>> i m. adam shapiro. >> stocks jumping on them becky's remarks the dow and s&p 500 hovering near the closing high. and why we think the bull market isn't going anywhere fast. >> wheel is catching its breath and not after topping one had $7 a barrel less talk about the of pullback. lori: lou dobbs joins us as the house republican two-step bid on immigration reform.

adam: the senate banking committee tackling reform so why after three years is dive franc still not done? we have charlie gasparino and elizabeth macdonald why they're still dragging their feet. right now we want to check stocks with nicole petallides now passed all time highs? >> correct. what is not dragging its feet is the market. we had a 1,000-point swing now here we are. if we would close right here right attitude take their record all-time closing how long dash high but the dow is in 2000 intraday high we have not hit that yet but we

are seeing a great day on -all street. lot of this is field by ben bernanke and the fed. he said on may 22nd there is concern as they would taper but they have turned it around and they will be in to the for sale -- foreseeable future. lori: so the morning after the chief's remarks so is a tapering out of the question? we are welcoming senior portfolio manager, and is to see you. >> afternoon. lori: start with the fed. so many mixed messages. what do investors need to know? >> a great point. we witnessed successfully putting the toothpaste back in the tube and ben bernanke has cleaned up the mess that he has made. we need to know and i think

they said this all along but where the metrics they're watching to figure out is the economy the nef? i think we he basically has said the economy is doing better but we still need some help and we are here to help. lori: sell at what point in time lead to expect investors to stop expecting the support the fed has been giving the last couple of years? >> what we will be to see is better nominal gdp. real growth plus inflation. they are trying to get more nominal growth supported by the baby of japan and the ecp be. we just need a little more growth from the economy then they will switch from the

p/e improvement then just to earnings improvement. lori: the second quarter earnings season is mediocre at best. will there be a drop-off? >> we saw in the first quarter mediocre earnings disappointing revenue growth expectations have been pushed out and we will exceed them but what will topline growth looks like? from the overseas the economy these are headwinds. it is an okay earnings quarter. lori: and u.s. equities nurses overseas? >> the momentum for economic growth and the degree to which the fed has the earlier start and continues is further along than most of the world. i would say the emerging markets are doing better in

the think that will continue. they went down further than i thought on the back of what will the fed to but i would do some work there also. lori: that was one of your famous 10 predictions. year at the halfway point so it is great to get the update. we are on track for most of the predictions about the economy and markets but the government passing a two year budget deal in this past to be frustrating. how much of a fiscal drag is this the why the economy continues to languish? when will they give us a bone? >> washington it is much more on the back burner that we thought because of a massive improvement banks to

the federal budget deficit being shrinking but the pressure has almost dissipated for the near-term we got stuff early in the first week of jury but since then every time an estimate comes out the federal budget deficit shrinks with help them doing think. big action? not this year. lori: always a pleasure. share your expertise. adam: fed chief ben bernanke combing -- climbing more than 2.5% phil flynn is in the trading pit. >> people are saying we're very close we look at that $1,200 cost that will impact to me and also the strongest demand period of the season. but some of the buyers say

we have the holiday season. so we are giving a strong rally right now provide think 1200 looks like a strong support 1300 will look better technically but it isn't just cool. talk about platinum and palladium with the ongoing labor strike between the unions and the miners. that is pushing the market at. to talk about supply issues to come into play. china also talks about a stimulus. a good day for metals. adam: we will check-in with him throughout the day. wailes slipping 1% but not before hitting the 15 month high. is this the pullback but traders expected were a consolidation of another run higher?

the fundamentals are telling you something. >> the fundamentals for may and june, we see fair value but that around june 21st pc prices all the way through 100 or 170 see a run-up over the last two and a half weeks but now we sees some bloodletting with consolidation that is only natural that with that said because we blew through that hundred dollars level with the political tension is seems that prices are supported. adam: and what about the spread? what is this about? why isn't this what we would see at this point? >> we have a huge supply growth here and at cushing

oklahoma it has spread out $27 the coz of the cheap supply but as we have seen we now see it come back in line is just as today with crude supplies dropping by 2 million barrels that is why we see the crew to come back in line. has been irrelevant but now we just see it in reverse to come back into relevance again. adam: talk about supply-side people would talk about people real i haven't heard anyone say that for a long time. the predictions that they have thought of as large producers will produce even more. i would expect your

prediction of $98 per barrel is realistic? >> if supply is a rebate up yes, but canada, russia canada, russia, brazil, they will keep it in jack quinn the demand from europe is so lackluster but it is being supported by the economy and we see slowing coming from the market. >> line market we expect to see a reverse china if they start stimulating we could see greater demand there that will bring prices up? >> we see more supply come to the market. adam: think you for joining us. all the best to you. lori: egypt's new military

government brought in to the accusations against the muslim brotherhood and morsi with a campaign of violence. five senior members of the brotherhood have already been arrested but the spiritual leader has so far evaded capture. earlier today the brotherhood vowed not to back down in the push to restore morsi to power but resistance is peaceful. but back at home mortgage rates continued to rise. that 30 year fixed mortgage is up from the previous week the highest in two years. adjustments ago it was 3.5% barely above the record low of 3.1%. locked in now. eliot spitzer in the race for the city comptroller and the governor these 3,750

signatures by tonight to get a place on the ballot. he stepped down five years ago amid a prostitution scandal but 67 percent of voters polled to believe he deserves a second chance. adam: it is a compact -- come back. he is recreating himself but we have the space permission to the flight that crashed in self in san francisco and the flash of light and what to look so long to evacuate. lori: also the of microsoft's vision and also with the former ceo had to do with it. >> secretary to is pressuring the chinese to scott -- stop cybera speenine show. lori: with the fed in focus again the fed will keep

easing if inflation is anywhere. 1278 but copper and silver are climbing in tandem. back in a moment. the boys used double miles from their capital one venture card

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>> the latest details of the flight that crashed in san francisco the pilot told investigators the flash of light temporarily blinded him -- pointed him 34 seconds before impact a and lasers have not been ruled out although it is not clear it caused the crash or other factors were to blame. also passengers were initially told not to evacuate the aircraft and only exited 90 seconds later when the fire erupted. so for the ntsb has not ruled out anything as a fault in the crash. lori: now let's update on the markets with a rally under way. nicole petallides is monitoring it to for us. who is leading the rally today? >> i will get there by first looking at the dow jones industrial average look at

what the traders said today that what we see today sees a and smells of nervous short-covering for some people do not believe the rally is on its way. just be a little cautious. a & d getting the buy rating because their chips used for microsoft x box and playstation it is upgraded to a buy at six box. bacterial. adam: second and final day as the chinese minister commerce held a press briefing last hour more meetings between jack lew are scheduled as well and which adds it is at the warehouse -- rich ads and is at the white house. >> this morning they incorporated the ceos

along with secretary lew and other officials in some ceos larry fink from black rock, according in dupont also the chairman of lenovo and the bank of china among others. one of the main topics is the topic of intellectual property theft u.s. officials say they have had a frank discussion with them and the chinese bring up the edward snowden case to talk about this buying program but the united states and we made it quite clear these are two separate issues with intelligence gathering and coming to the government support to gain the advantage something the united states does not do a and they're saying that they are making progress but as usual it has been slow. on the agenda we just

discussed the theft, transparency, the government procurement, and of course, tide is conservancy. the media's continue through the day and jack lew will give a briefing and q&a this evening. lori: this news to media gathers in idaho for the summer camp for mogul's. we have the inside scoop. adam: lou dobbs is up next as the republicans put their foot down on the immigration and overhaul. lori: fish oil pills and he hasn't the risk to your health. this is fascinating. check out the dollar out it is performing. wheel is touching $107 per barrel. my mantra?

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>> 23 minutes past the hour with your fox news minute. a thunderstorm caused seeing a mudslide on to 20 vehicles on the mountain highway. they had to close a 4-mile section near colorado springs they said recent wildfires had damaged the soil and vegetation.

in seven cisco a group of passengers that survived a plane crash has returned to visit the wreckage. they took 30 survivors and family members to the site one said some cried and others were in disbelief. there is a new study linking fish oil with prostate cancer. those with the high levels of the omega three fatty acid are found to have a 71 percent higher risk of higher grade prostate cancer those are your latest headlines. lori: always a pleasure. thank you. house g.o.p. leaders are flexing muscles putting all boating on the senate overhauled immigration bill to drop food stamps from the

farm bill and we bring back lou dobbs. >> good to see you. i the country ought to be pleased we are watching something we have not seen for a long time that the republicans in congress outwit the democrats strategically. they take on immense responsibility. the republicans of the house have just now by a declining to take up the senate legislation, they take ownership of immigration and border security on their terms with their legislative approach and agenda and a strategy. now the national leaders of border security and immigration. it is so clever what they have done. they have forestalled the usual nonsense from this president who got away with it with obamacare and

continues to repeat the effort to ram it down the throats of the american people to talk about the idea to have a coalition and everybody is for they gain debate bill. it was an absolute disaster if they took it up the republicans would have had it rammed them their throat. lori: where does this well -- what does this leave marco rubio? >> there is an old saying that i will update if you're in the u.s. senate you should not be joining a gang. they all look like absolute fool -- fools. but the advice that they tried to create to suggest bipartisanship and scholarship on the issues of illegal immigration and away for word that is rational and effective, it was a complete sham.

with their running is ischium on the american people and rubio would be running a scam on his own party if the republicans did not take it out. adam: what is the next up? >> we have already seen for hearings. it is regular order in the house. there will be bills introduced in committee and there will be hearings and fact-finding and we know listening to the congressman the house judiciary committee and one of the most important leaders on the issue trade getty and the speaker himself, that we will see careful deliberation by the house of representatives they be to pass new emigration law was to secure the border to ensure the american people that they will put their

trust in the house of representatives they will not have that trust violated. this is a important and historic will before the republican party and representatives. >> lou dobbs every night 7:00 and 10:00 p.m. eastern on fox business and tonight an a unique insight into the controversy of egypt. tonight. adam: nokia it unveils its new smart phone in new york tusis sharper photos but will 41 make pixels actually sell phones? lori: also to hear that 30 percent from a we will talk to the ubs analyst about that. >> will get the other dow

components

adam: hedin to the floor of new york stock exchange with nicole petallides. >> is great for the doubles up there with how and why we're moving but take it for what it is with a record-setting day. we have seen the same-store sales on the rise but you will get numbers after the

bell does so far we're seeing great numbers. june sales with overall consumer spending is on the rise. look at those heady a all-time high and costco did well especially with a higher gasoline prices we're seeing good news. lori: now microsoft's steve ballmer to right now the share is a 2 percent with a vision and coherence to outline new organization with four main engineering units as part of the new set up. we have a managing director and analyst at ubs. what does this mean? let's start with the investment implications than shares are up 2% is this a good move? >> i don't see inca restructuring will make it with shareholder activism

but the market is turning higher and investors are looking at safer stories and microsoft has played with a lower multiple for some time so now we think it is getting the credit that it deserves. you could get 330 in earnings with a 12 multiple we think it could be a $40 stock it has little to do with the stock moved today. lori: things are going so well then why now? >> microsoft has been a little stale and they needed to freshen up. was a needed move to align themselves with the technology for the cloud cloud, mobility, the areas that they effectively has been late. we hear they are focused but it is the right move we spoke to the cfo this morning it had nothing to do

the market but the divisional head. so there is no near-term many energy but it could be helpful long term and obviously steve is under pressure and this is the move they needed to do but it is a longer-term financial impact. lori: you mention the new set up give steve more power? there is always the question of air a parody and it is a bigger question now? >> i think he has just as much power as he had he has a material contribution over several years. they did miss the mobile unit but they have the incredible enterprise business with the 90,000 employees they have been focused on. you cannot do everything right but clearly it is focused on mobility and i think they understand they

are not ignoring it. the consumer business they have been strong with the enterprise if they could get the consumer business up to the same cruise altitude. lori: but i am still curious about the relationship between alan mulally the ceo of ford and steve ballmer. are they tight? i know the he consulted on this. >> i don't know the full details by the despair lee weld mound at steve's father works in the auto industry and i think he had a lot of influence. i am assuming that steve has consulted with a number of people that have a lot of experience. his network is broad. but you getting advice i know i would. lori: and alan mulally certainly sticks out. thank you for your time.

adam: hopefully the restructuring focuses on expanding the tabla business. personal-computer is shipment are sliding 11% verses the same period last year at a total of 76 million shipped worldwide the latest drop is the fifth straight quarter of decline and the longest on record. this headed thinking committee is looking at wall street rescue and telling them what needs to be done to avoid another financial meltdown. we have elizabeth macdonald and charlie gasparino to explain why three years after dr. frank, it still isn't ready with dr. frank. lori: there is the interest rates.

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adam: the dow is up 133 points. it was designed to prevent a repeat of the 2008 financial meltdown but three years later federal agencies are still struggling to enforce dodd-frank financial reform. today the senate is holding a hearing to figure out why the holdup and what new threats may create even more delays.

consider this. the two men behind the legislation, senator chris dodd and congressman barney frank, they aren't even lawmakers anymore. so we want to bring in our very own elizabeth macdonald and charlie gasparino, author of the book, "circle of friends" on insider trading. charlie has new details on what is being held up in washington. >> it is more than held up. vast parts are not implemented including something known as the volcker rule, proposed by presidential visor, paul volcker. he said stop wall street from melting down using balance sheet to trade stocks, bonds. put in a rule that would stop that. that rule has not been implemented. we should point out paul volcker said he thought it would be implemented by the end of the summer. what we're hearing from regulators in washington, they're telling the fox business network the volcker rule will probably not be implemented to the end of the year at earliest.

that gives you indication how screwed up and dysfunctional this law is. i will tell you one other thing. i ran into chris dodd not too long ago in white house correspondents dinner. give you insight he didn't know what he is doing. the canadian, we modeled regulatory structure after the canadian system. it works well in canada where the banks are bigger. guess what? the banks are not bigger. adam: chris dodd got preferential treatment from mows mows around pretended he didn't know the difference. >> it is interesting question whether it will be written as introduced. there are some parts of the law, they have already blown past two thirds of the congressional deadlines. i think that is what is happening now you will see a watered down version. of the volcker rule as initially written you could hold proprietary positions in your trading book if you sold them in 60 days. anything longer than that would be exempt under the rule as it

was initially written which is why it wouldn't have affected jpmorgan london whale. london whale was more long-term positions but -- go ahead. >> it would have affected market-making. >> would have affected market-makeing. >> holding inventory for your clients. that is fundamental basis what a wall street firm does, makes markets and liquidity. >> that is the problem. >> it would dry up the liquidity. >> interpreted on its face it basically says the u.s., the global securities markets actually have to cease to function. that is. one of the problems with it. >> but one thing about always too big to fail there is systemically risk rules coming down, i'll tell you the executive pay rule also put into dodd-frank a lot of union reaction support, telling the investor how much ceos get paid in relationship to the average worker. boy, that is getting blasted out of the water. at&t, mcdonald's weighed in, we don't want that either. maybe that is behind the delays, the lobbying going on. >> i don't think so.

i think what is hampering dodd-frank is what is hampering obamacare. this is -- adam: ineptitude of the government bureaucracy to implement? >> you can not regulate to the degree they need to regulate. adam: okay. >> this is what the government did. it basically created five or six huge banks, massive balance sheets. adam: even bigger than they were before the meltdown. >> more systemically risk housed in less place so it is much more of a tinderbox if it blows. commonsensewise, let me say this. >> wait, that is what the executive pay was so small bore to charlie's point. i'm not saying that is what is hanging up the rule. they tried to do kitchen sink and put everything in it. >> no, no. >> let me ask -- >> executive pay -- adam: it's a minor issue. >> i'm talking about, you're missing my point, both of you. i'm talking about there was so much stuff thrown into that rule it basically hung it up because there was so much lobbying and so much rule making. adam: got caught in the minutia of relevant issues. >> the other thing too to

charlie's point about too big to fail. they buy all the government debt there is argument to break up fanny and freddie. when you break up fanny and freddy, that debt has to show up the mortgage-backed securities will make the big banks even too bigger to fail. >> create five banks holding billions of dollars you have to regulate them. you can not regulate them. it is impossible to do this what they should have done, broken them up in 2008. >> if you break them up bad assets end up at federal reserve. that is why -- >> you would have more banks. more banks. >> more failures. >> and less systemically risk. adam: do what bill clinton never did, let's all inhale and take a deep breath. should we ditch dodd-frank and had discussion coming in and bring back glass-steagall. >> we have senators reintroducing the quote, 21st century glass-steagall act here that is good debate to have. >> if i had my druthers, but

here's the problem. how do you unscramble an egg. these are big companies and systematically important to economy and financial markets. to pull them apart would be really difficult. maybe that's what we have to do. adam: right. >> we should clearly have a debate bit. i'm telling you it will not be easy to take citigroup, okay, here's the retail banking side. here is the investment bank. adam: i follow what you're saying. >> they're so integrated. we're in a mess right now. the u.s. banking system -- adam: you know what is interesting all of this i'm looking at both of you, i have almost for decade combined at your history with the journal and covering wall street this is a discussion we should continue. you two really understand how dodd-frank -- >> we don't. i don't understand anything. they don't understand it. >> got to let you go but i'm reading your book on vacation. i will grill you about it when i get back. >> chris dodd made that similar -- adam: nancy pelosi. we have to go to lori to see how it really works. she knows what she is talking about. lori? lori: what is with all the

compliments? you're definitely on the way to vacation. that was awesome. let's get update on the markets. dow is rallying up 128 points. jason weisberg from the floor of the new york stock exchange. good afternoon. bob doll on with us a little while ago, saying fed yesterday, bernanke's remarks equivalent of trying to put toothpaste back into the tube. is fed confusion behind us? can investors move on with decent idea of the what the plan is? >> i think the plan is just that, stay the course. the fed is clear telegraphing what they're going to do. i thought yesterday was kind of a little unnecessary. the selloff was clearly ridiculous at best. a few weeks ago. there was no news that came out of that. but it just goes to show you what happens when momentum players want to play the game when the long-term players aren't around and you have anemic volume and you can move the market. markets are continuing upward bias. i guess you could say it was

healthy correction a few weeks ago. lori: earnings, maybe you were going right there. everybody is looking for satisfactory at best revenue growth even that. that will be a big problem or not? how do you see it unfolding? >> i see, earnings expectations aren't that great. they have been improving, the level of expectation over the last, let's say two years. i mean the economy is in the doldrums here so to speak. companies have become quite efficient and what analysts will be looking for and investment community will be looking for is meeting these raised levels of expectation even though they're very low. i think we'll see it for the most part. lori: jason, thanks so much for joining us. have a good afternoon. >> you too. adam: a very candid barry diller talking with our dennis kneale at the media mogul conference in sun valley, idaho. he will share with you what is going to change your tv. lori: a phone, it's a camera. nokia's souped-up smartphone, as if anyone is listening. adam: we'll look at some of

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adam: the big names in media are staying mostly tight-lipped as they rubble bows at the allen and company conference in sun valley, idaho, but our dennis kneale was able to get in a few words with iac, ceo, barry diller. dennis what is he having to say? anything about the lawsuits? >> barry diller has a lot to say about most anything and he has the money to allow him to say it. at a conference where they tell most people don't talk to the media. never mind it allen and company makes millions of dollars off the media. the next broadcast signals out of the sky, resells them to smartphone subscribers without

paying broadcasters a cut. we ask whether ario's real aim is build profitable business as it is to hit networks profits? >> utterly absurd that is not our intent. all of this is way overblown because it is such nice drama. that is not the case at all. if you're interested in audience, which is what we think anybody who makes and distributes programs is interested in, should be interested in, all we are is a benefit. we'll add audience. >> absurd, classic cantankerous barry diller. but the broadcast networks sued, aereo again yesterday this time in boston where the service started up. they vow to sue them in every single market where that new service invades. some network executives tell me privately, ultimately, aereo will lose. >> why would we ultimately lose what we already won twice? why would anyone think we would ultimately lose? >> but you got to wonder, you

know. aereo grabs signals and gives them to people without paying networks anything. they didn't pay anything to develop the content. airwaves are free. governments gives networks but the content, is that free? barry diller and aireo are saying it is. networks say no way. this battle is just beginning. adam: that is a battle year watching. you eat and meet them at sun valley. we'll catch up with you later. thank you. lori: a new phone for nokia, a one. early pioneers in cell phone technology is making a push to gain market share in the cell phone space unveiling the lumia 1020 today. it will use operating system and what they're calling the best camera on a smartphone ever equipped with 41 megapixels. it will debut at at&t this month and retail for $299 with a

two-year contract. battle over immigration and farm bills. house republicans refusing to take up the senate's immigration bill saying they will take food stamps out of the farm bill. republican congressman chuck grassley of iowa weighs in. tracy byrnes and ashley webster guide you through the next hour of "markets now" on fox business. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: scottrade- proud to be ranked "best overall client experience."

tracy: hey, good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. stocks flirting with all-time highs again on ben bernanke's comments so where should you be puttings your money now? we'll hear from one strategist, believe it or not, looking at europe. tracy: brave soul. house republicans flexing their muscles saying they won't take up the senate's immigration bill and they want to split the farm bill. how about that? those are fighting words. we'll get reaction from senator chuck grassley and ask him why he thinks the sale of smithfield

foods to a chinese company could actually jeopardize our national security. ashley: small business, big ideas. in 10 years dark popcorn went from one small kitchen in new york city to '80 locations across the country. the company's ceo tells us how he takes on the competition, oh, yes, one kernel at a time. tracy: you went there, didn't you. you had to. we have breaking news on the federal budget. let's go straight to peter barnes down in washington. hey, peter? >> tracy, the federal government post ad big surplus in june and quirks in the calendar and one-time items. $117 billion according to the monthly treasury statement. that compares to a deficit of 60 billion in june last year where 3/4 through the fiscal year and 2013. fiscal deficit is 510 billion. down from the 504 billion in the same period in the last fiscal year, a decrease of

$400 billion. some of that of course caused by the, due to the tax increases that kicked in january 1st on upper income families and for payroll taxes, but budget experts flag ad couple of other things in this surplus this month. for example, revenues were boosted by one-time dividend payments of $59 billion from fannie mae and freddie mac. and another case we saw some moving around of the timing of certain payments that ordinarily would have made in june but were instead moved back to i believe the end of may. so that reduced some of the outlays in june by 34 billion. right there that is $100 billion in deficit reduction alone. tracy and ashley, back to you. tracy: quirky calendar. that sounds quirky to me. you're keeping eye on the senate banking hearings, dodd-frank, right? 3 1/2 years we're into this and we still don't know what the heck is going on.

peter, did we lose you? >> i'm here. tracy: what is going on with dodd-frank? >> financial regulate to, you're right, they march up to capitol hill every six months or so for a periodic grilling on implementation of dodd-frank reform. one senator continued to hammer them on issue of too big to jail. why more financial executives did not get prosecuted for the financial crisis. >> i understand it's different when you have supervisory responsibilities but you have the responsibility to see to it that this law is going to be enforced. part of that is taking people to trial. that is one of the tools in the tool box. >> well it is, a tool, but actually we have, i think, a more, in some ways a more immediate and effective tool which is exercise of supervisory requirements and getting people to change what they have done. >> governor turillo of the fed says that includes fines an

penalties which senator warren noted are often through settlements. ashley and tracy, back to you. tracy: that means not a whole heck of a lot. peter barnes, thank you very much. >> you bet. ashley: let's get to the top of the hour stocks looks for you. nicole petallides on the floor of the new york stock exchange. very healthy day. it is all on ben bernanke's comments yesterday, nicole? >> i'm joined by the boy scouts from burbank, california. this is a way to do a nice market report. why not have them on too? dow jones industrials up 1%, at 15,424. this is record-setting day on wall street, i say if, if we are to close here at these levels. we would be closing at an all-time high for the dow jones industrial average. another thing that is worth noting that the s&p 500 which was up 7 days in a row. we haven't seen that since march. the nasdaq was up six days in a in a row. we haven't seen that since

november 27th. looks like we may go for another day to tack on. obviously this is fueled by some talk by ben bernanke, our fed head who says the kool-aid will keep on coming but the questions now remain, is this short-covering or is this people really believing in this market? that being said i quickly want to check on some new highs on the dow jones industrial average. united technologies, cisco, boeing, 3 m, exxon, hitting new 52-week highs and hey, good for you guys and burbank, california, boy scouts. >> beautiful downtown burbank. do they get the new york stock exchange badge? tracy: that is cool field trip. >> thanks, guys. ashley: thanks, guys. tracy: boy scouts -- ashley: investors of the future. tracy: i thought they pitched tents and collect bugs? no. ashley: could try that at the new york stock exchange. you never know. tracy: oil prices pulling back, more than 1% but still holding above that $104 a barrel mark. price futures phil flynn in the

cme. phil, we're starting to see this at the pump. gas prices are going up. did crude go up too far too fast? >> i think so. we're hearing in a lot of local cash markets in the chicago cbob market they're all rising. a lot has to do with price of oil and a slew of refining issues. interestingly enough we do have a story today from genscape the energy intelligence service. they put out a report, they believe there is a problem with seaway pipeline. that has not been confirmed by enbridge at this time. if there is indeed a problem with that pipeline that could have a major impact not only on the cost of oil but the brent-wti spread. we all know because of u.s. production, the production from the u.s. is getting out to the global market. it is driving up the price of wti. if that pipeline is out it, will be harder to get the oil out of the global market. it could be a major bearish event. we have to watch that. we have the international energy agency warning, hey, guys, there

is plenty of supply around. we'll have more supply than demand next year. don't get too excited on the bull side of the market. tracy: gas bert come down the thank you very much. >> you got it, kid, thank you. ashley: dow and s&p flirting with a record close as ben bernanke reassured the market the fed will keep its foot on the gas for quote, the foreseeable future, unquote. have the markets figured out the difference between tapering and tightening? joining me jack ablin, with b and o private bank. i don't know what bernanke said yesterday he has inside before. it is how the market perceives what he is saying. what is your take? >> i think he is somewhat more dovish. i think there is greater sense that he is trying to keep the foot on the act sell rate tore longer than investors had originally expected. i had heard, after his testimony last month that he felt that he was misunderstood. >> hmmm? >> he felt that he was, you

know, perhaps perceived to be a little overly hawkish. i think this is a way for him to backpedal a little bit, give investors some assurance he will still stand behind them and, you know, more money coming through. ashley: you say though, jack, that the biggest news on qe is the fact that bernanke is likely to retire. what are your thoughts on that? >> well there is a concern that with the potential retirement in january, and i think president obama talked about it, the fact that bernanke isn't going to jackson hole in the fall, you know could also signal that. and so there is a sense that, look, he got us into qe. perhaps he should try to start to get us out before the hands the briefcase over to the next chairman. so there is a sense, at least in our mind that, you know, we could see some tapering before year-end. ashley: all right. yes, finish the job he had begun

so to speak. where are you putting your money this type of market where it wants to go higher and higher? >> that's great, right? seems anywhere is doing pretty well. our favorite market is u.s. large cap with a value bias. the four sectors that we like most notely are finances, health care, consumer staples, consumer discretionary. that's just a combination of valuation and momentum and we've done pretty well with that so far this year. beyond the u.s. though i think emerging markets are cheap. yes they have been turbulent. they seem to be redowning a little bit. of course, developed international. we just initiated a position in international stocks, most notably europe. but here we think that, you know, most of the bad news is out there and now policymakers are going to have to come up with some kind of a stimulus, whether monetary or fiscal, to get this, their moribund economy moving. ashley: right.

>> either way that will be bullish for stocks, negative for the euro. so what we've done is with these european investments we want to hedge the euro back to the u.s. dollar. ashley: are there any sectors in particular in europe thaw like, jack? >> we generally hand those off to other managers. so we just like the overall area of the world and we let other managers pick the stocks within them. ashley: not often we hear that about europe. very quickly, jack, what are your targets on the s&p? we know the economy is improving. we know housing is improving. retail sales are looking good. what kind of year-end number do you target father s&p? >> if i just told me fundamentals and we took quantitative easing off the table i'd say 1550. so it is about a thousand points below where we are on the s&p. given that we have this 85 billion coming to the market, we could continue to 1660, 1670

up towards 17. ashley: yeah. that is that disconnect from reality. jack ablin, thanks for joining us. we appreciate it. >> thank you. tracy: coming up senator chuck grassily says the sale of smithfield foods to a chinese company compromises our food safety and national security. he will join us next. ashley: kids just got out of school but stores already starting back-to-school sales. can you believe they're expecting a strong season. is this a good or bad sign for retailers? we'll have that story coming up next. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550

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and it is to me especially the china story. as a mother i can't help but think what happens when there are no fda standards out there and there is really no competition and we have to worry about it as a national security issue at home, don't we? >> you do, absolutely. now for the smithfield production that would continue in this country, it is still going to have the same safety standards that we always have but i think there's reason to fear meat being imported from china when the chinese company buys smithfield from the standpoint of number one, they have had additives to their feed for their pigs that have been withdrawn because of health issues. tracy: right. >> you also have the national security issue because so many chinese companies are closely associated with the communist government. tracy: now i know you worry about the antitrust issue as well. that companies will not be able to compete. china offers subsidies to their companies. how could american companies

compete with that? >> yeah. well that is a very big one. that probably won't be taken into consideration by our justice department but that is an issue that does make for unfair competition but, within this country, we have four companies already that have 74% curb on the market. so you have more, lessening competition when you have these mergers and the consumer will pay a higher price. tracy: what is your response when people say, hey if we're going to be a global world and put the borders down and trade with everyone and merge with everyone? it is kind of a protectionism issue as well. >> well, it doesn't have to be f we were having a foreign company buy a u.s. company and there wasn't a close relationship between the government of china, or the government of some other country and that company, it wouldn't be an issue. if there was a premarket situation, you know with, very to accept it but it is when you have the unfair competition of

competing against the government that makes it very difficult. tracy: yeah and, i don't know who is going to control china anytime soon. let's move on to immigration, speaking of overseas, i know, sir, that you, the house is trying to break this up into pieces. please tell us where it stand right now? >> i had a meeting with house leaders on monday and quite frankly i think they would be candid with you they don't know where the next move is except right now they reject the senate bill and i think, since i voted against the senate bill, i think that's a wise decision by the house. what they, and i think they have included not to pass a comprehensive bill but what pieces to pass and when to pass them is still up in the air. tracy: now let's talk quickly about the farm by we're hearing now that the food stamps section is being pulled out. do you think that is the way to go with this? >> well, from a practical political standpoint it's not the way to go because i don't

see how you get a farm bill through a house of representatives controlled bit big cities where they know nothing about agriculture if you don't have food stamps as part of it but ideal list i cannily i would like to see them separated for this reason because i get tired of reading in "the new york times" that we passed a 9 hundred-billion dollar farm bill and sounds like it is going all into the pockets of farmers where 80% of it is food stamps. i think it's a bad public relations things for agriculture to be part of a food stamp bill. tracy: i agree with you, sir but the problem this is the way things are done. we christmas tree, throw decorations in, do all different things to get the bills passed. to your point that is what has to happen with farm bill. >> yes, and but remember, it has been this way since the late 1960s. it has been an ongoing pattern to put the together based on a proposition of 40 years ago we had farm surpluses and so, feeding hungry people is one way

of getting rid of those farm surpluses but that is not the issue of today. tracy: no, it's not. we know our farmers are suffering. senator grassley, thanks for speaking out for them. >> thank you. ashley: let's get to these markets now. nicole petallides on the floor of the nyse. the dow continuing to gather strength, up 142 points now, nicole. >> right. a great day on wall street here. the dow has an up arrow. the s&p is going for obviously multiple days, going for eight days straight of gains. people get wary when you see gain after gain after gain and people say there is definitely short-covering going on in this market as well helping to push it higher though. the vix, the fear index, is to the downside now. what is interesting the u.s. dollar is lower. that helped this market stay afloat. look at microsoft. microsoft shares hitting a new 52-week high on the heels of big restructuring that is going on. that is dramatic.

moves them into four operating divisions of apps, cloud, devices, which ii tablet, and pcs. they're doing changes with management lines and being more innovative to get products out faster. ashley: all about the mobile world. nicole, thanks so much. we'll be back at the bottom of the hour. tracy: finally one strategic plan. regional banks have had a good run this year. up next elizabeth macdonald will tell us why they're doing so well and giving us a good outlook for the second half. we'll be right back. ♪ [ villain ] well mr. baldwin... it appears our journey has come to a delightful end. then i better use the capital one purchase eraser to redeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight with a few taps, it's taken care of. impressive baldwin. does it work for hotels?

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>> 23 minutes past the hour. hi, everybody, i'm jamie coal by this is your fox news minute. in ohio cleanup is underway as several violent storms swept through much of that state. winds of 70 miles an hour, uprooting trees and damaging roofs and bringing down power lines. utility crews trying to restore electricity to 88,000 customers there. in colorado they had a thunderstorm that caused a mudslide sending rocks and debris to 20 cars on a mountain highway. sheriffs had to close a four-mile section of u.s. 24 near colorado springs. the national weather service says recent fires destroyed vegetation that usually absorbs heavy rainfall.

new york yankee derek jeter back, having a hit an scoring a run. this is his first major league game since he broke his ankle in the alcs against detroit in october. yankees need detroit 4-3 in the fourth inning. am i allowed to say my opinion on that? ashley: go. >> go yankees! tracy: i thought you were going to say something way worse. that was clean, thank you, jamie colby. ashley: time to make money with charles payne. this hour focusing on bank earnings. you know, is this, the head of all big earnings in the second quarter. we have two major banks reporting tomorrow, charles. are we expecting? what would you do? >> jpmorgan and wells fargo. start with jpmorgan. street is looking for a buck 44. just about three months they were looking for $1.38. earnings estimates are going up. they beat the street each of the last four quarters. insiders bought 7,445,000

shares. stock has a little resistance at 58. if i'm in the stock i definitely hold it and i would even consider buying this one conversely wells fargo i'm not too sure. street is looking for 93. that is where its been last three months. they beat the street each of the last three quarters, but only by low single digits. nevertheless you see the stock had a good move. if i'm in it i don't sell it. but on the downside, if there is hiccup, the downside risk will be $37 on that one. ashley: wells fargo in the mortgage industry. all the refi's that will be done probably have already been done. now we have rising interest rates. >> rates are shooting up. last refi data we had was not pretty encouraging. so i'm a little worried about that. the bigger banks i'm worried about, get to citibank. talk about citi on monday. schwab, 8 7 cents, that hasn't changed. missed last time out. quarter before that they were only in line.

obviously some execution issues. they have give out data how many trades were done, last one for may, 505,000 trades. that was up 17% year-over-year. up 8% month over month. that is pretty good. we might have seen an inflection point with respect to them with people out trading the market i'm not in schwab. i don't think i would buy it t has a very attractive chart. room to the up side. the stock i stayed away from for a while is citi. i got to tell you, wall street loves this stock. i don't know, i can't -- ashley: you don't know why? >> you know, it still seems to be pretty opaque to me. i'm still not sure what is brewing beneath the surface. nevertheless earnings estimates a buck 18. they were a $103. they beat the street three out of last four times. they had a split on citi. split adjusted to highs, something outrageous. 500 points. tracy: why bother when you have a bunch of other good options

out there? >> i'm worried about citi. wall street loves the big money center banks. i like jpmorgan out of those the best. ashley: all right. charles. tracy: do more of that. i love it. >> okay. tracy: one part of the bank sector that usually flyings under the radar is standing out. we're talking about regionals. here is little elizabeth macdonald with us now. emac's bottom line. hi, lizzie. >> good to be with you, tracy and ashley. i best the theme here is bore something actually sexy when you see the year-to-date returns, wow, they're more than double digits. some of the regionals, little guys, are really making a lot of money and stocks are showing it. year-to-date change, up 73%, all the way down to homebanc shares, up 59%. bank of the ozarks reports after the bell. we're looking for 57 cents a share. that stock is up 37% year-to-date. fifth third reports next week. they're up 24%. what is going on here? they're making money the

old-fashioned way. long term lending rate is up a full percentage point since may. that fastest growth we've seen since 2010. they can raise prices on new loans. we know they are pummeled by slim lending margins and net interest margin everyone talks about has been razor thin but they may be expanding for these banks. we're not just talking regionals like fifth third. the other thing at play. some stocks are momentum plays. they hit a crater during the financial collapse and troughing along a the bottom for a while. that may be why you're seeing such a dramatic increase in double digits in their stock performance. i'll tell youing, look attkbw bank index that sup 45%. where versus the s&p five which is basically up less than half of that. kbw bank index, which includes money center, the big banks an regionals, that is up 45%.

23 percentage points more than what the s&p is posting year-over-year. again the old-fashioned way they're making money. the one caveat here, final point i'm going to make, higher capital requirements are dinging securities health for sale, paper gains at big banks. that is not a issue for super regionals and regionals and their securities held for sale. what we're seeing is a strong stock performance and we may see more earnings surprises to the upside with regionals as the earnings roll out during the earnings season. send it back to you guys. ashley: great stuff. liz mack elizabeth macdonald. thanks so much. >> sure. ashley: it is a critical time for corn. jeff flock looks at the situation from a farm in illinois. jeff? >> look how beautiful, ashley, the corn looks. the government today said there would be a bin-busting all-time record corn harvest this year. prices should be tanking. they are not. i will be back in a moment to explain exactly why that is.

that is beautiful. look at this.

tracy: we will head down to use nicole petallides at the new york stock exchange. >> great news if you like to see the market continued to the upside was a little breath of relief uc the s&p 500 with the dow jones industrial average up at 14,452 at the session highs ofand the nasdaq with the closing highs since

the year 2000. look right now at yum! brands because there is a lot of concern about chicken that really hit the sales in the latest quarter also they have sees improvement that obviously puts pressure on them that the media has slowed down to cover that now people are going to kentucky fried chicken in china. tracy: thank you. >> june same-store sales are out to see that spending is improving with the back-to-school shopping season those were open at least one year up 4.2% beating the estimates of 3.6%. joining us now is chief retail analyst before we

break it down what is off your cents off of retail right ralph? >> the consumer keeps showing as they have a lot of fortitude to spend despite the fact there is not a lot of in your pocket stimulus but they say we will just keep moving forward if they need that item i will move fortified need to replenish it i will move forward. ashley: one thing that was noted that the lower end are holding back on nonessential purchases but that is showing in the numbers. >> what you see is think of a horse race starting to get further ahead of the pack. it is starting to do well because there is more discretionary items available. how the consumer feels comfortable but the economy

is stabilizing and the job market has stabilized in the key market is the house seeing value component. ashley: look at the individual stocks. costco had a very good quarter with same-store sales pdt expectations probably one of the best so far. >> what they're doing right is when you haven't bought in a while that you need to replenish the bills' 24 rolls of paper towels it has gotten very low so now you think let's go back in and replenish there berry seasonally rain and where outdoor furniture was a better opportunity in when the weather breaks when they

do very well. ashley: also the estimates the retailer not doing so well. anything else? >> as we enter into the back to school period watch how the consumer will evolves. not everybody buys back to school but it is a good indication how the year welfare or how holiday welfare. what we are seeing this year so far that is different from prior years but parents are willing to let kids choose what to buy. sova buccal may take from the chin this month but they may give momentum with back-to-school. ashley: thank you for being here. tracy: and she will not be picking out the clothes. [laughter]

we'll close the closing down $1.61 now $104.91 a barrel. so this actually comes after the new 52 week high that is what the wrist saying it went too far too fast. >> the fundamentals were to there. >> to show a surprise buildup of the corn crop is mixed news in jeff flock is in a beautiful korn fielded i cannot believe what a difference a year makes. >> it is so incredible and it is exactly what the government says today. put the numbers up of the estimates today and they said look at 2009 all-time record harvest. last year about

10 billion bushels it was bad. this time the all-time record. >> it is probably the best harvest i have had in the last 50 years. >> but if you look at the core and markets base of what i told you the coroner should be taking with prices headed down. they are still well over $7 but people are concerned about the weather. you are not tasseling yet what is that? >> we're looking for the tassel. we have unwrapped three leaves so we are probably still seven or 10 days away. there is the tassel it will be out to pollinate the accord. >> if the tassel comes late when it is hot what happens to the yield? >> it goes down and look at the water -- weather forecast and 10 days out

there is no rain. >> that is why the market is not going into the tank. look at december in the difference between july in what they are predicting there is a huge spread but there is the year that these tassels are not yet but they will come out when it is hot in that will affect the yield. tracy: this time last to you're stating in a dusty field. >> did was great team and brown you did still find moisture in the ground it looks hard on top of that is moisture down there. plenty of moisture this year ashley: thank you so much. >> he has to have the backup

plan in this business. [laughter] revolutionizing the popcorn business now all ditching the of artificial butter but now has corbeil flavors. next. >> look at your treasuries. the 10 year is down in the 30 year moves down as well actually and changing. we will be right back. 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 biness 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.

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ask your doctor about e only underarm low t treatment, axiron. >> i am adam shapiro. comments from chairman bernanke sparks a rally on wall street he says the central bank will continue to support u.s. economy. right now the dow is up triple digits 159 points. mortgage rates the highest since 2011 the average rate is now four-point 5%. travelers should have patience more flights are running late this year they ended 2012. the transportation department says 79 .4% still arrived on time in may but that is down from last year. american eagle the regional affiliate of american airlines has the worst rate

cancellations also picked up from one year ago. this is the latest from fox business, giving you the power to prosper.

ashley: time to look at the stocks that we do every 15 minutes. this is interesting that know if bernanke really said anything that was that different but the market's sure like it. >> tapering is not tightening. that is it in a net show every single person i have spoke to since i walked in the sporting at 730 is scratching their head. it is nothing new but it has forced us to a new high use the short coverings and technicians thought we would paying around 1550 but we

blew through that number. it is surprising to also give credit to for adding to the move that we saw. ashley: thank you for joining us. tracy: talk about the new york city apartment kitchen now with all of its locations in 25 cities we have the co-founder and ceo of box popcorn. my kids come home every single day and pop it in the microwave. this is not what you we're doing? >> we are changing. i just want to thank you for having us on but having that korn statement even before.

how cool is that? i tasted cattle court i thought it could be done better more naturally and it all started in the new york apartment where we developed the flavors that we set off to colorado to open the first kiosk we would start popping the multifold flavor a rebuilt it colorado 20032009 multiple stores all different units in high traffic big news in the year at the pepsi center then in 2009 we said it is time to franchise. we got 80 units very quickly , 100 franchisees' a and the amazing saying is it is the one put $7 billion industry and there is 15 billion courts consumed every year one court per week per year.

in our mind and has not been done that's fantastic. movie theater or microwave. tracy: let's get to the gore may part. they beg for the movie theater popcorn. >> we use all corn oil and natural ingredients it helps us to achieve amazing flavors then people come to the kiosk and they can and mix of flavors, a pate you in cheddar or sweetie and white cheddar with this we better to when you have revenue growth of 5,000 percent but we just talked about the accord. with commodity prices have audio head chad? and you pass that on to your consumer? >> it is a great question.

we have been to and we don't we are a fairly large user of a product we have a good supply and that is the issue. commodity prices come and go. we have been observing some of that and we are looking forward to this year thinking it will be a bitter year and we are excited. our comprise it is -- our proprietor's are popping and doing a great job because they are the serving the customer sampling and doing a fantastic job. and we have an amazing hall office at pop headquarters. tracy: you are a fun guy to work for either you're thinking about opening in times square. >> please stop by. look for one of the pop shops we have amazing give

sandbanks. this has been great. you guys are the best. ashley: quite to the salesman. who's who of media gathering for the annual southwark -- conference and dennis kneale is there. he talked to barry diller about everything under the sun. at sun valley.

ashley: it is state number two of the bay media conference in sun valley idaho and dennis kneale could snag that -- the ceo

barry diller is the way. >> hello. as i see and hear 1 mile away from the action you have to wonder why do journalist do it? they are quarantined and sequestered a.m. watched by 80 of cops who did everything but frisco us because all in one place we get to see corporate superstars like these. bob eiger shows up, a former fox chief who is a major player in the business, bill gates who is bill gates did made within and the major league baseball commissioner then the most fearsome executive of all barry diller hannibal the cannibal form for bypass tim about the smart phone tv service the dissipated networks anything and i said the you

just want to hurt the network business that you used to work for? >> that is absurd all of this has been overblown because it is nice job of. that is not the case at all. if you are interested in the audience that anybody who thinks in makes programming should be interested in, all we are is a benefit. >> some of the executives like glassman says dore brian roberts to controls comcast nbc and barry diller is here with some of those have sued them and a lawsuit was filed yesterday so of must get awkward we will see how that lawsuit turns out. ashley: it certainly is a convention of egos.

tracy: there is no room for the convention. [laughter] eight you. ashley: liz claman will talk to you that top forecasters. what will the big call the? is a fox business exclusive with countdown to the closing bell. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550

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>> the bernanke bounce how will stocks and investments react? we talk with a forecaster who has nailed it over and over. you cannot afford to miss this "fox business exclusive." jpmorgan and wells fargo will unveil earnings tomorrow but how big of a

threat are rising interest rates to their future performance? we take you inside the options market which side you may want to take right now. microsoft makeover. ceo steve ballmer will make it more nimble to keep up with the agile smart phone makers like kugel and apple. we report you decide. countdown to the closing bell starts right now. liz: to remember that movie? talk about a predictor the last hour of trading when you glanced at individual stocks to see 59 of them or all consumer stocks hitting the all-time high you have a situation sending us a message. the consumer is alive a and kicking.