dennis: worry wart. orange, the new black, or the new green? netflix's latest show creating buzz, but what about profits and subscriber growth? the bold bear case on netflix shares coming up so you make the call. lori: day one of the trial of the former goldman sachs employee accused of misleading investors ahead. we have the latest against fabulous fabs. dennis: a small business owner fighting and winning after being shut down after complaining about the stench. i adopt think there's a stench of bacon, but bacon smells fantastic. time for stocks now, to the floor of the new york stock exchange, and small gains and losses today, nicole. >> that's right. we are seeing the back- and-forth action. sometimes it crosses 20 times in

a day finding footing, and, particularly, now, three straight weeks of gains. the dow right now up about 11 points sitting here at the level of 15474. not near the all-time highs yet, but getting closer and closer bit by bit. the ten-year yield under 2.58 according to the cash to allow them to keep the mild bid here going with markets that are favorable. i want to look at citi group because they have quarterly numbers showing profit on the rise, and that, obviously, has helped citigroup along as we have michael in place working on cutting costs, building earnings, and the like. so far, so good. stock's up 2.1%, great news there. citigroup and financials have done well, and that, obviously, gives the market confidence. back to you. lori: nicole, thank you as always. topping the stories today,

shares of boeing climbing as much as 3% as british authorities said batteries were likely not the cause of the fire on the 787 ethiopia airlines plane in london's heathrow airport. well, dow jones reporting that the transmitter's looked as at as a possible cause. they are not canceling trips, 787's biggest market, and the update on the boeing 777, the triple seven that crashed in san fransisco airport, asiana airlines says they are considering legal action now against ktvu, an oakland television station after an intern at the ntsb mistakenly confirmed inaccurate an offensive names as those of the pilots. meanwhile, the drug maker accused of chinese police of bribing chinese officials and doctors to boost sales and raise prices of the medicines. the min industry of public security alleges they

transferred $489 million to more than 700 travel agencies since 2007. back in new york, jury selection begins in the civil trial of the former vice president, and the securities and exchange commission accused fab by because fab of misleading investors costing them more than a million dollars when the housing market collapsed. dennis: oil drifts slightly, i don't know if it's higher or lower, but massive gains following ben bernanke's remarks. going to phil flynn, the price futures group in the trading pits of the cme. phil? >> it's floating higher and lower. lower big early this morning, dennis with the china data here, down over a dollar here, and we played into that more when we got the soft retail sales data, but that market's heating up, again, back almost even on the day, and we were higher on the

day just a few minutes ago, and there's a lot of things at play here. one report today that opec is talking about cutting production in december by 500,000 barrels impacting the brent crude market that is tight because of maintenance in the north state. >> tell us about the impact on that, forecasters call for a cooler second half of july? >> you bet ya. prices hitting a two-week low here in futures. it's not all well and good. no new york, prices soar, 70 cents higher than the prices here. that's due to hot weather and pipeline maintenance issue so while the rest of the country is lower cooling bills, new york pays it higher. dennis: the increase of oil up to $105 a barrel, hate to see, how much is ben bernanke is how much is jitters about the middle east with egypt on fire and things like that? >> i don't think you can underestimate the power of ben

bernanke. there's absolutely no doubt that when ben bernanke speaks, the market listens. i think 6 o% of that is that, but, you know, it's also serious situation with the egypt right now. right now, there's the muslim brotherhood protesting on the streets today. we heard from the u.s. state department that warned the egyptian government to quit taking political prisoners at that point so that situation is still on high. the suez canal, obvious, major transportation point on highly -- high alert. it's keeping pryingses elevated. dennis: all right, good, thank you very much, phil flynn of price futures group. >> thank you, dennis. lori: thanks gentlemen. predicting minimal disruptive effects on the economy from higher capital level requirements on banks, rich edson in washington, d.c. with more on what the fed governor said about that, rich? >> well, it's because of the significant transition period

banks will have enough time to adjust to higher standards plunting effects on the economy. banks warned of the effects of two standards claiming to reduce capacity to lend money in a time when the economy really needs it. they weighed in on a senate proposal to reinstate a force separation of commercial and investment banking saying he's skeptical about it. >> when i put two things together, et ethics and unintended consequences. my own sense is that i wouldn't have this approach as high on my list. >> somewhat of a no he was later asked. he notes of the firm's hardest hit, they were investment banks who didn't have a substantial commercial banking outfit. the idea that the fed begins to pull back on the bond buying program, he says when the fed

begins to taper, it will slow purchases and stop them. they are not discussing unwinding or selling securities they bought, and when the fed tapers, there's a very accommodative position. back to you. lori: rich edson, always a pleasure, thank you. speaking of fed presidents, our own peter barnes has the first television interview with esther george, but more famous for being a dissenter as of late to mr. ben bernanke. don't miss that exclusive here on fox business. the s&p 500 headed forward 20th record close this year, but the next guest is raising cash, he says, for the first time this year, and says you should, too, ahead of what could be a 12% pullback coming soon. jeff, chief investment strategist joins us now, and, jeff, great to have you on the program. you're pin pointing this, why is

that? >> i'm talked about target dates, deriving quantitatively and timing models for the last month. i targeted a timing point for july 19th, sticking with that. there's a lot of things coming to the from a backdrop that could be the trigger event, the fed speak on the 17th and 18th, and you got, what i think, will be a disappointing revenue season with second quarter revenues and earnings coming out and you'll hear before the congress adjourns, some talk out of the hill that sequestering is taking a bite. lori: staiding the case well, but you heard this morning from the political conference there's damage control taking the tooth paste trying to put it back in the tube with the chaos and miscommunication ben bernanke set off months ago, so if a taper or any kind of tightening is not in the forecast, is there steam behind it? >> i think the market is well over bought on a short to

intermediate term basis, and they are more overbought than any time in the past 12 months. earnings and revenues disappoint. the pullback is for buying because i think we are in a new bull market, but on a short to interimmediate term basis, there's a pull back here. lori: what do you like? i know you're a fan of the pharmacy companies which is interesting. >> well, the drugstores, in particular, we've been in wall greens since -- walgreens since the mid 30s, we have an out perform rating on it. they have $5.30 worth of earnings power in 2015 if it comes together, and i like the dog of the group right now, rite-aid, outperform rating on that, and if that comes together, there's a billion dollars -- not in free cash, but cash flow by 2015. lori: right. refinanced the debt, but the other side of this is the bigger picture, and reading analysts'

commentary that anything you buy in the drugstore, you can get in a dozen other places whether it's online or brick and mortar. how does the competitive forecast think of that in >> the premise, when we started buying cvs on obamacare was that you were going to get foot traffic because of 30 million people coming under pharmacy benefits if you will and drugs, and if you get the traffic into the stores, they are going to be buying things more than just drugs. lori: i have to ask about cash before we go. the tabs are huge like 80 billion or something like that, and you're a fan of cash advising people to increase their lot and allocation; right? >> that's right. the rotation out of bond funds and into equity centric mutual funds has not begun yet. rotations that is taking place over 18 months is out of nonu.s. centric stocks and u.s. equities.

lori: thank you so much. you minded me to check mine much more often. thank you. good tech -- technical indicator; right? how's your oscillator? red hot tech launches, turning into more of a sis -- sizzle. dennis: original content spur subscribers? the netflix debate. both sides of the debate with netflix bear and bull. lori: a lot of fun. the wait over, twinkies returning to store shelf, and jeff flock next with the man behind the relaunch. ♪ ♪ ♪

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dennis: it's official, twinkies are back on the store shelf, and we are in illinois, and earlier, we spoke what hostess calls the sweetest comeback in the history of ever.

>> a new day for twinkie, and right here, this is the metropolis, the man who saved twinkie. look at this. jeff flock, live on fox business. >> how are you? >> good to see you, sir. >> thank you. >> you have saved so many companies, bumblebee, you pick american iconic brands. why do you do that? >> i love the brand. they have a history. they have a culture. they have a long appeal to consumers, and many of them tend to get in a little trouble, tired over the years, and we have found a challenge and opportunity to bring them back, very exciting, and very fulfilling to tell you the truth. >> maybe, literally dozens of american companies just to tell the viewers, bumblebee. >> vlassic, premier foods in europe, mum champaigne, hundreds of brands. 78 companies. >> you come in, you make the brands buyable again. why did you choose hostess and

twinkie? >> because hostess and twng ky are truly, truly iconic brands. clearly, it's obvious that the american public has embraced the brands more than any other experience i've ever seen, and i'm proud of it. i hope we can be good stewards, and i hope they are here a hundred years from today. >> mr. metropolis, appreciate the time. >> thank you very much. dennis: thank you, jeff flock. remember, a lot of union jobs lost when the bakers would not grant concessions, but new jobs created nonunion there. lori: fewer workers though, i understand. capitalism at its best, i suppose, would you agree? dennis: yes. lori: checking the market on the floor of the new york stock exchange with a wireless deal. >> big news today, indeed, and leap wireless leaping higher to an exorbitant amount in one day. 115% gain, dow components,

telecom company dun 1 #%, 35.51 for at&t, the name to watch here. the dow component. what we're watching here is at&t's making this bid, 1.19 billion dollars, nearly 1.2 billion dollar bid for leap wireless. leap wireless, prepaid mobile service provider, obviously, at&t gains air wave, and you see leap is gaining there, and what's interesting in with this i said an 88% premium, jumping an exorbitant amount, but this is a ten-year chart of leap, which, today's move, a huge one, but this was a hundred dollar stock back in 2007. that was not that long ago so people who have seen the market come back and shares of so many different equities come back have not seen leap recover at all, obviously, in comparison to the levels seen back in 2007, so the great day for today, but issue obviously, leap wireless shareholders for the long haul feel they are gypped.

back to you. dennis: thank you very much, nicole. well, you know, that brand new z10 smart phone to bring back blackberry back from the dead? four months after release, retailers are slashing the price of the company's flag ship phone by as much as 75%. that is not a sign of great demand, guys. likewise, microsoft cuts the price by 30% for its latest gadget, the surface tablet. it's an attempt to lure customers away from the popular apple ipad and android taplesses. microsoft up 30% since launching the surface in october, that's coincidence, not because of, hitting a new 52 #-week high today. lori: robertson cano playing the field ahead of the home run derby, and what do jay-z and his people have to do with that? what's the connection? huh, stick around to find out. dennis: and the crowd goes wild. inside look at crowd funding websites linking average investors with entrepreneurs

looking to start the next big thing. ♪ ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

>> at 22 minutes past the hour, your fox news minute. in chi owe, the u.s. is calling on the egyptian military to avoid political motivated arrests. u.s. deputy secretary of state burns met with the new interim president. it's the first high level u.s. visit since the military ousted egyptian president morsi july 3. national security agency leaker, edward snowden has thousands of sensitive documents describing how the nsa operates, and glen, the guardian journalist, who broke the snowden story says he did not december close the most damaging information he has against the united states. president obama will welcome former president george hw bush and former first lady barbara bush to the white house to recognize the 5,000 points of light award recipients. president bush created the program in 1989 to honor

volunteer service. those are your headlines. i'm lauren green, and back to lori and adam. lori: thank you so much. a new way to raise money through social media. so far, the crowd funding start, kickstarter, raised $2.7 billion from 4.3 million people, a number expected to double by the end of the year. fox's lian hases us with a true american success story, and crowd funding is catching on? >> yeah, you got a great idea but banks and inest -- investors turn you down. turn to strangers on the web, crowd funding, and here's how it works. >> i was so nervous so i get text messages, a hundred thousand, two hundred thousands. money rolled in. >> watched can closely, it's like an atm machine. >> loved it. it was the coolest thing. >> filmmakers wanted to make a documentary about crowd funding. >> for me, it's the ultimate american dream. if you have an idea now, anybody

can fund it themselves. >> a month ago, the two ran out of money. >> we took this as far as we can with our own resources, and just like the people featured in the film, we're now reaching out to you. >> turning to the community funding website, kick starter, to raise the all or nothing $85,000. >> when you hit live button on kick starter, you are then opening every bit of social kind of value and equity that you got putting on the line. >> we felted like it made since to crowd fund the movie on crowd funding. >> we checked in. >> we are at 71450 with hours to go. >> they raised money from the public, not a bank. >> you're not selling a product, but bringing people into the experience, your biggest fanning. >> individual donors funded thousands of projects. from food trucks, dance troupes, to solar vehicles. >> join us in our effort to roll

out the elf in your city. >> it involved writers, movies, and the biggest are games and gadgets. the movie producers, by the way, raised 85 grand, and the movie comes out next year. >> naturally. interesting story. thank you..@ >> well, new york yankee's second baseman cano teamed up with pepsi to be the face of the marketing campaign. this will be the first endorsement deal for cano since ditching the megaagent signing with jarks-z's rock nation sports management. the first televised ad will air tomorrow night in the baseball all-star game. now, in addition to representing the american league as a starting second baseman, he's captain of the american league home run derby team at the nasdaq this morning to ring the opening bell in celebration of the slug fest. catch that tonight on fox at

7:30 p.m. eastern time. >> who needs jeter with cano these days; right? i think his time has come and gone. and a-rod and rivera, new era. keep it to business, not sports, why we're here, of course. the funny smell in san fransisco's ashford neighborhood is not what you think it is. the bacon food fight that has a strong stench of regulation. dennis: record run for netflix's share up 180% so far this year. will new original programming propel the stock higher? look at the new series "orange is the new black" next. ♪ ♪

lori: the dow is hanging on albeit slightly. time for stocks as we do every 15. let's get details on the market with nicole petallides. you are shares of imax. >> every kid that wants to see a 3-d movie they want to go to imax, the greatest theater of all-time. everybody loves the imax theaters. they continue to expand and do well. let's look at the stock right now which is up four 1/2% on news they are expanding over in asia in particular. 30 more screens in china and another five in south korea which obviously builds their standing there.

it has continued to release foreign language films, 3-d films and the stock year-to-date is a winner up 16%. back to you. dennis: thank you very much, nicole. orange is the new black but also the new green. netflix's latest original show creating a lot of buzz but can it lure new subscribers and further boost netflix shares? we're joined by s&p capital iq analyst, tuna amobi. and richard tolow to give us the skinny where netflix goes from here. thank you for being with us, gentlemen. you could not be more divided. tuna, you have a price target of the stock of $225. richard you have a $80. tuna, make the bullish case. >> you see the stock go past our target price. the netflix is third or half of the way through. huge upside potential internationally as well. the company has been able to ease a lot of concerns about

content spending. you have subscriber and revenue growth going up for content spending. you will see margin expansion and seems like two years ago they talked about the brand recovery. who would have thought this would make such a come back in three years. dennis: rich, a lot of buzz on the orange is the new black but it doesn't necessarily lift revenues and subscribers at netflix. >> that is exactly right. netflix will spend $400 million on original content. so they have to have been incremental inflow of subscribers of about three, four million subscribers above what they organically get, about 1.2 a quarter in order to make this all work. so far in the fourth quarter of 2012, the first quarter of 2013 it's worked out but "house of cards" was a very powerful show. cross ad lot of demographics.

they have had two failures. "hemlock grove" and lillehammer, spending $60 million on the show. "orange is the new black." critical, from acting point ever view. looks like a niche audience that will get very high reviews like rectified on sundance channel but may not grab the big audience they need to grab. dennis: tuna, what do you say, as netflix begins to fancy itself more as an hbo and does more and more gambles on original shows, the overall batting average has to falls, right? they didn't do so well with "arrested development," did they? >> i agree with last comment that "hemlock grove" and "lillehammer" were failures. tough look at netflix original strategy holistically. i think it is early you could argue. it has been off the gaetz much stronger than expected.

they talked about ratcheting up to potentially up to 20 shows in the last two or three years. as they continue to go for more and more exclusivity i think you will see originals play a bigger role in subscriber acquisition and retention. i would say the original strategy is trending much better than expected. dennis: rich, go ahead. here is where tuna is wrong. the company hasn't given us any numbers what the actual viewership of any of these roles really is. it could beat their expectations and maybe their expectations are set to low and maybe beat my expectations too if i spent $400 million on something. what investors need to know is this thing worth $200 a share. i will remind tuna that the company earned $4.11 in 2011. and it is on track to earn between 1 dollar and $2 in 2013. therefore, the valuation is expanded based on the publicity of these shows.

reed hastings -- it hasn't worked well for numbers creation. >> keep in mind. we're forecasting about 43 million, end of this year worldwide subscriber streaming growth. up to 50 million last year. >> international subscribers lose a lost money. >> key is they're going to be able to use the profit from the dvd business and reinvest and very much articulated strategy to be measured in international expansion. you have to keep in mind this is relatively nascent business model. what they have been able to demonstrate is, they will continue to be a major player. in fact the leader, the first mover advantage, they have not relinquished that yet. as much as agree there is digestion of some gains to come in terms of valuation, i would not be bearish at this point in time. >> technology and first mover advantage is not necessarily the best advantage, okay? we look at rim versus apple. we look at aol versus google.

first mover advantage does not necessarily buy you stock profits over a five or 10-year period for the equity investor. dennis: i have to wrap you both. tuna, we've got to go. so far netflix looking awfully good this year. so far tuna has been right and richard has been wrong. when we have another verdict we'll bring you guys back to discuss it. thank you, tuna and richard. good job. lori: it is day one of the trial of former goldman sachs employee accused of misleading investors. charlie gasparino is here next against the case against fa brees tourre. dennis: we'll look at 10-year and treasurys.

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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. ♪ >> i'm melissa francis with your fox business brief. in the heat of the summer driving season travel remembers feeling the pain at the pump. according to aaa's daily fuel gauge the national average for a gallon of regular stands at six, sorry, 3.61. that is a six cent jump since friday. professional soccer club real madrid scoring number one spot on the top 50 most valuable sports teams according to fox. this spanish power is worth $3.3 billion. new york yankees are in fourth place. avis budget is buying payless car rental for about

$50 million. the move will help avis expand its efforts into the discount car segment. of. avis plans to operate payless at a separate at brand. coming five p.m. eastern, marry schiavo on boeing's latest woes. many that is the latest for from fox business, giving you the power to prosper.

dennis: all right. remember fabulous fab? lori: yeah. dennis: fabrice tourre midlevel investment banking at goldman sachs. only guy basically charged in entire meltdown. no senior executives. some of the biggest names on wall street. his trial begins today. charlie gasparino will tell what is going on. >> guys, if you think about it, bear stearns, lehman brothers, citigroup, merrill lynch, not a single senior executive was charged at any of those firms for financially-related crimes. what it comes down to, the

fabulous fab tourre? why do we call him fabulous? it was in an e-mail. >> whole build something about to collapse anytime now. only potential survivor, the fabulous fab. >> what is he talking about? a synthetic cdo. a product made up of mortgage back the securities or sin threat dick mortgage-backed securities. we don't have to get into all that. he sold that to investors. aba capital, a bond insurance company that bought this pile of junk that he calls a pile of junk. the sec is essentially charging him with putting together and selling something that know was fraudulent. that he knew was going to blow up that is what it comes to today. i would point out, there is a jury selection this is a civil trial. what is interesting about a civil trial, the sec has a lower burden of proof. it is a preponderance of evidence. not the sort of high, intent, what is the word for out? dennis: beyond all reasonable

doubt. >> you don't have to go there. this is what it comes down to. i will say this when i talk to people on the street they wonder why the sec brought this case. obviously he could have settled. still what we have here is kind of an interesting dynamic when you don't have dick fuld. i'm not saying dick fuld should be charged but the financial crisis should not come down to fabulous fab tourre. there is a question whether the sec is wasting money. since i'm paid to draw conclusions with my book. lori: circle of friends. >> there it is. one. main thesises of my book, why go after insider trading so heavily after the financial crisis? because these cases are more difficult to bring. they didn't bring them. they had insider trading right on their lap. dennis: in this case he was selling to various sophisticated buyers. this is not orphan fund this is wall street shop. >> it was a bond insurer. this is the problem is. ec has. clearly e-mails look like he was

hiding. >> terrible and arrogant. >> they look terrible and arrogant. here is why he is not charged with criminal fraud. if fob louse fab did not put together a whole butch of stuff and put together switch stuff and switch out the good investments for these bad investments. those peel on the other end knew what was in the portfolio. lori: you're talking about the paulson hedge fund, right? >> we should point out -- lori: is this separate case? >> this is failure basically to make proper disclosure. the other thing the sec is saying that fabulous fab did not disclose this is a thing was put together that was made to implode, made to fail because the other guy on the other end helping him put together this was john paulson. john paulson made his billions during the 2007, 2008 -- lori: putting portfolio and putting in toxic instruments and shorting it. >> he shorted the subprime market. paulson is on the other end of this trade there is a lot of

murkiness whether that was disclosed properly. there is someone from aba, abc financial, the bond insurer who, she thought paulson was long. there is also some testimony, and it will come out there was some disclosure about, how it was disclosed. you know, who knows. it is kind of nebulous. this will be an interesting trial. i think, on a lot of levels. but, you know, the sec will have to answer this. no fuld, no jimmy cayne, i'm not saying they should be charged but you have fabulous fab. lori: record settlement in 2010, 550 million? >> they chose to settle. okay? that was the whole thing. no major financial institution that is heavily regulated is not going to settle. they didn't settle for fraud, by the way. lori: they're zeroing on the guy just because of his e-mail. he is midlevel executive. >> they do that. dennis: we spanked him, spanked him, finally, the meltdown has

been@to inned down. >> there are two people. angel mozillo got charged. >> from countrywide financial. >> and other than, far, ken lewis, was charged by the new york state attorney general. dennis: he was way too tan. bias against people with too much after tan. >> you say there is bias? dennis: good luck following that trial. >> fabrice tourre, sound italian. that is joke. lori: he is present french i believe. as we do every 15 minutes. jason weisberg on the floor of the new york stock exchange. jason, we have the dow up ever so lightly. what is on investors minds as we head through the week here? >> we'll focus on earnings. people like to talk about certain economic data points. beyond today's data points it is only earnings. for the balance of this week. if you're in the new york area avoiding some of the heat. lori: good luck. how is the ac on the floor, jason? >> it is great. lori: lucky guy. thank you, sir.

take care. >> fighting the fumes. i've been waiting for this all show, in san francisco. a stinky bacon smell. i don't think there is any such thing, pitting one san francisco restaurant against the entire neighborhood. lori: it is not very kosher. dennis: you will introduce them to the small business owner. lori: whose business is bacon and ready to bring it home again going there. ♪ every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor.

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lori: back in the frying pan. popular san francisco restaurant, bacon, bacon set to

reopen after it was shut down, get this, complaints of a strong bacon smell. the owner, and hundreds of bacon fans won in court when the thursday's planning commission decided restaurant can open at the haight-ashbury location with a just a few concessions. congratulationses to you. >> thanks for having me, lisa and thanks. lori: this case caught the nation's attention. it was spoofed on "saturday night live" though in your favor. now that you have the national platform, a national stage if you will, what is the message that you want to send across that could help other small businesses struggling with not the same but similar challenges? >> i think one thing that you mentioned, the whole neighborhood was upset. it really came down to a couple neighbors. i'm a part of my community. i'm part of the neighborhood we serve n there was so much support from the neighborhood that showed up in front of the hearing. i think it is be a part of your community. be in touch with your community

and also, you know, be aware of things you're good at and things you're not good at because the permitting process is quite complicated here. i think i may have needed help. dennis: i hope you franchise your bacon bacon restaurant and bring it to new york where we live here. neighborhood getting upset ate the smell of bacon, how much will that cloud plans to expand and open stores and other restaurants in other places? >> really the issue wasn't the smell. it is what got national attention. this is something their creative lawyers grabbed on to. these people have not been happy with any business in this commercial space. i've been there for a long time or other businesses have been at as well. you know, we're going to have some plans to expand. new york would be great. i'm from new york. my family's in manhattan and connecticut. so i would love to have something on the east coast. lori: that's awesome. so how much did you have to spend to install these air filtration systems to appease

the complainers and the city? and i guess to offsets that, how much extra money are you making now that you're this famous bacon business? >> well, you know, the, so on the application that got held up we have upgrades to the system and the filtration. it will be in the 20 to $25,000 range. but my business, and it is still shut down today at that location is going to, you know, approach $150,000 in lost sales, maybe more. a lot of fees associated with it. but, you know the attention we've gotten, it is hard to put a number on it at this point, but i think the irony is the people didn't want a busy restaurant across the street, now, there is all this exposure and, i am only going to imagine we'll be busier. it is hard to put a dollar amount on it but, i'm looking forward to reopening, that's for sure. lori: sure. dennis: how bad or how strong was this bacon smell?

do you have to live in a vegetarian vegan neighborhood? was it offensive because of that? i think few things smell bert than frying bacon. >> the smell is, everyone has a memory or they associate good things when they smell bacon. i think really, like i said earlier, it wasn't as much about the smell. i think, if, you know, it's just, i think that is what everyone wants to talk about. the strong bacon smell is prevalent. no, so yeah, we're going to improve the ventilation system. like i said, those were my plans all along. they would have been installed if this thing didn't get hung up by the planning department and their lawyers. frankly we probably wouldn't be talking about if they didn't fight my permit. we cook a lot of bacon. lori: we have to run for baking news. jim anglelous for bacon bacon. >> thank you. dennis: check out shares of honeywell. the company is invited to

participate in the 787 investigation. the dow jones sources saying the investigators are looking into the transmitter as a possible source of the fire on that ethiopian airways flight at london's heathrow airport. honeywell makes the transmitter. >> not the battery as many were concerned about when the news broke. dennis: not the old one. it's a new one. great. lori: boeing, and airbus, that is it for your airplane manufacturers. that is a good market to have. coming up, turning water into cold hard cash. demand rising along with supply concerns, tracy byrnes and ashley webster are looking for ways to play the water trade through the next hour here on fox business. stay with us. [ indistinct shouting ] ♪ [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪

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>> bacon, bacon, the restaurant is so nice, they named it twice. there is a bacon revolution going on in this nation. this week i was in the store and

saw a bacon candy necklace. >> you have got to be kidding me. i wanted to ask him what the most popular menu item is featuring bacon? grilled cheese? >> deep-fried bacon, done in flour. oh. >> yankee candle make a bacon scented candle. you're right, it is a bacon explosion. >> remember, heard it hear first. >> tracy and ashley? ashley: bacon explosion that is your arteries. tracy: i don't even know where to go with that. ashley: thank you, lori. thank you, dennis. i love the smell of bacon. tracy: i guess. ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. stocks are pushing hightory new records. the dow is up 24 points, closing in on 15,500. it is headed for its 26th record close of the year. ashley: is that all? one cautious size for investors, americans cutting back on spending in a surprisingly poor retail sales report. we'll ask one analyst what it

means for that, oh so critical back-to-school season. that is straight ahead. tracy: what covers more than 70% of the planet but believe it or not some say surging demand and supply problems could turn it one day into the new liquid gold. is there money to be made in the water trade? we have a water investor that will share insights. everyone knows i'm slightly impressed with that. ashley: who was that water skiing? that was impressive. time for stocks. let's go to nicole petallides on the floor of the new york stock exchange. nicole, another day, ho hum, another record. >> you start with bacon, and i'm you show water skiers, because i'm a slalom water skier. i love that. approaching and getting closer to the all-time record for intraday highs. for it to close, each closing high is a new record all-time close for the s&p and dow.

so we have obviously seen three great gains. @ast week was a stellar one indeed. and many of the names we're watching in the drug index and banking index have up arrows. market brett, this is not one of those days where they're buying everything. it has been mixed but you're seeing a lean to the upside. we should note that citigroup came out with their numbers and we're seeing shares rise for citigroup. michael corbett, took over from vikram pandit, he is working on cutting costs and improving earnings and people paying back on the mortgages so that is better. the stock is up almost 2%. we had other economic news that was favorable. so the other thing we should note last but not least which is the 10-year bond, which is behaving. as a result that gives us the opportunity for investors as well. ashley: behaving, we like that. nicole, thank you very much. tracy: all right. well our next guest says market volatility will stick around

actually overstaying its welcome like a bad houseguest. that is why i don't have a guest room. i don't have houseguests. ashley: great idea. tracy: brian jacobsen is chief portfolio strategist as wells fargo management. seems like volatility has been the new black for a long time. it has been very volatile, right? isn't it kind after win-win, short-term guys trade on it and make money and long-term investors like us have to shut our eyes and wait it out, eventually this market will keep going up? >> volatility is pretty normal. if you look at some of the historical record, if you put things into percentage changes as opposed to absolute number change in the up today sees, volatility is actually fairly low. take a look the vix, how far low that is. last time i looked it is slightly under 14. it should be closer to 16. even though it feels really volatile out there it is not all that bad. ashley: brian looking a the

economic data we had tepid economic numb b looks like the economy could be sputtering along in the second half. that is okay, right? we have the fed and the fed always has our back so should that have much impact on the markets? >> as long as the economy continues to sputter along and doesn't run out of gas we'll do okay with he can commit markets. my concern would be all of sudden saw a dramatic downturn in the economy. most of the economic data is pointing to an economy just continuing to trudge along very slowly but it's not rolling over yet. as long as the fed will stay highly accommodative which is what ben bernanke says the fed is going to do, i think that serves as a favorable backdrop for equity investors. tracy: but do we need earnings season to continue to propel forward? we've gotten great numbers out of the banks. if we hear more disappointing news from like ups, more bad guidance going forward does that

derail this whole thing? >> yes, i think it does. i think you're spot on with that. the key thing is look at is the earnings per share and more importantly the guidance companies are giving. remember when you're investing in equities or fixed income, you're investing in the companies. you're not investing in the overall economy. that is how we could have a divergence where earnings are at record levels but still have high unemployment rate. pay attention to earnings. as long as guidance from the businesses are getting or staying positive i think that will be a very good indicator for equity investors saying you can still stay with this market despite hitting new all-time highs. ashley: so from a valuation standpoint, brian, what sectors do you like and why? >> yeah, my favorite two areas would be information technology and industrials. i think that there's actually a lot of pessimism still priced into those areas. if you think about industrials that is typically tied to the overall economy. it is more what we would call a

cyclical area where it's tied to the overall growth rate of the economy as opposed to some of them like financials which is more driven by interest rates but from a valuation perspective it is actually a reasonable area to look for more opportunities and more and more of the businesses in that space are diversifying their lines of businesses to get more global exposure. and then information technology, let's face it, it is still rather expensive even though wages are not rising, still expensive to hire workers, why not replace them with technology? that is what is happening. that ultimately will accrue to the bottom line of a lot of information technology companies. tracy: what is interesting, brian, both those sectors have been somewhat predicted to disappoint earnings going forward. materials and tech, right? not supposed to be up to par. so, i don't know if that is going to derail the run but you're saying right now you've got some value plays ahead of us? >> exactly. so that is what i would be looking at. there are areas where i think you could find growth but at a very reasonable price. i wouldn't be looking at

materials. more the industrials. so the businesses that are converting the materials into outputs, that is what i really like from a valuation perspective. but i think everybody is so pessimistic about the outlook for growth, as long as we don't roll over into recession they should hang in there and maybe surprise to the upside. tracy: i tell you, that bar is so darn low. all you have to do is not roll over and die. brian jacobsen, wells fargo portfolio manager. ashley: wall street is listening closely as one federal reserve governor talked a taper and glass-steagall today. rich edson has details from washington. rich? >> when he says glass-steagall and possible reduction, daniel turullo, noted that the most significant firms during the financial crisis, lehman brothers and bear stearns didn't really have large commercial banks. so turullo is concerned large financial institutions may lose

the capacity to provide certain types of funding with a glass-steagall return. he also ways in on the possible tapering of the fed's bond buying program, even when it begins, the fed will still providing massive support to the financial system. >> no one is talking about unwinding or selling the securities that we've been buying. and that is also, remember, data or, data driven, depending on the economy. as we see the economy develop, then we'll make our judgment. we're not specifying, no matter what happens on this particular date we're going to have a change in the flows. so that's one thing. it will still be a very accommodating policy. >> tour rule low is a vocal supporter of higher capital standard as well. he says phasing them in will give banks ample time to adjust to them. banks say stringent capital

requirements will constrain their ability to lend. back to you. ashley: rich, thank you very much. just a note. tomorrow do not mix a fox business interview with an outspoken dissenter of fed policy, esther george talks with senior washington correspondent peter barnes tomorrow 11:00 a.m. eastern time. it should be a very interesting conversation right here on fox business. tracy: all right. coming up, are you thirsty for the next hot commodity? some investors are actually betting on water. we'll take a look how you can get in on the old water trade. ashley: plus it's been called the biggest disability scam to date. taxpayers shelling out a billion dollars for allegedly false claims. you will not believe this. elizabeth macdonald all over this story. time to check how oil is trading right now, moving on up again, just a little though, $106.14 a barrel. we'll be right back. my mantra?

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increased d blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm lot treatment, axiron. >> fbi says 33 people have now been charged in what is being called the biggest government retiree scam ever, costing taxpayers an estimated, wait for it, one billion dollars and

counting. what the neck heck is going on? lizzie mcdonald, is here. what is going on? ashley: long island rail worker, 25 pleaded guilty. one billion bucks and counting. more startling, 3/4 of the workers between 1995 and 2011, stopped working to get disability. 75%. this is according to the fbi. retire at age 50 you get a fraction of your annual salary as a long island railroad worker. to supplement that people were filing for disability. so the fbi and law enforcement went in and started videoing workers basically saying, they already said, listen we have repetitive motion injuries, next and shoulder and wrist problems. they caught them on camera, snowboarding, skiing, doing 400-mile bike tours, shoveling snow, playing tennis. once that happened they found that doctors were involved in on the scam. two have already pleaded guilty. two doctors, allegedly getting

kickbacks there. they were getting six figure salaries, $100,000 plus with getting early retirement and disability. what we're hearing 600 people have gotten their disability cut of that scam. so, law enforcement is telling fox business, the numbers that we're seeing right now, 33, that could possibly triple. more people could get arrested. so this is continuing to rack up. ashley: how long had this been going on? >> well apparently more than a decade. that's the fear. so, here's the fiction though. they raised retirement age to 55. so instead of 50. but the thing is -- ashley: like greece. >> exactly. tracy: i'm dumfounded. why don't we work for the lar? this is ridiculous. why doesn't everybody for that matter? >> what is interesting the government accountability office said the long island railroad worker 12 times the rate of filing disability than other

workers in the country. ashley: that is a flag. fixing e trains. not the guy that clips the ticket with a hole puncher and on wrist damage. >> all of them across the board. tracy: honestly, honestly? >> biggest disability scam ever. we're watching this one. ashley: videotape and doing all this very hard to deny look act tape. >> shoveling snow, playing 10 miss -- tennis. skiing. >> i use a hold puncher on my kids projects my wrist hurts after a while. >> are you filing disability? tracy: i may. thanks, emac. ashley: coming up to a quarter past the hour. nicole petallides on the floor of the nyse. you're following the latest on boeing. >> obviously they continue their investigation as to the fire and what happened at heathrow airport. the stock is up 3 1/2%. one of the reasons we're seeing boeing doing so well today because the findings thus far that it is not the lithium-ion

battery and that watts number one problem of the dreamliner. so just ruling that out alone is, a time of celebration for the shareholders here. they see the stock is up 3.5% at 105.50. obviously they're continuing their investigation. now as the plot thickens here honeywell is being brought in and they have confirmed, honeywell the company, is too participating in the u.k. investigation into the fire on the 787 operated by ethiopian airlines and the fire on the tarmac at heathrow airport and now they have a part that was a locator transmitter. it was built by honeywell and maybe, a possible a cause of the fire. a emergency locator transmitter. so they are looking into that as well. we see honeywell down slightly today. not a big move but certainly worth watching. back to you. ashley: not the battery, thank goodness, they don't think. nicole, we'll be back with you in 15 minutes. tracy: on deck, retail warning

sign. american shoppers spent a lot less than expected last month. i think we've been saying this, ashley. ashley: we have. we have. tracy: the guy is not out there shopping, the consumer is not there. raising new questions how strong the economy is bouncing back. we'll look for some answers next. ashley: first let's look how the u.s. dollar is moving on this monday. as you can see, the dollar, well mostly stronger against all the currencies. only the mexican peso moving higher. u.k. pound back around 1.50. we'll be right back. the boys used double miles from their capital one venture card

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>> at 20 minutes past the hour i'm lauren green with your fox news minute. president obama is welcoming former president george h.w. bush and former first lady barbara bush to the white house. they are recognizing the 5,000 points of light reward recipients. president bush created the program in 1989 to honor volunteer service. attorney general eric holder shares concerns about a quote, tragic, unnecessary shooting death of trayvon martin and that the justice department is continuing a probe into possible civil rights violations. despite saturday's not guilty verdict, george zimmerman could face a civil suit from trayvon martin's family. national security agency leaker edward snowden reportedly

has thousands of sensitive documents describing how the nsa operates. glen greenwald, "the guardian" journalist who broke the snowed o.w.n. story, said snowden chose not to disclose the most damaging information he has against the united states. those are the headlines. i'm lauren green. back to ashley. ashley: lauren, thank you very much. appreciate that. retail sales rose by a disappointing .4% in june from the previous month that is half of the gains economists were looking for, auto sales, consumer spending essentially unchanged. up just a tiny bit. here to break down numbers, we have a retail analyst at at chelsea advisory group. joe, thank you for being here. as you've gone through the numbers you're not quite as pessimistic as the headline number suggests? >> that's right. if you look at core retail numbers year-over-year was up .9%. that is fairly solid when you factor in very low inflation. we're seeing spending in base being goods, we're seeing basic

consumables stay items but the trend is not so bad. definitely a little disappointing from what was expected but not awful. ashley: you mentioned the building materials, you felt certainly that had an impact this time around? >> absolutely. we saw week data there with building materials. when you look at the weather throughout the country, there was weak weather, challenging weather in the southeast for example. hard to get out there to do projects. >> raining non-stop. >> it was raining non-stop. so that was tough. ashley: what about the psyche of the consumer? how do you look at the numbers to get a sense where the consumer is at? >> we look broadly the stock market is up nicely, home prices are up. people have jobs. we like to see more jobs growth but still there are jobs. consumer is not so bad now. the lower income consumer is we're seeing more pressure but middle to upper -- >> still very cautious, aren't they? >> mostly basic spending. last week costco reported

monthly sales. 5% traffic into the store. ashley: terrific. >> very strong numbers. again people going and buying basic every day goods that they need. ashley: the department stores, how are they faring? >> department stores are weak. they continue to be week. 5% down year-over-year. the results don't seem to be all that special. see big discounts to the store. not to say they're overmerchandised but we're seeing discounts to clear. ashley: this all leads into the all-important back-to-school season. how is that shaping up? >> we're not seeing heavy ordering back to school. retailers are being conservative with the orders they place. it will probably come closer to actual needs. august, september we'll see more of the sales. but it should be a little more full-priced selling at that point. ashley: can you, as you look towards the end of the year, do you expect more of the same with regard to retail sales? >> yeah, we're looking at the

moment, below singles, 3%, 4% type holiday season from a same-store sales type basis in aggregate. not too bad. it is a tighter season this year. there are 26 days versus 32 between thanksgiving and christmas. ashley: how much is increase in hiring? we've seen nearly 200,000 jobs added over the past three months. is that a benefit to the retail sector? >> absolutely. we're seeing the confidence in people having jobs or feeling they're secure in their job, you do see the spending. we've seen that over the past year or so as the job numbers have been increasing. so it's been good for the consumer. better. ashley: i feel better about it right now. joe feldman, thanks for joining us. >> thank you. >> appreciate it. thank you. it's all good. tracy: all good but not off to the races by any stretch. ashley: it pretty much reflect what is is going on with economy as a whole, isn't it? slow but steady. tracy: i guess, i guess. ashley: glass half-full. tracy: i'll take it. talk about health care reform.

that is so glass half empty. it was supposed to help lower prices and streamline the system but annual costs keep moving higher. the whole health care system is proving to be way more complicated than anybody can navigate. thankfully gerri willis is here with a consumer's guide to help people deal with their insurance companies. this is kickoff of the week, right? >> this is the kickoff of the week. we're starting with insurers and i'll tell you why. obamacare is coming into play. we'll tell you what that means. behind closed doors what you can't see when you go to the physician's office, lots of changes. physicians and insurers are doing battle. health care providers struggling to get reimbursement from insurers. insurers trying to pay as little as possible to keep the bottom lines intact. big fight over coding this is a byzantine, totally complicated methodology for reimbursing providers. thousands and thousands of codes. doctors pay for newsletters, for counseling, for books on this,

it is so complicated. make as difference between your being reimbursed 100% or not. so that is a very big deal. ashley: a system obviously so complicated, that those that are supposed to be operating can't figure it out. likelihood of mistakes is very, very high. >> likelihood of mistakes is very, very high. as a consumer what do you do? tracy: what do you do? >> a, number one, gerri, you're crazy, read the policy, changes are going on all the time. obamacare is making for more changes. the companies are trying to get in line before everything, you know what, hits the fan. big changes there. some stuff is being grandfathered in. some is not. devil is in the details. you definitely need to know. now your helpmates in all of this you will be shocked to find if you have coverage from your employer is the human resources department. they are on your side in this battle. they want you to be reimbursed too. they want to be reimbursed. sometimes they hire a health care advocate will actually get

on the telephone, make the phones calls to make sure that mistake, that mistake is remedied or fixed. another world about deductibles here. i think a lot of people think, my deductible went up. it is not that high. i meet that with a couple doctors visits. now they are medicare plus 10% what they're crediting to your account. so, it may cost you 250 bucks to see your doctor. but at the end of the day you're not getting credit for that $250. only a works of it. not just deductibles forgoing to the doctor's office. deductibles for your drugs. deductibles forgoing to the hospital. this really adds up and adds more you have to pay out-of-pocket. so bottom line you absolutely need to know what you're on the hook for by understanding what's in your policy by talking to hr. if you run up against a problem, a lot of mistakes out there to get mixed. ashley: shouldn't this be that complicated?

tracy: this is the screws the small business guy. he doesn't have the extra money to hire the health insurance advocate. >> you can do it yourself. you will pay for it as much a third of the cost they will get back for you they will take. tracy: there are services on the web trying to offer health care insurance. >> we have one in this building as a matter of fact. we have access to a health care advocate. not something that is free for people who don't have employer paying the tab. tracy: little guy again gets it. don't miss all this. "the willis report" 6:00 and nine p.m. eastern. gerri will talk about all think, take notes. tracy: gives me a headache. ashley: the co-pay for that. on deck, the trade on water surging population growth putting a strain on this vast natural resource in many parts of the world. an investor says there are many ways to make money on water. he is here next. tracy: let's take a look at winners and losers on the s&p 500 as we go to break.

the dow is is 32. we'll be right back.

♪ tracy: 90 minutes until the close. boeing leading the dow, and although there is a lot of red on the screen, the dow is three points from that -- actually seven points now from 15500, your all-time intraday high, on track, of course, for your third record close, 26 of the year. nicole petallides and the floor of the new york stock exchange. they have to be happy about this town there. >> reporter: you like what you see. three straight weeks of gains. the dow jones industrials topping that level trying to break through 15,500.

our all-time intraday 15,542, not too far away. we have seen some banks to well on the heels of one real winner up about 2% at the moment, but i also want to take a look at a luxury retailer that has done so well and been a leader in the s&p 500, tiffany up 40% bit -- 4%. that is a big gainer, lifting the rating from up hold to a buy. trading and 80. we continue to see this same forecast for north america, same-store sales on the rise. there liking for the america's overall. there have been a few rough months, but they still think also that the last will be precious metal prices coming down which would help tip these barges ultimately as well. tracy: thank you, nicole. that never goes out of style. [laughter] ashley: breaking news.

oil extending last week's gains closing up $0.37 at $130. the second straight session -- $106.302. this may be. price futures group in the pits of the cme. i saw this week economic data actually weighing on crude prices. >> reporter: wanting to close higher until the very end of the session, but it needed higher, partly because if you look at what is going on in the middle east, we are seeing about egypt, that's heating up, talk about arrests. that has been an upward pressure, but the other thing that is psychologically given this market a boost, talk out of the opec cartel that they would start taking oral off of the market in the month of december. as you know, that is the kind of year when the man starts to rev up. that give the market a little bit of a boost as well. natural gas, talk about the

comeback kid. everybody had written off natural gas shifting weather forecast. last week it thought it would be hot. then we year will cool down. at the end of the day that market was down big. we hit 354, the lowest level we have seen probably in two weeks. we reversed and closed higher end of the market is at 36730. part of that may be what you are experienced in new york. that cash market right now is getting squeezed. a 70% premium. give the rest of the market a boost as well. ashley: great info, as always. thank you so much. tracy: many people don't even consider investing in water because it is one of the most common commodities, but believe it or not, the world's growing population and food demand may lead to a scarcity of it. as shortages built there is money to be made in what some are calling the new liquid gold. joining us now, founder of

watertight capital. thank you for being with us. i am kind of really hot on this. we have all water shortage, don't we? >> yes, we do. the reality is we do have water shortages. but from there it is very complicated. on a planetary scale water can be considered ubiquitous. we have the same amount of water that we have billions of years ago. when you look at water as a resource, it gets murky. for example, surface water is a punishable while ground water is deployable. depends upon that type of water resources the looking at. tracy: with the growing food demands people need water to drink in undeveloped countries so that while there may be it is ubiquitous, the demand for it in all different places and sources of his growing. >> that's right. the over appropriation of our easily accessible surface water that is causing the problem for a variety of different.

tracy: do you think we will get to a point where there will be a scarcity? >> there is certainly spatial and temporal scarcities now. the challenges we have to find better mechanisms to reuse water , recycle water, six alternative supplies and do more along the lines of water resources and abilities so that we don't end up in a more dramatic scarce situation. tracy: that is what it is all about. we have global leaders talking about this. it is all kind of about our infrastructure, and isn't it? to your point, getting water, cleaning it, sanitizing it, and getting it out is our big problem. >> absolutely. we have an enormous water infrastructure spending gap. we have not sent the resources necessary to keep that in as state of condition that will, you know, meet demands going forward, whether it be agricultural, and drinking water, commercial. tracy: the big question is how do i make money off of this?

clearly there is somebody up there doing a lot of work. is it the companies that are purifying the water or is it more of the infrastructure? >> it really is a multifaceted problem. and that does prove difficult in translating the fundamentals down to an actionable and business strategy, but i focus on several key areas, one is treatment technologies. as you mentioned, that is not going to go away. we need to find new and innovative treatment technologies to meet the different demands that are placed upon it. infrastructure is a big area that i think we need to look at less capitol intensive infrastructure as well, i.e. the analogy of this market and the energy side. tracy: actually, you picked a few stocks for us. if i'm seeing that correctly, ex-wife ago. that is an infrastructure story, isn't it? >> well, it's more of a diversified water company. is the spinoff of itt water business, and there will persist -- will position to.

they could almost be viewed as somewhat of a proxy. tracy: it desalts the water and clean it up. want to talk about this guggenheim snb global water index. many people don't realize that there is an s&p water index and the fund basically keeps track of it. >> that's right. the etf tracks the underlying s&p index, and so basically it is going to -- performance is going to depend upon the ability of the underlying index to sufficiently track exposure to low water industry. tracy: it has actually almost tracked our real s&p 500. water is doing very well, would you buy this? >> at this point as i mentioned the does track closely. the industrials. there is some correlation.

i prefer to have a combination of a core group of water stocks supplemented with a water etf such as guggenheim. tracy: a teefor entertaining me and my obsession. what -- comebacks in. >> thank you. ashley: the things you'll notice when you don't have it. very interesting information. airlines are calling it absurd. they want them to pay billions for rebuilding. judge in napolitano shares his take on the lawsuit coming up next. tracy: first, it's time to check your tin and 30 year treasury. butane is down, and yet 30 years down -- unchanged. i'm sorry. we will be right back.ateam. ♪ but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.

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so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. ♪ >> reporter: here is your fox business brief. jury selection begins in new york. facing charges that he knowingly sold the head of the financial crisis. make the case as simple as possible and avoid industry lingo. travelers feeling the pain at the pump. that's a 6-cent jump since

friday. delaying retirement may help present to five prevent alzheimer's disease or other types of dementia. each additional year is worth the risk of getting dementia. as the very latest from the fox business network, giving you the power to prosper. ♪

♪ ashley: nearly 12 years after is september 11th attacks a new trial will decide whether airlines would have said they the owners of the world trade center's billions in damages. the owner sued the airline, boeing, and multiple other aviation defendants in accusing him of being negligent in the impacts. joining us now, fox news legal judicial analyst. what is your take, and judge napolitano?

>> it is enormously complicated, but remember, the people that are suing did not know the world trade center. they have leasehold rights to the world trade center, long-term leases. when they acquire them? july 16th 2001, just two months, two months before the catastrophe of september 11th. so they have already collected just shy of 5 billion on their loss of the right to collect rent because the building was destroyed. they're seeking as much as 25 1/3 billion more. the building was only valued at 7 billion, so the airlines are saying right off the bat, you guys are trying to get more from us than you would have gotten from the tenants who were in year. tracy: what it's taken so long? >> the ownership of the building, the real estate, and who has the right to collect money when the building is destroyed is enormously complicated. of giie it to you in at 30-2 of urgent -- version.

that building consists of private and city property which eventually was condemned by the port authority when they built the world trade center, but that did not condemn all of it, and the city did not take property what it said it would take title to and did not invest a self. stated differently its 16 acres. the port authority, some of which is still on by the city, all of which was leased out, some of which was reimbursed. tracy: does not come down to a liability on the airline is liable? >> is the port authority itself liable for not having enough insurance to cover all of its own damages? not how much but who is liable. once you decide to go be a

second trial to decide u.s. to pay how much. >> my guess is was this federal judge, truly are hard working guy decides to was liable, the carriers and the airlines will pay just to get it over with. of think that decision will be appealed. it will be resolved amicably -- amicably. tracy: sigell argue we cannot say, you are liable, and the? >> is, he could. there are some insurance companies that are both plaintiffs and defendants. they enjoy some of the airlines. it is too complicated surgery. requires a jurist to resolve this. he said i will give you an answer the last day of the trial. that could be six months. tracy: this guy, this is really

super complicated. >> it is. meantime, the freedom tower, can't tell you. probably the port authority. ashley: judge napolitano, as always, appreciate it. does that public know -- shine the camera on the speed of all students. look at this. there they are. passionate. turn the lights on. [laughter] there you go. now we can see. tracy: i will be watching. we have some breaking news. the dow jones industrial average just hitting 16,500, a new intra-day record. ashley: stay tuned and there will be another one. tracy: i was going to say, give us five minutes and we will break again. the floor of the nyse-listed. we keep putting all of these

records. is it because of burning season really off to a good start or is it truly just knowing that we got that money pumping in the background? >> i think it is a little bit above. the market has really been impressive, are very resilient. it's kind of shards of the geopolitical headlines that historical would rock the markets in a downward spiral. the fed threat or imminent threat, telegraphing it. and as long as earnings keep, positive, no reason why the market can go up. most companies today and certainly the economy, better footing. yet the love it here. tracy: bagel hugs and kisses to

the market. thank you very much. ashley: coming up, her addicted. now a tennessee man is suing the tech giant and you won't believe this story. its next. tracy: first, as you digest -- judge that -- it digest that craziness, let's take a look at some of the day's winners and losers . up just under 5%. we will be right back. ♪

♪ tracy: hollywood website that rap is calling the dead zone film i9 figure budget flopping at the box office. dennis kneele, that is a lot.

>> reporter: a lot going for it. the summer of the blockbuster. one of 20 big releases that each cost over hundred million to make, lavish special effects and monsters fighting with giant transformer-style robots. but pacific rim managing to finish third place in the u.s. box office bring in 38 million. it cost 180 million to make. marketing push that up past the 200 million. pacific rim getting bested by the foul mouth gross guy, the grownups to from sony would run and 42 and half million. comcast universal animated sequel despicable be finishing number one for the second week in a row. so where does that put us in the dead zone? so far the big summer fox have been after earth starring will smith and the after signed. white house down failing to catch on with yours.

bring in only 63 million the biggest summer fun of the mall. to 50. and for hollywood executives, that brought them 190 million. the executives, they have inspired that one word. >> make it a sequel. tracy: is a summer all about the sequel? ashley: 20 films with a 9-foot-figure budgets, six more than last year. the summer box office guys up 13 percent over your go. it is working. you have some big losers in there. ashley: you're going to like this next tory. apple may find itself in the quarter magindanao for the usual reasons. it born addicted lawyer from

tennessee -- this the start of the a joke, isn't it? -- letting him access internet porn. the complaint runs 50 pages and is filled with misspellings and inaccuracies. not surprisingly, we have not heard back from apple for comment. there you go. tracy: it accidentally took him to pornography. and in the lawsuit it says, apple should see this as a warning for future class-action lawsuits. be very afraid. >> a wonder what lawyer would take on this case. tracy: someone who wants the watch a lot of pornography all the elantra research. >> apple does not settle. tracy: fm or a flop? the man who symbolize the financial crisis. his testimony could bring back painful memories.

charlie gasparino has all of the behind-the-scenes details. next with liz claman. don't go anywhere. who 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 business solutions from at&t have the security you need to get you there.

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