that will mean for the real-estate recovery. the markets where home prices have actually fully recovered after the recession. lori: going toto with the government. threatening her consignment business. adam: right now it is time to check your stocks. on the floor of the new york stock exchange. >> reporter: we were down. we take some of the back. down 172 points. the market is selling off. this sell-off is not a good one. concerns about a credit crunch occurring over in china. you have seen that global sell-off. that translates over year which tacks on to the losses that we saw last week with financials under significant pressure.

we're seeing health care type names. we are seeing leaders, and some of those are in the health care round. up three 1/4%. watching a lot of names on the move. not so easy to find the winners. you have the volatility index. 1979. it is a really high level. it shows you that there are some winners here on wall street. adam: thank you very much. lori: today's down day following a wild leap for the markets after the test hinted at pulling back stimulus. should investors feel positive economic or does that disconnect continue between the stock market and the health of the economy? joining me now, chief economist

and managing director. welcome. >> thank you for having me. lori: is there a link between the volatility in future growth expectations? >> the truth of the matter is that there is no business. nervousness because after a huge amount of quantitative easing, that transition is finally coming before us. there is nervousness. they're not providing as much liquidity as the bank's. lori: is in that a good thing that china is doing? why is it being interpreted as well? >> i think that when you create all of that credit is certainly is stimulus to growth, and when you take it back, even for the right reasons as you're doing in the united states, there is going to be some nervousness and also an excuse to have some sort of a correction after such a strong run-up. in china money-supply is measured and growing faster than the target. total social finance which includes the shadow banking market which is growing weight of control relative to what they

want. so all these things are for the right reason, but it is like telling a child that you're not going to feed him any more sugar even though it makes you feel better and it makes you get a sugar high. it does not feel good. lori: there has been a lot of the fed speak. the idea that there very conscious of all of this market turbulence and want to mitigate it as best as possible. why is that not having a calming effect as of yet or are we -- i just getting have myself? >> those comments were echoed by -- that language of the new york fed president, and the federal reserve is sincere when they say this. the turbulence of the volatility of the nervousness in the market is probably a little bit more than they would like to seek. i have no doubt that they would probably want to pull back a little bit on the rhetoric to call market. i don't think the intentions of them pulling back on quantitative easing have changed. again, there is pushed back when

you see this much volatility. i would not be surprised if the central bank rhetoric changes just slightly to call markets. think there will be a good thing. no need to hit the markets of the head. the exact intention of the federal reserve. lori: the rally has been so robust for so long. the wealth effect in the widening disconnect. >> your spot on. maybe a little bit of froth, but that does not mean you want to throw the baby out the best -- bathwater. at this time when we see so much nervousness, you mentioned the six going up, which it has come and you see this huge decline in the market, this is probably a little bit more froth being taken out then i think even the central bank would have liked. so maybe a little bit is good.

over the near term if this continues it would cause some nervousness in so far as that may be it even starts to impact consumer confidence, which is not so far. lori: interest rates. is that going to start trickling down into our consumer rates? >> i think there is no question that part of the impact of pulling back on quantitative easing will be higher long-term interest rates. of course that is one of the reasons why for many of our clients we certainly have been telling them over the last couple of months to pull back a little bit. not so much as to cause a threat to the overall economy. there's no doubt in my mind that we're probably going to grow at a 2 percent growth range. the second quarter because of the huge fiscal drag. it will probably be a challenging quarter. come in from the ability%, but we are on track to move better during the second half of the

year. lori: we will leave it there. thank you very much. adam: reversing earlier losses as tightening credit conditions at the world's second-largest consumer of oil. fox business contributor phil flynn is in the pits of the cme. prices falling sharply. does that have anything to do with what is happening with the dollar or more because of demand destruction in china? >> i think both. and i do not think that you can separate the two. money lending away from china. all of that hot money they used to go into the market. so i think it is part and parcel of the same story. what is amazing, with the down stock-market you could get oil, but here in the u.s., oil prices are up 24. reports of a shutdown, canadian oil stands, being shut down, imports being down into the u.s. because of the pipelines. that is down today, but that is

down big bringing down the product. adam: let's talk about medals in the showdown a -- slowdown in china. they usually still buy things like copper. is that not happening? >> not right now. if you look at the shanghai copper stock, the highest level in three years. that is a sign that the chinese are really, you know, holding in their purse strings right now. the other thing you have to remember, a lot of uncertainty which may turn into a surge of demand down the road when things calmed down, but she cannot get the credit and trust the bank you're dealing with your not going to run a mile of commodities right now. adam: we appreciate it. lori: other stories making news today. $21 per share is the price. the acquisition will diversify sources and taken into new geographic markets. both stocks well in the green on

this otherwise down day. 52-week highs on the news. classic defensive sectors. the u.s. banks have submitted a plan to federal regulators, how to pay for restructuring in the evvnt of a crisis. the banks agree told combined debt and equity equal to 14 percent of their risk weighted assets. regulators have not yet responded to the proposal and could reject the bank's plan in favor of their own, down two and 3 percent respectively. speaking of banks, the average pay for a top bank ceo is down 10% from last year. research shows bankers taking on an average of 11 and and a half million per year which is down. the number reflects base salary, cash bonuses, and options stock awards that are granted in 2012. one to come 18 and a half million. compensation is expected to fall in the wake of the trading debacle.

adam: cutbacks in the households of ceos. cut one of the bentleys. lori: leave it to you. adam: where in the world is the leaker. a no-show on his flight from russia to cuba. with the white house is now saying about his whereabouts. lori: the colossal power struggle reaching the high court. the supreme court docket ahead. lori: the housing recovery coming up. which markets are the hardest right now. lori: metals, what's going on. we will show you the trades as we head to break. cooling off a little bit. gold down. 1276. back in a moment. she's always been able to brighten your day.

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♪ lori: check the big board, down 181, 169-point deficit on the data jones industrial average. our low of the session was 244 points down. china creating an intentional cash crunch to ideally curbing credit. the news out of china trying to slow the economy and prevent a wild crash. certainly impacting the markets.

the fed is still in our spot light. the fed probably will start tapering early next year. that is the timeframe that bernanke alluded to. adam: a lot of people getting out of bonds are betting on it. something was street no longer has to bet on is the supreme court. it will hear a case challenging president obama's recess appointments. live from outside the high court in washington d.c. with more. >> reporter: a big battle between congress and the congressional -- between the white house and congressional republicans. the justices said today that they would review an appellate court decision that found that the president violated the constitution last year when he bypass the senate to appoint three members. they want ted hear arguments about whether the president's recess appointment power may be exercised when the senate is convening every three days in a so-called pro forma session. we see that when we see one

senator bang the gavel. republicans say that technically that keeps the senate in session, so their strategy for preventing the stress -- president from making recess appointments. the president says that is not a real recess. so this is going to go up to the high court for argument this fall. if the president loses, experts say that it could invalidate a number of decisions by the national labor relations board because these recess appointees would not be legitimate. the other big case that we heard today, 7-1 decision. the court said that an appeals court in properly handle an important affirmative-action case out of texas, the university of texas, and admissions program that is an affirmative action program. a white woman said that it was -- the program when she was denied admission was reversed discrimination violating in the

14th amendment. an appellate court upheld the university's program. now the supreme court says that it wants more detail and analysis about it. take a listen. >> i think that the plan that texas came up with is a good plan and that think that when you get into the details it gets better, not worse. so i am hoping that as they looked into this case that they will finally say to abigail fisher, guess what, most of the people who were admitted under the plan that you are challenging our white. >> reporter: there are several more major decisions outstanding. we expect to get them as soon as tomorrow. the defense of marriage act case in the california proposition a case. and an important voting rights act case. back to you. adam: thank you. lori: to check on the markets. very much in focus. another 200 points when date. that is making a significant

ground. nicole petallides on the floor of the new york stock exchange and in particular you're watching apple. >> reporter: it has broken down below that $400 mark moments ago. 399. here it is at $400.67 per share with a loss of about 3% and has sold off below levels that they. what is interesting, breaking below that $400 mark, the first time it is doing so since april 24th. today they came out and lowered the price target to $405 for 420. what happened to the 700, $800,000 targets that we heard from analysts, some concerns about the slowing iphone trend. also worries about morale. 385 is a low, but we are not too far off of that. lori: breaking news. the dallas federal reserve president richard fisher seeking the -- speaking at an event and london today. he fully agrees with what bernanke announced on tapering

stimulus and that it would be appropriate to dial back asset purchases. also saying he is not in favor of going from wild turkey cold turkey overnight on stimulus. worth noting, he is a nonvoting fed member this term. adam: we will briefly turn our attention to the man had which continues four in s a whistle-blower edward snowden. jay carney said the assumption is that he is currently in russia. in washington d.c. with more. do we really know where he is? >> reporter: well, the justice department official is telling fox news that the u.s. government does know where the nsa leaker is, but not providing anything else. at this moment spokesman jay carney is highly critical of chinese authorities in hong kong saying that they knew his passport was pulled by the state department and still failed to act. >> it is unfortunate that hong kong inappropriately took action

and permitted a fugitive to escape custody in an obvious attempt to escape justice. >> reporter: traveling with a british activists. according to a link the conference call with the founder of wikileaks offered no specifics on their location or on their security. also, we understand is that edward snowden was a no-show on a flight from moscow to cuba with one passenger snapping this photograph of the empty seat. a living at london's ecuadorean embassy to avoid extradition himself to sweden on sex charges and says that ecuador, iceland, and other unspecified nations are now possible. ecuador's foreign minister is saying this morning that the south american nation is considering his case. >> there are some governments that act more upon their own interests, but we do not. the act upon our principles and take care of the human rights of people.

>> reporter: after its espionage charges were filed june 14th, the american passport of edward snowden was revoked, but the wikileaks founder told reporters that the nsa weaker is able to travel with what is called an asylum documents. reporters asked what exactly that was, and the briefer really did not have a good answer. there were looking into it. adam: thank you very much. lori: what turned you think this story will take next? adam: can we illegally kidnapped him and bring him back? we would have to have a judge because you have to imagine the u.s. authorities of looking at that option. lori: it sounds like a movie. why you are buying and how much you are spending. should the government be keeping track of your credit card. adam: antiquated orragainst the law. one small business owners fight to allow volunteers to work for her for-profit business. the government says that is illegal. lori: check the dollar against its major trading partners.

still relatively high. it is weaker versus the pound and the end. we are back after a short break.

>> reporter: get 24 minutes past the hour, i'm here with your fox business minute. convicted of paying for sex with an underage prostitutes during parties at his villa and then using his influence tried to cover it up. sentenced to seven years and princess -- prison and barred from public office for life. two more levels of a deal before the sentence becomes final. defense attorney for george zimmerman has told jurors that that neighborhood watch member shot margin in self-defense. he has pled not guilty. and the wild fire in colorado more than double in size over the weekend growing to an estimated 114 square miles by last night. heavy winds are preventing

firefighters by making progress against the unpredictable fire in the rio grande national forest. in those earlier news headlines on the fox business network. now back to lori and adam. lori: the government is doing market surveillance on your credit card transactions which could expand to even your mortgage and other loans. of business groups as the consumer financial protection bureau is breaking the law. with more here is elizabeth macdonald. what is this database? >> reporter: they sent a letter to the consumer financial protection bureau saying, when the second, you did not put out our greuel for comment were congress to weigh in or consumers could way and in building this big database that would collect on a monthly real time basis, credit card transactions. here is what the chamber said to the cfp be in a letter. they said, we believe that bureaux demands are unlawful. in other words, dodd-frank which inactive this esp be says you have to basically issue a rule

for comment and now the chamber of commerce is saying that you are breaking the law by not putting up that rule for, and building this massive credit-card transaction database. that they met we need to know, what exactly is the consumer financial protection bureau collecting. here is what it is saying. the real time monthly info on your credit card transaction will not get your name or address a testier amoco and will not match your info with other data bases, but a more news database is coming. a big database with your financial transactions, to my mind, i don't understand how they're not going to match it with other data bases of their collecting it. they need to match. you need to have the personal and permission to match it. adam: let me play devil's advocate. to red flags that appeared to me. the banks objecting would tell me that the cftc might be doing something accurate given how the banks have dealt with consumers with credit cards. second, how is this any different from what the credit reporting agencies do n a much more detailed basis, collecting individual information on all of

us and then sell it. >> reporter: you just answered your first question by asking the second one. the reason the banks are worried is to have security clearances which only answer to the federal reserve. essentially independent agency. you have security clearances to see reformation that goes into the database. they're already question then said, your data systems are not secure. can you share that and permission to your credit card in the future, your impression with other federal, -- federal or state agency or researchers out in the field. but they're worried about is that the u.s. chamber, your credit report info has a lot more than just transactions. as your social security number. the dollar amount. adam: how is it something. >> reporter: that is what i am saying. basically the cftc is using credit report tempo confirmation to build a database getting it possibly from experience in attica reporting agencies, so that information is not just transaction manage data.as othey

identify information. lori: what will happen with this database a member nation? >> reporter: that is a great question. we need this so that congress can issue better rules. we need the information so that we can do better steadies' to better inform congress. we need this information to basically point at risk to consumers. the question that is important here is the sec, they do sampling, random sampling. they don't build big, gigantic databases with a tremendous amount of their permission. that is what is at issue here, and this is the controversy. lori: it is that indeed. >> reporter: short. adam: president obama is tackling climate change tomorrow. his main target, cold-fired power plants, the sweeping changes that could impact your portfolio are next. lori: volunteering for a for-profit. the government said that is against the law. we will hear from consignment new rule on her fight against

what she calls an outdated law. adam: take a look at two is up and down on the dow. a lot of red, but there is some green, especially some of the health care companies which are only now, about 160 points. ♪

♪ >> we want to draw your attention back to the market. we did have some headlines from richard fisher who says he was agrees with bernanke. he also said the word exit is inappropriate. we are talking about dialing stimulus back. let's haa back to the floor of the new york stock exchange and nicole petallides.

nicole: there is headlines about richard fisher. we have heard about the divergence between monetary policy versus those doing fiscal policy. obviously, not much agreement there. with that being said, we are up off the lows today. however, it has been a tough go of it. about half the days in the last 23 days have been big swings. this is the type of environment. get used to it. there was an announcement over the weekend that president obama will come out with a climate change tomorrow. with that, we are seeing some of these names get hit hard. back to you. lori: thank you.

ashley: a self-made entrepreneur is stepping into the ring. the entire business model is in jeopardy due to a 75-year-old law. more on how and antiquated law may end up costing her, maybe even you, but her business several thousands of dollars. the department of labor is cracking down on you. you wrote that nobody was imagine eating a business like yours. what are they doing to you with this lot. >> hi, adam. thank you very much for having me today. they are telling us that they

need to be employees. they should be able to use their personal time to benefit their families. >> we should point out you launched this business. essentially, it is selling used children's clothing. you create these kinds of swap meet where people bargain and they can consign their stuff. you do the trade. you keep 30%. the sellers get 70%. they get first text. they get to shopping for everyone else. the labor department says that is illegal? >> well, yes. they get to volunteer and they get to shop early. the value is make it first selection. they get the best prices. they get the best selection of

merchandise. we came out with a favorable ruling. then the federal department of labor came in and basically over rolled. we believe that we are compliant >> why did the department of labor step into this? essentially, build a bear is violating the law because they are not paying the child that is building the bear. >> exactly. just like bill the bear is receiving a profit, we are receiving a profit. it is a similar analogy. we would have to say that those children are employees of build a bear, which, of course, they are not.

the supreme court just says that when you apply the fair labor standard act, you have to look at thh economic realities of the whole situation. the economic reality of our business is it is moms using their personal time to benefit their families. they are working for themselves. they are not our employees. >> it became successful because the customers like the way you do business. we hear from the government. >> it really is. it feels like an overregulation that hurts moms like me to want to use their personal time to benefit their families. we've elected the department of labor does not have an

understanding of what we are doing. >> thank you very much for joining us. >> thank you, adam. >> we will be joined by charlie gasparino. >> stocks are climbing back after being down more than 240 points. we will speak with a traitor to get some reaction next. interest rates have shot up in the last week. the ten year at 2.57%. back in a moment. ♪ art. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary clouinfrastrucre, global broadband network and custom communications solutions, your business is more reliable - secure - agile.

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>> the insider trading conviction was upheld by a federal appeals court today. how close did he come from becoming a freeman? charlie gasparino has the latest. >> it is pretty amazing. you go from 200 down. here is my take on this. i think, eventually, the markets misread what bernanke said. he did not say we are going to stop printing money. he said someday we may stop printing money.

he did not say that the money will end immediately. he said that it may end. investors, i do not tell people what to do, buy or sell, do whatever you want. i call for this market selloff in the past. when you get off, there is a pullback. let's face it, if the economy is improving and corporate profits are good, it is generally a time to buy stocks. lori: richard fisher just said, do not overreact. he is saying he is warning. >> they are afraid. >> i think he is right. i will tell you guys, ladies and gentlemen, small investors,

beware. there is a buying opportunity. take a deep breath here. federal appellate court upholds the conviction. i do not think people realize how close he was to getting off in 2010. i point this out in my book. here is the interesting thing, in 2010, the judge basically was this close to throwing out the wiretaps on the grounds that the application for the wiretaps were somehow faulty. they admitted certain things. the judge called it a reckless omission even though, in the and, he still approve it. he was talked down from throwing @own the largest insider case in

20 years. this kid was 20 something. he basically said, listen, let's be clear here -- lori: wiretapping is the new tool. >> i am reading the book about whitey bolger. how they invade someone's privacy through a wiretap, you need to show probable cause. you need to dot your i eyes and cross your t's. holes that, initially, they did not do that. he was ready to throw it out.

we could find a lot of stuff on the internet. you let that old-fashioned view of privacy allow you to throw this out? >> c, your book will be fascinating. going forward, people on wall street, is there any chance that this ruling on wiretapping can be thhown out? charlie: i think that is a great question. today's ruling shows that it probably will not. the courts have been more that you know, what we do not know is what came first. one thing we do know is that it is here to stay based on this

ruling. he will finish his 11 year sentence. i think wall street should be prepared for more of these kinds of issues. if they have something, they will go after you with a title iii. they were investigating a journalist. i know, for a fact, they investigated a journalist. they are not against -- this was over insider trading. everybody is open game. >> fascinating. thank you, sir. >> thank you, charlie. lori: let's go to the new york stock exchange.

basically warning the markets not to overact. what do you think? >> i think that, you know, handovers, as most of us know, to go away. i think the market has completely overreacted. poor economic news out of china. i think that calmer heads are about to prevail. it just compounds the problem, whether we are spiking to the upside or we are spiking to the downside. i think we are starting to see that now. we are starting to normalize. >> thank you. >> we have some more breaking news. crude extending its gains of more than a dollar a barrel. we are less than an hour away from the oil markets close.

lori: bernanke and your home. what rising rates could do to the market. >> take a look at the bright spots on the nasdaq. it is down more than, roughly about 1%. ♪

>> something we can all relate to, local housing markets are all rebounding. it is all detailed in the homes.com local housing market index which was released today. we have it for you first right here in an fox business exclusive. your first look at the report.

welcome to fox business. in 14 of the metro area that you are looking at, they have actually exceeded or recover to the point of the peak price level before the housing collapse. how do they do that? >> that really is a great question. it exists in the energy producing states or in some of the location where maybe the highs and lows were not as dramatic as maybe they were in other parts of the country. taxes represents six of these. >> san antonio, dallas, houston in the top five. >> yes. thirty-five of the top 100 cities that we track have rebounded as much as 50%. overall, we are looking more like 35% across the country.

there certainly is some optimism. i know that there may be some opportunity and black markets to find our way back to some of the highs. >> when you say 50% recovery, if my house is worth -- if i went from one dollar to $0.70, what you are saying is my house is now not worth that. >> that is correct. where are some of the markets that use the opportunities for purchasers? >> from the rebound perspective, the western united states still lags. month over month, we are seeing nice gains in the west coast. certainly, some growth back from a recovery standpoint. i think there certainly are some opportunities there. new york, connecticut, obviously

places like detroit where the recovery has been slower are also seeing positive gains. there really could be some opportunities to capitalize on an early recovery, but still some upside to come. >> it is obviously happening much faster. the yield on the ten year bond is going higher. may we popped this balloon? the fact that prices are going up is a good thing. >> that certainly is a great question. interest rates have been at the loews for a good period of time. lending has been difficult. we work very closely with large national brokers. we talk about cash buyers fueling the market. there is certainly some concern for that on the horizon. isolated pockets, i think there

is some opportunity. using some of the comprehensive tools on homes.com to identify where the opportunities are, that is available. >> whether sellers or buyers, they will be happy to hear this. lori: and upbeat report. stocks are down. the dow of 139 points. we are heading into the last two hours of trading. tracy byrnes joined adam for the next hour of fox business. do not miss it. ♪

>> two hours before the closing bell. tracy: cutting loss is roughly in half the dow was stumbling about whether to 18 points right now and it

has been down nearly 250 points. worried about the fed tapering and the trade death cash crisis out there so will to carry into some buys? >> get talk about the china meltdown the credit crunches strike comparisons for five years ago we will tell you how it has a direct impact on american business that is coming up. tracy: but we have free cheap stocks with steady earnings. we will take a closer look. it is time for stocks and we have pared back. >> it is out when it denied points roughly 250 points a of day dow jones industrial average of 14,686.

most of the names are in the red with the bank stocks better under pressure agent coal stocks under pressure and homebuilders are selling off a immaterial slyke alcoa at the four year low. that being said let's take at lager charts we have had a nice run since december it is up 2% of the major averages that is interesting but of course this is a losing week on wednesday it was triple witching on friday and to talk about the trading almanac the week after triple witching is not good news is bad is this week. the dow was sam 13 and 20 out of 22. that is not good the average loss of just over 1%. traditionally this is not a

good wind. -- a good one. adam: cold prices are falling again after plunging just last week and tour is in the cme and talk about china and the credit crunch. >> china was the big buyer of the battles along with india. but look at the dollar a and the bond market because that is what is competing for the dollar's one of the most interesting things this week was the fact that speculative open interest fell to the lowest level since before the economic crisis began. that was a big reason why we saw gold go up. but the big turnaround is the oil market. we are up $1.45 that is a

big turnaround on concerns of the pipeline coming in from canada. the imports are playing a major part in the midwest. with the pipelines down they will have to look for other sources to make up for that. that is why we are up a great now and more good news for the midwest, the refinery cover the crude unit is restarting but the bad news is that uses canadian crude. we cannot get a break. also are bock gasoline is still off the lows right now but it is driven up by the crude but that is still down because that will not be impacted as much by this situation in canada. we have had a lot of stuff happen just the last two minutes to the other

precious metals are off their lows so maybe we can get a stock market stability with the commodities. >> phil flynn, a thank you very much. tracy: today session lows are down 5% or more from the record high. is this the first death of though way to the dreaded correction or are wedoing this? this beginner senior equities strategist at wells fargo of pfizer's. it is interesting that this downturn started is it truly the correction we are waiting for? >> i want our clients to take advantage is only 7% but to be honest, may 22nd we started the correction when ben bernanke started about possible tapering names of my convinced that

they will. thinks the economic projections are a little too optimistic. may be early to teefourteen but i am not convinced it will be september or any meeting for the balance of the year. >> to talk about tapir talk that is not the latest showing cnbc to be canceled. [laughter] but to ignore the other comments they would open in the us begin and and imus reading something that they all look is not good? the 2013 gdp revised down in view called for the s&p at the end of 2013 possibly around 50 and 75 but at the height and? it seems like that will not see the light of day again. >> a think valuations are reasonable and that is not the surprise to anybody. i think people will be more

confident and comfortable the u.s. is often a sustainable or modest growth we have seen a lot of foreign money come in so giving the earnings estimates the evaluation is pretty modest with the historical average so that is a doable number so that offers the opportunity right now also of course, they're bailing at of the bonds and there is nervousness about china and funding their banks but we do have volatility and we have expected it and we have to take advantage of it. tracy: some of the sectors say you are overweight is materials and telecom we have heard about these sectors recently they think they have more to run and? >> the defenseless are doing

great today but the sectors that we like our sensitive to the economy. we do like to lead, but discretionary, materials, te chnology, those other doing well but if you believe the recovery of the states will continue a and europe will be less bad or china will look better with the emerging market than you would to be in the sector that is sensitive to that of global recovery don't want to hide it health care or utilities or consumer staples you want to play the second half of the cycle because of continued economic growth. adam: but what happens if people dumps the bond interest rates will go a bit it seems home-improvement could take a hit.

>> if you look at mortgage applications of the bond pullback, four or five mortgage applications have been down in these rates were rates will take some stephen of the housing market and i don't doubt the fed wanted to take some steam out of the market. they don't want stocks up and they certainly don't want housing prices going up to% every year. so this could be fed strategy but as i said if your outlook is 12 months or locker through the end of the year you have a good opportunity. tracy: the go shopping. thank you. adam: stocks are fighting back on the floor of the new york stock exchange is in your future. tracy: and we saw how some serious revelled on a dish revelations about the

economy and what concerns him the most. first we have another check on oil in the dow was only down 83 points although and it is at $97 a barrel. -- $95.16 a barrel friday night, buddy.

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creditcardcom. adam: and the dow is down only 66 points because at 1. it was 244 points in the last two hours people like richard fisher out of dallas who said i have ben bernanke cpac e did not say we would stop quantitative easing anytime soon in maybe people are listening but we will check in to find out what is really going on and why we're fighting back. tracy: death first consumer financial protection and bureau like to market surveillance on your credit card account. of one big business group says this agency is breaking though lot and elizabeth macdonald is here. >> the chamber of commerce sent a letter to zeliff cftc

to say it is doing credit card transactions to help congress so they can make better roles it is research so congress can stop risk to consumers but they said we believe it is unlawful and the bureau of events are of lawful telling the cfpb because the dodd/frank bill which put the -- could replace the cfpb that your suppose to put out a role so comment so consumers can way in or a judge but instead they moved ahead and building the database. what is in the database? that is the question. a sensually realtime monthly info on your credit card transactions your name and address are not attached that is what they say. but a mortgage database is

coming. if they say they're not going to have personal identify information how they put into the mortgage database? tracy: and what did they get knowing that i charge pump money to victoria's secret? >> they are torn about the risk to consumers with interest-rate gouging. that is a great question whether they getting? they do read disabling to help congress and there is a concern said gao said the data system is not secure the question that last year but who has security clearance to see this informational other federal or state agencies get the information nor will researchers? why not do the sampling?

why build a jet enormous database? adam: good points of big brother but the sec bluet to protect consumers with the banks being the outrages of consumer credit cards. maybe someone has to change. >> a wide you need a death enormous database they need to see that information? but the thing is the bank has the information but for the government to enforce something to get taxes paid cover that is the danger. why do they need it? is it necessary? tracy: your point* this system is not secure to begin with so where does that and death? they sure you will continue to cover the story. adam: a writedown we check in with nicole petallides as

a new york stock exchange why remaking the surge back to the positive? >> move being higher once again also watching oil. the dollar has changed direction that is of the apollo and maybe changing a little bit but volatility has been the theme on austria's since may 22nd so it is not unusual to see that today right now we're down 70 points we were down 250 points or looking at the euronext and as expected the european commission to give unconditional approval to the deal after their investigation found the to do not directly compete or raise any antitrust concerns but now back to you. tracy: volatility is the new

black. watching the markets every move this hour the dow was only down 70 points hopefully it fights back up to the green so don't go anywhere. >> also addressing chat -- china credit crisis and how it impacts american companies did your investments, at our moody's economist ways in but here's what the dollar is doing right now. check them out. and symptoms of bph,

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>> here is your fox business brief. the web house spokesman says hong kong made a deliberate choice to release the whistle-blower snowden and he says u.s. assert -- assumes he is still in russia now expects moscow to put him in the state's. opening statements in the trayvon martin murder trial the prosecution highlighted a call made by george submit he was using words fall following -- follow him

through the gated community and that he fatally shot him in self-defense. >> a stunning upset in wimbledon isn't knocking out of straight sets ranking with a dirty death a two-time wimbledon champion lost in the first round at a grand slam event that is the first time that has happened. this is the latest from fox business, giving you the power to prosper. tracy: quickly take a look at your market for you the dow is climbing back only down 48 points and also the essence the earlier we were down as much as to madrid 44 points but we are ack that vigig to get ourselves up. >> data is due out this week and the numbers could be a major indicator of the direction the u.s. is hidden in that data could strip

would -- could signal that it is strong death to handle the withdrawal and they give for being here. can you help to explain why we should be so focused on the credit crunch and the big crisis in china? >> there are many u.s. companies that now lean heavily on sales growth in china if only to support operations in the united states. we have to remember over the past and year's growth in emerging markets has exceeded 6% a dual real growth and by contrast real economic growth has been less than 2% if they alter the giant chinese economy we will feel it in the west. adam: not a direct quote but

regarding our e economy the chairman talked about this statement from the fomc was that gdp in this country lowers expectations and you said policy makers may soon die down grow and it sounds like you believe no letup anytime soon in they would have to pour dawn? >> right now this latest rise of interest rates exceeds what could be warranted by any improvement of the underlying economic fundamentals and i draw this conclusion for the simple reason for what we now observe is an increase of private sector borrowing cost that believe better not is cradled the end treasury yields what is happening is lenders and creditors those to purchase corporate bonds

are very much concerned of the economy to shoulder this by interest rates if we had a subpar economy when the 10 year treasury yield was less than 2%, things probably are not going to get any better with economic activity now that the 10 year treasury yield is in excess of 2.5%. adam: i am like a coffee addict i only think of mortgage interest rates but i hear you say that's a lot of people watching what businesses have to pay to borrow money are concerned the economy may stall? >> not stall but slow and put more companies in danger to not make good on debt repayment obligations the junk-bond market is a great example. early in may the average

yield was just under 5%. be the bitter night yesterday that was about 6.six 5%. what's a jump in defying a lending officer at a bank cannot help but notice credit has gotten far more expensive for these high-yield companies as marginal corporate credit and as a result of a bank lending officer perhaps i am less inclined to supply attractively priced credit to small business and in turn that will slow business activity spending as well as the overall economy. >> to come back to mortgage interest rates you expect that yield on the trip -- tenure treasury come back to%? >> yes.

at some point* over the next several months we will find that treasury will move back at 2% in response to the inescapable reality this will remain the most sluggish economic recovery since the second world war. adam: we appreciate you being here on "markets now." of the best. tracy: coming up the nfl the white house wants football helped to launch obamacare jerry oil is on the story you can't always get what you want. adam: the get the s&p 500 winners and losers.

but plenty of others still in the red as may get back into positive territory and nicole petallides at new york stock exchange. >> watching the market coming up off of the lowe's is number one. last friday was so busy with rebalancing and quadruple witching that this friday will be busy but talk about the health care stocks. look at wellpoint up three-quarters of 1% and the group is "the shining" star. i know we come up off the lows in areas are picking up steam but will point* and humanity and cigna hit the all-time high but they are

showing highs in the s&p 500 we were down over 200 points these reveal the names of all street hitting notable highs. health care is often viewed as a safe haven sector and that plays into that with the payout that is less than expected. tracy: obama just making comments after meeting with the immigration reform also the snowden case am peter barnes has all the details. >> edward snowden has left hong kong now we believe he is in russia and moscow the and in this meeting with business leaders on immigration reform they ask the president if he has spoken to russian president vladimir pugin and he said we are following all appropriate legal channels to work with all countries to ensure the rule of law is

being followed. i refer all other questions to the department of justice. on immigration reform he says that legislation is at a critical juncture meeting with the of business leaders back to represent or benefit from immigration reform but the key vote on that issue today am meeting with eight ceos from technology, a food services and agricultural and steve case was in with the meeting but the bill looks like it has solid bipartisan support with more republicans coming on board with the additions to border security it would now double the size of around $30 billion to complete 700 miles of fencing.

>> we will progress and we have seen substantial progress in the senate. and consider the e. greenbug negative agreement to be a positive breakthrough in the bipartisan effort to common-sense immigration reform. >> it would establish a 13 year pathway to citizenship over 11 million immigrants living here illegally but it faces a tough time in the house where many conservatives oppose citizenship for people living in this country illegally right now looking at a much narrower measure and the house speaker as i indicated how he will move forward with the issue. tracy: good thing you cover this for us peter barnes and now asking for the help of the nfl to promote obamacare? the whole football players

could encourage young healthy americans to shell out big bucks for insurance. this is silly. >> the administration is asking for their help and who do they target? young men ages 18 through 35 this is the very audience they need for it to be for a vigil success. they pay it in their healthy to subsidize the rest of us but it is to be seated this will working and yet to be seen if the nfl will site on board it sells like it is the white house saying they would like it happened reverses that it is. tracy: dozen across some great wines of government and private? >> it doesn't bother me but the reality is. >> maybe it is strange but it is not unusual for the federal government to call on the help of the private sector he does it every month when he talks to the ceo. adam: but controversial like

obamacare? why would you want to jeopardize your brand? >> i cannot argue on behalf of it because i am a frequent critic. the october 1st deadline is to the exchange of big questions whether many to be ready some states they don't want to do it all and the insurers don't want to use sign-on and with part of the market we will not be involved i see this as a hail mary pass. [laughter] to get it moving ahead. it is critical the people in the white house get the young man assigned:. >> is like hiring jasey. >> we heard a rumor the white house paid for rap lyrics for young men to support obamacare.

adam: that leaves you speechless. >> it has men death before. >> federal government spending money on stuff that may not make sense? that makes sense. >> you will talk about this tonight this is one of the stories we tackle tonight with a financial panel to talk about what to do if you're at the press of this of retirement given what the market is doing. tracy: the oil report tonight on fox business. coming up coming digging deeper into china's credit crisis we will tell you elvis impacts that only the u.s. economy by your investment. tracy: the dow is down only 49 points with the treasury is now. and now slightly lower at as well we will be right back. ideas, goals, appetite for risk. you can't say 'onsize fits all'.

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>> here is your fox business brief. of federal appellate court upholds the insider trading conviction from russia brought them he challenged the use of government wiretaps in his trial. and setting sites on wall street's initially filing for the ipo but the $100 million will not receive any proceeds from the sale because shares are held bay existing

shareholders. but smash burger robot take a bite out anytime soon according to "the wall street journal" it is wary of growing too quickly with the ipo remains a long-term option. right now it is looking at adding more locations with as many as 500 in three years. this is the latest from fox business, giving you the power to prosper.

tracy: we'll closes up at $95.18 a barrel. today's gains of over 15 5% reversed earlier losses for crude. adam: could it be 2008 all over again for china? fitch rating has the unprecedented credible

-rowing in the chinese banking system and we are here with this system but we have to pay attention exports alone could have grown dramatically so we want to pay attention. >> what is interesting is it is a self engineered credit crisis. banks have become increasingly reliant on short-term funding to meet long-term obligations now finding themselves cut off from unfettered access so this goes into the steepest decline in a single day of four years. the shanghai composite 5.3% on monday in thinking they may not intervene to ease back the credit crunch. this is a statement that set the chinese market firing and posting this on their website they say do too many changing factors and because of the mid-year point* to their requirements for commercial banks in liquidity management has become higher. this confirms the chinese government is trying to come

down hard on the shadow of the banking system. the devil is still slightly down today with the fed concerns but the uncertainty of china growth is slowing down it is a tricky combination for those heavily invested into china in the bank is not limited that the banks feel this could trigger a significant and unpredictable outcome. adam: to talk out exports in the united states were 11% growth into china that is 5% so a slowdown of manufacturing could be problemmtic but there have been signals all along to get a correction and recorded chang is on this all the time. >> if you looked at those loans that have been given to the banks are big companies cover their return

on that investment, the gdp richard is diminishing dramatically over the past four years. we had 25 percent that is going down and down getting used to the many and it is not producing what it should be and what is legitimate behind that? >> we will pay attention because what happens in china impacts so many investments here. tracy: what is your preference? monsters or zombies. is there a difference? eight big box office clash this weekend and dennis kneale is here with the outcome. >> of monster opening for monsters university the film disney pixar bringing in more than $82 million ranking number 114th

consecutive dick to place first an opening weekend that is an impressive number with a prequel to monsters think it came up over a decade ago but the bigger surprise is world war z open better than expected may be forecast of 45 billion now it could hit 200 million in the u.s. and that is good for paramount which endured budget overrun and finality real issue and it is said to cost $190 million to make maybe 100 more 4 million -- marketing and man of steel comes in three and world war z took some of those syphoned version of the of the workers but ii fell 65% from its opening weekend. the film took in 40 1.2 million dollars which is

respectable and far behind those you have seth road didn't apocalypse spoof and now you see me at number five. monsters verses zombies clearly wanted in three weeks is another clash of epic proportions. monsters obverses robots but they battle each other in the same film and coming from warner brothers and hollywood there ain't no such thing as too much of a good thing. tracy: and give may a good check fleck. >> she watched blood actually. i tried to see that movie and i cannot find it anywhere. >> she is on the oprah network i really do want to

see a. that is funny that you say that. but thank you very much. >> time do check the of the your stock exchange amir seen people go back into equities and bonds will let last? >> there is a lot of volatility on the street and and it is a losing month on wall street these of the companies they like best so there is a feeling that this was the oversold market. certainly an improvement in a layer in the day but it has to observe these moves so you can expect more of the same and other thing worth noting is richard fisher i am sorry the dow was president who supports

ben bernanke and tapering but says it should be done slowly and some people are noting that some of the big question is how to invest in the market? we are here with steady earnings. >> also looking at winners and losers

tracy: stocks off the session lows but we're off

the first losing month of the year but my next guest says there is a better way to seek safety in your investments and from "barron's", and it used to me they look for stocks that were not so volatile rail? >> everyone is doing it at the same time they have done it. that is the problem we collect data stock to say it has not been as volatile but if you start off expensive than that is a problem. tracy: like kimberly-clark? >> summer staples or utilities everyone goes for the traditional savings and we have seen this shift starting back in april were the safe havens have not done so well over the past couple of months. you need to drive a little deeper instead of looking at the way the stock has traded , look at these stability. would get the share price and how consistent earnings

has been that will ultimately drive share prices. you can find one that is not yet that popular not traditional safe havens cheap and stable to good things to have. tracy: i feel that we don't trade on anything it is on what ben bernanke says. >> short-term, yes. i am not sure which if you are responsible to bring to a stock market back. thank you. but over the long term definitely with the most important predictor of future stock performance is how cheap day are relative to cash flow to when you ran some screens? >> i did a nerd out to when you are a good word. >> principle is the next block of the money for the retirement plan like a 401k

and annuity but it has a big presence in emerging markets anywhere with a growing middle class. it does have financial market exposure so you can see volatility in the short term but constantly growing the asset base it is at 12 for 13 times earnings. little better than decent. tracy: the next one is the play on oil? >> equipment for offshore effort will rigged but it has two-thirds market share in the areas where it is specializing. it is the industry standard and in to break up with new production requirements and to say it could be double

the. >> they have to keep this current and then do take a chance on a mishap. >> fluor? they specialize building a complex refineries, factories. tracy: they have been around it for ever i think i have been mispronouncing for a long time. >> did make money in so many different ways if they have been doing energy related things they could offset each other you're at 13 times earnings. okayed dividend it is a good stable earner. we eventually will trade on them. >> i hope you are right. >> liz claman takes us through the last hour.

ford motor company is on austria's now setting sites on the world's largest market. alan allow lee joins liz claman with a first of fox business. coming up.

♪ liz: ford, jamming the pedal to the metal as the stock fly side, up nearly 50 percent of the past year. but as first on fox business, president and ceo of ford on why he is lazar focused on china and thinks japan'sscurrency valuing is about to go down and what ford is doing to get you in their driver's seat in the u.s. the etf craze. record numbers of new investors, doubling of the last five years. does the smell like a bubble? it will last of the nation's largest etf providers.

a fox business exclusive. and feel like your work days keep getting longer, but your paycheck is not keeping up? we have some great news for you. we will find you the extra time to hear all about it. "countdown to the closing bell" starts right now. ♪ liz: good afternoon, everybody. i'm liz claman. it is the last hour of trading, and we are witnessing a rather stunning comeback right now in the dow jones industrials after being down 250 points earlier. the s&p also getting crunched, down 32 points. look at the tape right now, what a difference from just a few hours ago when major worries gripped the market, ducking and deeply into the red. right now the dow was down 71 points, trying to make a comeback. seventeen minutes ago redound. the nasdaq,