bernanke. give thanks to the pups. how it may boost productivity. all of that and so much more coming up on "market now." ♪ connell: i know you want to talk about those dogs, which we will coming up in a few minutes. top of the hour. a lot to do today. we have some team coverage. dagen: we start with nicole petallides on the floor of the new york stock exchange. nicole: a rough couple of days. down over 300 points yesterday. today is a different picture. bouncing back a little bit.

we had two in a row. traders are not surprised to see a little bit of a pullback coming up. i do not know what you want to call it. a little bit of a bounce today. the nasdaq down one third of 1%. a losing week on wall street. some of them are starting to come back today. volume is very heavy. volume will be very heavy and could be volatility at "the closing bell." up 45 points. 14,803 on the dow jones industrials. that is the latest. over to jeff flock. jeff: i am in the the s&p pit.

a big drop-off in oil yesterday. 3%. lowest in seven months. down another present in oil today. rbob is down again about a percent. that that gas is off as well. gold bounced off a bit today. silver, pretty flat today. nagel was the lowest it has been since 2009. terrible for nickel. corn, a big down yesterday. steel down today. gold, by the way, the cme has increased the margin requirements. you have to put up more dough

today. they have increased margin requirements. be careful when you get out there. make sure you get enough capitalization. connell: jeff and nicole starting us off. thank you. dagen: welcome, greg. good to see you. nowhere to hide yesterday. i mean, no where. >> i think you will see a lot more volatility. with the fact coming in and really time monetary policy to the economic data, the economic nader just by nature is volatile. connell: it is funny to watch, i do not know if money is the right word, but interesting, you see people saying the that that is not communicating clearly, it

is being misinterpreted it. >> the expectation was that the fed would kind of taper in september. they let it sit for a little while. then maybe they raise it. maybe they'd drop it. they communicated over and over that they made raise purchases again. bernanke laid out this proposal. it became a very aggressive taper plan. i think traders looked at that and said not only do we have to deal with the tapering process beginning, but now we can talk

about the in game completely. dagen: can you construct a portfolio that disregards the feds timeline? look at municipal bonds for example. worst one-day performance since 2008. today is the day. i have already talk to people about what to do with the 401(k) plans. assuming there will be volatility, knowing the federal reserve will stop buying bonds, what do you do now? >> i think it is difficult to avoid it. they have been so aggressive growing their balance sheet. that is filtered through into all of the cracks of the market. that is one of the things that stein was concerned about. everything has been inflated. now when they start to unwind that, even those small markets that are out there, i think you

will see those prices correct. as this unwind, everything will start to unwind with it. it is difficult to construct a portfolio. connell: did you always believe that? at some point this was going to happen; right? did you always think that the stock market was artificially propped up and then it will start to sell off? >> absolutely. if you look at the correlation between asset prices and stocks. the multiple tends to trade up. when they are buying zero, it tends to trade down towards 14. they have been buying 85 billion for the last couple months.

i think it will job closer to 14 or 15. probably another five-7% correction in stocks. dagen: this will be self correct being in a way; will it not. once you start attracting, at what level do you think you will attract buyers? if there is serious equal and onyx weakness, the federal reserve maybe will not stick to the timetable. >> that is right. now, i think bernanke has been neutered a bit with president obama's comments. you see that today. now, going forward, it is hard to figure out who will be in control. where do we see that leadership emerged. that will be interesting to see

going forward. connell: thank you for starting us off before thank you. be well. connell: the printing of the money never should have happened in the first place. dagen: at their are so many people who have been crying about the fact that the federal reserve has been buying all of this that. now that it is ending, are you cool with how nasty the markets were yesterday? >> this whole notion that we have to have a central banker, i think it is really truly absurd.

dagen: you want to go back to the panics that we had before? they were a great deal worse before. >> i think after 2008, there probably would have been some trouble. i think we ought to focus on totally different things. creating incentives in this market. the tax code is about 72,000 pages. nobody knows what is in that. it is a total mystery. we need the regulation. connell: the hypothetical conversation about doing away with the federal reserve -- back

to the original question that dagen asked. someone like you who has been ranting and raving about it, we should not be doing this, rates are too low for too long. you should say, if they are getting out of the way, that is a good thing. >> i think that that is absolutely right. there will be consequences. dagen: at the upside higher interest rates. it could force the hand of every single lawmaker in washington to do something about it. >> correct.

dagen: if the republicans want to use it, they should be running the numbers on interest. >> that would be an aspect of leadership and very welcome. dagen: i was waiting for the press release yesterday. connell: markets in general, assets in general get so propped up. he agreed artificially by the federal reserve. it could get ugly. >> we fought the ball bowled by another bubble. we hope it will deflate slowly rather than pop.

dagen: the american dream, owning a home. that is not going away. neither is the federal reserve. connell: good to see you. dagen: federal reserve, the president of st. louis federal reserve saying that bernanke should not have talked about a timeline of pulling back on this bond buying. connell: new federal regulations are set to hit the trucking agency. more rest for drivers. this is a big money issue. it could be very costly. dagen: connell knows how to drive a big wheeler. airline passengers, if you fly, you may be able to soon use all of your electronic gadgets during taxi, takeoff and landing.

connell: great. dagen: unless you are sitting next to senator chuck schumer may be. take a look at oil. ♪ ♪ [ cows moo ] [ sizzling more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market.

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dagen: the number one loser, not on the new york stock exchange, but the s&p. nicole: taking a look at oracle. the markets trying to give a little bit of a bounce back. oracle is under some significant pressure. they did this the analyst estimates. trading at $30.39 a share. when you talk about their newer computer businesses, that continued to decline. they did double their dividend $0.12 a share. they will be transferring from the nasdaq to the new york stock exchange.

that will be in the middle of july. big picture here, a tough quarter in the stock is really representing that. down 8.5% for oracle. dagen: thank you, nicole. connell: time to make some money with our friend charles payne. there was a major selloff yesterday. charles: feeble rebound today. i would not be in their buying, that is for sure. we are in that emotional time. i think there will be all kinds of of that volatility. earnings season has kind of come and gone. there is not a bot of things that can rescue the market other than becoming oversold. i heard some of the interviews that you guys had.

everybody is tugging at central banks for more money. it is not just in america. japan. they will do all of these things. everyone was like, okay. japan will probably have to step up to the plate again. they did a little overnight. in america same sort of thing. i disagree with some of the things that i heard. especially the stock market bubble. we are nowhere near bubble territory. people are spending money because, i think, they have just given up on the future. our savings rates have plummeted. credit card borrowing has only started to inch up after years of going down.

i think regular household that there have been 30 conservative, to be quite honest with you. dagen: the people who have been conservative and try to save their money, they will be rewarded for this. charles: of course, that is not what the bernanke wants. listen, the banks have done well with it. dagen: his politician has failed. charles: i think it is crazy that he will abandon this policy. i do not know what he will do. tapering is a lot different than actually raising rates. connell: yes. dagen: at the markets are raising it for him. connell: do not worry about turning back gadget of yours

off. the faa getting ready to loosen restrictions. we will have the details on it straightahead. dagen: bringing your dog to work. it will help inspire your creativity. i promise. brian has a mountain dog named duke. he is so cute. take a look at how the euro is doing today. not so cute. ♪

♪ >> 24 minutes past the hour. in boston, and arrest warrant has been issued for aaron fernandez. the warrant is for obstruction of justice for the murder of odin lloyd. he was found dead on monday less than a mile from fernandez is called.

an estimated 1 million people took part in a demonstration. the president is holding an emergency mating with cabinet members. forest fires set hazes of smoke and fog. they are trying to distinguish the fires. those are your headlines. back to dagen. dagen: when tim duncan missed that too thin, i went and got into bed. it was heartbreaking. we can still celebrate this weekend, nonetheless. this one is for alec baldwin.

the federal aviation administration is expected to relax the ban on the use of some electronic devices between taxi takeoff and landing. you should be able to use the kindle e-reader maybe the entire time you are on board. cell phone calls will still be banned. right? connell: annoying. i do not like to call anyone. dagen: you do not like to talk. today is take your dog to work day. according to a survey, nearly one in five companies in the united states now allow pets in the workplace. it is on the rise.

there is room own. ramon does not work. he is kind of like a lazy dog. there you go. he is a good dude. the miami heat, back-to-back nba champions the feeding the spurs. lebron james named final mvp the second year in the road. it has been quite a road for the king. the heat are the first team to beat the spurs in an nba final and the first repeat champion since the l.a. lakers did it just a few years ago. it was 2009 and 2010.

it makes you like professional basketball. connell: absolutely. by the way, the markets which we have been talking about here, they are back to the negative again. up early today. now down on the dow by 27. the taper talk was poorly timed. does wayne rogers agreed? we will be asking him straightahead. dagen: here are some winners on the s&p. ♪ with the spark miles card from capital one, bjorn earns unlimited rewas for his small business

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connell: markets now with stocks back in the red. nicole: it is that kind of volatility that we have been seeing. since may 22, we have seen the back and forth. the volatility. take a look. we started off in the green. we are down 50. over to the right on the top, sometimes that will be a whole day here on wall street. we do have a rebalancing at the end of the day. that may bring some volume and volatility. back to you. dagen: james boehler defending his decision.

reducing the pace of asset purchases. joining us now is wayne rogers. wayne, do you agree? >> well, i think the whole emphasis on monetary policy is a big mistake. it has to start with fiscal policy and the congress. you cannot expect them to, you know, do this by measuring it moment by moment and things like that. we may respond to something like this -- in the long run, it will not make a lot of difference. it will make a difference if interest rates start moving up and lawmakers are forced to do something. >> we know that.

in other words, we know that this is what it has been doing. we know for the fact that the federal reserve is printing money. you cannot go and have a treasury off of bonds every week, every monday, and have the federal reserve be buying the bonds. it just does not make any sense. it is a way to print money. we have known this for years. he is not telling us anything new. that is what i am trying to say. what about wages? that is your real inflation concern. >> you cannot see that when you have an access of 7% unemployment. you also have to remember

something else. in the index, the two most volatile things are fuel and food. they are not in the index. they are not included. i do not see -- there are no implications about raises. that is because of unemployment. dagen: and that is the reason why he has continued to buy bonds. it seems that he is willing to accept that asset bubble. >> i agree. that is what he is willing to do. that is a political decision, not a financial. the president of this administration has been at it for almost five years and nothing has happened. hey, give me a break.

dagen: great to see you. thank you so much. connell: wayne rogers. talking about mortgage rates going up. up from record lows. today, we will take a look at the long-term affect of that. dagen: david lee miller joins us from the newsroom. >> consider this. in the last year alone, home prices went up about 10%. a moderate increase in mortgage rates is not expected to hurt the recovery. the average is now 3.93%. fear that rates will continue to increase is causing some potential buyers to now jump into the market. >> i was actually waiting to see how low they would go. i wanted to lock in when they were at their lowest.

i am thinking this is the best time to buy it now. >> in the next year, the interest rates will hit about 5%. we could see trouble on the horizon, though, if it does hit the magic number oh seven. that could self serious consequences. connell: it is a lot higher than we have been, obviously. what would that impact be? how we run the numbers on it? >> the impact is going to affect different communities differently. buyers with median incomes would be priced out of already high-cost markets such as san francisco. other areas that would be unaffordable for many buyers

include seattle and miami. it is important to underscore that while the prospect would chill home sales, both economists do not think we will hit that number any time soon. >> i do not think that is something that is likely. you would have to see something happening much bigger in the overall economy. i do not think it is likely. >> during the recession, new home construction dropped by roughly half. now, thanks to supply and demand, we are starting to see what could be a very robust housing market. a great deal will depend on the broader economy. connell: david, thank you. david lee miller four us in the newsroom. great story.

dagen: new regulations could create a labor shortage in that industry. connell: added to my long-standing theory. nevermind. twitter founder jack dorsey teaching small business leaders how to harness attention in social media. he sat down with our friend, peter barnes. talking about rates all day long. dagen: hello. connell: hey, how's it going? dagen: that is a big move. connell: exactly.% a big move from where we were. we will be right back with more "barkett now." ♪ i want to be prepared for the long haul. ishares minimum volatility etfs. foa smoother ride. find out why 9 out of 10 large professional investors

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♪ >> i am adam shapiro with your fox business brief. signing a 25 year oil supply deal with china. the move will help boost russia's ties with the world's largest enters the untrained energy consumer. the idea for saving for a rainy day may actually be drying up. 46% of americans have less than $800 stashed away to cover

emergencies. one of the first apple computers ever built will soon be for sale. 1976 apple one is on the auction block. ♪ [ shapiro ] at legalzoom, you can take care of vtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. i did? when visa signature asked everybody what upgraded experiences really mattered. you suggested luxury car service instd of "strength 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 signature. your ea of what a card should be. connell: these new regulations in the trucking industry take place the first of july. it could create a labor shortage. bill graves is with us. thank you, sir, for coming on. we appreciate it. >> my pleasure. connell: yyu cannot drive more than 70 hours in two days.

>> we think that there will be a two-3% the client and our product vividly. depending on the kind of operation that you run. connell: things are picking up. we hear stories all the time. the economy is getting better. we are certainly seeing a lot of that vividly in the energy sector. it is not great, but our industry is moving right along. connell: 70 hours, seven days. that is a lot of driving. you lose your 12 hours.

why is it okay to do that? do you see the other side of it? >> well, in a hearing just the other day, a congressman offered a gold star to anyone that could explain it in 30 seconds or less. it is a complicated issue. we agree with about 90% of this rule that has been in effect since 2003. where we have the heartburn right now is what is called the restart. most drivers are not stretching their schedules to the point that you describe. most dry between 45 and 50 hours a week. the federal government has said that we want to force you to take more rest time, take you off the roads for greater periods of rest. if you are offered more time off from your job, are you going to necessarily rest? we do not think that that is

probably the case. it will make it more fragile and put more on the cost of moving america. connell: i understand the points. it is interesting to look at both sides. dagen and i are off on vacation next week. we probably will not rest as much as we are supposed to. thank you. >> my pleasure. dagen: 104, good buddy. why the pullback today? why the reversal? >> two hours into it today. hoping for a bounce. coming in this morning, s&p futures were up small.

i think we have been playing this waiting game to see what will happen now. now that we are two hours in, we are not seeing much out of this market. i think they are starting to take additional risks off the table. we have a busy week next week. there are many different factors that are there. as of now, risk off is still there. dagen: good to see you. rest up for next week. you are getting to a level where it may start to attract some buyers. connell: there is a conversation for us to have on air. here is a call to all entrepreneurs. some advice for you. dagen: peter barnes joins us now with more of this interview.

peter: jack dorsey was the star attraction last night. he cofounded twitter. he is now rocking the consumer payment business with his new startup square. it is on track to process $15 billion in payments this year. it gets about 3% on each transaction. do the math. small businesses are big square customers and many of them use twitter as a marketing tool. here was jack dorsey's advice for other entrepreneurs in the room last night. >> i found it important to pay attention to the team and organization and design and engineer the organization as much as we do the product. if you have two entities, one person that cannot get along with another person in the

business, you do not manifest in the service of the product that you are trying to create. your customers will see that. peter: karen mills says the agency is seeing more small business loan demand. >> we are seeing more and more demand. small businesses are starting to get momentum in this economy. what we need to do is make sure that they continue to have the tools that they need. peter: the obama administration has proposed waiving fees on loans under $150,000. connell: interesting. thank you. peter barnes with us from washington, d.c. dagen: brad pitt versus a whole lot of adorable monsters. the challenge may be too big.

connell: the nasdaq winners today. directv, comcast -- you can see them. they are on the tv. we will be right back with more markets now. ♪

♪ dagen: look at that. his own graphhc. "world war z" hitting the box office. "monsters university" also hitting the box office. charles: it could take a beating. brad pitt is a zombie in "world war z."

already open pretty well in australia and korea. "monsters university" could bring in $70 million. more than a decade after "monsters inc." originally appeared. "man of steel" is doing pretty well in its second week. as popular as zombies are, you kind of are going into a smaller and more narrow market. not many parents will take their kids to see "world war iii." will it open in china?

they do not know. there has to be something else bothering him about world war z. look at that. it will be kind of disturbing. dagen: you know what i will be watching on vacation all my flight today? "doctor strangelove." connell: i literally thought she said you know what i will. watching next week is dennis kneale connell: i want to make something clear. we are not vacationing together.

dennis: do not believe them, guys. connell: you did not even need to say that. dagen: no one would ever think we were in the same city when we are not on air. connell: dennis and cheryl are coming up next. more dennis kneale. we are now down. we are in the red. what should you do right now? that is the question on the market. dagen: fox business summertime showdown. that is what connell looks like with his shirt off. not like i would know. ♪ a simpleuestion: how old is the oldest person you've known? we gave people a sticker and had th 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. ♪

dennis: and dennis kneale. cheryl: i am cheryl casone. all wild market ride not yet over after the largest stock sell-off since 2011.

chad morgan zillow lander and oliver porche here to tell you how to play this market and sticking around as they go head to head in a brand-new series, fox business summit time showdown you not going to want to miss. dennis: mortgage rates shooting up and to buy a home or sell what we have advice now. cheryl: restoring apple's chambly day guest is says is simple, you need to be cool again, ideas how to achieve that coming. dennis: stocks every 15 minutes after two days and 550 down points stocks and commodities zigzag with phil flynn in the pits of the cme and nicole petallides at stock exchange. nicole: you are counting, and investors at home get nervous when they see those back-to-back losses particularly yesterday over 300 points, and today and coming back, down 100 points and

we have a feeling people are nervous. that is the kind of environment we are going into a weekend, we have some rebalancing happening on wall street. people are just taking a breather here. it is very busy, volume very high, retailers and banks stocks pulling back, clocking in a losing week on wall street, all the concerns that are sticking around year whether it is ben bernanke or china or europe and those are the things hanging over our heads. we will see if we turn around by right now down 34 points. over to chicago what is going on? >> it is dying right now and a lot of fear coming into the market place. we esteem especially in the oil market. the oil market was trying to rebound when overnight july injected capital into their

momentary balance and some more bullish news that the imported more fuel oil and the and five years but that has gone away and we are feeling that heaviness in the market that this is starting to fade away. oil is pushing into the lows, $93.30 and it is bringing products down as well. good news and bad news, a colonial pipeline reported by bloomberg back online putting downward pressure and also playing in to the scenario we are seeing right now. is goals reinstate haven status? with all the other markets bolt is actually up on that date by $6.10. we are up eight.two cents. is it oversold? we do know this, over night we saw a lot of physical buying once again that has slowed down

ahead of the fed meeting, it picked up big time in europe and china and that may be another sign that people are nervous about what is happening in china, what is happening in europe right now and use the physical market going that maybe they are getting a bit nervous and why we are starting to fade. cheryl: phil flynn. and more on these markets we have oliver porche, gary goldberg and cyclical as portfolio manager chad morganland. this is just fear based pull back but you like these. >> let's put it in perspective. for the year ending may 31st and was up 25%. seven% correction isn't just to be expected, it is healthy. you want to let air out of the balloon. is important and what sets up the next market bull run. corporate earnings are strong, corporate balance sheets are strong nd plenty of trouble spots in the world that q e and

similar measures not just from the u.s. the bank of japan and the ecb and other central banks is going to continue for quite some time so when you look at this pure back which is the motion driven, not fundamentally driven we think -- we think that is healthy and normal and ultimately speaking by year end stock gained 5% to 7%. cheryl: pull heads of not prevailed. we have 550 points in two trading sessions and firsthand witness to it. it has been a wild two days and all of this because ben bernanke said later in the year we will pull back on q e. is not a shock for anybody. what is the deal? >> this has been a liquidity drawn rally you have seen since the beginning of the year. as the fed signals they will perhaps pull back you are starting to see the risk off trade kick in here. i like oliver, he is my friend but the economy is only growing

1.5% for q 2. earnings and revenues were flat year over year. you don't have get up and go in the economy so i was thunderstruck that the federal reserve came out with such a bold, bullish forecast for 2013-14. and an economy in the second half of the year, 1575 on the s&p is where we will land. cheryl: on the other side you make a point q e has accomplished everything it was supposed to accomplish and enough is enough and the fed should be pulling back. this economy -- >> there are some points made, either the economy strengthens sufficiently that the fed and pull back asset purchases and paper as they're talking about going from $85 billion to $75 billion a month, who knows? there's a lot of money being

or the economy doesn't strengthen enough and canned tapir and liquidity will drive asset prices. q e was designed for it deflation, and designed to raise home prices and in mortgages -- i am not saying the world is perfect. and we just disagree with what the ultimate outcome would be and we are more bullish than he is. >> equity markets trading at 15 times multiple but you really have a growth trajectory of 2%. normal trajectory for the equity market with 15 times multiple gdp growing. but you don't have that. you need to see a fill in with economic activity in the second half for start to see more -- i would like to point out of this

market, as you see even taper you are seeing risk of trade kick in and yields go higher, and maturities to four year, 3.5 year maturity to waive this out and perhaps wetter the approach to their portfolio. cheryl: you have differing and interesting and opinions about the fed and their actions in q e and the changing share but we have a lot more with you coming up later in the show. we will leave it here but you guys are coming back in a little bit, stock picks for the first round of the new series, fox business summertime showdown is coming up in 30 minutes away. dennis: thanks to fallout from the fed mortgage rates are heading higher and if this is indeed the end of supergee mortgage rates let's watch the housing rebound or spark a rush of new sales? joining us bankrate.com

financial analyst greg mcbride. thanks for being with us. 30 year treasury around 4.25%. where is it going from here? >> over the next few weeks we can see it stabilize at current levels and potentially pull back a little bit for two reasons. ben bernanke's words will fatal little bit and economic reality will set in. we get one or two disappointing route write lousy economic numbers and you see the long end of the yield curve pull back a little bit and that will bring mortgage rates back down but i don't think we will go necessarily back below 74% mortgage rates but i don't think people have to be concerned rates will keep going higher from here because i don't see that happening. dennis: this spark more housing sales before rates rise? does this make me say i am not going to buy because of a kick

or two? >> mortgage rates are very low. when rates were last at this level was the early part of 2012, and all we were talking about was how low mortgage rates are but when the economy stinks nobody wants to buy us a house. economy is doing better so let's look why the fed would be dialing back the stimulus. it is because the economy would be capable of standing on its own two feet. that is the critical ingredient that gets people to buy houses. people will buy houses and mortgage rates with the they're 4% provided the economy is strong enough to stand on its own. of the economy is not strong enough people are not confident to take the plunge into homeownership no matter how low mortgage rates are. dennis: what i am the good about is a place to live, what surprises me is from 2000 to 2007 when housing sales were to read the average 30 mortgage rate was 6.5% so certainly 4.5% now got nothing to worry about.

>> it is all in the context. are you comfortable where the economy is, your job security, your ability to service that debt and when the economy is bad people hunker down and not thinking of big ticket purchases. when the economy is doing better and people are feeling confident, i think i will keep my job they are more comfortable taking the plunge into home when rates have been going up is because the economy is better. >> one last thing, the new york times, mortgage rates tend to move a lot in a short amount of time and they stay where they are for a longer time. are we at that point or are they still going up? >> i think we are there. given another week or so for the dust to settle, i think rates stabilize and even pull back a little bit if we get some less than stellar economic data. dennis: which means the economy is not as good as we thought.

thanks for being with us today, greg mcbride. cheryl: let's stay on this fed discussion because the center is speaking out, james bullard saying ben bernanke should not have talks about the capering cuts. dennis: the markets would say that is a pretty good view and the weekend box office, why these animated creatures may make for a monster hit. let's look at energy. my mantra? always gthe extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal

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cheryl: like we had over the last two sessions, with general market sentiment. what you see is some leaders, and banc of america, and what is more interesting is if you take a look at the interday chart for the dollar after 550 point loss, you would think there is the bump up in the market. we were down, open up to the

upside, and the negative stance. and explain that for us and bring her in right now. action was so quick this morning. >> we were up 100 points and pulling back, some jitters on the floor right now so that is what we are watching and the head of the week i don't see anybody running in. take a look at sprint, clear wire, a story we followed for some time, we saw clear wire halted up 3/4 of 1%. it raised the buyout offer, and they made an offer. and dish made another offer and sprint offered $5. in the meantime the ceo is confident his company and acquisition of sprint will be

completed in early july. there are multiple stories going on in this particular story in itself but it is all about wireless networking and services, very valuable, those wireless airways are priced at this point. cheryl: i want to point out to our viewers that the levels right now we got a note on the are on tap for the biggest losing week in a year. the selling vsel at the moment the worst week in a year for the dow and the s&p. you are doing a great job. thank you very much. dennis: a voice of dissent speaking out, seem louis fed president james bullard saying that fed has quote nick and appropriately time its move to map a timeline for reducing bond purchases and peter barnes joins us with more. extraordinary in a way. i have neat not seen that kind of direct criticism recently. >> this is bullard's first-ever dissenting vote since he joined,

became president of the federal reserve bank in 2005. he did not like the decision by ben bernanke and his supporters on the future of quantitative the thing. they said the fed could slow its bond buying program later this year as long as the economy keeps growing and unemployment falls by $85 billion a month. in a statement released this morning the same louis fed said bullard dissented because he felt there should be more strongly signaled the awareness to have its inflation target of 2% for low inflation reading. and on the downside, bullard believes to maintain credibility the fed must defend its inflation target when inflation is below the target running at 1% and above target which suggests bullard wanted q e to continue unchecked greed and increased. as a result the statement said, quote, president bullard felt the committee's decision to authorize the chairman to lay

out a more elaborate plan for reducing the pace of asset purchases was inappropriately times. bullard felt the more prudent approach was to wait for more tangible signs the economy was strengthening and the inflation was on a path to return towards that 2% before laying out the exit plan. dennis: thanks very much, peter barnes. cheryl: the fed and the markets, a busy week for both and we will end with round one of the fox business of the time showdown. stick around. you won't want to miss this. dennis: another round, and is really start making the rounds, video chat, a going to be the next big thing. first the worldds currencies fairing against the u.s. dollar. you hurt my feelings, todd.

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>> your fox news minute. the president holding an emergency meeting with his cabinet members in brazil following a week of protests that turned violent, and police and protesters fought in the street. 1 million people took part in

the anti-government demonstration. 40 injuries and one death have been reported. in singapore, as it is fair pollution reached record levels for the past three days. forest fires in indonesia and malaysia said that he is of smoke and smog to singapore. indonesia is deployed aircraft and helicopters to try to extinguish the fire. in boston the arrest warrant has been issued for new england patriots tight end aaron hernandez. it is for obstruction of justice in connection with the murder of 27-year-old odum lloyd who was found shot to death on monday unless that a mile of hernandez's home. the attorney hernandez had no comment and those are your headlines. back to cheryl. >> appreciate it. we will stay on breaking news. take a look at the dow and the s&p 500, the index is on track for the biggest losing week of the year. since the week ending june 1st,

2012. for the last year if the index is closed, if the dow is down 2.1%,.1% for the dollar 2.3% for the s&p 500 and little hole between 9 and 400 eastern time and we are close at this point looks like we will have the worst week of the year for the dow envious and be and we will stay on it. over to you. dennis: israeli attack fever and a new startup making waves and making rounds, rounds is a self-proclaimed first social and she out network, allows friends to securely surf the web tomorrow in live video conversation on apple and android operating system. joining us, marketing chief natasha from israel by way of el day. thanks for being with us. tell us what this video chat network does. >> as you mentioned you can video chat and do a bunch of interactive things with your

friends. it is very basic level and what we try to do is bring the fun elements we have, thinning out in real life and online. dennis: a lot of parents worry kids disappear into the screen and being on line is not interactive pursued. you have announced a new first-ever capability for any video chat. tell us about that. >> the first time on video chat, you do that together and stop and do all these fun interactive things we would do in rollout. dennis: go to the same online shopping site and be talking to each other when looking at clothes to get there. a far more interactive, that is good. how hard is it to make that happen? >> we have the p i and have been working with the developer to put data in the platform. dennis: don't use that in a tv

interview ever again. this interest me. as a parent of a 13-year-old i worry when she is on tumbler or instagram that strangers or other kids, you don't let kids on your network talk to kids they don't know. >> correct. in order to do that platform you connect to facebook and we only allow you to speak with your facebook friends. there is no way a stranger can contact or have any interaction with any users. dennis: the weakness if my daughter were on facebook which i never let her on facebook, they are ushered into your network. you can't stop it if they let a facebook friend be a friend. >> yes but we have a strong supporting system and make sure if there are any reports coming we blocked users straight away. security file users have a lot of teens. that is our main priority. dennis: yet eight million users so far. only half a million mobile at a time when everyone is going mobile. what is your plan to take advantage of the mobile thing. >> we want some mobile apps.

what we have done is built a platform as opposed application. so with every platform, every device we are adding we're learning more and giving you what they specifically want to. planning on continuing to spread the platform solution, adding more devices, making sure we have the best hang out platform possible whether it is quality of the video chat or the content we are bringing on and make sure it is the right fit for our users. dennis: what is the average age of music? >> 13 to 17. dennis: thanks for being with us today. good luck to you guys. cheryl: get ready for the showdown. chad morganlander versus oliver porche in a stock boy loral. dennis: restoring apple's on. against says it is simple. his ideas how to make apple pull again. meanwhile let's look at the day's s&p winners such as they are. i turned 65 last week.

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the. ♪ cheryl: we have a guest says he knows that to make their products cool again. don't worry about turning that electronic gadget off in flight. the faa prepared a list of restrictions. and get ready for the shutdown. hours are time stock contest is ticking off in moments. for now, it is stocks now every 15 minutes, and we have still at the cme standing by, first nicole on the floor of the nyse-listed. we are pushing session lows again. talk to me. >> reporter: it has been a tough few days spirited is a losing week on wall street. also, the were streak of the year.

also the fact we have turned this month into of losing month. let's start off with a we are seeing right now. the dow jones industrials are down to six points. a level of 147,013 volume is heavy, but as i noted, this week we are down about two and a half%. so for the month of june down over two and a half%. such a run since last december. every month has been a winning month. and i talked to some of the traders here on wall street, you don't sell now. you don't sell when the dow loses 5600 points. instead, if you are into the short-term you buy them here and then you sell in a few weeks. some who are nervous for later in the summer. most of these guys think we are a little oversold. that is the sentiment here on wall street at the moment. now is over to the cme and mr. phil flynn. what is going on? >> reporter: those nerves you're seeing in the stock market apply off on the commodity market.

that translates into a very strong dollar which has had the best guard since 2011. if transfers into lower commodity prices in most cases. oil prices once again pushing near lows of $93 per barrel. you also have a big drop of $0.5 in our bought gasoline, a 4-cent drop in heating oil, but noticeably absent from the sell-off right now is the gold and silver. there are both up right now. that may be a sign that it is risk averse qualities that are coming back to that medal. we saw a strong and physical demand on that market, and that is going up. he looked at the next, the nerves are still running high, back high and the date, still above 20, but we just turned lower, simi bls concerned. i think if you look in the overall situation the, the rally that you like to see after a big sell-off like yesterday, it just is not happening. that makes people nervous going

into the weekend, and, of course, it makes it hard for a comeback rally. they don't see a comeback rally. dennis: thank you very much, phil flynn. apple once seemed all but perfect, but for the first time in ten years it has reported shrinking profits, declining shipments of iphone. what is really wrong? joining me now, founder and ceo of network insight, a real time analytics firm. thann you for being with us. what do you think the biggest two, three, four problems are? >> i think the biggest issue is, they are not listening to thes. you know, steve jobs always said you as the customer what they want and it probably won't tell you, but in reality in today's world we don't have to ask him questions. we can listen to them. dennis: what you learn? >> he learned the a losing traction with millenniums and teens. there represent roughly $500 billion in the u.s. a precipitous loss in what that is happening in the conversation over time.

equivalent to what the fed happened with the stock ppice. dennis: what other conversation saying? >> much during the conversations across roughly 200 million place across the web. about 800 million consumers. what they're saying, let's take a worldwide developer's conference, for example. people were excited about iowa seventh, there were not excited about that in and of itself. a working parent to android. and you looked at things like the itunes ready of, they were not really interested or injury. it is an old thing, not new. the new thing is spotify in pandora. dennis: it does seem little late. it does immolate. but was apple ever thinking, hey, what that 12 year-old what? does it seem -- seen that they should realize that they need to look at what 12 year-old what? >> we have to go with 13 euros because of the compliance,

but they think the are going to drive this. today's world where the consumer moves at a speed that is way beyond any company, we have to get past using our got only and put data next our intuition. that tells me what we need to drive that, and apple is not doing it. it is clear with a new commercial, clear when they came out with the mac genius, and they cut them after one week of being on tv. dennis: what's wrong with the new commercials? >> the new commercials are kind of going back to nostalgia. you take a design in california by apple? really? the consumer doesn't really care . kids don't care. 70 percent of the product is made some morales. is not made in the u.s. is the authentic and honest. with kids specifically its net inauthentic a net one nothing to do with you. dennis: you're talking your own book. you sell the services to help them track all those opinions. without putting your own services, tell us a couple of key thinns that apple needs to

do to fix this? >> they need to get into a mode where they are listening to their consumers. it is very clear that there not. they're listening to their consumer after the fact. the great thing about this date is when i am making a decision money to make in an hour rather than the future. stop thinking that we know what the consumer wants and start actually listening to them by segment. the massive drop in interest, almost 70% drop in interest from anneals and teens. that is a massive issue. let's try and figure out what is that we should be bringing to them and let's actually in its use our creativity in that way. dennis: i'm sorry, 70 percent drop in interest and apple for millenniums. based upon what measurement? >> based on the number of conversations, and we correlate that to let the stock price. it is a massive issue, not a small issue, and these people, $500 billion of spending per year in the u.s. alone from anneals and teens is the issue. dennis: you might think about an extra business. investors.

a 70% drop we might have thought that maybe it is a sell. thank you for being with us. cheryl: here they come. chad and oliver walking into our studios to face off in the ultimate stock challenge. the fox business showdown begins next. ♪

♪ >> reporter: i'm jo ling kent with your fox business brief. twenty-five states saw their unemployment rates fall in may led by big drops in california, new york, and hawaii. the highest rate. the national unemployment rate is over seven and a half%. shares under pressure on news of a downgrade further zynga. they kept saying the transition will take longer than its acted. they might not benefit from money gambling until 2014 or 2015. and the man of steel dominated theaters in china on its opening day, taking in 80 percent of the nation's box offices today. a successful run for the film builds well for the future.

superman and justice league franchise movie in china. that's the latest from the fox business network, giving you the power to prosper. ♪ (announcer) scottrade knows r clients trade and invest their own way. with scottrade's smart text, i caquicy understand my charts, d spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.

i trade like me. i'm with scottrade. voted "best investment services company." ♪ cheryl: it is the first day of summer, and we have of hot new segment. ♪ "summertime showdown." every friday we will pick to stock traders against each other and bring them back. are challengers today, chad morgan lender, portfolio manager verses oliver portia, financial services presidents. we are going to start with you, chad. go big or go home. your first pick is? >> walmart, consistently growing and profitable and well-capitalized. trading around 73, 74.

our price target is $84. it is a dividend play as well. two and a half% dividend from 15% dividend growth rate billing over for the next a bloodier. they will be getting paid well. cheryl: taking a rest in the stock is down year-over-year by 8 percent. >> that's fine. cheryl: there you go. you say on the other side of this, for, that thinks mollet's in, very small. >> very small, but not very new. to zero is a great company. we all know it. it is not just to add zero. will we like, it is making great expansions into mexico and other developing markets. the future is looking very bright for them. cheryl: e should say, it is actually up 41% of the last year. you're still saying did in. still a lot of room to grow because of the spent ability. cheryl: from small back to big with chad. triumph.

>> well, this is an aerospace parts manufacturer, so you're playing the wave of the big jumbo jets and manufacturing with boeing and airbus. this stock, we have a price target of $90 per share. believe it is a consistently growing and profitable well-capitalized company. what you really have is a company that no one has heard of, but it has gone up around 300% in the last ten years. cheryl: it has, actually. the stock is up 35%. so it has been performing. one month it is up 8%, says something is going on. >> a terrific company. you are playing of that whole cyclical move with the aerospace industry, and they have a very big pipeline. cheryl: your second pick, a little bit bigger. >> bigger, but one of those companies that we have offered up but did not think of from an investment perspective, wd40, a company that commands the economy continues to shrug a long as we were talking about earlier in the segment on the fox business network, we think that is going to be a big

beneficiary. sales are growing, revenue is growing, margins are improving. a lot of good things happening. it is one of those companies that is well-managed and should do very well as for the next few years. cheryl: year today of 17%. you are still saying it in now. okay. we will do this again. both of you are playing that consumer side. one of the sectors that we have seen that has really been hit has been consumer staples. dividend paying, safe, interest-rate sensitive sectors, but you are still sticking with the consumer. >> the dividend players, you want to look for a resource, not high dividend stocks because what is happening is everyone is on one side of about looking for yield. you want to be in companies that are really growing. growing their dividend. and so if you buy a company like walmart with a two and a half% dividend and it is growing 15%, you are better served than, perhaps, buying a high dividend stock that will lead more interest-rate sensitivity.

cheryl: what do you think? >> so, you know, we don't own triumph. we do own walmart. we like it for some other reasons as stated. a great business, but we look for strong balance sheets, share buybacks, dividend growing strategies. a consistency in raising the dividend. we look for attractive valuation. so when we look at the world, going back to your original question, the food and beverage sector is very well placed. the consumer is going to consumer to spend money, but there will spend it a very discerning fashion. you want to stay away from some of the war obvious areas like walmart. [laughter] cheryl: finger-pointing. >> it is in the "summertime showdown" after all. cheryl: only down four points, but it looks like we are going to have the worst we ever for the dow and the s&p. i don't know. three hours and 15 minutes to go. give me your best guess.

>> markets should trade-off. this was a liquidity driven rally until the beginning of the year and now you have the air sucked out of it by the federal reserve. cheryl: good luck. chickens. i will see you both in one month on another friday. picking up our series. again, thank you. want to remind you, a triumph group and walmart, oliver is backing to zero. also backing wd40. big versus small. what do you guys think of this? tweet me with you think will come out on top. i will see both in a month. now, next week, here we go again , capitol president's versus bob morgan, chief investment strategist, bringing their picks for next week's "summertime showdown". dennis: excellent stuff. love that. it is a quarter till roughly. meridian equity partners joins

us now from the new york stock exchange. is there rally really over? >> you know, it depends on how you looking at this. we had a rally in this market, and we have been looking for opportunity to take profits of the table. all the negative headlines that we have seen have not stoop to this market. i think investors are using the comments coming out of washington as an excuse to make some sales. we had a significant sell-off of the last two days, and it seems like the market is starting to stabilize. next week is the end of the month, and of the quarter. we will see good activity which will give us a good indication to see if this market can hold its own at this point. dennis: all right. market share has been rattled. i like an idea that maybe we're not going to get calmed. thank you very much. >> thank you, sir. dennis: today's "media minute." friday's big box of this class. brad pitt's $190 million zombie fest "world war z."

a good buzz in australia and career. could bring in 45 million. yet, it likely will take a beating from these guys. disney pixar as monster university. the animated film, we used to call them cartoon this, could hit 70 million when the weekend. and also, time for the fcc to stop being so foolish and prudish. it has been seven years in court dependent -- defending a million dollar fine for seven seconds of bear derriere on nypd blue, and it lost. a new chairman coming in. speculation is the fcc may ease up. no more fines for profanity or nudity. cable has gone wild. why are they still lagging a finger? and there is this. this sudden death of james endo fini has the soprano's soaring. maybe you could have guessed that.

cheryl: probably. a good point. well, coming up, las vegas san ceo coming out against gambling. online gambling. details ahead in the west coast minute. dennis: good news for air travellers and alec baldwin. why use in might be able to keep playing words with friends during take off. meanwhile, let's look and some of the day's winners on the nasdaq. i never rarity. ♪

♪ cheryl: the time for your westcoast minute. the nsa is looking to recruit silicon valley tech. an analysis done by the new york times found that not only do they go after data and companies , they are also chasing the employees attending events

such as job fairs and hacker conventions. las vegas sans chairman and ceo is morally opposed to on-line betting. he calls online gaming a toxin that will rob the onion the poor in an opinion piece he goes on to say that poker can be addictive and the idea of an american, especially the young gambling on the subway at home any time of the day is a dangerous precedent. take a look. he could make a lot of money if he endorses, but he does not. the stock is down one to one. in california, a panel has ordered the release over the next few months of up to 10,000 prisoners and recommending that good behavior rules be modified in the state. the judges want the state to create a list of names from be freed stemming from a supreme court ruling two years you're the california prisons were guilty of cruel and unusual punishment because of overcrowding and other issues. that is your westcoast minute.

dennis: he owns casinos and ones that online broker is a terrible, terrible thing. have you met mr. fadel? i don't get it. flight attendants constantly reminding you to turn out the electronic device could be a thing of the past. expected to relax that. not cell phones quite yet. the move also presenting business opportunities for airlines to expand wireless internet connectivity on board a market with an estimated 3 billion. the faa is expected to review the proposed changes by this fall. cheryl: all right. st. louis fed president. by the way coming year is me on the plane. takeoff, landing, i don't really care. anyway. it's true. we will i get in trouble for that? that president saying the bond announcement was poorly timed. dennis: former senior economist said warren mccarthy will join ataman nastily on this

dissenting opinion. it is quite extraordinary. ♪

♪ dennis: welcome back to markets now. >> markets struggling. compared to yesterday not as bad. the dow and s&p had their worst days of the year on thursday, both down over 2%. why you should not be worried about yesterday's losses. adam: the faa may relax rules for using electronic devices during takeoff and landing, which would be good news for airplane wi-fi provider which just happens to begin trading on the nasdaq today. we're going to talk to the ceo. ashley: guess what? summer officially kicks off today. we will have travel deals from the 80 percent of americans who will be taking a vacation this summer. adam: first we have to cover your stocks and investment, and

the market has gone positive. nicole petallides is on the floor of the new york stock exchange. phil flynn is in the pits of the cme. and peter kenney. it will all help us navigate through the fed-induced volatility. we want to start with nicole, and when did we go positive? >> reporter: a short time ago we turned back into the green. a shot about 30 minutes ago. traders say that you should buy here on the dip because the selling was overdone, oversold, and for the near term if you are someone who wants to play the market for let's say four to six weeks, someone like mark newton, a, you by end. it does not mean you hold onto it. later in the summer may be under pressure, but the feeling on wall street does -- sold two months. nervous jitters. the sigalert. ethier index. no worries. still sitting at a level of 19.