connell: action in syria dragging the market down. home prices are on the rise. a look at the rearview beer. another reason to hate facebook. creditors now using social media to use social media on whether or not they will loan you money. ash from the fire is now raining down on the water supply. we will have that and lots more in this hour of markets now. ♪

connell: markets now begins. it is all about syria. you have to look at the fact here that we are seeing today. >> we only have four days left in the month of august. the dow is off session lows. we did get a report for june home prices. higher mortgage rates definitely affecting the housing markets. moments ago, we got a statement from the sec. a spokesman saying that the chairwoman will meet the head of the exchanges and regulators.

they will talk about addressing the market data. connell: that will be something to follow up on. chuck hagel speaking out saying the united states is prepared to strike syria the use of chemical weapons by the assad regime was "undeniable. " a foregone conclusion at this point. >> it certainly seems that way. i have been through this rodeo a lot of times. they do seem like they have

crossed. connell: the type of strike becomes the question. maybe a two-day strike or a couple days. you are in and out. this is important for u.s. credibility. they won the argument. do enough sufficient damage to change the balance of power. the syrians are backed by the iranians and russians.

it is difficult to conceive that you can do enough damage and be able to tip the balance of power. the route they will go is to go in quick strike. hit some targets that are somehow related to the chemical issue and some that aren't good enough to punish the regime. this guy has killed 100,000 people. connell: not something we should be doing. what do you think will actually happen if we do, if it is surgical light that?

>> the best case scenario is it just drags on. the on good scenario is this leads to some kind of escalation which we cannot really control. connell: are there odds-on not? >> i think it is unpredictable. >> you have to do things that are suitable. this just sounds very cool. it sounds like it pr stunt. connell: you talk about holding people accountable. >> at the end of the day, he gassed people.

his regime went down. we hold people accountable after world war ii. if syria had a nuclear weapon, we would not be doing this. the irony is stuff like this actually probably contributes. connell: more than 12% compared to one year ago. in 14 of the 20 cities surveyed, the gains were smaller month to month.

mr. schiller is joining us now. >> they are still going up. we have a 12% year on year increase. it is a little weakening. this price increase, while it is solid, it could come to an end. even the serious situation represents a cloud on the horizon. in the gulf war, we saw an effect on home price indices. when the war cloud started to loom then.

connell: even if we did not have that, we would have interest rates. we have already scene about a 1% increase in 30 year mortgage rates. the real affect came last fall. i think that there was almost a buyer. you think interest rates have to go up. connell: if you had to pick one, what is your fear going forward?

>> i am conflict did. in some sense, it is almost obvious. by a while now, flip it in a year or two. very likely to make a profit. we have a lot more potential flippers in the market. we have various clouds on the horizon. connell: is always great to have you on. starbucks is making its way onto the shelves of whole foods. it is with the recent trend of

fresh juices. the bill giving starbucks opportunity for its brand to be recognized in a larger market. all the rumors about the new iphone, the company is planning to launch its own trade-in program. the iphone5 they get you $250. apple's next day that a couple weeks from today. with that, let's take a look at

apple today. ash from the fires out west is now raining down on the water supply. we will get a report on that. we are down almost 100 points on the dow. we will have the latest on that. keep it here. up three dollars today. back in a moment. ♪ ♪

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wildfires. bruce about battling the wind fire near yosemite national park, they are finally making some ground. >> good morning. just a few miles away from the leading edge of the fire. 4000 firefighters are doing battle with the stubborn rim fire. this really has become an all out air assault. continuous drops of water. we were visiting with some locals along the coastline. despite erratic wind, crews have made significant progress.

it has grown to 180,000 acres. gerri brown praised the firefighters who have gone through. >> we see something that we have to live with. it may think it worse in years to come. what ever it takes, i will make sure that the resources are deployed. connell: the fire, the ash from the fire may have an impact from the drinking water supply in the bay area. has there been an impact from that?

>> yes. that drinking water actually comes from. death of the artificial lake there. that ash now raining on the surface. authorities are scrambling to fill other reservoirs before all the ash sinks down to the level of the intake valve. connell: thank you very much. much. topic now. burger king don't bother asking if you want fries with that. they are just putting them on the burger. >> i am a little little disappointed with this. for french fries on the burger. they are selling it for one dollar.

they are calling it, conveniently, the french freiberger. everybody is tightening their budgets in terms of consumers. they have to come up with new ideas. stocks are up 38%. you don't do catch-up. connell: how do you remember that? i do not like she's very much. why do you have to bring that up? >> moveon. you have a show to do. your facebook profile and your

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>> i am lauren green with your fox news minute. trying to contain an outbreak by hosting fascination clinics. that outbreak started with a person who contracted the disease overseas. clients will ask the state of florida to pay for the legal bill. the state law allows a defendant who has been found not guilty to have the costs associated with the case reimbursed.

making a push to host the summer olympic games. washington, d.c. will be the first city to host the summer games. it has a long way to go. those are your news headlines on the fox business network. connell: thank you very much. this continues to escalate. the potential of the united states involvement down the line. katie stockton joins us. always has a very good technical look at the markets. is this something that you look at just temporarily?

>> i think the negative reaction is reasonable. i think that it does appear to be temporary. last week we saw this oversold extreme reading that we have not seen in over a year. it is pretty rare to see that. we do tend to see the market entering a bottom process. i believe it was around 1639. that would be an ideal set up. connell: we have the nasdaq on the screen. as we see it there, you are talking about the support not very low below that. what about a target? >> on the upside, the initial

and final resistance is right around 1710. of course, that is based on the recent high. beyond that, i have a target of about 1780 based on a previous breakout. on the downside, if we were to break down, there is some additional support around this. level. i am not expecting a return to that level. connell: we appreciate it. good perspective. good to see you. thank you. using social data as a way of measuring credit worthiness. your behavior on the internet

could determine how much money a lender is willing to give you. treasury secretary setting a limit. halloween maybe a little bit scarier this year. here we go again. before all of that, some winners on the s&p 500. ♪ [ male announcer ] the days, a small business can save by sharing.

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connell: back on markets now to talk a little bit about facebook. we will begin with the stocks. >> it is down about 1.6%. lots of news on facebook. finally, for the first time since the ipo, facebook did hit a market cap of $100 billion. we are receiving several pieces of information on the company right now. once they hit the ipo price, she was out. facebook complied with 79% of

them. we are getting more information. connell: we have another reason to be careful about what you share on facebook. >> using social data as a way to measure credit worthiness. it depends on who you associate with on the web. if your roster is full of people with high credit scores, they can pass the same on to you. if one friend is delinquent on a long, that can blow your chances of getting one.

what kind of apps and operating system you use, even how you click around on their own webpage. take your time reading through the loan. there is small-business lender cabbage which says it can use data from places like ebay and paypal. for now, they are still a niche market. you may want to come through it one more time. connell: thank you. kind of scary. >> we are always assuming the worst. >> just be careful what you post

online. connell: will have charlie on in a minute. we will talk more detail about this. one of the companies you heard was cabbage. let's bring in the cofounder of that company. >> we use facebook and twitter. it is a proxy for engagement. we see people that work their businesses online where they engage with customers. they deal with customer service issues. if they are more engaged in that part of their business, they tend to buy products at the right place. we see people who have added facebook or twitter stuff to

their cabbage account. connell: reliable is the data? >> we are looking at it for small businesses. like i said, we look at it as an engagement. i think you will see other pieces of people are typing in all caps or lowercase. no different than what color car you drive.

connell: i guess that is out there. it is public. is it okay, i guess, is the question. >> i think that it is just sort of the age that we live in. i think people get the money because they are engaged in these. perhaps fox viewers. connell: it is a good topic. i do want to get back to that breaking story. charlie joins us now.

>> telling people he is likely to leave soon. an interesting thing. a longtime economic operative. people think he will probably go to wall street. we are waiting for the white house. connell: is there anything that we can read into this? >> no. it could be the fact that the guy wants to make some money. we will follow this throughout the day. we will figure out exactly why he is leaving. clearly, we have another

shakeup. the white house is not commenting. they actually are not denying. they are not denying this report. connell: we will have more on it throughout the day. this is just breaking. charlie will be reporting on it throughout the day. thank you very much. a deadline of eight october for congress. we are talking about the debt limit again. we will get into details on that. we will have more on the big story today with syria. energy markets among those reacting to the news. the local

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connell: jack lew saying our nation will hit the debt limit in late october. to d.c. now and rich edson. >> neither have an opening offer. they refuse to negotiate.

that glue claims based on our latest estimates, extraordinary measures are expected to be exhausted. failure means irreparable harm to the economy. one analyst agrees. >> we still will have a very nasty situation where people do not trust us anymore and they want more money. >> the u.s. can expect a severe amount of confidence. while lawmakers return to washington in the next few weeks to figure this out, congress may have more time than he is claiming. officials said they would have only 50 billion in cash, but treasury ran a surplus last september which traditionally is

a huge thing. connell: thank you. a great rapport. rich raised a number of issues in his report. this discussion of raising the debt ceiling has bothered some people. they just glaze over once they hear it. it goes up every time. i am sure that this time will be no different. they have to raise it. there is no choice. >> the debt thing has to go up. we are still borrowing a lot of money. we have this political posturing where we have to figure out how we will get there.

guys in congress do not like to vote for the debt limit. the reality is you have to find some deal. connell: we can talk about timing. when do we really hit the limit? is there some debate in your mind about that? >> we hit the debt limit back in may. his latest estimate is we are down to $50 million. that sounds roughly enough for us to get your halloween. we know there are a lot of payments that need to go out the beginning of november. the reality in washington is

that often the events are not so often the mudflows. there is one of those around columbus day. there will be another one around thanksgiving. connell: another thing, what would be more harmful in your view? would it be more harmful to just not raise the debt ceiling or to do so without having corresponding spending cuts put in place? >> much more harmful not to raise the debt ceiling. they will be in a position where they have to violate the debt

limit and that is just a big unknown. neither of those are worth incurring. connell: is that the way to go? >> it is not clear to me how you get to guess without a enough members congress. i think you have to give members something. they gave members something. they gave this provision that that if there were not budgets passed that members pay would be docked. that seemed to work in some sense. you have to give people something so they can feel comfortable voting in. connell: thank you for coming on today. >> sure thing. connell: more on this breaking news. related to the white house.

charlie has an exclusive report to a possible shakeup. gene sperling is like to leave the post. white house not commenting about it. they are not commenting one way or another. charlie says that there is a possible replacement. there you go. a revolving situation at the white house. charlie will have more at the top of the coming hour. then we have traders at the floor of the chicago mercantile exchange. that is your big story of the day. sandra smith is live with that next. first, some of the winners. ♪

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connell: back to syria. oil is a big part of this story. the reality of a military strike seems to be coming closer to being a reality. sandra: ever since we have heard the change and tom, talking about eminent action from the united states.

we saw a big change in the commodities market. back above $108 a barrel. a large sense that we are getting. we are seeing energy prices higher today. there is major concern. the largest oil producer in the world. that is why we continue to watch that story. we are also seeing u.s. dollars. gold, remember, we have been talking about a possible bottom.

gold prices spiking. up a couple percent. as we waved any word from washington about when we may or may not strike in syria. everyone waiting on pins and needles. this will have a big impact. most commodities are heavily to the upside. connell: sandra smith out in chicago at the cme. downtown almost 100 points. we have the shakeup at the white house. charlie gasparino standing by.

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cheryl: breaking news coming into fox business, exclusive report from our own charlie gasparino at a shakeup could be coming to the white house economic team. many director of the council swirling, just seconds away. the u.s. with urgent talks on syria, the west prepping for miiitary operations, mark is watching for any new details. plus, buying up power the same way you pay for your cell phone service. providers willing to offer free night and weekend deals. plus, wildfires raging several states is growin drawing properd

threatening water supply. we will take you there for a live look. first, to that breaking news, fox news correspondent charlie gasparino with an exclusive possible shakeup at the white house. joining us by phone. charlie. charlie: telling people they may soon need one of the top economic advisors. on the short list of replacements. we should point out that henry had approached the white house on this asking if the replacement is imminent. they will not comment, they will not deny it. this thing will come down the pipe in weeks or maybe one or two months. clearly people is at the white house and source on wall street with the administration.

this is a pretty big change. council of economic advisors, national council to economic advisors with larry summers, he is now the odds on favorite to be the fed chairman. other luminaries that have held this post. first with the clinton ministration, the bush years a key economic advisor. my only point is this trying to foresee some sort of white house economic policy. a lot has changed since those years. as we know, the president takes economic council from a short list of people and he leans primarily on a political advis advisor, so these jobs it is hard to say exactly where the ministration of common policies are going to go with the replacement, somewhat cut from the same mold.

although active, throwing around politics for years. i guess you could say he is a longtime economic bureaucrat. it makes people think he might go to wall street. he did advisory work for goldman sachs. cheryl: charlie, there are such high burnout in this job. we've seen this with the ministration, the burnout is very quick. can i say i have had it, going back to wall street? charlie: i cannot say whether or not for that. but this is a guy who has been doing this, and economic advisor for years. less burnout and more maybe i need to make some money. i think tim geithner turned down the job as fed chairman, we're pretty certain he was offered that job. he is actually an advisor helping the president takes the next fed chairman.

if they find something in the background check, it doesn't work for wall street. tim geithner telling people he wants to work in the private sector and earn money. that could be the thing with sperling. he may be leaving for the same reasons that bill daly left as chief of staff of the obama administration. those jobs during the obama years become almost secondary when it comes to economic policy because the president leans so heavily. she is the power center of this administration both from a domestic policy standpoint and a domestic economic policy standpoint so those jobs become less important in the scheme of things. not unimportant, but less important.

cheryl: charlie, thank you for calling in with that huge breaking news. charlie gasparino, our senior correspondent with some market moving news on the administration. we want to check in on the market. we are actually session lows right now. lauren simonetti on the floor of the new york stock exchange. syria is the situation, are there any other factors we are talking about on the floor this morning? lauren: syria is the talk right now. we are about 20 points away from session lows for the dow, which is actually the best performing major market right now. the broader market down by 1%. if you look at the volume, it is a little bit more than it was at this time yesterday, still light, 235 million shares changing hands. but you have about three stocks going down for everyone going up. the vix index at 16.3, so this is a fearful market.

i just had a conversation, he said he is actually surprised this is the reaction, it is not worse than that given the potential fallout, that is spilling over to the rest of the middle east, you can see that in gold today. cheryl: gold and oil are the two stories. thank you very much, we will see you a quarter after. we want to bring you the latest developments. pentagon officials telling fox news u.s. military assets are in position and could strike at any moment when the president gives the order although the u.s. is not likely to act before meeting with nato representatives in brussels tomorrow. john kerry saying the evidence of the syrian government use of chemical weapons is undeniable. >> what we saw in syria last week should shock the conscience of the world. it defies any co code of morali.

the killing of women and children and innocent bystanders by chemical weapons is a moral obscenity. by any standard, it is inexcusable and despite the excuses and equivocations that some have manufactured, it is undeniable. cheryl: covering the conflict from jerusalem and joins us with more. >> high, cheryl. it continues to get louder in the middle east, almost by the hour. now say they believe chemical weapons were used in this stop short of calling for unilateral military action but they need to be referred to by the united nations. syria looks to be on an island on its own only with russia, china and iran. saying wait, there's not enough evidence, show us the evidence you have any type of chemical weapons used. to gather that evidence you look at the united nations team on

the ground right now stuck in their hotel because of a security issue. yesterday they headed out, sniper bullet put into one of their cars. try to take blood samples and tissue samples from victims of the chemical attack but as of now stuck back in their hotel. united states says they do not need the united states report. we have their own evidence which we are expecting to see in the next couple of days. next on to the effects of an attack. obviously if there was an attack on syria seem it seems everybods talking with much more of pungent, taking out the asad regime leaving the counterattack measures in place including the possibility of a strike on israel. to that end lining up for guess max. they are now at the post office. ahead of a possible strike the

united states and retaliation. everybody seems to be in a watch, worry mode, cheryl, as the past when he has made these tax and threats, they just have not happened. whether he was good on the threat this time remains to be seen. cheryl: for more on this lesbian former pentagon advisor, director of the washington institute program on arab politics. joining us from washington. in other states seems to be in somewhat posiiion. we need our nato allies to back us up if we're going to make this strike that listening to what john kerry said yesterday, it seems a strike is almost inevitable. is that what you are hearing? speaker that is the direction we are going. the present has been slow to get involved in this. he has done little as 100,000 have died. now with the syrian gas attack, the president's hand has been pushed. nato is still divided on this but the arab league appears in

line and we're just going to have to wait and see if he goes to the u.n. or not. cheryl: there are military assets "in position." also that there is going to be some information, some of their investigation that will be declassified to basically make the public case that the united states needs to respond. having said that a new poll americans shows most americans don't want military action in syria despite what they are saying on the television. how has he missed ration handled both sides of the issue? the u.s. reluctance he as the military in crisis? >> the public is more weary after 10 years of afghanistan and iraq, lots of blood has been spent. the president's credibility is at hand here, i think he will show the evidence try to make a case.

there are people who will not believe it at the intelligence turned out to be that in iraq. he has to hold to this redline because it is not just a redline on syria, it is with iran watching hurtling toward developing nuclear weapon and if it does. cheryl: iran has no leadership. the new president seems to be taking a solitary tone when it comes to global issues. do you buy that or not? >> no, iran has been quite involved in helping kill these hundred thousand people in syria. while this new president appears to be amendable to talks, he was deeply involved in the development of iran's nuclear program, so i don't think there's reasons to believe that. cheryl: what about israel? that is the key ally for the united states from a business standpoint as well.

many of our publicly traded companies are located in israel. is israel under a real threat? >> yes, i believe they are. israel has been hit several times, missiles coming out of phenomenon, and they may be an attempt to drag them into this, it depends how long the u.s. strike is. wafter chemical weapons targets in syria, this may be contained. if the campaign is broader and goes after the regime, it is quite possible israel could be dragged into this. cheryl: thank you for the commentary this afternoon, we appreciate it this afternoon on the east coast. thank you very much. concerns over possible u.s. intervention in syria weighing on stocks. all major indices in the red right now. you know, i'm looking at a couple of things here, but i want to start with your position on gold.

that safety play, if you will, if there is military action. all you change your position on gold considering what you're seeing with with the international headlines? >> in the short run gold can have a short term run and a pop. you look at regards to that asset class, you have a global economy that has been slowly improving which we will be looking at gold as perhaps a quick trade at this point. you would want to underweight that in your portfolio. cheryl: that is interesting. let's talk about the overall middle east stability. it is not just syria we are discussing, it is volatility in egypt, what could potentially happen with the israelis, palestinians, lebanon, jordan. all of this not region could be a threat for the trade routes that are valuable into the europeans. is that factoring in the selloff? >> absolutely as. they contribute to the selloff with the bond market move.

fresh in a global economy within syria. it could be one or two weeks of instability on a geopolitical front. perhaps the equity market will be down 3% to 5%. in the long run the global economy should perhaps revise this market event. if you have this massive spike within oil, if this became quite extended, that would be a different situation. cheryl: from just a general perspective in your opinion do think what is happening at some issues become a problem?, supply >> i think that would be the scenario that would be really out there. that would mean israel gets involved in this type of conflict.

i am not suspecting that would be the case in the short run or perhaps even in the intermediary term. cheryl: it has happened before. on the u.s. economy side before i let you go, we're getting some economic data out. home prices raising up just a little bit. data coming out on your radar right now for the u.s. economy anything sticking out to you at all? >> out of cap next that is job number. if the county over the job number comes out with 200 plus print that would bode well for the u.s. economy. i'm not really expecting that. we continue to expect the federal reserve will taper on september, october which could move the market downward a little bit and put pressure on the financial system but albeit it seems as if the economy in the u.s. is moving quite nicely of about 2%. valuation seems to be valued at this point, perhaps one should

perhaps be more balance in the portfolio. cheryl: thank you for discussing the serious issues we are discussing today. chad, good to see you. >> thank you. cheryl: other serious news at home, firefighters are gaining ground in the battle against the largest wildfire in history. the water supplies in california, sierra nevada region are still at risk. we'll take you live to yosemite national park. utilities are turning to prepaid plans trying to move consumers just like the phone companies do. and he is here, charles payne, we will make money with him. he says now is the time to get into this particular stock. wants to take a look at what is happening in the oil market. you want to watch the spread on the brent contract. wti, domestic contract at 108, others up as well.

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cheryl: we're still looking at the dow off right now. we're about 27 points off of session lows but you're going to want to watch the market for the rest of the day. there are only two stocks in the green right now, chevron and at&t. chevron may be in little bit of an obvious trade with oil moving up. the impact on the doubt giving a healthy four points. wathose are the only two stockse have got. looking to the downside, america, down $0.26, about two points of the impact but overall is negative. let's bring in lauren simonetti's again from the new york stock exchange. tiffany's earnings coming out today. we saw some nice things in this report. lauren: typically on a normal day tiffany's would be your power mover. earlier on it was up fantastically hitting an all-time high. about an hour ago with the

broader market shares came down. it could be analyst and investors are focusing on some of the specifics in the earnings report. they raise the full-year numbers. china sales were amazing. here in the u.s. yet remember the cheaper seller items a quarter of the overall sales, that is the market where the consumer really isn't shopping. maybe the luxury shopper is alive and well, but the more middle shopper is struggling a little bit. cheryl: the luxury asian consumer. thank you very much, want to bring you some more on the breaking news from fox business senior correspondent charlie gasparino. exclusive reports today only on fox business, the top of the hour possible shakeup at the white house. charlie says national economic director sperling is likely to leave his post. no reason officially given for the departure.

they are not denying charlie's reporting. charlie said a possible replacement could be the former acting director for the opposite management and budget. more in a live report in the next hour joining lori rothman and adam shapiro. time to make a little money. there is the graphic, notice means. charles following up on a stock he recommended back in may. huge profit reports. kudos to you. charles: they are up big time on it. here's the thing, a lot of reasons i love this company and the story. i love the guy who started it, barely escaped castro, has made it big realizing the american dream. also execution has been phenomenal. this company has been finding a way to get things done in one of these stocks i talk about a lot, and the format i have been talking about special i'm doing

i'm making your market, 6:00 to 7:00 p.m. i talk about you want to find companies that are doing very well in domestic, globally, innovation and execution. topline revenues up 17%. globally they take their cue off of those. they did some things with vitamin world. innovation always has new products, new partnerships and execution. execution has been phenomenal. those are things you can see the stock is doing very well. the thing with tiffany i find, japan was strong. did you know japan, the hand over engagement rings more than we do now. that is driving sales. i think this stock is a takeover candidate. cheryl: tiffany's?

charles: absolutely. i am hanging in there. one of these key guys, i don't know about you, but i think the store here in new york is stodgy, it is not exciting, it is not friendly. it needs a complete makeover. they really have to modernize that for their whole concept. i think someone give can so thee brand itself is worth going in and revamping it. cheryl: they could do a lot if they revamped their brand. charles: last quarter they were not going to break out the new york store anymore. it was a red flag. cheryl: interesting take on tiffany's.

2011 all over again as america gets closer to hitting the debt ceiling. we now have a deadline for congress. n separate wildfires threatening homes, water supplies. we will be live for you on the ground at yosemite national park. 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) scottr ranked "highest in customer loyalty for brokerage and investment comnies." all your imptant legal matters in just minutes.

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cheryl: fire officials are saying massive 230 square mile wildfire burning new yosemite national park in california are finally gaining a little bit of ground. with the latest. claudia. >> you are right, firefighters are making progress against the stubborn rimfire. the mood can be described as cautious optimism. since it began 10 days ago this fire has burned to the 180,000 acres for now some 4000 fire crews have about 20% contained because the flames are burning in the steep, rugged canyon areas this firefight has become an all out aerosol. 13 helicopters and six fixed winged air tankers are making continuous drops of water and fire retardant.

the ground crews not on the front lines are setting backfires and more. >> they are cutting line, using all dozers to put a barrier between the fire and any structure that may be threatened. >> officials say the rim fire has destroyed 31 homes and 80 other outbuildings. three minor injuries reported as well and the cause of this fire remains under investigation. cheryl: is the ash impacting water supplies? >> the leading edge of the fire has now moved to within about a mile or so of the reservoir located outside of yosemite national park. the main drinking water supply for millions of bay area residents. that's drinking water comes from the duct of that artificial lake in the reservoir so it has not impacted the water quality yet. authorities are scrambling to

fill other reservoirs with the clean supplies before sings to the level of the intake valve. officials don't expect any disruptions but they are not taking any chances either. cheryl: especially northern california. thank you for that live report. treasury secretary jack lew says the clock is ticking on america reaching the debt limit and just a couple of months. rich edson is covering that story. certainly this is closer than we expected, and i guess the number more than we expected. >> congress has until about mid-october, after that lawmakers raise the debt ceiling or the u.s. faces an economic crisis. in a letter to congressional leaders he writes protecting the credit of united states is the responsibility of congress, it is only congress who can extend the borrowing authority. in response house speaker john boehner's office says the debt limit remains a reminder under president obama,

washington has failed to deal seriously with the debt and deficit. i was turned into weeks before lawmakers address the debt ceiling had to avoid october 1 government shutdown. one analyst says, it has plenty work to do in very little time. >> we are way behind. the public is wanted to have all these spending bills done before we went into the summer. of course that went away. >> republicans are trying to find out what policy they want to attach to an increase the debt ceiling. house republicans have asked for tax and entitlement reform to lang obamacare curbs on relations, paul ryan's budget that balances in 10 years and approval of the keystone pipeline. the ministrations offer, officials say they refuse negotiate over the debt ceiling. back to you. cheryl: rich edson, thank you very much.

utilities are pulling out all the stops to rue your business. free nights and weekends, free power. we had the details coming up for you. and try and compete with the big boys as large hotel chains open. how do the true small brands compete? we will ask.

lauren: i am lauren simonetti on the floor new york stock exchange. wouldn't you know jcpenney is the best performing stock on the s&p 500 right now. let's show you the stock behind me, up 2.7%, volume is extremely high. six and a half million shares.

here is the news, buckingham, they say they're maintaining their buy ratings, $20 price target and they encourage investors to add two positions with the stock sales removed the major overhang. jcpenney is a winner after he said he was dumping his shares yesterday. the other movers we are watching are all moving on heavy volumes. up at a new time high. royal caribbean is down. big volume like i said. and dfw hitting and new high up tremendously on earnings. they raised their guidance. cheryl: appreciated. we want to bring you more on the breaking news from fox business senior correspondent charlie gasparino with an exclusive report at the top of the hour on a possible shakeup at the white house. charlie says gene sperling says he is likely to leave his post, no reason is being given for the departure.

the white house not commenting on a possible sperling departure they are not denying the story either. a possible replacement could be a former acting director for the office of management and budget. charlie will have more in a live report joining on "markets now." getting creative when it comes to getting your business, taking notes from phone companies offering deals like free nights and weekends, prepaid plans. they soon as they went for the consumer but not for the investor, which is who we are and focused on here. the wholesalers we're talking about. >> . 13 states plus the district of colombia the next 90s deregulate it the energy portion of the electric utility. pretensyour transmission distri. the enron bankruptcy halted

trading in other states. but customers can choose their electricity provider. they cannot determine the transmission provider. you have robust cap edition for those customers because wholesale power market were very large companies like first energy owned, huge fleets. cheryl: publicly owned companies we watch and many may own the stock's. >> they have aggressively been innovating to pursue business because wholesale power prices have been very weak. for two reasons really. natural gas prices have come down a lot. gas is sort of the marginal fuel for power. the other thing is the increasing encroachment of renewable energy like wind and solar further depress the margins.

cheryl: the revelatory story, doesn't that hold it this movie's guys are making because it could be good for investors, shareholders of p&g energy, things like that. speakers 13 states with the highest appellation. texas, california, the midwest, new york, new england, the mid-atlantic. so there are a lot of market cap involved because there's a lot of population with capital investment in those states. even in the regulated states where your power is that, still causing regulatory issues with how people pay for power. cheryl: let me ask you about the deal side of this. free power for the weekend, nights, doing laundry on the weekends. that seems good for the consumer but not really a win for the companies.

our customers getting into this, are they biting on the dealmaking basically what is happening in the 15 states? >> it depends. one third of what they pay for gasoline. the savings even if you're getting 10 or 15% savings for some consumers, that may not be big enough enticement. take advantage of differentials in demand. night and weekend not a lot of demand for power. they can afford to give away some free power on the night and weekend when power is not very expensive in order to make their money during the week and during high times. >> les populations, but very interesting take from you. thank you very much. it has been five days since the

flash freeze of the nasdaq and still no answers for the bigger point continues. today another black eye for the exchange. we will explain. checking in with the hospitality group next. we are going head-to-head with the likes of marriott and hilton. joining us in just a few moments. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

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>> i am as she webster with your fox business brief. former jpmorgan chase trader wanted by the u.s. allegedly falsifying bank records to cover up $6 billion in trading losses in the london wales scandal has now turned himself into spanish authorities. he was released after a court hearing saying that he would fight extradition to the u.s. here at home an accordance the later stomach latest case-shiller report, home prices rose in june. prices are up 2.2% from me on a non-seasonally adjusted basis. economist looking for 2.3% year-over-year. consumer confidence index rising august with optimism hiring and wages could increase. up from july's revised reading of 81 near the june reading of 82.1. that is the latest from the fox business network giving you the power to prosper. but yet you have the pain like thousands of needles sticicking in your foot.

it was progressively getting worse, and at that point i knew i had to do something. once i started taking the lyrica the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don'drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. ask your doctor about lyrica today. it's specific treatment for diabetic ner pain. cheryl: with labor day weekend right around the corner, people

are looking to travel. my next gas company is the third-largest boutique boutique hotel owner in manhattan and standing his ground against stiff competition. welcome. this is a big weekend for you. some concepts have been picked up by the major chains. do feel threatened by the fact they will try to run with the idea as well? >> we welcome the competition. it is affirmation of the business plan. as individual travelers seek individual experiences, we really find the boutique lifestyle brand really caters quite well to those. cheryl: i think high-end, high price. is that still the take over all or is it trying to reach out to the mid-level consumer? >> there are over all hotels. wwe're in some of the largest

countries. the rates with the market. cheryl: they are all trying to get into that space except for france and many may not know of them. you have this extended stay, people are living more long-term basically in your hotels especially manhattan, which i guess i can understand. >> we are seeing extended length of stay as some of the luxury independence, especially with the foreign traveler. 30% of the business non-us traveler, and so we have seen the length of stay extended considerably as we gain traction in the states. cheryl: is that really are core customers, international travel? business we have seen pickup in the u.s. >> we are an operator and owner of real estate and hotel

operator so we seek to invest in the top. chicago, d.c., with focus on the west coast as well from real estate perspective we really like the market, the supply and demand fundamentals and it does play well for the lifestyle traveler. we see the travel experience much more interested in exploring the local market if you will or the local neighborhood in the larger cities and that is where we are getting a lot of traffic. cheryl: the delivery service, treating that customer with local online grocery delivery service in new york, people can do that in other cities, are we seeing that happening? >> an important part of the deliverable to the customers making sure we partner with local operators across the portfolio. your chocolate may show up from the local chocolatier. it is an extension of what the travelers are asking for these days.

cheryl: thank you very much, appreciate it, good to have you on the show. we want to bring you more on the breaking news of the hour from fox business senior correspondent charlie gasparino. an exclusive report at the top of the hour on a possible shakeup at the white house. the poor in a national economic director says he is likely to leave his post, no reason given for the departure. the white house is not commenting, but they are not denying hissreporting either. a possible replacement could be a former acting director for the office of management and budget. why do we having a live report next hour with adam and lori rothman. take a look at gold, the metal is gaining ground. let's bring in phil flynn from the pits of the cme. it is always interesting. saying this is a short-term trade on gold because the middle

east instability. what do you think? >> i don't think so. it was only about the middle east i could agree, but there is a lot more going on to the gold market right now. take a look at the debt ceiling, we are supposedly going to hit it. people are going to buy gold. another reason, everybody was telling us the tapering would be bearish for gold, the dollar will get stronger. what we are finding his people would want gold in the emerging market. if you look at what is happening with the currencies since we've talked about tapering, the stock market is getting clamped. maybe you're looking in the wrong place, you should be looking at turkey or india. those countries benefited from a hot dollar will not get them anymore and the wealthy in those countries will try to control that wealth. one of the ways to do it is by buying gold and silver.

cheryl: phil flynn, live in the pits of the cme. thank you. time for your "west coast minute." california is embracing electric vehicles, especially tesla. the model s outsold others in the first half of 2013. california new car dealers association reported 4714 were bought in california even beating the ever popular audie. costing 60-$100,000. take a look at the stock. $167 for this stock. when it comes to owning a small business, phoenix, arizona, was the tenth top city to open a small business in. several texas cities were ahead of phoenix due to the fact no state income tax.

san jose, california, made the list with a ranking of number six. nevada ranks last when it comes to another criteria welfare spending according to the census bureau. good news the state budget. $855 per capita on welfare which is half of the $1550 national average. that is your "west coast minute." five days later, we still have no answers. we will go inside the blame game over the flash freeze that happened over at the nasdaq. we will be right back.

in >> 5 days and there.

paralyzed nasdaq listed thoughts for a 3 it did three hours no one has the answer, is this a case of finger-pointing or confusion, get the bottom line with liz macdonald. noaa and still. liz: it is finger-pointing. i will tell you something, the sec's mary jo white is crackingg the whip. she is calling that meeting on september 12th. we reported throughout the trading day what was going on, there were issues between archipelago systems, electronic exchange connecting to the nasdaq system's processor, and so the fact that the still finger-pointing is really bad because it was a high-volume, high volatility, and the flesh freeze 5 the ago. >> it was your reporting that was exclusive and look at the

intraday at yahoo! that day, that was one of the signals if you will, issues on the exchange and the actors that, everything was halted. the c e l a lot nasdaq listed company furious, i am thinking of going there. liz: if you are and as that, here's what they're worried, breathing down their necks, direct add merger, we have the twitter field coming. they need to get listings over the to keep the listing going so that is why there's a lot of finger-pointing. connectivity issues we are hearing according to people close to the matter is they kept trying to plug into systems, that overwhelmed the servers, and nyse blaming as that, saying this happens all the time. and that is why mary joe wright really cracking the whip to get

to the bottom. cheryl: we are going to talk about this for days. thank you very much. all eyes are on syria today. u.s. action is imminent, likely going to be thursday, tensions remission high-end markets are lower as a result. housing market prices up 4% year over year. we will be talking to especial must, the sands of time, native blast. and an effort to explain disappearing polk line. that is coming up in the next hour. for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use,

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ashley: welcome to markets in all. lori: closer to america's military response in syria, that largely was striking down stocks, the dollar is off 127

points, will prices skyrocket, the latest on the unfolding drama in syria with debbie business secretary of defense kitty mcfarlane joining us to talk about what president obama should do about it now. ashley: home prices omri's the the kissel report is a look in the rear view mirror. what does it mean in the keys of rising interest rates? lori: the above administration's economic team, charlie gasparino's exclusive reporting and who could be next to join the lineup. dennis: is not your father's would remark and was your father's it senior chinese communnst official or russian oligarchic. a new brand of luxury emerge in as global wealth disperses to less than 1%. cheryl: sandra smith is at the cme has oil jumps 3%. let's begin with lauren simonetti at the stock exchange where the dow is down big.