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 bowls. here it is for you.

we have talked about volatility in these markets. the best companies, if you love them, they are on sale right now. you have seen that. we jumped once again. all three of our major averages with arrows across the board. yesterday, on friday, excuse me, on friday's readings we were down. prior to that, we had three straight games in a row. we have seen that action. but also watch best buy. it has hit a new high. they love their vendor agreements that they are doing with microsoft's. they will be able to have the products they are.

that is good news for best buy. 6.3%. >> nicole petallides, we like the green. right now we have breaking news. microsoft's entertainment head is leaving to become ceo at zynga. zynga shares are jumping up about 8% on this news. lori: we will keep an eye on it. hello third quarter. a little bit of economic data out this week. manufacturing numbers today. auto sales, adp employment numbers and rewrap the week up on friday with the official employment numbers for june.

what do you think we should be looking at in terms of our investment strategy? mark, great to see you once again. it seems like the bulls are really keying into it. at least for today. >> it certainly was a welcome surprise. good news is good news once again. the fact that we had a rating above plays into what bernanke has said beard we are on the right path at the moment. friday will be all-important related to the employment report and that will be a number participants will be focusing on. lori: given back, do you think the good news is good news trend

? >> obviously caught after bernanke's comments, we have governors running around talking about the fact, well, maybe not so fast. we could see a continuance, but perhaps even another tool to point the fed. we think over the course of 2013, we will see better economic activities. lori: mark, i know in terms of geography, regions that you like

our europe. >> europe is a basket of countries. we see the economic surprise for europe continued to climb higher. that is encouraging. that will boost sponsorship to european equity. i would really look at companies like germany and the peripherals like italy and spain where you can get high quality even in italy. lori: what interests you? >> the equity hedged nikkei etf. anyway to take advantage of the

weekend again, but as well to hedge against the dollar yen currency. we think that intervention by the bank of japan will remain in place. lori: thank you so much for joining us. >> millions of people are flooding the streets as protesters call for morici to resign by as early as tomorrow. fox news conor powell is in jerusalem with the details. >> it been a weekend of mass protests across all of egypt.

just a few minutes ago, the powerful egyptian military leadership called on both sides to work out some type of political road map to solve this political problem. they will step in. they will try to solve this. they are essentially threatening a military coup. critics of the opposition in the military will always warned that

this is a possibility. they have always been concerned about the military intervening. one thing that is very clear in the next 48 hours, 24 hours or so, things could get very volatile in egypt and it is not clear who will be in charge in the next two days or so. this is a real process in the making for a real political prices. >> all right. thank you very much, sir. lori: today was a day of reckoning for scott london. he pled guilty to securities fraud. elizabeth macdonald has the very latest for us. >> he basically faces up to 20 years in prison. a $5 million fine. this over and insider trading

scheme. scott london was found to be giving tips to his golfing buddies. he has already pled guilty to one account of conspiracy theory. he faces five years in prison. he got cash bribes and jewelries and dinners and concert tickets as well.

lori: if you compare it to the sec. >> that is correct. this is a conclusion to a very lori: elizabeth macdonald. thank you. >> summoning the u.s. ambassador over reports that the u.s. agency bugged un offices. the behavior is unacceptable. apples i watch could be coming sooner than you think.

it covers computers, computers peripherals and wrist watches. down 32% in the last year. today, they are actually trading higher. remember e*trade spokesperson? that spokesperson may be gone for good. the talking baby made its debut during the 2008 super bowl. e*trade owns the right to the little one. they have the right to use the baby with a new agency in the future. it sounds like the baby hasn't grown up. lori: in the meantime, will you be paying more to fill up the tank this holiday season? tom kloza is here in studio with us.

how much it will cost you, the taxpayer. new regulations threatening short-term rental websites. why the government is getting involved. >> gold is back up today as we head to break. ♪

>> breaking news four investors. the shares are now climbing 12%. leaving to take the top row, possibly even ceo at zynga. zynga shares are on a roll. up about 12%. charles: it could be. lori: what did they do? charles: solar panels.

this is a lawn musk name. it has been extraordinarily successful. 2.5 million shares. i think a close above 40 would be huge. we know that x amount of money will be put into this. one thing that really hit me hard with this is the insider buying. 3.8 million shares. five insider buys. that is huge. lori: a high pe.

>> a million shares of tesla at $92. the same sort of scenario. the same sort of set up. >> i would love to continue this discussion. thank you. we will update again tomorrow. lori: let's get an update on the market. let's go back to the stock exchange to check in with nicole petallides who wants to zero in on a company called onyx. nicole: look at onyx right now. up almost 51%. it is that $43.86 a share.

the speculation here is that it could be a target. it has moved to an all-time high. this is all about a chance drug. there is some speculation that the company could be sold for $170 a share. this will be a story that we will continue to follow. >> as the calendar flips to july, it is a whole new reality for college students. two separate rules that have two buckling up for a bumpy ride. lori: check the dollar today. it is actually up. it is weaker versus the euro, though. we are back in a moment.

the local

♪ >> 22 minutes past the hour. hi, everybody. i am jamie colby. this is your news minute. president obama says the death

of the 19 firefighters in arizona is a reminder of what they face every day. the place is still 0% contained. it is 85 miles west of phoenix. san francisco train commuters coping with the first transit strike in 15 years. new york judge tossing out former alamo actor. the judge said the three plaintiffs waited too long to file their cases. at least one lawsuit still pending. those are the latest headlines. back to lori and adam. >> congress failed to reach a

deal by today's deadline. student loans could cost taxpayers a lot more than originally thought. >> this new estimate drawing attention. they show loans showing big profits. that forecast assumed the doubling of interest rates on some loans that kicked in today. they do not include a big real world risk. including bat, the federal student loan program would lose $50 billion.

a new report says that if all that happens, cost for students could rise over time driving more of them into the income -based repayment programs and more debt forgiveness. doctor cost taxpayers a hundred billion dollars. >> it is important for us to talk about whether these profits are real. >> to buy time to work on a compromise, senate democrats plan a vote next week.

adam. >> a $100 billion loss by 2020. that does not seem like a good deal. lori: new rules in the trucking industry. truckers drive more than 70 hours in seven days. seventy hour maximum behind the wheel in a seven day period of time. an already tough labor shortage even worse. >> this will put additional strain on our capacity.

lori: more than tripling the 12.5% gain. these are some of the trucking companies. the individual stocks in today's trading session. three cents a share. warner enterprise of just a penny.

>> is china heading for a crash or are they already there? attempts to cool down the country's top ranking system. gordon chang joins us next. much more pain to come. lori: see how china data is playing out in the pits. the dow is up 158. only four shares in the red right now. back in a moment. ♪ alec, for this mission i upgraded your smart phone.

♪ right. but the most important feature of all is... the capital one purchase eraser. i can redeem the double miles i earned with my venture card to erase cent travel purchases. d with a few clicks, is mission never happened. uh, what's this button do? [ electricity zaps ] ♪ you requested backup? yes. yes i did. what's in your wallet?

adam: dow is in positive territory. we'll check all of that with nicole petallides on the floor of the new york stock exchange.

some naysayers would say the volume is not there, is it? >> taking a look at volume, 311 million shares changing hands, not bad. can't compare it to the last few fridays with rebalancing. look at nokia and siemens, two names on the move. nokia shares are jumping and this is on the siemens deal. the deal is $2.2 billion. that is what they're looking to pay out. this is the deal they have been going forward with to buy out their german partner and this is a telecom equipment joint venture of course. nokia, siemens. look at the shares right now. nokia is up over 4%. siemens shares up nearly 3%. obviously a big deal underway. both companies here with up arrows on the news. certainly is interesting. also siemens, with those shares higher, exiting from the business as well. keep an eye on it. watch nokia's balance sheet after this one too. back to you, lori. lori: good to note. thanks, nicole. after closing bun 23% for the

quarter, gold is making some gains today. fox business contributor phil flynn of price futures group is in the pits of the cme. a long way to go for gold. >> a long way to gold but the best quarter that i remember recently. we're up $32. a lot is production concerns. we went into the cost of production. a lot of mines will be shutting down. they're even talking about mining strikes in south africa right now. some very important talks are going on right now. the market was very oversold. due for a bounce. what better day to bounce than the first part of a new quarter. lori: bottom positive economic data, manufacturing, first and foremost but the turmoil in egypt, phil that is really bullish for crude prices today. >> absolutely. that is where we're seeing most of this. we had bad data out of china that is not good for oil demand. concerns about a possible que r queue in the next 48 hours. giving the president basically an ultimatum to meet the

people's demand within 48 hours or we're taking over with our plan really sent prices going up. egypt is not a big producer. but we have the suez canal going right along there and the important pipeline, every time we get some heat in egypt the concern focuses on those two major oil transport lines. lori: right. the production does are shun threat is always a concern. phil flynn of price futures group, thanks so much. great to see you. >> thank you. happy monday. lori: i told phil earlier i expect fireworks from him all 4th of july week. coming up oil analyst tom kloza will join us and saying why prices at the pump could be 10 cents higher this july 4th than last year. adam: we'll give you fireworks at least when we talk about china. more signs of weakness in the world's second largest economy. two reports show a slowdown in the manufacturing sector. this comes on top of recent liquidity problems for banks and a credit crunch for borrowers. our next guest says it is adding

up to a an economic crash which we will see or could see this year. joining us now, gordon chang, author of the coming collapse of china. gordon, the people who disagree with you are saying this for years and years. eventually you will be right. you haven't been right so far. but why now? you use the word crash? are we there? >> liquidity crisis causing confidence problems. you have debt issues and with a slowing economy from the hsbcpmi and, official pmi, they will not be able to pay back the debt. i think the fuse is lit. i don't think there is anything they can do because of global conditions. foreigners will not pour money into china. that means the chinese economy will fail on its own. adam: it will go into recession. this played out in the united states in 2007 and 2008. we had a liquidity crisis. we had a credit crutch and we had recession. if this happens in china i think the problem for us in the united states they will no longer

purchase our debt or will they continue to buy our debt? >> they haven't really been buying debt for the last seven quarters. you have to go back to july 2011. official holdings of u.s. treasurys is $1.3 billion. adam: where is it now? >> it is the same now. they have not been buying our debt. no reason to indicate their unofficial purchases and sales are deviating from the current numbers. we're fine on our own. adam: we export to china, i expect they won't buy as much for our stuff and undercut prices worldwide as they try to revive their economy, will they not? >> they have been cutting prices. they already have been. remember last year we ran a $315.1 billion trade deficit with china. that is essentially negative for gdp. i'm not saying we shouldn't trade with them. on balance trade with china is not good for u.s. gdp. adam: that would grow because of undercutting prices.

let me ask you this. there is something you have drawn attention to, which people are not payinn too much attention. notices about chinese consumers not being able to take money out of atms what, what do we believe about the official statement why? >> rbc, largest bank of china, number of other institutions basically shut down atms at various times last week. they were saying because of systems upgrade but bankers in china have been privately saying this really is basically to conserve cash. and so this shows how bad chinese institutions are, and you know, it will be okay today, i'm sure because it is the first day of the new quarter. they don't have to meet quarter end capital requirements. nonetheless this shows you how fine an edge the chinese economy is right now. adam: 10 seconds left when? when do we finally get world agreeing with you, here is a slowdown and crash of the chinese economy. >> sometime within six months. i don't think they can play it out much further. adam: gordon chang putting a

timeline on it. thank you very much, gordon. >> thank you very much. lori: no receive for california. triple-digit temperatures straining power grids and sending people to the hospital. adam: websites like air b and b like home away in another blow to the share economy. lori: let's check interest rates before we head to break. unchanged, still elevated. 10 year at 2.48%. 30-year fixed mortgage is 2 1/2%. four 1/2%, excuse me. so that is important. 30-year is down slightly. buying in a little bit. 2.48%. strong stock market rally and strong economic news start the day. we're back it n a moment. i want to treat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there.

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>> i'm jo ling kent with your fox business brief. a federal appeals court has thrown out class status in the digital books lawsuit against google saying the district court should have determined the merits of google's fair use defense. certifying a class would have allowed authors to pursue the lawsuit as a group. insight information group is being purchased for $661 million. the deal will help corelogic expand its property and casualty business. banks and brokerages are expected to see a record surge in suspicious banking transactions and criminal activity cases by 2015. according to new study by independent research firemarks ise group, the amount of cases

could reach 1.2 million. there were less than 720,000 cases back in 2009. that is latest from the fox business network, giving you the power to prosper.

adam: a scorching heat wave is burning parts of country and creating wildfires and making conditions unbearable for people to live there. how long will the triple digit heat last? house house is in los angeles for us. do we have an answer to that question? >> kind of have an answer. it will be a couple more days, adam. here in l.a. it is supposed to be in the 90s. not too bad but there is much more humidity than people in california are used to dealing with. it makes it steamy in the south land and inland empire. you're talking about significantly higher temperatures in the desert.

official reading came in this morning. usually happens next day when the official temperature comes in from death valley, 129 degrees. highest recorded temperature on record in the month of june. overall highest record in death valley and for that matter around the globe is 134. that was back in 1913. eather service how talk to the difficult this weather pattern has been and why the heat wave is so tough. take a listen. >> temperature goes up. relative humidity will lower and anytime that you do get the extremely hot temperature with dry air, relatively dry air, especially throughout the mountains and what you might get what are called plume-driven fires which the fire really builds with the hot air. >> the fire, as he talks about the fire conditions how difficult this fire season is and this temperature. this heat wave has gone on for so long, makes it that much more

difficult. we know in las vegas they had problems there with 117 degrees. a number about people died having no air conditioning in their home. but fire conditions is really what everybody is watching as well. it is so tinder dry across the west. you had a drought out here. the winds in the yarnell air are expected to be 18 miles an hour. shows you how difficult this, adam. there are positive and negatives. if you own a grocery store you will sell more ears and sodas. other businesses at side in the heat, they don't see so many people outside. adam. adam: house house, maybe another day we ask you about the business aspects the water problems the part of the country faces with this but thank you, stay safe. >> absolutely. lori: short term rentals through websites like home away are rising in popularity. questions over regulations are looming in the industry. fox news david lee miller joins us with latest. david. >> the popularity of short term

rentals is on the rise. by that we mean rentals less than 30 days. the increase is due to these websites that encourage anyone with a room or entire home to advertise availability. this now is a $24 billion a year industry. but some cities have restrictions ranging from requiring permits to outright probushion. for example, after new york city resident nigel warren rented out his manhattan apartment three days he soon discovered he violated state law with initial fines of $40,000. >> i flipped out. there were a few days where i actually, more than a few days. there were weeks i was not sleeping. i didn't know what to do. i had never been in the situation. >> although the fines were lowered to 2400, warren is fighting the violation. as courtesy his legal fees are being paid by the web site, air b and b where he advertised apartment. it says new york's law is unfair

and advertises its services are not illegal. they caution potential customers to check local laws. industry advocacy group says short-term rentals are good for the overall economy but opponents disagree citing damage to property value, unregulated security and unfair competition. >> obviously hotels are losing millions of dollars in revenue because of this cottage industry of short-term rentals that has developed over the last several years. >> by most metrics it is pretty clear that short-term rentals bring incredible benefits to communities. we stand willing to work with anyone's concerns to create fair and reasonable rules that benefit all stakeholders. >> and at least one state wants to make it easier for short term rentals. florida, where tourism is the number one industry has passed legislation preventing local governments there from imposing any new restrictions.

lori. lori: when did vacation get so complicated? david lee miller, thank you. keep it right here on fox business. coming up in the 2:00 p.m. hour ashley webster goes on one with home away president. >> keith bliss is at floor of the new york stock exchange. the data out today, keith, you believe that this is actually a goldilocks scenario with federal reserve policy some would worry it's a little red riding hood with a big bad wolf waiting to strike. tell us why you're more optimistic. >> the economic data and probably what we see for the remainder of this week and shortened week. we have abbreviated session on wednesday and we're closed on thursday. economic data is pointing to a mild recovery inside the u.s. economy but not really good enough to show substantial growth in the 3 to 3 1/2% gdp range. given that, the fed signal this tepid economic growth we're having is a good sign. until we get the really good blowout growth we'll not step

away from the party anytime soon. instead after goldilocks scenario, we'reestill growing not as much as we want. we're still growing, and fed will not step away anytime soon. that lends support to equity prices. adam: keith bliss from the floor of the new york stock exchange. thank you, sir. >> my pleasure. lori: fireworks not only thing popping up on the fourth of july. latest reading on gas prices before you hit the road. adam: our one and only gas buddy tom kloza will be here in studio to talk about prices for the rest of the yearer actually. which would be fine if bob we a vampire. but he's not. ♪ he's an architect withwo kids and a mortgage. luckily, he found someone who gave him a fresh perspective on hisortfolio.. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade.

lori: crude oil prices have been trending a little higher lately. you probably know that by now. and with summer here and 4th of july travel upon us people want to know what gas prices will look like. fortunately our next guest is a expert.

gas buddy analyst, tom kloza. got to get the conversation started with egypt. obviously not a big oil producer but any disruption in production facilities is a big reserve. we're seeing crude oil barrel pop up largely because of that. what do you think the risk is of the latest uprising out of egypt? >> i don't think there is much risk. north african, middle earn countries and will have this madness from time to time. we're insulated because of rising north american and particularly canadian and oil shale production. i think it gets headlines and mentioned as an excuse but i don't suspect we'll see a headline like that really move oil the rest of the year. adam: gas prices, you're calling for summer gas prices to average $3.50 a gallon but could go down to $3.25 a gallon this summer? >> in new jersey where you can make the decision to pump your own gas and go pick the lowest gas prices you can can do better than that. do 3.30 and 3.40 in most states.

it has been kind of a wild year with a lot of volatility. mostly regional volatility though. lori: that is what i was going to follow up with you, symptom, you can really pick your price for gasoline, can't you? have you ever seen so wide a range of prices from one city to the next? >> only when i fly. when i ask people what their air fare costs and tell me it is 200 and i paid a thousand. it is not so bad with gasoline but you could save 20 or 25 cents per market if you take active role picking out the gasoline and choosing among a lost different numbers there. never seen as much move from spring to summer or from market to market than we're seeing right now. crude is really flat but gasoline prices have been up or down and probably on a little bit after down roller coaster. adam: what would it take, i don't want gasoline prices to go up. we had hurricane andrew and hurricane sandy last year which would cause prices to go up. what would it take?

>> a gulf coast hurricane. if you get probability cones in the gulf of mexico this year, particularly, july and august. after september not so much. if you get that we've got about nine million barrels of a day of refining capacity, more than half of the u.s. refining capacity is in texas, louisiana, mississippi. so, if we get some violent storms and they threaten refineries, refineries have to close on a precautionary basis. without the storms i think we'll see much lower prices toward the end of the year, in the last 100 days. i think next 60 days or so are a little bit middle of the road. lori: the u.s., we're on track to actually have more domestic oil than we will import very soon, shortly. that is a milestone, isn't it? >> i think somewhere in the next six weeks we'll be producing more oil in the united states since we, since, more -- adam: more than we import? >> i believe since february of 1992. we're talking about 22, 21 years here. and we're going to hit that

there is no question about that later we'll be at the point where we're perhaps making nine million barrels a day and importing five. a lot of that will come from canada and mexico. adam: we're using 25 million gallons less of gasoline every day than we did at the peak in '07, and 08. is this a good sign for the% economy? are we more efficient or are we slowing down. >> a little bit of each. demographics are changing. there are a lot older people. older people drive less. millenials and those drive less. they're doing everything in teeny-weenie land. lori: is that like going to hit 100 bucks a barrel very soon? look at that price. >> we might get $100. it will really not meet much. the price of wti is the kardashian of crude. adam: get as lost attention. >> gets a lot of attention but really doesn't mean much. adam: great analogy. lori: tom close say, speaking of cars, not the kardashians, we

have something very special for you. all-star panel for our business of autos show. alex gutierrez, elley blue book, jean jennings and george magliano from ihs and michelle corrects from edmunds.com. if you have any questions for them we'll get you answers. tweet us at ajshapps or lori rothman hashtag, biz of autos. we'll ask them the questions. lori: you should drive me to work so i don't have to take the train. adam: want a mini, jaguar, maserati? lori: yes. adam: yes to all of the above. lori: i will stick around for tracy byrnes. she is off today. we have a market rally to start a newmont and quarter on wall street. jim bianco weighs in on the market's next move. stay with us.

lori: welcome back. i'm lori rothman. >> i'm ashley webster. if you thought it would be a slow holiday week, guess again. the dow starting off with a bang, up 114 points, though way off the session highs. but nasdaq and s&p adding 1% as well. oil prices we just heard in the last hour surging on new anxiety in egypt. is that warranted? market watcher james bianco what happens next is all up to the fed. he will be here in moments. >> immigration reform is a hot topic. a battle in congress. the u.s. chamber of commerce is on board. so are senate republicans but can it get back the house republicans one way or another? remember the house speaker said it is doa. greg valliere says no. ashley: not very optimistic. home shares are surging more

than 40%. we will have the president of the vacation website how they plan to keep growing big. vacation, sounds good. it is facing a threat of new regulation. we'll get into that. people renting homes instead of going to hotels. there is lot of advantages. write is complicated as we will hear. ashley: can be. lori: a lost details and stones to turn over. let's update you on the market as we do every 15 minutes. nicole on the floor of the new york stock exchange. we have a nice rally. things started off with a surprisingly strong manufacturing report for the country. >> we have so much going on. obviously we have a lot of volatility. we have friday's jock report. weekly number comes out on wednesday -- jobs report. dow industrials up 118 points. as you noted we got in different pieces of economic news including the ism number which traders call just right. art cashin, ubs saying it is just right. the tapering could be right for

just a moment. it has pushed the s&p 500 up near its 50 day move move. we can look at some longer term charts so you get a feel where the action has been over the last week. we're keeping an eye on the nasdaq which is doing well, up 1.1%. keep an eye on apple as they file for patents for the i-watch, the iphone watch. couple of pieces of news we're watching with apple. right now up 3.5%. some very positive analyst comments from raymond james with a $600 target talking about the fact we use apple in a lot more things than anybody realizes such as autos and television and such. they think there is a lot of potential for apple. back to you. lori: nicole, thank you very much. ashley: our first guest says when it comes to the markets, well, the fed is only thing that really matters. james bianco is bianco research president. james, thanks for joining us. is it really all that boils down to? first day of the third quarter,

first day of july, market surging again but you say it really all depends on the fed so where do we go from here? what is the endgame for the fed? >> i think it all depends on the fed. i would quibble with you about the market surging. this is the 16th day of the last 30 the dow moves up or down 100 points. that is what it does. we'll see which way it goes tomorrow. it is all about the fed and the market trying to figure out if the fed will do what referring to as the taper or not do the taper. now appears fed officials want to do it. and i have argued they do want to do it. that they're actually not data dependent anymore like they said. they're on a calendar. they want to stop qe. they want to stop qe as quickly as they can. when the market freaked out about the idea qe would be pulled back, they came out and said, no, we're not raising rates or not going to sell securities. that is not what is bothering the market.

what bothers the market they will reduce purchases and fed seems intent on doing that he have about the end of the year. ashley: james, they also downgraded or revised lower a lot of their economic projections. it is not as though we're getting a sense that the economy can really stand on its own two feet. it may be able to do it but not exactly going gangbusters, is it? >> right. i think that is the key thing that bothered the market the most. the fed downgraded its assessment of the economy on both inflation and gdp this is a data dependent fed. they downgraded the economy. that means a data dependent fed would argue more qe. not that we'll end in september. no that we'll end over the next few meetings. the market scratched its head. why are they talking about exiting when it is downgrading economy. the answer, they want out. because they want out the interest rates soared, stock market tumble, gold taking a big hit, commodities taking a big hit, from developing markets to emerging markets, you could see

the fed and other central banks, i don't want to single out them. when they provided to market and when they threaten to pull it back and how much chaos they created in markets the last couple weeks. ashley: it has been so volatile. i imagine choppy seas ahead is pretty much the norm until this gets smoothed out. as an investor how do i play this right now? look at the bond market. what does it mean for the bond market? >> well, you know, as an investor and if you're a bond investor i always give the advice no one wants to hear. you have to time the market. no, don't tell me to time the market. @ou have to time the market around the fed. what is the fed going to do? if numbers come in worse than expected, that is the economic numbers and the fed backs oof their talk about pulling back on their purchases before the end. year we could have a nice rally in bond, we could have a recovery in the stock market. if the fed is insistent ending this policy by the end year or beginning the end of the policy by the end of the year what we see over the next couple weeks will continue next couple

months. tell me what the fed will do and i will tell you what the market will do. that said, i bet the fed is insistent on pulling back and we'll see more turbulent seas ahead. all the markets are 56 affected by it there is one trade in the market. are you long the fed or short the fed? whether you're bonds, commodities, emerging markets they go up and down the same because of this whole fed liquidity thing. ashley: we're getting so much negative guidance. 80% of the s&p 500 companies putting out negative guidance. is that just sandbagging the market so they can surprise when they bring out the results? >> there is definitely some of that is going on, because usually 70% of companies beat expectation. they're in the period where they guide it down so they can beat it but nevertheless it also is that earnings, if you look at nonfinancial, take out the banks and s&p 500, we're expecting no earnings growth, negative. if you add in the banks we're expecting 2% positive earnings growth. that should get a little better when we get the 70% approval or

70% beat rate. the fact of the matter if markets trades purely on fundamentals once you take the fed out we saw that over the last two weeks, it goes straight down. the market is too high relative to the fundamentals. what keeps it at these levels is the hope that the fed will stay in the game. so the weak earnings numbers are worrisome because it is not there to justify current levels in the market. ashley: interesting. as we see the dow is hitting -- lori: stop talking, jim. ashley: jim bianco, thank you so much. especially with your thoughts on the fed. thank you so much. we appreciate your time. lori: we just lost about 50 points during that time, ashley. ashley: jim carrey as big stick but he is right. lori: yes, he is. one thing setting the tone this morning was the economic news, ism, measuring manufacturing on a nationwide basis actually rose to an expansion pace in june. they were not expecting this, the economists, bouncing off a 4-year low in fact. this is one area of the economy that was raising a lot of eyebrows, a lost concern among

the economics community. jeff flock is in carpentersville, illinois, on the ground where we're seeing manufacturing holding out for us. >> lori, you're looking at american manufacturing right now. only place on television you will watch the ism number come to life, auto engineering. i have tom who runs automotive engineering who runs this as his father went before him. a lot of people thought the jobs went to china. not so. >> some of our subassemblies go to china, things that are not really important. >> put the ism number. it shows reasonable expansion. it is above 50 points. does that reflect what err seeing in your business? >> no. my customers are telling me they're having a hard time. i had customers call me up, major american companies, saying push my orders out a few months because they're not doing so well. >> wow, that is amazing. what are we looking at right here? >> that is control grip going go

in off-road construction piece of equipment or farm tractor, something a demanding application where always it has >> gotcha. leave you with ism employment piece. although, manufacturing did increase slightly last month, actual employment was down 550 employees now at auto engineering. you had 590 at the peak. so we have not recovered yet. here in the chicago subbrbs. lori: oh, that is not good especially we're waiting for the june employment report at the end. week. that component of ism is important to keep in mind, jeff. thanks so much. ashley: jobless claims. got the adp. big nonfarm number on friday. about half of the market is on vacation right now. this is very busy week. lori: a lot to consider. so i think a lot of people will be showing up for work. we have a shortened trading session. we're back in business full day on friday, stay tuned. stunning pictures out of egypt where another leadership change could be just hours away. we'll have the very latest

ahead. lori: plus a critical test for house republicans on the immigration reform push. potomac research greg valliere will tell us how they will likely respond coming up. as we do every day at this time, look at oil and how it is trading. it is up there. all the chaos and protests in egypt adding bullish sentiment. you have stronger economic data that greg was talking about, jeff, rather. that is pushing the price of oil a little bit higher. but you're looking at the metals as well. gold is climbing 27 bucks, nowhere near the high but reversal nonetheless. we're back in a moment. friday night, buddy.

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with creditcards.com, it's easy to search hundreds of cards and apply online. creditcas.com. ashley: the stakes are high in greece has the country resumes talks with its international lenders to unlock $10.5 billion of rescue loans after a two-week break the prime minister says he is hopeful these talks will be successful. they're hanging on again despite setbacks in the country's privatization programs and missed deadlines for public sector reforms. greek media reports that a trio of lenders may refuse to pay the full amount all at once and may break up the payments to put pressure on athens to deliver on

all the reforms. if the talks fail the imf may have to withdraw from greece's rescue to avoided violating its own rules. once again greece is in the spotlight. it all sounds so dire, doesn't it? keep an eye on that. lori: it does but they always pull through. ashley: they do but the fact are they ever going to get all the reforms in place? very unlikely. are they ever going to repay this money? very unlikely. it is what it is. lori: you know what it is? time to make money with charles payne. he is looking at the self-service industry with coinstar. this is follow up from the beginning of june. how did we do, charles? >> doing okay. put it on at 57. doing 60. not bad for one month. croatia is joining e.u. if i'm greece that gives me a little bit of leverage. ashley: croats will not be happy with that comment. >> i know they won't be but golly. talk about coinstar. how do you guys feel about kiosks. lori: i love them?

coinstar is so fun. >> do you really? kiosks -- lori: see all the movies? @> redbox, it is fantastic. people writing off the whole dvd business. lori: no way. cars -- >> all the -- lori: taking over your hit, sorry. >> look at best buy over the last year, look at that stock. you can't write this stuff off this soon. netflix made 113 million off dv. dids. dvds. only 31 off the streaming video. they have rubies, they will distributing seattle's best coffee out of this one. what do you think? lori: you know in new york city we, they're not really kiosks but we eat off stand in the street. ashley: you might. i don't risk it. >> hot dog stand that have questionable whatever. lori: i love my dirty water dog. >> you trading used cell phone for cash. lori: beautiful. >> you like that one? ashley: that is a good one. >> bert than someone stealing

it, right? solo health. you sit down in the chair and get blood pressure. lori: don't want to do that in public. >> yeah. what about orange? electronic stuff, you can buy headphones, would you buy headphones for that kind of stuff? lori: i lose mine all the time if it's a quick fix, absolutely. >> absolutely. they're heading in the right direction. ashley: convenience. >> the stock is up from the last time we talked about it. only thing i don't like the volume is not there. i wish i had a volume because i'm looking for a short squeeze. lori: macro picture of the holiday week? maybe. it is half of what i want. 44% of this stock is short. i don't think the dvd business will die as soon as they say it will. this stock i see one big short squeeze coming. ashley: interesting. >> i'm not sure if it will be the solo health thing that does it or the atm machine that takes your old cell phone to give you cash. something will put them. ashley: blood pressure such. >> exactly. see you guys later. >> that is the correlation. ashley: there you go.

a little after quarter past the hour. let's look at these markets. the dow is coming off the session highs. nicole, on the floor of the nyse. nicole? >> right. so we're off the highs of the day. talk to traders on wall street they will talk about the fact it's a newmont and new quarter. new money is coming in. that helps abroad to keep them afloat as well. the dow jones industrials right now up 106 points. the dollar is slightly to the downside. commodities are higher. gold in particular we're watching that, up 26 bucks at 1250 a troy ounce. that is still obviously way down from where it was. we're keeping an eye on pandora, a name we're watching closely. two-year high. morgan stanley liking what they have been seeing from pandora. and also just talking about the fact that now that pandora is effectively on equal footing with broadcasters and competing for radio dollars we're leak it. they think they can take meaningful share.

it is radio ad dollars and morgan stanley thinks i think pandora has a bite chance and that's why they put a 24-dollar price target as well. ashley: thanks, nicole. we'll be back with you at the bottom of the hour. lori: darkness is now in egypt and how is it affecting oil prices? ashley: what this is a obviously a holiday week but lots of news to move the markets. as for the currencies, the euro, pound, canadian dollar, mexican peso all moving higher against the u.s. dollar. just the japanese yen slightly down against the u.s. dollar. we'll be right back. 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.

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>> 22 minutes past the hour right now. hi, everybody, i'm jamie colby with your fox news minute. calling it a last chance, the egyptian military issued a 48-hour ultimatum to president mohammed morsi and his opponents to reach a power sharing agreement or face more intervention from the armed forces, coming after two days of mass protests underway in cairo and at least 20 other egyptian cities. earlier today protesters stormed the headquarters of islamic leader mohammed morsi. at least 16 people were killed including one american. egyptian military forces have a

responsibility to act because the country's national security is facing a quote, grave danger. pictures are stunning. i'm jamie colby. back to you, ashley, now. more news later. ashley: jamie, thank you very much. of course talking of egypt the unrest there is sending oil higher today. let's go to phil flynn in the pits of the cme. tom kloza was on last hour, phil and he was saying really he doesn't feel this is justified. the headlines may be pushing oil higher but in reality it is really not a major factor. >> well it may not be but every time we've had unrest in egypt the market has rallied of the in the past has it been justified? were there any disruptions? no. that is what futures markets do, they try to assess increased risk. more expensive tip sure an oil tanker going through the suez canal, for example, or oil through the sumed pipeline. so definitely an increased risk? how much of a risk, that is debatable.

when you consider the fact you have the suez canal, you have almost 18,000 ships going through there on daily basis. 20ers happen to be oil. 6%, lng. the sumed pipeline comes from saudi arabia, it gets oil out to the red sea. that is the other alternative to the suez canal. if both of those are at risk and worst-case scenario happens, a war, a pipeline explosion, shutdown of the canal, even for a short period of time could have a major impact. will that happen? we don't know. but you have a potential coup and uncertainty, the markets would not do their job if they didn't raise the price. ashley: that is good point. phil flynn, at cme. thank you very much. we're getting a separate headline, a bank managing director has resigned. we'll keep an eye on that story. lori: a story amid the vatican bank. we want to piv have the to talk about other stories of the day. when you thought we were one step closer to landmark

immigration bill. the landmark immigration bill passed in the senate last week will likely fail in the house where the lawmakers are divided on amnesty. could this force congress to compromise? joining us greg valliere, chief strategist at potomac research. dead on arrival was the quote from john boehner about the immigration legislation in the house. seems as if republicans in congress, the house in particular, don't even want immigration reform? >> it is quite a story. i've never seen anything like like it in my career, big business, chamber of congress, religious groups, other republicans from the senate all telling the house they have to move and the house in effect saying no, we're not going to even negotiate. the thing that shocked me the most, lori, over the weekend was the conservative chairman of the house judiciary committee saying basically, we don't believe there should be a path to citizenship for people who entered the countly illegally. if that is what they really mean

i don't think we're going to get a bill. lori: it's, it is so interesting, when you hear senator, senator rubio trying to be kind of a bridge between both sides and in a lot of ways, putting his own situation and his own credibility as a conservative on the line here. what is this immigration legislation doing within the republican party itself? >> it is quite a story. rubio is being vilified by the very tea party people who loved him just a couple years ago. i think his career has been hurt by this. but more importantly the republicans face a real crisis. i think that while the base, the very conservative base doesn't want even any kind of amnesty, the party as a whole is looking at general elections, presidential elections that they're going to have a very hard time winning because hispanic voters will be so overwhelmingly opposed to republicans. lori: that is so interesting as well. so the issue really hinges on a path to citizenship. >> right. lori: house republicans are not

at all, there is nothing in the bill they actually are happy about? increased border security, that side of it wasn't enough to appease house republicans, satisfy them? >> i think you could have a moat with alligators in it and the bill still wouldn't appeal to people who just fundamentally don't feel there should be amnesty for people who live here. it's a bedrock issue and among the republican base, the rush limbaugh crowd, ann coulter crowd, they're very influential and republican base is saying no, we do not want a path to citizenship. lori: i read your note earlier, greg. you mentioned the latest development in the nsa leak. i would like to ask your opinion. >> sure. lori: a dramatic turn, the u.s. is pie spying on eu offices. we're trying to get a trade relationship or expanding it. what kind of ramifications will this news have? >> pretty serious. everybody knows people listen to other people especially going

after islamic terrorists. i'm happens. a lot of these spying incidents apparently according to these leaked documents by this traitor, this criminal, edward snowden, a lost these documents show, in my opinion, the u.s. may have been just looking for economic espionage. that is really infuriating for a lost europeans who thought that the u.s. was an ally, not an adversary. lori: absolutely. so does it make snowden less of a criminal or traitor in your eyes? >> no. i hope they put him in jail for a very long period of time. what he has done is caused real damage and, he just can't on his only hereby declare this is the right thing to do. we're a country of laws. in my opinion he has broken a lost them. lori: greg, thank you very much. for your analysis and your opinions. >> okay, thank you. lori: greg is with potomac research. ashley: mr. snowden could be in moscow airport for a long time. lori: he is still there. ashley: that has a little backward move. lori: not only that, we'll send you 23 million in aid for human

rights. what a slap in the face to the u.s. ashley: no kidding. stocks letting go of some of those gains as we approach the final 90 minutes of trading. a live update from the new york stock exchange is right around the corner. lori: plus new developments in the insider trading case rocking wall street and the accounting world. let's show you some winners and losers making up this market today this monday, 4th of july week. cablevision is up. best buy gaining. 8 1/2% gain for best buy. cablevision having a monster day also, up 9 1/2%.

♪ ashley: just under 90 minutes

until the close on this monday, the holiday weekend. the state collected the dow 30. a lot of green on the screen, as you can see. being led by united technology, american express, p&g is in the green three on the other side, we have at&t, home depot's and intel, like this today. overall a pretty good day for the market. nicole petallides is at the new york stock exchange with the latest. >> reporter: thanks. taking a look catamarca's. lots of green on the screen. also watching key levels in the s&p 500. traders, keep a close eye on the 50 day moving average. we'll take tough the new month, new court. here, as well. right now you have seen we have come off of eyes. we talk about what we saw earlier. it puts the s&p up to the 50 day moving average. the bulls up there would like to @%osed. that does that seem to be doing that much. 1623 to 1626.

also, new rules, the ipo we tossed about -- talked about last week. it was priced in the range of 15 to 70. soared on friday. here it is again soaring even more, up six and a half%. what an ipo. think about being priced at $18. it went to $40.69 per share. directly in the casual dining. back to you. ashley: thank you very much. breaking news. starting off. back toward the hundred dollar level. big gains closing of the dollar and $0.43 to $97.99 per barrel, a gain of nearly one-and-a-half percent on the day as we watch the unrest in egypt. lori: that has to be what is going on. today was a day of reckoning for former kpmg partner stop london as they plead guilty to securities fraud for is relented in tight -- insider-trading scheme. with more coming here is elizabeth macdonald, we were

talking about how efficient this can't seem to be. >> up to 20 years in prison and the $5 million fine for an insider-trading scandal or u.s. passing on tips about his plans to his golfing buddy. he personally netted about 60,000. now he faces a $5 million fine. we have stop london speaking after the court appearance. >> you work your entire life, 30 years from organization and you live your life a certain way and then you make a mistake and it's torn down. i can't take back what i did. obviously every credit. it was stupid. >> here is what he did. he passed on the information, 14 different earnings reports and acquisitions including companies such as urban life and sketches to his buddy. his buddy made over 1 million in

insider-trading. ashley: more than 60 grand. lori: that's right. and he added. that deficit to five years in prison. this is one of the most embarrassing insider-trading scandals ever hit the auditing profession. kpmg is doing its level best to reassure clients that this won't happen again. but as he pointed out, a three decade executive committee on this of 500 staffers. a really important job. the fact that he faces 20 years in prison shows that they're serious about this with accountants trying to turn tail and make money off what they're doing. the bad story. lori: amazing that they seem so contrite. >> immediate -- the immediate public confession and apology. lori: something to be set for that. ashley: vacation rental company, always seeing its stock surged. chairman and ceo, special guest had. lori: as we head to break live

pictures from gettysburg, pennsylvania. several ceremonies under way to mark the first shot in the battle of gettysburg which was 150 years ago today. ♪

♪ >> reporter: i'm jo ling kent with your fox busiiess brief. shares of onyx pharmaceuticals climbing more than 50 percent after the drug giant turned down

a buyout from amgen. the unsolicited bid of $140 per share significantly added value. it is still considering selling itself. stocks of newly separated company's 21st century fox are moving just in the opposite direction. twenty-first entry fox is the parent company of the fox business network. and barclays research predicts student loans that will cost taxpayers $100 billion over the next seven years. a sharp contrast from the congressional budget office estimate that the student loan program will actually bring in profits of $150 billion. congress went on july 4th week without addressing today's deadline. does the latest from the fox business network, giving you the power to prosper.

lori: how much you willing to pay for the convenience of

banking and your mobile phone? that is the banks are trying to figure out as a venture into the world of global banking. we're joined with more. we thought we were free and clear on mobile banking because so few banks actually charged for the privilege. well, they have discovered this in pretty soon you will be paying for everything you do, near iphone. here is what is going on, and here's why it's so controversial. if you do mobile banking, you're not using an atm. he needed tell? that nothing so. none of the services the brick and mortar banks -- your not using them. it's over your phone, through the air. at the end of the day people are not happy. your seeing all kinds of charges . summer scale so that if you want to get access to the check you just deposited overnight you can pay a pretty penny and get it right now we complete -- payless and get it over time. lori: we know these have been added to other areas of

businesses. do we know why? >> i think it's always fun to find extra fees. the bank's business model has been severely encroached on by dodd-frank and other a group -- regulatory actions. they feel like they have to find other places to make their money it only cost one to 5 million to set up one of these mobile applications. is not that expensive to set up. they are finding that people love it so much that they're willing to pay almost anything for these services. ashley: banks to try to find new ways to stick it to you. >> and i hate to be stuck a tube. tonight we will be following aa3 student debt crisis and talk of what's going on with student loan rates. i have to tell you, we talked about this last week. it's not costing people who borrow money extra.

only $7 a month on average. people who already have student loan debt are not affected all. lori: very good. ashley: of corsican catcher tonight at six and 9:00 p.m. eastern right here. and guess what. lori is already. you are hosting tonight. lori: a lot of interesting discussion on what is going on with the nsa and the turns out they're not just buying on terrorists but the you. economic spying. we will talk about that as well as the president's trip to africa. ashley: reaching a crisis point. well, what to do when you own a bunch of newspapers and they're dying. well, you buy a television station. as the rationale behind a big

deal today. dennis kneele has the details. >> reporter: well, a tribune company shareholders of been to hell and back, but now the struggling newspaper company is shedding print and doubling up its bet on tv stations. agreeing to pay almost 3 billion to acquire a 19 station group from private equity owner a coat capital partners. it's going to make to be in the single largest owner of television stations in the country. a total of 42 outlets. whatever happened to newspapers? driving company to emerge from bankruptcy last year. it has been trying to sell off the l.a. times and other ink stains riches. the company today is insisting that it is not necessarily so. the ceo is telling analysts see a spending the most effort of trying to run the paper efficiently, not pedaling and to the next buyer. so this tv station deal follows a similar move by gannett company, the largest owner of newspapers in the u.s. with some 80 titles.

it's going to bet big on tv stations. a deal valued at over $2 billion. now, both deals are in recognition that local tv stations have a rising second stream of revenue. now they get paid fees by local cable systems and they're going out. plenty together more tv stations to give terbium more clout when negotiating fees with those cable operators. for travel and it also could let the company had more clout with cable as it tries to build its local chicago superstation. they already own one-third of another cable titan, the food network. it has done very well. ashley: interesting stuff, as you say. thank you very much. lori: it is accorded so, for stocks as we do every 60 minutes.

jason, why have earlier gains evaporated? >> the evaporation of volume, people want to ttke their best of the table. you get it done early and you get home. you take your vacation. lori: so much coming out this week. the report on friday. lots of affirmation that could change what people think about what the fed will do, even change the fed opinion. people still calling it entirely. >> yap. listen, the data points are all great, but it's static. we saw basically the notes out of the fed, it dovetails into this. all of those losses were basically erased. makes data points.

so many data points now and we get so fixated on the. or in a headline drivee market. it does not change the fact that we are still in summer, it's a shortened week. big option expiration, the russell rebalancing. those are the big ones. the major players have wanted to do anything. other than that, i hate to be the bus killed. we don't really expect to see much as out of it. people should just enjoy the short week. lori: ditch working instead of my vacation. >> far be it for me to say that, but it would be a good idea. lori: thank you. ashley: already out of here. vacation rental firms have seen business bone, but now regulators may be ready to move grain. home away chairman and shares his take next. lori: look at some of the day's winners and losers on wall street. back in a moment.

♪ ashley: the vacation rental business is booming thanks in part to websites like homo way which essentially let homeowners renter of their homes to holiday in travelers looking for an alternative to a hotel room. joining us now, hallway chairman and ceo. thank you so much. how does this work? why is this option becoming so popular? >> well, you know, a vacation rental history is a very big, old industry. about 6 million properties just in the u.s. and europe alone

that are available for rent. what it has done is really aggregated more properties than anybody else in the world and put them on the web. we have about 742,000 of them now and 171 different countries. just as if you were looking for a tell you might go to somebody like expedia. if you're looking for a vacation rental on the come to home away. ashley: how do you vet the homeowners and the property. have a line of the description is accurate. >> that's a great question. we are big believers in truth in advertising. we take on tens of thousands new listings of recorder, so it's impossible for us to physically go to each one of the properties we have developed a very sophisticated security check system that we take owners through to verify and make sure they actually on the properties. then as a second line of defense we have some many travelers on our network, tens of millions of fremont. the suns their rented out quickly, and so quickly we get feedback from travelers from

reviews the post or if they find something that is often an advertisement then they call us directly. we maintain a big customer service staff. if a property is not represented as it should be we will either take it down or make sure the information this change to. ashley: of want to talk to you about regulation. i mean, if my neighbor is constantly renting out their home to yet another family moving in, whoever it is, i don't know if i would be thrilled about that. are there any regulations and standards you have to live by? >> there are, and it really depends on the market. the majority of the markets where home away operates our markets were vacation rentals are such a huge fabric of the economy. the outer banks of north carolina, cape cod. such a huge part of the economy. regulations have been developed many years ago, and everyone is comfortable with them. a lot of the news you're hearing about regulations today is starting to take place in cities.

and the trend toward people sharing apartments. that is our neighbors tend to get involved. it's a -- for a big supporter of deregulation. believe this is a big industry. it's okay to be regulated, so we have created something called the short term rental advocacy center. ashley: you have had some push back here in new york city. judges say you can't use your home as a hotel room. but you're saying you do support regulation just because you want to, you know, have fairness and you don't want anyone walking away fairly bad. >> that's right. and markets like new york are not as important to us as they may be to other companies other in this market. we think first and foremost consumers and donors to just have a lot of clarity about what they can and can't do. and regulation is sometimes driven by these neighbor issues,

with more often than not we see it being driven by tax. a lot of local municipalities are in need of money and finding that they can apply taxes to the marketplace. that's okay as long as people understand the rules and understand how to play fairly. ashley: was the most popular location in the u.s. for people who want to rent a home? >> well, the biggest market has always been orlando. 3605 day a year market. we have literally tens of thousands of rentals there. they're full almost all the time ashley: never underestimate the power. thank you so much for joining us. we appreciate it. 171 countries. i could not name 171 countries. get online and see what's out there. lori: number two most popular, west chester, our home county. our neighbors. here's a story that's unbelievable. murder charges may be good for

the sports memorabilia business. one week after aaron hernandez was arrested and charged with murder his jersey is a hot seller on the bank. the nfl stop selling the jerseys, but they are selling for more than face value on the are offeringn website. replacement jurors is for anyone who wants to exchange one with the hernandez name and number. the team realized their release to -- their released hernandez to following his arrest. ashley: strange. lori: mcjob. ashley: some people want to make a buck wherever. countdown to the closing bell was up next we can do better than that. six stops other expected to double. we will tell you what they are and why experts like them. that and all of today's market action straight ahead on countdown to the closing bell. stick around.