connell: a novel idea. very well done. agencies bugged eu diplomatic offices. getting the u.s. ambassador to explain this breach. we will be talking about it with steve moore. also this morning, or then 400,000 commuters looking for work in the san francisco bay area. shut down by striking workers. we have a new government imposed schedule for truck drivers.

some truckers are very angry about this. the new regulations will strangle smaller companies. government officials, though, estimate these changes will save lives and prevent 1400 crashes every year from tire drivers. we also have gas prices now $0.12 a gallon higher than where they were a year ago today. voting to raise the excise tax to $0.39.05 a gallon. we will be talking about all of that as we get going here on markets now. ♪

connell: good to have you with us here at the top of the hour. before we get to steve moore, let's get to the markets. the goal that 15 minutes. a pretty good start to the week. nicole: there is a lot going on. we have a rally underway. almost one full percentage point. the tech heavy nasdaq, the best of the bunch. up 1.3%. the last few weeks have been extremely volatile. the dollar is virtually flat going forward this week. after the fourth of july holiday

, there is a lot of volatility. a lot of up arrows, that is for sure. connell: elected to these reports of european spying. steve moore, the senior economics writer at the "wall street journal" joins us now from washington, d.c. this all goes back to edward snowden. does it hurt our diplomatic relations? >> one of the things that we are not realizing is how big of a breach of security this has been. it has ripped wide open a lot of our espionage and spying tech

geeks. i want the u.s. to use whatever means they can. the real link here is to our relations with the europeans who are absolutely extremely upset about this information coming forward. connell: that is what i thought the big thing was about china. listen, you have to stop spying on us. stop these cyber attacks. that is probably, i would think, our most important bilateral information. if news like this comes out, it is not the news that shocks us

necessarily. you are not saying they are going, oh, my goodness they are. >> look, we know a lot of these terrorists networks are grounded in europe. we know that. i was not too surprised to learn about this information. let me circle back to china. talking about trade relations with europe. what is going on with snowden right now and the fact that china has not been cooperative is a big problem with respect to our economic relationships going forward with china. this is not a small incident. china has become our major trading partner. i think there will be some blowback because of this. connell: that is what we will probably focus on longer-term.

this is very interesting. the first one said putin is saying russia will never hand over putin. then, putin says, oh, okay if snowden wants to stay in russia, he must stop his work aiming at our american partners. i do not know how the russians light into all of this. >> i think it is outrageous. they should hand him over. he is a criminal. he is someone who has put american lives in great danger. the fact that russia is not cooperating, i think it is outrageous. this has big implications for our relations going forward with russia. they are supposed to be an ally of ours, for goodness sake.

even if he agrees to not do anything else wrong, he has to be extradited and he has to be put on trial for the crimes that he has already committed. connell: just in combination, those two headlines, it is ridiculous when you put them both together. >> i think he has done plenty of harm already. connell: yes. exactly right. steve, great to talk to you. steve moore of the "wall street journal." today is the day for student loan interest doubling. peter barnes on the story abc joining us now. peter: this comes from our quays

capital. drawing new attention from the government's unique accounting method of student loans. making a big profit for the taxpayers. a profit of $159 billion for taxpayers by 2020. that forecast assumes -- even the cbo acknowledges in its report that the official accounting method does not take into account real-world risks. including those that the taxpayers could lose $50 billion on government loans over seven years. analysts are also concerned about the likely increase in the number of students that choose to make the payments based on a percentage of their income. does forgive remaining that after a certain number of years.

altogether, that will likely raise cost to borrowers over time. >> it changes the debate about policy and subsidy and surplus. people want to make claims about how much money we are making on student loans. peter: this debate is being played out back on. maybe to make increases doubling. back to you. connell: that will be something to watch. peter, thanks.

let's get back now to the markets. it was a volatile month. a very good first half of the year. the best, in fact, that we have seen since the late 90s. we have had some good economic data. this, although it is a short holiday week, you have been relatively optimistic. tell us why buy stocks now. >> the second half of the year, from an economic standpoint will be better than the first. we think it is largely because of the negative affects from the fiscal cliff policies.

as we get into the second half of the year, we think those washington related issues are fading. what is taking place now is the increase in stock prices, real estate prices, they are starting to filter through. three quarters of us own homes. or than half of us own stock through our retirement programs were college savings programs. that is starting to fuel better consumer confidence. we think it will drive better consumer gdp. connell: we were all trying to interpret some kind of said speak. what he means is rates will go up. they will stop tapering. we are all trying to put words in people's house. i noticed to your answer, you are just taking that out of the equation and focusing on the

economy. >> we added to our equity exposure two weeks ago. in our view, the source of the communication is the fact that the federal reserve is making a decision that is data dependent. the present economic growth with sizable jobs. the fed will keep the accommodation in place. connell: they may have to take some of that away. >> exactly. but that is a good thing. the economy is growing strong enough. we are ready to pull the accommodation. the equity market should grip on that. the fed is ready to normalize policy. connell: you say rip on that. how much more? >> another ten or 12%.

1750 on the s&p by the end of the year. connell: thank you. jack lew concerned about cyber security. we were talking about that a moment ago. staying tough on the chinese. we will tell you what he is saying. that is coming up. we also have the insider trading scandal. scotland is expected to offer a guilty plea. and more of these incredible pictures coming out of egypt. millions of people flooding the streets. calling for the resignation of the president there. we will have more on it later this hour. the oil prices shooting up more than 1.5%. more to come. ♪ [ male announcer] surprise -- you're having triplets.

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connell: markets now continues. we talked about the jobs report on friday.

we are back about 15,000. let's talk to nicole about citigroup making a big payment to fannie mae. nicole: all of the financials are doing well today, connell. they are paying fannie mae close to $1 billion. this is to resolve potential mortgage repurchase claims. it was between the years 202,012. as been flagged the entire financial industry. citigroup is now just tried to take care of business and remove one wildcard. you can see that the stock is doing well today. much like many of those financials. connell: we will get back to nicole as we stay on top of this rally in just a few minutes.

be thankful you do not work in san francisco. workers are striking in the bay area. all of this after talks between the areas two largest unions and management failed to agree on a new contract over the weekend. it is just a mess out west. then we have the china threat. the u.s. will keep the pressure on beijing. we are talking about this a moment ago. chinese cyber theft responsible for the loss of thousands of dollars in intellectual property. next week john kerry and jack lew will be with their counterparts in china. as we approach the busy holiday travel week, good news for

drivers. gas prices quietly on the decline. those are your new numbers. we are still paying more at the pump compare to this time last year. the dollars $0.48 on average. the protest continuing. millions in the streets in egypt. they want regime change there a year after the election of morsi. we will have a perspective on that. temperatures topping 120 degrees in some areas. we will tell you where people may see some relief from that heat wave. some look at currencies and how they are faring against the dollar. we will be right back on markets now. ♪

♪ >> 23 and it past the hour. i am jamie colby. this is your fox news minute. more firefighters going to battle the firefighter in arizona. nineteen firefighters were killed yesterday. the blaze is still 0% contained. 85 miles north west of phoenix. president obama says the u.s. is still evaluating an article alleging that u.s. buying on european allies that the u.s. bug european union offices in washington and new york eavesdropping on diplomats. putin says snowden needs to stop leaking u.s. secrets. the pilot of a helicopter in new

york city landed on the hudson. he activated flotation devices and landed safely on the river yesterday right side up. they were all rescued by boat with no injuries. miraculous. those are your headlines. back to connell. glad to and on that happy note. connell: a young guy. think you. jamie colby. the day of reckoning for scotland and did expected to plead guilty for securities fraud. >> one count of securities fraud. he faces up to 20 years in prison for his role.

it netted $1.3 billion for a friend that he relayed tips to. scott london got about $60,000 cash and tips. scott london has publicly confessed and he has apologized for his role in this scandal. it should be noted that he worked for about 30 years and made his way up through the audit ranks. now he faces 20 years in prison. he will plead guilty to one count of securities fraud. connell: something to follow throughout the day. thank you. the latest situation in egypt.

they are demanding regime change. we will have mike baker talking to us next. we will see what this means. we will stay on top of it. some good numbers out in the economy. we have moved back into expansion mode. that sets us up today for what will be a very big and important week for economic numbers. we will be right back. ♪

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$1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when y call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay a cent. order now and also get this shredder to keep your documents out of the wrong hands-- a $29 dollar value, free. get protected now. call the number on your screen or go to lifelock.com to try lifelock protectiorisk free for a full 60 days. uspromo de: gethelp. plus get this document shredder free-- but only if you act right now. call theumber on your screen now! connell: billions commanding change in the streets of egypt.

mike baker will tell us what it all means. manufacturing numbers have come in within the last half hour. jeff flock is straightahead. white house down. a huge disappointment at the box office. speaking of numbers, pretty good at the stock market. another round of stocks now. nicole has apple making a move. nicole: we watch it go from 700 to below $400 a share. raymond james talking positive about apple with a $600 price target. the i walked. they are moving ahead with the

plans. what is all interesting is they are having the phase two. raymond james are really digging their heels. we will see whether or not it gets there. connell: thank you. the latest on egypt in the countrywide protests taking place there. with pictures from cairo. a 48 hour ultimatum to solve the crisis. mike baker, former cia operator joins us now. amazing to see these pictures yet again from egypt.

the guy they put in is not the guy they want out. >> the absence of u.s. foreign-policy comment or influence. we have realll lost our leverage in that region geared the previous protest were more about inability of the average person on the street to buy bread then they were about self-determination. what we are seeing now is they are upset about an incredibly bad economy and no public security. connell: it speaks to the stability and region. we are seeing the default today. more volatility and that would

tell you that people are worried, obviously. that is not a surprise. maybe it spreads to other regions. are you worried, in terms of geopolitics, any other affect of this? is there something else who shhuld be worried about, in your view? >> we definitely need to be worried about this. the chaos that is spiraling down into egypt, i mean, look at this. it was just a year ago. suddenly, people are realizing

things are not getting better. the expectations were there. you always have that danger. it never addresses the fundamental week this is in the economy. connell: we do not have that much influence. nobody was making argument that he was a good guy. he was an ally of the united states. we have no leverage to speak of. we are not a player in that region anymore.

it does not seem to be giving much credibility to the u.s. we almost seem apologetic. somebody has to be at the top. somebody has to take that role. connell: thank you, as always. mike baker. this i sm manufacturing index started us off on the right foot. it beat estimates. reversing its the client for may. that is part of the picture. the market is partially up for those reasons. we have jeff flock with this story. jeff: auto engineering is the place. they make all sorts of things.

i am really thrilled to be joined by tom roser. he runs this place. you buy houses and rehab them. not just to make money, but you want the town to look better. >> i want the town to survive. jeff: let's put up the numbers. does that reflect what you are seeing? >> 2008 was our record year. jeff: look at all these people. can't you do this cheaper in china? >> i do not think we could do this cheaper in china.

there are elements that we do in china. the things that are unique, the things that have a very demanding application, we do those here. our responsiveness can be much greater than offshore. jeff: a lot of people are finding that out these days. 550 employees. the employment a little bit down. when you think about america, we have the highest tax rate in the world. even if you make no money, we keep getting these regulations. it can still be cheaper to make it offshore. back to you. connell: a great report. that was jeff flock. today is the day.

cutting 12 hours off the maximum workweek for truck drivers. the idea is to reduce the number of accidents caused by tired drivers falling asleep behind the wheel. the truckers who are opposed say this will already burdened the truckers. we will get the latest on what residents expect for release. heat. extreme heat. up 147 right now. a big week of economic data including the jobs report that

does come at the end of this week. friday is no full day. the successful monsters movie. it scored a big win at the box office this weekend. "monsters university." i do not do movie reviews. my 8-year-old daughter loved it. she does not think much of treasury yields. we will show you your 30 year in a moment. we will keep covering the markets rally. ♪ clients are always learning more

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♪ >> a federal appellate court has thrown out the class status against google say the district court should have determined the merits of it. certifying its class would have allowed the authors to pursue the lawsuit as approved. investors are singing the praise of pandora. morgan stanley says pandora trails facebook and google and monthly consumer usage and is the netflix of radio. jefferson county, alabama has found a plan to end the largest municipal bankruptcy by the end of this year.

the county owes $4.2 billion. that is the latest from the fox business network giving you the power to prosper. ♪ with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses 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 les on every purchase every day. told you i'd get half. what's i your walle please sir, i want some more.

more? he has asked for... what? well he did say please... please and thank you. pass it on. connell: no relief for southern california and the southwest. power grids have been strained. dozens of people sent to the hospital. >> the weather much different than we normally see. in los angeles todaa, it is supposed to be in the 90s. today, we are also feeling a lot of humidity. you just do not get that in southern california. it is becoming very dangerous. 117 degrees and las vegas.

and that valley, it was 128 yesterday. it will only hit 125. we heard of people that were on vacation in vegas who rented a car and drove about three hours to death valley to say they were there on one of the hottest days on the record. we also know that there have been some people that have succumbed to the heat. namely the elderly. they talk about how warm it is. how difficult it is. take a listen. >> the temperature goes up, the relative humidity will lower and any time that you do get that extremely hot temperature with dry air, relatively dry air, especially throughout the mountains. the fire really builds with the hot air.

>> of course, a very difficult fire season. last night, we lost 19 firefighters in arizona. you do not see as many people in the outside cafés, for example. it is a win and lose. connell: adam, thank you. reporting from l.a. before we get to the market rally that we are covering, you do wonder how long this heat wave can last. we want to try to find out about that. >> a couple more days, unfortunately. as we head into thursday and friday, the heat will be trimmed. i do not have any good news for the fire northwest of phoenix. temperatures today in the middle 90s.

the real crucial thing is the wind will get a little dusty in the afternoon. unfortunately, the fire danger will remain high. thunderstorms started the fire. now we have moisture stock underneath. you can see that clockwise rotation. that is why they humidity is a little high. not only do we have the heat today, there will be isolated thunderstorms around. things will be getting better as we go throughout the week. connell: we are off to a great week here. the first half was very good, despite last month being rough. what about the second half? can it continue.

we think the second half will continue to add a little bit higher from here. certainly. we are still above some key critical work. there is a lot of its underneath the statement. i think what we will see in the second half is get inside of a range. down between 161650 on the s&p. we will stay there as the market tries to decide what the next move is. connell: a good signal on the economy. more throughout the week. we will check back in throughout the day. monsters university with continued success at the box office over the weekend. dennis kneale joins us with the media money report.

let's look at some winners that we are seeing on the nasdaq. on a day like this, it is an easy list to put together. we will be right back with markets now. ♪ the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it al is a surprisingly low price -- just $7.. in fact, fidelity gives u lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an aount.

connell: markets now on a big of day for the markets. here is a quick sports day for you. brazil. winning the third straight confederations cup.

the game was played in brazil. spain has not lost a competitive match in a while. they lost yesterday easily. my favorite athlete now in the world is that guy. fred. yes. fred. in brazil, they go by one name. they have a guy named fred and he scored two goals. all right. the weekend box office. a monster, milestones and a flop. dennis kneale is here with some winners and losers for us. dennis: five films. the monster was disney's pixar "on sirs university." $46 million.

the disne franchise reviving. fox's female cop movie "the heat" taking second. they paired in a beauty and beast buddy film. the second nine figure flop. white house down placing a dismal fourth at the box office. bringing in less than $26 million. joining will smith's after earth. white house down getting squeezee from above and below by two other action flicks. world war z and man of steel. half a billion dollars

worldwide. half of it in the u.s. connell: i do not know why i get a kick out of that. i solve monsters university, by the way. my daughter loved it. dennis: it opened in only a few markets overseas. it brought in $40 million. far more than they expected. they are going up against the lone ranger. they will kick his but. it will make a lot of money. connell: that is the next one my kids want to see. dennis, you have more. you are flying solo next hour. tell us what you have coming up. dow fireworks ahead of the fourth of july holiday. the rally is 152 points higher. that is fireworks territory. he will host a bear. charles payne will join him.

let's see if they can accomplish that. markets now continues and so does the market rally. ♪

♪ dennis: i'm dennis kneale, and we have a rally, baby as we start this july 4th independence week with a bang. we have a fire cracker bull-bear debate. oil prices rise with protests rocking egypt, potentially bad news for drivers, but how to make money from it. russian president putin turning on snowden saying the guy needs to find another country to go to. we got top of the hour stocks now every 15 # minutes, nicole at the floor of the new york stock exchange, an i like green days better than red days, nicole. >> that's right. if you're a bull, 401(k)s and irsa, you want this action.

a big day; right? dow jones up 160 points, not too far off from the highs of the day. the nasdaq up a full 1.5% at this time. the dollar's pulling back a bit, and commodities are looking good. financials have been leading the way as well as tech. that's good news overall for the market. i definitely have an important story today pertaining to news corp. and 21st century fox. obviously, today, watching the split. news corp., the publishing asset's 21st century fox, entertainment assets, they begin trading and the nasdaq similar nwsa and the other is foxa. they receive four shares in what is now 21st century fox. watch the names closely. the parent of fox business network. back to you. dennis: thank you very much, nicole. the dow and s&p coming off the

best first half since the late 1990s despite increasing volatility and fed tapering fears in two months. we have charles payne and schaver management asset joining us now, and, dan, had a great first half, but you're near to kill the buzz and why we're headed downward. >> this is it, july 1st, first part of the month, money's coming in, looks great, time to get out. there's nice gaps today. dennis: dow at 1572 #, where does it finish, dan? >> probably below 13,000, maybe 12500. we get rumbles coming in here. gold is telling us that something is inherently wrong in the economy, and charles, you know, and dennis, i talked about deflation their depression on the horizon, it's developing, look at the soybeans, corn, lumber, we now saw a selloff in gold. nos over yet. dennis: you had your fill -- full buster.

why is he wrong? >> he makes great points, but ultimately, the problem is when people say the market's going to crash, get out of the market, i think it's been a huge disservice to people out there, you know, potential investors who missed the rally. i like to look at individual names. i don't think it's over valued based on historical met tricks, potential, and agree i think america's economy is the greatest threat to the rally, but i think it's a huge mistake to write off american i think newty, innovation -- >> hang on. you say america's economy is the biggest threat to stock, sounds like you fall into the guys, the bears who say all the stock rise of shares is pure souffle, all fed, no strength. isn't the u.s. economy healing, charles? >> it's healing. you know, you'd hate the way it's healing, but we get a cut, a scab, we're okay weeks later. this is a long slow healing.

dennis: bed sores. >> what helpedded the stock market is the global growth in the world. i don't think it's been this prosperous. there's a lot of, like, things happening around the worm. it's growing pains whether it's brazil, indonesia, turkey, but these are success stories. places where you tell america about a country, and first thing are dirt roads. that's driving the stock market, whether it's ibm or apple. dennis: dan? >> gdp, 1.8%, they expected 2.4-2.5. you can't grow at 1.8. >> that's right. >> interest rates staying low. >> that's the american economy. >> the fed's balance sheet, the amount they talk about, swaps we don't know about, but matching the balance sheet of the fed with the stock market from 2009 until now, you got a beautiful input from the fed that created the bubble in the stock market. >> i'm glad you brought that up.

explain to the audience if the fed buys $85 billion worth of junk assets, how do they get in main street's pockets? every time we get the numbers -- >> the money is going into the stock market through the banking system so that the banks can shore up the balance sheets. that's what the fed is doing. >> banks buy stocks? >> the 85 billion, they are not giving it to main street. >> they are not. >> but who they need to help. who's risky now? it's the banking history because the velocity of money, and we talked about this a lot. money is not moving, and they stopped in 2006 during the bush administration, publishing the m3 which is more of the important number in money supply growth than any other number, and it's not growing. this is what i believe that the federal reserve. dennis: tell me the deflation their fear part, how is that deflation anything when the supply of dollar created by the fed tripled since the meltdown? >> debt se faults all over the world in u.s. dollars, and they

are trying to replace the defaulted debt. that's why it's not working. dennis: okay. >> that's very, very clear. dennis: i think both of you guys because you're so far inside the market and know arcane thing and spreads and money flows, go outside the market and go back a hundred years where stocks predict earnings. isn't it true, overall, the economy is better rather than worse? mending, not growing fast enough, charles, but doing things we hoped? >> moving in the right direction, people are spending money, savings right is 3%, people are spending money, the money they have, but -- >> not in the last gdp report. >> if you talk about just basic, you know, regular stuff, regular people, you know, i tell people all the time. we talk about con agra thursday. peter pan peanut butter, slim jims, it's not rocket science. they buy it all the time, pricing power, people don't care, raise the price, they buy

it, bottom line, and that's the simplist way to put it. dennis: we have to wrap. dan said the dow now 15,000 will be at 1200 or 13,000 by year end. i think he's wrong. where by year end? >> touch 16,000 this year. dennis: we will be. charles is right, dan is wrong. bye, bye, results are in. great job. >> okay, thanks. dennis: latest from egypt with a second day of mass protests underway in tahrir square. the country threatening to intervene if they do not stop in 48 hours. protesters in cairo stormed the herdquarters with the party with as many as 14 million people gathering. 14 million people. we'll see if that's the typo, the largest scene since the 2011 uprising that overthrough mubarak, at least 16 people

killed including one american. large protests reported in at least 20 # towns around the country which could add up to 14 million. i wondered if it was one site. that seemed a little much. oil is boosting on the back of the protests in egypt. egypt is responsible just under 1% of the world's oil. kevin book of clearview energy partners joins me more with his outlook. kevin, u.s. oil production up so much, we'll make more than saudi arabia, and i was waiting for a time when this fear could no longer impact prices. >> well, dennis, there's room for fear because of a couple things. egypt is, as you say, a net petroleum importer, not a big factor in the global market, but the suez canal has 2.8 million barrels passing through a day in what the world needs, there's 96.5% capacity, that's a big deal. on the other hand, the suez canal stayed open in all that happened before because the suez canal is big business no matter who runs it.

fears may be over played. dennis: and the investor looking at that, if they wanted to get in on this, they should buy now or sell? what do you do if the fears are over played? >> coming from the summer, there's softness in crude. right nor, crew is resilient in the face of gold. it's the ratio of gold, the crude went from 20 # x to 15x if you price the way the markets do, but, look, it's changed here. it's out gunned, demand issnot keeping up. the market looks softer. we'll see oil go down into the eight handles by the end of the year, and 89 for calendar year 2014. dennis: woah, oil, towards a hundred dollars on fears and over 90, you see it down below 90 into an eight handle on that? doesn't that basically have a bonus for the growth of a economies that buy their oil from elsewhere?

isn't that a bonus for the u.s. economy? >> it's going to be a bonus for the u.s. economy for a while longer because we're net importers, but as we pry's, we're number three oil producing in the world, that's money coming out one day. for now, though, yes, a bonus, boom to the bottom line of every importing economy. the problem is we are getting efficient so that used to unlock demand for oil and things rebalanced. it's not unlocking demand as fast so oil lags. >> now, there's a wonderful met trick that if a gallon of gasoline in the u.s. is down a dollar, that is creates something like a couple million jobs and a hundred million in purchasing power, but we often don't see oil's price lee clines work at the gas pump because of the processing problem, not enough refineries. when will we fix that here to get more of that elasticity? >> well, to fix the problem, we have to think about the crude oil in how we think about everything else which is we want to match the best of what we got with the best of whatted world

offers us with free trade. we're not there yet, dennis. we can't export crude so we have the wrong crude for refineries for years to come unless we abandon investments we made or make more expensive ones that don't lower the price of gasoline. dennis: thank you very much, kevin, well done. >> thanks for having me, sir. dennis: what's bugging me? obamacare. specifically this page one story in the "wall street journal" this morning, and insurance costs set for a jolt says healthy young consumers could see insurance rates double or triple when they look for individual coverage under the new law later this year. now, in one example, a 40 #--year-old nonsmoking man in virginia now pays almost $63 a month for a stripped down health plan, and he's off to pay $200 when obamacare kicks in. that's triple the old costs. you call this an improvement, mr. president? remember when obamacare was supposed to bend the cost curve

downward? government never does that. in 1965, the first part of medicare passed projected to cost $9 billion a year by 1990. the real cost? not $9 billion, but $67 billion, a seven-fold difference. now, president obama passed this monstrosity when so many presidents before him failed. why don't we hear president obama talking more about the signature achievement of the presidency? because even our president knows the truth that obama care shapes up as an unmitigated disaster, the costlyist, screwyist program in decades. treat me your thoughts. elsewhere, the first billionaire to come out of new york city's tech silicon ally, and if you watched back in june, you, too, could have made big money on his company. we'll show you the proof. student loans double beginning today, but peter barnes is live next in washington on why taxpayers may be making up a

bigger tab. why cable television stocks are hot again. cable cowboy's plan ahead in "media minute," and like every day at this time, let's look at metals. ♪ the boys used double miles from their capital one venture card

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win! what's in your wallet? >> that green makes me happy, a quarter after the hour, time for stocks now, and we are going to nicole on the floor of the new york stock exchange looking at pandora. >> dennis, looking at pandora at a two-year high today, positive comments from morgan stanley helping pandora along, stocks up two and a half percent, but hitting a two-year high earlier today. morgan stanley raised the company to an overweight, and they did this rather than $24 price target is because they believe that pandora really is competitive for radio dollars, so they are on equal footing,

obviously, in the game, and pandora joinedded net flex as a strong concept consumption. they think they can begin to take meaningful share of this market, and those radio dollars are all important to each company, and they think pandora gets in that for that. back to you. dennis: thank you, nicole. the high costs of higher education, a new report showing that student loans could cost taxpayers a hundred billion dollars over the next seven years as congress failed to come to a deal by today's deadline doubling student loan rates. peter barnes is in washington, d.c. with more. peter, i thought if all the students paid back the loans, no problem. how is did this costs taxpayers a hundred billion bucks? >> because a lot of them may not pay back their student loans, dennis, and this new estimate is drawing new attention to the government's unique accounting method for student loans shows them making a profit on the program. in june, the congressional

budget office estimated the loan program earns a profit of $159 billion for taxpayers for 20 # 20. that forecast assumed the doubling of interest rates on some loans that occurred today, but even the cbo acknowledges that the official accounting method, the so-called scoring that they do down here, does not take into account real world risks like higher student default rates in slow periods, tough economic situattons like the last recession. cbo estimates that including those factors, the federal student loan program loses 50 billion over seven years, and analysts are concerned about the likely increase in the number of students who choose to make their monthly fames based on a percentage of the income. those programs forgive remaining debt after a certain number of years so then a long comes barclays capital in a new report saying that if you wrap all of this up with some other proposals that congress is

considering right now, that will likely raise the costs to borrowers over time, more driven into these percentage income programs and debt forgiveness, and that will cost taxpayers a hundred billion dollars. >> the department of education's estimates right now are probably far too conservative for the number of students that are going to sign, as far as the number of students who sign up for this option. as median incomes remain stagnant and level of student debt increases, more and more people become eligible for the programs. >> now, senate democrats and house republicans are in a standoff about how to move forward on the student loan programs so next week senate democrats, after they come back from the 4th of july recess, plan to put legislation on the senate floor to extend low rates for some loans for a year to buy time to try to work out a compromise. dennis? dennis: thanks, peter barnes.

ng a trillion dollars inu're liability, 400 billion in new loans, and a 20% default rate. meanwhile, no end in sight in the western heat, live in california where they are roasting. speaking of hot, a line was written when cheryl was anchoring with me today, his name is rich, the first tech startup billionaire. ahead, how you could have profited with him by watching the big noon show on "markets now," so there. here's how the world's currencies fair against the u.s. dollar. ♪ ♪

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>> 23 minutes past the hour. hi, everybody, this is your fox news minute. san fransisco commuters coping with yet another transit strike. the two biggest unions of bay area rapid transit went on strike at midnight asking for a 5% annual raise over the next three years. the last bart strike lasted six days back in 1997. a new york judge tossing out three underage sexual abuse lawsuits filed against the former elmo actor, kevin clash. clash resigned from "sesame street" last november and the three plaintiffs waited too long

it follow. one lawsuit is still pending. the out of control fire in arizona quadrupled in size after an elite teem of 19 firefighters killed yesterday in what's called the deadliest wildfire fighting tragedy since 19 p # # #. it's fueled by dry winds and triple digit temperatures. the blaze, 0% contained destroying 2 # 00 homes, 85 miles northwest of phoenix. those are the headlines. i'll be back in an hour. back to you, dennis. dennis: thank you very much. southern california in the southwest looking at another day of triple digit temperatures, extreme heat warnings in effect through tomorrow for many areas, and fox news has the latest from los angeles. adam? >> yeah, dennis, doesn't look warm because of the sky, but we don't get humidity here in l.a., and today is humid day, and if you drive in any direction, you get more heat. in fact, inland empire and towards the high desert, that's

where the temperatures are really spiking, and, in fact, we just got word in today the temperature yesterday in death valley broke a record for june, 129 degrees yesterday. they original said 128, but the official announcement doesn't come in into the morning with the computer information. 129 yesterday in death valley, a record. again overall record for the hottest day on earth was 134 back in 1913 also in death valley. these temperatures are difficult for a number of reasons, not only health reasons, but also they continue on for a number of days. we talked with the national weather service explaning the heat wave. >> it's prolonged, lasts many days, and when that happens, it's just very -- the longer it lasts, the more stressful it is on the entire environment, and livelihoods of people it impacts. >> meantime, the temperatures in yarnell arizona losing 19 firefighters yesterday, tough

conditions, 93 degrees, winds could gust up to 18 miles per hour. it's already tender dry across the west as we've seen with the fire season extremely busy due to the drought, and now there's hot temperatures. a tough scene there. they may get rain and thundershowers tonight, i don't know how much rain it brings, but hopefully enough to help them there. dennis, the business aspect of this in california, some people, growing up in a grocery store, hot temperatures are good because you sell ice, sodas, cold beer, that kind of thing, but outdoor cafe, and others who deal with the outdoors when it's hot, people stay in. malls might do well, you not the places here along the promenade outside in l.a. might not do as well, depending how hot it is during the day for sure, dennis. dennis: extra points to do it outside in the sun. i would have been looking for ac. thank you. >> i'm going to put on shorts in a minute, dennis. dennis: okay. we have the fox business summer time show down every friday pitting two stock pickers

against each other, and this past friday rob morgan went toe-to-toe. take a look at how they are fairing today. looks like jim is in the lead, but there's a long way to go. we track the stocks for a month before we crown a winner. now, this friday, matt mccor mic of ball and gainer dukes it out with robert luna. when matt came on back in may of last year, he was hot on mcdonalds. >> if you look at people trying to deal with everyday value purchases, the whole family can be fed for less than ten bucks, and i think it's a situation where you also looked at seeing a rising dividend yield, and if you go through uncertain times like last year, mcdonalds was the few performing stocks that was up, and it's something that gives safety in a downward market. dennis: up 10% from many we recommended. that's a lot of french fries, but the market is up around the same.

we have to look at that, but let's hope the streak continues and who comes out on top? tune in here at noon eastern here on fox business friday. new york city's silicon alley where internet and tech companies are concentrated celebrate the first startup billionaire. i love the celebration of wealth, guys. the shutter founder became a billionaire as his shares hit a record high thursday. you could have made big money, too, by watching. part of the new idea series right here on the big noon show of "markets now." >> this here looks great, coming out with about 50 million in revenue, 20% even margins, and growing, as i said, at 35%. all businesses in the world need images to do everything they need to do every day. dennis: shutter stocks, shares right now, more than tripling since the opening last october. ain't that a nice story? good for him. all right. nsa leaker edward snowden stuck

in limbo in moscow airport as european leaders are outraged over the claims that the the u.s. spied on them too. insider trading at kpmg, scott london expected to offer a guilty plea for securities fraud, and liz has those details. meanwhile, today's s&p winners and losers. ♪

dennis: stooks now, nicole is in the new york stock exchange, and, nicole, breaking news? >> looking at how apple stock is fairing at the moment. it's breaking news that francis

antitrust watchdog searching apple offices over in paris last week according to a spokesman for the regulators, so we'll continue to follow the story here pertaining to apple, and this is over in france. i wanted to take a look aeroat some of the movers here. apple now, as i noted, still up three, three and a third percent. other names we keep an eye on, tesla, new high, watching it closely, upgraded the buy rating, $130 target, blackberry, plagued by the shipment, and best buy credit sweep, loves it with a an out performed, and 21st century fox, obviously, among the parent of the fox business network, and 21st century fox is, obviously, the head of the television fox news and the like, and also film as well, and the other division is publishing assets, so we'll watch both today. back to you. dennis: thank you, nicole. we've got breaking news, roiters

reporting nsa leaker applying for political asylum in russia after president putin need he needed a new country to go to. the european allies express outrage we bug european offices and computer networks. those documents leaked to the guardian by snowden himself. meanwhile, former cia and nsa director general michael hayden says this is what spy agencies do. >> they conduct espionage, and the fourth amendment protecting america's privacy is not an international treaty, and number three, any european thatments to rend the garments should look first and find out what their own governments are doing. >> so there. joining us now from washington, the heritage foundation's vice president of foreign and defense policy studies. gapless, thank you for being with us. what do you think of the latest turn where first, now he wants

snowden out of the country. >> if the chinese and russians don't want him, there doesn't seem to be really any intelligence value there. the ecuadorians are not happy to have him. if i make a prediction, snow you know den could return to the united states. dennis: of his own or because he's candidate napped, brings him here against his will? >> because the choices are going to be living like tom hanks in the moscow airport forever or coming back to the united states, and he may well find at the end of the day, that's the best he can do. if he's counting on international pressure to force russians or somebody else to do something, he -- here's what's obvious. he has nothing to bargain with. when you have nothing to bargain with, everybody else says the

only value you have to me is what i can get you to get somebody to do something. right now, nobody can really find a use for him. that's not a good situation to be in as essentially a homeless, stateless refugee. dennis: he has nothing to bargain with because his information is not that good or because he's unwilling to betray his country? i read he'd been planning the leaked strategy for a year. seems like in a year with security clearance you can come up with a few good threads. >> well, again, i don't think the chinese or russians would have let him go if he had something valuable, and i think there's a question as to how much really valuable information he has. look, he's made a lot of claims and said a lot of things. we don't know the veer rasety or how much is accurate, and this is not unusual with defectors and leakers and everything. you tend to want to inflate your own importance to make you a much more valuable product so you say things, but when you blow the balloon up too big,

people start to question your creditability or your value, and then your stock goes down. >> right. one last question for you, though, james. it seems like when the leaks happened, our government officials, i mean, come on, we know this. we've known this since 2006, and now it's a threat to national security, these very same leaks snowden did. was it damaging to the u.s. or everyone else in the world like terrorists assume, of course, they are monitoring stuff? >> well, i think the thing is it appears he leaked classified information. if you have somebody that publicly leaked classified information on this scale this broadly and you don't do anything about it, you say, hey, be an edward snowden, not a big deal l. that's not the environment to create. if we doarmt hammer this guy, we get more of the same. dennis: spank whether it was damaging or not. thank you for being with us. good day.

and it is the day of reckoning for mormer kpmg partner, scott london, the disgraced accountant expected to plead guilty in an insider trader scheme. we have the latest. >> this is one of the worst insider trading accountant scandals ever. expected to plead guiity in los angeles facing up to 20 years in prison. this after an fbi sting operation uncovered an insider trading scheme where basically scott london was relaying information about companies that kpmg was auditing, 14 earning announcements, acquisitions in there, given to brian shaw. now, he's already pleaded guilty to one count of conspiracy. he faces up to five years in prison, so about a quarter of what scott london faces. brine made off with 1.3 million in basically ill illicit gains m insider trading, and gave 60,000

worth of jewelry, rolex watches, dinners, concert tickets to scott london. brian shaw forked over 1.3 million back in restitutions to the government. this is a black eye for kpmg, and oversaw 500 clients for three decades. dennis: he could get 20 years or could? >> he could, could get up to # 20 years in prison for the insider trading scream where he netted just 60 grand; right? >> who was hurt here? who was punched in the face? who got assaulted to go to prison for 20 years? >> essentially, insider trading is against the law, so that's -- dennis: and has entered a guilty trade? >> expected to. dennis: 20 years? i don't know. thank you very much. >> sure. dennis: called invisible web ads, unviewed ads costing your company money. we have a fix for it coming up next with the guest, and it is the 150th anniversary of the

pivotal moment of the civil war reand -- reenacting the battle of gettysburg. take a look. ♪

♪ melissa: this is your fox business brief, manufacturing activity grew in june rebounding from a contraction in may, but hiring in the sector was the weakest in nearly four years, u.s. safety regulators close investigations into defected engine cables. in more than 346 $467,000 cars, they would issue a recall. the models are the sable cars from 2000 to 2003. the tribune company buys tv stations for more than 2.7 billion. the deal makes tribune the nation's largest commercial tv station owner. coming up on "money" at five eastern, fortune magazine editor at large is talking about whether or not apple and amazon are bullying the others out of business. that's the latest from the fox business network giving you the power to prosper. ♪

dennis: breaking news on the

insider trading kit, scott london of kpmg and liz is with us. >> entered a guilty plea, filed a guilty plea, one count of securities fraud. he does face up to 20 years in prison, and he basically faces a $5 million fine, this basically on an insider trading scheme where he netted $60,000, so this involved, basically, trading in advance of information on companies such as herbal life and sketchers, and this was an fbi sting operation. the guy who got the information from the auditor, basically, the stockbroker noticed illicit trading patterns, who contacted the fbi who wiretapped and uncovered this scheme, involving scott london getting bags of cash, $5,000. dennis: small potatoes or a big chase. >> and now 20 years in prison he faces. dennis: thank you, liz. >> sure. dennis: and gold is climbing even after ending its worst

quarter in the history of gold trading, to the trading pits of the cme with phil flynn. >> this quarter is more interesting because there's a lot of things going on, not only do we have increased geopolitical risk from egypt, but we have talks with south america mines, of course, important considering the fact the price of gold briefly dip under the price. that's put on pressure on the stocks, and could increase supplies going forward and big impact on price today. the other thing we are looking at is copper, up big, a big whopping 10 cents rally, on the good u.s. manufacturing data and strong data back in the u.k.. back to you. dennis: all right, thanks very much, phil flynn. stocks now. we got keith joining us from the floor. new york stock exchange, kicking off the second half of the year in the green, it continues, come on. >> in the short term, absolutely will. the markets so vastly oversold a

week and a half ago, cue for a bounce, came back, trading over critical levels, experienced higher highs and lower lows means the market is performing well with the exception of last friday. no reason in the short term where the s&p does not continue the march upward in our view. dennis: thank you very much, keith. i like that optimism there. that taper tantrum could be over for a few days. we'll see how long it losts. online ads, you know, invisible or unviewed ads costs companies millions of dollars in cash. it's all measurable, and stats show more than half of the online ads placed are never viewed because they are below the screen. you never scroll down. the next company is guaranteeing its clients, they'll have the ads seen, and joining me is the cofounder of undertone, thank you for being with us. tell us about this problem. so you, a spot sore pays to run an ad, but i never scroll down far enough to get to it. what percentage of ads are never

seen and below the fold? >> sure. there's a number of companies that are looking at that problem right now, and specific measurement vendors. i think the best way to put it in perspective is to step back, think about the fact there is nonviewable, that's the industry term, ads in all forms of advertising. think about tv. dennis: okay. don't make excuses. i want to know what percentage of online ads don't show up on the screen. >> i heard everything from 20-50%. dennis: okay, 20-50%. billboard is not looked out and an ad on television doesn't work, but, still, you on line guys and the online world were supposed to fix this. this is a scam. do corporate clients know they pay for ads that don't show up on the screen? >> i think if you're -- if you use the internet, you know about the navigation of a typical web user; right? dennis: right. >> you scroll down the page, midpoint in the article, and there's ads there. the understanding that that

exists is there, but when they see stats, they sit up straight and go, well, what's going on with my campaigns. the reality is digital is growing faster than any other @%dium, takeing shares, and it's measurable. we can't measure how much skipped bill board, but you can measure this. dennis: that's mucc harder where this one, now, do the major big ad networks, google ones one, i believe, and yahoo, do they typically guarantee, and hey, if the ad is not on the screen, you don't pay for it, or does the client do something about it? >> it's very early. this notion ofet of vendors very what's called viewability forward in the market. the reality is it's very, very early. there's methodologies, different technologies, and the reality is in 2012 #, there are 5.3 # trillion banner ads delivered across the u.s. alone, across hundreds of thousands of sites. it takes time for the industry

to get there, but the opportunity to provide viewable impressions, ad impressions online called impressions to marketers will only fuel the growth of digital. >> your firm, undertone, competes against giants like double click, but your firm goes into clients, saying, hey, your ad appears on the screen. if they never scroll to it, you don't pay for the ad, that's what you guys do? >> sure. two ways to attack it. first is the majority of the business are things like video and takeovers, large formats inherently viewable. the thing that most markets are concerned about are the banner ads; right? those that line through the page. for that, we, earlier this year, announced a viewable impression guarantee. we guarantee that e'll, in this period of transition for the industry, meet an industry benchmark for viewability, and if we don't meet it or exceed it, we'll issue goods in the form of additional ads until we reach it, and the feedback from

marketers is positive because we're, you know, not there yet as an industry, but we, as the small firm, step forward. dennis: you hope the amount of money lost in the essence guaranteeing the ads is made up by getting business from clients who come to you because of the garn see. >> correct. dennis: there's a balance there. appreciate you being with us today. >> thanks, pleasure. dennis: okay. media mogul, the cable cowboy looking to shake up the cable business. details on the newest target ahead in my "media minute," and is obamacare really improving anything? your thoughts on what's bugging me ahead. plus, take a look at today's winners over on the nasdaq. it's a lovely green day. ♪

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dennis: monday media minute, monsters rule. disney pixar's "monster university" taking number one second week in a row at $46 million and up to $300 million now worldwide in two weeks. fox's female cop romp "the heat" surprising hollywood taking second at $40 million, and the summer, meanwhile, has its second nine figure flop, sony's "white house down" placing a dismal fourth bringing in less than $26 million opening weekend costing $150 million to make. "white house down" squeezed from "world war z" and "man of steel" and that franchise passed half a billion dollars worldwide. meanwhile, cable cowboy john customer malone shaking up the

cable business. time warner cable popping on reports malone is interested in buying it. it's down a bit, up nicely last week, but that report as time warner cable looks rather to eat rather than be eaten looking to buy cable vision systems. that stock up 9% today, privately held cox communications, another alternative, so they are soaring nicely. keep your eyes on this space. something's going to happen. what's bugging me? earlier, we asked for your thoughts as obamacare shaping to be an unmitigated disaster? the costlyist, screw yesist government program in decades. andy tweeting, quote, unless one of obama's other follies does us in first, obama care will destroy the republic. brian says, "just got my group health insurance renewal, 6 # 0-year-old couple was $831, and now 1865 per month. ouch."

egypt's armed forces stepping in. pictures from cairo as millions of protesters fill the square to demand a new egyptian revolution, a live report ahead. meanwhile, stocks rally the start of july. mark is up next ahead of the jam-packed week of economic reports like friday's big jobs numbers and just a baby and already contemplating retirement, the future of the e-trade star. his future's in doubt, and i'mm@ upset about that. adam and lori are up next. ♪

>> welcome back to market now. i am adam shapiro. lori: i am lori rothman. u.s. manufacturing activity

rebound. >> it is more of a fizzle in china. a nine-month low. underscoring concerns that the chinese economy is losing steam. gordon chang will join us. lori: less than 48 hours to reach an agreement. a live report. >> 40 million americans will hit the road this fourth of july holiday. we will tell you what you can expect at the gas pump. you may actually smile when you hear the predictions. right now you are smiling when you check stocks. nicole petallides is on the floor of the new york stock exchange. nicole: why not. for all those