consensus. thank you so much, stuart. the growing unrest in egypt, rejecting the timetable announced by the military interim leadership. we have a live report and analysis from kt mcfarland. inflation on the rise. can an interest rate hike be far behind? what's that mean for us, the u.s.? the irs under fire again leaking thousands of social security numbers of americans on the internet. what is washington going to do to put a stop to this mismanagement? corporate espionage goes cyber. the online war between board rooms and what's done about it. those stories, and, yeah, that's right, connell mcshane this hour on "markets now." ♪ connell: i don't think we need

sarcasm to start the hour. talking about egypt -- dagen: i'm personally excited you're here and you were not here for a number of days. connell: speaking of which, nicole at the new york stock exchange to start the hour. good morning, nicole. >> good morning to you. we are seeing markets with up arrows again. we had two full weeks of trading with up arrows, and these two days we've seen thus far also showing gains. we're not too far off from the closing high of 15400-and-change, the dow up to 57 points, names gaining, and the dollar is higher. ten-year treasury, 10.62%. you have a lot of names on the move today, some really names coming under pressure like soda stream, groupon, and zinga. back to you. connell: thank you. dagen: the muslim brotherhood rejected a plan to see presidential elections early next year. connell: from fox news in cairo

with the latest, connor? >> the political crisis deepening. yesterday, 50 killed when they opened fire on the muslim brotherhood who said they participated in a peaceful protest, and the military, however, said they were attacked by so-called terrorists, but 50 people killed, more than 400 injured. today, they began varying some of those that were killed as the military and the promuslim brotherhood groups continue to clash around town, although, nothing particularly violent, though. there's reports of minor scuffles around town, and at least one bomb diffused in geza, not far from downtown cairo where i'm at now. other things happening around here, the interim president laid out a road plan to transition to a democratic civilian government calling for elections in about six months or so for the parliament, and a few months

after that for the president. there's rumors a new prime minister will be named here in the next few hours and a vice president. although, there's a lot of names floating around right now, and the negotiations are still ongoing, but so far, the muslim brotherhood rejected all talks about a transitional road map. they are refusing to be part of any type of new deal going forward. they are calling for all-out revolution against the military here, connell. connell: connor powell, thank you, pleater -- appreciate that. bringing in kt mcfarlane, fox news security analyst here, and phil flynn out in chicago. there's one thing crossing on the wisers, guys, that the armed forces is about to issue a statement. maybe they'll say something while we are talking here. we have to focus on the money angle to start off, kt. there's a debate in the country whether to keep sending aid to egypt. it centered around whether it's characterized, what connor

described, as a military coo. where do you stand? dpl it's about following the money in several directions. coo schmoo. okay, they deposed a democratically elected guy, but hitler was democratically legislated. hitler went about dismantling democracy after he was elected. that's what morsi was doing, dismantling democracy. we should continue aid. the more important money to watch for is the saudi and gulf money. when morsi was elected, the first place he went to iran, saudi arabia's arch enemy, made nice with iran. the saudi's were angered and shut the checkbook. egypt is in economic free fall. if they are not bailed out by somebody, and ours is not enough, if it's not saudi arabia, the wealthy gulf oil states, they are starving by the end of the year because they need the money to import wheat to feed the people.

i was fascinating by the two people running egypt. the defense minister closed tied with the saudis. he was a defense attache for a number of years. let's see if money shows up. connell: the united arab emirates gave $3 billion to the egyptian, there's some money that's interesting. >> yeah, which was not before. >> speaking of the importance of saudi arabia, and i want to get to phil quickly, phil, to ask you, oil at almost $103 a barrel. what would it require to send oil prices significantly higher from here? what would we need to see happen? >> perhaps a threat in the s urges e -- suez canal, an attack on the pipeline, all of which impact oil prices dramatically.

there's been risk premium in the market. because the canal is on alert, that's priced into the market, but the reality is if things -- if we get a little bit of relative calm, we'll take that premium back out of the market, but if you see the disruptions right now, the other thing for the global market, egypt is seen as a safe haven, transit area. you know, in times of stress in the middle east, if we have problems in any other country in the middle east that heat up at this time, that could make premiums go up higher. dagen: thanks, phil. kt, you don't see that happening, do you? >> look, i've worried about the canal for two years. it's a very as a vulnerable pla, 120 miles long, a one-way street, not wide enough for two lanes, there's one lane and a passing lane. if something happens in the canal because guess who set up shop in sinai there? it's al-qaeda. if they match up, you'll see the

peninsula used as a staging ground for attacks, terrorist attacks on egypt proper and on the s org -- suze canal. connell: what can we hope for? >> that egypt stays alive creating an economy to recover and, finally, follow the money. dagen: always. connell: and the money coming in. kt, thank you. dagen: kt, thank you so much. connell: going to the markets now. forget about everything else right now, and pay attention to china. remember a few weeks ago, there was a selloff when china central bank indicated they might pull back on stimulus? well, the chinese ben bernanke, the guy named jao shook it up, he really shook up the world markets. dagen: that's right. there's new information out, new numbers, that basically backed the central bank in a corner, if

you will. we have more. jo? >> the data came out underlines the fact the chinese economy is slowing down. the inflation rate rose from back in may, and look at this. we see a rise in inflation year over year, and this has investors looking squarely at the second quarter numbers released monday. consensus expectations are for growth of 7.5% year over year, and that would be the slowest rate in 23 years for china and the second consecutive quarter of decline. now, asian markets still closed higher, despite bad news. just a day earlier, there was a selloff over concern of the slow down. today, the nikkei surged, and the south korean kospi up, and the hang seng index up half a point. looking ahead to 20 # 14, economists who are bullish cut estimates already for next year saying it could sink as low as

6% with a lot waying on how the chinese government deals with the credit crunch an monetary tightening. dagen: jo, thank you so much. of course, this news comes a day ahead of our own federal reserve releasing minutes from the last meeting, there's another speech in front of congress later this month, and what to make of this, chief investment strategist, we have to worry a lot more about ben bernanke and our own federal reserve. is that safe to say? i don't want to say "forget china," but let's do for now. >> well, china, the figures over there, dagen, i don't trust the figures. the aggregate consumption figures do not put up with the retail numbers. the survey techniques do not keep up with the rapid development of the service sector, and the surveys do not capture the weltiest spenders if you will, and the ones it capture, they lie about what they spend. a lot of transactions take place

in cash. i don't put a lot of emphasis on the numbers from china. dagen: do you put a whole lot of emphasis on the buoyancy in the stock market? >> well, you know, i'm constructive on equities -- dagen: constructive? how about negative? you've been negative. >> oh, i've been positive on equity markets until the middle of july. i've targeted the middle of july for the past two months. the minor appointments are july 11th, 12th, and major timing point is july 19th. we're subject from here on out into next week to the start of the first meaningful decline of the year. yeah, that's true. dagen: what about -- what worries you the most? if you looked at, say, how this kind of smaller big companies if you will perform, the nondividend paying stocks, have been performing, would you -- would you be more apt to buy dividend stocks even though

interest rates look to be rising? >> i think the interest rate thing is overdone in the short term. i think rates come down. ic the markets misinterpreted the statements. that said, i do like dividend paying stocks. b spoke with a piece over the weekend, one of the old stock markets saws that i learned back in the 70s is when they start running the dogs, you look over the shoulder, and if you look at what the b spoke people wrote and the different sectors and asset classes they wrote about, they run the dogs. we're building for an interimmediate term stock. dagen: you would stay away from the financials expecting pronounced weakness there, yes or no? >> well, yes -- well, not in the -- in the near term, yes, in the longer term, no. the balance sheets are in better shape than in a long time. dagen: but near term, you don't like them? >> near term, i don't like them. dagen: jeff, thanks. >> pleasure.

dagen: as always, stay cool. connell: we are just about to head out to san fransisco, and the airport there, to get an update with the new developments on the asiana aircraft crash. dagen: who is flooding the u.s. housing market? buyers from china. liz macdonald has that story. ♪

dagen: stocks now, the ceo of barnes & noble goes bye-bye, annie coal is all over the story. >> this is one worth looking at here. barnes & noble, the first thing you think of is the nook e-reader and their digital division which really has failed to compete. i mean, we know that the e-reader, the nook, had lackluster sales, certainly doesn't compete against other tablets and e-readers, just part of the problem for barnes & noble coupled with weak same store sales, and with that, the ceo steps down, william lynch, stepping down, resigning, and, obviously, now, we'll see what goes on. there's a handful of executive changes, and, today, the stock is not moving up on the news. it's a stock that's done well year to date. i think some of that was because of some acquisition or takeover talk, at least in part by

microsoft and other names looking at at least at the nook, but for today, it's all about the ceo stepping down because they just didn't cut it. back to you. dagen: nicole, thank you. connell: going to the san fransisco plane crash as investigators hope to get answers today. they are questioning two more pilots in the cockpit. dagen: fox news is in san fransisco with a lot more. hey, adam? >> hey, yeah, in fact, the ceo of the airlines coming in to san fransisco today to help oversee the investigation or watch it from their level, and, also, officials from not only korea, but china came here to take part or watch the investigation take place. the ntsb is good about updating us with a press conference later today. yesterday, we had a ton of information. they spoke with two of the four pilots in the cockpit. they mentioned the plane was coming in significantly lorer than it should have been, 40 miles per hour slower than it should have been the the pilot that crash landed the plane was

landing in san fransisco for the first time on a 777, and he only flown 4 p # hours, and now the person oversees him, it was his first time overseeing another pilot in that position so two very green people in the positions were at the front of the plane when it crash landed in san fransisco saturday night, but having said that, the ntsb will not jump to conclusions ensuring the investigation proceeds normally. take a listen. >> really, we're looking at everything now, all of the issues on the table, and we're two full days into the investigation, and so when we identify issues in an accident, it's usually not just one thing that causes a crash, and so we need to make sure that we are considering everything, and we connect the dots. >> basically, it shows that everything is not always as it seems. there's the chance it's a combination of human error and technological error, but we won't know for a number of month z as they continue to invest gait, guys. connell: live in san fransisco for us.

dagen: stunning story. the chinese scooping up kensive -- expensive homes in the u.s. with cash. connell: foreign money in the real estate special on "markets now," and the irs accidently posting tens of thousands of social security numbers online. dagen: oh, yeah. connell: oops. before we get to any of that, we look at numbers for you up to date on world currencies, how they are all fairing against the dollar. ♪ the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions

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>> at 22 minutes past the hour, i'm patty ann brown with the fox news minute. in arizona, vice president joe biden will be among those attending a memorial service to honor 19 elite firefighters killed on june 30th battling that massive wildfire northwest of phoenix. the service is expected to draw thousands including firefighters from across the nation. the three women held captive in cleveland homes for as long as ten years are speaking out. in a video posted to youtube, amanda berry, gina, and michelle thanked the public for the encouragement and

support. castro, arrested for raping and kidnapping the women pled not guilty. nsa leaker edward snowden agreed to the offer from venezuela for political asylum. he's believed to be in the transit zone since june 23rd. those are your headlines. now back to dagen. dagen: thank you. connell: back to china. chinese buyers pouring into the u.s. housing market and buying like never before. dagen: where they are buying may surprise you, but liz knows, and she'll tell you in the bottom line stating that is most attractive to those in china. >> it's florida and california. show the map. you'll be surprised at where else they look, where they pour into u.s. housing. it's also arizona, texas, new york, and you see nevada and georgia and north carolina, and, guys, here's what's interesting. talk about california. more than after of the homes

sold to foreigners in the state of california are not going to chinese buyers. what happens is main land, hong kong, taiwan, foreign buyers from china buying houses across these states, and they are industrialists, tycoons, paying top dollars, 70% of the deals from china are all cash deals. they are spending about $425,000 median on buying homes. they are buying top-dollar properties. basically, that's 30%, 40% higher than what the median has been across the country, and so while china is still second to canada in terms of the foreign buyers coming in, they are buying in the states, buying resort properties as well, guys. it's really an interesting development that the national association of realtors are saying that china is the fastest group, growing group, of foreign buyers of u.s. homes, and i'm going to toss it back to you guys. dagen: thank you so much, liz. >> sure.

dagen: proof what the federal reserve has done with interest rates between the foreign buyers and financial buyers like the hedge funds, the average home buyer is off because of ben bernanke. connell: china specifically, canada doesn't count, ey, you know what i mean? dagen: going to get canadian hate mail. connell: no, they are so close to us, they don't count as being foreign. another black eye for the irs, possibly, listen to this, possibly tens of thousands of americans' social security numbers posted online. dagen: awesome. we will talk about that story, and what the g.o.p. is doing to go after the irs. here's some of today's winners on the s&p 500. ♪

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a $29 value free. don't wait until you become the next victim. ♪ ♪ dagen: we are almost at the half hour mark. another irs mess up, to be polite. social security numbers we on the internet. how safe are your numbers? corporate espionage goes cyber. earnings season underway. alcoa beat expectations, but what is coming up on wall street

that we should all care about. connell: let's find out. nicole petallides is down on the floor of the new york stock exchange. nicole: there is a lot to care about. the stock hitting an all-time high today. there it is at 12413. we know it has been a winner this year. today's move is attributed to the fact that the company's stock will be moving into the nasdaq 100 index. oracle will beat translating to the door new york stock exchange. it is likely that they will have to buy shares of tesla in order to mimic the tesla 100 to a t.

it is up 266% this year. dagen: thank you so much for that. just when you think you cannot dislike the internal revenue service more, they say they have mistakenly posted social security numbers of tens of thousands of people. bret baier joins us from washington, d.c. you cannot make this stuff up. >> good morning. they have had a pretty bad month. let's just say that. it is now estimated that more than 100,000 names were on this website. it was discovered by this group public research.org. they learned about this breach. the agency is saying they are going to rectify it, but it is a

big blunder. dagen: a big blunder. how does that play into the targeting of groups? the irs is charged with enforcing that law. how does it play out with the gop in weeks to come? >> we are into the budget season now. republicans will be focusing on that. they will be dealing with the different elements of the budget and the upcoming debt ceiling increase. one of the things on the table is the irs and the funding of the irs. this factors into all of that.

why should the irs get more money? dagen: how do you think that ends up working out? how do you think it plays out between the gop? >> i think there will be some sort of stipulations on the irs. i bet, eventually, the agencies will get the dollars. just by looking at how capitol hill has operated before. you are right about obamacare. it hinges on the ability of the irs. connell: in terms of the irs, when do we get answers about what really went on there?

things -- you talk about the budget season. things have a tendency to fall by the wayside. >> they have pledged to continue their investigation into the irs. they are demanding that danny warhol come back up and present another report. the last one, if you remember, lawmakers were questioning him and scrunching up the papers saying it was not worth what it was printed on. they have continued the investigation. i think we will get more answers, but not right away. dagen: great to see you, as always. thank you so much. you can watch bret baier every

weeknight on the fox news channel. be well. connell: the cyber theft pandemic. it is kind of a theme for us today talking about china. >> general keith alexander, he has been in the news for a number of other reasons lately. however, the exact figure is it is big. we need to do something about it. dagen: that was admiral dennis blair on markets now last week. >> the affect of 300. billion dollars annually. that is just one statistic cited at this hearing.

one analyst says one culprit stands above the others. >> make clean energy tech knowledge he a priority. the next thing that happened was the clean energy companies became targets. >> lawmakers are debating a handful of responses. it would allow the government to block imports that feature stolen u.s. intellectual property. still, much of the burden falls on the private sector. both companies are falling victims. their performance varies this is

likely to be a high-level topic this week as the dialogue between the united states and china begins here in washington. treasury secretary jack lew is hosting the primary chinese host for dinner. connell: rich, thank you. dagen: new reports that the white house is looking to get our troops out of afghanistan sooner than originally planned. we talk with scott brown about why. connell: alcoa, as usual, kicking off earnings season. dagen: america is no longer the fattest country on earth. we are so proud. take a look.

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♪ >> i am lori roth and with your fax business brief. the foreclosure rate was down significantly. since the financial crisis began in september 2008, there has been roughly 4.4 million completed foreclosures nationwide. whole foods and casey's general stores benefiting from the deals. those stocks hitting all-time highs. the japanese automaker -- it will be going on sale in india later this year. that is the latest from the fox business network. giving you the power to prosper. ♪

♪ connell: how about the u.s. getting out of afghanistan and a big-time hurry. the "new york times" has a big story about it this morning. we have former republican senator scott around with us now. he joins us with perspective on that. what is your view? >> while they may take them out of afghanistan, they may put them in other areas. what about all the contractors

that will be left there? we pay about three times as much. who will protect them? i personally think it is a mistake. you will leave a lot of the things that we have done in a positive manner on the table. connell: you brought up the money angle. that always interests us. broadly speaking, is it worth it? >> that is a question. we do have a plan to withdraw. the question now is, because of the transition of what is happening over there, are we going to leave everything on the table? we are a stabilizing force, whether you like it or not.

it is something that we have planned on doing. we spent billions of dollars doing it anyway. we are just going to leave? if we leave, we will be right back there sometime in the near future. we will have to see what the details are. i do not know too many people that are in favor. connell: i thought it was funny that they said president obama, according to reports, that he was growing frustrated with the president of afghanistan. you could have wrote that story a number of years ago.

>> the quick reaction force is to potentially perturbed our contractors. protect any real problems. we have spent so much time and money and blood in that country. i was sitting in the same room with them. that is when he was talking about how he would be supporting the taliban. we all looked at him. it was incredible.

then what? will we leave all of our games on the floor and not have any type of progress in that region? that is a great question. we will see what happens. connell: we did not need a panel today. it is always good to see you, senator. thanks for coming on today. dagen: stocks now. keith bullets joining us now. >> i think the expectations have been ratcheted down so severely. you may see a lot of companies barely beating their estimates.

second quarter is supposed to be a little bit of a trough here. hopefully, that is all it is. i do not expect a real good earnings surprise. dagen: what could lift stocks higher? >> certainly not higher interest rates. that will change the dynamics. i think that higher interest rates will help financial companies which is the one factor that is supposed to be performing well in the second quarter. dagen: good to talk to you, keith. be well. thank you. connell: the u.s. is losing the top spot in a new un study. it is a good thing.

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dagen: let's talk about the batter of the la boulange and we are not winning. a new report from the united nations revealing that mexico has replaced the u.s. as the world fattest nation.

70% of the country is overweight. childhood obesity tripling in that country over the last decade. 32% of americans are obese. connell: we joke around about it all the time, but that is why it is a serious issue. why we are talking about it, how about this story? twinkie is back on store shelves in less than a week. twinkies will have a 45 day shelf life instead of the original 26. oh, great. that is terrific. hostess stopped production last year after union workers and the company could not reach an agreement on their contract. dagen: apparently the shelflife extension was cooked up, no pun

intended, by the now dupont manufacturer of the twinkie. we are going to have a taste off. connell: that will be good. the twinkies just hatched. let's go now to the weather. fast moving tropical storm is racing towards some smaller islands. we are here to talk about that. dagen: she is a very fine meteorologist. hey, maria. >> a lot of people have been --

connell: i know my storms. it is kind of serious. maximum sustained winds at 65 miles per hour. it is forecasted to continue to intensify as it does move into parts of the caribbean ocean. we do have a number of warnings out here. a brand-new hurricane watch that was issued for the dominican republic. we could be talking about a hurricane as we had into later today or even tomorrow. when you take a look at this picture, it really does not look that organized. it does have some very strong wind gusts. asas we had into early tomorrow morning, we could have maximum

sustained wind of 65 miles per hour. haiti producing a lot of wind out here. the storm system is going to begin to slow down. we do have very warm ocean water. that could help to identify it. very uncertain what this storm will be doing. very warm water out here across the atlantic. hot temperatures in the planes. triple digits for kansas city. the heat expected to continue out here.

will the twinkie taste off-- dagen: i am sure some goofball around here has some stuff away somewhere. look out for old twinkies. that is a good idea. thank you for that. >> keep me posted. connell: midtown manhattan. we can see radio city. dagen is interviewing bret baier. one of the food trucks, the fire department is on hand. one of the food trucks in manhattan just caught on fire. dagen: there it is. connell: this happened during the show. you can check out my twitter feed.

there were big orange flames coming out of that food trucks. dagen: the smell of burning frankfurters will cover up the other bad smells. connell: hopefully everyone is all right. anyway. moving right along. dagen: egypt, the muslim brotherhood rejecting plans of a new president. cutting back on u.s. financial aid to these nations. connell: first solar. some power ceo joins cheryl. market now continues. ♪ i want to make things more secure.

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win we've seen since the month of april. million low, everyone, i'm cheryl casone. a bull and bear debate on whether tapering costs hurts or helps the markets. it's going to be a heck of a debate. now from bad to worse in egypt as the muslim brotherhood rejects plans for the presidential election with calls why washington to cut back or eliminate u.s. financial aid to that battered nation. plus, former treasury secretary good geithner building a treasure these days. you won't believe how much he made in just three speaking engagements. it pays to be tim guy near. top of the hour, and as we do, stocks now, nicole on the floor of the new york stock exchange trying to make a nice four-day winning streak. what's pushing the dough hirer? >> beyond the hat trick, going for the fourth day of gains. the dow moving above 15 p 3 --

15305 today. we really are getting closer and closer to the all-time highs. right now, you see the market continues to move higher, earnings season underway, we heard from alcoa. later in the week, financials are key. you are seeing buying across the board, a little less worried about the risks seen, and that volatility was the back-and-forth action, and, today, buying again. drug stocks, retail stocks, bank stocks doing well, gold higher, and everything has an up arrow for the most part. tesla is jumping, barnes & noble. back to you. cheryl: nicole, thank you very much. see you 13 minutes from now. well, positive earnings results help markets shake concerns over monetary policy tightening. both here and around the world. we have kathy boyle, and cabria investment officer.

kathy, you are bearish. you are the resident bear, as i call you. you see it in the technicals of the s&p that tells you that global mornings are going to pull back, and especially in this country, the s&p, it's going to pull back? >> we had to cross 1650, which we are close to, and build inverse head and shoulders, coming down to 1600 with a rally from there. cheryl: that's the technical chart you see saying there's something there. you disagree? >> you know, we trade all asset classes so in the global tactical funds, we're long u.s. stocks, but due to the evaluations there, we have a much higher exposure to foreign ecstasies, -- equities. cheryl: risk you right now. >> it is. the third most expensive market in the world, the u.s., while not terrible valuation, there's better opportunities abroad, but at the end of the day, we respect the trends as well, and

if trend deteriorate, we'll move. cheryl: trends show us emerging market investments that investors take the money out of emerging markets, taking it out of the brick countries, putting it back to the work in the u.s., knot helping kathy's argument who is bash ire on u.s. markets. >> we disrisk over the past six months, pretty much eliminated the commodities position, getting out of realize and foreign. u.s. is really the last and best performancer. there's 60% cash of etf. it it declines, we exit as well. cheryl: we are trying to get a four day winning streak. we know about tapering and the fed governors, and every single fed president governor spoke about what caused the volatility, and that's tapering at the end of the year. markets are not as volatile as you were concerned about. >> right, vix is down to 14 and

change, huge decline over the last couple weeks. a lot of complacency in the market place. bears down to 20%, which is risky. that's a contra indicator. it's a matter of circumstance. it will happen, when and how much? buying yields move up in anticipation. mortgage rated moved up enough that a $300,000 mortgage in 30 years increased $250 a month. that hurts the housing market, the core growth of the country. cheryl: making your argument better for international narcotics. >> well, look, a lot of these countries are bombed out. greece is trading long term ratio of three. that is a generational low so a lot of the countries, greece, ireland, russia, we think there's a huge opportunity in the next five and ten years. maybe not in the next quarter, but the next five years, there's a big, big opportunity. >> you have to know the investor. that's the thing, long term investor, and in the etf, tactical, you move around, great, a professional can do

that, but the average investor is gun shy. they took a long time to get in, buy low, sell high, never learn. cheryl: you have a different approach, doing different things as jobs outside of the studio. you manage private money, you're in the etf groups, selling to institutional investors. from your perspective, kathy, do you have plans coming into the office saying i don't trust the markets, i want out, at terntive investments. >> absolutely. another show, i got a $5 million client called saying, help, i have to preserve now. we see a lot of people that really want to protect it. they are worried. business owners are not employing new people. they are worried about putting money out, worried about the underlying economy. they are not comfortable. cheryl: last word, quick. are the institutional moneys coming in or looking outside the market? >> i think it's both. institutional money has been

allocating, and what they are looking for in many cases is a lot of alternatives. there's a big need for investments that will diversify the portfolio, traditional assets. they were burned by allocating commodities at the wrong time. we are looking for ideas. i think there's plenty out there, managed futures and currency-type strategies to help diversify the traditional portfolio. cheryl: thank you. good to see you. kathy, good to see you. we're here for you. well, we were talking about international markets, and now to egypt where the military rejected a transition plan put forth by the interim president for elections. we are in cairo with the latest. cairo, what do you think? >> well, cheryl, the military-backed government has a transitional plan to hand over power to a civilian

democratically elected president. they are calling for elections to take place sometime in the next six months with presidential elections to follow after that. probably in february or march of 2014. that plan, though, immediately rejected by the muslim brotherhood who called on supporters to revolt against the egyptian military, not just for the coo that removes the former president, but because of the massacre that killed more than 50 promuslim brotherhood supporters tuesday. they say the plan is similar to the one in place after the fall of mubarak, the former military, strong man, doesn't leave confidence that this plan is better. the anti-morsi coalition government had snags in terms of development, initial initially failing to agree on a prime minister and cabinet. we expect an announcement on a new prime minister and new vice

president. the military is preparing for what could be more violence ahead. we have reports a potential bomb in the area of gezo, not far from where we were, but it seems to be diffused without going off. cheryl: live in cairo, thank you for the live report from there. as unrest continues to mount, the bawl administration is being pressedded on what to do, what the over1.5 billion dollars in aid the u.s., you, the taxpayer, gives to the tattered nation annually. >> i think it would not be in the best interest of the united states to immediately change our assistance programs to egypt. we are reviewing obligations under the law, and we will be consults with congress. >> i think their military, on behalf of the citizens, did what they had to do in terms of replacing the elected president, but anything further i think we'll wait for consultations

with the administrations. cheryl: joining us now from washington, former deputy assistant secretary of defense, now director of foreign policy studies at the heritage foundation. steven, looking at recent history with the obama administration, they don't usually cut aid to countries unless there's a military coo. right now, jay carney does not and is not willing to call it a coo in egypt. why is the administration continuing to teeter on whether or not to cut funding to egypt? >> well, because this situation, cheryl, is a little bit different. you know, this is like saying hitler was elected, but we shouldn't have done anything to topple the government because he was elected. moo move dmorsi moved away from the constitution, and we had to see something done. rather it not been the military, but it was. we should look at this a little, with a little more nuance than

just cutting off aid. cheryl: mubarak was a dictator, a brutal dictator, responsible for the murders of millions of egyptians. in 2011, that was not a military coo and continued aid, and there was democratic elections, but in this particular stage, you tell me that morsi was creating basically a civil war in your pan, and that he needed to go, that we should be giving aid to the country? >> well, i think we have to review the aid. we probably need to tighten it up, put conditions on it, but precipitously cutting it, i think, is a mistake. we have to look at this and step a little lightly to decide how we can help steer the situation rather than washing hands of it. cheryl: the saudis are not washing hands of anything and came in with $5 billion to aid to egypt. what do you think about the

saudis moving on with this? are they looking to, i don't know, replace other countries in the aid to egypt? what are the saudis's motivation in this? >> well, the saudis do not want to see the muslim brotherhood rise up to power, something we were not terribly happy about either, and they have the cash to offer the aid to try to help, and, frankly, the biggest problem in egypt right now is food shortages and things like that, so they do need some help, but it needs to be conditionedded on moving back to the democratic process that's not hijacked as the fast one was. cheryl: stephen, what do you think of the reports? we got these really in the last 24 hours that morsi supporters are going out and actually, you know, picking up guns, attacking the military, and the military says they are terrorists, these morsi supporters, but that the supporters, even a doctor interviewed on another network said from the hospital bed, we are peaceful, just supported

morsi, elected him, we want him to stay. the military is basically attacking us with their guns. i mean, it's a little difficult at this point to decipher who to believe. >> oh, and in these kinds of situations, it always is. it's why we depend, many times, on the news folks like your people in the country to give us some sort of fidelity on what's really happening. if the muslim brotherhood want to address this peacefully, hopefully, you know, that's whaps, and the military will behave and there's not more incidents, but it remains to be seen. there's a lot of bad feelings on both sides. cheryl: 51 dead, more than 400 injuries as of now as we follow what's happening from egypt. instability is something nobody wants to see, certainly. steven, thank you very much for your take on all of this. >> thanks for having me. cheryl: another threat, the cyber threat to tell you about. u.s. companies are losing

billions to foreign hackers. we got rich edson live ahead as congress is now looking into the cyber threat. take a look at this. it's the first solar powered plane to fly coast-to-coast. what do you think of it? sun power ceo, tom warner, likes it. he's going to be here in moments. plus, during this hour, i'm going one-on-one with the ceo of general mills, the company hosting its annual investors' day down at the new york stock exchange. we have ken powell coming up on the show. as we break, throe, look at the energy markets and, certainly, crude, following that as part of the reason we follow it closely is because it's rising on the tensions. oil at $103.28, up again today. we'll be right back. ♪ ♪

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when you do what i do, you think about risk. i don't likehe ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. cheryl: dow up 68 points, kicking off earnings with alcoa, and look now, the stocks in the premarket last night or post market last night and premarket today was looking higher, but alcoa down six cents, and barclays cut the price target on the stock, and also saying they got it now in equal weight. they have negative comments,

but, you know, alcoa said global demand would be strong. pressure, frankly, be honest, on the mining stocks. alcoa the global story. "wall street journal" says don't look at them, they are not indicative of the numbers. stocks every 15 minutes, obviously; with nicole, and there's a change in the ceo sweep this morning, a big story for barnes & noble. >> right. we are watching barnes & noble today, the stock moving higher as william lynch, ceo, is resigning this week. up 3.7%, and one of the main reasons is the nook e-reader is not competitive as a digital division here of barnes & noble. e-reader is not competitive to other tablets and the like, facing intense competition for both books and against the kindle versus amazon. microsoft is actually a minority stake holder in the nook so it's not clear how that's resolved,

but we are batching. obviously, the stock jumping, but barnes & noble is disappointed with this. back to you. cheryl: so many disappearing. it is disappointing. nicole, thank you. ♪ the cyber theft pandemic in china leads the pack. >> keith alexander, been in the news for number of other things recently, called it the biggest theft of intellectual property in human history, and we agree with him. however, the exact figure is it's big. we have to do something about it. cheryl: strong words on "markets now" from former director of intelligence admiral dennis blair saying we've got to be incredibly careful. there's a hearing underway on capitol hill during this hour looking at cyber espionage and its damaging effects. rich edson is on the story from washington with the latest. we talked about the cyber

threat. is congress just now waking up to how serious this is, rich? >> well, cheryl, we had a number of hearings on this, but as far as moving any type of legislation through, it's still in the very early stages, and by one measure, it costs the economy more than $300 billion a year. intellectual property is a significant piece of the u.s. economy. the department of commerce says more than $5 trillion last year, nearly 35% of the size of the u.s. economy responsible for more than 27 million jobs in nearly two-thirds of exports. the problem is serious, and there are ways that address it. >> they will steal and reverse engineer anything they can get their hands on, and i've been dealing with them full time since about 1970. >> i'm confident, we can, if there's a sustained effort in place, get them to act differently, and in part, they

know they are caught. they want to be a dynamic, modern economy. you can't do that depending on stealing technology. >> and the "they" there, is china. lawmaker, and animal -- analysts discussing of banning products made from stolen property, increasing penalties, or giving the nsa more authority to protect the pentagon, likely a difficult time to get that through congress. much of this falls on the private sector, and analysts say u.s. companies defenses are sometimes failing to the most basic cyber attacks with more investment there as well, they say. cheryl: the government has not done enough so the private enterprise's fault, blame u.s. corporations for the threat; right? >> you can say the pentagon needs to secure its stuff, and private companies need to secure their i.t.. cheryl: i'd say so. rich edson, thank you very much, good to see you, rich, appreciate it. >> thanks. cheryl: well,ntsb invest gaipters waiting to talk with

the pilot in control of the air asiana flight as it crashed into san fransisco saturday. we dail -- we have details coming up in your fox news minute. we'll be right back. ♪ my mantra?

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>> at 25 minutes past the hour, i'm patty ann brawn with the fox

news minute. investigators looking into saturday's asiana plane crash focusing on decisions made in the cock pit, specifically, why the speed was too slow to land safely. the flight from south korea crashed in san fransisco, killing two and injurying at last 18 # 2 of the 307 on board. in canada, dozens missing from the train disaster, 13 killed when train cars loaded with oil sped down hill into the town near the border with maine and exploded. investigators say the train was traveling far faster than the speed limit when it derailed. new york jets' coach, recollection ryan, was in spain among those running with the bulls. you can see rex climbing a fence to safety as one of the six bulls ran by him. no gorings this year and six injuries, ryan, who is 50, entering the fifth season as jets coach. those are the headlines, cheryl,

back to you. cheryl: no interest, zero interest. >> me neither. cheryl: my god, i get fans were excited. thank you very much. >> thank well, it's called the solar impulse, and it glided into the history books saturday completelying the first coast-to-coast solar powered journey in the united states. sun power was the official solar panel supplier for the plane, and tom warner, the ceo, is joining us now. thanks for coming back. this plane is -- took, what, 18 days to get from san fransisco to new york? >> yeah, it's phenomenal technology, though. it's completely solar powered, has great battery technology, and it's really, really impressive technology. cheryl: it's got, what, 12,000 solar cells on the wings and on the top feeding the battery? >> yeah, it's got 12,000 of these solar cells on it.

cheryl: you got one, okay. >> the key is to be efficient and lightweight. cheryl: this is the cell all over the plane? okay? >> there's approximately 12,000 of those, and you can see it's very thin, approximately one fifth the size of the semiconductor. >> lightweight and makes energy. >> goes in the ion batteries, we could discuss that, but you're off the hook for that. overall, though, do you think it's something -- i mean, commercial aviation this seems like pie in the sky, no pun intended here, but it seems we're decades away from incorporating solar technology into the commercial aviation. >> yeah, i think this is more about breaking the myth that what renewable energy can do, and it's giving you the sense that it can do extraordinary things. i agree with you. i don't think we'll see aviation, but what we will see is solar with batteries used in homes which is completely disruptive to the way you get energy today. cheryl: cheryl -- this is part

of the clean generation, a program, al gore, richard branson, and many powerful people behind this. you're sponsoring the flight as well. they want to go around the world in 2015, but if it took them 18 days to get to san fransisco to new york, frankly, a six-hour flight, don't you have to have safety concerns about doing this around the world? >> no. the technology's going to be better. it's going to be another new plane. they will do dry runs in 2014, and these guys, one of the pilots, he's gone seven miles deep into the ocean. they know what they are doing with the technology and have the best technology. cheryl: they would be with you, but they are meeting at the u.n. secretary general today so they were otherwise involved. let's talk about your company. your stock at a two-year high yesterday for sun power. what a turn around for sun power. >> yeah, it's a great year. it's based on fundamentals, making money, generating cash, and we're expanding in key

markets with huge upsides to china and the rest of the world going solar. cheryl: global though or u.s. for you? >> u.s. drives, japan's large, europe still continues to be strong, early stages in china, middle east, and south america, still, outside the new countries. cheryl: what we had a panel manufacturers three years ago was the fact they made them cheaper. now it's a different story. concernedded about that at all? we have cybersecurity to be worried about with china. >> no question we can compete. we're winning. how do we expand that? we have a presence in a 130 countries, and we have a huge advantage and we compete now on energy and energy solutions so i think we're separating ourselves from the competition, frankly. cheryl: tom warner, again, nice to have you back, the nasdaq

this morning with the pilots, interesting idea. we'll see where it goes, if we're alive for that. >> we'll be here. cheryl: tom warner, thank you very much. general mills investors say at the new york stock exchange, coming up, i'll talk with the ceo of the company about his plans to deliver now on the guidance that he gave for the next fiscal year. hedge fund advertising, yes, the fcc expected to approve it tomorrow, should they? we'll talk about it coming up with ron gessler. we'll be right back. friday night, buddy.

you argonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. cheryl: just past the bottom of the hour. stocks with nicole on the floor of the new york stock exchange, and we have the movers with dow

pushing session highs. >> the dow is now pushing through here, up back to the highs of the day. we have to take a look here at fedex, obviously, a name on the move, so many headlines. you see the stock itself, the two-day chart is telling showing you a big move it's having today of seven and a quarter percent. what it's rising here today is the most it's rise p in 19 months, two stories. the first is that fedex is moving forward with a settlement over lawsuits claiming that fedex was charging businesses and government at higher rates so they are dealing with that. that'll be on the 23rd of july, and, also, we're watching here the story pertaining to beefing up cash and whether or not they'll invest in fedex, and, of course, they will not acknowledge that. back to you. cheryl: thank you very much. appreciate it. speaking of stocks, we've got

the fourth and final week of round one of the fox business summer time show down. every friday, pit two stock pickers against each other. scott martin joins us this week. take a listen. >> you got to play the stuff that's worked in past down markets or at least in past markets where it's stag nanlt. specifically, utilities, the consumer staple sectors, because, cheryl, no matter what happens in the economy, people have to buy it. you have keep lights on. cheryl: all right. look at xlp, the consumer staple etf. he recommended this, up 15% since had backed it on with me last july. scott eats -- scott's making two picks with david trainer of new constructs. tune in here friday at noon eastern time, fox business. well, today is general mills' investor day, and the company

projects strong growth for fiscal 2014, especially with the introduction of 200 new food products at home and abroad. the chairman and ceo, ken powell, ringing the opening bell this morning at the new york stock exchange joining me now. a pleasure to have you. >> cheryl, great to be here. cheryl: talk about the fiscal 2014 projection, $18 billion. you came in in 2012. do you think you can surpass projections for 2014? >> well r you know, i don't know. what we're predicting in 2014 in guiding would be very good growth for general mills, 3% growth in our top line, and then we're going to combine that with mid single digit growth in operating profit, which will, you know, create that through productivity and high single digit growth in earnings per share. you know, overall, that's what we call on model performance for general mill, and we'll combine that with strong returns to

shareholders through healthy dividends and share buybacks as well. you know, all in, that's a very good picture for our investors in 2014. cheryl: well, you're not far off of the 52-week high now, 50.97, and there's a spread of 2-3%. investors are getting their share of the piece of the pie, if you will. i'm curious about international expansion plans. right now, the business is u.s., more than $10 billion, 4 billion international. you're really, especially today, with investor day, focusing on international growth. where do you see the biggest market right now for general mills outside of the u.s.? >> well, you're right, cheryl. we have focused on that. back five years ago, and international was less than a quarter of the business, and today, it's more than a third. we really focused on that. the biggest market outside the u.s. is canada, wears the fourth largest food company in canada. behind that, you know, close behind that, there's a nice business in france selling

yoplait yogurt, old el paso mexican food. a nice business in france, rapidly growing business in china selling, again, ice cream, sell frozen food, frozen dumplings all over china, that's been growing double digits for many year, and we recently, within the last year, acquired a very good brazilian food company called yoki, a strong line of brands, and we're seeing that business grow very, very nicely in the year we just completed, on the mystic about our growth pros -- prospect in brazil and south america. we have initiatives in the works and solid broad based expansion outside the u.s.. cheryl: ken, certainly, i know you are looking to expand. i want to talk about the dry dinner market where you are famous, the hamburger helper market. this country is a nation of food

snobs going to whole foods and central market, getting fresh meals to go, and you got 69% of the market, it was 88%, and kraft is coming up now on you a little bit. they got the vevlveeta brand. how do you recapture america to reuse hamburger helper? >> it's a great, huge brand, high penetration, cheryl, over a million people a week use this product, so what we've said is we got a great brand, recognizable, but we have to renovate it and refresh it making it relevant to the consumer. one of the key things is chicken is used as often as hamburger is in homes today at that evening meal, and we are offering, you know, a number of new chicken varieties, things like sweet and sour chicken. not your grandmother's helpers. we refreshed the beef versions. we created a small subline called ultimate helpers

featuring a liquid sauce so like a liquid choose sauce or oil based sauces for italian food. we broadened the line to include more varieties of protein. we've gone up with a few varieties, up market, refreshed all the packaging, looks great on the shelf. you notice it there. with new advertising, i'm quite optimistic we'll be soon growing penetration again with our hamburger helping business. cheryl: ken powell, investor day, come back any time. >> great to be here, thanks a lot. cheryl: thanks, ken. well, from stocks to gold, believe it or not, gold is staging a little bit of a comeback today at $12 and some change. live at the cme with phil flynn with his take on this one, and, also, there's this, hedge funds about to get the go ahead to advertise to the public. we're going to take a closer look at the protections in place

with the former fcc enforcement attorney joining us. ♪ i want to make things more secure. [ whirring ] [ dog barks ] 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. call us. we can show you how at&t solutions

can help you do what you do... even better. ♪ >> this is your fox business brief. americans continue to pay down debt in the first quarter as household wealth rose above prerecession peaks. according to the dheef economist, consumers learned the hard lessons of the recession

and keeping debts at manageable levels. the efforts to sell itself is fizzling out. the israeli based company has been looking for a buyer for at least three months and is having a tough time attracting interest. move over on friday, chick-fil-a celebrates cow appreciation day giving away free breakfast, lunch, or dinner combo meals. you have to go into the restaurant dressed as a cow to get the free meal. that's the latest from the fox business network giving you the power to prosper. ♪ one and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top.

♪ how did he not see that coming? what's in your wallet? cheryl: talked about china with the general mills ceo, and inflation data from china is moving metals here at home. back to the trading pits with phil flip. a nice pop on gold, but is it going to last? >> you know, this could be interesting. i think it could. i mean, right now you got strong

demand coming in. gold's looking shiny. you got inflation in china giving us the pop. when the imf talks about possible reduction of global economic growth, a slow down in the u.s., that means more qe. that means, of course, more, but the copper, it's been all over today. copper got slammed on reports that they are going to open the huge copper mine in mongolia. on top of that, copper stocks in london rose, but, you know, after that imf report, initially, copper went down, but it rebounded because, again, i think the qe is back on every's mind giving copper quite a ride. back to you, cheryl. cheryl: metals may surprise us. we'll see. thanks, phil. >> thanks. cheryl: all right. quarter till. time for stocks now on the floor of the new york stock exchange. you know, keith, earnings season, off and running with

alcoa, but what about the rest of the week? >> well, the rest of the week is from big names is kind of slow, but what we're looking towards is friday with jpmorgan and wells fargo reporting. the financials in the spotlight, at least for me and second quarter earnings, expected to do well this quarter. what i want to hear from not big money center banks, but smaller regionals and credit companies is, where does the business look like for the remainder of 2013? if there's a substantial pickup from the credit demand and large community and corporate end, that speaks well for economic activity going forward. cheryl: all right, keith, thank you very much. see you soon. >> my pleasure. cheryl: well, coming soon to a television set, newspaper, or magazine near you, advertisements for hedge funds. looks like the fcc, tomorrow, lifts the ban on advertising them to sophisticated investors. we're joined now by former fcc enforcement attorney, and now a partner at goldberg, and haven't, we should say, of the

hedge fund association. 80-year-old rule being lifted here. why now, though? i mean, hedge funds still can be very risky for the average investor. how can you guarantee? how can the fcc guarantee that someone that doesn't make $2 # 00,000 is not going to buy into the advertising? >> you hit buzz words, "risky for investors," "guarantee," and hopefully things my clients are not saying on air. they are not limiting by virtue of the law. lifting the ban comes in time with prohibition against general solicitation, and facebook-like companies, emerging growth companies. with that is alternative investment vehicles as well. cheryl: the reason this got going a couple years ago, the push, under former fcc chairman, was that they wanted -- small businesses, they should be able to advertise to get investments, you know, private investments. say i have joe's diner, and i

need a couple million dollars, i should advertise people invest with me, but the hedge fund industry jumps in, correct, saying, no, we want equal opportunity. >> yeah, congress passed the law primarily seemed to enhance companies that not necessarily joe's diner, but facebook and technology companies, limited by the securities markets. that being said, it's not the hedge funds jumping in. why are they the stepchild left out? that's how i look at it. that said, even if they are able to take advantage of the general solicitation and advertise, there's other limitations that limit how many investors they take in, most hedge funds, looking at the newspaper rosety, it's limited to a hundred investors. they are not looking to retail, and they can't take it. they have to be accredited investors, whereas joe's diner could take money in from nonaccredited depending on the situation. cheryl: how do you police that and guarantee the person who sees the ad in the wail westbound lane" doesn't --

"wall street journal" doesn't make $200,000? that's the threshold thrown out in this. >> correct. the requirement of the wall is to be self-policed currently, and based on the proposal coming out months ace, it's a facts and circumstances test based on how fund managers how to e evaluate the quality. what happens if they were to lie on accreditation, and managers make the effort to comply. there are rules and regulations to be in place that serve as the gate -- cheryl: they are only going -- they are expected to pass tomorrow, we should say, but later on, it's, oh, here's how we police it. >> going to the policing it not necessarily the law, but more people at the state level. many of the cases that are brought about are investors who have a problem. if they are policed, they are going to bring action, hire own lawyers to agent on their behalf, not the government. cheryl: fcc, couldn't catch madoff.

i don't know. i'm with you. >> it's a much more regulated environment than five years ago. cheryl: a great point. ron, thank you very much. >> thanks for having me. cheryl: good to see you. get this, prisoners in california going on strig. yes, prisoners. their complaints ahead in the west coast minute. ♪

cheryl: the fcc will not pursue a civil case against las vegas resorts after a former investigation after the company pledged $135 million to the university of mccaul. the university was focuseddwhron the donation was, well, problematic or to be blunt, bribery. look at the stock now, $126.21 a

share, down p -- down 77 cents. a multimillion dollar television print an online ad campaign launches in oregon to educate the public on cover oregon, the state's new health insurance market place. many residents have no choice but to enroll in cover oregon as ever 2014, they just don't know it yet. now they will. in california, about 30,000 inmates in 20 of the state's 3 # 3 prisons joined what might be the biggest prison hunger strike ever, ever in u.s. history. prisoners demand an end to policies that keep them in isolation indefinitely and punish them for gang member. they want more rehabilitation programs. what's that? call the teamsters. keep you posted on that one. that's the west coast minute. all right. media mogul, business

executives, politicians all headed for sun valley, idaho in the annual allen and company conference. the colleague, dennis kneale is headed there now with full coverage tomorrow and thursday for the noon show and throughout both days on the fox business network. you can't afford to miss the coverage from sun valley. the health of small business in minutes. adam and lori have a firsthand take with bank of america's small business lending. how is the sector doing? plus, they have latest on the asiana flight crash investigation. there's a call for public ratings of the pilots in the cockpit. yeah. here's a question. when is a coo not really a coo? lou dobbs weighs in as the white house rebuffs calls to cut the $1.6 billion in aid. the u.s. is still sending that to egypt. we'll be right back. ♪ all your imptant legal matters in just minutes.

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lauren: good afternoon. i am lori rothman. adam: and i am adam shapiro. gold pushing higher. lauren: the backbone of this nation's economy. still hurting or recovering? a first-hand take with robb hilson in minutes. adam: how much did the pilot experience have to do with the crash in san francisco? the new push to reveal pilot records and reviews to the fine public. lauren: the muslim brotherhood rejecting plans for a new