investigators search france's on what happened aboard flight 214. aviation expert michael boyd joins us in just a few minutes on the fallout from the airline. lori: as for the markets, now in the green, but losing speed as earning season kicks off with alcoa after the bell. more than three-fourths of companies that have offered guidance are negative. do not believe the hype says s&p kristine short. why she says second quarter earnings will surprise. adam: are you ready? former new york governor eliot spitzer throwing his hat back in the political ring. just ahead, charlie gasparino was with him this morning on what he told charlie about his chances of winning. lori: that will be good. in the meantime, violence erupting in egypt. dozens of supporters were killed, hundreds more injured as chaos rules in cairo. a live report from the front lines. let's get you updated on the market. time for stocks, as we do every 15 minutes.

back to the floor of the new york stock exchange and nicole petallides. so far we are on track for our third straight session of gains but mecca has been looking good for the bulls. right now the dow jones industrial average holding on to a gain of just over 67 points. up 127 points. we have lost some of the earlier gains. we are still seeing the dow up about and a half of 1 percent, and the s&p 500 up one-third of 1%. tech is not doing well. investors are seeing the nasdaq has moved into the red come into negative territory. names like intel, microsoft and the hewlett-packard weighing on the del -- down. let's take a look at some names that are hitting all-time highs and record highs. it is worth noting, some 52-week highs. the dow component, despite obviously the bigger splash. this trace sales numbers, best buy in the green, up almost 2%. some positive comments over the weekend saying that they will do

well as obamacare gets rolled out, but there then names like aetna and macy's, up 2%. dollars and $0.20 per share. adam: thank you very much. the want to talk about the developments on that asiana flight, the crash of the san francisco airport. regulators say it was coming into low and too slow before it this the wall in front of the runway. we are joined by aviation expert michael boyd, also boyd international group chairman. it is good to see you, as always. want to point out that shares right now have hit another 52 week high. $0.154. it seems to me that there is no negative ramifications from this incident. >> well, over 1100 have been delivered so far, 300 mortar. of the once delivered, only six are out of the system entirely. so this is a very reliable piece of machinery.

it is pretty clear that we have a pilot problem. adam: this seems as if investors are being agreeable. that was an ice crystals that they were saying in the . they had to redesign the fuel system. is that accurate? of all of them been updated? you cannot ignore the potential that it might the mechanical. >> you never can, but we know that it was like to slow. the engines might have been pulled back. the only other incident was a fire in the cockpit and the airline decided right the airplane off. that wasn't really even an accident. an ice crystals are to, pretty safe. adam: what about the possibility that this was some kind of communication problem between the tower and the pilot. english is the language of aviation, but could there have been a misunderstanding? >> i doubt it very much because it is a pilot in command that is in charge of making sure the airplane is flying properly at the right speed with the right flap settings. the people on the ground at the airport have no control or

input. i don't think there's anything adam: units and the dependability. it is competing with the airbus 350. with this in any way influence orders to go toward airbus as opposed to bolling? >> not this incident. it is pretty clear that the track record and that things have we know now, it is not a design flaw most likely. but that is not going to stop you from buying airbus airplanes. great pieces of machinery. adam: only to manufacturers of airplanes in this world. who is winning the war right now? is a boeing or airbus? >> it is neck and neck. there are all looking over their shoulders. so there is -- they are on their toes. right now is neck and neck. adam: as we look at the share price, another 52 week high. they have even a new version of the triple seven coming out, long range. >> yes. they have larger ones.

i'm not sure there's that much demand for super long range, but they're is a demand for that airplane as well as the 787 as well as for the airbus 8350. adam: if this was indicating so soon after the incident, pilot error, why didn't the tower notify them, perhaps, that they were too low or too slow? we have had people watching the plane coming and talking about it being at all weird angle. the black box communication indicated that they were worried about a stall. why did the tower one? >> the tower does not know what is going on in the cockpit. the tower does not control that part of it. and an eyewitness, 18 years old from seawater texas, i don't buy it. the fact of the matter is the pilot in command is the one who makes the decision. the tower in the last 15 seconds of arrival does not sit there and watch the airplane. that would be up to the group. adam: last word. investors, they certainly are disturbed by this. you see nothing in the future that would keep them?

>> not at all. the entire product line is super solid and they have a heck of a backlog. there's nothing going on to be worried about. adam: always good to see you. thank you. >> yes. lori: turning back to the market. alcoa kicking off second quarter earnings when it reports after the bell. eighty-seven of the 111 s&p 500 listed companies that offer guidance. my next guest is predicting 67 percent earnings growth, double the street. here to explain, assistant director of global market intelligence for s in b capital. always wonderful to have you join us for your expertise. this has become kind of a game. do you agree or not? companies and investors and wall street. why do we even pay attention to the corporate guidance? we know that these companies will be better than they said they're going to. >> keep in mind the historical trend. where we are getting this is taking the consensus, the s&p

consensus. we looked over the last ten quarters and we found that the consensus number and the data is typically just under 5% lower than where we ended the season. so i look over the trailing quarter. it's a little lower. so we think that is a little more realistic. we are getting that 67 percent growth by the end of the quarter. kind of a sweet spot. to your point, yes. it is true. companies are kind of laying the groundwork. they give out the guidance and analysts follow the guidance and therefore ratchet down estimates. as you have seen, they end up beating 65%. adam: you can't really fudge sales and it is about revenue. we are not expecting revenue growth. it would seem to me that this would be troubling. >> as we are looking for an historical average just about for earnings growth, revenue

growth is entering the second quarter earnings season with negative expectation on the top line. so that is concerning. the lowest expectation that we have seen since the third quarter of 2009, and you're exactly right. the company said gotten that cost-cutting and managing the cost. on the top line we are just not seen the growth, and it does it better to the second half of the year. we are looking at another low quarter. >> i was very surprised to see energy, one of the weakest industries coming up this quarter. >> revenues, that's correct. looking to be down about 15 percent followed by utilities a kind of go hand-in-hand. adam: where my we see revenue growth? if i am an investor, who would you talk about? >> we're looking at good revenue growth for consumer discretionary financials. some of the same companies where we are seeing earnings growth. with financials it is not so much a big bank story as it was, but we are suddenly seeing strength in capital markets and diversified financial services.

for the first time in a while reits are expected to be up 30%. of course we have seen great and improved housing data. that is certainly a leading. lori: when you talk about historical learning trends, do you expect that any time soon we will return to the high single digit growth rate? not so long ago. we are talking to, 3%. system along and -- so if we do get into that six 1/7% range it will be just about there. >> analysts to expect we will return to double-digit growth by the end of the year. that 11 to 12%. lori: that's a huge jump. >> right now we're looking for a recovering materials. expected to be one of the worst sectors for earnings, but the second half, 17 percent growth and a 27 percent growth. adam: why are they looking at that kind of growth of sales are down? >> year-over-year comparison, expecting difficult -- easy comparisons. it is inflating the overall

earnings growth number. materials, consumer discretionary financial of double digits. lori: we are set up. reporting after the bell. were you expecting? >> well, they are looking at $0.8 per share versus $0.10 a year ago. that will be down about 19%. every company from metals to mining is expected to be down year-over-year. we will see if they set the tone when the report after the bell. lori: setting this up beautifully for earning season. thank you. >> thank you. adam: making news, eliot spitzer is going back into politics. the former new york governor is making a run for new york city comptroller. stepping down as governor in 2008, as you recall, over a prostitution scandal. he has until this thursday to acquire the number of signatures he needs to get his name on the ballot. bowling to pressure from new york attorney general thompson, riders will suspend early looks at the university of michigan consumer confidence data. looking into whether

preferential disclosure faugh is of fair and appropriate business practice. two full seconds before a broader release. we are not high-frequency traders. can congress is back in session this week after the july 4th holiday. on the docket, the fate of the senate passed immigration bill. the house speaker has said the bill is a nonstarter in the house. a half trillion dollar bill also needs attention. last month the house rejected the bill. student loan rates which doubled , the one-year extension of the subsidized rate is possible. the best congress money to buy is back in session. ♪ lori: breaking news. direct your attention to shares of john group. shares of the fashion company jumping 8% report that the company hired a potential sale the company. the source said the brands

include nine west and jones new york. all right. next stop, 3%. the sale of the sell-off in u.s. government bonds has taken the market watchers by surprise. ahead, the new eye-popping forecast and pains that may still be to come. adam: also, michael dell winning a surprise to victory in his battle for his company. lori: a live report from cairo as virus -- violence erupts. an uprising. adam: right now we want to check oil and see how it is reacting. it has gone up. $103.207, even though it is beginning to break. ♪ my mantra?

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is putting out their provides certain value to shareholders. and it the risk of a deteriorating pc business. obviously they are pushing toward michael dell's deal. you know, we will see whether or not it is approved on the july 18th vote. i can leave out, his own proposal. strongly criticizing. fighting back and saying today that they are using scare tactics. and obviously pretty mad about the whole thing. adam: thank you very much. lori: it is time to make money with charles. following upon solar power product manufacturer canadian solar. adam: following up a mobile want to follow-up on a conversation you and i had about investing in solar. i was dogging the zero industry. and lori said, why the you tell people to buy solar if you do not like the industry? and it is a good point because i think so many people have to separate their personal feelings

, particularly politics. unfortunately i think conservatives have missed out on this rally big time. people who hate the president or dislike is policies, heat the fed, the missed 9,000 points. maybe they're breaking even at best. this is a case of that. and not a big fan of using taxpayer money to build a plan that creates ten permanent jobs, but i am a realist. canadian solar, today they announced the deal in north carolina. july 2nd, the solar facility. july 1st a 91-megawatt supply deal in thailand. a partnership. it $310 million deal, 130 megawatts and ontario. these guys have news after news after news. adam: what percentage of their business, if you know the metric, is actually government-funded when it comes to the canadian government?

adam: you can almost argue that it all is. the end user is getting a subsidy. a homeowner, the utility. adam: government contracts, a sizable portion. ms. the revenue stream is there. >> that is why solar city is a name that i talk about. i think when it breaks through 40 the stock will take off. now when i'm grappling with, had it on the show with you guys twice. it hit $12.609, up 26% gain in the month. time watching tv and some guy gives me a stock idea, i'm going to take profits. a final note on doing. i am grappling with taking it, although i think -- lori: dollar cost average. when not go that strategy. >> that is another. we will see. the stock is been as high as $46 in june a dozen date. that is tantalizing, although i really would take the time profits. thirteen, $14. lori: leavitt's.

>> a great conversation. lori: especially over a couple of beers. thanks again. on a serious note, more bloodshed in cairo as the egyptian army clashes with protesters. new calls by the muslim brotherhood for an all-out rebellion against the army. adam: also, eliot spitzer is back in action. ahead, charlie gasparino with what spencer told him about his plans to run for comptroller of new york city. lori: the dow climbing 64 points. we will check the dollar and how it is fairing. weaker mostly across the board. $0.94. versus the dollar. back in a moment. ♪ ♪

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♪ >> reporter: 22 minutes past the hour. this is your fox business minute. the search continues for the 40 people that are still missing after the explosion of that runaway oil tanker train. five people are known to have already been killed in the saturday morning disaster near the border. firefighters are still trying to

put out those flames on rail cars filled with oil. venezuelan president is again offering asylum to ns a leaker edwards noted, but the foreign minister says his country has not yet been in contact. and bolivia, nicaragua, also offering asylum. now three weeks since he arrived at the moscow airport transit zone. meanwhile in boston doctors are updating -- updating the condition from critical to fair. the wife of secretary of state flown to massachusetts general after doctors at a hospital in nantucket's stabilized her after she showed symptoms of what is believed to have been a seizure. those are your latest headlines. i'm jamie colby, sending it back to lori and adam. lori: think you for the update. the bloodshed continues. dozens more killed. the muslim brotherhood calls for an all-out uprising against the army. we continue to cover the action in cairo.

>> reporter: well, the political crisis and the violence continues. the bloodiest day since the egyptian military overthrew former president morsi just a few days ago. today 51 people were killed and more than 400 injured when the egyptian military opened fire on supporters. very conflicting stories about what actually happened at this location. it was near the republican guard headquarters which is where many people believe morsi is being held, although there it is not confirmation. according to the egyptian military, they were attacked and there was video that seems to provide evidence that they were attacked by supporters. there was a gunman apparently firing toward the military. we do not actually know and cannot verify if this video was provided by the military, but it appears to show one gunman firing toward the egyptian military. they responded with a flurry of teargas and live fire, injuring

51 people and moot -- warning more than 400. supporters say they were there peacefully demonstrating. very conflicting stories. as a result of this, a top muslim brotherhood cleric is calling for an all-out revolt. essentially calling for a civil war. this is the big concern, with the political divisions running so deep that this could really spiral into something much more dangerous and violent. the fear is that today could just be the start of what many, many days of violence. now, we are also hearing that the egyptian coalition is in power right now and also fracturing one of the leading parties that had been part of the coalition. now suspending talks with the anti morsi government coalition because of today's violence. lori: all right. very, very busy day. thank you for bringing it to us. for more coverage of the tensions, tune in to after the bell at 4:00 p.m. eastern for an

interview with egypt's richest man. he was instrumental in the first egyptian uprising that ultimately brought morsi to power. also, we have an exclusive interview with former secretary of state henry kissinger denied a p.m. eastern right here. adam: those concerns have been driving the price of crude higher. we are in the pace of the sea in the as oil it's a new 15 month time. lori: a bad day for bondholders. ahead, the new efforts to call investors down. first, let's show you, a huge sell-off because of the jobs report. down. still high relative to where we have seen it recently. we'll be back in a moment. ♪ everybody has different investment objectives,

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adam: we have news investors will want to pay attention to. it is news about the numbers in the rescue package for greece. eurozone finance ministers approved a staggered payment method. those payments will start with a 2.5 billion euro installment this month. a second installment, 500 million euro coming coming n october according to reuters. central banks and euro system will contribute 1.5 billion euros in july and 500 million euros in october. the officials say the international monetary fund will give 1.8 billion euro come this august. lori: let's get an update on the stock market here in the u.s. as we do every 15, back to the new york stock exchange with nicole petallides. you have one name up and one name down for us. >> that's right, a winner and a loser worth talking about. intel in particular has been a big laggard on the dow jones industrials have a couple

analysts cut intel obviously for similar reasons. citigroup and ever core partners are pulling back on intel and their outlook, concerns about pcs, the pc market forecast overall. citigroup did lower their numbers they expect obviously them to be worse than originally forecast. on the other hand priceline is doing so well because morgan stanley upgraded them to an overweight from an equal weight. a new price target. $1,000. now we know that in their latest earnings priceline did do well. they had a new way of booking. they have been expanding in emerging markets. that is good news ultimately for priceline. doesn't hurt when morgan stanley comes out with a thousand dollar price target either and hitting a new high today. adam: sounds like a good day for them. thank you very much, nicole petallides own the floor of the new york stock exchange. not a lot of good news for the gold or is it? phil flynn from the fox

futures -- price futures group is down on the trading pits. gold is down from the high of $1900 an ounce back in 2011 but the worst might be over? >> a lot of people are saying that not just deutsche bank. one could be the greece bailout. euro is higher. that always helps gold out. even from a more larger perspective, the second half of the year even in bear markets in gold generally tend to outperform the first half of gold. you get strong seasonal demand. you get the wedding season in india. strong holiday demand in china. that generally buoys the market. at the same time we talk about the 1200 is the cost of production. a lot of concern if prices fall much below there we'll see gold come off the market and that can drive us up a little bit. i think that's a lot what is in traders mind right now. i don't think deutsche bank is alone. i think more people are starting to believe that the end could be near. adam: people who worry about inflation would probably say the fact there are still trillions

of dollars worldwide on the balance sheets of central banks, another reason perhaps to buy gold? >> absolutely. central banks of course, they're in the big buyers in gold. they're the only people in the world that haven't stopped buying gold. if you put this selloff in historical perspective we've seen bigger selloffs in the past where the market rallied back. 80-81. 1970s we've seen this type of correction. yes, sir? adam: phil, the dollar is gaining strength. i would have thought oil would be coming down in price? >> i think it was down a little bit earlier but there are still ongoing concerns about the situation in egypt. i think you're seeing the risk premium come in earlier traders said we're back from the holiday but these headlines have been a bit disturbing. we're back and forth today on the dollar, on the stock market and also on headlines of egypt. right now we have a slight advantage, pulling back a little bit. it will be interesting to see how we end the day.

adam: phil flynn, thank you very much. happy monday to you. >> happy monday to you. have a good week. lori: the bond market has been anything but safe and predictable lately as friday saw the biggest one day selloff in 2011 on the heels of the jobs report. how should investors approach bond investing? let's check in with guy leblanc from january my montgomery. hi, guy. >> hi, lori. lori: your note says poor liquidity exaggerating swings. that is one reason we're seeing volatile swings, correct? >> particularly last friday. particularly sandwiched between a holiday off and the weekend there are a lot of people out of the office. on friday in particular when you add on to that there was a large european seller of treasurys at 7:00 a.m. when the markets opened, the markets opened, very, very heavy. when we had slightly better than expected or modestly better-than-expected economic data, the result was just

exaggerate the many times over. i think the response today with treasurys performing quite well is kind of a reversion to what maybe had been a normal response had there been good liquidity on fridays. >> you can't ignore the outflows, though. second quarter selloff in the bond market. second quarter outflows outpacing inflows for the first time in 2008. you even have bill gross, pim coy, the world's largest bond fund manager saying one to two month performance numbers are a blip on 40-year history. you've seen this tweet, right? pimco marchs on a long-term path. where are we and where do we go from here? >> i agree with that philosophy in general. most bond investors and institutions are judged on a long time horse son. they're saving for retirement. they're trying to resieve positive returns. the long aol time warner horizon is very important thing to keep in mind. one other thing -- lori: sorry to interrupt you

guy, hi, on consumer level if you're taking out a mortgage, this is tricky time to time it out properly. if you're seeing huge swings in interest rate moves, where will it stablize? can you answer that question using the 10-year benchmark? >> we're looking the 10-year treasury to end 2013 between 2.50, 2. off which is not that much different than where it is today -- 2.60. 2014 in the mid 2.70s area. inflation remains quite depressed. eventually the fundamentals will take over what is technically driven back up. lori: are you on board with goldman saks forecast? they're extending the outlook on the 10-year-year-old to 4% by 2016? >> i think i got to be honest say our crystal ball gets pretty clouded right now. we're entering very much uncharted economic times and fed balance sheet unwind we don't know whether it will take a

couple years or couple decades in some respects. trying to establish more than a couple years down the road where we think 10-year yields will be is a tricky exercise. overall bias is obviously toward high rates but it will be a slow process. lori: except in your note you talk about the muni issuance, some of it is a big portion is day-to-day. that raises the question of confidence too. there is really conjecture where this market is headed whatever product your preferences? >> there is financial market. there is always a little bit of uncertainty and i agree the uncertainty in the last couple weeks have been exaggerated. to take the muni comment when the day-to-day issuance means a certain number about issuers have bond deals to sell but they're not sure whether they will sell them because market conditions might not allow them to achieve advantageous savings, for example if they're refinancing other outstanding debt. that is not so much of a concern. lori: guy la blanc, janney montgomery scott, chief fixed income strategist and lot of fun on twitter. follow him there.

thanks a lot. >> thanks, lori. adam: client number nine, former governor eliot spitzer is planning a political come back in new york city. lori: got to ask charlie about that because charlie spoke with spitzer this morning. owe joins us next what he will learn. plus a look at his new book, "circle of friends." adam: plus a look at who is winning and who is losing on the dow. a lott more winners right now. h. plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

>> i'm cheryl casone with your fox business brief. the sequestration is now hurting the unemployed. the national employment law project found that the program which provides benefits to the long-term unemployed will be cut by $2.4 billion. average unemployed worker receiving weekly benefit of it $89 will see it -- $289 will see it cut 15%. eli lilly says frank lick lighter will return as chairman and ceo. he has been out on medical leave since may. he has been cleared by his physician to work full time. he says i return to lilly with renewed energy and enthusiasm, end quote. new york city will have to play for bloomberg terminals, what mike bloomberg left office, since he took office back in 2000 that. that is latest from the fox business network, giving you the power to prosper.

lori: the new sheriff continues to pursue sac capital and possible charges related to insider trading. the old sheriff, eliot spitzer is looking to get back in public life and has interesting perspective on the case. charlie gasparino has interesting perspective. you had one-on-one. >> it was a little awkward, i was going on national tv shows, cbs this morning, spitzer gasparino summit t was interesting because we sat down. he is running for comptroller. the news broke last night. asked him interesting questions. let's face it, spitzer was the sheriff of wall street. i asked him about the relentless pursuit of preet ba raw haw, and sac capital and steve cohen with insider trading charges. he had many so interesting perspective. he said, this is case that may not result in criminal charges directly against cohen. something i'm talking about a

lot. it is hard unless you got mathew martoma flipping. he hasn't flipped so far, right? they may go other avenues. people forget he is just new york attorney general. he was a u.s. attorney as well i believe. he worked for morgantheau's office where he brought mob cases this guy was a real prosecutor. he says listen, two things. he thinks there is very good chance to bring subsidiary case against sac or calling himself on civil basis. sac may be charged, the firm. steve cohen is hardly out of the woods yet. i asked him about march tomema. that is the key link. mart toma indicted. -- martoma. before he made the trades in elan and made and save ad lot of money for sac. people in the justice department believe he shared something together there is no proof and martoma is not flipping.

i said, why do you think martoma is not saving his own skin, when you look at all the charges, looking at superseding indictment and they can throw the book at him. it is interesting, until you walk there you see the jury you think you can beat case as lot of times. lori: that is very telling. >> that is a guy who has been in front of a law of juries. he went on the air and i went on the air to talk about my book which is interesting. adam: has he read it? >> yes he read parts of it. parts of it are fairly positive to him. but i think that kind of encapsulates it. i think the journal story was, like the "new york post" story today was a little bit too much. "new york post" today says corzine will not get charged. we knew that for the longest time. by the way the minute they don't bring the cftc doesn't bring a fraud charge how will they charge him criminally? that is logic. we've been talking for months the feds have said they really don't have a criminal case here. i think the other thing is the

journal story about no criminal case on the martoma trades with cohen. we knew that. that is not new. what is new all the other stuff we're talking about. them looking at potential rico cases all the sort of outside cases even potential civil case against cohen which could shut him down and throw them out of the business. i got into it with spitzer and asked him a few questions about his run. he doesn't think the public cares about his prostitution scandal. lori: i think you helped spitzer. you write about the time he was considered the sheriff of wall street. >> and i -- lori: is that too far fetched? >> he did bring one of the better cases ever brought by the feds that affected small investors. one of the things i do in this book, insider trading is a big story. people are going to scale for decades. athlete a decade. raj is -- lori: how -- in the book? >> i don't even know, dozens. i focus on three individuals, raj and his case. lori: galleon case. >> that is the galleon case.

david and operation hedge and brought down insider trading case known as "octopussy" which is interesting. lori: that is james bond reference. >> he is a guy. he went under cover. i get how tough it was to go under cover. i focus a lot, half the book is about steve cohen and how long they have been pursuing him. i go into the investigators. preet get as lot of press here. sanjay at the sec. long time sec investigator. he actually uncovered both. the raj case, galleon, case. and he uncovered latest thing with martoma. key in both those cases. shows you how good he is is. people forget the fbi was key here, a b.j. kang, long time investigators who kind of led sanjay on the, on the tail of

martoma which is basically fascinating. he flip ad key witness in raj. it is all in the book. lori: looking forward to my copy. charlie, thank you very much. adam: check the markets as we do every 15 minutes. jonathan corpina on the floor of the new york stock exchange. the dow is still in positive territory. is this more than what we saw on friday or something else in play here? >> i think a combination of a few things. yes, follow-up from friday. not a lot of people paid attention to the market on friday. we saw a lost volatility with numbers that came out of washington which will help investor sentiment come back into this market. i think people are playing catch-up. the second part is we're getting into earnings season. alcoa reports after the bell. people tell us how the alcoa earnings will give us foresight what earnings believe. i don't particularly believe in that but just the fact we're getting earnings season, historically over time people use that a good opportunity to

buy in to the market and market rallies usually during earnings season. adam: jonathan, thank you. >> thank you. adam: on the housing front, the latest reading regarding mortgage delinquencies and what it says about the state of the housing recovery. lori: meantime, the top winners on the nasdaq during this monday's trading session. netflix tops the list. a gain of approximately 4%. we're back after a short break. all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. [ lighter flicking ] [ male announcer ] you've reached the age where giving up isn't who you are. ♪ this is the age of knowing how to make things happen. so, why let erectile dysfunction get in your way? talk to your doctor about viagra.

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lori: breaking news. you're looking live at cairo's tahrir square as we learn the white house is saying it is reviewing aid obligations but says it is not in the best interests of the united states to immediately change the aid program currently going to egypt. the u.s. gives $1.6 billion each year in aid to egypt.

adam: there is a new report out today which shows the housing market is continuing to improve when it comes to homes underwater as well as delinquencies. peter barnes is in washington explain why it is good news. peter? >> hey, adam. the numbers of homeowners who are underwater on their mortgages has fallen about 50% in the last year thanks in part to rising home prices. according to the new report from lender processing services about 7.4 million borrowers, just 15% of homeowners with mortgages owed more than their, owed more on their loan than the value of their property in march. that is down from 13.9 million doll rowers a year ago and from the peak of 17 million borrowers two years ago. more homeowners with positive equity in their homes helps keep down late payments and foreclosures. people will less likely walk away from the properties if there is equity and upside. lps says we're not out of the baste h basement yet in the housing market.

>> we had significant improvement. you look where we were even before the crisis from, the look at the 1995 to 2005 period as an example. we're still about 50% higher than on the delinquency side of things. >> some states that got creamed in the housing bust have seen sharp drops in negative equity in the last year. it is down to 18% of homes in arizona, 53% drop from a year ago. in california it is down to 15, about 15 1/2% of 51% decline in the last year. adam. adam: thank you very much. peter barnes. lori: game, set, match. andy murray becomes the first male winner from the u.k. to win wimbledon in 77 years. after cleaning up on the court, he stands to clean up big-time with the sponsors. sports marketing agency, brand rapport, estimates his off the court earnings could double from 11 million to over $22 million. murray already has deals with royal bank of scotland of

course. adidas and, switzerland a division of swatch, the watch company. the 26-year-old is in good hands. his management team is the same of that other british superstar, david beckham. footballer or soccer, whichever way you choose to describe. adam: is it adidas or adidas. i say a deed sass -- adidas. they do it as kind of like fun. maybe nike is going back and adidas. those of us kids in the '70s and '80s remember that adidas was very big. lori: especially if you like rap, i don't know about that. oil is at a 52-week high after surging for the last two weeks. where will it go here? john hofmeister joins tracy byrnes and ashley webster next on fox business. markets now. you don't want to miss this.

ashley: welcome back, everybody, i'm ashley webster. tracy: and i'm tracy byrnes. high hopes for corporate results give stokes a positive monday. the dow is up about 97 points right now, back near session highs. it is trading within 200 points from its all-time high of 15,409. we'll tell you the biggest winners and plus what to expect from the second-quarter earnings results ahead. ashley: for the canadian train disaster sparking new debate over the safest way to transport oil. is it by rail or through a pipeline? former shell oil president john hofmeister, he will be along to share his take on this story coming up. tracy: we're still looking for answers in the deadly crash of that boeing 777 in san francisco. the national transportation safety board is briefing reporters this hour. we will undoubtedly bring you the very latest on that. >> first, it is the top of the hour. look at stocks. another day of lots of green on the screen. let's go to nicole petallides on the floor of the nicety. not another manic monday.

quite nice, nicole. >> right. we had several days with up arrows. we had two straight weeks of gains. the dow is up early nearly 100 points. getting close to the high society earlier in the session highs. he were earlier today up 127 points. most of the names in the dow continue to do well. names in the s&p 500 doing well. 79 stocks in the s&p 500 hitting new 52-week highs. that is worth noting. a couple things for the market and a couple stocks on the trends we're seeing. on friday we saw higher dollar, higher treasury yield, higher stock market. you knew something had to give. the dollar is pulling back, the treasury yield is coming down yet trademarkket is still to the upside. traders tell me that is new money is coming into the market that is john's point during, season. look at two names in the news. dell we follow closely as michael dell and silver lake are moving forward. iss institutional shareholder

services which is touting that bid and pushing off carl eye on kahn's bid. carl icahn says it is scare tactics. we'll wait and see. the vote is july 18th. intel cutting in every way, shape and for, cutting numbers about the pc market. evercore partners, downgraded intel from equal weight to underweight. intel is down 4% and obviously the dow and weighing on the dow partially. back to you. ashley: thank you, nicole. we'll be back in 15 minutes. >> our next guest isn't bullish on the u.s. consumer and it could actually help stocks. thanks to low inflation and declining commodity prices consumers will keep their wallets open, do a little spending this next quarter. joining us, margie patel, senior portfolio manager at wells fargo capital management. i know you still like consumer discretionary an consumer staple

companies because the consumer is out there hopefully shopping. haven't staples had their run already they? >> they have had the run but i still think they will do pretty well because consumer spend hags been robust. we're gradually adding new employees to the workforce. with inflation down people have more money in their pockets. all those say, staples as well as discretionary will continue to have pretty good earnings. @shley: margie, so much is is talking about the housing market. with the rising rates, how concerned are you? or on the other hand, could that force those on the fence actually jump in the market? which way do you see it? >> i think rates are so low that even if they moved up from these levels the affordable factor is very, very high. i don't think that will put a real damper on housing. also i think housing, because it is such a labor intensive sector will help to contribute to new employees, part of the new construction process. so i think all of that is really

positive. tracy: i think you make such an interesting point in your notes. we have been waiting for one sector in particular to pull us out of this recovery and it hasn't, right? first everyone hoped it would be technology. now we're back to maybe relying on the financials? earnings look pretty decent for them? >> i think financials will be a pretty good sector. there's still cost-cutting. also i think they will begin to see an increase in loan demand which will be very positive for the financial sector. >> margie, talk about earnings season which kicks off after afe bell with alcoa as it does. looking in the first quarter, do you think we'll see earnings growth to maybe come in several percent better but revenue overall flat? >> well, that is what i'm going to be looking for to see, are we seeing any signs for revenues starting to pick up? companies have been very good at keeping their profit margins high and raising profitability but could we finally see

revenues pick up from some of these sectors? that would be a very positive factor. that is something i'm going to be looking for when we see earnings reports. tracy: if we don't though, to ashley's point, is that when we expect to see this grand pullback that we haven't seen yet? we saw a little temper tantrum a few weeks ago. the big pullback could really come if guidance is crappy. >> well i don't think guidance is going to be bad because the u.s. economy is in great shape. it almost looks like europe is sort of stablizing. and i think with input costs being very modest i think we might see companies continue to have pretty good profitability. so i'm not looking for profit margins to come down. i think we may have seen the correction of the year with the little taking off of leverage. i don't think we'll see too much of a downdraft over the rest of the year actually. ashley: how concerned are you about this strong dollar? it must certainly hurt companies that rely on exports. is the strong dollar good or bad

overall do you think, margie? >> we may see some companies hurt when they translate their earnings into u.s. dollars but that is a transitory factor. i think what is more important it's going to help consumers because as the dollar goes up, that helps their buying power to be a little better. also i think it is why treasury rates will be really in a trading range to not go much higher. if the dollar goes up for a foreign investor they get not only currency play and appreciating dollar plus income. those foreign flows might help keep treasury rates relatively more modest than people are thinking. tracy: margie patel, we'll all watch the earnings season closely. thank you very much. ashley: thank you very much, margie. we're watching europe of course. it has been quiet by comparison to a year ago now. certainly a mixed bag of news for greece. there are always problems paying back the debt. the debt ridden country getting

another round of bailout funds that is good news. european finance ministers approving a staggered payout starting with 2.5 billion euros in the latest round of aid. this comes as showing that the country's economic future is quote, uncertain. really? greece's creditors reach ad day on new reforms included layoffs. that has the public up in arms. thousands of people are filling streets of athens protesting public sector layoffs. it was a big part getting the money in the first place. those losing their jobs are not happy but it's a difficult situation. tracy: how will you fiction it? ashley: you have to cut back on the huge public sector so people are not happy. tracy: they have or high unemployment so there is that. latest on the crash of the bowing 777 asiana flight in san francisco. investigators focusing on the speech of the approach or lack thereof.

rich edson has the details from washington. hey, rich. >> tracy we'll get a briefing at the bottom of the hour which is expected from san francisco. investigators say they're focused on the crew. the black box and recorders are in the washington area. the national transportation safesafety board says the preliminary data says no alerts of mechanical failures or distress calls from the crew. instead the ntsb says the boeing 777 came in too slowly specifically below the target speed of 137 knots. it tried another pass but failed. the plane crash understood the run way resulting in two dead passengers. the ntsb post-traumatic stress disorders that the investigate is in its early stages though the focus is on the flight crew. the pilot has nearly 10,000 hours of flight time though less than 50 hours in those boeing 777. >> we are hoping to interview the pilots. there were four pilots on this flight. there's a crew that flies out. there's a relief crew because

it's a long trans-pacific flight. so we do want to interview all four of those pilots. we want to understand who was the pilot flying. who was the pilot in command at the time of the event. and what was going on. >> we're scheduled to get the latest on the investigation in less than a half hour. meanwhile the stock price for the airline, asiana, fell more than 5% today. back to you. tracy: rich edson, thanks for covering all of this for us. ashley: much more to come this hour. the montreal train disaster raising new questions about the safety of moving oil by rail. former shell president john hofmeister weighs up that story coming up. tracy: speaking of oil, let's get a check on it right now. your dow is up 95 points. oil barely budging, down about 50 cents, still over the 100-dollar pivotal mark. $102.73. we'll be right back. i want to make things more secure.

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getting to goal is important, especially if u have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. and that's why when diet and exercise alone aren't enough to lower cholesterol i prescribe crestor. [ female announr ] crestor is not right for everyone. like people with liver disease or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines you' taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. tracy: it is monday. we've got to make some money. charles payne is here. we have to talk markets. stocks ending with, extending

their gains for a third session. what do we expect, earnings season, you name it, we've got it going on. >> we do have it going on. you know what i like, guys? i don't think we talked about it enough today. the market swoon came after ben bernanke made comments about tapering. >> yeah. >> yields have gone up. bond have gotten hit pretty hard. last week the general consensus on wall street was, okay, the tapering is coming in september. and it is going to be anywhere between 20 and $30 billion. ashley: right. >> so wednesday we opened, went down. closed near the high of the session. same thing on friday. remember we had the open. gave all the gains away. we didn't know part egypt, part jobs report. tracy: right. >> same thing, had a nice rally into the close. today we waffled a little bit. who knows, looks like we're building a head of steam. i say be careful. ing people are saying tapering the market will get hammered but watch the action of the market itself because for me i'm always wondering i think the sellers

particularly in the morning are rally fades are novice sellers and individuals. at end of the day the same professionals telling everyone else the sky is falling. i'm a little skeptical about it all. i do like the idea wall street may be accepting that the fed is going to taper here. we know it is inevitable. ashley: of course. >> maybe they're accepting it. if the consensus it is coming in september that is pretty good. tracy: doesn't that just add to the confusion case? if you can't believe the pros and you're saying pros are talk

tracy: you're seeing that one continue do so well. global sales are up 13%. look at other names. look at lear, a delphi. o'reilly. all of these names doing so well. some have pulled back. they hit 52-week highs and all-time highs. if you buy the cars. you need parts too. >> thanks very much, nicole. we'll be back at the top of the hour. tracy: i should learn how to fiction my car. >> save a lot of money. tracy: oil prices trading near

their 52-week high after, rising 10%. a gain of the last few weeks. former shell president john hofmeister weighs in on oil's next big move. ashley: look how the u.s. dollar is moving right now, against these currencies. as you can see the currencies are up all against the dollar. europe up is 128.66. u.k. pound is just under the 150 mark. we'll be right back. to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. oh, you guys! and with double miles you can actuay use,

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>> we have breaking news for you. texas governor rick perry, just announcing i will not seek a fourth term as governor. he is the longest serving governor in texas history, taking the job when george w. bush, went to the white house. meanwhile the state department says the u.s. is deeply concerned about the increasing violence we're seeing across egypt. at least 50 people have been killed. more than 300 injured after clashes erupted the last ones at least outside of a military building in cairo. eyewitnesses telling fox news, muslim brotherhood supporters have ousted president mohammed morsi were fired upon during morning prayers. >> venezuelan president nicholas

maduro is offering asylum to nsa leaker edward snowden. bolivia, nicaragua also offering asylum. it has been three weeks he arrived at the moskow airport transit zone. we'll keep an eye on headlines. keep it right here. i'm jamie colby. back to you ashley. ashley, jamie, thank you very much. this is highlight the with the increase in train related oil traffic over last few years. this comes with the critical debate on oil pipeline. citizens for affordable energy, john, thanks for joining us. a lot to talk about. what we've seen in canada, awful accident, involving a run away train essentially. does this have any impact on the debate over whether it is safer

whether to transport crude by rail or pipeline? >> well, i think the experts would say, that one of the reasons we have so many pipelines, in this country, moving petroleum products as well as crude oil is the fact that pipelines are generally safer. if you maintain pipelines, if you design pipelines properly and install them properly. they do not have the ongoing mechanical issues that rail does. rail is quite useful. rail can transport many, many things. but as we saw here over the weekend, rail accidents can be devastating tragedies. and when people die, when half a town is burned down, railroads go through towns. pipelines generally don't go underneath towns. they avoided towns. so all in all, pipelines are more economical. i believe they're safer. i believe they transport oil more efficiently. and i think that the debate of

rail versus pipelines has really never going to end because there are different people that have different views. ashley: do we have to infrastructure in place for the amount that is being transported both on rail side and the pipeline side? >> well, no, we don't have enough infrastructure period. we don't have enough rail infrastructure period to move quantities of oil and frankly i think it is unlikely to build enough rail in timely way. we don't have enough infrastructure for pipelines, one of the reasons we're paying so much for oil. ashley: on the issue of key tone pipeline does this -- keystone pipeline, does this hurt or help the debate. this can be potentially dangerous thing for crude even by pipeline. does this help for the case of the keystone pipeline? >> well it is a certainly a graphic and tragic case to be made for pipelines. but pipelines also have accidents. as we saw in little rock,

arkansas. now nobody died. there was no fire but there was an ugly mess. north of little rock i should say. pipelines can create problems, especially when they're old. once again i think, that the experts know that whenever hydrocarbon is being transported there will be risk. but if we want to drive cars, we're going to have to accept a certain amount of risk and the safer we can make the risks oriented rail or pipeline the better off we are. ashley: you mentioned driving cars. i want to talk about prices. wti up at $102 a barrel. because of what we're seeing in egypt and the repercussions that could have in the region where do you see prices going in the next month and by the end of the year? >> well i think we'll see them incrementally higher but not substantially higher, unless, this is a big unless, unless this shia-sunni divide in the

region gets worse, rather than better. if it gets worse it could spread, migrate across the region. little pop-ups could occur anywhere? in the region where sunnis and shia tried to live together. i think what the west underestimates i got this loud and clear last week when i was in saudi arabia, the west underestimates the enormous tension built up in the region particularly driven by iran and iran's efforts to unsettle the west between the sunni and the shia. and this is a historic period of tension, taking us back, many being many decades, centuries even to what is arrive alary but has always been there. and so if we have unsettled this, and for example, opened pandora's box, this could have huge volatility on the oil price, particularly if we see tensions spread further across the region.

ashley: that is something that iran would love to see. john, quickly you were in saudi arabia. was there any talk about increase in oil, crude output here in the u.s. and what that means ultimately for saudi arabia? >> i was there to speak to them about that whole increase. so that they could learn more about it and make whatever steps, whatever decisions they need to make. they're very impressed about what the u.s. is doing. they would be even more impressed if the u.s. government got behind efforts to increase domestic production. and so that we could truly see a dramatic turn around. they would love to see a strong economy because a strong economy in the u.s. means more demand for oil. they're there to serve the world's oil because they have so much of it. ashley: very interesting stuff as always. john hofmeister with citizens for affordable energy. thanks so much for joining us. >> thank you. >> all right. good stuff, isn't it? tracy: very. ashley: he knows his stuff. coming up more changes to the president's health care law.

find out what it means for you and for uncle sam. tracy: means they don't have a clue. as we head to break, let's look at some of today's winners and losers on the s&p 500. speaking of oil and energy, peabody energy, consol energy are your big winners. we'll be right back.

♪ tracy: 90 minutes until the close. take a look. we have been talking about how tech has been disappointing everyone, and the only read this tech. microsoft, cisco, hewlett-packard, intel. nicole petallides certainly not as disappointing. on the floor of the exchange. jal is not a disappointment

either, up 90 points. >> reporter: you are right. we are seeing a great day on wall street. gains great for the bulls. hot on this market. new money is entering into the market as well. right now the dow is up about 90 points. most of the names to have up arrows. a lot of names of setting new highs, including boeing and best buy food. it is easy to find. a name we are very familiar with. a 14 year high. morgan stanley. obviously they have had a great quarter. a new price target. they operated. the price target of over $1,000. we will watch that. they have been expanding in the emerging markets. they have no way of looking. obviously a lot of traders out there and analysts more importantly love it, what they're seeing. tracy: thank you. we will see when a bit.

ashley: president obama speaking earlier, outlining some goals for his administration during his second term. peter barnes is all over the story in washington with the details. >> reporter: the president calls the cabinet together to urge his deputies to embrace more technology to make government more efficient. he said examples of more streamlined user friendly governments that he adopted, digitizing federal disaster relief, for example, including the phenom mobile application to help victims of hurricane sandy did disaster relief more quickly . individuals and companies can now access massive amounts of data to save money or create jobs. >> it makes sense for us to be able to redesign government so that it can deliver on the functions that the american people looking for. we should go on a government that is smart, quicker, and more responsive to the needs of the american people. >> reporter: the president noted that after is election he had to fight to keep his

blackberry as president. republicans have criticized the administration for creating new regulations that they say are hurting economic growth and job creation. the president has asked congress to give them more power to consolidate government agencies. so far it has not acted on his request. ashley: all rights. tracy: there is a shocker. ashley: efficient government. no kidding. tracy: everything will be better. give everyone and iphone. all right. meanwhile speaking of cynicism, learning more about the changes the administration is making. reported that the employer mandate would be delayed. the individual, just the employer. now we know that the government will scale back over what applicants to their health care exchanges say they aren't. journalists -- this is so complicated and such a mess. >> reporter: is such a mess. the keep delaying more and more.

so health and human services, in case you missed it, friday the fifth, late in the day, as 600 page rule. i give you the cover page because i did not want to wait. in this there was language, if you could understand it, which was difficult. they will no longer attempt to verify individual eligibility for insurance subsidies. so, bill apply for insurance coverage on one of these exchanges. no one will check what your income is. ashley: you get these subsidies if you could prove -- legacy don't have to prove. if your business is offering coverage, and affordable based upon what you are earning, then you would be eligible. tracy: companies don't have to do the reporting. the individuals don't have to do the reporting. it is an honor system, and i have to tell you, this is crazy. here is the language. except that the station without further verification. mike and my whole life be like

this? >> it works so well on your tax trouble. tracy: think about it. this honor system has failed us miserably and put us into the debt we are in. >> it's interesting. remember during the mortgage bond. there was no and come, no verification. this is exactly like that. the federal government will take your word for it. they don't do that in any other realm. here if you want it will give it to you. why i believe this could be a reason, in part because they are afraid not enough people sign up to. ashley: that is what it is. >> booze the numbers. give more people involved in the program. that is the goal. i tell you, the taxpayer at risk ashley: funding a lot of this. >> the cost will balloon. we will talk about this tonight. we will also talk about the airline that went down over the weekend, the plane that went down. we are talking -- taking a look

and how all those people, so many people, hundreds of people were able to walk away. what has changed in the airline industry that allowed that to happen? the differences in the kinds of work that the stewardesses do, the plans themselves. what has happened? it is an interesting question. if he saw the fire and smoke. tracy: we are looking at. those flight attendants work hard. the strongest women on the planet. don't miss the willis report. right here on the fox business network. breaking news. oil edging lower on the day, closing down at $103.14. that actually snapped four straight days of gains. ashley: did not drop by much. now something a little sweeter. perfume is a six and a half billion dollar business with over 100 new fragrances lost in the u.s. every year.

jeff flock is our perfume expert with one perfume ceo who gave up stocks hoping to find the sweet smell of success. >> reporter: we are in the fragrance lab here. a true fragrance. you're looking for company that you could grow as an entrepreneur. you found one. this is a business that this does seem to have a downside. >> we certainly paid some good spots of the last couple of years. we have done very well. our fragrance has been an entry point. it has been terrific. >> reporter: a private label. perhaps ec. private label fragrances. you do this unique thing, taking a city like chicago then making a fragrance of the city. you grow the flowers in chicago. >> we do. we have located 27 gardens around the chicago land area. very much in kind of a patchwork

connection, like many of the neighborhoods around chicago. >> reporter: growing these flowers. what is that? >> that is lavender. that is growing in grant park as we speak. >> reporter: that is patchouli. they are planting gardens in the city and in creating fragrances. >> that's correct. a boxing have in front of you is from our initial harvest which was last year. in our second harvest is now in the ground and will be harvested in august. >> reporter: taking a look, the big boys. just watching an ipo generating about a billion. this is the high profit margin. >> it is. any time where you are creating a brand you're taking a risk. there is also a lot of reward to go with that. >> reporter: the average, $63. these are the experts right here .

ashley: we will take your word for it that it smells wonderful. thank you. the smell of chicago. just wondering what the smell of new wireless. tracy: that is let the biggest pickup scene ever. sense and perfume. ashley: loving it. tracy: all right. coming up, solid weekend at the box office. it could signal a comeback for one of hollywood's biggest studios. ashley: first, as we do every day, let's take a look at the ten and 30 year treasurys. the yield is down today, down ten basis points. meanwhile, over on the 30 year, the long term is down seven basis points. we will be right back.

♪ >> reporter: i'm jo ling kent with your fox business brief. homeowners zero more money than their properties are worth thanks to soaring prices. 20 percent of the nation's mortgages were under water at the end of march. the dollar under pressure. suspending early looks at the university of michigan consumer confidence data. looking into whether the preferential disclosure of data is a fair and appropriate business practice after releasing the data to fall seconds. full disclosure, fox business does use some products.

and eli lilly announcing their returning as president and ceo. out on medical leave since mid may. cleared by his physicians to return to work full time. as the latest from the fox business network, giving you the power to prosper. ♪

♪ ashley: breaking news. the ntsb updating reporters on a plane crash in san francisco. we have new details from washington. >> reporter: good afternoon, and this is a focus on the pilot schedule. the ntsb chairman saying that she is looking for the pilots sleep schedule, health, and anything that could have affected the way that the pilots were flying the plane. she did mention the one pilot, the one who has been the focus, the one who is leading this with 10,000 flight hours combined, but less than 50 flight hours on

the boeing 777. he said that there was also another captain there who was involved in his training. working on getting his certification along with two other captains. the ntsb says they're working on speaking with all four pilots to figure out who was in charge of the time of the crash and what exactly transpired. just to reiterate, the captain who was on this plane, the one who had or was supposed to have the controls as 10,000 flight hours, fewer than 50 on the boeing triple seven and was working on getting his rating, as the college, getting trained up. for pilots and there are looking at anything that might have influenced or affected their ability to fly that plane. back to you. ashley: thank you very much. appreciate that. tracy: not very comforting. all right. dominating the lone ranger.

it's a good thing. the box office this weekend. one small part of a bigger comeback story. you know i saw this and i loved it. >> reporter: that is only the latest for comcast universal. on quite a roll. raking in as much as 142 million over the weekend. it beat the record for torre story three. open number one in 40 to a 46 markets and is now near 300 million worldwide. it is only the latest. a year ago hollywood basically thought that three top executives were dead walking. the melting of the movie lost a hundred and 50 million. one year later riding tall in the saddle. now, as -- in the past 12 months

universal has had ten of its 14 new films open a number one. finishing number one. for holiday weekends. a billion in ticket sales. faster than ever before been hit over 3 billion, the highest in their 100 year history. the two top-selling soundtracks of 2013, the highest grossing are ready, the ever which took in almost 600 million. comcast stock has done very well, up 35 percent compared to a 20% rise. but with a string of these successes, the economics of hot today and not to mar you have to wonder whether it is now time for universal to stumble. not to worry. it turns out of the next 95 fell as universal as lineup for the next two years, ten of them are sequels. in hollywood, nothing succeeds like a sequel. tracy: i love it. i cannot believe he said ted was the highest grossing.

that was the stupidest. >> how many parents went to the movie thinking it would be about a teddy bear. ashley: thanks. it is a quarter till three time for stocks as we do every 15 minutes. it said back down to the new york stock exchange. well, you know, here we go. reporting after the bell to get the earnings season under way. what are you looking for? what are you expecting? >> always exciting. i know people look at alcoa and the numbers that come out there and try to basically, based of hollings. what i do like to see is two things. one will be the forecast moving forward, especially with exposure to europe. the second part will be cash on hand. i like to use cds, the companies with the type of gas that they have on hand.

they have a few things to do. it will buy back the stock, invest in their own infrastructure or by other companies. so looking at that is a good bottom line number to look for. ashley: very good stuff. thank you so much. tracy: earnings season, just over an hour from now. will corporate america make it as season to remember or forget? the bar is a little higher than it has been. richard peterson has a preview next. ashley: first, was to collect some of the day's winners and losers. the nasdaq as we head to the break. we will be right back. ♪

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tracy: we are just over an hour away from the unofficial start to second quarter earnings season. alcoa, of course, set to report first. we could see earnings growth of six to 7%. joining is now, richard peterson, global market intelligence director at s&p cute. that sounds pretty lofty. >> if you look back at the first quarter numbers, april, expectations were for less than 1 percent growth. the numbers weren't. 5%. so historical the analysts really bringing the numbers to overtime. a bounceback of reporting season tracy: they set the bar solo that companies have the option to jump over it and make it. >> again, looking for, 6% for the third quarter. 11% for the fourth quarter. analysts like to take a cautious approach. tumultuous time. the fact that we saw interest

rates climb. analysts naturally became more welcome to go with their initial gut feeling and lower the bar. tracy: that is the thing. no one will go with their get any more. what do you think the guidance will be overall? >> it is a cautious outlook. sector b itt, face value looking for that decline. we take an apple, those numbers improved. we talked earlier about it. the s&p in aggregate. apple ghost of just under 4%. tracy: what is the deal besides the fact -- >> is just the comparison. materials are supposed to be the worst sector. fast forward to the fourth quarter. one of the better sectors. about a 20% gain for earnings.

again, 2012 numbers. tracy: consumer discretionary and financials expected to be the big leaders. >> looking at the housing improvement, capital markets, the activity, of 40% year-over-year. capital markets have been well. tracy: it is not just loans. these banks are doing business. >> absolutely. tracy: consumer discretionary. we are relying on the consumer to get out there and do some shopping. >> like etail sales. reports with retail sales numbers at the high point of the year. the consumer. you have the housing market, the restaurant recovering. a good ipo. so reflective of consumer going into that sector. tracy: i'll agree. what about this big downturn that everyone is still waiting

for. we have a little bit of a blip, but it was not the ten to 12% the people were looking for. do you think if earnings truly disappoint we will see that? >> the s&p 500? if you look back in may. we reached the 1650. we fell to under 1598 in early june. like a five or six percentage decline. that could have been a pullback. here we are less than 2% away from the record nine. tracy: you are expecting a pretty decent quarter. >> the current numbers, but of 3% increase. but then we should be between six and 7%. tracy: i hope you're right. thank you for being here. ashley: attention. it is your lucky day. a number of the most popular applications and now available for nothing, and there are some big savings. an application used by deejays the remixes songs.

it is free. down from its 1999 price tag. games are available. about $6.99 for a definitive blade to. completely free. the fire sale is an honor of the five-year anniversary. there are a gazillion of them. free is a good price. tracy: five years to last longer than some marriages i know. coming up, one of the richest businessmen. at the epicenter of the uprising . why he was forced to flee egypt. we will take you to the last hour of trading. countdown to the closing bell is next. don't go anywhere.e of vtual ♪ all your imptant legal matters in just minutes. protect youramily... and launch your dreams.

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♪ liz: it is game on for second

quarter earnings. alcoa received the kickoff. how far the dow component runs with the earnings. whether the smart money billy's we could bank on a robust second quarter and which stocks might be team when is for your portfolio. the deadliest days. dozens killed in cairo. the egyptian billionaire and chairman of the country's major telecommunications company he says the muslim brotherhood threatens he and his family. and al the use the box office? how about l-o-n-e? beging to gain. good to be a despicable and tiny ? comcast and universal laughing all the way to the bank. ♪ "countdown to the closing bell