stocks soaring amid the report the struggling retailer may make another management change. adam: more signs of a stabilizing economy in china. trade growth data blowing past expectations, but is it too good to be true? former ups economic adviser, george, says deflation concerns are real risks for u.s. investors to watch for. lori: move to break up the banks. chaferly has a call for one of wall street's top analysts. adam: h2/oh, my. forget the wine. this is the first water wine. say what? making money from tap water. martin reeds and the l.a. restaurant boasting a 45-page men knew focuses solo on aqua. lori: to the floor where nicole is watching jcpenney, a stock turn around.

>> that's right. following the averages, the dow, nasdaq, s&p posting gains. we had back-and-forth action and seeing whether or not it's four straight days of losses, in which case, it would be the longest losing streak; however, it's turned around. solid gains at the moment for the dow at 52 points. jcpenney up 7%, as you noted, lori, at the top of the show, it's jumping. there's been reports, and there's an analyst covering this as well, but there's speculation as to whether or not they are true, but there's certainly a lot of people on wall street talking about jcpenney. here it goes. the former jcpenney ceo will be stepping in the role of chairman. mike, the ceo, stepping out. he was put in place in april to replace ron johnson, and notice how i keep saying "replace," that is because jcpenney has been such a tough turn around, and the options market is going wild because the -- the quarterly report is due out on august 20th, and so people are

vetting to the wild swings. now, bill akman of persing is vocal and frustrated with jcpenney overall that the ceo search has not been going fast enough, according to some reports, so, and he wants a ceo in place soon, 30-45 days, even putting a number on it. keep an eye on this one. back to you. adam: nicole, we'll keep an eye on jcpenney. we want to bring in morn star analyst, paul, and he covers jcpenney, so we've seen an incredible surge, up 7% today, but they face incredible problems. $1.5 billion in cash, less than analysts wanted, and the products to sell in fall are still in transit from china. should we be writing the company off now? >> well, i don't think you should write them off right away because of the 1.5 billion in cash left. the exchange or ceo transition comes as a little surprise

before the quarterly announcement, so, you know, obviously, the volatility is up, and the worry is up. i think the shares are up because the shorts are recovering because of shorting heavily in the quarterly announcements. adam: making sense. do you have a much higher price target on this stock, i mean, $13, roughly 80 cents, record lows for the stock just this week. where do you think this ends up by the end of the year? >> well, again, i think hopefully they have a positive holiday to send the stock higher. by the end of the year, you could see an 18 over 20 -- 18 or 20 assuming they have operational traction, customer traffic, improvement in same-store sales. you know, if you rewind to the end of the first quarter, i don't think anybody expectedded anything different than what we see in the quarterly announcement, negative same-store sales, and cleanup of

johnson merchandise, but the shares went up as people thought same-store sales were improving, and now as there's problems with the home launch, been kind of reported on, and this new news about the ceo, people drove the shares down in anticipation of a bad result. i think the up -- adam: you're -- >> go ahead. adam: you're talking about short covering, but who is going to shop at jcpenney? i can go to macies, target, walmart, other stores without the brand confusion that jcpenney seems to have. >> yeah, and that's a good point. i mean, retail is and always has been an intensely competitive environment, and, i mean, macy's, sears, jcpenney always competed. i think the point you're making is that once you've consumed -- confused the customer a bit, sometimes it's hard to get them back. oman didn't have a grand plan, but at least he had a tried and

true plan which was mailing out coupons and try to drive the traffic that way, so -- go ahead. adam: wrapping it up there, nobody cut their way to prosperity. you can undercut sears and walmart, but at the end of the day, there's not a profit, not good for them. >> yeah, and i'd also point out that even though oman was supposed to be an interim ceo, this is a quick -- this is a quick departure, and if the merchants don't know what strategy to pursue, it's tough to bring in new merchandise if you don't know if you're marking it up for a coupon or doing an everyday low price or a high pried thereof. adam: thank you, paul, appreciate you joining us talking about the headline of the day, jcpenney. crude prices fall for the fifth straight day over concern about rising supplies in china. phil flynn in the trading pits of the cme. phil? >> you bet ya.

you'd think -- >> we're having trouble with the microphone. checking his battery. lori: in the meantime, let's look at the data released this morning. the unemployment, first time unemployment benefits. the number of people filing for first time unemployment claims fell this week, and it's nearing the lowest level in five years, but a new survey on this proves that the longer you remain unemployed, the harder it is these days to get a job, and john longski, chief economist, joining us now, great to see you. okay. you know, we're going to go to break. we're having all kinds of tech technical issues. stay with us. "markets now" continues. she's always been able to brighten your day.

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[ villain ] well mr. baldwin... it appears our journrney has come to a delightful end. then i better use the capital one purchase eraser toedeem my venture miles for this trip. purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight with a few taps, it's taken care of. impressive baldwin. does it rk for hotels? absolutely thank goodness. mrs. villain and i are planning our... you scare me. and i like it. let's go what's in your wallet? adam: dow up 62 points, global july same-store sales for mcdonalds came in higher than expected, and sales were helped by the burger chain's popular monopoly game, and chicken menu options. lori: naturally. adam: you like chicken, don't you? lori: what's not to like, all those sauces? adam: kids love them.

they expected seams -- just don't ask thousand hay make them. not for sale, author declares his newspaper is not for sale, and this is a quote, will our family cease to sell this time? the answer to that is no. he also went on to cite the times' success with digital subscription models and strong cash flow as a reason it was perfectly able to fund the growth. you don't have to pay to subscribe to them. clear the cash and get the articles for free. this comes after the boasten globe in washington post were purchased by new owners. lori: is that true? adam: you don't have to pay, after ten articles, clear out the cash, and get them for free. another step in going public, the hotel group tapped four banks to manage a share sale as the private equity owner, blackstone, looks to capitalize on a rebounding real estate markets, and strong investor demand for initial public

offerings. they took hilton private in 2007. lori: picking up with john now, the jobless claims and broader trends of finding employment after being unemployed for many, many months. john, are you with us? >> yes, i am. lori: great to have you here. the take on the initial jobless claims, multiyear lows here, but overall, a stubborn recovery; right? >> yes, jobless claims are low telling us that companies are laying off fewer employees compared to the past. it's good news, but what jobless claims don't tell us about is the squall of newly created jobs or the number of newly created jobs for that matter. my guess is that payrolls continue to grow. unfortunately, payrolls' growth probably continues to be skewed towards lower quality occupations including part-time jobs. lori: so, therefore, there's no pressure on employers to pay

higher wages and depressed wages means no stoking up inflation, so the federal reserve continues to enjoy the elbow room. >> and that's the problem if you've been unemployed for a long period of time. it is especially difficult to secure new employment, mostly because the employer has unusually high levels of bargaining power, and they can dictate terms due to the fact that there are just so many qualified applicants out there today. lori: talk to me, let's shift here, talk about higher interest rates in the target that we've seen as of late. it's higher today, but a couple sessions of declines, talking about the fed, but, you know, when you have this formula of rising bond yields and, you know, market that's been on the tear the last couple months, it's troublesome if you're a bull. >> yeah, that's very dangerous. that's potential toxic combination of rising bond

yields amid and over valued equity market. you know, in the past, when the fed began to firm monetary policy after a recession, the equity market was not as over valued as it is today, so if you're an equity holder, you're very much being subject to considerable risk. if we do have the ten-year treasury yield make a run for 3% or higher. lori: not to mention mortgage rates and what that does to housing recovery, but all in, looking at the global picture, john, right, our stock market is so much healthier than other country's targets, would you agree with that one? >> that's very true. that's good, but on the other hand, that increases the risk that not only might there be a great rotation out of u.s. dollars on bonds, but if foreign stock markets look more

attractively priced, less overvalued, especially europe, the u.s. might eventually suffer from a great rotation out of u.s. equities into foreign markets. lori: we'll check back in in other forecasts in the weeks to come. john, thank thank you for the t. >> thank you. adam: charles is here with the pick of a perfect example of an unloved commodity stock, and i used to live in cleveland, but they are all over now. >> cliff's natural resources. the commodity space itself, but coal stocks under tremendous pressure, and for about four or five months, calling the bottom, although the call stocks act phenomenal, particularly cliff natural resources. the chart, gaining a huge head of steam, made a great percentage move, but more room to the upside. we get a longer year chart,

you'll see that. they reported the quarter, beat both times, 77%, 97%. i want to see more insider buying. the argument is, well, it's a value trap. yes, trading at 50% of the sales, 60% of book, but you have the war on coal, natural gas, and the overall economy, things that held it back, but what i look about, and a little bit john talk about europe turning around, we talk about a global turn around, china with good number, and whether you believe them or not overnight. as the fed stops printing money in america, that means the u.s. economy is doing better as well, meaning greater demand for power, particularly, electricity. i don't think natural gas producers let the price go too low because they can't make any money. adam: with cliff natural resources years ago, just cleveland cliff, they were into a big part of steel production. is that a big part of that? >> they do that and thermal, about 50/50 in each. you get a building boom, that helps them, but it's a power play right now is what

everyone's looking at. the thermal coal prices. i've seen little signs, hints, here and there, prices may be ready to make the turn, and it's a contrarian play, but one the big themes right now, particularly in the summer, is the short squeeze, and we see that in technology. there's a 40% start on -- short on the stock. it will get crushed in tech stocks, but in commodity. cliff natural, leaving you can with, higher volty, higher than average risk, but the gaining could be higher than average as well. lori: thanks, charles. >> you got it. adam: thanks, charles. lori: it's been 15 minutes since the last check of the floor. watching groupon? >> obviously, a name we follow so closely. you have brokers coming out and raising their targets today. the stock, as you can see, is soaring up over 25% easily at 11.04 at the moment, but jumping to new highs. worth watching groupon carefully

because they named the co-founder as the chief executive, and they have seen growing momentum here, but they have not seen in other, obviously, since the ipo, and this is what's interesting is piper noted the momentum seen in the consecutive quarter beats we're seeing is great news for groupon, and as a result, you're seeing the brokers jumping on board raising their targets. back to you. lori: thank you as always. adam: cities using imminent doe nan to save underwater properties. we were the first to introduce you the man behind the map a week ago. it will already is facing legal challenges. that's next. lori: going once, twice, sold! the red hot action down on the farm. we'll go there next. >> john deere as 225. ♪

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>> at 21 minutes past the hour, hello, everybody, this is your fox news minute. a wildfire burning out of control in southern california has nearly doubled in size to 10,000 acres. that fire, 90 miles east of los angeles, believed to have forced 1500 people to evacuate there.

fire officials also saying there is still zero containment of the blaze. two firefighters and one other person have been injured. the shooting trial has resumed in texas despite demands from the attorneys that they be removedded from the case. those lawyers have been helping him represent himself in the trial, and they asked to take over the defense yesterday saying that he appeared to be trying to get jurors to convict him and sentence him to death. the judge denying their request today and the attorneys, though, saying they will appeal. for the shoppers at flee market store in new jersey, well, they are checking tickets today to see if they have the winning numbers. two of the tickets last night's $448 million drawing were sold in new jersey, a third sold in minnesota. that's the quick look at the headlines making news now. lori, adam, back to you. lori: i'll share my winnings with you, here, and everyone at

fbn. >> you say that today, but what about tomorrow? lori: you know me so well. breaking news from the white house daily briefing, jay signaling president obama will sign the bill to cut student loan interest rates to lower the rate on government loans to 33.8-- 3.86% rate. the new rate is retroactive and applies to loans made after july 1st. adam: a city's plan to bring relief is called unconstitutional. richmond, california was planning to seize homes with underwater mortgages using the power of imminent domain, but the group says now, not so fast. wells fargo and deutsche bank are suing the city of richmond saying the map is illegal because that investment group will receive, quote, wind fall profits while the city only gets a small cut.

richmond just started the early stages of the process, but several other cities are considering the same kind of deal. lori: farm equipment bidders trying to get the deals at the farm auction. jeff has more from the farm. >> no deals, lori. this has been an incredible auction. used to be auction were a sad affair where a farmer was, you know, getting a pit of what they were worth. that combine sold for more than, actually, than what the farmer paid for it. over to the auctioneer quick if i can. they just stopped auctioning here. hey, dick, jeff flock, good to see you. it went well. >> real well, yeah. this is a one-owner equipment, and, guy, when you get one-owner equipment, used on the farm, well-maintained, the farmers support other farmsers. >> used to bankruptcy auctions, and this is a happy auction? >> this is a happy auction, darn

right it's a happy auction. >> what's that? i'll run to him. dick, we'll get with you later, quick, over here, this is the owner. bruce, you had a wonderful day out here. >> yes, feel good about everything. everything was just beyond belief. >> these used to be bankruptcy auctions, but you do it because you are ready to leave, retiring. >> everybody asks why are you doing this? i'm 66 at the end of the yearing but it's time for me. it's time to retire, and i just thought it was the way to go. >> while the getting's good. you got more than you paid for some of these things. >> i did. it was surprising. some of the things, just unbelievable what they bring in now. >> farmers are amazing. if you make money, you put money in the economy, don't you? >> we do. we try to go ahead, and everything i bought was new, and just, you know, you try to keep it up, have a good machinery for putting the crop in, and taking

more out. >> congratulations in your retirement, a fun day on the farm. no bargains, though, sadly. what can i tell you? farm economy is booming. lori: gosh, what would you sell upon retirement, jeff? you don't have any tractors or combines to unload. maybe your microphone? >> yeah, i'm just thinking here, i got a couple souvenirs of my life in broadcasting that i don't think anybody wants -- cowboy boots? what do you think? lori: very, very sharp. snake skin? >> columbian drug dealer, don't i? lori: oh, stop. jeff, thank you. adam: deflation chain reaction, former senior economic adviser joining us with the concern and why you should be concerned about china following a recent article written for the "financial times". lori: a story you have to see to believe, a restaurant boasting a

45-page water menu. adam: look at who is up and also down on the dow. ♪ right now, 7 years of music is being streamed.

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lori: stocks now as we could every 15 minutes to nicole petallides as she looks at online travel sites. take it away, nicole. >> one we must feature is orbits worldwide. the stock is up 35%, at $12.50 at the moment. you heard our own charles payne featured this a couple of times. know he will talk about it

tomorrow morning. double-digit revenue growth. their books have been on the rise. they did get hit by one-time charges, however. they have been seeing a lot of volume for rooms and vacations, hotel rooms. priceline is up just slightly. worth keeping an an eye on orbitz. what a mover. adam: nicole petallides, thank you so much. keep it here on fox business network. liz claman and david asman will give you complete earnings coverage of priceline and lionsgate after the bell, four p.m. new york time. our next guest says the real threat for all of us is china and potential deflation chain reaction. george magnus, former senior economic advisor at ubs he joins us now from the united kingdom. he is on the telephone. can you explain what you mean by deflation chain reaction? >> sure. the issue i think many people understand now that china's in

the process of slowing down. it iser rack tick and quite noisy but it was growing at 10 or 11%. it is growing at 7 or 7.5%. and my belief this is a process that is going to continue and reveal growing instances of overcapacity in heavy industries like steel and cement and iron ore and commodities processing and real estate locally and so on. so these issues, i think, will, eventually, i mean within the next year or two, i think, basically give rise to, you know, falling pricee in china. nothing that will be, that will be felt elsewhere too. adam: don't we actually see, analysts are telling investors who watch our program, all is well with china. exports are up 5.1%. imports up 10.9%. no one was expecting that. here is something they're not saying when they tell investors that. there has been declining payroll numbers for the last four months in china.

this is putting a squeeze on not only the chinese consumer but political stability? how does that play into the investors getting today and reality because the message may be wrong? >> it is confused or maybe more nuanced. obviously people were a little bit excited about china's trade numbers. it is one month's trade numbers. that's all. and from time to time, you know, i am sure we will get detours. so, perhaps slightly better trade performance in the short term. perhaps some measures which china's leaders are taking to stablize the economy, will give the economy a little bit of a lift 2349 next three or four months. but the underlying trend really is towards declining growth. it has to be really, because, of the huge challenge which china has to rebalance its economy away from investment and loss making projects for example, towards smarter growth, more innovation growth. more private enterprise.

adam: you don't get smarter growth when you have an economy dictated by a government. you get overcapacity. let me ask you this, gordon. i'm sorry, george. i've had on our program gordon chang. we heard from not george soros, mr. chanos, jim chanos. china is going to pop, for years. a lot of people have been saying that china is in a lot of trouble and it hasn't happened. so why do you think in the next year those people who say it is going to pop are wrong? >> i think the pessimists, while i don't disagree with them as such i think their timing has been off because i think they think that china, or maybe they think china basically works like any kind of western economy which of course it doesn't, in many ways. but the reason i think the timing for looking for something a little bit more awkward and difficult for china to go through is now and in the next one or two years is because it's, it's moved very, very

quickly to a point where it is old growth model, basically, is no good anymore for the purposes that it wants to achieve, which is you know, sustainable, stable growth. adam: right. >> it has to change its model. of course that is not just a economic problem. it is a huge political problem for china's leaders to embrace. adam: as you pointed out, it's a problem for analysts and investors here in the united states. quoting from your article, they haven't yet fully embraced the idea that china's model is actually in transformation. george, we appreciate you joining us. your article is in "the financial times" still online the thank you very much, sir. >> thank you. lori: developments with jpmorgan. facing civil and criminal probes over sale of mortgage-backed securities in the run-up to the financial crisis. in a filing with the sec the company says it is responding to parallel investigations by the u.s. attorney's market for subprime minister and alt-a securities between 2005 and

2007. they claim the firm violated federal law and comes after regulators filed a 850 million-dollar civil suit against bank of america. let's check shares of the new york based bank. they are down 44 cents at the moment. 54.86 is the trade. adam: talk about banks, a move to break up banks. charlie gasparino on one of wall street's biggest analysts sees coming down the pike for analysts. lori: new item at the ballpark, live from at&t ballpark to show you next. adam: beer. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves...

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>> i'm tracy byrnes with your fox business brief. tyson foods will no longer accept cattle feed with a feed additive that improves weight gain. analysts say the decision could increase corn demand since many more fed may be needed t could mean less available beef and higher prices. tyson controls 26% of the u.s. beef market. the labor department said 336,000 people filed for officers time unemployment benefits. the fewest workers have applied for unemployment benefits since november of 2007. do . iowa, one top cities

for businesses. annual risk ranks top 200 cities on factors including jobs, cost of doing business, cost of living. nebraska, utah, tennessee made the top five. latest from the fox business network giving you the power to prosper.

adam: five years after the financial crisis, new regulations and charges continue to be thrown at the banks. what is the government's ultimate goal in terms of these so-called too big to fail institutions? fox business senior correspondent and author of "circle of friends," charlie gasparino, is here with the latest. so-called, some of them are too big to fail. >> too big to fail. maybe too paying to regulate. this is interesting. a lot of behind the scenes chatter breaking up banks. fed governors talking about alleged, saying we should break them up. elizabeth warren, now a u.s.

senator from massachusetts is talking about reinstituting glass-steagall that separates the commercial bank from the up investment bank. kind of interesting. i talked to dick bove, the analyst, used to be rochdale securities. where is he now? raferty. i keep getting rochdale mixed up with raferty. pretty astute observer of big banks. we had a conversation with him. he will be on the program later around 3:15. he basically says this, he believes regulators are out there actively pursuing a break up the banks strategy. how are they doing it? they are essentially doing it by hitting banks with much higher capital requirements. which is essentially having the effect of forcing them to get out of certain business. it is pretty interesting. not a direct assault that elizabeth warren is calling for, but what dick bove is telling the fox business network it's a back door effort to go in there and break up jpmorgan, break up

bank of america and break up citigroup, force them to become much more smaller units. will it be successful or not? who knows. i tell you this, if you look at some capital requirements imposed on these banks, you do look like, it does look like they are angling to basically scale these guys down through higher capital. and you know, i'll be honest with you, i talked to larry fink. i think larry fink is one of the best observers the financial business. he is the ceo of blackrock. he tells me they have no choice but to try to break these things down. as much as jamie dimon, ceo of jpmorgan chase and other big banks ceos gone out and hired lots of lobby its to go to washington and basically convince leaders of both parties, democrats and republicans they should not be broken up, to stay large to compete against large european players, there is this growing sentiment underneath that will take hold at some point. these banks will be dramatically smaller.

>> you mentioned glass-steagall being reduced. dodd-frank. you have volcker rule part of that. basal overseas, there are so much out there. nothing is really connecting. >> you're right. so much of that is really conflicting. i really believe that the volcker rule and, which stops banks from doing proprietary trading and some of the stuff in dodd-frank is designed to keep the banks big. lori: that is interesting. >> it is designed to regulate big banks. if you had small banks, if you had, for example, a bank not attached to a depository institution why would you care if they rolled the dice like john corzine at mf global? not systematically important. that's different than other issues that you mentioned which is, like elizabeth warren, the senator from massachusetts, is actually talking about reinstituting glass-steagall, breaking them up specifically. adam: are some of the banks we would call too big to fail healthy enough to be broken up? when you talk about bank of america, the government is going after a bank to fine

them, a bank we had to bail out though. this seems like inconsistent with ultimate goals. >> interesting they're fining them five years -- adam: after the fact. in 2008. >> we are embarking on the five-year anniversary of the financial crisis, sent 15th, 2008, i think was the date that lehman filed bankruptcy. next week was the week they put in place, at least beginning measures of the bailout. so, yes, i mean, this is, an interesting thing. five years later, you're learning that they're holding everybody accountable. why are they doing it now? think they feel the banks are healthy enough to be held accountable. after they stop holding them accountable with fines and regulatory -- adam: slap on the wrists. >> are they or aren't they? they are paying a lot of money. jamie dimon i reported here a couple weeks ago is embracing for a year of bad stuff. after they get done with that, that regulatory phase and holding them accountable, do they go in and break up banks? there are people like larry fink who say they will probably go that route. lori: can we talk tomorrow about

these still charges, you are going to come back tomorrow, correct. >> i don't know if i'm in tomorrow. lori: tomorrow friday? still reporting on jpmorgan after bank of america now being charged with selling at a and subprime mortgages. to your point five years after we're still dealing dealing witl out from all of this. >> it is interesting it is five years later that is not something that the regulators didn't do by design. that was by design. they are five years later. they have more capital. they're stronger. we can hammer them. you notice they didn't really hammer them for the first two -- they publicly abused them. lloyd blankfein, ceo of goldman had to go before committees. adam: to get yelled at. >> goldman, the healthiest, paid one fine, 500 million-dollar fine. we're starting to see the other ones rolled out. that is by design. they're healthy. they can do this. lori: thank you very much. adam: charlie gasparino. we have a rem bove will be liveh

liz claman. >> liz will ask him that i'm sure. adam: you have it first. she will ask him all those questions. as we do every 15 minutes we're going back to the new york stock exchange. teddy weisberg from seaport securities is on the floor of the exchange for us and teddy, what are you watching and any comments about this craziness over jcpenney? >> no. not really. just watching the overall markets and a little bit of amazement. we opened very strong this morning. gave it all back. went to the minus side. we were looking at a pretty negative technical sign, one-day reversal. here we are plus 37, 40 points. not a lot of volume. a obviously a lot of intraday volatility. i think the earlier part of the week has people a little spooked at the moment. stocks look tired to me. i think we spoke about that briefly when you were here the other day. adam: yeah. >> i don't know, i don't think it is the end of the world. the stocks just look like they're kind ever running out of steam, whatever that means. adam: teddy wise berks

appreciate it. you brought up volume. in the words of spinal tap, if only volume would go to levin. >> my pleasure. adam: it goes to 11. got another movie. lori: that was amazing reference. going to a major league sporting event is no longer just about great seats an concessions but internet access. can you tweet about that great play you just saw? post a picture on instagram? stadiums are meeting to meet those needs. fox news's adam housley at at&t park of the san francisco giants. adam, tweeting away? >> reporter: yes, tweeting away. the game starts here in couple of hours. you used to go to the ballpark and on one hand have the hot dog and left hand have the beer. nowadays you have the phone and the other you have the tablet. if you watched a-rod at bat, everyone was holding up something, taking picture or video. that would be twitter or instagram. they have to increase wifi capabilities. here in san francisco, one

stadium is doing that. they have a cafe that people post what they're doing, showing up on a big board. if you talk to the guys that run the team and run this ability they will tell you that it is important for the fan experience. take a listen. >> we want to enable tour fans to share photos, share video, do everything they can do from the couch at home through the mobile devices here at the ballpark. we see this as an opportunity. we think every facility is going to face that going forward. >> a lot of facilities are doing this. super bowl last year they did this. stadiums, reds, dolphins. 49ers are building a new stadium. they will have 1500 wi-fi access points. that is double they had at the super bowl last year. this is how important it is for teams to put people in the seats the ability to text or tweet. lori: the ability to annoy other fans of the that is me and my old-fashioned opinion. thank you, adam housley. >> true. thanks. adam: call it 902-h-0.

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so coming from the danish border and water actually around me and there is the north sea and baltic sea and there is always

been by waters. with i went on vacation with parents, always went to different cities, and first person who tried the tapwater in every single city. my parents said what is wrong with him? why is he always thirsty? i wanted to taste the water. in 2005 i started in this restaurant in berlin. and a customer came up to me and said, so, martin, i actually don't like the water you're serving here, do you have something else? i was reminding myself of my childhood. oh, my god, he is right. water has different tastes. i create ad water menu in berlin. we had 40 different waters. in 2008 i wrote a book, the world of water for the german market. in 2010 i'm a certified water sommelier. adam: who certified you? i'm really curious, what is the difference between a $20 bottle of water or a buck for dasani, that tapwaterrer that coca-cola

filters and plastic and bhp and i will probably get cancer or something. what makes the difference? >> first of all two yes, sir. i've been certified by the water, water trade association of germany. so they're doing actually classes to provide to be not like wine sommelier. they have classes for wine sommeliers as well. like me, a red wine and white wine. there is some for $1 or $2 and there is hundreds of dollars. it is about the taste of the wine. same for me with water. i take the next step and i'm saying water can taste like wine. lori: speaking of the taste, if you use words like nutty, fruity, crisp to describe the taste of wine, what words would you use to describe water that would make sense to your customers. >> almost the same actually. you can be surprised and you will see it at our restaurant how water can taste. water is h 20.

everything should be the same. it is tda self. means total dissolved solids. this is mineral content of every single water and it is based of the layers the water went through. so high mineral waters from spain has like super salty taste and super bitter. and there are other waters from the part of the world, tazmanian rain water is super smooth and sweet. adam: can we make money bottling hudson river swill or something? how would you market that? >> i never had the hudson river actually. adam: you never should if you're fortunate. lori: all right. martin, thanks so much for sharing your expertise and your career. >> you're welcome. lori: what a great job. >> you're welcome. thanks so much. thank you. adam: stocks are making a comeback after three days of selling. invest co's ron sloan says he is proceeding with caution. he talks strategy with tracy byrnes and ashley webster next. plus sandwich shop jersey

mike's growing way beyond its garden state roots. the ceo shares the secrets of his success. you don't want to miss that. it is all next on the fox business network. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

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ashley: welcome back, everybody, i'm ashley webster. tracy: i'm tracy byrnes. the obama white house yet again going after a major bank, using the controversial legal tactic, disparate impact. this time the doj is impacting pnc over its mortgage pricing for quote, protected classes. we'll have the latest on this ahead. ashley: meantime america's shale boom, the energy department approving an export terminal for u.s. liquified natural gas, lng. energy transfer equity is part of that project. its stock at all-time high. global cfo jamie welch is here straight ahead. tracy: that's good stuff. special report, small business, big ideas.

we bought a sandwich shop. he bought a sandwich shop while he was 17. maybe we'll buy them one day. he turned it into a nationwide franchise. ceo will tell us how he did it at a very young age. ashley: i think it would be mike, jersey pete's. time for stocks. nicole petallides at new york stock exchange. nicole, the dow higher but the dollar down. >> a lot boeing on absolutely today. we had back and forth action on the dow jones industrials. it is posting a gain of 49 points, one-third of 1%. dollar has been to the downside as you noted, ashley. oil and gold are mixed. it is worth looking at some other things going on in addition, over the week what we're saying we've had three down days. this was potentially our fourth which would be our worst week of 2013. because we haven't had four straight weeks, four straight

days of selling. there is the one-week chart i was waiting for. there it is as you can see we're still posting a losing week on wall street. dow component microsoft is on the move. adding seven positive down points. every core raising it to overweight from equal weight. jcpenney we're following closely, "wall street journal" is continuing to follow this story that jcpenny is searching for new executive. former ceo, allen questrum may return to the chairman role. ackman is vocal about finding one sooner than later. this come as the performance of jcpenney's turn around halls been weak. back to you. ashley: nicole, thank you very much. tracy: crude prices falling for a fifth straight day on concerns of increasing supplies in china. fox business contributor phil flynn of price futures group in the trading pits of the cme. what is going on with all this? >> normally when we talk about china importing near record amounts of oil that is usually bullish for oil but it isn't.

mainly because here in the u.s. we're producing more oil at home than we're importing right now. that is creating a very bearish effect on the market and rolling into rbob gas prices. gasoline supplies in the u.s. are at the highest level this time of year than in 24 years. add to the fact they lifted some requirements and or pushed them back. that is driving down the ren market. making more available in the u.s. and less for export. gold prices of course they love china right now. china right now is just flying into gold. gold demand in china is strong. if the chinese economy stablizes the expectation that the physical market is going to do very, very well. add to that to the fact that there are many big buying interests in china have big exposure to the dollar. and if the dollar gets week, they run into gold. silver of course is going on fire as well. silver up 67 cents. could be a major breakout if they hold on to these areas.

if they do this again and hold these areas, you could see a lot of short-covering from the shorts. other thing to watch is the platinum gold spread. that ink thing is exploding today. it shows you a disconnect between the physical marks contest and the gold. back to you. tracy: yes. that's been going on all day. phil flynn of price futures group. he has been reporting on that stuff all day. thanks, phil. >> thank you. ashley: dow, s&p on track to snap a three-session losing streak but my next guest says you have to be very cautious about this market in the short term. joining me now, ron sloan, cio of invesco's u.s. core equity investment management unit and also a senior portfolio manager of the invesco charter fund. ron, thank you so much for being with us. listen, we are in the dog days of summer but you think, be a little cautious right now. why do you say that? >> well i think we're have to transition this market from basically a stimulus, monetary stimulus market into an earnings

market. and, earnings are still not cooperating yet. that's the problem. i think we've still got probably another sloppy third quarter to get is a mix to judgment on whether earnings are coming through or not. but if you take financials out of most, most of the s&p earnings, if you take the financial sector out of it, earnings have been flat not only for the second quarter but for the first quarter and parts of fourth quarter of last year. so we probably got at least another quarter of that ahead of us. and so, i think, 2014 will be a much better earnings market. when do we start discounting that? i think we'll possibly have some choppiness as we move from this, you know, fed dominated market to an earnings dominated marret. ashley: ron, you say that perhaps on the upside, if you want to get more of an optimistic sign, you are saying that companies are announcing more cap-ex spending. that has to be a good sign?

>> well, i think so. that's been a missing ingredient in this entire recovery. and if you look at, what i think are two of the most important monthly data points. that is the durable goods number and factory orders numbers, they're giving you reason to be more optimistic. companies themselves in their quarterly calls have not backed away from increasing spending throughout the year. for the most part. so, you know, there's a giant ripple effect once companies start to spend money. and, they're not going to spend it unless they not only see demand for products, but they're also going to then be sails to their vendors. and so that ripple effect i think can actually lead to the higher nominal growth really everyone wants. ashley: with that in mind which sectors do you think benefit the most? >> well i think want to think

about and focus on are those sectors and those companies that are not only the beneficiaries of cap-ex spending but also have good pricing power. that is, they're market leaders in their particular areas. they have good pricing power. if inflation comes back for, because of increased demand for labor or raw materials, these are the businesses that can price through that, pass those costs on. that's what you want to be focused on i think in a higher nominal growth environment, primarily industrials and tech, i think are two of the sectors that would benefit most likely. ashley: as with regard to the global market we take kind of a step back, ron. better numbers out of china. there's perhaps signs that europe is starting to very slowly turn it around. are you optimistic when you take a look at the global economy? >> you have to be if, you know, this is, we can't sell everything that we make here. so we're going to need buyers for these products and the

fastest growing parts of world, even on a subdued basis are, in the emerging world and china is the poster-child for that. yes, china growth has been less than we had hoped for and probably looking at, at this point a year ago, less than we all thought, but it is still a significantly big number, just in absolute terms. and so i think we, it is very important for china growth to continue, at least at this pace if not higher and we're optimistic, we've got our fingers crossed that europe has seen the worst day as and now they're on the up swing as well. ashley: one would hope. ron sloan, thank you so much for joining us. we appreciate it. >> my pleasure. tracy: so pnc is now the target of a department of justice investigation into its mortgage practices, specifically its loan pricing. rich edson is in washington with the details. rich, we're on another witch-hunt. >> well, tracy, the latest in a

spike of investigations and charges against financial companies. pnc admitting in a regulatory filing that investigators contacted the bank in june and that, quote, the department of justice civil rights division and the consumer financial protection bureau are jointly investigating whether mortgage loan pricing by national city and pcn -- pnc had disparate impact on protects classes. not specifically discriminatory through statistics had effect of discriminating against a certain group. spokesperson for pnc. the bank refuses to comment on this or any other legal proceeding. the government has been zeroing in on banks of late. jpmorgan chase says are regulators investigating mortgage-backed securities in run-up to the financial crisis. sec and justice department are suing bank of america for $850 million. and bank of new york mellon faces lawsuits over for return

exchange rates. many in washington have been calling for high-profile prosecutions for years, blaming bank sectionexecutives for the financial crisis. tracy. tracy: rich edson, 2008, we're doing this now if. >> yeah. tracy: what are they doing? why did it take so long and why the witch-hunt now? >> there might be something on statute of limitations here. that is something we're looking into right now. we'll have to look at this first. we're not sure if that is the issue here. there has been major pressure on the obama administration since it took office to produce that perp walk from someone in the banking sector from the financial crisis. they have been unable to really get that collar and they continue these investigations. tracy: yeah. ashley: certainly seen a flury of these, haven't we? tracy: rich edson, all for the perp walk though, right? >> that's the shot. tracy: thank you, sir. ashley: so much more to come this hour. the energy department green-lighting just the third export terminal for liquid natural gas. energy transfer he can quilt ceo

jamie welch will tell us how it will impact america's shale boom straight ahead. tracy: record high crop prices adding a little excitement to specifically low-key farm auctions. jeff flock has been at the auction life -- live. he has a preview. jeff, what did you buy? >> what a great day today. i'm loadings up my, that is some sort of a blade. they're loading up their purchases. i can tell you, combines, tractors, cultivators, you name it, we have sold it today. we'll give you the report from the farm auction in just a minute. right now, 7 years of music is being streamed.

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bounce is great because the freshness lasts for weeks in the drawer. why can't everything stay fresh that long? [ male announcer ] how do you get your bounce? [ man ] lasting freshness. tracy: the farm auctions are not just for farmers down on their luck anymore. some farmers now see them as a chance to cash in, maybe even retire early. jeff flock in illinois with more. hey, jeff. >> we talked to the farmer who, you know, who auctioned this today and it is. he is just retiring. it is just a happy time. dick olson, who runs auctions, farm auctions for what, 40 years? >> we've been auctioning 40 years right now.

my father was auctioneer for 30 years after me. >> your son after you. farm auction makes this a happy time. >> especially a guy retiring and land prices are good, machinery prices are good. you know, it is neighbors support them. and that is what you like. >> land prices are up almost 10% in the last year. nationwide, some states better than others. but i'll tell you, farmers have the cash to come in. look at some of those things, that combine went for what, 80 grand? >> i think that combine was in the 90s. 94, something like that. it was really up there. but exceptionally clean. one owner. that's what you like. >> some of these pieces of gear i'm told actually sold more for more than when the farmer bought them for when he bought them new. how can that be? >> equipment prices are like car prices. they have escalated so greatly. if you have someone a few years old, eight, 10 years old, it

will bring sometimes, it will bring more than what they paid for it. >> this may be a good time to look at farm stocks. the farm economy really is at its zenith right now. do you have any worries as we go forward? >> well the farmers have been blessed with good weather, good prices, good yields. you know the weather this spring was tough for some guys. but the summer has been good for them. but, you know, grain prices are down now compared to where they were. >> who noise. hope people won't get overextended? >> not that so much. they're cautious with their money. this is big dollars. they watch themselves. >> dick, appreciate. >> thank you. >> always good to hear you do your work. we were fascinated today. it was a good time. excellent. just a few things left. people picking up what they bought. it is kind after tag sale. hey, higher dollar tag sale. tracy: they're settings up themselves for retirement. that is awesome, jeff flock. you should be an auctioneer.

ashley: i can see that for jeff, do you think. >> not like dick. he is a pro. tracy: thanks. ashley: quarter past time, quarter past the hour. time to check check with nicole petallides. explain it to me. nicole, take it away. >> all right. we're keeping eye on major averages which are back and forth today. the dow and s&p may snap that trend we were looking at closely because every single trading day this week has been a down red arrow. different picture at the moment. however, if you have four down arrows in a row, that would be the worst week on wall street yet. of course of this year, this year, but it's a winning year. up 18, 19, 20%, depending which index you are looking at. earnings, we're watching both lionsgate and priceline. two names we follow closely going into the closing bell and after the closing bell. lionsgate hitting a new high of 34.70. year-to-date it's stellar. it has doubled.

up over 107% to be exact. obviously "the hunger games" when you think of lionsgate. priceline another name we're watching. don't forget how well orbitz worldwide did. up 35% for orbitz. obviously the travel business seems to be doing well enough. back to you. ashley: nicole, thank you very much. we'll be back to you at the bottom of the hour. of course we have lots coming up after the bell. so stay tuned for "after the bell" at 4:00 p.m. eastern time. priceline.com, lionsgate to name a few. we're kind of getting towards the tail end of earnings season. tracy: it is slowing down. coming up america's shale boom, energy transofficer equity, winning approve to build a plant to export natural gas. we have the ceo jamie welch. ashley: look how the u.s. dollar is moving right now. as you can see down against the major currencies in europe.

british pound gaining ground also up to 1.55. all of the major currencies are now moving higher against the u.s. dollar except for the japanese yen. we'll be right back. you make a great team. it's been that way since e day you met. 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. you cabe more confident in your ability be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach,

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>> at 21 minutes after the hour,

hello, everybody, i'm uma pemmaraju with your fox news minute. yemen remains on high alert after a al qaeda plot to bomb embassies were uncovered. u.s. drone strikes killed an alleged final child members today. associated press is reporting that first-responders to the massive fire at kenya's intern looted banks during and after that blaze. officials are saying that the first-responders stole electronics and took money from an atm. another official says that the police guarding the site overnight tried to take a safe from a bank in the burned out a rifles hall which also houses several foreign currency exchange shops. a pair of sumatran tiger cubs were born at national zoo. the cubs appear to be healthy and new mother is seen grouping and nursings them. sumatra tiger is criminal critically endangered species.

those are the headlines making news on fox business network. cute little guys. tracy: thank you, uma, very, very much. >> you're welcome. tracy: the obama administration has given a green light for a third project to export natural gas to countries that don't have a trade agreement with us. we're talking about countries like japan. the latest approval for a terminal in lake charles, louisiana, backed by a partnership between bg group and energy transfer equity. joining us energy transfer equity global. cfo, jamie welch. thanks for beiig with us. you guys must be pretty psyched. >> we are, tracy, thank you very much. it has been a long process. it is a major hurdle out of the way. it allows us to obviously focus on ferc approval and getting everything else buttoned down from a commercial standpoint. we're hoping to get this project financed and have our financial investment decision and start construction in the first part of 2015. tracy: construction by mid 2015. you hope to have this working by

mid 2019. a lot of jobs for a bunch of people for a lot of years, isn't it? >> at its peak it is 5,000 basically jobs on the actual site itself. each train, and we'll have three particular trains here, is about 4.5 million man-hours per train. so it does add up and obviously it will be good for the economy. tracy: jamie, why do you think it takes so long to get through the so-called red tape down in washington, right? >> you applied for this a really long time ago. the regulations, it takes forever. you have to make sure you're in the right queue as far as your application coming up down there. why, when you're creating jobs? >> well that's true. i do think, look, there's a lot of discussion around the impact of exporting natural gas and the fact that we're going through pretty much an energy revolution in this country with shale gas phenomenon that has occurred. taking a thoughtful, deliberate review of each of those applications to see when in fact

balance all the relative pros and cons. there are a lot of constituents involved. i hink it is not a bad plan. thus far the administration, yeah, there was a two-year hiatus when it was first approved this packed approval and to cheniere and freeport and 90 days ago to ourselves. continuing the plan on evaluating on thoughtful basis it certainly makes sense to the administration. tracy: our freed trade agreements are with countries like australia, canada, nicaragua, you're looking to get into others. japan a big user of natural gas. where else are you hoping to go? >> well, we're going to have a sole-source relationship with bg. bg as many people may know, the largest lng player in the world. they have particular emphasize in the -- emphasis in asian markets, particularly outside of japan which you mentioned. you've got correia, you've got

singapore. ion countries at some point like indonesia, which had been a exporter of lng for longest period of time. it actually now because of its reserves will be an importer of natural gas going forward. you also have china on top of that. so i think most of what you're looking at are countries that lack indigenous reserves and many of those are in the asian basin. tracy: as cfo we would be remiss if we didn't talk about your stock. it is on fire lately, i have to believe going forward all this will continue to help the stock and the price. does the company have enough cash to keep growing and building pipelines like this? >> well this project we're going to be basically very prudent how we finance it. we'll finance it on a project financing basis. we're given that luxury because we have a long-term commercial agreement with bg. that will allow us to basically put financing at the asset level. when there is enough equity out there from a lost infrastructure

funds, pension funds, looking for a long-term assets, to actually own, so therefore we expect to source the equity for this particular project from those sources, which will relief any strain that we put on our balance sheet. you're right, our stock has been on a tear. it has been great. i think the best is yet to come but we've got a lot of exciting things going forward. tracy: that's great stuff. a lot of people are looking to invest in this. you might as well take advantage. it's a win-win for everyone. jamie welch. energy transfer partners. congratulationsings, sir. >> thank you very much, tracy. thanks for having me. ashley: all right. we have some breaking news for you. a cbs spokeswoman confirming to fox business that talks with time warner cable have resumed. this comes after a blackout that began friday and deprived more than three million time warner cable customers from watching cbs stations in large u.s. markets including new york and los angeles. again a cbs spokeswoman

confirming with fox business that talks with time warner cable have resumed. they have to get talking again. so that's a positive sign in the dispute. a blockbuster biotech deal is reportedly days or maybe even hours away. coming up next we'll look how a potential amgen-onyx tie-up could shake up the biotech sector. tracy: first as we head out to break, let's take a look at some of the winners on the s&p 500 right now. natural resource, up almost 9%. that is a charles payne favorite. we'll be right back. my mantra?

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>> nicole on the floor of the new york stock exchain.

>> i took another peek because it's the market where it's not one way or the other, and in this case, the dow has been holding on to gains over the last couple hours, but earlier today, it was in the red, and so that's the environment, some back-and-forth action, but right now, holding the gains and the dow is looking nice up 51 points. let's look at deen foods, it's up just over one-third -- oh, i'm sorry, that doesn't make sense, down 7%. that's more like it. okay. down 7%. why is this happening? they face intense competition. they also are now have recently, not long ago, lost their walmart contact. they have deen's milk, now doing a speeding up of closing of firms and factories. they have intense competition. not well for them. back to you. >> not at all, nicole. see you at the top of the hour. >> amid reports of the takeover,

pharmaceuticals set to release second quarter earnings, and waiting to see if the company giies an update on negotiations, if they don't, he says it's the 800-pound gorilla in the room. joining us, by yo tech analyst at iq, and, steve, thank you so much for joining us. do you expect the deal to get done, do you believe the price offered is a good price? does it get done? >> okay, well, thanks for having me, first of all, and second of all, right now, the reports that have been thrown about, i believe you said it was $130 a share, those were unconfirmed reports from bloomberg at this point. i think there is the opportunity for another acquisition party or initiative party to emerge that has not yet done so, so while the 130 has been reported, i think there's room for potential interests before a deal happens. in terms of whether the price is a fair one, i guess that is

always in the eye of the beholder. it's worth noting that at current levels, there's a 50% premium or price that would reflect a 50% premium from where the stock was prior to the initial offer last month at $120 a share, so that would be a healthy premium. however, the $146 price on stock reflected the likelihood of additional parties being interested, given the scarcity of the assets. >> yeah, no one's realll come forward, have they? the other biggie, but i don't know if they come in in the last minute here, but would it make sense they take over? they are both in the same field, producing drugs to fight cancer, and it seems to be a deal that makes sense. >> yeah, i think it's a great strategic fit if that turns out to be the final acquirer. they have a cancer program, both commercially and in terms of its

research and development operation, so we think there's opportunity for operational synergies should the two companies be combined, but also in terms of really the need for them to acquire a company. we see a great strategic fit as well. in the past few years, and we expect moving forward, would have the slowest revenue growth rate among large cap biotech peers, and they are expected to grow revenues significantly over the coming years based on the strength of the recently approved drug, so strategically, it's a great fit if they turn out to be the winning acquirer here. >> interesting. seems to me the business of pharmaceuticals is changing. there used to be a team of scientists in white lab coats working on the next blockbuster drug, but now you just buy the company or the drug, either/or, in order to expand your own business. >> yeah, and i think that it's been a part of the biotech land scape for quite a while, and we expect that to continue.

if you look at the biotech companies putting forth the effort to bring drugs to market, once those drugs are getting close to the market or on the market, to the extent that some of the companies can derisk research and development profile, we think it's easier for acquiring companies to shell out large sums of money once risk is out p play. >> then you have to get fda approval, not always certain. >> another story all together. >> thank you so much for joining us. >> so much red tape; right? >> yeah. >> breaking news. oil making it five straight days of losses, closing down at 97 cents to 103.40 a barrel. that's a loss of nearly 1% on the day today. president obama set to meet with the greek prime minister. this as the mediterranean nation is really trying to get its stuff out of the sixth year recession. peter barnes, we talked about this. a lot of similarities, huh,

between us and greece? >> yeah, that's right. well, to some economists, no question, tracy. both economies suffering from debt, slow growth, trying to get job creation going, and both leaders of the countries, and they are meeting right now, by the way, the meeting has been underway for a bit here, expecting the cameras about to go into the room here, expecting some comment from the president and greek prime minister, and we could hear them talking about austerity. both leaders pushing back on austerity, by, of course, right now, greece is trying to keep its $150 billion bailout from the imf and other european nations on track by reducing spending, reducing government jobs, reducing its deficits, but -- and for some economists right now, the analogy between the united states and greece is, at this point, a little bit like

apples and oranges. >> it's also very direct about cutting wages of public employees, cutting the number of public employees, privatizing sustain-owned enterprise, and really, here is orders of magnitude compared to gdp are vastly higher than anything that's in the u.s.. >> one item we know for sure according to the white house between these two leaders is the president's proposal for a big transatlantic free trade zone like nafta for the united states and europe which is something, of course, that could help growth in both countries, particularly in greece. tracy, back to you. >> peter barnes, thank you very much again, sir. >> yeah. >> slightly bigger economy than greece though. coming up, small business, big ideas report. meet the ceo of jersey, starting work forget company at age 14 and bought it three years later. that's impressive, and now he

runs one of the fastest growing food chains in the country. >> as we do every day at this time, the ten year down two basis points, 2.58%, and your 30-year moving slightly down as well, only one basis point lower, 3 #.67%. we'll be right back. [ male announcer ] these days, a small business can ve by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of dat for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey,an i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪

here's the crawl space the hole -- that's what saved our life. but that night, immediately, the red cross was there. that volunteer, he didn'even know us. he just knew that there was a family with two younger kids who didn't have a place to go. that was the red cross. i knew that's what ththey stood for. they help people.

>> boeing has the first order cancellation out of the orders ordered this year. the travel service of the czech republic, a charter carrier, has canceled the 787 order with the aviation giant. meantime, hilton worldwide hired four investment banks to underwrite the plan for initial public offering. they have been tapped to manage the ipo, expected to come in the first half of 2014. tyson food are no longer accepting cattle fed with a food additive that causes weight gain. it could increase corn demand. it would mean less available beef too and higher prices. tyson controls 26% of the u.s. beef market. that's the latest from the fox business network, giving you the power to prosper. ♪

>> today's small business, big ideas, it was a mom and pop sandwich shop in 1956, and today jersey mike's is a nationwide chain with nearly 700 locations. the story of the founder and ceo has many, many -- just as many layers as the sub sandwiches, and they are sandwiches, not hogies, by the way. your story, so intriguing. at 14, you work at mike's sub shop. >> right. got the job from my brother who worked there the job before me and recommended me to the boss. i got an end road there. >> 14, slicing ham and cheese, delivering, and three years later, at 17, you bought it? >> yeah, the owner put it up for sale, and no one knew about it, and, actually, my mother said, why don't you buy it when i was going to bed, and i woke up the next morning, and on the road, tried to raise a dollar, and so

i bought it for today's dollar, about a million dollars, from a football coach of mine who was a banker, rod smith, and we laugh about it today because it couldn't happen, you know? >> no, because he helped you get a loan. >> right. >> it was $125 ,000 to a kid? i don't trust my son with a bowl of mac and cheese, and everyone in here knows why. you have this -- now you have the place, you're in high school, like skipping school to work. >> went to home room, history, skipped gym, and english, a few courses, had to get a medical excuse to graduate because you can't miss gym. >> of course not. flashing forward, you took it on the road, franchise. >> 87 we started franchising it, and in 25 years, built 600 stores, and now looking to build another 600 on the books, probably in the next three to four years. >> how do you keep consistency in everybody knows the jersey makes the bread and bagel so good. >> that's right, the jersey bread is shipped nationwide,

proofed out, and baked in every store. it works. >> that way you have the consistency? >> that's right. >> are you worried -- your competition, and you will get chills when i say it, it's subway, isn't it? >> they introduced it nationwide and worldwide, and they know what the product is, and it's been great. >> for you. >> yes, of course, we do it differently. >> you can say "better," i know you want to. >> no, no, that's for the customers decide. >> that's politically correct of you. why put it under your own umbrella? >> they wanted to open it up in california or took them around the country, some people would take them to london every third thursday, the guy came in, and so, eventually, i said we have to franchise this and grow it, and so that's our model. we still open our own corporate stores as well, but mostly franchises. >> i love that you added "jersey" to it, mike the original owner, and you added

jersey. there there's kentucky fried chicken, idaho potato, and jersey is where the sub sandwich is the core product. >> it's a sub, not a hogies. do you have your family involved in this now? >> yeah, my brother, sister have store, and brothers-in-law have store, and so, yes, kids are involved, so everything is good around the holiday time as long as everybody does well. >> exactly. you have ad lot of kids working for you, employing a lot of people as well. >> sure, sure, sure, and, again, forces them to come out of their shell, and it's a first job for a lot of them, and they learn, you know, about our company, and what we stand for, and that's giving, making a difference in life is our mission statement. >> i wanted to get to that. you opened a store in manhattan, but you guys have a lot for the jersey store in the storm, adopt you? >> yes, yes. we stepped up, and the owners fed about 4,000 people a day in different shelters, and made

sure the need, you know, went where it was best served. >> the people were really happy to see jersey mike's show up, sir. peter, thank you so much for telling your story. >> thank you. thank you. >> that's really, i mean, at 14 i just discovered girls, so last thing i wanted to do was that. so impressive. >> my son doesn't lock the front door. couldn't imagine. great stuff. >> great story. it is a little after quarter until the hour, down to the new york stock exchange, and our friend, teddy, joining us. teddy, look, first day in august, thin right now, and it's all very choppy. pretty much what you expect at this time of the year? >> well, i guess so unlike previous years, this is all-time highs for all the popular averages other than nasdaq, at a 1-year high, so, you know, that is, that is the difference, and i think the first couple days of this week unnerved a lot of people, the markets, to me, look

a little tired and top pi, but, perhaps, as you pointed out, we're just in the deep days of summer, and early august and people really are thinking about grabbing the next couple weeks, whatever it is, to get away, and not deal with stocks. i don't know what it is, but it's quuet. it's dull. the tone, they know, you know, just look a little tiredded. >> yeah, they do. teddy, look, we have the latest job claims numbers out today, nothing particularly spectacular there, but does that do anything for the taper talk? >> no, i don't think so. i think the problem is the keyword is "nothing spectacular," and that's the problem with all the numbers. you know, none of them are spectacular. you get a good number, a bad number, two steps forward, one step backwards, and right now, the market sort of reflects that, and i think, you know, for what it's worth, and not worth a lot, but if we can just hang in here and hold the gains until we get into the fall, i think that will be some sort of victory.

the risk is, of course, that they really do get tired, and people start to take some money off the table. markets, no bids, you know, we could be down -- we could be down hard pretty quick before you know it. >> i think you're right. teddy, as always, thank you so much. >> the last three septembers, it's fell between 8 and 13%. i say nothing, but -- >> hey, that's something to look forward to. >> hey, you know, hang on to this before we get into the fall. i mean, rewriting history every day, almost, so i guess you can't look at past records. >> deja vu all over again; right? hollywood, again, trying to catch in on raunchy comedy. moviegoers keep buying it, though? uh, yeah! >> they make it for a reason. >> i know. >> first, today's winners and losers on the nasdaq. talking about tesla motors today, a decent report, up 15%, up more than that at one point today. we'll be right back. ♪

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>> breaking news, fund management is withdrawing all of itself money from persing square. person close to the matter says that soros fund management has less than $250 million with persing square, and, again, this is roiters reporting. huh. >> interesting. >> they are like two kids in a playground; right? fighting? >> they are, in the canted box. >> yeah. >> at the movies, comic filth leading to box office gold. dennis joins us with all the filthy details, dennis? >> yep, nothing succeed in hollywood like a good filthy, r-rated comedy, and so it is

that warner brothers premiers" we're the millers" this week. what's not to like the body of jennifer, a full frontal shot of massive proportions, that you don't see here, and the quest to smuggle marijuana in a win bay go. it's just the latest dive into smut as entertainment, four of the top five comedies were r-rated, and now, there's a movie, "this is the end," nice guy michael is impaled on a lamp post, and the "hangover: part 3", witnesses a giraffe losing a head. there's the female buddy cop film, "the heat" with an emergency tracheotomy thrown for in extra laughs. this started 15 years ago with "something about mary," but the memory is short term. the real inspiration could be

"ted" coming out a year ago, the top grossing r-rated comedy of all time. 550 million dollars worldwide, now, the upside in r-rated comedy, look at the spreads on the cost that the studio spent to make it on the far right, and what the films brought in so far. the r-rated comedies, a surprise for hollywood, turns out were-rated films of all generas, not just comedies, and the pg rated films bring in more money outside the comedy sector. there was 168 films with r rate, and took in 2.3 billion on that, but hollywood made the same number of pg films and look in 6.5 billion. comedy, r is the way to go. ashley? ashley: when they have a formula, something that works, you get it again and again and again. filth is in. >> ted done with other animals, maybe a panda bear, and tracy: a sad case society that we're enjoying that movie.

i did not enjoy the movie. >> i thought it was funny and inappropriate. that was the thing. inappropriate. >> that's what it is, i guess, inappropriate. >> all right, coming up, groupon soaring in the aftermath of the earnings, and rising on news they are shopping for a new ceo and rumblings inside the news room in apple. the exclusive details, that and the rest of the day's market action straight ahead on "countdown to the closing bell." ♪

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♪ >> don't bank on it, the mortgage mess comes back to bite big banks like jp jr. morgan, and investigating online lending? we'll ask whether investors should run for cover. groupon gets the groove back, stock soaring, and the ceo hits a low note with the own inspirational music. what's next in the comeback

story? hedge fund billionaire, dan loeb taking it on the chin from george clooney. it's a story we've been following from the very beginning. "countdown to the closing bell" starts right now. ♪ liz: good afternoon, everybody. i'm liz claman, the last hour of trading with a couple major stock stories developing right now including breaking news. first, let's get to the report that sorros fund, george soros, the billionaire, and his management fund is pulling out all the money they have in bill akman's persing square fund. that's about 250 million, maybe a little less, but needless to say, it's stemming from the fact that bill akman asked the fcc, and, by the way, charlie was first to report on this, has asked the fcc to look