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.

the fear index up toward 25%. the volatility index. you should watch going into the closing bell. a look at 1-week charts, all lower. we will watch the month because since december everything has been a winning month. we will see. not looking so great. these are the things that i am following. volume and volatility going into the closing bell. back to you. ashley: thank you very much. my next guest says this week's selloff may not be such a bad thing for a market that is may be getting ahead of itself. joining me now, peter kenny, chief market strategist at night capitol. you say the sell-off does not bother you. is this the much talked-about correction we have been waiting for? as an investor, do i wait before i jump in? >> several things. first of all, this is a pullback, long overdue, welcome, though it has been very efficient and a bit frightening for many.

we have only seen a pullback of roughly 5 percent off of the all-time high on the dow and s&p which were reached back in mid to late may. so this, though it feels a bit fearful for many people, it really is only 5% which is not really a correction. another 5 percent would get as down to and which would technically be a correction. a modest pullback, though it has been on a very elevated volume with a narrative that speaks to a very heightened level of volatility, yesterday in particular with that 25% jump. and today at 19 which is well above the 6-month average. we are in for more choppy session is, more misdirection. clearly institutions have been lightening up on days when the market is going green. as a direct result, even if you were to buy here, you know, there is going to be a lot of volatility and you have to have a very, very strong stomach to whether it. adam: do you think that the fed as some believe has intentionally tried to take some

markets, but also of the housing industry where prices have started to grow at an unsustainable pace to prevent any bubbles, both in housing in stocks? do you think that there is validity to that? >> absolutely. no question about it. a feeling of the trading pattern for the equimark it. just this year, for example, we had a string of over 20 days of consecutive gains in the major averages. not too long ago going back to april and may, that is -- mendes said this. was an unsustainable track record. we know that reversion to the meat is the order of the day. we are seeing that. the fed clearly has induced some inflationary trends within the economy. you point out that highs in his -- house is a primary beneficiary. the fed is as responsible for managing as they are for

anything else. to the extent that they're looking to manage the bubble that has formed, whether it be equities, the form of stocks, housing, absolutely. this is part and parcel with the context for the fed is basically saying at some point we're going to have to pull the punch bowl away from the party. it looks like sooner than later, and this speaks to that. ashley: from an investor's point of view given the volatility in stopping this, you expected will continue through the summer, what can you do as an investor to play in this environment? >> in this type of environment you want to manage risk. that is the first quarter of the day. you want exposure. and if you have the decisions that you feel compelled and meet your objectives, you can hold on to them and hopefully there are dividend payers and certainly they have a very consistent track record in terms of equity performance and driving revenue top and bottom line growth.

expose yourself as a way of giving your overall portfolio protection on days where you see is elevated fixed. you're able to take advantage of that as opposed to it the reverse which is where you're seeing a downdraft in equity pricing. you have a way of balancing of your portfolio. you are looking for dividend, looking for a good track record of earnings. topline revenue growth, bottom line revenue growth. you want more exposure to defensive, you want to be riik managing risk, keep in mind, you are entering a time of continued and heightened volatility. and that is going to be the order of the day until we get to this point where those two teams meet, where quantitative easing or stimulus is going to start being withdrawn. hopefully the macro economic data as supports that thesis is strong enough to keep the tide rising. ashley: and strap on the old helmets, as they say. on this first day of summer.

adam: gas prices probably going to be cheaper because oil is extending its sell-off with prices selling below $94 per barrel. phil flynn of price teachers group is in the pits at the cme. just a couple of weeks ago we were talking about oil at a hundred dollars a barrel. anything else at play here? >> i think there is a lot more at play here. not many times do you got to the gas tank in fill up and say thank you for a few extra pennies. i think it makes people realize how much impact the fed has on our daily life. whether we are buying gasoline our groceries, that policy, quantitative easing has added to the cost, and we are seeing what happens when we pull back a little bit. we are seeing that today. continuing this big sell-off. everyone was talking 100-110, now they're talking 80, maybe even 75. in the short term charts we really seemed to pull back. it looked like the market was getting ready to take out a major support.

$93. all of a sudden something happens. the s&p started to rally. bond yields started to come back down and all the sudden oil bounced back up. ashley: a lot of people have been buying gold worry that inflation is going to get out of control. that has not happened. a bit of a recovery. >> welcome made is. what is kind of interesting, gold is acting like he did when it was a bull market, at least for today. good news is good news. when the stock market rallies, the gold market really bounced up, up $9. but even this morning when it looked like the stock market was going to fall apart gold was rallying as well, not quite as strong as when the stock market came up, and a lot of that came about because of the strong physical market. after that big sell-off yesterday the physical buyers came in in droves because they were nervous. adam: all right. thank you very much.

it. ashley: greece making headlines after a junior party decided to pull it to cabinet members following a dispute over state television. the greek prime minister ordering the broadcaster closure resulting in 2700 lost jobs..3 the new sending european markets down today, as you can see, read on the screen. meanwhile, back at home x and ron ceo to be recent instead to 30:00 p.m. eastern time. his original sentence it -- sentence is expected to be reduced between 14 and 70 and a half years. the reason tensing is part of a court ordered reduction of his prison term and a separate agreement with prosecutors that will allow for the distribution of around $41 million in restitution to victims of the collapse. by the way, in jail since 2006. and the average american is working less, spending only three hours and 32 minutes a day doing work-related activities.

that is down to home as from 2011. what are we doing? americans spend about five and a half hours of leisure activities per day, almost three hours watching tv. that is our job. and just about nine hours of sleep. who gets nine hours? adam: deserving the web at work can't? ashley: its work. adam: it pays. we are going to turn our attention back to ben bernanke because the former -- the actual president of the sudden -- said louis federal reserve bank is calling him out for mistiming. that announcement about tapering. mccarthy joins us with his thoughts on the fed comments, still making an impact on the market. ashley: just as we thought we were done with the mortgage robosigning debacle, there is a new wrinkle. you'll be talking about that. take a look at the metals that absolutely took a bounce. a little bit of a rebound. gold stopping the bleeding of nearly $10 today.

we will be right back. ♪ i turned 65 last week. the math of retirement is different today. money has to last longer. i don't want to pour over pie charts all day. i want to trav, and i want the income to do it. ishares incomes etfs. low cost and dersified. find out why nine out of ten large professional investors choose ishares for t etfs. call 1-800-ishares for ak. prospect, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd iludes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment

that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, yourhroat or tongue swells,ek you get hives, vision changes or eye pain, or problems passinurine. other side effects include dry mouth and constipation. nothing can reverse copd. does breathing with copd weigh you down? don't wait task your doctor about spiriva.

i did? when visa signature asked everybody what upgraded experiens really mattered... you suggested luxury car service instd of "streth 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 idea of what a card should be. ♪ adam: run by the foreclosure robosigning scandal? good times.

investigators in mortgage bonds are now getting in as well. investors in mortgage bonds. the losses could be huge. with more, elizabeth macdonald. what is going on? >> reporter: this same group that called the whistle. there are hundreds of instances where they are finding home loans, the status of home loans are incorrect. the bank's record keeping is really bad when it comes to the mortgage bond investors to have invested in these funds, so it is twofold. in other words, the investors are wrongfully getting hit with legal fees as if the home is still in foreclosure when it already went through foreclosure , so it is already said and done. done deal, so investors are still getting it wrongfully. and in the second part of that is there are so many delays in getting the foreclosure through that they are -- they have not even seen the billions of dollars in fees that could hit them. so it is twofold, and this is a big problem because bank record keeping is still an issue, clearly, according to a number

of studies, not just this one now we're taking a look at. so it will affect the big mortgage settlements, for -xample, bank of america with 22 investors. some of the securities popping a pair because of poor record-keeping. the losses could be bigger. they settled for eight and a half billion. afg and others are saying, we deserve more money and of that settlement and have been complaining about what they think is a low ball for that settlement. ashley: bad bookkeeping but lack of foreclosure -- disclosure. adam: here's the deal, here's the problem. one study is suggesting that this is a rampant roblem throughout the country. we asked the federal reserve and the federal reserve is still going to get hopefully back to us with a comment because they have a trillion in mortgage-backed securities which has quadrupled the level from last year. they're saying, we have fannie and freddie guaranteed mortgage-backed securities.

that is what they're telling us, we don't know of any other security weather is bad record-keeping, the same bond is sitting on the fed balance sheets. we will be getting back to you on that one. adam: bad bookkeeping at the nation's -- who would've thought? ashley: as we do every 15 minutes, let's get a check on the markets. different day today from yesterday. nicole petallides on the floor of the nyse watching some of these tech movers. >> reporter: people on wall street are pretty tired. one crazyweed, as you know. back-and-forth action. we also had not only the big markets, but thh stories. the story stocks. let's go take a look at oracle and facebook, two names that have gained attention. oracle came out with numbers. revenue shine. obviously business has been weaker than expected. as a result you're seeing tech stock down eight nap%. the number one loser on the s&p 500. big news is that they are also

transferring from the nasdaq to the nyse. so that is a big deal. then we take a look at facebook who came out with their big announcement along with is to ram which is a big deal. fifteen seconds of video for histogram. that is to compete with the vine which is a 6-2 video. raising their price target and put a buy rating which is why you're seeing that there with an apparel. ashley: a good day. thank you very much. adam: more trouble for detroit. questionable investments for its pension funds. motor city emergency manager is launching an investigation for. adam: the nasdaq may be losing oracle today, but they welcome gogo. that next. we talked to the ceo about how the first day of trading is going, but take a look at how the u.s. dollar is fairing, much stronger. as you can see, as we take a look at that nice quotation, the dollar today is also stronger. still a safe haven.

we will be right back. ♪ tdd#: 1-800-345-2550 opportunities are waiting to be found in faraway places.

tdd#: 1-800-345-2550 markets on the rise.

tdd#: 1-800-345-2550 companies breaking through. tdd#: 1-800-345-2550 endless possilities. tdd#: 1-800-345-2550 with schwab, i search the globe for thbig movers. tdd#: 1-800-345-2550 i can trade in 30 different markets tdd#: 1-800-345-2550 to help me seize opportunities, tdd#: 1-800-345-2550 to get an edge, i use schwab's global research. tdd#: 1-800-345-2550 they give me equity ratings on foreign stocks tdd#: 1-800-345-2550 based on things like fundamentals, tdd#: 1-800-345-2550 momentum and risk. tdd#: 1-800-345-2550 i also have access to independent firms d#: 1-800-345-2550 like ned davis research and economist intelligence unit. tdd#: 1-800-345-2550 and with my schwab global account, tdd#: 1-800-345-2550 i can trade directly online in top markets tdd#: 1-800-345-2550 in their local currencies-- when the markets are open. tdd#: 1-800-345-2550 plus, their global specialists are on call around the clock. tdd#: 1-800-345-2550 there's a world of winners out there. tdd#: 1-800-345-2550 and now i ve a better shoat finding them. tdd#: 1-800-345-2550 now get our best global offer! tdd#: 1-800-345-2550 trade commission-free online through september 2013 tdd#1-800-345-2550when yon a schwab global account. tdd#: 1-800-345-2550 call 1-800-482-1241.

♪ >> reporter: 20 minutes past

the hour. i am arthel neville with your fox business minute. in as a leader may have a right out of hong kong. he has not spoken to him but he has been in touch with the third party, and his private jet is ready to take him from hong kong to iceland. the icelandic government says it has not received an asylum request. in boston, an arrest warrant has reportedly been issued for new england patriots tight end aaron hernandez. the warrants is for obstruction of justice in connection with the murder of 27-year-old au and lloyd, found shot to death on monday less than 1 mile from hernandez is home. an attorney for hernandez had no comment. in singapore, air pollution has reached record levels. forest fires in indonesia and malaysia said that haze of smoke in smog. the point helicopters to try to extinguish the fires. we will get you back to ashley.

ashley: that is a lot of smoke. thank you so much. the problems for detroit continue as the emergency manager kevin or has ordered an investigation into the cities to pension funds systems for allegations of fraud. discovered what it calls many questionable investments made by the fund boards and many were without the guidance of their financial adviser. under michigan's emergency management law he can seize control of the pension fund if the funding levels fall below 80%. general fund in detroit currently 77% funded by the police and fire fund is 96% funded. adam: liftoff for gogo. the airplane wi-fi provider launched its ipo after pricing at the top of the range is $17 per share. right now trading down about five and a half%. right now $16.6. so will they take flight? ceo joins us from the nasdaq. has been a busy day. congratulations.

welcome. let me give you the easy questions. i imagine you are excited, about to raise roughly $187 million. what do you intend to do with that? is a very citing date. we intend to use that cash to help our global expansion. not only at we are well-capitalized, but simply the credibility of being listed will help us with the leading airlines around the globe. adam: let me ask you about that expansion. i use the go-go and have flown on delta or american and united and understand that you actually have something like 80 percent of the domestic market. with last couple of years revenue around 500 million. you still are not profitable. when you control that large much of the market, how can you not be profitable? >> revenues for last year or about two under and 34 million. has grown considerably, and there has been a dramatic and permanent profitability. significant initial startup expenses in investment in this

business, but as we keep adding planes and passengers per plane we see the leverage and we see the improvement in profitability adam: but you will be losing market share because we have competitors now coming into play. southwest uses a competitor, and the fact that even internationally you do not control that larger the market. so revenue might be growing, but you will be losing market share. i would be concerned about that if i was buying into a. >> we are not concerned. we have four out of five commercial planes to north america with broadband service. we have nearly nine out of ten of the business aviation market. broadband. and it we think that the leading market share gives us a scale and experience to have great credibility with airlines and aircraft operators around the globe. we think we will do very well attracting additional airline partners. adam: can you give me a target date? something you predict will be profitable? >> we are not prepared to make that prediction.

we are very positive about the continue trend in profitability. we have made a little investment, and over the last two years we support the global expansion, putting money into satellite technology. but some money into building a global sales. we will very quickly leverage those investments for good profitability. ashley: i imagine -- we keep talking about the use a number of aircraft expected of a the next 20 years. over 30,000. boeing was saying there will be in need, and i imagine this type of technology will be on all of it. what keeps delta or american or united from saying we will get you out and just do it ourselves? >> well, the practical issue of we signed a 10-year exclusive agreement. more importantly, this is not the airlines business. is a complex undertaking to provide the internet. go go it is uniquely positioned to do that. we have a full end to end

solution and more and more the airlines are saying that this is still missing critical that we needed to work every day day and a half, we need you tell us. adam: another one thing coming down the pike for you guys is online or video streaming in the air. you cannot do that right now, but that will be the next phase, and i like ford to it when i'm on my next flight. you pleased with how the ipo is doing right now? you are still down about 6%. >> says. about the capital markets. it is running in flight internet company. excited about getting that streaming on the line. capital markets will take care of themselves. airline passengers and partners. adam: all right. i appreciate the service that you provided when i have been flying, and we wish you and your company and investors of the best. have a good day. >> thank you very much. enjoyed being here. ashley: a big story. st. louis fed president saying mr. bernanke's bond announcement was poorly timed.

former senior economist said mccarthy will be joining s on this dissenting opinion. adam: mortgage rates currently hover around 4 percent, but that could all change given you know who. we will take a look at what happens if rates rise too quickly. ashley: speaking of up and down, we want to take a look at the dow. a lot more green on that screen then read, and that is a good thing. ♪ ♪

♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mcedes-benz you've been burning for

the smer event, going on now at your authorized mercedes-b-benz dealer. hurry, before this opportuty cools off. how d is the oldest person you've known? we gave people a sticker and had them show us. s have known someone who's lived well into their 90s. and that's a great thing. but en 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. ♪ [ slap! ] [ slap! slap! slap! slap! ] ow! ow! [ male announcer ] your favorite foods fhting you? fight back fast with tums. calcium-rich tums starts working so fast you'll forget you had heartburn. ♪ tum tum tum tum tums you argonna need a wingman. and my cash back kes the party going. but my airline mes take it worldwide.

[ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. adam: 1:30, time to head back to the new york stock exchange. nicole petallides watching the dow stay in positive territory, nicole. >> back and forth action. i asked ben willis. are you exhausted? >> no, this kind of action gives

us energy. i don't know about that, right in check it out. the back and forth action. >> we were up 100 points and we were sold off and in the red. this comes after the last two trading days down over 500 points. we're seeing the back and forth action. we're seeing so many groups, six of ten sectors we followed are doing well here. look at citigroup. down 2.25%. morgan stanley actually got the regulatory approval to the buy the final 35% of smith barney from citigroup. so both names are actually to the downside on this news. but financials are, you know, mixed for the most part. banking index i think is up. those two names are lower. back to you. adam: thank you, nicole. ashley: thanks in part to the fed and its actions, our next guest says look, we got the clarity we need from the central bank but with this morning's comments from fed president

bullard where do we go from here? joining us ward mccart think, chief financial economist at jeffries and former senior economist for the federal reserve bank of richmond. very well-qualified to comment on this. ward, i guess mr. bullard's comments basically said this was ill-timed. the clarity we got from ben bernanke. he fears essentially that up nation is too low and it is being ignored. >> well i agree with president bullard, that the fed sent a very mixed message as far as how inflation fits into the dual mandate. keep in mind in september of 2007 seen, when the fed eased with operation twist, inflation was well above their target 3.9% on the cpi. 2.9% on the pce deflator. now here we have a situation where it is inflation is well below the fed's targets and they're announcing or giving us an early heads-up on when they expect to take the foot off the accelerator as the chairman put it. so, it is a confusing message

that the fed send in regard to how inflation fits into the monetary policy decision process. adam: but, ward, shouldn't the trader or at least the computers programmed by the high frequency traders no better? when we have inflation not where the fed wants it, unemployment not near with you they intended to go, and they advised the outlook for gdp in 2013 down, seems to me no one is pulling off that accelerator anytime soon? >> i agree with you, i don't think the fed will make any changes in the size of its asset purchases until at least q4. that's only in the economy meets their expectations. i think -- adam: that's a big if. >> it is a big if, yes, exactly but i do think we're seeing the early signs that the economy will perform significantly better in the second half of the year than it has to date in the first half of the year but i think that, when you look at the fed, you know, in my scenario,

they're really only halfway through this purchase program. by the end of jean they will have purchased 670 billion in securities. and they will have purchased about another 660 billion over the next year. so, i think the market reaction has been exacerbated by a couple of things. one of them being the proximity to quarter end which forces people to make position adjustments they may not want to otherwise and also just based on the ferocity of the price action in the bond market i think that a lot of leveraged positions had to be reversed as well. ashley: ward, what about deflation? no one is really talking about it. they were for a while but if you look at some of the, get into the weed a bit on consumption level with regard to price it is pretty broad based we have not seen prices rise at all and if anything there is this concern we could be the next japan. we were talking about that more last year but has that fear gone away? >> no, ashley, i think in recent

months that fear, there is reason for that fear to become somewhat more intense because when you look at the inflation data, where we are seeing increases is really in the price of services. the price of commodities in this consumer price index for example, has declined two months in a row on a year-over-year basis. and of course the commodity markets have resumed a downward trajectory recently. so i think that we could see a further deceleration of inflation over the months immediately ahead. so i don't think that, you know, we're necessarily in a deflation picture right now but it is not something that we should take lightly. adam: so let's keep it simple. did the fed or at least mr. bernanke take something akin to put match, trying to put it out by throwing it into a tank of gasoline? have they tried to warn about the end of potential purchase of securities, drive up mortgage

rates and killing housing market and put us back where we started all over again? >> if rates keep rising the way they have over three weeks or so then that probably will cause the economy and specifically the housing market to slow. if that happens, then rates are going to fall again. so i think that he was trying to clarify a situation that got really murky because of, kind of an offhand comment in his testimony at the jec on may 22nd and i also think that there was some people who thought he was going to try to put the genie back in the bottle. the genie that was let out on may 22nd and of course he can't do that. so he was very straightforward. i think what did what he needed to do but a lot of people in the market weren't ready for bad news. kind of like when you have to take your medicine. ashley: boy, we did yesterday for sure. ward, thank you very much for joining us. >> thank you. adam: we were talking about mortgage rates, with mortgage rates on the rise after touching

record lows. they are expected to continue to climb some homebuyers are jumping into the market. fox's david lee miller joins us with more on what you can expect. david? >> adam, if you're planning buying a home soon and you haven't locked in a rate, what are you waiting for? industry analysts say home prices nationally are up about 10% and mortgage rates are only expected to continue to increase. according to fred free, these are the latest figures, the average 30-year fixed mortgage is 3.93% compared with a low of 3.31 last november. fears that will continue to increase causing potential buyers sitting on the sidelines to now jump into the market. >> business has been very, very strong and one of the main reasons for that is the fact that people want to take advantage of what we still perceive as low interest rates compared to what they have been in the last ten years or six years. so the still relatively low.

>> many economists believe that one year from today mortgage rates are going to hover around 5%. historically speaking that is a still a pretty good rate. how high will they go? that is anyone's guess. if they spike to 7% or higher that is when the housing market could be in for some real trouble. according to freddie mac buyers with medium would be priced out of already high cost markets from san francisco to the northeast like boston. other areas that are unaffordable with interest rate of 7% include seattle and miami. the prospect after 7% interest rate that would chill home sales is really very unlikely. it won't happen they say anytime soon. listen. >> i don't see that as something that is likely. you would have to see something happening much bigger in the overall economy. say inflation spikes higher or interest rates for other reasons climb higher. i don't think that is like i.

>> interest rates aside, the experts say the housing market is on track for a recovery. during the recession new home construction dropped by about half. so now thanks to supply and demand, if the general economy doesn't suffer any serious setbacks, the housing recovery is likely to continue. adam? adam: david lee miller. thank you very much. ashley: all right. location, location, location of course. travelocity's senior editor joins us with the summer vacation hot spots and tips on how to get a great deal. adam: take a look at that. a history lesson for all of us. the first newspaper to print the declaration of independence is up for sale. we'll tell you how much this piece of history will set you back but right now take a look at ten and 30-year treasurys and the yield on the 10-year just down a bit from where it was. it was over 2 1/2% earlier this morning.

[ indistinct shouting ] ♪ [ indistinct shouting ] [ ma announcer ] time a sales data. spt-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade ♪

>> i'm jo ling kent with your fox business brief. russia state rolled oil firm, rosneft sign ad 25 year supply deal with china worth $270 billion. it will help boost russia's ties with world's largest energy

consumer. bringing the total to 56. the channel, which only broadcasts content related to the british soccer league is expanding the reach to norway and denmark. this comes ahead of ceo's anticipated departure at the end of the month. starbucks is perking up prices on some beverages here in the u.s. on tuesday by an average 1%. the spokesman for the coffee chain giant says rent, labor, non-commodities costs are the reasons behind the increase that is the late from the fox business network, giving you the power to prosper.

adam: it is the first day of summer. you know what that means? long lines at disney world, summer vacation. if you had not got around to pocking a dream trip and want to avoided the lines, don't post-traumatic stress disorder, there are great deals to have. we have the senior editor of

travelzoo joins me with some, you know, options for everybody. good to have you here, gabe. thanks for joining us. >> great to be with you, adam. >> let me jump into some spots people can go to. texas hill country. the resort, am i saying this right? >> yeah. the resort at the springs in texas hill country. san antonio, austin, much of texas, much of the southern tier states a lot of promotion for travel. we're seeing a lot of bargain for last minute travel. this is the resort country star george strait bought back in 2011. it is a beautiful four-star sprawling resort. to stay there through august, $109 in night for breakfast for two in the morning. you're sure rounded by texas hill country and alamo is about 20 minutes away. adam: that is a deal. captiva island, florida. i can tell you first-hand captiva is gorgeous. >> sanibel, fort myers, if you're into sea shelling this is place for you.

equipment essential gulf coast caribbean inspired get away to the shores of florida. all of florida goes on sale. this is twenn waters resort on captiva island a restaurant known as the best place to eat. 135 a night for travel all summer long. breakfast included. you have fort lauderdale and miami. they compete for travel dollars as well. summertime is a great time to find deals. adam: before i ask you how to get deals, a hankering for peace and rice, atlantis island resort in the bahamas. i never thought of them as a bargain. >> caribbean goes on sale summer months. you find the best sales when hurricanes are active. travel insurance is needed. that is seven to 10% of your vacation. keep that in mind. atlantis five different towers. they have the water park with

three beaches and 11 pools. they have dolphin cay. stay in one of the beach towers for 239 through august. that comes with a $150 credit on dining and $250 air fare credit if you stay four nights or longer. by the time to fall, nights at atlantis fall to 129. they get better early fairly. adam: pointers on summer travel. i have been shocked of fares between new york and chicago, almost 500 bucks. how can you save and pointers for us? >> certainly fly off-season. business travel will slow down in the summer months. some of these fares between like chicago and new york, some of these financial districts will begin to soften i think but you have to be wise when you buy and when you fly. flying on tuesday or wednesday versus sunday or monday could save you 30 or 50% on your air fare. certainly look at destinations where it is low season. caribbean and mexico and again financial districts like new york, chicago, san francisco, over holiday periods and holiday

weekends like the fourth and labor day should offer nice bar against as well. adam: any surprises when we get the airplane tickets, extra fees, oxygen, are they charging for that now? >> i flew into santa barbara last night. i breathe for free. the fact of the matter if you have not flown since last summer two fees to keep in mind new to 2013. overhead bin space. allegiant, spirit, frontier will charge you to put your bag in the overhead bin space. still free if it fits in the seat in front of you. fee to change your ticket gone up from 150 to 200 on all major carriers. 24 hour window. that's it. keep that in mind. per ticket, each way with one way flight. budget accordingly. know where you're going before you buy or be aware of 24 hour window. adam: spirit airlines has a discount if you're willing to sit on the wing. there you go. thank you very much. have a great summer travel

season, sir. ashley: we love, but hey, you never know. as we do every 15 minutes let's check these markets. jonathan corpina on the floor of the new york stock exchange. jonathan, okay, a bit of a lame duck bounce if you like today but at least we stopped the bleeding. is this correction we've been waiting for and is there more to come? >> i don't think this is the correction we've been waiting for. actually i've not been waiting for a correction. this is small pullback in our market. if you look how the market traded over the last four months this is healthy for the steps that we've seen and where we want to go. so at this point right now, i think investors are looking for an opportunity to take profits off the table. it is good to see now that we've stopped the bleeding, we'll have to see this carry over to next week. that is when we get some real solid information or some validity as to whether this is going to stop at this point. ashley: jonathan, you don't think these stocks were oversold necessarily? >> well, in a very short period

of time we were down 3 1/2% in two days. seems at this point investors taken a step back. they're taking a deep breath. they're realizing it is not mass panic and fear. and they're going to, fear they will take the time smoothing themselves back into this market. ashley: very good. jonathan, thanks for joining us. we appreciate it. >> thank you. ashley: the dow is hanging on to very slim gains up 20 points. adam: here is local news the declaration of independence up for sale just like congress only this time it is legitimate. the first newspaper printing of the famous american document is on the auction block and we have it in studio right her. -- here. i want to make things more secure.

[ whirring ] [ dog barks ] i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where dyou want to take your business? i need help selling art. [ male announcer ] from broaand to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show yo how at&t solutions an help you do what you do... even better. ♪

ashley: if you ever think about throwing away that old newspaper you may want to think again

because it may be worth something some day. you may have to hang on it for a while. the rare first newspaper printing of the declaration of independence is up for auction and here to tell us more about it is american historic documents expert seth call len. this is really quite remarkable. you're auctioning a declaration of independence but this is newspaper printing. of that declaration. why is it so special? >> well these newspaper printings, these july 1776 issues are how the news got out. hard to imagine without tv or radio and internet it was a document like this, not the signed, not the manuscript that everything thinks of as the original. this is really what told people we were independent. >> fascinating. how many of these exist? >> there are 19 known copies of this pennsylvania evening post that first newspaper printing of the declaration. ashley: how did you come across it? in your attic? >> well i'm a specialist in this kind of thing.

actually we bought it at auction in 1993 and sold it. in december i sold something similar and went back to the owner and said, now is good time to put this on the market. >> okay. so how much would something like this, what are you hoping to get from this? >> estimate is 500 to $750,000. i do think it will bring in the higher end of the estimate. ashley: you think it is a good investment? >> well, they're not making anymore. >> [laughter] congress wanted the declaration to be unanimous, we know that why did they wait? this is dated july the 6th. so it is two days after what we consider independence day, july fourth. give me a little background. here it says in congress, ang, declaration by the representatives. so on july 4th, it was this, by the representatives. new york didn't vote yes of the so they waited to write the manuscript, the engrossed

document people think of as the original. that was created in august. ashley: so the actual declaration of independence we think of that is housed in washington, d.c. is a later document? >> yes. it is more, very important but it is more like a souvenir whereas something like this was created to make the news. ashley: i'm fascinated that this is worth a lot of money. it is extremely rare but here it is out in the open-air. i would be imagine encased in glass and some or the of somebody sort of special environment, but no. >> normally we don't keep it out. it is an acid free paper. they didn't have wood pulp paper. the quality is it will last a thousand years more than newspaper printed today,. have you read the whole thing? >> yeah. ashley: very, very cool. what is the auction? >> it is next tuesday the 25th at 1:00 p.m. ashley: we wish you the very best of luck for that. fascinating piece of history. probably one of the coolest things we've had in the studio. thank you very much for being here. >> thanks for having me.

ashley: appreciate it. stocks are hoping to bounce back from the worst day of the year. so far just turning negative on the dow. but quadruple-witching, one of those days that could spark more wildness in last couple hours of trading. coming up next, how to keep your money safe in this volatile market. adam and i will be back. he. keep it here on fox business. t . but with advr, i'm breathing better. so now ian help make this a great block party. ♪ [ male announce ] advair clinically proven to help significantly improve lung function. unlike st copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair w't replace fast-acting inhalers for sudden symptoms and shld not bused more than twice a day. people with copd taking advair may have a higher chance of pneumonia.

advair may incrse your risk of osteoporosis some eye prlems. tell your doctor if you have a heart condition or hih blood pressure before taking advair. ask your doctor if including advair could help improve your lung function. [ male announcer ] advair diskus fluticasone propionate and salmeterol inhalation powder. get your first prescription free and save on refills at advaircopd.com.

adam: 2:00, welcome back. i'm adam shapiro. ashley: i'm ashley webster. stocks are headed for first losing week in more than a year. dow is turning down eight or nine points. s&p and nasdaq also on track to shed more than 2% each. we are looking for the best money moves to make right now coming up. adam: it is back to court this hour for enron's former ceo jeff skilling. he wants a decade chopped off his 24-year prison term and he

is paying millions to the victims of enron to help make that happen. fair deal or injustice? we have a closer look just ahead. ashley: and a new twist in the international squabble over robert kraft's super bowl ring. vladmir putin wants to settle the score with patriots owner. the question is, is it an offer he can't refuse? daings, or nyet. first the top of the hour. adam: we'll check with nicole petallides on the floor of the new york stock exchange. i made a comparison to a teenage girl trying to determine her prom date, back and forth back and forth, positive, negative. where are we now? >> i don't know who i'm going to the prom with right now. that is what we're watching the volatility is here. buying the does. selling moves higher. truth. matter it has been a tough week on wall street. you had two down days, big down days with a 200 point loss on wednesday. of. over three hundred point loss yesterday. we're back and forth action. when you talk to traders, look

at someone week charts, we're challenging some of those crucial numbers to see whether or not we have the worst week in 52 weeks. we're obviously having a losing month. that is something worth talking about. you see the one-week charts. as i talk to mark newton, he says people will be buying on the dips because they feel like this is an oversold market. you talk to john corpina, he says risk off. nobody is too interested in things at the moment. ben willis says he is not exhausted. this is the kind of thing they thrive on to have this kind of action. if you're buying on the dips it should be for the short term some of the traders say because it is hard to gauge where the market will go in july and august. but there is certainly seems to be some sort of a con ses this was a pull back people were looking for to a certain extent. you have a lot of wildcards out there pertaining to the fed and europe and china. very heavy volume which is worth noting as well. back to you. adam: nicole petallides, thank

you. ashley: gold rising today after this week's massive selloff. oil though still moving lower. our own jeff flock is in the pits of the cme with latest on the roller coaster week for commodity, jeff. >> indeed the metals are coming back but energy is definitely not. i want to show you the euro-dollar futures pits here. i don't have the quotes up. this was probably the most active pit at the exchange today. i will tell you why in a moment. one. reasons, margin requirements increased because of volatility. where else were margin requirements increased? gold. let's look at the board and run through them all. cme increasing the margin requirements to trade in gold, up about a percent, 1.7 i think% last i checked. gold today, but energies did not come back. oil down. let's see where are we right now? i'm looking at oil, looking at 93.78 on a chart here.

that is about a $1.30 or so down. nat-gas is down a percent 1/2 today. gasoline, new york gasoline also down about another percent. corn was flat today but the euro dollars were crushed. now what is euro dollars? people sometimes think it is something to do with currency. euro-dollar futures have to do with bets on the libor. interest rates were crushed today. indicating a belief in europe interest rates wwll be going up but the june 20 contract is most actively traded. will not be for a while. we're starting to see activity in this, sort of like the fed fund futures in the u.s. that is what this contract is overseas. very active contract today. interest rate rise some day is coming. ashley: an active week, no doubt. jeff flock at the cme. thanks so much, jeff. adam: the markets couldn't hold on to some eaalier gains 15 minutes ago. they're little changed right now.

jeremy hill is a managing partner at tf market advisors. he is joining with more on where you should look to put your money especially in a volatile environment. i imagine a lot of money jeremy is pull out from cash and waiting. where do you go? one thing you might recommend is buying perhaps community banks? talking community banks? >> that's right, adam because we have a view as interest rates go up, in fact community banks are going to be benefiting from this and if you look at their net interest margins, which is basically difference where they lend out and where they can be profitable, it is going to increase in the area of increasing rates. that is what we're seeing today. so if you were to look at what's happened just in the last couple days, the action for example, kre, i believe is the symbol for the community bank etf. adam: okay. >> it has actually done quite okay as compared to the rest of the market. we think that is an area you want to investigate going forward. maybe not for a short-term trade

but for more of a kind of macro trade where you think about something that you can hang on to for a little longer. adam: but my fear of perhaps buying the stock of a community bank, with the 10-year treasury yield, last it was just below 2.5% but this morning it was over that. it would seem to me that i would be a little leery because i would think people will pull back on their desire to borrow money. am i wrong or does this actually mean better news for the banks? >> well as a general statement, for sure when rates rise we think it is actually bad for equities. we think it is bad for the economy. so, you do have to kind of parse between what's good and bad. again, when you focus on theiliu just look at how banks have, again thhir net interest margins have come down over the last couple of quarters, when rates rise, the idea here is that those march against will increase. in fact if you're a jpmorgan or you're a universal bank, your

net interest margin compared to a zion's bank or a bank really more in tuned to lending to small community businesses, it's a far different scenario. so we think that's an area that people should be paying attention to. adam: another area you say people, especially investors looking for yield want to pay attention to is the spread is actually decreasing between the german bund and italian and spanish bond. while some people may see this as a good sign it's not. why not? what's going on? >> that is really kind of an interesting story because investors in my opinion are extremely my open pick, okay? so they -- myopic. they look at things sometimes in relation to other indices but they don't understand what the abstract effect is. look, in spanish and italian sovereign debt just in the last three to six weeks we've seen a tremendous uptick in yields.

so basically since the beginning of may, both of those bond, again, spanish and italian, have increased in yield terms about 20% and nobody's paying attention to that right now and we think that's actually a pretty big red flag. as much as we've been focusing on the u.s. and what ben bernanke's telling us, listen, europe is not quite back together yet and so we think people really need to take away that there is a risk still there. adam: risk still there but i heard an analyst earlier this morning on fox business say this will be the kind of thing that will force the hand of the ecb to cut rates in the future. is that an accurate prediction? >> ecb may cut rates in the future but doesn't seem they're inclined to do so. almost the kind of conspiracy idea here the fact that ben bernanke is going to cause more focus on the european situation than he actually intended. adam: so jeremy, real quick, want to wrap up with you. take a look at the monitor. how about putting your money in

a 1984 power 944. this is your dream car. good investment or not? >> you have the wrong car, it is the 928. adam: i thought it was a 944. >> 944, red, perfect interior i'm good with that. ing real assets have a big future. adam: jeremy, good to have you here. pay attention if you're looking to europe and the bund and italian and spanish bonds. thank you. >> thank you. ashley: not quite the dream car. adam: got it wrong. ashley: no cigar. if you thought the robo-signing scandal was over think again. liz macdonald on why another wave of lawsuits could come down the pipe. that is next. adam: jeff skilling is hoping to have his prison sentence cut several years the we'll dig deep into the case to see whether he deserves it. that is coming up. time to check oil and how it is trading right now.

adam: what's old is new again. robo-signing scandals. here is chapter two of the robo-signing scandal. investors in mortgage bond are getting hit as well and losses could be huge. with more on this is liz mcdonald's with emac's bottom line. looks like investors are holding the bag. >> chapter two is right. a number of studies have pointed out that poor bank record keeping in foreclosures could be affecting mortgage bonds, the bond built on the back of mortgages on foreclosed properties. we're seeing studies coming out saying hundreds of instances where they were wrongfully foreclosed on or delays in foreclosures or fees like legal fees or inspection fees charged to investors when the property is already foreclosed on and loan is already shut down. this is a twofold problem. number one, there were billions of dollars in mortgage-backed bond settlements, lawsuits, that, settlements of lawsuits out there. if these problems are coming up

now after fact, after the settlements, could the cases be reopened? for example, bank of america had a whopping settlement, eight 1/2 billion with 22 investors. aig, said, listen that 8.5 billion is low ball figure. a lot more money we could face about all the losses on bonds. adam: what about the aaa rated stuff the federal reserve has been buying? >> that is exactly right. we're looking at $1.2 trillion in line item on the fed balance sheet, actually triple or quadruple sum of last year of the purchases of the we reached out to the federal reserve. the federal reserve hopefully will get back to us. we don't know if they will experience losing from problem mattic record-keeping of foreclosures which those loans or supporting those bond that the fed had bought. we don't know yet. if we don't know if the fed will get hit with any losses because of the problem this is issue percolating along since the financial collapse. ashley: just seems to go on and on, when we think we got through

all of it clearly we haven't. maybe this is the next leg as we say, painfully long, drawn out situation. >> that's right, ashley. the other thing these bonds are certain duration. maybe it will get washed out in the process before the bond have to pay up. but who knows. again, i mean, the subprime bond are notoriously complicated. they're sliced and diced and so many different loans supporting bonds. adam: that is bottom line. emac thank you. >> sure. ashley: coming up quarter past the hour. nicole petallides on the floor of the new york stock exchange. nicole, we're essentially on the flat line on the dow. be interesting to see how this, you know, today plays out especially in this last two hour period. >> it will be really crucial, this last two hours. as i noted there is rebalancing of s&p and indices. that is something on wall street a very big deal. volume is already over 900 million shares. today will be a heavy volume day coupled with the fact we sold

off 500 points the last two days so a lot is going on here. look at the same time, oracle, obviously a name weighing on the s&p 500. the biggest laggard there today. but the deal with oracle is that they came out with numbers that were weak. revenue was light. that's not good news. their computer business of late has been weak. so that is not good news. latest quarter is really weighed on the shares. you could see them down nearly three bucks. $30.31 a share. that really shows you the drop-off, a significant drop-off we're experiencing here, over 52 weeks, over the last fifth two weeks. it is a winner. just 52 weeks up 9% to be specific. back to you. ashley: nicole, thank you. still a big drag on the nasdaq. nicole, we'll be back at the bottom of the hour. thank you. adam: the war between hank greenberg and eric schneiderman is getting hot.

senior correspondent charlie gasparino has exclusive details next. ashley: as we head for the break look how the u.s. dollar is moving right now. we knew it was very much stronger yesterday. same story today. a lot of flight to safety. most of the currencies we can see are down against the dollar except for the mexican peso. we'll be right back.

>> at nine teen minutes past the hour i'm arthel neville with your fox news minute. a bipartisan group of senators introduced legislation to block the u.s. from increased involvement in syrian conflict. president obama announced plans last month to arm rebels battling the syrian government in the two-year civil war. nsa leaker edward snowden may have a ride out of hong kong. ice lannic businessman has not spoken to snowden he has been in touch with a third party. his private jet is ready to take him from hong kong to iceland. in boston an arrest warrant has reportedly been issued for new england patriots tight end aaron hernandez. the warrant is for obstruction of justice in the murder of 27-year-old odin lloyd. he was found shot to death on monday less than a mile from

hernandez's home. an attorney for hernandez had no comment. those are the headlines. i'm arthel neville. get you back to ashley. ashley: arthel, thank you very much as always. the battle between hank greenberg and new york attorney general eric schneiderman, well it is heating up. greenberg is asking members of congress to investigate schneiderman's activities. fox business senior correspondent charlie gasparino all over this with exclusive details. >> before we get into the story, we have to point out on here, three guys on the set. >> 1970. >> ron burgundy. >> ron burgundy. stay classy, new york. >> he is asking congress to do this, approaching the house financial services committee. basically to investigate whether schneiderman politically motivated this is a eight-year-old case as we pointed out. most of the charges have been dropped. two haven't been dropped. greenberg believes there is enough fire to get congress to act on this guy. if you look at his targets it is very interesting.

mf global. he never addressed. big scandal. jamie dimon, hank greenberg. draw your own conclusions. i can't tell you that the house financial services committee will go for this thing. this is politically interesting territory. this is a sitting new york attorney general. he was duly elected. but there is some issues here where the new york attorney general does overstep his bounds, legal bounds, using what you brought up in the break, martin act. ashley: yeah. >> new york state has specific has incredible powers. put someone in jail, almost execute them for a park ticket. ashley: they have no right to counsel. no self-incrimination. >> bar of intent is very low that is what he is using. who developed this tool? eliot spitzer as we all know used it to become governor. that was the template. i will say the difference between snyder and spitzer is this. wall street hated spitzer.

brought are original case against greenberg about accounting improprieties the all the charges but two have been thrown out. the question about schneiderman, and this is what people are asking this, guy, where is the beef on loft these cases? he brought this case against jpmorgan. guess what? jpmorgan, it was for since that were done when, in the bear stearns subsidiary that jpmorgan was forced, essentially to buy during the financial crisis. there is case against greenberg which i can tell you it is bipartisan. mario cuomo, rudy giuliani, governor pataki, people saying this case is waste of taxpayer money. we should point out we have statements from schneiderman and greenberg and this is where it is interesting. they are like going at it. if we had sound effect it is would be like to get cats screeching. do we have statements from schneiderman and greenberg? they are interesting. they go at each other. here with go. attorney general schneiderman is new york state law to hold people accountable for their actions. take as shot at greenberg.

no matter how many good friend in congress it will not stop him. this is interesting from greenberg. this continue ages of this, the admittedly symbolic vendetta he calls it is a waste of taxpayer resources. they're going at it. it will be played out in congress. greenberg not personally going to congress. i got e-mail. he hires people to do that. ashley: how nice. >> there we go. see, come on, hank. landing the punch. adam: is schneiderman up to something greater than a conviction for past wrong? >> he looks good. he does work out. listen, yes, i mean it is no joke, no secret that office is political stepping stone. i think what kind of bothers people and i think particularly the greenberg cases just, so useless at this point. hank greenberg was thrown out essentially of aig. ashley: federal case to proceed anyway? >> that is legally dubious too. no federal case against him. ashley: yeah. >> he was thrown out in 2005.

spitzer charged him with various violations of martin act securities for it as new york attorney general. most charges got thrown out except two. they are pretty weak tea charges. why are you going after the guy? he is 88 years old. adam: real quick. we're running out of time. sac, the deadline is approaching. when is this deadline? you have a book -- >> what is great about the deadline, approaching a week after, this is the statute of limitation, when it ends in mid-july. it's a week after my book comes out. adam: insider trade. >> my book comes out, called, "circle of friend." insider trading case pursuit of steve cohen. comes out july 1. publicity starts july 8th. sometime after that. adam: mid-july is really important. >> a story either way. if they don't charge him that's a huge story. we see massive redemptions out of sac. investors believe he will be charged. if they do charge him, steve cohen is one of the great traders of all time. one of the most successful hedge

fund. adam: you reported he is waxing poetic, what will be, will be. >> singing doris day. told bo dietl a friend of his, fox news contributor, that, if they indict me whatever is to be is to be. adam: try a little lindsey lohan >> not bad for three guys yuking. adam: flyers have faith. one particularly annoying part of air travel could soon go away. willis willis is on the story next. ashley: god i hope so -- gerri willis. ashley: the dow is slightly on the up side. look at some winners on the s&p as we head to break.

this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fithsand dollars. congratulaons you are our one millionth cuomer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or theillionth. if your bank doesn't think you're special anymore, you need aally. alank. your money needs an ally.

♪ ashley: 90 minutes until the close. want to take a look at the dow 30. procter and gamble, coca-cola, johnson and johnson all in the green. a couple of losers. intel, although there are upper year today. that's a pretty good number. starting the year there were down around $20 per share. and people, boeing, all down, no gray area. no matter which way you spell it. you're right. lots of color and labor. nicole petallides at the new york stock exchange. anyway you like it, we are hanging. dow up 23. >> reporter: and sometimes the markets are moving on a particular headline or maybe there are looking in a particular technical level. sometimes theepsychology, and sometimes is just a little back and forth. buy and sell and buy and sell,

and that is really the action that we have been seeing as we have around the line going into the closing bell. apparently higher or lower. five other points the last couple of days. comex right now down to one-half percentage. certainly it -- the results are pretty good. they actually sold more used cars at higher prices and higher it is pulling back. we're also watching very closely. the parents of all of garden. we do not have it here. a change something, but when you look at dri, you think of olive garden, red lobster, and the economy is what they're really talking about saying that they had a tough time this quarter, and the outlook looks on shore. ashley: thank you very much. well, the turmoil has hit the bond market with yields on the benchmark ten year treasury hitting levels around the same sense back in august 2011. s&p shocked the world with its downgrade of u.s. debt.

it seems like ten years ago now. will the bond sell-off continued? as the fed prepares its exit from quantitative easing. let's bring in scott graham, head of u.s. government bond trading a plo capital markets. -cott, thank you for joining us. a lot of year-based selling yesterday. that, of course, has a tendency to be done itself. was it overdone? >> well, i think that the fed statement said mcconnell lot of people off guard. i think bernanke has been clear that they intend that did well into an economic recovery. the dated not necessarily justify talking about tapering, but he also made it very clear in yesterday's comments that the risks and rewards of continue quantitative easing may have run their course. ashley: a pretty decent sell-off, but could you argue there is a good time to put money into the bond market? >> i would argue that certainly my views are that the overshoot to the downside, as we push is

certainly, at least for the short-term or intermediate-term, making it a decent buying opportunity. the sell-off receive in the marketplace, certainly a lot of people exiting on comments that they did not expect, but we are also taking into account the fact that the highhr interest rates will have a dampening effect on the economy and perhaps create an opportunity for the market to have one further rally. ashley: we talk about the benchmark ten year bonds, what is the range? two to two and a half%? is that reasonable? >> i would think that is a reasonable estimate. if we're going to overshoot it would probably be to slightly higher rates as investment committees get together and decide whether quantitative tapering is going to have a meaningful impact..3 again, the economy continues to be somewhat fresh out. increases and the sequester and the economy has proven to be

quite resilient. we still have potential from europe and other countries to let the end of the day i think that two and a half to 02 percent range makes a lot of sense for the balance of the year. ashley: do you think we have seen the fed bought a buying program as, perhaps, more important than it really is to the bond market? 45 billion in treasurys every month. they're not exactly corner in the market. >> well, i mean, as a percentage of net assets and net issuance in the back into the marketplace it actually is quite substantial amount. what i would argue is we get to the 30-year interest rates back toward three and a half and strip out in that sector at three and three-quarters and it makes for a very attractive alternative. rates up to 137, 138 level. also very interesting and attractive alternative to right now what is going on with the equity market. ashley: what other areas of fixed-income the like? >> well, i think in this last kind of sell-off, you're seeing a lot of people hit the exit.

fixed income has had a bull run for quite some time. spreads have compressed quite a ways. i was way for some of the spread to continue to widen slightly year, but i think that mortgage-backed securities ultimately are going to look like a very attractive alternative. i also think that where we are on the rates market, the curve will look like a very reasonable place to invest money. ashley: if you have not fled to the exit, so to speak, and are hunkering down, is that the best thing to do for now until the dust settles in the bond market? >> if you are not sure that the sell-off is over, i think that the front end -- and again, there are two things we need to distinguish. bernanke was talking really about taking his foot off of the gas pedal, i.e. not hitting the brakes. he has also reiterated that short-term rates will remain low for a substantial amount of time we have seen the front-end in conjunction with the back and back up quite substantially, and the front end as a safe haven and kind of a flight to quality

offers a very attractive alternative. ashley: very good. great information. scott gram with bmi capital markets. thank you for joining us. >> thank you very much. adam: go inside making its trading debut on the nasdaq, and shares are down just about -- when we looking at right now? 7% to almost 7%. the company makes technology that allows people to connect to the web. meanwhile, the fa announcing it will delay its recision -- delayed its decision on whether you will be able to use other electronic gadgets during takeoff and landing by another two months until the end of september. so the studio door is closed. turn that off right now. you are in violation. >> i do not have to do that. the faa says that right now i can use a device someone with the exception of a cell phone. they are concerned about the cell phone. the day that they allow you to talk and yourself on through the entire ride. ashley: a bleeped de. >> forget it. i don't want to be there. back in 2011, alec baldwin got kicked off of that american

airlines flight because it would not put down his gavel game. i guess it was an ipad or a phone. that will soon be over. basically rules had been in place since the 1960's. now the idea is that you will be able to use those electronic devices from the time the cabin door closes until the time you hit 10,000 feet and of course, on up. ashley: they are not a threat. >> well, this is interesting -- and i did not know this. so these little devices emit to less than they used to. much more sophisticated. they interfere with less. of course now it is not 1960 any more. we have figured out how to deal with all of this, but the idea is it does not really interfere with anything. the pilot needs to notify the plane. why not use them? adam: i'm flying tonight. >> unclear. and clear. adam: the delta flight attendants. ashley: gets thrown off. >> we will be talking a little bit about this tonight.

it will also be talking about something very interesting, the national association of realtors. published comments saying that prices in the housing market have moved too high too fast. now, i have covered housing for a long time and i have never heard the economist for the national association of realtors said that prices are moving too high too fast. ashley: some believe the fed has this interest-rate moving higher because they're concerned about the bubble. >> that may be part of it. i think bernanke has backed himself into a corner and cannot afford to take away the punch bowl. adam: all right. real quick, you explained so much. with a certain carrier why can i not kids sell reception right here? midtown manhattan. >> at&t. adam: i will not say you it is. >> i have my own theories on that. adam: 6:00 and 9:00 eastern right here on fox business. ashley: breaking news. let's take a look at oil closing down for the third straight day losing a dollar and $0.45.

$93.609 per barrel. it was just a week ago we were talking about $100 per barrel. certainly on the way down. enron ceo is back in court trying tax cut his 24 year prison term will be talking with one white collar defense lawyer who says that the government is being too tough on this. adam: is time to check the ten and 30-year treasury. the yield on the tenure treasury , two and half percent. with opportunity, th ideas, with ambition. i'm thinking abouthina, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and single couries. findut why nine out of ten large professional investors choose ishares for their etfs. ishares 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. and you wouldn't have it any other way. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anime the momen's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved ttreat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delad backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease, or if you have any allergic reactions such as rash, hives, swelling of the li, tongue or throat, or difficultbreathingor sw, stop taking cialis and get medical help right away. ask your doctor about cialis for day use

and a 30-tablet free trial.

ashley: breaking news. the associated press reported that former all-star outfielder has been released from prison in california. sentenced in december to six and a half months in prison for hiding baseball gloves and other collectibles that were supposed to be part of its bankruptcy filing. again, free from prison. adam: all right. enron chief reese sentencing hearing is now under way. we want to take a look at where some of the other key players in that scandal, where they are today. for instance, cfo, out of prison. she never went. the couple forfeited $30 million. enron founder lost nothing. a judge tossed his conviction after the executive's death in

2006. and the auditing firm arthur andersen, more than 25,000 employees, they lost their jobs. joining us now is attorney michael bachmann, former prosecutor, who specializes in white-collar defense. thht happens a lot. prosecutors defend people will be charged with crimes, and in the case of mr. skilling, of the victims -- 28,000 employees at enron who saw their pensions by tough, lost their stock holdings , they are saying do not give this man a shorter sentence. he deserves our he is getting. the department of justice, they3 were ordered to change it. he does -- it does not seem bear -- chair. >> well, the appellate court ruled that the sentencing judges and a miscalculation. and that there were just too high. isn't it back. under the laws we presently have, victims must be considered . they're is a victim's aunt. the courts are required to hear

what the victims say. courts now that victims cannot control what happens in the courtroom because otherwise many defendants would lose their arms and legs. adam: and we would have mob justice, and nobody wants that. i think you said to one of our producers that the purpose here is a deterrent, not punishment. am i getting that right? it seems to me that punishment is perfectly acceptable in this kind of case. >> well, the answer is, punishment is a factor that is supposed to be considered, but we did not live in a society where punishment is the exclusive reason we sentence people. we sentence people to deter others, to deter that other individual, to rehabilitate people. many white-collar defendants, some of them are awful people, very bad people, career criminals, horrible individuals. you take them off the streets, would not lose a moment sleep. adam: and that is just congress. >> but many individuals are very nice people who have lived very good lives and that screwed up and sometimes very badly so. you have to wonder, does society

benefit by warehousing? adam: i am going to be a little aggressive. you just screwed up. the guy was at the helm of a fraud that cost thousands of people their life savings. a billion dollars when that company went bankrupt. he just screwed up. i think the guy deserves to be punished. >> she does deserve to be punished, but the question is how much. congress, when they passed these guidelines said that the law requires -- and the supreme court has said that a defendant should not be punished more than necessary to meet the guidelines they have to give the lowest sentence possible. twenty-four years is essentially killing that person off. taking them and saying, you deserve to die in jail for what you did. that, in my opinion, is too severe. adam: why is white-collar crime -- i'm going to use bernie madoff. what he did did not kill people physically, but it wiped out. al is that any difference? key white peeple of. hal is what he did less worried

-- realize life is absolutely the key. but it is pretty darn close. >> we have to make decisions. these guidelines are giving up the same sentences that we give to people commit those crimes. i think that that is just and proper. there are some white-collar %-i agree, of very seriousious. sentence is appropriate. madoff should have done a lifetime. and the differences, his crimes were going on for decades. a systematic method that showed psychopathic lack. adam: at the end of the day the hormuz the same. you had people like dow, and some of whom may never be able to recover because of the point that they were in their lives. >> i agree. the impact was the same, but the law also punishes intention. by kill somebody a car accident accidently the person i killed is as dead as if i shot them with a gun on purpose of my intention was different. his intentions or not the same as a madoff.

adam: his intentions were to defraud. fraud, conspiracy. >> the difference was, there was an intention to defraud that i believe derived later. enron was not started out as a scam from the beginning. madoff was a stamp from the very outset. adam: he would take issue with that. he is very angry right now. he insists. bottom line, this is happening right now in texas. do you think he is going to get a certain sentence of the maximum? >> i think he's going to get somewhere between the 14 and 17 and and a half. adam: which is still for a man of his age pretty much. >> you will be 63 when he gets out. adam: and we should point out, he will be forfeited $45 million. we appreciate your being here. thank you very much. >> my pleasure. ashley: a little after quarter to the hour. let's take a look and stocks. it back down to the new york stock exchange. nicole petallides, just over one hour to go. the dow is still up. >> reporter: that's right. you still have some up arrows,

and plenty of things. the drug index, the bank index to name a few. you see the s&p is up almost two tenths of 1%. the dow jones industrials is holding about one-quarter of 1%. detect every nasdaq is pulling back. the dollar is stronger, gold is gaining a little bit, though not the $39 mark. so we are watching commodities. you heard at get to talking about margins. also keeping an eye on the 1-week check to see how we are doing. for the most part, the dow is down nearly 2%. it is a weak month. and now we're going into the closing bell. an hour and ten minutes. adam: thank you. ashley: okay. monsters verses zombies. it is like that every day here at fox. [laughter] ashley: at the box office this weekend, brad pitt might be on the losing end of this battle. adam: and i'm the one with the inappropriate comment. take a look get some of today's winners. ♪ with the spark cash h cd from capital one...

boris earns unlimited rewards for his small business. can i get e smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earn2% cash back on every pchase every day. great businesses deserve 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 on every purchase every day. toldou i'd get half. what's in your walle

♪ ashley: a big weekend coming up for the box office. two films with 9-figure budgets premier. two very different movies. dennis kneale is all over again joins us now. adam: make a mistake and get to the wrong one. >> reporter: a monster class. $190 million. spend up to $100 million more on marketing. the zombie flick opens on 3500 screens in the u.s. this weekend. a good buzz already in australia, korea, and late-night pizza already taking in 9 million. but brad pitt will likely get a box office beating from these guys. one i'd mike was a housekeeper. the stars of monsters

university. it could take an 45 million this weekend, but forecasts are that it will do far better, $80 million or more. and mist and the limited -- angelina julie may enjoy that indignity of coming in third after man of steel. the superman reboot now in its second weekend. warner brothers now nearing a quarter of a billion dollars in ticket sales worldwide. that is an ego bruiser from brad pitt who also produced the movie, but in a summer oo sequels, it is a new be based upon a novel of the same name that sold over a million copies. a prequel. a pixar film that grossed over half a billion dollars. did it over a decade ago. surprising that disney could wait so long and still do so well. and it could set up to even rereleased monsters yet again. a whole new batch of kids would think it is a sequel. ashley: to very different movies, as you say. make sure you're going to the right one.

adam: all these different audiences. really well done. i cannot believe they waited this long to make it. yet another is on the film. all this talk that they will make his second and third installments. but to open only 45 million. $200 million. >> worse yet, they make a musical. adam: that will happen next. now the you said it. speaking of which. the latest on the super bowl ring saga. russian president says he does not even remember doing -- dealing with him or his super bowl ring, yet he is offering to make a new ring to replace the one that he is accused of stealing. he said, and this is the ," the enterprise that is here in russia, really good, noticeable thing. it is clear that it is expensive, made a good metal.

a rock so that this tool is passed on from generation to generation in the team who is interest he represents. alleging that the russian president tried on his son to $5,000 ring and then pocketed it . ashley: the old russian shell game. the victim of it. adam: a lot of victims. coming up on the countdown to the closing bell, everyone wants to be king when it comes to video. the latest as it tries to take on twitter. we sat down with the founder as well as the ceo of a new video sharing company that was named one of the hottest tech startups. countdown to the closing bell with liz claman is up next. ♪

i

liz: massive demonstrations as brazilians call for help. should you avoid this order play the market? and we finally have a winner reign wait until you see how the ceo celebrated in the end zone. and video wars. facebook versus who has the edge and the instagram foray into video. we catch up with this twitter founder with his growing company. the countdown to the closing bell starts right now. liz: good afternoon, everyone. on this friday, i and liz claman. we are so glad that you are with us.