could rising interest rates really be the biggest threat to our financial system? on immigration today, the "wall street journal" dan manager says it would be america's berlin wall. after james gandolfini has died. we have all of that and more coming up on markets now. dagen: the big game tonight. who do you got? connell: i will probably take the heat. it will be great, though. game seven is always fun. dagen: stocks now and every 15

minutes. it is not just about us. it is also about china today. nicole: absolutely. it did jump. this would normally be a few percentage points. what you have is the central bank there is not printing money. it is not making money available at an affordable rate. this is the problem. the question is whether or not they are doing that on purpose. we will see what happens. that really is moving over our markets. traders have been talking about that. it really brought on the selloff

yesterday and today. there really is no safe havens. back to you. dagen: thank you. connell: there really is no and. dagen: it has to. it cannot go on forever. peter: the fed chairman sneaking up on the punch bowl. bernanke said the fed could slow its bond line program later this year, as long as the economy keeps growing and unemployment falls. in a note to clients, renaissance marker research said we suspect the markets are

significantly overreact into the process of tapering. rbc capital markets said one of the big surprises in bernanke's press conference was that the chairman did not attempt to walk back the recent rise in interest rates. bernanke said yesterday that tapering really was not that bad. kind of like taking your foot off the gas pedal in the car and hitting a nice cruising speed, not hitting the brakes. >> what he is doing is a lot like monetary drunk driving. >> we will get more clarity at the end of july. connell: thank you much. brian jacobson for us next.

it is always good to have brian's point of view. to what level is your anxiety level at this stage? >> my anxiety level is very low. i understand that they have a centrally planned economy. they can marshal resources to prop up their banks if necessary. i am not concerned about the federal reserve cutting back on their asset repurchases. their forecasts are very optimistic. it really does not look like they will be pulling back on the asset purchases anytime soon. 1603.51. it is tough to get below 1600 feared tell us why.

>> purely because of the fundamentals. i really have come up with a firm foundation around 1600. if we do break below 1600, i think we have another layer of support around 1585. i think this is more of a buying opportunityyand a level to panic. connell: do you have to break through one of those? >> i think it is a little difficult to dip below the 1600 mark right now. if it does, race yourself.

i do not think that you have to wait for it to break through one of these support levels. i think if you are a longer-term investor, even if it goes to five or 7% over the next few years, you could be looking at in s&p 500 at 2000 by the end of 2014 or the beginning of 2015. connell: a decent game and optimistic view on things. you kind of, not rolled off, but moved quickly by the federal reserve and their concerns. what will you be watching for as we have through this weekend and next week? >> if you can, pay attention to some of those lending rates.

if that continues to go higher, it is pointing to a bit of a liquidity's squeeze or cash crunch and china. the people's bank of china will probably need to intervene into that market to keep those costs low. when i look at investing, we are recommending an underweight to china in general. we know that there are so many problems. the banking system there is so opec. connell: there is their perspective on a rough day. thanks a lot. >> thank you. "wall street journal" says the board of concern has become our

concerns. dagen: a symbol of, i think, the word you said was the addition. >> it would be the united states deciding to say no along the entire border down there. i understand the arguments about a country being able to protect its own sovereignty. i do not think people have focused on the practicality of people building this wall. the senate compromise today would be to initially build the wall among 700 miles. the distance from san diego to brownsville, texas, is 1969 miles. if you extend that line, it extends to chicago. does anyone seriously think you could build a wall or a sense would prevent people from that getting across?

it is just not practical. the real answer in this immigration bill is to try to find a mechanism that rationalizes the employment market in which these people work. we had that in the 1950s and 60s. why this, and the bill does contain some elements to do that. somehow the focus has gotten on this sense that i believe is a deep violation of american values. how do speaker boehner work his way through this? on the one hand, obviously, you do not want to be seen as anti-immigrant. >> it is a difficult thing for

the speaker. you had a bout of violence in southern arizona and southern california involving these illegal crossings. people felt like they were under siege for these types of things. the law later he says you would build a fence along the entire border with 90% of effectiveness. you attach 900 of every thousand people coming across. that is impractical. it is not the core issue. dagen: you have proof that it may very well be impractical based on the boeing fence. that was done away with back in 2011. >> the environment along that border is so inhospitable, in terms of heat, hot water, ice, wind, it would be incredibly

difficult to maintain. it would be very difficult. connell: talking about this is just for politics. >> i think a lot of it is for politics. a lot are concerned about having a past two citizenship. the american economy has the need for workers of some sort in agriculture or the restaurant business here in new york city. that has to be dealt with somehow. dagen: right. the one concern is not that it will create democratic voters,

how do you do that if not through a fence? >> you do if by rationalizing a system where they could work here, not as citizens, but with a card that said they were here legally to do jobs in specific industries. they much rather come in through the normal ports. connell: thank you, as always. dagen: good to see you. we are watching these markets.

is yesterday going to be the day that we point to 20 years from now as the end of the bull market? will tomorrow be the day? i mean, will yesterday be the day? connell: we will get to that. the government accountability office saying u.s. airways and american airlines, their competition will reduce airlines in the skies. charles payne recommended ann's warehouse last week. that was before the cofounder and spokesman got canned. what does charles think about it now? what does he think about oil? i cannot think of one oil class that is off today. oil is down almost 3%. ♪ you hurt my feelings, todd.

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which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ sudeverybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. hares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ connell: market selloff. but give back to nicole

petallides at the new york stock exchange. about 20 points off from our lows for the day. down 200 points again. right now, you see the dow down 220 points. concerns about here at home and earning keep pulling back on that bond buying as well as abroad in china. wanted to take a look here at a dow component. i want to take a look at disney. they are concerned about new competition for espn. the new fox channel for sports. it is launching this august. also just a slower cable network overall. down 2.5%. back to you. dagen: time to make some money with charles payne.

the spokesman gets the boot on his boat yesterday. charles: this definitely will give you some pause. this guy started his business in houston. he used a cigar box for his cash register. there is a lot of speculation about what is going on. i thought this guy looked amazing. anyway the stock did not take that much of a head considering it was down yesterday. listening, it is shocking, but

it should not hurt the company in respect with competition. i still like it. i think it is amazing for a guy this well known, this well-liked . i think the whole thing that we heard over the last five years, that is starting to fade away big-time. dagen: thank you so much. connell: on an ugly day for the market overall. 70% of americans are on at least one prescription drug. dagen: down $79-ounce. that is gold today.

on the bright side, it was worth $83-ounce earlier. take a look out world currencies and how they are holding up against the dollar. there you go. ♪ in today's markets, a lot can happen in a second. with fidelits guaranteed one-second trade execution, we routeour order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's allart of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason

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♪ >> 24 minutes past the hour. lawmakers have reached a call from eyes on a senate immigration bill. it calls four doubling the size of border control. a vote may come within days. firefighters out west are dealing with another hot, windy day which could help fuel and arizona wildfire in prescott national forest. the nba season comes to an end

tonight as lebron james and the miami heat try to win back-to-back championships. they heat evened the series with a win tonight ago. it has been 35 years since the team on game seven on the road. those are your news headlines. back to dagen. dagen: rooting for tim duncan. i cannot root for the heat. i am all for tim duncan. we will send some good vibes down to miami tonight. america is popping those pills. i am talking about prescription drugs. 70% of americans are on at least one prescription drug. over half are on at least two.

this all according to the mayo clinic. hydrocodone. used as a pain reliever. coming in at number one. those are your top five. yesterday we told you about another study telling you that the health care system could save a lot of money every year. a report from the government accountability office reveals that a post merger of american airlines and u.s. airways would reduce competition on over 1600 flights. this is genius analysis. the merger would hurt nearly 53 million passengers and create a greater law of competition.

the justice department and company shareholders must still sign off on that deal. connell: here we go. cheryl: they have been lost in a lot of smaller airports. they no longer even have commercial air service. i have to cover it up. the honesty thing is not working well for me. dagen: sheila bair is coming up in just a moment. there she is. there is dagen and me. she will be talking about this big market selloff. is the biggest threat rising interest rates? she has said it is.

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dagen: down more than 200 points nicole: watching the dow, watching treasuries, watching

china. all 30 names on the dow havv been in the red. watching china closely. they are having a bit of a cash crunch. that is an understatement. you do have a lot going on. it is all losers. jpmorgan down 2%. next to it is goldman sachs down 2.98%. walmart and coca-cola, two dow components with down arrows as well. you can see, obviously, a tough day for these markets. connell: the federal reserve says it is keeping interest rates close to zero. our next guest says a potential rapid rise is what presents the

biggest threat. a perfect day to speak with sheila bair about this. what is your biggest fear? >> that this thing gets out of control. i am glad that they are at least signaling that there will be an and him putting some parameters around that in terms of timing. it will be a rocky ride. monetary policy gets into the corner of every system. the markets will correct a bit. hopefully, economic growth will be enough to counter that. it will be a rocky ride for a while. connell: what you said, and i think it is kind of interesting, you still think that we are focused too much on the past.

we are trying to fix the 08 crisis. we are still trying to fix that years later. >> we should be more focused on what is going on right now. we are really in unchartered territory. this will have a huge impact on financial assets. this is what we should be looking to. it is unfortunate that we have not completed the reforms that we need. we have not fixed money market funds. we have not gotten capital levels out that banks. we are going into another period of volatility and we still have these structural weaknesses. i think it is very important.

i think it is unfortunate that we are already in this. where there will be new challenges. this could be beneficial for banks. it will improve their net income margins. if it becomes very volatile, it could be very bad for banks. there is still structural weaknesses. connell: what are specific examples. >> a lot of it is just finalizing rules that have already been proposed. it is a step in the right direction, but i do not think those people looking at it think it will fix the problem. a lot of it is drawing to

conclusions rules that have been in place for years now. they need to prioritize this and get it finished. connell: markets are free markets. you cannot control them sheila bair, as always thank you very much. dagen: why do investors think that they are owed a clear concise explanation from the federal reserve about exactly when they will and this bond buying program or when they will taper it? it did not happen before greenspan changed the way the fed communicated. connell: you are right about that.

some people get aalittle whiny over the last few days. we will watch all of your financial markets for you coming up. connell: what about facebook? rumored to unveil videos for instagram. will it be able to outshine vine from twitter? here is your closing up for the day. we will be back. ♪ that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses desee unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles

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[ le announcer ] one pill each morning. 24 hours. zero heartburn. ♪ >> i am jo ling kent with your fox business brief. the justice department has closed its investigation into the merger. delta is expected to receive regulatory approval from the european commission. tumbling after goldman sachs called off its bid for the insurance technology provider. they are being investigated by the u.s. attorney of georgia and the sec. the allegations were brought to light because of pending shareholder class-action lawsuits. stocks are sharply lower for a second straight day. this after bernanke said the central banks may scale back

their bond buying program depending on the economic outlook. that is the latest from the fox business network. giving you the power to prosper. ♪

♪ dagen: that is what you call a major market selloff. connell: >> a fascinating interview. she confirms my thesis about the markets. we are in there. we would be pumping in so much stuff. the minute he sort of says may

be in pull back a little bit, it may taper. all hell breaks loose. we are in never never land. i think she is right. depending on how this unwinds, this could be really bad. my personal opinion, bernanke will not unwind it that much. this was payback to obama. janet yellen is a dog. my view, when she comes in there, listen, i think everybody has to think about this. can the obama economy exist on its own? can this whole thing that he has created, cannot exist on his own? i doubt it. dagen: it has to eventually.

>> larry mcdonald will tell you we have asset bubbles already in the market. when those things on wide, it gets really nasty. my point is this, at some point the economy has to rest on its own. what the market is saying, it is going to sell. the markets are off of their lows. all i know is it well -- connell: why don't you telllus your eric schneiderman story. he is like elliott spitzer on steroids. executives are kind of lobbying to get some sort of congressional allegation against schneiderman. listen, investigate the investigator. the problem with this guy, he is completely political.

he does not go after john corzine. that is essentially what is happening right now. i think it is 5050. i think he will send some sort of informational e-mail or letter to corzine at some point. his spokesman said nothing is in the works right now. this is kind of interesting. if you ask anybody, wall street hated elliott spitzer. dagen: he was a jerk. >> you try to get me fired like four times. what they feel is, well, at least spitzer went after everybody evenly. this was republicans and democrats. it really did not matter.

schneiderman is a political hack who is basically basing his investigations on how much political juice he can get a basically investigations that favor the democrats opposed to republicans. i think it is a very good point. why is the new york attorney general office going after jpmorgan for things that occurred at bear stearns? wall street executives are going to his office. they are trying to get him to move on this. whether he does or not? i cannot tell you. we do have a statement from schneiderman. he did not really say much. dagen: charlie gasparino, thank

you. you sound more like a tough guy with the voice. charlie: it hits me at the end of every week. dagen: you are on the phone. you are out every night. connell: thank you, charlie. let's go back to the stock exchange here. mark newton joins us. dagen has mentioned a few times this hour at the huge selloff we are seeing in gold. what do you make of that. precious metals are getting hit pretty hard. certainly losing its luster, to say the least. it should be noted, a lot of these economies peaked out in the spring of 2011. a lot of support down there. a lot of the traders taking a look at things in terms of buying tips.

we do have a seasonally bullish time. gold has actually bottomed in the month of june or july and rallied through september, october. connell: mark newton, thanks a lot. >> my pleasure. facebook's new product launch will be announced. we are talking about video added to instagram. those are the reports. rob is president and principal analyst. this is really catch up. how much juice will this add to instagram and facebook? >> not much. it sounds like youtube version one. facebook needs to come up with something that advances over youtube. not try to chase where youtube has been.

yahoo! tried that with search a few years ago. my hope is that they have a surprise for us, my fear is that they do not. if this is what has been described, this should be handled like a major release. dagen: has facebook done anything, though, that leapfrogged over other companies, over other competitors? you had the facebook phone which was widely panned. the launch did not go off that well. you could post photos and comments on facebook which just seems ridiculous that it took them so long. >> facebook home was designed to other folks, it was just executed very badly. they had the right strategic

idea. they just did not pull it together very well. facebook is having some real trouble. remember zuckerberg at the very beginning really looked like he had gotten facebook by accident. it was a series of events. that does not lead you to suspect that he is really that innovative or creative. we are still waiting for that second scene. good to see you. come back very soon. connell: we will have more on the markets, of course. we have a business side of it. the sopranos, still hbo's hottest rated series ever. dennis is straightahead.

dagen: here's are some losers on the nasdaq. ♪ known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

dagen: shocked the country, shocked the world that sopranos start james gandolfini had a heart attack and died in rome, italy at the age of 51. connell: it did a lot to make hbo what it is today. dennis: let's talk about what gandolfini met to hbo.

game of thrones, true blood, boardwalk empire, would they have ever been taken seriously if we did not have the sopranos? it was the highest rated hbo series ever. by the finale in 2007 -- almost 12 million viewers watched. the networks, hbo reaches only 30 million households and 12 million viewers to watch that finale. that is astounding. it made gandolfini who he is.

the guy weighed 300 pounds. he had this back for telegraphing. he was in 25 pounds over half a billion dollars. the six films after the sopranos ended brought in almost half a billion. would he have ever made it out of tony's shadow? sometimes a great world can consume you for the rest of your career. i actually met james gandolfini years ago. it is an interesting clash that i will talk about during the noon hour. connell: thank you.

connell: a really nice guy. dennis kneale, thank you for that. the number one prescription drug in this country is hydrocodone. that is used in vicodin. i just wanted to correct that. connell: the market could probably use a little bit of that as well. at least it is not 200 points anymore. dennis and cheryl will take it from here on markets now. from the wall street trading pits and the cme. keep it here. dagen: a new survey and hiring for professionals. more markets now. ♪

nippon markets now, i am cheryl casone, dennis, the sell-off. dennis: down below 15 can mark because they are taking away the crack pipes. markets selling off as wall street is worried the money is going away and we are all over it with the trading pit that the cme or even on main street. cheryl: speaking of main street help wanted despite initial jobless claims rising and pressure on today's stock market with the dow down 203. the c e l is here with a survey finding hiring of professionals is on the rise and not just in technology. dennis: airplane manufacturing taking off, an analyst calls it an unprecedented good time for that industry. cheryl: lot of partying happening in the industry because it is not happening on wall street, top of the hour and stocks every 15 minutes, the major market sell-off that began in the last hour continues today. those declines, the dow down 197

points, a team coverage on the fed fallout of the day, the sell-off overseas, phil flynn in in the trading pits of the cme, we start with nicole petallides on the floor of the new york stock exchange. volatility and new fresh highs today. nicole: the fear index at 1875, dow jones industrials are improving, some have been down 200 points as we noted, improving some, down 190 points but still accounts for a 1 and pulling 2% was on the dodge and industrials, the s&p 500 is down nearly 1.5% so the broad based selling is underway. market wrap as well this year. if you are bullish you will not like market wreck today because obviously we are seeing three seventeen million shares to the downside divers and 34 so the market is terrible, mining stocks selling off, energy stocks, red arrows, no safe

havens, gold down $79, treasury, the ten year at 2.40%. a lot of factors here. we can't leave out, you mentioned ben bernanke, that is a big issue coupled with china and some what of a credit crunch overnight in particular and that weighs on things as well. it makes for a tough day on wall street. phil flynn. phil: these must have been a fed paradise or something because yesterday we were talking new high for oil for the year not so after the fed meeting. look at this oil. unbelievable, down $2.79 a barrel, the biggest move have seen in a long time. i have been through this, not only does the oil have to deal with the possibility offthe fed favoring but now we deal with china.

we had a terrible manufacturing number in china on top of the submerging credit crisis. how bad will be? the government says we are trying to get rid of shadow banking, forget about that. that doesn't help bold leader, look at gold plummeting today, down $80 an ounce, below $1,300 an ounce. we haven't seen that in a long time. back to you. dennis: you can hear the frenetic feeling all-around and for more on the markets let's bring in bernstein global wealth management says masters a neurosis of the capital's peter schiff. let's start with you. said or note that you have a bold prediction, del 20,000. we put a chart together from your numbers, looking at where stocks were valuewise from 2007-2013 and stocks at 15-4 and now less than 14 and debt to equity was 53% of the debt and now is 34% debt to equity and point out of the yield on stocks

are a few points higher than they were. the dollar is down 180 points, down 200 yesterday. e.u. wrong? >> days like this are good for investors because of the frenetic feeling in the market, markets are emotional, they are about human expression of insecurity of finance today is a great example but the underlying phenomenon we have seen triggered by a fed statement that the economy is on track to do better than expected but the rest of the downside event is hitting 20,000 by the end the decade is more likely. dennis: peter schiff, welcome back, good to see you again, you have been hanging for some years, what do you think of the market today and what about dow 20,000? by the end? >> of the decade. dennis: peter? >> where is gold going to be? in the short run i think the market is going to keep on falling until the fed acknowledges it has got the

economy wrong. this will recovery that the fed believes it created with the q e is the evaporating before dials it back. i think the next thing the fed they will not take away the business of the q e but put more crack in the pipe. the market hasn't figured that out because if the fed takes away the stimulus is basing the recovery on the housing market, the housing market is about to implode and go for new lows because of rising mortgage rates and speaking live virus turning into sellers. dennis: your bullish forecast for stocks is it because the fed continues easing or because the economy really is killing? >> the economy is healing. we are seeing a very modest recovery that has lasted as long as most recoveries and potentially collapse along because it has been some modest. this shows a lot of basically capacity in the system and the fact is real-estate is recovering very late in the

cycle which is unusual, it is usually the beginning of a cycle and that is one of the things that is helping to begin to turn to extend this recovery longer. dennis: peter schiff -- you have been telling us for years to buy gold and gold is down 27% or 30% from its recent highs, why is gold down today? why is it not a safe haven when stocks are plunging? >> people and making the mistake by selling their goal. doesn't only goal of. people doing the wrong thing, people are misinterpreting what is happening in the economy like your guest is. the economy is not recovering. it is in worse shape than it was before the fed began this crazy experiment. always manage to do with record amounts of stimulus is blow a little air back into a deflating real-estate bubble and we are calling that a recovery. all the extra consumer confidence and spending is a result of the phony wealth people think they have obtained because the stock and bond

markets are temporarily dropped. barely friend to be removed, not even taken away and already imploded. pretty soon the fed is going to have to cry uncle. it can't whets the bond market continued to implode and mortgage rates rise. the fed has to step up the q e and when it does that gold could really take off because then it is an official admission by the fed that we have q e infinity but no end in sight because the phony recovery they created needs continuous q e to sustain itself. dennis: one last thing, peter schiff tells us to buy gold at 1800. peter schiff is wrong or is the early and sunday he is going to be right about all this? >> i think he is wrong. and doesn't protect against inflation or necessarily against market downdraft and what we do see is a company earning record

profits. that is not an illusion and a balance sheet in great shape and so are consumers. dennis: there you have it. -pdichotomy defined. thank you for being with us on this day. thank you. cheryl: we have some other pieces of economic data today including weekly initial jobless claims. it was up more than forecast. another reason we might be seeing the sell-off today rose by 18,000 last week to seasonally adjusted 354,000. this is coming as the fed sees some slow improvement in the job market. >> at 7.6% the unemployment rate remained elevated as the rates of underemployment and long-term unemployment. overall the committee believes the downside risks to the outlook for the economy and labor market have diminished since the fall. cheryl: ben bernanke and co. predicting unemployment falling to 7.2 or 7.3% by the end of the

year from the current 7.6% but our next guest says things are better in technology and other professional sectors where a majority of managers are hiring. we are joined by scott mollen. let's talk about this. i wonder if the data you put together by this survey is something said chief ben bernanke has seen and that is where he is getting this positive feeling about the job picture overall. >> it is possible. every six months we do a survey over a thousand companies and recruiters, a cross-section of the u.s. and all industry. this last survey which was just completed in may was very positive. cheryl: let's go through the numbers. is really not just technology. technology jobs have been the creative and we had the last three or four years but you said is across the board. 34% of managers have voluntary departures, 40% of hiring managers asking for more money during the recruiting process, 31% noted more counteroffers. this is a change from a year

ago. >> we saw a movement of in all the areas that would indicate a more vibrant job market. the most important of which was more than 50% or second to hire more professionals in the next six months than the last six months. cheryl: you're looking at professional service but one thing we have seen, a trend, a shortage in trade labor. the construction sector is having a hard time filling those jobs. are you saying a white collar jobs are building more than the blue collar jobs at this point? >> except for the surge we have had in real estate and construction which is fairly recent, really what we're seeing is a more vibrant professional job market where unemployment actually is down in the 4% range or so. cheryl: you talked to the ceos lot of companies more than i do or lot of companies, but do they tell you about hiring plans over all? are they more bullish and when you have a day like today with the stock market, two days of

massive sell-off to you think they see that and pull back a little bit on those expansion plans if they get nervous about shares of their company? >> today turns into an extended periid of time where we see a downturn in shares that could have an impact on how they are feeling but hiring tends to be more of a long-term decision especially full time hiring. what they are seeing and what we're seeing from the survey is there getting a little bit more bullish. they are not bullish by any means the whistle have a very gradual job recovery, very gradual economic recovery. cheryl: bowlen terry departures and my colleague mentioned that, voluntary departures means there are more jobs available but they are not leaving and going home but to a new position. >> that is a nice indicator on the way people are feeling about the economy in general. they don't jump jobs unless they feel the overall economy is getting better and their prospects are getting better. cheryl: we need good news on a day like today. thanks for coming in to talk

about this. dennis: what is bugging me and what is your take on it? how is it president obama, one of the savviest politicians since ronald reagan, suddenly is the tone deaf? the irs targets tea party group at ptty ligns thebu don't ologe or ord a specl instation. our economy is in the weakest recovery in decades yet president obama is pushing for new carbon caps that will hurt business. susan rice sells america benghazi attack was not a terrorist act and for this figleaf the president names her his national security adviser and now of this. the obama family next week takes a eight day tour of senegal, south africa and tanzania, estimated cost $60 million to $100 million, $100 million. this is on warnings of sequester cuts despite canceling white house tours to save $74,000 a week, despite furloughing

air-traffic controllers the we wait in long lines at the airport. one word, mr. president, staycation. tweet as your thoughts and dennis kneale. the president stay home? your comments coming the. cheryl: we are also basically your feelings about this market. that is something else we have been talking about since this morning. the dow was down 176 points. it is across the board. fox business team coverage coming up, charles payne giving his thoughts. dennis: and legacy of another big guy, james gamdolfini dead at 51. [ indistinct shouting ]

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cheryl: we are soft mud, the dow is 185, we are not on 200. we will see all the afternoon goes. this is yesterday's price . at 1:00 here is the decision. take a look, right here, what we saw was the press conference of ben bernanke selling off from yesterday. now take a look at what we are

seeing as far as today goes and the price action. years today's in today chart, seeing a lot of pressure. what we are seeing right here, all little bit of a pull back. the deadline the nasdaq and the s&p, i want to show you right now what we are seeing as far as commodities and goals and that is oil, crude is down, the treasury story and take a look at goals. first time we have seen gold below the 1300 mark in months. you have a broad based sell-off going on, dow, nasdaq and the s&p down 1.5% for the nasdaq and the s&p. it is a very volatile day. let's bring in nicole petallides, we always check in with you. i want to complement you. you have been bringing our attention to the volatility of the market on a day-to-day basis but we are convening today. nicole: we have watched it each

day since the twenty-second with our own fed head ben bernanke, the fact that there may be some tapering in the future and with that we have seen volatility, 100 points almost every day, hundred point swings, half of the days, falls into that because we did see the dow down 200 points. now has improved some, we got 190 points but as the worries to begin continue we see volatility and these traders buy on the debt and sell when it pulls back up which helps with key technical levels todaa and a lot of traders are liking that fact. back to you. cheryl: we will check in with you at the bottom of the hour. dennis: let's make money with charles payne or at least reduce your losses on a day like this, here to talk about how to keep your portfolio safe and frantic frenetic market and what moves to make now. have you told us 25% in cash? are you buying anything today?

charles: not today but i am salivating. nothing like a great stock coming down with the broad market. you just mentioned technical levels. i use the exponential moving averages. the number on a closing basis will be 14,995 for me, we are long way from that and the 200 day moving average 14,127. i try to base most of my buying and selling on fundamentals the demotions and technicals tell you when to pull the trigger and we are in a no-man's's land at this point selling to get selling somewhat want to sit back and watch it happen. i am happy is happening in big blocks, down 20 points every day the next six months. wherever we go to the downside i like to get there quickly. dennis: interesting point. the i ability that a big sell-off that scares most investors is to him almost preferable to inching down a little bit and -- charles: here is what i am worried about. some of these people have missed

this rally. talk about how you adjust your strategy, i do portfolios every night, that is a big mistake loading up. they are chasing the foreman. a lot of people out there, the doomsday crowd had a lot of stocks into gold kidding crushed the the lot of people loaded up utilities which are the best performing sector a couple years ago but they are getting crushed to manila, bond market. cheryl: unloaded yesterday. interest-rate sensitive sectors people just said enough is enough. the dow is up 15%. we should all celebrate that. charles: to your deck of the last three years we had pull backs, a pull back and 9%, 12%, 16%, the middle of the summer and later we made nice rallles until the end of the year. this is not a time to be afraid, time to pay attention and be honest with yourself. of your holding stocks losing market share they don't have a great product pipeline, for execution you should be in those

stocks anyway. cheryl: senators opposing a plan to secure the nation's borders as they mooe closer o approving an immigration bill. details in your fox news minute. dennis: be and as a in the spotlight as the senate questions just who gets security clearance. ♪ this is the tempur-pedic innovation lab. it's like a front row seat to our latest technologies.

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>> 24 minutes after the hour your fox news minute. tseason made landfall to delicay of veracruz, mexico. tropical storm barry packing heavy rains, 40 mile an hour winds. so far no heavy damage and only minor flooding has been reported. lawmakers have reached a compromise on the senate immigration bill. it calls for doubling the size of border patrols, putting up hundreds of miles of fencing along the u.s./mexico border and bridges and roads foo surveillance. a vote may come within days on a bill that would grant legal status to people living in the country illegally. en deegan to see soccer star david whatcom got out of hand in china. causing a stamp been at shanghai university, a crowd of 1,000 was there to see me to members of the university team. seven people were injured. the event was canceled as police

investigated the incident. those are the headlines on the fox business network. back to cheryl, too bad people got hurt but david beckham. cheryl: wait till they look for the rest of the red china, then they will really be uptight. thank you very much. one of the reasons we had a strict sell-off today is worries about the chinese economy and the banks, talking about that later on fox business. we are down 190. below for the session 14,859, a couple of things, as we've talking about the dow still up 15% going into the session, the s&p up for the week but all the major averages down 1%. gold down below $1,300, stay on these markets throughout the day. dennis: new questions who had access to top government secrets

as the senate holds a hearing on capitol hill today. katherine harris joins us with the latest. >> good afternoon. according to testimony that came by fox news falsified reports are not unusual with investigations -- investigators and to security clearances logging interviews that never happened and credit reports used to determine whether bad debt is a candidate at high risk for blackmail. investigators apparently made that too. a record surge fabricated 1600 credit checks but never actually completed. ironically her own background investigation had been falsified by background investigators convicted in a different fabrication case. on tuesday the head of the nsa testified a thousand government employees like nsa weaker and ed snowden who brought access to networks containing highly classified documents. what we don't know is whether there were any background check

programs with ed snowden at security clearance and congressional sources confirmed the fox news this morning that list of 50 alleged terrorist plots that were disrupted with the help of data collection from the nsa program have now been provided to the house intelligence committee as promised and we have new questions this morning about one of those alleged plots described by a senior fbi official to justify the sweeping data collection program. >> this was the plot that was in the very initial stages of plotting to bomb the new york stock exchange. >> would you say their intention to blow up the stock exchange was a serious plot? or is this something they kind of dream about talking among their buddies? >> the jury consider it serious since they were all convicted. >> the bottom line is there was no trial, there was no jury and the fbi has confirmed its deputy director misspoke when he testified on tuesday and suspect

that were linked to this alleged plot on the stock exchange pled to lesser charges. that had nothing to do with this subplot itself. dennis: thank you so much for that report, katherine harris. cheryl: tomorrow great stuff on fox business, we're launching a new series, fox business summertime showdown eight stock pickers, two every friday going head to 5 in a month-long competition, getting things off with two formidable opponents and they are eager to battle it out. >> this is chad morganlander and i will provide consistent companies and inconsistent times and i'm going to win a summertime showdown. >> this is oliver porche, president of gary goldberg financialervices and i look forward to testing chad morgan lander on fox business network's summertime showdown. cheryl: check out their track record. oliver recommended pepsico in december up 20%.

chad recommended cisco in march. that is up 20% as well. we are looking forward to seeing those two in person. they will be here tomorrow. who is going to come out on top? tune in tomorrow at noon eastern time on markets now. sh dennis: dan will be bare chested and a new study finds a whopping 70% of americans now are at least one prescription drug, how you can catch i thought it would be more. aluminum production can tell you a lot about the economy. i will tell you about the ceo of the biggest aluminum buyer in the world. as we go to break with look at some of the s&p. still going with losers at hard time finding winners. there are the biggest losers in the s and p. we will be right back.

cheryl: you have got to keep your eye on the numbers on your screen throughout the trading day, seeing a major sell-off from stocks to commodities. that with us, phil flynn in the trading pits of a cme looking at metals business bring in nicole petallides from the floor of the stock exchange. nicole: i will start by saying 1598. anybody who is in the markets and really in the market's nose this number. we are walking on the s&p 500 day, talking to our senior editor charlie brady, a key technical level, obviously a key support level we held on the s&p 500, we got around 1599 and now we are moving back higher again. the other thing worth noting, we talk about volatility, ben bernanke, chinese worries but we have seen the trend of being all of but in this

have been a lot of turnaround theys, when we're down a little bit we are seeing that to a certain extent. many names, broadbased selling, financials, and down arrows. here are a few examples. bank of america and ibm are to the downside and i want to show you walt disney because disney was downgraded at goldman sacks and one reason is espn has a competitor, fox sports. that is the latest on the floor of the stock exchange. what is going on in chicago? phil: what you are seeing here is not only worries about fed and capering but physical demand drying up before your eyes, the banking crisis you mentioned in china is raising concerns whether anybody is going to get money to buy the physical metal. right now there's a concern that the demand may be weaker. if there is a real panic on the

regina banking system that could become bullish as people by the physical metal but they are not thinking that far ahead. they're focusing on the fed and the concerns about banks, oil kills oil demand as well, oil down big down 267, back to you. cheryl: phil flynn on the pits of the cme and nicole petallides, thanks to both of you. dennis: aluminum demand, can tell you about the global economy. there is a key component of beverage, automobiles and electronics and joining us in a fox business exclusive we have phil martin, the world's largest purchaser of aluminum. thanks for being with us. you buy aluminum from big makers like your former parent company alcoa and roll if in to these products and aluminum and all metals are getting clobbered and it is down 2% in a month. when aluminum prices fall is that good for business abed? >> typically is not what we want because aluminum prices affect the spreads on the scrap market. the world's largest recycler of

scrap material what we want to do is have a very comfortable margin between scrap spreads so we prefer a higher -- london metal exchange price for a metric ton of aluminum. dennis: you want that price to be higher or lower than your price? >> lord because that affects your conversion premium. dennis: when the market price falls spreads are getting cheaper and cheaper so it gets kind of and yet recycled aluminum as an answer, 45% of production uses recycled. is that cheaper than scrap or the market? >> absolutely. recycled material in our business reduces costs all the way through from supply chain to material proccssing. our goal is by the end of the decade to be 80% recycled content. that protects us from the scrap spreads and inflate from the london metal exchange and gives us real independence in our business. dennis: to go from 45% of what we make as recycled to 80% of what we may comes from recycled what does that require you to do

factorywise? >> huge transformation of the factory system. the recasting, ream melting, the rolling process, technical specifications but ultimately this is one of those higher collings where it is absolutely a better business model for our business, customers and at the end of the day the consumer. dennis: based on what you spend on production how much extra or what percentage you have to spend to switch to more recycled stuff and how many years as it take to make a difference with a higher profit margin? >> great question. the interesting thing about this is the recycling initiatives have the fastest payback of any capital investment we make. because of the effect on the total business. dennis: a lot of people feel like government has to go out and order industry to start using more recycling and do more green stuff. were you ordered to take recycling to 40% or 80% in the decade? >> no. we decided that on our own and we wanted to set a visionary target for the industry to actually pull people in the direction of higher recycled

content. it reduces the onerous issues of carbon tax, carbon development and production but fundamentally it is the best business model i have seen for sustainable business and doesn't require government intervention to drive us. dennis: when the profit motive is there that works far better than a government edict you have to do stuff the way we say. this is the famous carbon emissions in the u.s. falling last year to 1992 levels good as utilities, natural gas is cheaper and there's a lesson there. >> if people look beyond what governments are asking us to do from mandated carbon emissions and the like and get into the right business models that are sustainable you are going to find natural evolution and real cow shin of capital to business better model from or carbon to be more sustainable in the long -prun. dennis: and do it because it is the profitable thing to do and makes, good citizen of the world. >> all capital at the end of the day and you do do it because it is a profitable thing to do. dennis: thank you for being with us today. good to see you.

cheryl: capitalism is everywhere and it turns out that america is hopping a lot of pills, a new study shows 70% of americans are on at least one prescription drug, over half on two at a whopping 22% on five or more still look at the five most prescribed drugs in the united states, hydro cone, used as a pain reliever coming in at number one, hyperthyroid, credible for high blood pressure, the one that treats high cholesterol and finally used to treat high blood pressure, but these again are stocks to watch because of eufaula major pharmaceutical companies, would you agree with affect american the popping pills or not, anyway, that is what they are doing and take a look at the drug sector. after a commercial break. dennis: lipitor made the world safe for cheeseburgers and he was the star of the sopranos,

actor james gandolfini has died, his impact on showbiz. ahead to my media minute. chris cheryl: is airplane projection taking off. and analysts next call it an unprecedented good time for the industry. we will be right back. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "stngth training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at visa signature, every upgradedxperience comes from listening to our cardholders. visa siature. your idea of what a card should be. otherworldly things. but there are somehings i've never seebefore. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spendess time on the ground and more timin the air.

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according to the national association of realtors the average price jumping 15.4% from a year ago. that is the strongerice gain since october of 2005. mortgage rates are down for the first time in seven weeks but rates are expected climb next week in response to the reserve chairman ben crane diaz's comments that the central bank will likely reduce its bond buying program later this year but according to pretty back the rate is standing at 3.9% and the stronger housing market with economic activity climbing to its highest level in five years in may but the conference board and latest read falls short of expectations. that is the latest from the fox business network giving you the power to prosper.

cheryl: the air show wraping up across the pond. lot of news out of there. airbus announced it racked up $68 billion in new business at the airshow edging out boeing's $66 billion. when it gets those headlines in the last hour my next guest says the main take away from this year's show is the unprecedented demand for commercial aircraft. joining me from washington bbn chief president carter, one of the big questions going into the air show was hole is going to come out the water, air bus or boeing and it seems it was their best. >> by a bit but these orders will go back and forth and so perhaps their best on an edge in this show but the real take away was we got massive orders going into this show. this show was better than we expected and speaks to what we believe is happening which is the early part of our very large rampant commercial aerospace. cheryl: i was going to ask we are showing pictures for our viewers of the a 350 which launched in the south of france.

i was curious if you think that was a piece of the puzzle that tilted in airbus's favor was this aircraft? >> i think so. airbus launch its a 350 and boeing responded with its 7710 which is the largest a derivative of its 787. wide-body wars have kicked off, airbus has a real airplane that can come with and i expect over the coming decades that these two will battle it out. i think market share will be split as it is around 50/50. cheryl: let's talk about the backlog. when you are finding is the backlog for these companies both of them 6 to 7 year backlogs for orders so united airlines, i want a brand new 737 how long will it take to get my plane? >> it is tough and to that boeing also talked about increasing aircraft production. we are already heading to historical highs they spoke about new the end of the decade going to another 25% increase.

it is a good problem to have if you are an aircraft manufacturer, much demand and production rates will edge up. cheryl: i want to ask about the smaller producing companies especially bombarding -- these are the smaller aircraft -- there seems to be more of a demand for smaller planes as companies ramp up orders for private jets. what do you think will happen with those two companies? >> it was their show. they took the number 2 spot with regards to orders. they launched what they are calling their the 2 platform. they see opportunity in the 125 seats and below market. bombardeyeer with a more cutting edge airplane fell short at this air show so they are looking good at the show. bombardeyeat e r needs something else. cheryl: looking at boeing stock down 1.5%. you got a broad market sell-off

with he 787 issues, time to watch. >> people have become immune to orders, the backlog, so large, the trick is to convert those orders into cash. you will hear boeing and airbus talking about profitability and whether the supply chain can keep. cheryl: good to have you back. thank you very much. dennis: just after a cordial, time for stocks. the slaughter continues for the stock exchange and mark neumann of gray wolf execution partner, is the rally of 2013 now what do you say? >> that could be the case. the momentum is rolling over in a fairly vicious fashion that if stocks were to rebound in july and august is possible the bigger move in 2009 certainly could be vulnerable to suggesting it is over. right now it is over, short term move, and could get near 75. it is interesting with six days

left in the month and the month is showing negative 1% so this could break the market's consecutive string of seven positive months in a row so we're seeing real capitulation emerging markets and in europe the u.s. is just starting to show signs of rolling over. right now is being led by a lot of consumer stocks to the downside so we are not seeing, this is the first day of real capitulations setting to sea and affecting almost everything where stocks and bonds are going down commodities are down and as we mentioned earlier gold is down 5% and silver 8%. look the little early but in the next couple weeks you will see signs of these things reaching areas of support to step in and buy. dennis: we are 14-9 in the dow end 16,000, i will bet you dinner. thanks very much. in today's media minute hollywood is awash in tribute and condolences in the wake of the death of sopranos star james gandolfini. dead at age 51 from an apparent heart attack while visiting

italy. james gandolfini acted in 25 films the grossed half a billion dollars but the soprano's made him a superstar and that shows setup hbo to be a powerhouse of original programming. now the driver of that billion dollars a year network. shows like true blood and game of thrones and boardwalk empire might have gone nowhere had tony soprano not set them up for success and one thing we will never know, would james gandolfini have emerged from the all consuming role of tony soprano? i actually met him some years ago at forbes and recently went out to drinks with his ex-wife, so happy, i met your wife and your ex-wife and he looked at me, turned into tony soprano and marched away and to this day i still don't know what he said. i wanted to go after him and ask him but i was afraid. cheryl: i dreamed about that last night. how washington state getting the

job done on jobs. that is coming. dennis: should president obama be allowed to take a trip that could cause $100 million? your reaction to what is bugging me coming up. bjorn earns s limited rewas for his small business take theseags to room 12 pase. [ garth ] bjors small busiss earns double miles on every purchasevery day. pruce delivery. [ bjorn ] just put it on my spark card. [ garth why settle f less? ahh, oh! [ garth ] grt businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?

gerri: time for west coast minute, initial claims data, jobless rate in washington state at its lowest level since 2008. the and employment rate in washington 6.8% and estimated 205,000 jobs were lost during the downturn, 75% of those divisions have been replaced since then. one of the top ten state for entrepreneur is is how wide. according to research by the coffin index on entrepreneurial activity the startup is hawaii, was 400 per 100,000 adults do to

a surge in technology start-upss and tourism in the military industries still the top job creators. the golden state pension system announced premiums next year would rise by 3%. the increase comes despite the fact that it has been negotiating with blue shield and other companies and adding more carriers to with rosters in hopes of boosting competition. too bad, still going up. that is a west coast minute. dennis: there it is. should president obama go on that $100 million trip to africa. that is what is bugging me. here's what you had to say. barber says, quote, obama thinks he is king and entitled to trips costing that and more. i pray mrs. obama doesn't run for president. r. neill says, quote, no expensive vacation when the white house is an open. cheryl: interesting responses on that one.

good job. timothy geithner air, a few names being floated to replace ben bernanke. dennis: charlie gasparino joins that a man treaty with the leading contender to be the next chair of the fed. to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch semirs... i use daily market commentary to improve my strategy. plustheir live webinars. and my local scottrade office guides my learning every step of the way. because they know i don't trade i trade like me. i'm with scottrade. (announcer) scottrade... nked "highest in customer loyalty for brokerage and investment companies."

tracy: good afternoon. i am tracy byrnes. >> i am adam shapiro. tracy: lou dobbs is here with his bernanke report card and how the chairman did when he met the press yesterday. >> levels not seen in nearly three years. who can win and what drew is calling a neutral housing market. tracy: first, top of the hour, let's head straight to the floor of the new york stock exchange.

this is painful today. nicole: it is tough. it is tough for all those folks that were saying we are on our way to 16,000. there are a couple of things that we are watching. another 200.2 the downside. back-to-back. concerns about tapering. concerns about china. that really has been front and center. very strong dollar. no safe havens to speak of. gold is down $83. we are also watching the vix, the fear index very closely. remember when it was at 12? 18.5. here are some data loggers for you. whether it is disney or intel or coca-cola or financials like bank of america.