highs. bob schiller will tell you if this can't continue. the war on poverty in the u.s. what is the answer? we debate. the fabulous fab. our very own elizabeth macdonald tracks is down. the tiffany network is at war with time warner. what does that mean for about 3 million time warner customers coast to coast? all of that and more on this hour of "markets now." ♪ dennis: a lot of housing market

talk. i also want to point out this poverty discussion. charles payne, some very strong thoughts. he will be along on that. before we get to bob schiller, let's go to the impact of his report today. nicole petallides starts us off at the new york stock exchange. nicole: good morning. we got those home prices in. the markets have been holding some of the aeros. it accounts for about one tenth of 1%. the tech heavy nasdaq the best of the bunch. we certainly have gotten in a lot of earnings this week. we continue to watch what comes from the fed. the home price numbers, that increased by the most since 2008. that is good news if you are selling a home.

also getting some confidence numbers that are still above the 80 mark. that is good as well. back to you. dagen: thank you, nicole. a 12.2% increase in home prices from the previous year. that is in the 20 major cities tracked by the index. the biggest annual gain since march 2006. we care about bob schiller. bob, good to see you. can this kind of trend continue, particularly with records in dallas and denver right now? >> i would not make too much of the dallas, denver records.

the city's apple a lot in the past are bubbling again. phoenix, vegas, these are the cities that are booming. dagen: it you are saying if they are booming and they both bubbly, these price increases will ease. >> well, i think, it is hard to say. the market is changing. they changed the whole land scape. i think it may be less predictable than it was in the past. with this amount of upward momentum, it will probably keep going up for the next year or so at least. there will be a downturn eventually, but we probably have a while to go. dagen: to that point with a number of investors that are in the market and hedge funds out there buying, are those

investors are likely to hold on? will they continue to step up even as interest rates go up? >> i think hedge funds are more reliable. i think that what has happened is people have learned that there is a lot of momentum in home prices. hedge funds are kind of trouble. this is like a no-brainer to them. they learn about momentum in the stock market. the housing market looks like a great hope for them. i think that they are probably right this time. they will make money, if they get out soon enough. dagen: on that note, our people

now reading these stories, seeing these price increases and now getting off the sidelines? they feel that desperation and that need to buy. >> the other thing that is a big factor giving that desperate feeling is that mortgage rates are going up desperately. they are still low, but people are really worried. they have gone up over a percentage point. some people might say i missed it. i am too late. i think most people are thinking it may go up a lot further. dagen: in terms of homes countrt an 18 year low card to the point of affordability, could you have investors in hedge funds being a large driver in these increases? are you bothered by these two

things? if home prices go up, those very hedge funds investors squeeze out the little guy. >> everything is changing. a lot of people are choosing to rent now rather than by. they may be right. i think we have overemphasized home ownership. it is a good thing for people in the right age range that want to settle down. these people have changed their minds, maybe permanently. we will see a lower homeownership rate. if you want to invest in real estate, rental apartment buildings may be a better prospect right now. dagen: we always find out something. we appreciate it. be well. next time i hope to see you in person. >> thank you. connell: we do have some breaking news.

this is from a new york appeals court. mayor bloomberg trying to impose the ban on large sugary drinks. the court struck it down. in the meantime, president obama said to address the economy later this afternoon and address his proposal on a cut of corporate tax rates. rich: one new proposal that the president has is a one-time shot to tax overseas earnings a long with changes to depreciation. take a look here at some of the specifics of the white house just released. top corporate tax rate of 28%.

increase minimum wage. that goes to nine dollars in the state of the union address. 7.9 oh yen dollars in clean energy spending. infrastructure spending. one of the proposals is just to corporate tax reform. republicans say if you are going to do that, you have to do individual tax reform because so many small businesses file as individuals. the president has always supported corporate tax reform. republicans want to help families and small businesses also. this allows a president obama to support president obama's position on taxes and spending while leaving small businesses and american families behind.

we have not gotten any specifics. we do not know how much he is looking to spend. some of the overseas corporate tax changes call for about $157 billion in revenue increases over the next ten years. connell: rich, thank you. we will move back out to a very important topic backup the attention of our very own charles payne on yesterday's show. four out of five u.s. adults will struggle with poverty. four out of five. charles is back with us and had some very strong thoughts on this topic. we also invited a fox news contributor. thank you both for coming on.

this topic deserves more discussion. here we go. charles: we talk about poverty a lot. this was an sos for white america. usually it is the elephant in the room, the blacks, hispanics, the young, bold. it really takes us back to 1980s when the country was really helpless to the point where jimmy carter said it was malaise. this is a real unfortunate place for this nation. connell: they are talking about race disparities in the poverty rate have narrowed this

substantially. what about affirmative action? >> i think i disagree a little bit with charles that we do not talk about poverty enough. the times that we do talk about it, it is, as you said, so focused on minority communities in a way that is preferred it to the bigger picture. now, we are also seeing at the same time from a solution standpoint, as these numbers are increasing, we have programs being cut that dramatically affected people in this country that are facing poverty. we have kids being cut from headstart programs so their families cannot go out and find

jobs. you have sequestration that will have a dramatic increase on the poverty rate. on the right, many republicans are saying that deficit reduction is an economic plan. austerity is not the economic plan to get these numbers in check. charles: 17% of white children live in poverty. higher minimum wage does not change that. free housing does not take you out of poverty. it makes poverty more comparable. what we are talking about is how to re- energizes country. the president would love to just

crush the top. the people down here, their lives have not changed. this is the proof of that. >> we have not been closing that gap. the rich are getting richer and the poor are getting poorer. the policies focus specific weight on this. it has not been increased since 2007. charles: minimum. >> the american dream has been pulled. this latter has been pulled. charles: it is america's responsibility. >> victimizing the poor will not help. poverty is absolutely not comfortable.

charles: they are comfortable enough, guess what, when they get a security job, they are comfortable enough that they keep having kids your teenage kids should be working at a minimum wage job. it is a stepping stone. it is not for the head of the family. the minimum wage increase would help all of those wages increase for all of those folks. you cannot deny it has a genetic impact on the wages of other middle-class americans. connell: you will not solve or get through everything in one day. we thank you both for

participating. charles is smiling. that is the way we'd like to end it. you said you wanted to talk about it. charles: i said this particular point. connell: yes. charles: i do think that white america is giving up. it is scary and people should talk about it. connell: thank you very much. dagen: and upcoming twitter ipo. it comes from something that was posted on linked in. financial charges against husband and wife * joe and teresa. ♪ the boys used double miles from their capital one venture card

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connell: we are back now on market now.

what about twitter? a report that they could be a step closer to filing for an ipo. the company posted a job description for financial reporting manager. responsible for preparation of monthly reporting materials. why do you need that kind of worker? [laughter] dagen: at your public filing. connell: they said in the past that they had no plan to go public. somebody is thinking about it if you are posting that kind of a job. dagen: i know that the venture capitalists have to cash out. after what happened with

facebook and the disastrous public offering, the stock is still trading below the offering price. why would you want to go public? connell: it was right during the show. there was so much hype and then -- it is almost back. it is almost back to that magic price. maybe it will be a happier story for twitter. dagen: is it back at $38? nicole: it is not at $38. it is getting closer. this is a stock that drop down to 1755 last september. everyone that bought into the facebook who plot and endured that disastrous ipo last may has been disappointed. look at it now. great earnings report.

today there was news that they are going into publishing games. over 1 billion users. they will be putting those games out there. if they go viral, that could be a brand-new revenue stream. connell: cofounder of the agency is here in the studio. we will talk to him about the housing market and the latest numbers that are out. dagen: elizabeth macdonald on the run. connell: there she is. ♪ in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than youxpected.

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>> 25 minutes >> 25 minutes past the hour, this is your fox news minute. eight people injured in florida, four critically after explosions rocked the propane tank last night. more than 53,000, 20 pound protan tanks.

and they are giving 7,000 classified documents, and there has to be aiding the enemy. if convicts, there could be life in prison. a 58-year-old woman was defacing property after green paint was found inside washington's national cathedral. they are investigating if there's a connection to similar vandalisms at the lincoln memorial and smithsonian. those are the headlines, back to dagen and connell. >> a fox business alert, security fraud trial, tourre's trial wrapping up, third week, closing statements begin this morning. >> here's liz live at the courthouse in lower manhattan who actually physically caught up with mr. tourre this morning. what's the latest? >> yes, physically is right.

take a listen. >> you feeling confident today? how you feeling today? feeling good? >> great, thank you. >> he also spoke with me in the courthouse moments ago saying he is feeling good. i asked what he thought of the fcc's case, and he said we'll see about that, but right now, we got out of the closing arguments of the fcc case, and the lawyer is giving it to tourre saying essentially he set up a world of lies, trickery, and deceit, a world of conflicts of interest, and he's living in the land of make believe when he did not tell investors in the deal where investors lost a billion where the hedge fund billionaire was sticking the assets and shorting the deal, so he was accused by the fcc of writing the flip book, the deal document that also did not

disclose and we've got more breaking news. the fcc lawyer is saying that he lied on the witness stand when he said there's mistakes made. i was inaccurate, in subscribing the role as bearish, that is inconceivable, and they were in on the deal, and more breaking news. the fcc lawyer is also undercutting that its own witness, and they said he, too, misled the jurors so this is a developing story throughout the day. the fcc's called 11 witnesses. the lawyer, the fcc lawyer says it undercuts the closing arguments. back to you. >> good hustle with this. covering the trial in lower manhattan. >> hustle, we love it.

the star realtor with the agency in los angeles is here with us in studio to take, give you his take on the housing market there, here, and maybe everywhere. >> you said at the end of the interview, there's always something to talk to, l.a. times says the head of cbs believes the network is at war, at war with time warner. more on that coming up. ♪

>> at the half hour, here's what we have coming up. the star realtor from the agency and a good friend of the show is here in person today in the studio talking about higher home prices that bob schiller was on earlier, and that ma means for the luxury real estate mark. don't miss that. there's a correlation of higher

gas prices and sentiments number, and there's head of cbs says the network is at war with time warner. story on that ahead. >> first, busted partnership in russia fertilizer stocks are tanking. nicole, please explain. >> well, we watched the fertilizer stocks closely, and, today issue watching names like hot ash hitting a new 52-week low, and mosaic, and 20% to the downside for two of the three. this comes as a russian back venture with the partnership of basically these fertilizers backed out, and some have vaguely described it almost like opec where there's a consortium, and now the top six producers

are included and you can see down 20%. connell: robert schiller talked about the case schiller report, of course, and he said this about ownership, home ownership right now, watch. >> i think we over emphasized home ownership. it's a good thing for people in the right age range who want to settle down, but there's a lot of other people who buy homes because they thought it was a great investment, and these people have changed their mind, maybe permanently. we'll see a lower home ownership rate. dagen: what does he think of that in co-founder and ceo of the thee agency out in language joining us now in studio. good to see you in person. finally. >> great to be here. i love it. >> do you believe that, that the people will be -- there's a part of the country permanent renters? >> i hope not. the american dream to own a home and be able to get there and

achieve something. it's part of the success. i hope that he's wrong on that, and i don't believe it. connell: your business, obviously, contingent on selling the dream to some extent and removing yourself from that, i'm sure, next to impossible, but u why? why is it the american dream to open a home? why can't it be to rent a news apartment, you know? >> well, you know, i think we all strive to do something, work, go to school, ultimately want to be successful in our career, and i think that home ownership is one of those signs that, you know, you say, okay, i've now been successful, and so, i don't know, i think we all grew up like that. it's the right investment, wrong investment, i think it's the right investment. we are seeing a lot of upsides, especially in luxury real estate. you know, who really knows. >> your biggest problem is inventory in terms of selling. are you seeing more inventory on the market? a lot of what you rely on are developers, but are people stepping up as prices continue to rise? >> there's a lot of speculative

developers out there now starting to build single family homes, there's great homes, stuff that's coming on the market is being consumed or sold even before coming on the marnlt, and that's kind of the most interesting part now is fining the realtor that gets you to the homes prior to hitting the market because these things are not hitting the market, but interest rates are still low, there's no inventory, lack of inventory, so, you know, it's set up to -- there's not been 5 lot of changes in the last month. there's a huge increase in sales volume in the last month that was huge in the peak of 2005, and so especially in los angeles, so i just see a continuation. connell: who is buying? foreign money for the most part, or has that changed? >> there's still a lot of foreign money coming in. all the problems in europe, france, italy, particularly, with the tax issues, russians are still coming here. you know, the u.s. is still a safe haven, a great place to

place your money, and, you know, south america, international, they are going to, you know, miami, going to new york. we see a lot of south americans going to los angeles, more europeans, asians, south asia, all that stuff. dagen: the agency signed on to sell the new carlisle residences out in los angeles. will that continue for, you think, years to come? the move to high-rise living in l.a., which was an abomination a few years ago, and candy spelling is leading the way, the spelling mansion, and now there's a show about the ridiculously priced condominium she's building in the corridor. >> well, and it's crazy, and, yeah, i think the carlisle is a great building in l.a., and i do see a trend going towards new development and vertical living. l.a. just had so much land, and people, you know, didn't want to go vertical. now we don't have the land,

we're running out of land, it's going urban, and the kids growing up, they want to be in vertical living, and just, you know, have the usage of all the amenities, not worry about the gardener, the pool man, you know, all the stuff that comes with big home ownership. it's there at your fingertips, and there's a big trend going to new development in high-rise living. connell: it's always great to have you on the real estate special, terrific to have you in studio, nobody here to interrupt you while you talked. >> i was going to bring my boxing gloves. i was ready. connell: good to see you. dagen: need a taser and cow prod. i want to have the problem. i want to -- there was not any inknew went do in that. connell: not until you added it. thank you, in person this time. consumer sentiment, come on, as you imagine, gas prices play a

role in this report that's out, but there's something different this time around. we'll talk about that. telling you what it is coming up. dagen: broadcast cable battle, cbs versus time warner, could it get ugh -- uglier? connell: president's plan for jobs and exchange, will it work? cheryl and dennis at the top of the hour have that story on "markets now." ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

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♪ >> this is your fox business brief. consumer confidence falling slightly this month after hitting a more than five-year high back in june, but despite the drop, confidence remains well above year ago levs. turbulent day for airline stocks after the chairman announced resignation. he along with john wilson resign from their posts at the airline's next board meeting august 7th. the news comes as i understand go partners divest the stake of 12.1 million shares in spirit. hess selling the unit to direct energy for roughly $1 billion. the deal is part of the plan to focus on exploration and production activities. direct energy is the north american subsidiary. that's the latest from the fox business network, giving you the power to prosper. ♪

dagen: consumer confidence fell in july, flipped a bit, but the second highest reading since january of 2008, this, despite high prices at the gas pump. our next guest says it's all a result of the wealth effect. jack mac intire overseeing 50 billion in assets. phrasing it this way, to what if consumer confidence is high. does that translate into economic growth or higher stock market, jack? well economic growth, remember that 70% of the economy's drip by consumption. you need a happy consumer to go out there and to spend and the wealth effect not to be understated. higher gasoline prices, but that's more than justify set by the effect created by higher equity prices, higher home prices, a more powerful economic influence to the consumer than

higher gasoline prices. again, gasoline prices see on a regular basis, if not daily every few days. >> yeah. dagen: i would argue or ask it this way, are gas prices more than influence today because as home ownership fell to an 18-year low, home price increases less impact on the wealth effect. >> i would take a counterargument. you know, gasoline prices are important, but look at the statistics, we're driving less. i'm not sure that gasoline prices, you know, it's clearly going to be a tax on growth. you can't look at anything related to the consumer in isolation. you know, for every, supposedly for every ten cent increase, the economy takes a hit of 1 # 1 billion. that's meaningful, but the flip side with the wealth effect is that for every dollar of new wealth created, there's a pickup of aadditional spending. there's new wealth created,

talking about 50 billion, maybe a hundred billion of new spending influencing the economy which is meaningful. dagen: the ultimate, there's a kickup in interest rates, but as they go up, the impact could be severe? >> we have to watch that closely. the fed is watching all these things, higher gasoline prices, all these things. higher interest rates, and the flow through effect is that if we have higher rates and that flows through to the pickup in the labor market, the economy can withstand higher interest rates. there's a better correlation between mortgage rates or excuse me home prices and labor, employment, than home prices and mortgage rates so as long as the labor market does well, the housing markets should do okay and not be justify set by higher mortgage rates. >> jack, good to see you, thank you so much, take care.

>> my pleasure. connell: a record second quarter for herbal life, surprising investors, shares higher today, and we've been watching the stock as you know because of the battle between high profile investors, and today, akman losing more on his short bet, so ben willis joining us now from the new york stock exchange. what do you think, ben? >> well, the problem with being a short seller is while you want to sell at $30, the most you make is $30 if the stock goes to zero. if wrong, the stock goes to infinity. it's a hurtful trade, and akman is aware. he could be right, but in the meantime, as it painful position that any short seller is familiar with. connell: 6% gain on the wane to infinity. appreciate it, ben. >> you got it. connell: all right. dagen: sweeping indictment of financial charges against the

real housewives of new jersey. they were in court this morning. connell: new developments on this. looks like normal people, what a shame. l.a. times say the cbs chief believes the network is at war with time warner. this story keeping developing as well. more on that as we look at some of the nasdaq winners today. facebook, well, not 38 yet, but pretty close to 37. ♪ ♪ ting. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this ...is going to be big.

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♪ dagen: charged with federal fraud, two stars of the real housewives of new jersey her and her husband, joe, hit with a

30-count indictment by federal officials including conspiracy to commit mail and wire fraud, bank fraud, and bankruptcy fraud. joe also failed to file tax returns for the years 2004 through 2008 when he's alleged to earned $1 million. the pair were in court in newark, new jersey hours ago. this is tape from the appearance. they have $5,000 bonds, no pleas entered this morning, under travel restrictions to just new york and new jersey, and they'll make pleas on august 14th. joe could face deportation as he's an italian citizen, and this spans years before they were famous when they were allegedly creating false income and jobs in order to get millions of dollars in mortgages and loans from banks, and after they were famous, went broke, filed for bankruptcy, and

alleged to have been hiding assets earned. connell: sometimes there's signs of these things that we may be looking at them. sometimes there's signs people are in trouble when they don't know what the name is. you said they used to have another name, and now there's the italian pronunciation. dagen: of course, he's italian because he's facing deportation, and they were called another name on the show, could be because people were mispronouncing it, and they didn't correct them -- connell: oh, okay. dagen: what do i know. connell: that's not your area of expertise. connell: i did live in italy, though. connell: that's right. you do watch this type of thing, including this show. dagen: i don't watch this because i find the behavior so aborpt. i love beverly hills, by the way, but the new jersey one, i don't watch. the behavior so horrific i refuse to put a dime in their pockets. i don't watch it. i'm serious. connell: talk about making a

transition, it's a media story, a huge story, been on developing here the last couple of days. dagen: we both watch show time, and they are at risk. connell: both homeland fans, they pulled the plug on cbs last night, a major markets for, well, sometime at least as negotiations failed in what was the 11th hour. dagen: dennis has the details. dennis: 26 minutes of darkness from a few minutes after midnight to just a minute or two before 12:30 when they pulled the plug. as you watched last night, e-mailing, both sides, missiles back and forth to all the press, and it's to go dark at 5 p.m., and then six, and seven, eight, nine, ten, and at 12:0 # 4 midnight, there was an e-mail, that's it, pulling the plug, and at 12:29, we extended it to friday, back on air. this is two bullies in the schoolyard, waiting for the fight, and they are saying, no,

you start, you start, you go first. we'll see where it goes from here. time warner now, cable ease's playing a big push, holding the line on price increases, never mind that they have anything espn wants, tough with cross-examination because it's a free over the air signal, and nobody gets free over the air. >> i do because a crazy hd antenna. connell: most get it from the cable company. >> they want 6600% price increase, and first time, cbs specifies we're asking 25%. i think they walk away with a double digit increase here raising all the fees. it's a quarter of a billion dollars, want it to be a billion by 2017, networks paid nothing because it was free signal, and networks have far bigger audiences than cable channels. connell: dual revenue stream, everything else. maybe it's precedent setting and other contracts and what we talk

about every time when this comes up. >> both sides lose running the risk that washington intervenes. senator mccain's already failed a bill, and we're talking with a former fcc commissioner, rob mcdowell, next hour on what he thinks of the dispute and might the fcc in washington involve themselves. they have to work it out and make nice. connell: on that note, we'll wrap it up. dennis, cheryl, they are coming up with that. they are at war. there you go. dagen: we like battles. on that note, joining dennis, he mentioned it, the former fcc commissioner on the take about the feud. can't wait for that. connell: president obama's big news today, how about an $1 # 1 # an hour amazon.com warehouse job, is that enough to sustain a middle class lifestyle in should be a good discussion, coming up, both with cheryl. dennis and cheryl are next on "markets now."

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told you i'd get half. what's in your walle dennis: i'm dennis. cheryl: i'm cheryl casone. stocks slightly higher today as the fomc has a two-day meeting weighing on the committee. staggers numbers on how big a bite the financial crisis took out of the u.s. economy. dennis: overhaul of the tax system what president obama will outline in a major address in an amazon.com warehouse two hours from now. the devil's in the details. cheryl: the president is expected to tout the company's plan to hire at least 5,000 new warehouse workers, but he's the question, is 11 bucks an hour enough to sustain a middle class lifestyle? we have a debate coming up on that. dennis: cbs stations coming back after time warner pulled the

plug fleetingly last night. we have robert mcdowell joining us on the continuing battle of the network titans. just now at the top of the hour, stocks every 15 minutes, stocks higher for today's and tomorrow's stock meeting. nicole? >> there's a lot going on. ith up arrows trying to erase yesterday's slight losses, five straight weeks of gains; however, there's a wait and see feeling of what we see from the federal open markets committee. the vix, fear index, to the upside, and when i look at the board, not just the nasdaq, s&p, and dow with up arrows, but drug stocks, bank stocks, transportation stocks, all of the indexes with up arrows. what's worth noting is nothing's flying away on the contrary. they are tiptoeing to the upside other than technology which is doing better there when you look

at all three. we do that lot going on, and we got in our consumer confidence numbers today, a little bit of a disappointment, home prices on the rise. back to you. cheryl: technology on the s&p, nicole, thank you so much. we are just getting figures from a new federal reserve report on the estimated cost of the financial crisis and the recession. up to 14 trillion dollars lost from 2000-2009. this also amounts, believe it or not, to the average output of the higher u.s. economy over a year. sandy of bmo asset management says it could have been worse joining us there chicago. how can you say much worse from $14 trillion from the financial crisis? it's a staggering number that this report reveals to us today, sandy. >> it is a staggering number. remember it's a theoretical number. i've looked at the summary of the work that was done. i have not really seen the gran nuclearty of the work, but having said that, when you think

about what we went through, and this work tries to capture, not just the economic impact, but the at trough fertilizer of skill workers and attitude, equally important, is a staggering number. whether it's 7 trillion or 14 trillion, whatever the actual number was in terms of the more holistic view, it was a very huge consequence. i'd hate to see that study for the depression; right? cheryl: i'm sure ben bernanke did one back in the day as a student. >> right. cheryl: i want to give the viewers a sense of the committee. the three fed presidents put it together saying it was a huge loss of economic output, fair enough, financial wealth. we know billions were lost across the country, and psychological consequences, and then skills from extended unemployment. that second point, i think, is interesting. the psychological consequences of the financial crisis, sandy much we just found out, thanks

to bank rate, that one in four americans say that they're in cash, they don't trade the margs. it's real estate. are we underplaying at this point the financial effect of what we've been true as a nation. >> well, i think we are, at the same time, i think this historical precedent is there. look at the depression and investor reaction post the great depression, it was a very similar pattern, people were very scared by that experience, a much longer experience for sure, and my dad, for example, a young adult in the depression never stopped talking about it his entire life. i wonder how much of this risk aversion are seen from investors and the story you did yesterday on how conservatively positioned they are, and now the inhibitions they feel in the scarring, and, unfortunately, i think it's largely misplaced at this point, but hard to change the attitudes and get ration

back into risk going. cheryl: we got july consumer confidence data out today which was down. waiting on estimates on gdp. what you're saying is the stock market, which is juiced by ben bernanke, is doing fabulous, but the average consumer, the average american is still concernedded. they are not seeing what they need to see to be confident in the market, and you mentioned your father, my grandmother was a kid of the depression, and talked about that until the day she died, and she was in the stock market until the day she died, 86 years old, and she had utility stocks in the portfolio. what do you say to that difference? what do we have to do here to change the psychology to get people to trust investing again, to trust the stock market? >> well, i think a couple of things are going on, cheryl, in general. one is i think the template around the world is getting better, gradual, slow, and that's a part of it. the other thing is personalities are different. your grandmother had the experience of getting into the stocks, my dad didn't like them,

my mom did. there's individual differences. in general, i think investors are starting to get comfortable, starting to see one thing is where's the alternative? cash gives you an incredibly low yield, the bond market looks more iffy right now, and stock evaluations are not unreasonable, and consumer confidence, while down at the conder reading, is five or six years high, auto sales decent, housing prices up 12% year over year, and so i think there's a case here, cheryl. it's just going to take some time for individuals to gradually progress from this fear stage to gaining a little bit more confidence. it's going to take a little many data and evidence as the fed talks about. better employment numbers, better gtp numbers for people to buy in. cheryl: leaving it there, but your advice to the viewers is look before you leap, and that's just a great solid way to leave this interview with you. sandy, thank you so much for your time today.

dennis: look at this. this is what you saw at midnight if you watched cbs on time warner cable. boom, after mid nights, cbs stations dark after negotiations over retransmission fees between the two media titans collapsed, and the stations restored less than half hour later, and late word this morning is the deadline for talks were extended again to 5 p.m. eastern friday, and joining us with his take on it, fcc former commissioner, robert mcdowell. thank you for being with us, rob. >> sure. dennis: who has the upper hand? cbs, the most watched show, number one network, only a handful of few channels, and time warn earn has hundreds to offer. >> it depends, not to give the lawyer's answer, but on the time of year, what programming's coming around the corner, and these types of contracts expire on the calendar year near the super bowl, bowl games issue and things like that. broadcasters have leverage at that point, but in recent years, they had them expire this time

of year as people watch less tv, less of the fresh knew -- new series. dennis: nfl football coming up, that more or less leverage? >> could and couldn't. depends who blinks first. they are bare knuckle negotiations. football's in august, and depends who pulls signals and who has the upper hands, a great negotiation. dennis: one of the great lapses of cable and channel is three years ago, but different picture in that time warner says you can get cbs shows live on cbs.com, reach that through our interpret access. thaws -- does that undercut the option? >> could enhance the strength. you can get signals over the air for free, they are broadcast channels, but if it's showtime, that cbs owns, a cable only channel, that's a problem. that went dark last nights. dennis: the commission from whence you just came,

historically, they favor cable or broadcasters more? >> yeah, so the regulators and members of congress hate to see broadcast signals pulled from the air in the negotiations after contracts expire. you can argue on the one hand they are favoring kale because they think consumers have a right to view the channels, but the law really doesn't favor one side or the other. it's evenly based. the fcc has a limited amount of legal authority to do much of anything here, and what they tried to do so, it's resulted in more signals pulled, and so consumers are left in the dark. den depp right. now why is it fees historically are tiny for big broadcasters and massive for cable channels? cbs points out that, hey, espn gets over $5 per home per month and # -- 2 million, and cbs with 10 million viewers. >> yeah, years ago when it was

contemplated, they thought it would be commercial time, and didn't know who paid who. you see in the u.k., actually, the bbc paying big sky b for carriage, by the way, owned by news corp.. we didn't know how it would e evolve. seven years ago, broadcasters started asking for cash rather than commercial time slots, and that's changing the whole equation, but the law's written to allow either way. dennis: what's the risk here that washington intervenes? senator mccain filed a bill to break up the cable dial and order alla cart, but are the players blowing this letting it go public and getting bitter? >> there's a few high profile events. three years ago, cable vision and fox broadcasting here in the new york area, actually, and so there's been a few of these, but vast majority get signed without any public fanfare or any sort

of dramatic gyration. this is the first time cbs was at this level of controversy so that makes it a news story and big markets like new york where signals were pull last night. people were disrupted, but are they blowing it? no. i think this is the private sector at work. they are bare knuckle negotiations, and at the end of the day, each side gets what it wants. dennis: thanks so much for being with us today. >> you got it. dennis: good to see you, take care. cheryl: overhaul of the corporate tax system, what president obama is outlining in an address in an amazon.com warehouse two hours from now, but there are strings attached to the plan. rich ed scone is at the white house with the latest. rich? >> expensive strings, cheryl. president obama and the white house say that the white house prefers a corporate tax overhaul that's not a net tax increase over the long term; however, they want significant revenue up front that's not counted in that

whole coal collation there so it will be a tax increase, discussing a tax on international profits, amass capital overseas, there's no specifics on that, as well as changes to boost revenue up front and spend that on infrastructure and some other things. we don't have any numbers from the white house on exactly what they are proposing. it looks an awful lot like, though, the proposal what the president and white house put out before, 28% top corporate tax rate to be accomplished by curbing deductions and preferences elsewhere. the president is calling for an increased minimum wage in the state of the union address to $9 an hour, $8 billion in clean energy spending, infrastructure spending, and now, when it comes to just doing a corporate tax overhaul and not doing an individual tax overhaul, republicans say that they are opposed. >> the plan, which i just learned about last night lacks meaningful bipartisan input, and

the tax hike it includes damps boost business might otherwise get to help the economy. in fact, it could hurt small businesses. >> the president's case is if you make the infrastructure, clean investments, manufacturing investments, get the economy going, it creates jobs which is why he's going to amazon today in tennessee where the company's announced they are going to hire 7,000 people. the white house was asked on a compsz -- conference call hours ago, are jobs the kind of jobs he's talking about in expanding the middle class, and white house officials says we shouldn't denigrate any jobs or work. there's two incomes to have middle class security, and in the end, job creation is good. back to you. cheryl: picking up on whether or not the jobs are good jobs. rich edson, thank you very much. coming up later on in the show, juan williams and an employment expert debate $11 an hour at the amazon warehouse.

that's the salary. is it a good one? dennis: what's bugging me? class warfare from the president. page one of the new york new ti, he says, quote, racial tensions will not get better, but may get worse because people feel as if they got to compete with some other group to get scraps from a shrinking pot. well, thanks for the warning. it's the fault of rich white people that 20% of black people are poor. it's a view that assumes we're filled with envy and resentment when americans of all color and creed believe in hard work and drive and ambition and innovation. the president had one thing right, though. thatstringing pot. under the first black president, the ranks of the black unemployed increased by 34%, and black jobless rate rises by 14%. 34 million blacks of working

age, 2 million under employeded and 12 million out of the work force entirely. not because of discrimination. that's illegal. it's because the economy is not growing, and more government spending will not fix it, only economic growth can do that if only government leaves business alone. your turn to weigh in. tweet me at dennis kneale, and your comments are coming up. cheryl: it's about jobs, and the president's middle class jobs initiative in the headlines this week. 11 bucks an hour, is it enough to sustain a middle class lifestyle? juan williams, coming up to debate the topic. dennis: tech stocks on fire, the fears of the a tech bubble justified? don't miss this interview ahead. like we do every day at this time, let's look at energy. seeing the oil down. ♪

cheryl: talking to nicole about this early united states of america, technology, helping the

s&p, and leading the dow, cisco, hp, microsoft, the big names, pfizer,pse, the tickerrings stiments coming out. we are watching a lot of things, but in particular, health care, technology, the drag right now is verizon and at&t, the telecom guys, verizon down 99 cents. bringing in nicole to talk about more about the health care companies. i know you are watching them merge. the pressure there today, nicole. what's happening? >> there is. that was a red one on theboard n arrow today with the quarterly numbers, and what's interesting talking about sales, the pharmaceutical sales company depend on exclusivity of the drugs, and then they lose the patents and the like and singular is one name that hit hard. earnings overall fell 50%. there, in the latest period, their sales fell 80%.

obviously, getting hit hard on that one, losing that market exclusivity. back to you. cheryl: nicole, thank you so much, appreciate it. ♪ dennis: time to make money with charles payne, looking at a major health information service provider. >> everyone's self-medicating, everyone goes to the interpret these days whenever there's a sniffle or anything like that, and it's helping out web md a lot. the stock had all the fans there, collapsed along with a lot of others, but this is becoming more than just a survivor. this company's done extraordinarily well, and july 12th, there was a preliminary on their second quarter. they raised the guidance on revenue, raised guidance on cash flow tremendously, by the way, and on earnings. they are making it from a loss. the report comes out tomorrow after the bell, and it's nerve racking. the caveat out there now, but issue obviously, here's the thing, if it's a great number and up 10%, you say, golly, wish i had it, and if it's a bad

number, it's down. that's the risk reward when you do these things before the earns. i look at the trends here, guys, and web md looks great to me. chart looks fantastic, and we had a five-year chart, next leg up to 34, takes you probably to $40. this stock did a double top, april 2011 at 58. room to the upside. look at it. you can see it. feels like you are chasing it, but the stock is significantly higher. dennis: an advertising company? their income is from web ads colted on the website? >> the web ads, i don't know magazine, but they have the magazine thing, the apps are phenomenal, about 16 million downloaded last year, and the traffic, though, is to your point. 125 million unique users in the last -- per month, 125 million, 2.6 -- >> a bunch of worriers. they are going every month? >> straight to the internet no matter what it is, real and

imagined. all that does -- i didn't want to say anything. cheryl: my throat gets soar, -- sore, and i think i'm dying. >> you can see the health nut and which is not. cheryl: oh, wow. >> that's a compliment. dennis: yes, it is, in a way, i guess it is. thanks very much, charles. >> we'll talk tomorrow dpsh well, no, the day after. cheryl: if i'm alive tomorrow, you never know. liz is tracking down the former goldman sachs trial, and that's next. dennis: the wikileaks trial of bradley manning. details ahead in your fox news minute. ♪ [ male announcer ] meet mary.

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>> now 25 past the hour. i'm heather with your fox news minute. the verdict in the trial of bradley manning will be red read by a military judge at one o'clock eastern time. the army the army private accused giving more than classified documents, and the judge rules on 21 counts including aiding the enemy. if convicted, he could get life in prison. secretary of state, john kerry, says israeli and palestinian

negotiates are a, quote, very positive meeting with president obama and vice president biden. both sides meeting to relaunch peace talks without american negotiators, but john kerry is expected to join the talking later today. new york city's plan to ban sodas and sugary drinks, 16 ounces or larger, struck down again in a court in a unanimous decision, the state supreme court called the regulation, which was, of course, championed by new york city mayor michael bloomberg, quote, illegal overreach of executive power. how about that? those are your headlines now. ♪ dennis: now the latest on fabulous fab, closing arguments underway in the securities fraud trial of the former goldman sachs vice president, tourr, and we are in lower man manhattan. you got a comment from mr. tourre, what was the latest? >> we got an exclusive comment

today. >> you feeling confident today? feeling good? >> great, thank you. >> i also ran into him in the courthouse. i talked to him in the courthouse saying he is feeling good, feeling confident, and i asked what he thought of the fcc's case, and he said, we'll see. the fcc is just wrapping up the closing argument, and, boy, they tore into tourre saying he, as the captain, created a world of lies, trickery, deceit, conflicts of interest, and not disclosing to investors the role in picking the assets in the $1 billion deal, and also shorting the assets, and for more breaking news, the fcc lawyers also ripping into one of their own witnesses who worked at the hedge fund, and they took to the witness stand for the fcc, but the fcc in closing arguments say he, too, lied on the witness stand, and basically not disclosing to the jurors what really happened in the case, and

that is, that he did not disclose or rather went with the script that john was bullish on the deal when he was bearish actually. the jury could get this case today, and the fcc is wrapping up closing arguments, and then the jury could get this fraud case later today. back to you. dennis: thanks, liz. interesting case. 80% of the investors in the case were european hedge funds who knew what they were doing, a low level guy to be the only one prosecuted so far. cheryl: such a great job on that story. dennis: chasing it down, i like that. cheryl: summer time show down, and we started with eight stock pickers, now down to six revealing the results of the month long stock plays, this friday, we'll say good-bye to matt mccormick or matt, and they have more than reputations

on the line. >> this is matt from cincinnati, and i look forward on taking on robert luna in the summertime showdown, and i belt a pint of cincinnati's world famous ice cream that i'll win. >> this is robert luna, and i'll buy matt an arizona taco if he beats me on the fox business sumtime showdown. cheryl: if you are watching, i want the tacos from north phoenix. i hope you are watching. that's what we expect, if you lose. ice cream against tacos. loser pays. watch this friday at noon eastern to see whose pick performanced the best. all right, president obama's midding class job initiatives, 11 buck an hour amazon warehouse jobs enough to sustain the middle class lifestyle? we'll debate it next. dennis: time to weigh in. is president obama waging class warfare again? tweet me. your take coming up. ♪

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cheryl: president obama visits and amazon warehouse in chattanooga, tara c. the company says these jobs pay over $11 an hour, but are these the kinds of jobs that will sustain the middle class? joining me now, i have juan williams and rob basso. >> in an environment where you have had a shortage of jobs, high unemployment, this is good news. what you want the company to do is be a role model for other corporations that are sitting on capital and not hiring on

concerns. cheryl: $11 in our warehouse jobs. these are not engineering jobs that are being created. >> amazon swears this is more than 30% more than an average job would pay. they really should be applauded. is this a perfect situation? do we need more stem jobs? absolutely. we are getting some jobs and it is better than none. cheryl: is this where the country is going? are we expecting our children to be working in warehouses for the next ten-15 years? should we be happy about that? >> i do not want my kids working in a warehouse, if that is your point, cheryl. i do think that if you look at

the recession, the impact it has all blue-collar workers, mostly guys who are working in manufacturing, construction, for those guys, the idea they can get a job for $11 an hour, that is not bad news. if this is part of a family income, that is not bad. cheryl: all we have seen is service sector jobs. that is a pretty amazing american corporate thing to do. >> remember, when they are building these plans and they

said next year they will start collecting the taxes. cheryl: obviously, the fact of everything online, they will be tax at a federal level. somehow apple gets criticized for creating jobs in china. for doing all all of the manufacturing overseas. apple is a great american company. are we doing something wrong here, do you think? >> i think that people are deciding because of some differences in economic indicators right now that you can make money with some manufacturing here in the u.s. i think you are starting to see some of that move back.

i think you are starting to see some push. not only technology, but the tax rates, etc., you can bring some of that back. i am trying to be an optimist here. >> we cannot just rely on the big companies that exist already to create jobs. you could say it is no lack of capital, the oppression from all the rules and regulations that we live by. that is not it. there is more going on in our culture. cheryl: rob basso, juan williams, thank you so much. good topic. dennis: amazon and other tech stocks on fire. this interview is next. cheryl: free trips to the mainland for hawaii's homeless. there is a catch.

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♪ >> i am ashley webster with beer fox business business brief. the home ownership fell to a 17.5 year low in the second quarter. americans favor renting. the pentagon reaching a $7 billion deal.

community health systems is buying smaller health management associates in an effort to increase its base. a price tag of $3.9 billion. that is a discount. shares are down more than 10%. that is the very latest from the fox business network. giving you the power to prosper. ♪

dennis: they do not come cheap. technology stocks are on a tear. silicon valley insider and eight by eight insider brian martin joins me now. your company has been around since 87.

you have been there since 90. you have seen a bubble or two. >> the attitude in silicon valley has always been about the tax. it is still about the tax. these days it is more about the dollars and cents that go with the technology. it is a very different attitude out there in the valley. dennis: tellis similarities and dissimilarities that you see. >> investors move stocks. a very volatile stock moves up and down with greater amplitude than the overall market. the difference this time, though, are the tools and services that we provide. they have really become business tools that businesses of all sizes can use to make themselves

more if, more efficient. that helps those business model economics. everything is in the cloud. everything is online. dennis: it allows new businesses to get started up that much faster. >> exactly. dennis: also, talk to us about the tech five forms that are here that were not here in the last volvo. social media network, you have the whole downloadable apps and you have the cloud you can

decide how many clicks you want to pay for, when you want to pay for it and so on. they are empowering to these businesses. they are driving again. the business models help make money on the bottom line. dennis: it helps those businesses earn higher profits and do better. voice activated menu scroll through is just amazing. what could get in the way of this tech revolution? i was hoping that we would have some pent-up demand at some point. corporate customers take over from the taft up consumer. >> silicon valley is in its own kind of world right now.

hopefully it is a leading edge of that, even know, spilling down to the rest of the economy. these businesses are able to, you know, use services like ours. save money, but most importantly , use business. for the jobs to come back-- because of these devices. dennis: the solution is to try to serve it. >> timing is everything. the roots of the 90s bubble. dennis: they were not wrong, they were just way early. thank you for being with us today. good job. cheryl: time for stocks now. nicole petallides.

take a look at what the stock is doing right now. 78.39 was a high earlier this year. the stock is up almost 10% at the moment. dine equity may not be familiar to you. but how about ihop? or how about applebee's? they are both under their umbrella. casual dining, fast food, for the most part, has been doing pretty well this earnings season. cheryl: your bacon may be getting just a little bit cheaper. let's head to the trading pits of the cme and phil flynn. >> not only that, but your ribs will get rid of the we have a bunch of fat hogs down here.

basically, it is a lot cheaper for the farmers to feed the hogs. the farmers expand the kurds. what is even better, when it is cool outside. when it cools down, the hogs will eat more. that means heavier pigs when you go to market. that means bigger ham. it may be a little bit tight. these fat hogs may not get to the market by the august delivery. you want to look at strength in the front end of the hogs, but a lot of weight in the backend. dennis: let's talk cattle.

[laughter] in today's media minute, oprah winfrey, you are back on track. "new york times" says discovery has now invested over half a billion dollars in the channel which debuted in 2011. own was hosted or boosted by canceling a costly show hosted by rosie o'donnell. hacking into the thompson reuters twitter account. they have now hacked a dozen different media sites. school a media company once, shame on you, fool a dozen, shame on us.

hollywood has not been paid by china since late 2012. china authorities trying to impose a new tax. studios say that violate terms of their agreements. cheryl: all right. one california community fighting back against foreclosures. things do not like the plan. dennis: your last chance to weigh in. is president obama waging tax warfare? ♪

♪ cheryl: time for your west coast minute. las vegas sands corporation is a

feeling. a man successfully argued that he was owed damages. the stock is up $1.47. richmond, california is trying to use eminent domain as a way to stop foreclosure. banks which are opposed both watching closely. roughly half of all richmond home owners are in mortgage debt. in hawaii, half the nation's highest homeless rates. state officials want to change that. they want to give one way flights back to the mainland. there are about 17,000 homeless

now. critics do not like it. that is your west coast minute. dennis: what is bugging me? is president obama waging class warfare? both parties do. they hold americans at their mercy. as absolute zero. president obama can only rule with a separated people. he will turn america into a detroit. what would karl marx do? cheryl: taxing corporate profits no matter where they are. first, a preview with top white house economic representative. dennis: george mason university anthony sanders on whether

another housing bubble is inflating. adam and lori are next. ♪ a quarter million tweeters musicare tweeting.eamed. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow.

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adam: will come back to markets now. i am adam shapiro. lori: i am lori rothman. dropping consumer confidence weighing as we wait for the fed. adam: déjà vu all over again. home prices bubbling up. the best yearly gain since march march 2006. should we be worried where prices are rising the fast? lori: retailers are banking on back to school shopping sales to salvage this year.

jennifer davis is here with this season's standout. dennis: security and convenience in a new sensor for apple's new iphone. lori: let's get checked in on the markets as we do every 15 minutes. let's check in with nicole petallides. stocks really fighting to stay in the green. nicole: right. we had heavier volume in the first part of the day. one trader talking about the fact that we are sleepwalking with the market. you do see that there are some stories stocks and the trend remains to the upside. you can see the tech heavy nasdaq is the best of the bunch. the banking index with off arrows. the drug index has pulled back some. let's take a look