cheryl: i think you absolutely have to have a college education. i disagree with you. dennis: both of you are missing the bigger point. our federal government is now up to $11 trillion. it is the next big meltdown. stuart: i disagree with you, cheryl. cheryl: we still love each other. thank you, mr. varney. we have nicole cut back on the floor of the new york stock exchange. nicole: a lot of bulls upset

when they saw the market. we were at 15,500. now here we are back in the middle. about 35 points off the high of the day. most names have of arrows. bank stocks and technology and energy. all with us arrows. gold within us arrows. just fractionally. that is the big picture. dennis: maybe some fraidy cats joining us now. oh, i am sorry. >> market participants now expect the increase to come considerably earlier than previously thought.

such an expectation would be quite out of sync. dennis: translation there would basically be a bunch of fraidy cats. we have a chief investment strategist with us now. thank you for being with us today. the dow is up 123. >> i do not think they over reacted at all. the equity markets in the markets in general have been reacting to what ultimately normalize. they are going to react to what is likely to develop over the course of the next year. dennis: if markets are

anticipatory, how is it that the dow can be down over 600-point and then turn around. the market cannot be right about both things, can it? >> the fear is that it is -@accelerating. that is a concern. the reality is that we look at the equity market and how it reacts to a fed tightening. history tells you quite clearly that the market does go up. dennis: please repeat that. you said history tells us what? >> 14 tightening episodes going back to the 1950s.

80% of the time it has basically gone up. it is a tightening by tapering qe. i think the reaction here is that the equity market moves higher. it is fueled by earnings which we are not seeing currently. dennis: the s&p 500 was up 16% in the last two years. the economy is getting better. we have to run. thank you very much for being here. what is bugging me today? the next great meltdown.

college loans. the greedy banks cannot be trusted. banks have to turn a profit. look at this, outstanding government loans have soared to almost a trillion dollars. the default rate on those loans is climbing. now over 11%. almost 7 million people have snagged government loans since obama took office.

tweet me. our college loans the next big meltdown? your turn to weigh in. your comments coming up. cheryl: you are so shy, dennis. you really have to work on that. [ laughter ] dennis: no one is doing anything about it. cheryl: acting irs commissioner testified before the house committee reporting his findings before a month-long audit. rich edson has the details. rich: there is plenty to investigate when it comes to the internal revenue service. basically what you are looking at today is a bit of an

argument. something democrats say absolutely did happen. >> they have led many people to believe only conservative groups are groups with tea party in their names. now we know that that is not the fact. >> treasury inspector general has responded to these claims. what happened was there were progressive groups that were put on a "be on the outlook" list. it was really only conservative groups that were targeted. >> only tea party cases, at this point, were flagged and sent to another review. there were no other progressive cases sent to another view.

>> -- >> please, do not interrupt me. rich: too early to tell if it was only conservative groups. both conservative and liberal groups were put on these lookout list. both were held up a number of months, in some cases, a number of years. back to you. dennis: thank you very much. president obama says that he will not "scramble jets."

last night neil cavuto talked with another well-known and implements named in the computer world. mr. mcafee. >> whether his intentions were noble. >> any disclosure of any information is good. why should we be kept in the dark on anything. good lord, we are all adults here. i want to know what is happening in my world or we are in the dark and bumping into things. let's find out what the world is all about. what is our government actually doing? don't you want to know people. i do. i back him fully. i also back his balls, if i can say that on fox. he has the courage to actually do something knowing its risk. now he is on the run. having been on the run many

times in my life, i know how difficult and frightening that can be. cheryl: this major scandal also involves companies like verizon, google, at&t and facebook. what happens in vegas actually stays in vegas. they want these companies to do more to protect the privacy of these americans. we have a las vegas attorney and time resident of sin city. it is great to see you. this is a bit surprising. >> i think like any major city, i think it is great they are

standing up for the privacy of individuals. people who travel, people go to las vegas and spend millions of dollars in a year. new york city, chicago, l.a. they are stepping out and saying recognize our fun -- fundamental rights. if people come to las vegas and they are spending a lot of money and you have big gamblers, the last thing that casinos want a lot regardless where they are in the world, to have that information available in some fashion. these organizations. they are speaking for all of us as individuals. i commend that. i think you will see other cities step up to this issue. cheryl: the amount of big-money gamblers.

is that of concern? they want privacy when they are spending this much money on gambling. >> there is not a casino that you cannot walk in that does not have eyes in the sky, video surveillance on the strip, that is for crime prevention and things like that. if, in fact, we go into a public place and we want to gamble, number one there are a lot of people that what you gamble. number two, there is an expectation of no privacy in that situation. however, when you are taking personal data and not personal data is being used for the government to basically do what ever they are saying, that is different than the expectation of privacy. they keep eroding these type of

rights. i think any major city like las vegas or otherwise needs to stand up for individual rights. cheryl: thank you. good to see you. >> always a pleasure to be here. dennis: he is the king of bonds. it is no time to stop buying. cheryl: iran supreme leader blames the u.s. for not mentioning a deal on that country's nuclear program. we will show you where the smart money is being invested. dennis: take a look at energy. ♪ [ male announc] surprise -- you're having triplets.

[ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. and you would't have it any other wayse. but your erectile dysfunction - you know, that could be aa question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can beore confident in your ability to be ady. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph,

like needing to gofrequentl. tell your doctor about all your medical conditionsand , and ask if your heart is hhy 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 adache, upset stomach, delayed backache omuscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than fo hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the ps, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

♪ cheryl: the bigger story here is that this could be the first week in a row that we actually make some gains.

we do have a nice dow performance. hewlett-packard, boeing, united health, these are the names that we are watching. nicole petallides, she has a lot more details than i could possibly hope to have. nicole: above that 15,000 mark. pfizer is looking good. i have to be honest, most of them are looking good. we are watching the exchange offer. that is one headline. they had began experimenting with some medicines. that is the good news there. on the downside, pp hm to the debt side.

they were using that to treat advanced cancer. back to you. cheryl: definitely two different stories happening there. thank you very much. nicole petallides. ♪ dennis: let's make some money with charles payne. charles: it is up a little bit. they reported this morning. i still like this one a lot. this is how i build an argument for an investment case. winnebago, rock bottom in 2000. they have been coming back each

year. the backlog is amazing. 192% increase. the diesel backlogs go up to 365,000. this company is moving back to where it was in 2004 when it peaked. i am not saying it will be 39 now, it is off to the races. cheryl: do you think part of this continues to be the baby boomer generation? >> absolutely. i think maybe the baby boomer is feeling a little more comfortable going out and buying this. it is like any classic recession. it has not happened with the overall economy, but maybe

happening. you cannot outsource this. dennis: think event, charles payne. target stores is the latest of sponsors that have shut the door on paula deen. cheryl: in america boss held hostage. he is heading back home, but at a cost. details coming up in the fox news minute. ♪ i'm a careful instor

when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackck. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it cafully before investing. risk includes possibleloss. folks have suffered from frequent heartburn but now, thanks to treating with prilosec otc, we dn't have to suffer like they used to. [ bell dings ] ♪ [ horse whinnies ] getting heartburn and then treing day after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. we've surcome a long way.

♪ [ le announcer ] one pill each morning. 24 hours. zero heartburn. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much ishe official retirement age. ♪ the question is how do you ke sure you have the money you need to enjoy all of these years.

♪

♪ >> 24 minutes past the hour. hi, everybody. i am jamie colby. the american ceo that was held hostage for six days has been let three. he was not released until he agreed to pay nearly 100 workers two-month salary. in south africa, one of nelson mandela's daughters think his health did improve overnight. president obama africa today and will be in south africa

tomorrow. renewal services being held right now for actor james gandolfini. he died in italy of a sudden heart attack last week. broadway theaters playing tribute to him last night. those are your headlines at this hour. back to dennis. i will see you in an hour. dennis: thank you very much, jamie. diane macedo joins us now with a look at the crumbling empire. diane: is a growing list now. target jumping on board. we heard from walmart. they are also going to sever ties. a long list. smithfield foods, food network, home depot and a few others are dropping paula deen.

this comes in the wake of the racial discrimination lawsuit being brought by one of her former employees saying she used racial slurs in the workplace. she said she wanted it to be a plantation style wedding she says she does not remember saying any of that. she did admit she has used those words in the past. she said, at that time, she used racial slurs back in the 80s. she did issue a tearful apology. both on youtube and yesterday on the "today show." dennis: did they get rid of her before her "today show" appearance? diane: does have all come out after that appearance.

it is not that they solve this and that they would hold back. it is actually the opposite. could that made matters worse? whenever a company has to judge something like this, they have to find kind of a sweet. in this case, food network and walmart have actually already receive some backlash from people saying it was wrong. other brands have attacked her. dennis: thank you very much. cheryl: we have the fox business suppertime showdown tomorrow. going head to head in a month low competition. players either to battle it out.

>> this is rob morgan. i am the chief investment strategist. i bet a philly cheese sttak in my stock picks the doors. i am so confident that if you win, i will buy you two. >> looking forward to the summer time showdown. i accept his challenge. cheryl: i think it is this. check out the tracker. now up 22%. it is up 27% since then. they are neck and back going into this. it is food on the line. it is very important. peter or cheesesteak. i do not know. dennis: i think both. whether it is e-books, paperbacks or hardcovers, english is conquering the world.

we will have the reason why in the media minute. cheryl: how you can make money on investments despite the tensions. the panel is coming up next. i want to take a look at some of the winners and losers over on the s&p. we will be right back. ♪

dennis: kelly please ship hold onto dow 15,000? let's check in with nicole petallides at the new york stock

exchange. nicole: volatility has certainly been the name of this game over the last month or so. nike will be out with their quarterly report after the bell. maccormick makes spices and the like. bed bath and beyond. you go in there and spend $300. the profit is down. pandora to the upside. we continue to watch that one. they will be in more vehicles and getting more upgrades. cheryl: nicole, thank you. we will see you in 15 minutes. the u.s., along with several western allies opposing iran's nuclear program.

the solution to the nuclear case is easy claiming the opposition does not want the issue to be solved. joining us from washington is michael rubin. michael, i want to start with you. you have been writing extensively about the new leadership in ironic. we are the fools. why do you say that? >> they certainly talked a great deal. he used to be the nuclear negotiator. when he was criticized for entering faultlessly, what he said was, well, i was only doing it to prevent sanctions. he was really just claiming victory.

cheryl: you are suspicious of him. you think he is kind of laughing . >> yes. there is no doubt that he is committed to the islamic government. he may have been the most liberal of eight candidates that were allowed to run for the presidency, but you had more than 600 disqualified that were further to the left than him. imagine that in the soviet union, for example. only members of the central committee were allowed to run. cheryl: you have told me it is the economic story. it has always been the biggest issue in the middle east for men that do not have jobs. at the same time, this new leader is being built. do you buy it? cannot i do not buy it one bit.

he went back to iran when the solution came about. he was allegedly the first person to call. he has been part of the elite for quite some time. he is a very clever man. i think the leadership will not hesitate in their quest to become a nuclear power. cheryl: we knew him years ago as a nuclear ago shader. there is talk. they would love to see it turn around again. they want to open up the business relationship. >> of course they do. they are desperate. they are desperate to get the economy back on its legs. it is going to be, we will have to see what will really happen. cheryl: you were very concerned about this weekend and what may

be happening in egypt. what are you hearing from your sources? >> today we will see the beginning of a series of demonstrations. he won the election by 17. the u.s. government s making a horrible mistake in supporting the muslim brotherhood because he was elected. democracy on supporting the culture of liberty leads to tyranny. cheryl: michael, i want to get your take on that as well. is washington saying the boat here, do you think? >> i really do think washington is missing the boat it is not surprising that the muslim

rutherford wwuld win elections. they can promise people the world. the biggest tragedy, however, is if we consider them too big to fail. once and for all, we can dispense with this notion. it would be an important lesson for many in egypt and ironic to learn. cheryl: gentlemen, thanks to both of you. >> thank you. dennis: it is what is bugging me. tell us whether it is but you. our government college loans the next big government meltdown. cheryl: find something new or start hitting up the savings account. the cost of morning fixes. dennis just drinks red bull.

♪

♪ tracy: i am tracy byrnes with your fox business brief. the fda along with the authorities in nine countries took action against more than 9600 websites.

depending online sales rose to the highest level in more than six years. pending home sales index climbed from april. the rise in mortgage rates has prompted would-be buyers actually move. soaring to the highest level in two years. the average rate is now 4.46%. does mark bridges weekly increases since april of 1997. that is the latest from the fox business network. giving you the power to prosper. ♪

dennis: bond investors are running for the exit. prices have plunged.

this follows the ten year treasury pretty closely. look at how much it is down in the last three months. a wealth manager out there in oregon says all of this bond bubble talk is exaggerated beard now is the time to invest in treasuries. thank you for being with us. go ahead and make your case. >> well, dennis, i look at it as what we have as a very reasonable market. we have not seen anything like a parabolic move. when you look at the incoming data, the treasury market this year for the ten year is down about 10%. that is after a five-year period

appreciation of about 20%. if you are talking about numbers like 100 or two hundred, that may be a bubble. dennis: we started with it at 1.78%. now it is at 2.55. up 40%. that does not strike you as a bubble? >> remember, it is a 5% move in price. if you look back historically at the worst period of time that i have had in my career, you have the ten year go up 45%. i am not saying that people should run out and buy the ten

or 30 year, though bill gross said he considers much of what is going on a panic. when you find somebody who is in a panic, you should yell at them. i will not yell at you dennis. this is my version of yelling. people should keep calm. in your bond portfolio, make sure that you have diversification between corporate, boortz backs and other forms of bonds rather than just focus on the 30 year treasury as your benchmark. dennis: we were looking at some bonds. miller, good day to you, sir. thanks a lot for being with us. >> thanks a lot, dennis. ♪ cheryl: it is time for your west coast minute.

because of dry weather and water cuts, california farms may be in trouble. a region that had been in economic recovery. the dry conditions could have a disastrous effect on that economy. record breaking heat is in the forecast for arizona, nevada and california. temperatures could reach 120 degrees or higher in desert areas. extreme heat can cause illness and sometimes death. residents without air conditioning especially vulnerable. a degree could be offered, drone studies. jobs in the area of unmanned surveillance are expected to increase over the next five years. now executives and officials want to figure out what programs need to be created to keep up with student interest and

demand. take that, stuart varney. dennis: didn't we used to call them toy airplanes? lets go to the new york stock exchange and mark newton. >> 5,000. wow. the market is doing well. the third straight day of rallying. the entire second quarter will blog about 3% of gains. it is interesting. if we finished down 1%, we will break the string. it has been largely defensively lead. we see utilities,.com, consumer staples, healthcare. these are not the groups that you want to see lead the confidence and a lot of that is

just month-end seasonality. dennis: thank you for being with us today. mark newton. >> my pleasure. cheryl: the price of your coffee may be climbing. let's start with gold. >> keep talking about stimulus and all of that stuff. and actually seem to be affecting the silver market more than gold. the tapering was very bearish for gold. trying to talk up the market a little bit. give it a little bit of a bomb. coffee, which could not get a bullish story to save your life, is now going up in a multitude. there is a fungus, believe it or

not. there is a possible strike in columbia. back to you. cheryl: worth every drop. dennis: you have a problem. this is an intervention. books printed in english have a global's bill. details ahead in our media minute. cheryl: telling you about a company working on, believe it or not, how to pay things on your first trip to the planet. ♪ nouncer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're arby and ready to help. so when i have questions,

i can talk to someone who knows exactlhow i trade. because i don't trade like i trade likee. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

♪ dennis: in today's media minute, u.s. publishers are conquering the rest of the world. the association of american publishers just out with a study this morning. the numbers are looking at. overseas revenue for u.s. publishers get $833 million. look at what is really driving that growth. now it is break down where the growth is occurring. highest growth markets last year were the filipino united kingdom, france, columbia. germany had the greatest growth in e-book sales last year. indeed the strongest economy in europe. asia, a thriving market. the trade group says that u.s.

language books are about business. cheryl: you may be going to mars a little sooner than you thought. at least paypal think so. the ebay owned company is working on a plan for in space payment. a thing called paypal galactic. it may sound like paypal is getting a little ahead of itself. the first space hotel is expected to begin orbiting our planet in the next few years. okay. i do not want to laugh at it. dennis: student loans. are they the next big meltdown question yes. greg says with this revelation, my son received a message in his inbox that he had about $30,000 of government money waiting for

him. never asked for it. bill said you are absolutely correct. i find it interesting that most college loan debt is tied to state and community colleges. control the problem on the cost side. two it is fueled by that. cheryl: a lot of responses on this one today. dennis: 20% default rate. i do not get it. cheryl: i think we are falling behind in education. dennis: it is not the federal government's responsibility to make sure you can go to college. cheryl: we are could take a quick break.

dennis: noted gold all of next markets now.d adam. ♪ who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't chaed much is the oicial retirement age. ♪ the question is how do you make sure you havthe money you ne to enjoy all of these years. ♪

when you do what i do, toiyou think about risk..rs. don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smther ride. find out why 9 out of 10 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 princil.

>> welcome back to "markets now." >> down to the wire with one more bul bold trading day left n june. breakeven for the month, believe it or not. i look at why he doesn't see the fed tapering anytime soon. >> stop the bleeding. standing his ground ahead and make a case for a bully and

bounds. lori: forcing buyers off the fence. mortgage rates climbing to levels not seen in about two years. >> had we have all been there taking in unpaid internships to get your foot in the door but did you ever think about suing the people who gave you that internship?çó john stossel with choice words for the fed up in turn taking their office grievances to court. another positive day on the dow. nicole petallides on the floor of the new york stock exchange. we are in the green, will we stay there? nicole: so far so good. just take it for what it is. a couple of things worth noting. helping to get the wind back for e