your headlines. i am lauren green. back to lori and adam. >> china is getting ready to take the lead as a global car producer. our own jo ling kent has more on this. what is this worry over china taking over. >> we have a capacity problem on our hands. big manufacturers calling it quits. charney's car production is outpacing demand at home.

they are getting rid of vehicles by selling them way below market value overseas. bob recently told reporters that it is just not worth it anymore to make cars down under with the dumping of chinese cars there. new vehicles are going for as little as $12,000 a piece. the problem is likely to reach the u.s. soon. china will be able to produce 30 million vehicles a year. the cars they produce in china actually have engines with emissions standards that would not allow them to be imported into the europe area or the united states.

they are sharing the technology. as for the demand, it is just dropping. more subways are being built. people already own a vehicle or two, if not more. the government is still subsidizing carmakers. the other problem is the chinese are not buying domestic brands. only 30% is domestic. the top-selling car is a ford focus. it is certainly good news for american automakers in china. the capacity issue will affect investors for years to come. jo ling, thank you very much.

the wave of the future. richard automotive equity analyst is coming up. lori: a big shareholder of smithfield foods is pushing the company to break up. the company could be worth much more than the $34 per share offer. they could split into three parts. shares are edging higher on the news. we will call it a person. >> up 117 points. market rallied monday. fed fears easing. investors have short memories and attention spans.

lori: once the fed takes the foot off the pedal, it means that the economy is gaining momentum. lori: let's take a look at who is up and who is down on the dow. verizon, on the other hand, not taking advantage of the market rallied today. we are back in a moment. ♪

lori: 172. adam: right. my weight or the dow? lori: the dow. adam: my weight hasn't been 1 # 2 for a long time. nicole petallides on the floor of the new york stock exchange. 172 sound good in both swayses. >> we're bringing you over to

the post where nyse euronext, the parent of the bbilding where i'm standing is iting a new fifth high. the stock is trading up 3/4 of 1%. ice, intercontinental exchange, hitting a fifth high. it is believed to -- 52-week high. it is believed the e.u. will approve the $8.2 billion deal without any conditions. as a result you're seeing intercontinental exchange hitting a 52-week high. that traded as high as 179.60. we'll find out at the end, scheduled to be decided the deal by june 24th. seems everybody who knows somebody and sources are saying it is expected to pass without conditions, and so far so good. with that kind of news, that's why you see both stocks jumping big-time. back to you. adam: our ears and eye as on the new york stock exchange. nicole petallides.

lori: she sis. seems lately the markets are focusing on the fear of fed tapering or when and how. we're seeing a reversal. you see nicole owes reporting. the dow is up 172 points. joining us is john kenneally, with lpl financial. good to have you back with us, john. if yyu look at history, the stock market usually rises after the fed raises interest rates. because the expectation is the economy is gaining momentum. could it be because of that sentiment as opposed we have short-term memory and we'll hear from the fed this week and likely the foot will stay on the gas pedal in the way of quantitative easing? >> it may be dawning on equity markets that may be the case. everyone was nervous that the fed would be tapering and tightening. they're still cutting interest rates. thee're not cutting them as

much. they will do the quantitative easing until its works. if they're tapering it, it is working. if that is working the economy is growing and generating profits and that should be food for stocks. i think we'll still have a lot of volatility in markets as participants come to grips with this. that the fed is not tightening and that they're, what they're doing here is allowing kind of the markets to take over from the fed and i think, at the end i think that will be a good thing. i think the transition will be difficult as we've gone through here the last three or four weeks. lori: do you think we're in that transition right now? apology for the audio there. do you think that is what markets are reacting to now, trying to adjust for? >> you know, i think the transition started when fed chairman bernanke got up before the joint economic committee on congress on may swent econd, had a great testimony, very doveish and q and kind of stumbled. lori: saying they wouldn't taper. >> they would not in the next

few meetings taper. they have a chance on wednesday to reset. they can say, listen, i know what we said in the q&a, there are two different things here. tapering quantitative easing and raising rates. we might taper only because the economy is getting better. we're in no way, shape or form raising rates anytime until 2015. lori: this is big fed meeting. we get economic projections. we also have the press conference. to your point, john, bernanke's chance to set the record straight. will he be more clear, less ambiguous than usual? >> i hope he is. i think the fed did a pretty good job being way more transparent than they have in the past over the last four or five years. i think there was that stumble back on may 22nd. that gives him a chance to set the record. whether or not he will tell us, hey, the fed is looking for 165,000 jobs per month and then we'll taper. i don't think we'll get that kind of transparency.

that would be nice and markets would love it but you'll get a clear separation, about rising rates, yes, we will not raise rates and taper. fed has to make it more clear that taper is not an interest rate hike. that will help. if they say this is the what the jobs number we'll look for that would be fantastic but i don't think that will happen. lori: what are you buying these days? who how are you navigating these rough waters? >> for both fixed income and equity markets it has been quite volatile since may 1st. bernanke on may 20 second made it worse. people are kind of convinced the stock market rally is for real. they were dipping their toes in the water, buying dividend-paying stocks and utilities and telecom. then they got burned as rates started to raise rise because these are rate-sensitive sectors. recently industrials and technology work. now health care worked almost the whole time.

i think over the second half of the year if you expect the fed to give us sort of an all-clear i think you might come back to those utilities and telecom stocks but that is really for the investors a little more -- lori: right smack in the middle of the economic cycle here? you're not cyclical or defensive? >> that's right. you're in the middle of the cycle. you're in the middle of thers cycle. if you're starved for growth you will look for things like technology and industrials. i think two sectors right now are the most questionable would be materials and energy. those are, have been driven recently more by emerging markets and those emerging markets remain weak. for almost all sectors but those two to participate over the second half of the year. lori: john, always a pleasure. >> thank you. lori: all right. apple joining facebook and microsoft releasing information on thousands at the request of the u.s. law enforcement. liz: joins us with her bottom line next. adam: also the government asking chrysler for a recall and

chrysler is saying, forget about it. can the automakers in the united states do this and what's the cost if they do that? as you look at ten and 30 year treasurys, keep in mind, equities right now, we have four dow components hitting 52-week highs. unitedhealth group, boeing and cisco. that comes from senior editor charlie brady. new 52-week highs for those four stocks. at a dry cleaner, we replaced people th machi. what? customers didn't like it. so why do banks do it? hello? hello?! ifour bank doesn't let you talk to a real pern 24/7, you need an ally. hello? ally bank. your money needs an ally. fotheifamily.

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>> i'm cheryl casone with your fox business brief. the rally on wall street pushing four dow components to new fifth highs today with industrial giant 3m and unitedhealthcare hitting record highs. the dow is up 176 points, barely off session highs. shares of orchard supply hardware stores are soaring despite the company filing for chapter 11. investors instead focusing on the hardware store chains perspective agreement with lowe's. in an auction of orchard's assets, lowe's will pay $205 million in cash as a stalking horse bidder n bankruptcy proceedings this is refers to the first bid for the company assets. wal-mart is recalling 5200 outdoor seating groups because the swivel base on chairs can break. that poses a fall hazard. it affects metro 6 piece and montrose sold by sam west west which does business at sam's

club.

adam: if you like the jeep grand cherokee, listen to this. the national highway traffic safety administration has given chrysler until tomorrow to formally respond to its recall request of 2.7 million jeep vehicles. the last week the automaker informally refused the recall request, but increased consumer pressure has a lot of people wondering if the company will change its decision. joining us is richard hilgert, auto analyst for "morningstar" to discuss this. at the end of the day it's a financial decision for chrysler or is it something bigger than a financial decision? >> i think it could be a combination of both. you've got of course, recall of this magnitude potentially costing the company, depending on what the government wants them to do, anywhere between 500 million and a billion

dollars. but on the other hand you've got a situation where the company is saying, look, nhtsa doesn't have the data right. we found several other vehicles that were much more prone to have fires in these kinds of accidents than our vehicles were. our vehicles appear to be much safer than some of the other vehicles out there. your data is wrong. we think there's a problem with way that you're looking at this and we want not, we don't want to -- adam: right. people, for the people watching we're talk about fires in vehicles allegedly caused by ruptured fuel tanks which has to do with the placement, this is where i got a little confused. i read in one article has to do with placement of the engine in the vehicles which are the -- >> no. adam: not placement of the engine and ruptured fuel taping and its placement. >> behind the rear axle. adam: there have been 51 people, 51 deaths. issue whether this is a problem with design and placement of the fuel tank or if something else is going on, if chrysler does say yes, we'll issue the recall,

don't they open themselves up to billions of dollars of civil litigation when in fact they may not be responsible for these unfortunate tragedies? >> well, that is i think getting back to your earlier uestion too. at the time that the standard, the standard that were in place at the time of these vehicles being produced, these vehicles met those standard. and they're showing that the accidents don't occur anymore so or even less than some of the other vehicles that were already on the road. so their argument would be, the opposite, that, you know, we're being held to a different standard or we're being held to a retroactive standard. adam: aren't they protected by the bankruptcy? aren't the vehicles covered by -- >> no. adam: they're not protected by the bankruptcy? >> no, they're not. adam: so we've seen thinks like this. there was several years ago lawsuits about the ford mustang, the popular car from the 60's because, not having the roof over the fuel tank and the

trunk. what does chrysler do, want to protect its brand image, but to comply in the best way for its customers? >> yeah. there may be some kind of an agreement that they come to with nhtsa on what it is that they want to do to, maybe, shield the gas taping a little bit more. you know, they could come to some kind of an agreement without having to go throughout the entire process of hearings and a formal recall, but, you know, at this point it is really, too early to tell what is going to wind up happening with company. adam: what is the most important thing you think to look for in the next 12 hours as this deadline approaches tomorrow? >> right. well, the most important thing that the company need to do is show that it does care about its customers but it also needs to do that in a way that they can say, look, we think that nhtsa was wrong in asking us to recall these vehicles when you look at the other vehicles that are out on the road today. adam: richard hilgert from

"morningstar." we appreciate you joining us here on the fox business network. >> thanks for having me. lori: we do want to go back to the markets. it has been 15 minutes. boy, what a monday rally on our hands. the dow is up 176 points. let's check in with nicole petallides on the floor of the stocks exchanges. there are big winners in the session. >> there really are. while you see markets jumping across the board worth taking a look at big lots, retailer that we're knows familiar with because it is the nation's largest closeout retailer. they have a new chief executive. barron's, we saw news speaking postively that big lots may rebound as the new ceo and sales, move, going to take hold. and so they have been taking some initiatives to boost sales. and so you're seeing the stock is up 3 1/2%. it is worth noting that it is up 30% off the highs in march of 2012, but this year clocking a gain of almost 20%. advanced micro another one

we're watching carefully also up three 1/2%. they made a deal and bought c-micro in 2007 as a startup. advanced micro competes directly with intel. now they're saying they could double. take a look, up three 1/2%. back to you. >> nicole, thanks as always. adam: tech giants apple, facebook and microsoft are acknowledging for the first time surveillance requests on their users from u.s. law enforcement but do those disclosures fill fall short? here with more is. liz: with emac's bottom line. liz, i was about to say foreclosures. foreclosure is just as bad. what is the company saying? >> the tech giants are on the offensive, yeah the disclosures fall short. let's go through the numbers. apple has gotten ten thousand data requests from federal, local, state law enforcement authorities. microsoft 32,000. apple turned over five thousand sets of information. for facebook as high as 10,000. what they're saying lumped in

there could or could not be fisa warrantless requests. what they're basically being disclosed falls short of explaining, fully to its customers what is going on with domestic surveillance. google is saying they want to publish the aggregate numbers. they want to publish the breakdown what requests are for. lori: to be clear. the fisa requests are mixed in with the law enforcement because the companies don't necessarily know where the requests are coming from? >> they know where the requests are coming from. the customers don't know what the requests are. lori: i see. >> they want to publish a break down of it. what we got from apple just now, a limited time period, half a year's worth of ttme. that ask what facebook and microsoft are reporting too. let's go over what apple is saying. they're giving out information to investigate crimes like robbery or missing children. they're not saying, they're saying there is absolutely no access on the part of law enforcement to its servers and

they do not store customer location data, things like mass searches of siri requests in any identifiable form. the i-message and face time applications are protected and encrypted. they're on the defensive but they say we want to be able to tell the world exactly what we're doing with fisa requests. there is effectively a legal gag. they want the government to loosen the legal gag so they can basically have more leeway to report to customers what the fisa requests are getting at anytime. lori: thank you so much. interesting. >> sure. adam: thanks, emac. lori: a little unsettling too. adam: just a bit. lori: you think? save the whales, save the trees, save the cheese. how the government is blocking the sale of a popular french cheese. adam: popular french choose? look at some winners on the nasdaq and the cheese story we'll get down and cut it all up for you. enz summer event is here.

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lori: all right. we're giving our review of season premier of "trueblood." so fun. back to the news. fda is blocking imported french cheese, why? because of french mites. adam: no, mighty mouse. lori: tons of cheese is stuck in aware house. rich edson is in alexander, virginia with this one. >> i had a fantastic grilled cheese with prairie breeze cheddar in the cheese shop. there are worst places to spend the day in live shots. the problem is this cheese. but this cheese is stuck in a new jersey warehouse right now. the food and drug administration says that tons of this stuff can't come into the country to be sold because there are too many mights.

in a state it is helping food safety because they evaluate on case-by-case basis we do not have a target value of six mites per square inch. this was established through a survey conduct ad numbers of years ago. the folks here in alexandria, virginia, they're concerned this could happen with other cheese. >> this could start with a rare choose, one that people are not super interested in maybe and certainly could balloon with something much larger. what concerns me at highest level not having any guide lines, anything by which to make decisions of purchasing, of selling of acquiring new inventory. it makes it very difficult. >> so the folks here say they have got this amount of the cheese remaining. there is one more shipment and then that's it. out on the west coast there are major problems getting their hands on the cheese there and they're hoping that the fda relaxes restrictions and lets it in. when it comes to the cheese mites this is been on cheese

hundreds of years. it is part of the process and absolutely keeping it safe with number about mites. fda disagrees. keeping the stuff in aware house in jersey. lori: eating the mites don't hurt you then, rich if you have the fda number? >> in bulk they say it can causal lettergies or exacerbate allergies. what happens, the folks say it stays on the rind. there is a process to remove it from the rind. some other governmeets would say, six per square inch is too little, too tight after standard but that is what the usa is going with. lori: learned something from you, rich edson. thank you very much. adam: nobody from the fda has had a knish at the cartwright. six mites per square inch? whoop dedo. lori: that is it for us. the we're having so much fun the hour is up. a lot more fun. greg valliere says the g8 summit shows the president is losing clout on the global stage.

how it could impact key money issues like immigration rrform. tracy and ashley are on the way in to take you through the next hour of fox business. don't miss it. the math of retiment is different today. money has to last longer i don'want to pourover pie . ishares incomes etfs. i low cost and diversified. find out why nine out of ten choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes vestment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possibleloss.

ashley: welcome back, everybody, i'm ashley webster. tracy: i'm tracy byrnes. it's a positive monday for stocks on better-than-expected economic news. the dow, nasdaq and s&p are all up. they are up with 1% or more. we even have several stocks hitting all-time highs. we'll have the biggest movers ahead. ashley: standoff over syria. president obama, russian president vladmir putin expected to meet this hour at the g8 this hour at in northern ireland. top strategist, greg valliere says putin, he will not budge. syria is making president obama more and more like a lame duck. the question how will that impact other issues, immigration, obamacare, the nsa scandal? we'll discuss that and much more ahead. tracy: a lot of stuff.

we have new questions whether the $50 billion drug companies spend every year on research and development is leading to more effective medicines. biotech ceo of ron cohen shares his take this hour and it might surprise you. but top of the hour right now. we've got a dow up 168 points. we have to head down to nicole petallides on the floor of the exchange. everybody is happy today, right, nicole? >> so far so good for all those bulls who hopes the market jumps back to the highest point and even beyond that, they're pretty happy today. you do see the dow up 168 points now. 323 points off the highs of the day -- 23 points. you're seeing retailers and drugs and oil services all doing well. transports with up arrows, the vix, the fear index, has been pulling back today. the dollar is strong. oil moving to new recent highs, sitting at 98.21. worth looking at some dow components familiar to all of us hitting some 52-week highs and

two of which are hitting record highs including 3m and united health care. boeing, another great performer as the dreamliner is back up and running and more, up one 1/2%. 3m is up one 1/2%. unitedhealth group is up almost two full percentage points. cisco systems, wow, check it out up 3%. back to you. tracy: good sufficient, nicole. we'll see you in 15 minutes. ashley: for more what is ahead for stocks this week it, could be interesting, let's bring in dan mack man from raymond james. let's look where the smart money is moving. it's a pretty difficult, complicated market that is pretty volatile. volume is light as we head into the summer period. do we buy the dips, sell the rally, what do we do? >> conventional wisdom the past several months is buy the dips. you always had people on sidelines waiting for dips to come that's why they were all very shallow and muted. even this, i would hesitate to call it a correction, but the

slit pullback we had the past couple weeks since the end of may has been fairly muted. you mentioned very volume, increased volatility. the volatility index sup 50% or somewhere in that neighborhood since the end of may. and you know today aside it is still, even today, still very much macro driven market. all ice on the fed. we listen for bernanke on wednesday. everybody is waiting around for that. there are all kinds f markets listening to what he will say and developments with the moderate in iran being elected and or relative moderate and north korea is seemingly blinking. this is contributing to today's market. within equities we see a bit of a rotation. everything is a bid for today. a bit of a rotation into more defensive sectors, health care, telecom and out of some of the others. ashley: you got to a lost topics let's start with fed. all ice on the meeting this week. we'll hear from mr. bernanke on wednesday, what do you expect to hear from him?

the market is a little confused right now. we don't get anything more definitive, it appears the market will continue to be confused. what do you expect with regard to the tapering of qe3? >> probably not a lot more than we've gotten already. this fed has been very, very translucent in terms of what they have been predicting and talking about what they're going to do. so they don't leave a lot of guesswork. so i think you will see, people are of the mind that the bull market in yield and bond has come to an end. south is anyone's guess exactly what is said but probably not a whole heck of a lot. will be hurry up and wait. ashley: homebuilder confidence hit seven-year high today. we look as europe being the worse of the worse. there are some signs perhaps that things stablized and we're moving in the right direction. it all seems a little more positive. what impact does that have on the tapering? what is happening here in the states. people have been viewing, positive economic data as potentially bad because that

means that the fed could start to tapering. and bad economic data as potentially bad because signs that the economy isn't growing at the rate we predicted. so the stronger the data, more likelihood the taper. then you will start hearing worries about inflation. ashley: let's talk about homebuilders. do you like the home building sector at all? we had some positive news today. >> we're very positive on real estate and the homebuilders. people have concerns about both sectors in light of a rising rate environment. ashley: yeah. >> however you can't look past the fact that a stronger economy is good for real estate. the homebuilders have had a huge run. they're trading a little bit off their recent highs. so it is going to be tough to push through unless we get real strong data. we have a couple more data points coming out. we saw them omorrow and thursday. ashley: you like reits, real estate invest trusts you like that play? >> we do. have for a long while and think it has a long way to go. ashley: which areas are you avoiding? >> we're seeing a bit of a

rotation out of technology. simply a lack of catalysts. you have a number about earnings coming out this week. within the sector you zerotation out of tech and into telecom for some more megacap dividend-paying stocks in this defensive mind. we would probably take a bit of a breather on tech until you get into the fall where you will see more catalysts. ashley: quickly, dan, we'll be into earnings season fairly soon. >> seems like they never end now. ashley: it does. what are you expecting and what impact will that have? >> we're expecting in line. we haven't seen many preannouncements. we're coming into the preannouncement season. tech aside we're anxious to see what banks have to say. we're looking for clarity and visibility. they have had a run and stalled a little bit in light of increasing rates which is obviously beneficial albeit with little growth. that is a bit of a concern. ashley: we're already out of time. dan, thank you so much. >> thank you. tracy: you guys covered a lot of stuff. we were just talking about

homebuilder and homebuilders confidence hitting a major milestone this month with seven-year high, its best level since before the housing crisis. jeff flock is on the south side of chicago taking a look at some new homes being built. hey, jeff. >> we got them in all different shapes and sizes and styles of completion. this is a hole that's been dug in the ground. one you see already up there. next to that is one that just have the foundation. we have one. principals of lexington homes. you see a lot to like in this market. what do you see that most encourages you? >> two things that are different that were nonexistent since fall of last year. constancy and urgency in prospects for potential buyers. didn't exist for five years. >> talk about homebuilder stocks. walk with me as we put up the homebuilder stocks. they have had a nice run. instead after homebuilder or investor would you buy homebuilder stocks? you worked for lennar? >> this would be a good time to buy homebuilder stocks, absolutely.

>> you think we're at the front end of this? >> i do. >> talk about this housing market index as we look at some of these. this is a neighborhood in chicago called bridgeport. maybe you heard of them. home to the daleys, older and constructer mayor daley. grew up here. working class neighborhood largely.e are not working class homes. these are upscale homes. >> oh, yeah. these are coming out of condos moving into single family situation but want to stay in the city. >> we're close to downtown. you can't see it. we're not too are from u.s. cellular field. you talk about the housing market index. is it valid? because we had dramatically good numbers. if we compare the index with housing starts, the things we're seeing right here, right now, there is pretty close correlation between the two. these numbers seem legitimate to you? >> they feel that way. both numbers themselves and what we're feeling from prospects and on the ground. >> anything scare you at all about this market? >> talk of interest rates going

up a little bit will price people out. at the end of the day the rates are unreal is i cannily low in the long-term any way. >> bought my first house at 18%. we look at this, we go oh, my god, it i will will be 4%? oh, my god. that where we've been is not realistic. >> anything under 6% is a good interest rate to buy a house. >> as jeff says if you're going to be priced out from rates going 3 to 4% maybe you shouldn't be in the housing market in the first place. construction sites in chicago. there are all the over the country that is hole that hasn't been dug yet but it is coming. >> jeff flock, thank you very much. i think my first mortgage was 9 1/2. ashley: wow! we moved to this country in eight at this two. my parents had 16%. it is all relative. tracy: sure is. ashley: netflix shares surging as the company doubles down on original content. we'll have details on that next. tracy: the battle over immigration reform coming to a

head in congress. leading d.c. strategist greg valliere says several key issues will determine whether it lives or dies. he is here ahead. first as we do every day we get a check how oil is trading, barely budging right now. $97.88. we'll be right back.

tracy: time to make money that time of day. charles payne is storing profits with sandisk. happy father's day. >> thank you very much, i appreciate it. there are a couple of narratives here. one is chasing a stock. two is sometimes the management turns down an offer turns out to be right thing. everybody knows, story of yahoo! turning down microsoft. that became sort of legendary. september 17th, 2008, samsung offered these guys $26 a share. the stock was trading in the teens. everyone said they were nuts. look at the stock adjusted for inflation. that sim press sieve. the company continues to fire on all cylinders.

it was mostly a flash company. now they diversified tremendously. peg ratio, .05. street is looking at $4.76. three months ago, $4 and 63 cents. taking market share but they turned them down and turned out it was a pretty good deal for them. ashley: they're big around the world, aren't they? >> they have a great guy ant global footprint. retail sectors, oem sectors, they're everywhere. it listen we use these electronic devices. they managed to stay nimble and relevant. tracy: where do you get in, where do you get out? >> you get in here. i don't know where to get out. i've gotten out 50 times in the last four years. would have been better putting it in the corner on the shelf and forgetting bit. as long as they're operating like this, taking market share and executing this way i think you have to stay in there. ashley: the stock is $61.

what is the next key level? >> i think you have another ten to 15% without any technical resistance. probably consolidate gains but next leg up is at least a double-digit move. thanks a lot. tracy: good management apparently too. >> great management. ashley: they know what they're talk about. see you, charles. quarter past the hour. let's get back with nicole petallides on the floor of the nyse. nicole, we're still up nicely, up 150 points on the dow. >> still holding on to nice gains today. looking here right now the dow jones industrials are up 150 points that is up a percent, much like the s&p 500. tech-heavy nasdaq best of the bunch in percentage terms just up over 1%. most of the names on the dow with green arrows, some are hitting 52-week highs. i want to take a look at a name obviously we're watching. this is a big deal here. we have dreamworks and netflix. netflix is a name i'm referring to. the name leading the s&p 500 is netflix.

up 7.25% roughly at 229.25. they're inking a deal to work on new tv programs, 3000hours of programing some tied directly correlated to dreamworks films. some which you remember back in the day, right? like. it works well for both companies. back to you. ashley: nicole, thanks very much. we'll be back at the bottom of the hours. tracy: great movies. we're big "shrek" fans in my house. coming up president obama is at the g8 summit. top d.c. strategist greg valliere says he is losing his clout on the global stage half of the it means for obamacare, immigration and much more. ashley: first let's take a look to see how the u.s. dollar is moving right now. guess what? that greene back is stronger against all the currencies moving closer against the dollar. a strong day for the dollar. we'll be right back.

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>> at 19 minutes past the hour, i'm lauren green with your fox news minute. iran is making steady progress in its nuclear program according to the united nations while iran's president elect is

pledging more transparency, he also said the united states must recognize iran's nuclear rights. in the trial of whitey bulger the convicted hit man agreed to testify against bulger, because bulger became an fbi informant. bulger is accused of participating in 19 murders. he has pleaded not guilty. in michigan federal agent are digging up field in the latest search for jimmy hoffa -- hoffa's remains. he was last seen at at restaurant in detroit in 19756789 the tip is from one of the detroit's most powerful mafia figures back then. those are the headlines. i'm lauren green. back to ashley and tracy. ashley: lauren, we appreciate that. we have new developments from the g8 summit in northern ireland. peter barnes is standing by with details? >> they're, ashley. the headlines hitting the tape, g8 leaders say economic

prospects remain weak but downside risks reduced after action in u.s.-euro area and japan. g8 leaders say optimism in financial markets has yet to be translated into fully into broader improvements in economic activity. finally g8 leaders say monetary policy should continue to support recovery, be directed toward price stability based on respective mandates from central banks. this is from the reuters news service. sound like they come from a document or maybe the communique or draft of a communique, we're trying to chase down the source of these headlines. president obama is meeting with russian president vladmir putin. yesterday putin bluntly warned the u.s. and other nations not to provide any weapons to the to the rebels in syria. russia as you may recall is supplying weapons to the assaud government which it calls the legitimate government of syria. and there is a party-crasher as at these talks.

edward snowden, former nsa contract worker who leaked details of secret surveillance programs, u.s. surveillance programs, his latest disclosure again to the guardian newspaper in london shows u.s. and british spy agencies eavesdropping on communications of world leaders who met in london for the g20 summit back in 2009. and they included then russian president medvedev. on economic issues the president an european leaders announced today they will start talks to build a big transatlantic free-trade agreement between the u.s. and the european union. the first round of talks will be held here in washington next month. one study said this deal could boost transatlantic trade by more than $200 billion a year. ashley. ashley: just getting them all to agree on all the fine details. peter barnes, thank you very much. >> ashley, thanks. tracy: we'll talk more about that. our next guest says president obama's clout at this year's g8

summit has diminished large hely because of the administration's response to syria. we have greg valliere, chief political strategist at potomac research. i'm glad you're here. i have to tell you my initial reaction when i read your notes, whenever did he have clout internationally? i think we've been always pretty spineless out there. >> i think his earlier action in libya actually worked. i think there were at times he came with a stronger job approval rating. right now syria to me is a lose-lose. if syria goes poorly we have our fingerprints on it f it goes well, people will say the u.s. came in so late it didn't make much difference. i think the dithering and indecision actually looking like he got forced by bill clinton to do this, really didn't do a lot for his stature. tracy: and yet, sound to me like putin is pulling all the weight out there. he is flexing muscle and trying to make decisions for everybody. >> he has somebody's super bowl

ring. he is arming the, he is recall ainn the syrian government. he is pretty much doing what he wants and, i would imagine as we, you and i speak now the talks between putin and obama are pretty rocky. i don't see much sign of, much hope for ann kind of a conciliation between those two. >> befooe we move back here at home, can you play out the g8? >> sure. tracy: what happens in the end? basically nothing? >> i don't see a lot. they will pledge to look attacks cheating. i think the u.s. should take some credit because our budget deficit is coming down and coming down dramatically. i think we should take some credit for that. and our economy is doing better than western europe which isn't saying a lot. tracy: right. -@>> i guess we're the best houe in a really bad neighborhood right now. tracy: you take what you can get at some point. let's come back home, talk a little bit about immigration. i know you think it will pass in the senate no problem. what happens in the house? >> that will be rough sledding.

i think the senate could pass this by the 4th of july break, maybe with 70 votes with even 12 or 15 republicans voting for it. thaa gives it some momentum. the house has issues on two fronts. one is border security. they want to toughen it dramatically as some republicans in the senate. the other thing is benefits, that the idea the immigrants will get obamacare health benefits is anathema to house republicans. >> interesting to me, marco rubio, once i thought was really shining star is starting to annoy everyone, isn't he?he thiy is really for it the next day he is the no. rubio has to realize he ruined his chances to win the iowa primary. republican base, hardcore conservative base doesn't like anything that sounds like amnesty. rubio knows this. he is still trying to sound like a tough guy. i think at this point rubio has to fall in line with other moderates and vote for this. this makes rubio a washington

insider which may be the last thing he wants to run on. tracy: speaking of tax evasion, there could potentially be an amendment to the immigration bill, right? >> it's possible. i think the amendment would really involve benefits. now it looks as if you could have a 15-year waiting period to become a citizen. wait another two or three years to be eligible for obamacare. i think a the lo of advocates for hispanics and a lot of democrats will say enough is enough. if you have a 15-year waiting period, s this bill even worth fighting for if so that is the danger. the danger could be many democrats may decide to drop out. tracy: before i let you go, this whole nsa scandal with snowden really pushed all the irs targeting off the table, benghazi. you almost wonder if it is purposeful that we're spending so much time on this. >> well it has pushed it off the front pages for a little while and there is more disclosures today as we just heard from peter barnes.

but i do think with all the hearings scheduled on benghazi, the irs, the hhs, i think it will come back. i think this is not going anywhere. i think it will be a huge distraction for the white house for months to come. tracy: yeah, busy, busy at the white house. greg valliere you're great with potomac research. thank you, sir. >> you bet. ashley: great stuff. a new report find small businesses are fighting back from the recession but still face major headwinds. we'll hear from dun & bradstreet's chief economist about the biggest challenges coming up next. tracy: but first as we head out to break, the dow is pulling back a little bit. we're up 105 points. look at some of the winners and losers on the s&p 500 much. nicole petallides tall about netflix, "madagascar quote coming soon. we'll be right back. [ larry ] younow througut history,

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tracy: 90 minutes to the close, and stocks well off the best levels of the day. nicole on the floor of the exchange, up a hundred points now, what happened? >> it's interesting how we are at this point. the vix turned around, the fear index moved higher. we watched the dollar move higher all day. we got the jump, in part, because of news from japan and what we saw with the yen, but now we have come up off of the highs. at the highest point, dow jones industrials up 109 points, up a hundred now. we lost half the gain. names on the move. first, amat -- employed materials, they power the sony playstation and microsoft xbox. shares could drabble so that's good news up two and a quarter

percent. the other game makers themselveses, microsoft and sony, have been in the news and gamestop got boosts on this one. back to you. tracy: thanks, nicole, see you in a few minutes. ashley: the health index out showing encouraging signs, but, also, there's a ways to go. bradstreet's chief global economist joining me with more now on that survey and what's next for small businesses, and, palm, we were just saying in the commercial break how vital small businesses are to the country, and you survey a lot of them. what's the latest survey telling you? >> i describe it as cautious optimism. we are able to track all our businesses in the u.s., and a good chunk are small businesses, tough downturn, slow recovery, but the last four quarters, there's cautious optimism. ashley: why is unemployment high? >> because we are waiting to see

the likes of the eyes of recovery, really. looking at growth, employment is a lagging indicator, much more than two decades ago. they are focused on productivity gains first an add jobs only when they need to add jobs, and small businesses are he has tent because there's not small line growth. ashley: second vicious cycle. can't get the job wait up until they are convinced things are better. we are trapped a bit. what are the biggest head winds still for small businesses? >> the head winds are two-fold, still struggling and having access to capital, and we saw that really hit small businesses in 2010-2011. starting to ease now, but there's still room to go in terms -- ashley: banks have cheap liquidity, still being pretty, you know, mean with it, i guess is what we would say. >> it's improving, but slowly and gradually. the second issue is small businesses still deal with the

lack of strong growth in the economy. unlike large businesses which can benefit from restructuring faster, small businesses need the combination of being leaner, meaner, and top line growth. as the economy moves towards two and a half three percent growth, they should pick up investments, pick up higher, and it's going to be a long slog. four years into the recovery, and we are getting back to the prerecession levels. ashley: what about health care roles, how much impact is that having? >> adding uncertainty for small businesses. >> holding back hiring because of the 50 employees. >> it could. i think we're going to have to see as the health care reforms get implemented next year, exchanges up and running, small businesses have weight on their back, and so anything that adds into that adds into hesitancy on their part. having said that, as we saw in the last couple quarters, cautious on optimism holding on despite the fact there's sequester and all uncertainty.

we've seen pretty consistent results. >> it depends on the consumer who i think is resilient given the payroll tax hike at the beginning of the year and ongoing uncertainty and the stubbornly high unemployment. the consumer seems to have been resilient, good news for small businesses. >> it has been. in fact, as we look month-to-month within the bradstreet index in the proprietary work, small businesses didn't see a big impact with regards to the top line demand, all be it, still hesitant from the first quarter to the second quarter, the pa tern persists, and spending and so on have been consistent with the two and a half to 3% growth. ashley: all right, cautiously on optimistic, we'll take it. >> we'll take it. ashley: thank you for joining us. appreciate it 37 >> you're welcome. tracy: research failing to deliver? one ceo is going to share a take, and it will probably surprise you.

ashley: plus, the man of steal @%aring his box office mic next. having a good weekend, by the way. the ten and 30-year treasuries going to break. yield up four basis points, 2.17%, and the 30-year moving higher, four points up to 3.34%. we'll be right back. i want to make thgs more secure. [ whirring ] [ dog barks ] i want to treat dog ♪ our business needs more cases. [ male announcer ] where do you want to take your business?

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wall street is in rally mode today as speculation the federal reserve will reaffirm policies of supporting the economic recovery this week. right now, the dow is up 114 points. soda stream is teaming up with whirlpool for an at-home carbonation system uuder the kitchen you know aid brand and expected to be available in the fourth quarter in the stores. stream soda's push to expand business in the u.s.. when it comes to adopting a pet, are you a cat or dog person? according to the polling, 52% of voters are dog people. the total cost of owning man's best friend, the cost for some ordinary persons are $4,000 total. not even including emergency treatments. that's the latest from the fox business network giving you the power to prosper. ♪

tracy: financial times report fed chair ben bernanke is likely to signal that the federal rereceiver is actually close to tapering down its $85 billion a month in asset purchases when he holds his press conference wednesday. the ft says he'll balance it saying subsequent moves depends on what happens to the economy. ben bernanke likely to signal that the federal reserve is close to tapering down its 85 billion a month bond buying. of course, that doesn't mean he's going to do it. ashley: it doesn't. the market is not reacting much, but could be an interesting wednesday for the market. we'll wait and see. tech giants apple, facebook, and microsoft reveal the number of surveillance requests made by u.s. law enforcement, but are we getting the whole story? you never know, do you? elizabeth gets it with the bottom line. liz, you know, what are the companies saying? >> that's important because the giants say consumers and

customers are not getting the whole story and have basically the tech giants around the nsa defensive. apple, google, facebook, and microsoft say, listen, we want to disclose the fisa requests we get on domestic surveillance like the warrant list requests. right now, apple following the other companies, all other than google. they have yet to do this. apple following facebook and microsoft disclosing, yes, they gave out 5,000 sets of information on their customers to federal, state, and local law enforcement. this is used to investigate crimes like robbery or, you know, missing children. they are saying -- apple says the government doesn't have access to the servers, facetime and other messaging services like imessage, is protected, but what they are saying is this is what the government is doing, in restricting companies and putting a legal gag order on the requests is confusing people across the country, and they are saying that -- microsoft says

the government continues to fall short of what the customers need -o know about, and google is saying, listen, our request to government is clear, we want to publish the break down of what is -- what number of requests you are hitting us with and how much we have begin you to satisfy requests. ashley: interesting, isn't it? companies say, look, we're on the side of the consumer of the customers. there's a difficult line, isn't it, because the government -- they can only say so much. >> that's right. when you see the numbers coming out of the companies that they are giving data requests, that they are satisfying, we don't even know if the fisa requests are in there, if they are actually in there, or maybe they are lumped in. the thing is, all of these government requests have to come with a court order. you know, whether or not we're going to see the break down, which the tech companies want, they want to give -- show the different aggregates, that remains to be seen. right now, it's a confusing picture for the people out there. ashley: yeah.

tracy: good stuff. ashley: interesting, concerning. >> very. ashley: big brother, all that. thank you. >> thanks. tracy: superman is back bigger than ever, and then dishas the weekenn box office tally. did you see it? >> yeah, i have not seen it yet because it's, like, a three-hour time suck with trailers, but "man of steel" leaped tall buildings in a single bound and soared above all expectations. in a singleeweekend, time in $113 million friday toraking sunday. that is the best opening for any film in the month of june ever. superman hauling in $125 million with thursday's sales. forecasts werer maybe, like, for $85 million. warper brothers are far ahead of the number two head this weekend, "the this is the end," but that took in $20 million or so, and that opened incredibly good for the spoof of apocalypse

films, and the film "now you see me," number three at $10 million, and "fast and furious 6" and "the purge" rounding out the top six. the purge cost $3 million to make. now, for time warner, though, this is an especially huge win for that warner brothers studio. time wanner stock up over 1%, up six-tenths, 60% in the past year. now, the success of "man of steel" meaning waaner could build a superhero franchise from disney and the avengers. that brought in 1.3 billion in sales last year combining the separate film franchises of iron man, captain america, the hulk, and thor, and now time warner, you know, a new superman starring in the flick in 2015, justice lee was superman,

batman, the flash, wonderwoman, and others. that's a lot. tracy: thank you very much. ashley: thank you very much. it is quarter til. time for stocks. nicole, we taked about the comments reportedded by the ft on ben bernanke tapering, signaling, that, perhaps, nicole, tapering takes place sooner rather than later. >> it may have already had impact on the market because we have seen the dow jones industrials over the last hour or so sort of dwindling. we were up 191 points. this may have already been circulated to a certain extent because right now, headlines are really hitting and really not seeing any impact in the last 15 minutes, so that makes me start to wonder if, you know, it's how it always is, breathe it around here, and the ft, you can see,

financcal times is talking about it. latest headline is ben bernanke signals the fed as close to tapering asset purchases, learning this, obviously, at the week's fed meeting, but it's key for markets up 97 appointments, and there's always good and bad with these headlines, went -- and we know they are. ashley: true, maybe they had a jumpment thank you very much. tracy: again, said he might, didn't say he would do it. ashley: might, night not. tracy: right, there's that. spending $50 million a year on developing new drugs, but that money might be going to, well, be completely wasted. who knows. according to the recent study, a reaction from a ceo, dr. ron cohen is here. ashley: as we go to break, today's winners and losers, sandisk, charles pain talkedded about this company, up nearly 4%. we'll be right back. ♪

tracy: recent studies say the improvement of new drugs increased over the last few decades impacting patients seeking care. it could impact pharmaceutical and biotech companies. president and ceo, dr. ron ho ken has his thoughts and whether diminishing returning in drug research just to hear that actually, i mean, i got to believe there's people sitting at home, two upset to hear what's that mean? you're not going to keep discovering new drugs? >> it's very upsetting if you

believe the headlines, but, fortunately, the headlines are not true. tracy: good, good, good, good. nobody wants to hear we're not research r and developing new cures. >> right. there's an unprecedent amount of research going on into new cures, and the good news is that the science that we understand -- our understanding of the biology and how to develop cures for various diseases has never been greater, so it's my belief, we're on the threshold now of yet another wave of incredible innovation in pharmaceutical discovery that will help a lot of people, and if you look back, the last 20 # years alone produced unprecedented innovation for diseases like multiple clear row sis and rheumatoid arthritis, schizophrenia, and cancer. it's a bright future. the one problem is that it is getting more and more expensive to do that. tracy: right. talk about that. it's expensive in two ways. one, you're saying that the

standards increased, and that's a good thing; right? >> in general, it's a good thing because you want to have drugs that are proved to be safe and effective, so those standards help to do that. there are some in the industry, and i would join them, who would argue that the standards have, in some cases, become too strict and need more balance between safety and effectiveness so that you are not just cutting off the drug because there's some safety issue with it, but rather balancing out what is the patient getting out of it, and what is the patient willing to accept in terms of safety, in return for what they are getting. tracy: right, because youuwere saying before we came on that it could cost upwards of a billion dollars to get a drug through? >> correct. >> that is also because we are a litigious society and everybody sues because my nail fell off because i took a medication. >> well, i think, certainly that's part of it, and legal

settlements, with various people who sue, including the government, by the way, which is a big problem now, those are a problem, but an even bigger issue is simply that is costs a lot to develop drugs. no real way around that if you want regulatory standards that we have. on the other hand, we should be doing everything we can to take @%ery impediment away so that we don't make it harder than already is to develop drugs. tracy: bringing us to the conversation the last time you were here about the fda. the fda basically cutting back because of the sequester cuts leaving people at the fda to administer tests to bring drugs to market. >> right. a big irony is that a fair amount of the funding for the fda actually comes from the biopharmaceutical industry, companies like mine. tracy: so you pay a fee? >> for them to do their work, and we willingly accept that in order to have a good regulatory process. under the sequester, even the fees that we pay from the

private sector into the fda, part of those were sequestered, so congress, fortunately, has a bill right now, i hope it goes through, that's trying to restore that money so that the fda has it available. tracy: trying to reverse everything they did. are you feeling the effects of the sequester yet? >> it's too soon to feel it, but there's no question that the whole industry will be feeling it over the next year or two if something's not done to reverse it. tracy: a total impediment to what you say that we are on the brink of a bunch of great drugs coming to market. >> correct. tracy: thank you for coming on. >> my pleasure, tracy, thanks. ashley: brought you headlines minutes ago. the financial times, ft, reports that ben bernanke's likely to signal that the federal reserve is close to tapering down its $85 billion a month in asset purchases when he holds that press conference on wednesday. stocks are cut gains significantly since then. the dow up more than 160 points

earlier in the session. now, that's been cut to -- the dow up, but just by 56 points. maybe that's having an impact on the selling rate right now. the fda, by the way, blocking imported french cheese because of so-called cheese mites. yuck. that left tons of cheese in limbo. our own washington big cheese, rich edson is live in virginia with the story, rich? >> well, good afternoon, ashley and tracy. join me here for a little late afternoon snack. we've got some cheddar and some stilton, and this is your mim let. that cheese is the focus of the entire problem with the food and drug administration. they say there's too many cheese mites in the major shipment that's stuck in the new york area. the fda says we evaluate each sample on a case-by-case basis with a target value of six mites

per square inch established in a survey conducted aanumber of years ago. however, the owners of this shop say that standards is arbitrary. >> what concerns me at the highest level is not having any sort of guidelines, anything by which to make decisions of purchasing, of selling, of acquiring new inventory making it very difficult, by i'm just a store owner so i could replace that cheese with something else, perhaps. the real impact that will be felt here is by the producers and by the importers who staked their entire businesses on these cheeses. >> so this is about it for the cheese. they have one more shipment left, and they are out. back to you. ashley: any way yoo slice it. thanks, rich. tracy: now i want cheese. we need cheese. all right, "countdown to the closing bell" next, and paris air show starts today. liz claman sits down with a jet leasing company who loves to buy boeing aircraft.

shares of boeing reaching a new high today. don't go anywhere. "countdown to the closing bell" starts right now. ♪

♪ liz: silicon valley opens its book on government requests for secret information. some of the demands, numbers in the thousands. what were they looking forrings and what do company shareholders think about the privacy breaches? supportive or angry? detroit on a tear recently, but poteetial potholes may lie ahead in the form of a flood of cheap chinese car. what it could mean o u.s. auto makers and their stock. samsung finds the holy grail. ♪ by teaming up with jay-z on the release of the new album at the south korean tech giant with another trick up the sleeve, and it's all about speed. think 4g only on