connell: we have a lot coming up. and rummy saying president obama's lack of honesty has put his second term in peril. edward snowden has this new manifesto that is out from russia, calls for reform in surveillance justify his leaks of classified information. we will see if he agrees with him on that. and the changing landscape of designer fashion. the top names in the country, here with us this hour to talk about that. all that and dagen mcdowell this hour on "markets now." all right. dagen: we're giving you a makeover. connell: that would be great. get him to work on that.

dagen: we put you in like a camo jacket. the market slight losses here, we are also getting news on that settlement with the justice department, nicole petallides has you covered at the new york stock exchange. lauren: the dow down to the downside. the nasdaq and the s&p squeezing out some gains although very minimal. talking fractional news for the nasdaq and the s&p with the up arrow's up nearly two points as the s&p is up .34. a third of a point. very small moves despite the fact everybody still continues to believe you will not see any tapering from the fed anytime soon. some of the steel stocks doing very good, hitting new highs. watching blackberry hit new lows.

it has been a mixed bag for the dow jones industrials. those will be some names to watch. the trend has been great. back to you. dagen: thank you, nicole. connell: we saw that news scrolling at the bottom. the settlement you will hear more about throughout the day. healthcare.gov backup, the extended maintenance over the weekend, will the website ever overcome these technical hurdles and make obamacare successful long-term? dagen: don't you want to shop over the weekend? isn't that when it should be working with mark rich edson has more details. rich: it will be down from 1:00 a.m. until 5:00 a.m. so if you are up in the middle of the night not expect to sign on to healthcare.gov. congressional committees run by republicans on the hill are subpoenaing documents.

when they were encouraging people to website wasn't working to call on the phone or submit paper applications, it really didn't matter. these documents are meeting notes from officials, one saying to instruct the navigators, helping fight insurance to use paper applications rather than go through the call center. later on they acknowledged they all go through the same portal, the phone calls and the website that wasn't working. allowing people to feel like they're moving forward in the process and provides another option at the end of the day we are all stuck on the same queue. this law and this system needs this system to work. >> there is a potential death spiral if we don't get enough people signed up. we have a couple of years to get this thing up and running and working. my firm belief, everything we know from massachusetts is we will get those people.

rich: november 30 is the deadline. a number of democrats in the senate more republican or conservative states pushing the administration. he better get on and fix this as soon as possible. dagen: calling him on the phone saying could you have picked a better phrase? >> it happens to all of us. dagen: what, honesty? rich: exactly. connell: you heard him talk about massachusetts, or referring to it. mitt romney had comments on the whole fiasco. let's watch that. >> you have to tell the american people the truth and when you told the american people that you could keep thei your health insurance if you wanted to keep that plan, he said that time and again, he wasn't telling the truth. i think that fundamental

dishonesty has really put in peril the whole foundation of his second term. dagen: art laffer is here under president ronald reagan. from a political standpoint, these people that governor romney was referring to less than 5% of the population, it could possibly be they won't sway an election. >> i think it will turn against the democrats but i love your selection of the word death spiral. that was good. dagen: i was just repeating what ezekiel emanuel said. connell: is very much bigger problems than the tech issues? >> it is amazing they haven't been resolved. this should have been done easily. there are two big problems. people like choices and like different things, one-size-fits-all. it won't make people happy, the other one which is deadly, i think is if you give away valuable resources for free,

people are going to over consume them and you are going to have it fall under its own weight. i can eat all i want for free. i'm not going to overeat, i'm going to the caviar until i throw up. that is what they do. dagen: the over consume health care in the medicare system. people don't really care because they are going to be long gone before that enters. >> you're talking about my group, my age group. i am teasing you. dagen: i have this argument about my parents. you are consuming resources that you never paid for. talking about medicare. >> this thing is much, much bigger. it really does. said your co-pay is $0.05 on the dollar. what fills that is if i could buy my groceries the way i do my health care, i would eat really

well. so would my dog. this is a huge portion of the u.s. economy. to give away on the margin everything for nothing it's just can't work. connell: let's talk about the economics of it for a second. the conversation we had, in terms of advising the president, and the other for mitt romney. the argument is look at what mitt romney worked on in massachusetts, it works. >> i don't think it does work very well in massachusetts. it is one state with one set of policies. that i don't think makes sense, but at least it is just one state. when you are combining hawaii with alaska. you've got all these diversions and what people want. you cannot make them all happy. that is why the market works so

very well, they are transparent, people can design what they want. and people have a right to be wrong. they have a right to not get enough insurance or get too much insurance. dagen: i think people like free better than choice. if you look at "the new york times" today, a large piece of millions of people could get their premiums completely covered if they take the lower-cost plan just by the subsidy. that is a lot of winners for people not having to pay out-of-pocket, they will like that. >> the government does not create resources, it redistributes resources. for everybody who gets bailed out of a problem, there is somebody else who is paying for it and that is the whole problem is you have the economy where the people who pay for it are not consuming it on the margin and that is a huge tax wedge and it will drive it straight down.

dagen: the subsidies will be provided before the sick will be subsidized. there are two ways to get paid for it. connell: it was nice to have you today in the studio. >> it was nice to be in the studio. dagen: get your butt up to new york. >> i love it. connell: get the tape. thank you. >> thank you very much. connell: the markets today. slashing some 49,000 jobs due to a slow mortgage business named the top job cu cutter for the mh of october. those are numbers in from the outplacement firm. but what is the risk to other job creators and how will it affect your portfolio? let's talk about that. his investment strategist, the chief trader there in washington, d.c., where all the action seems to be lately. what about these job cuts in the financial sector, what is the

effect? >> we should not be surprise at all. this is what has been happening for most companies and for the financials over the last two years. companies are growing earnings without growing revenue so how do they do that? i have been cutting back, getting the low growth, low yielding and low revenue environment. we will see more of that going forward, cost-cutting and higher earnings but lower revenues. connell: thedea of do more with less is not exclusive to financial service companies. you look at how they're doing today, for the most part they are higher. you mention something that is key. this search for yield, everybody wants to find it, it is hard to find with the rates as low as they have been, the treasury market so where do you go now? >> unfortunately my best bet is what everybody else is best bet also. the equity market.

that is where all the money is going to. are we concerned? are we concerned with floating down and economy? maybe. or concerned with tapering of qe3? there is no place to go but the equity market and that is what we are seeing. everyone is looking at and watching it waiting to buy the pullback and that is what we are seeing. this uptrend is in effect. connell: you think that is the thing that finally slows down the stock market, and if so, when we finally see it? >> that is my bet. it is going be taping. the earliest is in march. that is when janet yellen's first meeting will be. most people now are expecting maybe tapering not until the second quarter of next year.

so we are still the sweet spot. the fed is in their support and market. if the kind as well, companies are making money, still higher stock market. so either way down the road the market goes higher. connell: best game in town is basically the argument. pretty much flat down a few points. thank you a lot. >> thank you. dagen: airbus wants you to have a little bit more room. the jet maker calling for industry standards to the size of passenger seats. connell: and the nsa leak or making his case for intelligent leaks. making his case for the leaks. we will see if the judges by the argument argument coming up. dagen: the importance of a brand name never more important than for men. and take a look at the oil market, gas prices means more money for stocks. and things of that nature.

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connell: going to go back to the call before we talk about big airline seats. nicole has two deals for us today. the potential takeover for time warner cable. how about the stocks? nicole: one is a big deal. down fractionally. try point homes is looking good up 8% on this news. what you have is a $2.7 billion deal, and it gives them access to other areas including california taxes that makes one of the largest homebuilders. watching charter communications waning a bit trying to figure out how to do this bid, put it together in order to woo those shareholders of time warner cable. a deal could come as early as the end of the year. time warner has larger market value of the two at 34 billion versus chargers 13 billion. back to you.

connell: nicole, well done. one aircraft maker calling for an end to the industries shrinking seat syndrome. in a new study from airbus car passengers sleep a 33% better on a seat that is 18 inches wide versus one that is slimmer than that. the company says i is always usd 18-inch seats and his aircraft and client her industry to get on board to adopt this comfortable standard. the average airline seat is 17.2 inches across the seat. need a little bit bigger. dagen: this gentleman is a friend of this program and we have known him for many years. we're talking what the head of fixed income at vanguard. he has announced his retirement, he joined that firm in 1981.

were you even born then? dagen: yes, i was born. i can turn around the age jokes, if you want. dagen: the overseas three quarters of a million dollars. he says in march of next year gregory davis currently the company's chief investment officer will take the position at head of fixed income in vanguard. connell: wa will he had to do interviews with you now? dagen: bob we have from now until march. connell: seems like a nice guy. very smart. dagen: and he is very tall as well, super tall, 6'7" maybe. connell: maybe he thinks there is a wand market bubble. the argument on both sides of that. dagen: judge andrew napolitano talking about edward snowden's manifesto. were his actions justified?

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>> i am lorne greene with your fox news minute. the trial it is proposed mohammed morsi began today but was quickly dismissed. morsi says those who overthrew him should be the ones facing charges. his trial resumes in january. :-) nationals have been charged in connection with the deadly terror attack on the mall in kenya. 57 people died in the seas. they claim response ability for the attack. the lax shootings remain under heavy sedation as he recovers from four gunshot wounds. it accused of opening fire at the airport on friday killing a tsa officer and wounding three others. the fbi says the gunman had a

handwritten letter outlining his plan to kill multiple tsa officers. and those are your news headlines on the fox business network. now back to dagen and connell. dagen: a great stock market rally this year a bubble in disguise. connell: who is talking about bubbles this year? liz of black rock thing we are in bubble territory. he has a note out there saying it is getting frothy, man. they are seeing massive fund inflows into the stock i have not seen since the year 2000. that is now the debate, are we in double territory? is the market making a screeching u-turn?

we know investors are doubling down on cheap money coming into the markets but when you look at the p/e multiple come it looks like the year 2007 and not 1999. it is trading at around 16 times earnings versus 32 back in 1999. we know the third-quarter profits are coming in weeks, not as strong as expected and the revenues are coming in even worse. basically what we're seeing is the company's are cutting costs and buying back stock's but investors are doubling down, you cannot have a selloff without all of the cash chasing the assets in the stock market. i'm going to send it back to you guys. dagen: quickly, stuart brought this up briefly, talk about is there a bigger bubble and treasuries in the bond market? if that one purse, with that automatically cause the stock market bubble to burst? liz: we had that debate when we

saw the quantitative easing launch that we are heading a bond bubble. coming across the radar screen on wall street yes we are in a bond bubble. that talk then died down and is taking up steam again that we are in a worldwide government on the bubble and how they manage that one is really serious for both sides of the political aisle and for stock and bond investors of course. dagen: thank you. the total refund was more than $33 billion in redemptions. so for this year through october. it is a huge amount. something like that. dagen: bob has worked his entire career during the bull market and treasuries. is this the end? the sign of the bull run? he is like i have got to get out now while the getting is good.

judge andrew napolitano is standing by to talk about edward snowden manifesto. connell: the famous designer coming in. he will talk about the importance of a brand name in his industry. some new things going on with him coming up. satan for that. the market down a little bit today but look at the individual stocks, winners on the s&p 500. alcoa in that group. @?? this is the quicksilver cash back card from capil one.

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dagen: at the half hour, s is wt is coming up on "markets now." we talk about edward snowden's latest excuse, why he thinks he was justified in leaking classified information. famed designer has name and labeled part of a big shift going on in the world of designer fashions and menswear. he is here to talk all about it. and he would love some mickey d's during his food run. connell: we will talk about that. and we'll talk about fashion. men's warehouse firing back at the unsolicited bid for the company. nicole rejoins us. nicole: we thought there was a possibility of men's warehouse and joseph a bank getting back together. now the offer is just too low. the first is men's warehouse

response to the letter of joseph a bank saying men's warehouse board of director concluded it is not in the best interest of shareholders to provide access to information. it is just too low. the ceo is confident the strategic plan will deliver more value to the shareholders than the inadequate highly conditional proposal bid thanks the support we have received. we have been watching, down to under 30% --dash two.33%. i do not happening unless there is a sweetened bid. maybe they can reconsider. connell: thank you, nicole, we appreciate it. dagen: men's warehouse bought the label started by famed

designer reigniting the brand with its creator. connell: here with us right now. chief creative director for the men's warehouse. did you talk about anything the call was talking about? >> i am on the creative side. i leave that to smarter people than i am. connell: we mentioned earlier talking a a brand in fashion. >> right now we're trying to shift the products we make in massachusetts, we produce 250 250-300,000 tailored garments per year. just starting to shift those and developing a new heritage label sodas harkening back to what i really launched early in 1988. dagen: how much do you have to change the designs to spur interest in them and how much is

men's fashion changing from season to season, year-to-year? you have to refresh to keep people spending. >> menswear is much more revolutionary. if a guy buys a suit he will get three or four years out of that suit. great fabric. what we have done is we have an incredible construction the way we make the suit using all the italian piece goods. we are offering more valuable quality for the customers are benefiting. connell: do you think it was a mistake or confusing episode to go through all these brands were changing, people don't know you are the famous designer. is he making what i am lying? >> i think for a period of time there was a disconnect between the brands and the designers.

what we have done is thanks to men's warehouse we brought me as a designer back to the brand i started and back the same factory in 1987, 1988. we are bringing it all back together. so the people know there is authenticity behind the product. dagen: are you worried there is a disconnect between your menswear that you are designing and making in the men's warehouse brand? again, something to do with men's warehouse. it's just sounds like a fire sale. >> it is interesting because if you look at the three words, men's warehouse, has a whole different connotation because it is about menswear. not a factory. it is going to have a new personality. the product is king. the product makes the label and the label doesn't make product. if you offer great product,

great service, great quality they will come in. we won't get too deep. i think the whole idea is really to offer great alex and great service. i built my career on making product and being proud of what we sell under my label or any label i design four. guys will trust you. dagen: how do you make a really good looking suit. operation of men who are getting fatter? i am serious, i am totally serious because when you are slim it is easy. >> you don't buy a suit because it is criminal or not trim, you buy a suit for your body type. a lot of younger guys who are bigger, built with bigger shoulders, so we have been designed suits for a guy that is

trim fit or guys that are little bit fuller. all about the shoulder and construction. connell: i was wondering to see if they had any video in the matchup to your question. dagen: men always buy suits that are too big, right? >> even a bigger guy is buying a suit without as much room. connell: things have to fit because you wear something that doesn't fit, you look ridiculous in general. speaker that is right. the whole idea is it all starts with the shoulder and the chest and how you make it. >> if i did that it would not happen. >> it works with my hair. i think men are learning how to make patterns together, but it is not that complicated.

an easy way to go and you are never going to get in trouble. dagen: i always think you dress very tweedy. you wear a lot of tweeds and heavier wool. >> 's image of my brand has always been the textile, the fabric because a lot of times they will buy very basic, very flat, very safe looks. what would you do to him? you watch or listen to don imus every day. >> i think you have to dress appropriately for what you do. you should not be wearing what i am wearing doing what you are doing. connell: you should not be wearing what she is wearing. speedily idea if you are going out the weekend, maybe put on a turtleneck, you should do that. we should absolutely do a makeover. we are going to do a makeover.

we're going to do a makeover. dagen: he makes the suit jackets. dagen: saw him and said you look amazing. connell: we have to look amazing. dagen: please come back. connell: come back. more trouble for blackberry, which has been an absolute mess. shareholders punishing that stock big-time today. dagen: and edward snowden laid his excuse. the former contractor now leaker trying to justify his actions. connell: and a big plug for

mcdonald's eating chicken mcnuggets like crazy. with that, although stories coming up. the yield earlier, 2.6 today. we will be right back. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

>> i am lori rothman with your

fox business reef. on the economy we learned factory orders jumped 1.7% in september matching estimates. according to the commerce department, lick it was driven by 58% jump in demand for commercial aircraft in september over august. johnson & johnson will pay more than $2.2 billion. selling investigations into the company's marketing of antipsychotic drug and two other drugs. u.s. says they promoted the drugs for uses not approved by the fda or covered by medicaid. capital advisors have reached a plea deal with u.s. prosecutors. the hedge fund group expected to agree to pay a record $1.8 billion in penalties and plead guilty to insider trading. it will be announced at 1:00 p.m. eastern. for now that its latest for the fox business network, giving you the power to prosper. d them sho. we learned a lot of us have known someone

who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. connell: all right, we are back

moving on to talk about snowden. is the manifesto for truth? the title he put on his manifesto published in the german magazine. dagen: the usefulness of the new public knowledge for society is now clear because reformed politics, supervision and laws are being suggested. let's bring in fox news senior judicial analyst andrew napolitano who says you agree to be at >> i agree that what he did was an act of moral courage and heroism. i believe there are legal defenses to the charges of espionage against him. i don't agree he will get from the president of the united states because the administration is furious that it is spying on everybody from itself, spying on the president of the united states to the pope to the head of the united nations to every american and every person who uses a cell phone or a landline or a text on

the country. i don't think they are happy that has been reviewed. connell: it was shot down by just about everybody in the intelligence apparatus over the weekend. >> basically who wants to tell them what they did wrong. in order to do that he has to come here, and to come here yes risk getting arrested. connell: what about the legal arguments in his defense? a lot of people said he is guilty. speak other statutes to protect people who leak information about the government when they are doing something wrong. he is a classic whistleblower. his problem is the extent of the government violating the law was so huge, so enormous, so gargantuan at the highest levels in the government like the president of the united states of america that he is paddling upstream.

connell: the existing law and what have you. or you think they were? >> of course they were. nothing a constitution permitting even if federal judge for these blanket general warnings the nsa got. the constitution says a warrant must describe the place to be searched or the person to be seized. a general warrant offers the bear to search what he wants when he wants for whatever he wants exact reason we have a fourth amendment because british soldiers used to show up at our front door with general warrants. dagen: isn't the general irony is he has asylum? and they are spying on him. >> it is in one of the most repressive places but it enables putin to put his finger in president obama's eye and to capture world headlines by doing it. look, snowden was committed to keep secret with what he learned and the other two defend the

constitution of the united states. when they conflict with one another, what do you do. that is what he did. connell: a good defense lawyer here. thank you, judge. dagen: keeping eyes on blackberry hitting a new 52 week low after the bid to take the company private fell through. how low can the stock go? investment of a billion dollars. >> i cannot give a you an idea f where the blackberry stock will go, but how we would trade it, just because you were the first to the market does not mean you are going to succeed and companies can move from one place to another through bankruptcy proceedings or other

places taken over the best of the patents they have. blackberries whole situation was an interesting play for those investors who were taking their shot at some value to the company. it is how you access that a value and traditionally those who hold the debt will have access to the value more so than the equity investors. dagen: it was good to talk to you. we will see what happens. connell: if you like chicken mcnuggets, that is probably the one thing. but he loves his mcnuggets, this guy. dagen: take a look at the nasdaq. weekdays are for rising to the challenge.

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connell: you know who he is, fastest man alive and now you say he may have a new title bid downing the most mcnuggets in 10 days. he is a new book out, "bolt, faster than lightning." he claimed he ate 1000 chicken nuggets in beijing. according to mcdonald's nutritional information, there are 47.5 calories in 3 grams of fat in each nugget. that equals over 47,000 calories, 3000 grams of fat but don't get any ideas, you will not be bolt. that is the last time i had mcdonald's chicken mcnuggets was also in beijing three years

ago. when i was there, whenever, 2010. was very hungry that day. dagen: i am a vegetarian and mcnuggets are delicious. you see these people eating, they are done. they stop competing when they enter regular adult life and they get fat. we enjoy it. commodities drop into a four-month low led by losses on oil and gold. there is more trouble ahead. connell: sandra smith. sandra: the commodity asset class itself has been beloved by hedge fund the past several years and the price is just about everything going higher. that is being called into question based on the fed's next move.

hitting multi-month lows about four month lows you were to look at it as a group. that is leading the decline, gold of a few dollars in the session, it is trading at multi week lows hovering right around there. back down again, 11 pennies again. going back about june 1 last time w we've seen oil prices ths low. not only is there speculation that if the fed curb stimulus you would see weaker demand for the raw materials but there are already some things that is showing production way up surpassing amount of these materials actually using all of the very bearish factors snow we have the commodity powerhouse, goldman sachs weighing in and will flatline, their words over the next 12 months and they say they see significant downside

opportunities in gold, copper, soybean. agricultural prices hitting multi-month lows, home prices are down, so something certainly to take note if you have commodity exposure in your portfolio as far as stocks related to those commodities take note the big investment houses are very bullish right now and that collectively is weighing on prices as we start the week. connell: good stuff from sandra. in chicago today. dagen: i know you're still thinking about the mcnuggets. connell: you don't ever go to mcdonald's, do you? dagen: coffee. just for the coffee. you mentioned china though. is the u.s. is second to china in the world economic leader many americans think just that. startling details from a new poll coming out on the next hour of "markets now." connell: eric schmidt is enraged. calling it possibly illegal.

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>> the key thing that the president is trying to get away from, and that is that he told people he could keep their insurance, and that was not the truth. and whether you like the model of obamacare or not, the fact that the president sold it on a basis that was not true has undermined the foundation of his second term. i think it's rotting it away. >> they will fix the web site, i'm confident of that. if they don't, as delaware value patrick said, that's another story. but when they do, people are going to find there are good deals to be had that they never had before. cheryl: the role of obamacare ruining the president's second term agenda or saving it? be i'm cheryl casone to take you through the next hour of "markets now." is it too soon to judge obamacare? we want to know what you think. tweet us your thoughts, and we've got our monday headlines

panel on tap to join us with their thoughts as well. blackberry a is off the market. the ceo is out, you will not believe how much his exit package may be worth. we've got the latest details for you. and is the u.s. second to china as the world's economic leader? many americans think we're already number two. startling details from a new poll coming up in the next hour of "markets now." ♪ ♪ cheryl: dennis, you're on the blackberry story today, and we're still just in the last few moments getting more details on not just the company's demise, potential demise, but the ceo's pay package. dennis: yeah. they ousted him this morning. we were expecting to have this buyout announcement that fairfax financial was going to go ahead and do a buyout, and suddenly, no, they're not, they're going to raise a billion dollars

selling bonds to that firm, and this guy leaving after they -- this is one of the worst tech ceos in recent memory. but now we're going to go to stocks now first, every 15 minutes, nicole petallides at the floor of the new york stock exchange. nicole, stocks are kind of timid here. blackberry getting hammered. >> reporter: let's take a look at the major market averages. the dow, back and forth action, not too far off the unchanged line. the dow right now is down one-tenth of 1, a drop to 15,601. check out the nasdaq, on the other hand, looking up a little bit here, up one-quarter of 1% sitting at 3931 and the s&p up 2 points at the moment. as you noted, we're going to continue to watch blackberry can which this year has been under pressure, down over 40%, down the next couple of weeks as they bring in a new ceo and basically say we're not for sale anymore, that bid they were putting together over at fairfax, they weren't able to get the financing. new plan for blackberry, in the

meantime, stocks hitting new lows $6.40 a share. overall great moves for steel stocks, moving to new highs, so that's good news for the bulls out there and some of the stocks we'll continue to watch as well as some mergers and acquisitions happening this monday. back to you. dennis: thank you, nicole. cheryl: well, the problems continue to mount for obamacare, but even with the web site plagued with problems, you can still go offline, right? >> even as we redouble our efforts to get the site working as well as it's supposed to, we're also redoubling our effort it is to make sure you can still buy the same quality, affordable insurance plans available on the marketplace the old-fashioned way, offline. either over the phone or in person. cheryl: not so fast. a new report showing the white house knew there was no benefit to go through paper enrollment, it all goes through the same problematic system. so is this just another example of the failure of obamacare, or

is the american public and maybe the media judging this plan too soon? we've got adam shapiro joining us, rich edson in d.c., sandra smith in the pits of the cme. rich, i've got to ask you this one first, you're in the middle of washington where certainly obamacare is the story, but are we jumping to conclusions about the failure of the plan overall? >> reporter: well, there are months that people will have and the administration does have time to get this going, and this is going to be a years-long process. i think the real damage for the administration might not necessarily be the rollout, it's just the way it almost feels deceptive, that, yes, the exchanges are going to be ready to go on october 1st, they knew well before then they weren't going to be ready to go. and then there's this idea that, well, you can send in paper applications, and you can call by the phone, but now the notes show that the administration knew all along that wouldn't be a more efficient process. so as this goes on, i think the problems become the administration's handling of it and not necessarily the obamacare glitches which, hey,

if everything's working in the next few weeks, we'll remember the botched rollout, but it won't be as lasting as some of the deceptive things people are hearing. dennis: i think the question is whether the web site is merely a technical problem or a sign of much bigger problems in this entire program. the worst thing that happens is that we get 40 million new people to sign up, and they start utilizing the care of the system, and the costs will just balloon. >> reporter: it depends on who you sign up, of course. and, it's -- and this is an issue with the law. it is the $95 a year penalty for a young person who has really no medical problems, doesn't really use doctors, doesn't have insurance, doesn't really want insurance or wants a bare-bones plan, are you going to get them to fork over serious money to pay for insurance premiums when they can just pay a penalty and not even have to if they don't have a tax refund coming to them. cheryl: i want to take this to adam, we're also finding this new report from mckenzie and company that up to seven million people may be eligible for free health care under the bronze

plan. that's not being discussed because that could be another black mark for the administration. >> and will get subsidies greater if they were to go with the bronze plan. the simple question, is obamacare a failure, and from the standpoint of signing people up for insurance, the administration will say, no, we're going to have millions more people. but as dennis pointed out, controlling the costs of medical expenses, this has not done that. and what you hear people saying is that the pace of growth of medical costs has come down a bit, but it's still exceeding what would be healthy in an economy. massachusetts still has the greatest dollar amount of spending per person, and they have a version of obamacare. so this is not going to control medical costs. the question will become this a couple of years how do you extract everyone from it if they have to revamp? cheryl: sandra, we've got all these reports out, but still, are we jumping to conclusions about the success of the overall plan? >> reporter: no. the american people continue to

lose trust in this administration when the games -- the rules continue to change in the middle of the game. by the estimate of one economist today, 129 million americans will not be able to keep their private health care plan if they like it once obamacare is completely implemented. this is not what the president and his administration were promising. they said you'd be able to keep that. when the american people start to see that what they have been told all along is not becoming true, they continue to lose confidence in this entire proposed health care law. so i think that's what's happening right now. people have all the ability in the world to judge this law at this point because it's affecting them already today. cheryl: well, they're going to be judging it january 1st, that's for sure. another big story today, guys, twitter set to begin trading thursday on the new york stock exchange. just today in an sec filing the social media company raising its ipo price range now $23-$25 a

share, it was $17-$20. dennis, is this really in this day and age a smart move to go public? you end up being under the microscope. >> rightful well, they've already made that decision, so we need not even debate that. the bigger question for me, is this going to be a facebook or kind of this big success, a linkedin? is this ipo going to go up? and lately i'm getting the idea that this thing is off to the races. journal saying today, cherl, we're in the best ipo market since '07-'08 time frame. cheryl: you know, adam, again, a lot of these analysts coming out raising their price targets on twitter. the pressure is on for these guys. is this going to be another facebook? that question's still hanging out there. >> and what dennis should point out is that 61% of the firms that did their ipos were not profitable in the month leading up to the ipo. that's the case with twitter. so whether twitter will be a facebook, who knows? but very careful, i i mean, the smart money is going to get out.

when you see $23, $25 a share, this is good for people who are going to be in at the beginning, but you buy in here, remember, facebook fell in its first year and didn't come back until today figured out how to do mobile. >> and, adam, to your point, facebook's just now getting back to its ipo price or pre-ipo price, i should say. when you look at twitter though, we're talking about toed, the now, the ipo, the debut of trading for twitter. what about later on? i mean, stanford university just put out a study basically looking at how innovation drops for these major technology companies in the months and years that follow their initial public offering. so isn't there some concern out there that like facebook we're hearing that teenagers aren't using it anymore, or they're dropping out of it altogether, that twitter going forward may not be as innovative if all of a sudden they start to lose their talent once they're a publicly-traded company. i think as an investor that's where many people are going to be more concerned -- dennis: the outlook for twitter

is instagram. the youngsters are using instagram, they're communicating with pictures. cheryl: but, rich, the original question about the fact is it worth going public these days because you've got the sec who is trying to, you know, i guess come back, if you will, from the madoff disaster and try to reignite the high-charging federal agency, are they going to be all over these guys before you know it? >> reporter: as a public company, you open yourself up to a much higher level of scrutiny, and that, of course, is something that they have to look out for here. it's any decision that a company has to make. and i've got to say just generally, the kids love the twitter -- [laughter] >> you are a kid. cheryl: we love twitter right here, god, are you kidding me? topic three, guys, a new poll from the streets showing nearly 60% of americans believe the u.s. is the world's mostt econor one-quarter of americans think china is number one. when asked about the future, 43% of americans think we're still going to be dominant in five to seven years.

but look at this, 36% think china is going to be number one. dennis, are we already second to china? dennis: no. we sell a lot more stuff to china, and the bigger they get, the bigger customers they're going to be for us. it's a very big, scary thing because of the growth differences, but china still half the size, and gdp, china is one-eighth the size of the u.s. and they have almost no innovation. what they innovate, they often steal from the u.s. >> they have no property rights, so it'll be rare, but dennis is right. cheryl: you guys agree? >> for once. cheryl: all right. sandra, what do you say? >> well, i think we have to point out the numbers, and if you look at gdp, both the u.s. and china, you know, bar none the u.s. is still the dominant power 8 to 1 over china. but that being said, when those that were polled, it was the richer people that were polled, the richer americans that were polled that felt the most threatened as far as china

overtaking the u.s. as the world's superpower. and you have to ask yourself why, because they're being taxed to death, and we're demonizing success in this country. so if there's takeaway from this poll, it's that the american people do feel threatened on a daily basis, and we are at risk of one day losing that superpower, but we're not really close to that yet. >> sandra puts her finger on a good point. a decade ago in china talking to an entrepreneur, and he says when the chinese goth knocked on our door, it was to tell us what we're doing wrong, now it's to ask how can we help. when government knocks on a business' door, it's to tell them what they're doing wrong. cheryl: rich, i wonder if this is why the administration has been tap dancing around the china issue for the last five years. >> well, look, you know, it's not been a great economic run in this country, and it's easy to see why people might be feeling pessimistic, but china might want to kill for our demographic problem over theirs. what we spend on military, our

aging, our system of law, we've got a lot of advantages that even if they do take us over when it comes to the total amount of gdp, we've got a heck of a hot going for us -- a lot going for us. cheryl: that poll did surprise me, dennis, it really did. dennis: yes. but it's good because it shows we'll see the threat and we'll do something about it. cheryl: i hope you're right. dennis: google executive chairman eric schmidt enraged, why he's calling government actions outrageous and possibly illegal. details next. cheryl: and a new report claims that adjustable rate mortgages may actually be a big help for struggling homeowners. that's a good one. as we go to break, take a look at the energy markets, and you've got oil still well, well, well below $100 a barrel. we'll be right back. ♪ ♪ [ female announcer ] tide pods three-in-one detergent.

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cheryl:

all right, you've got the dow actually down by 14 points right now, a lot of fed speak coming out, we're going to be talking about that later on in the show and whether or not they're making good points as far as the economy goes. again, want to watch the oil companies again after the bell for earnings, exxonmobil is higher by a dollar, a gain of about seven points, but that cannot keep the dow in positive territory, and we're looking at dupont, johnson & johnson, and that is actually taking the markets lower today. time for stocks now, we've got nicole petallides on the floor of the new york stock exchange. you're watching the solar sector. what's going on over there? >> reporter: it's a fun group to watch because we're seeing big moves as well, each of these three names has some news, and look at the big returns, right? solar city and sun tech power each up more than 15%, and sun power itself is up 11.5%. so you have solar city's unit selling some notes, sun power making an acquisition, so that's big news there of green biyachtics, they sell services

and cleaning products in this group, and also sun tech power. >> you had a -- where you had a chinese company saying it agreed the buy a unit. all these names really soaring. back to you. cheryl: thanks, nicole. dennis: google executive chairman eric schmidt slamming the national security agency over its alleged spying activity. the tech honcho calling the alleged snooping of google's data centers as outrageous and potentially illegal if proven. "wall street journal" reporting that schmidt has filed complaints with the nsa, members of congress and the president. the nsa, meanwhile, maintains it conducts all of its activities in acor corps dance with the law insisting, quote: dennis: which is really grandstanding fr agency in so much hot water these days. cheryl: people over the weekend talking about the creation of

the nsa and how this was never supposed to be -- dennis: spying on our allies and our allies spy on us, but i think that kind of finger wagging from an agency that's this controversial right now is especially confident. cheryl: i agree. long thought of as risky, adjustable rate mortgages, those things may be a huge help to homeowners. deb tennessee thank you, fed, for that. and help for veterans, high-tech training and a guaranteed job with a he hefty salary. details coming up. meantime, here's how the world's currencies are faring against the greenback. ♪ ♪ when does your work end?

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>> and welcome back to fox busines. at 22 minutes past the hour, i'm lauren between with your fox news minute. tens of thousands of iranians protesting in tehran in the biggest anti-american rally in years. the crowd showing solidarity with hard-line opponents of president rouhani's historic outreach to washington. the demonstration comes on the anniversary of the 1979 embassy

siege and the capture of 52 hostages. authorities in kenya have charged four shalies in connection -- somalis in connection with the attack on the westgate mall. the militant group al-shabaab has claimed responsibility for the attack which killed 67 people. and usain bolt, the world's fastest man, estimates he ate 1,000 chicken mcnuggets during the 2008 olympic games in beijing. bolt says he thought that the chinese cuisine was odd, so he hit the nearest mcdonald's in search of his favorite food. and that's your fox news minute, back to you. dennis: thanks very much. a new mortgage report out this morning finds that many homeowners with these adjustable rate mortgages are up likely to see my increase in their interest rates that they pay on their mortgages which is kind of good news for them. peter barnes is in washington, d.c. with more. >> reporter: hey, dennis, that's right. this new report shows that families that that took out a certain kind of adjustable rate

mortgage are not at risk of seeing sharply higher monthly payments because of the recent backup in mortgage rates. lender processing services took a look at some three million hybrid adjustable rate mortgages, these are loans with rates that generally stay fixed for the first three, five or seven years at a low rate which helps some buyers afford a home, then the rates become adjustable annually. lps reports that about two million of these loans have already flipped over to annual adjustments when rates have historically still been very low thanks largely to low interest rate policies by the federal reserve and of the remaining million hybrid adjustable rate mortgages, those homeowners are looking at continued lower rates historically as well. also just 250,000 of these types of loans were made back during the housing bubble when lending standards were a lot looser. that means a relatively small number of these loans could become problems. >> most of them have been

originated post-crisis, and because post-crisis hybrid a.r.m.s are very well underwritten, they're very high quality loans, we're not very worried about them defaulting even if rates go up. they'll have been underwritten to the full adjustable rate, so they'll generally be be pretty safe. >> reporter: and safe, though, translates into tight lending standards, right? you've got to have a high fico score, high down payment, that kind of thing. so while tight lending standards are good for the banks and their shareholders, limiting defaults and foreclosures, they continue to make it hard for some home buyers to qualify for a loan. dennis? dennis: all right, thank you very much, peter barnes. cheryl: well, blame the government. one fed official is pointing the finger at washington when it comes to our economic slowdown. we've got a guest coming up who says the government is the single biggest threat to the market. dennis: and if you're one of the lucky few who have been able to log on to health healthcare.govd you be concerned about the security of all the personal

information you're putting up there? what you ought to know before you register, next. as we head to break, let's look at some of the s&p 500 winners and losers. ♪ ♪ @?? peace of mind is important when you're running a successful business.

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[ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. dennis: did the government shutdown caue an economic slowdown? why the fed may be the biggest threat to our economic recovery, coming up, and how safe is your personal data on the health care exchange web site somewhat you ought to know before you register. and for veterans, high-tech training and a guaranteed job with a hefty salary.

and stocks now every 15 minutes, floor of the new york stock exchange, nicole petallides and, nicole, stocks are seesawing around here, and there's a possible end to the sac insider trading drama. >> reporter: you're right. we have seen some mixed market action here. don't forget, we've had a great four-week run, october was an incredible month with the dow up 2.7% and today really hovering around the unchanged line, down just nine points at 15,606, but it has been a mixed bag. the nasdaq, for example, is to the upside, so it's been the s&p 500. hey, let's get to the sac story. first of all, it should be noted to keep an eye here on fox business, we do have charlie gasparino over at the press conference this afternoon, so we'll have all that news more you as well. so you do have that sac capital paying $1.8 billion in penalties, this is the largest settlement ever. the head of the fbi here in new york talked about this, it demonstrates that they were, in his words, breaking the law and

just talks about, obviously, the problems with this. this is four counts of securities fraud, one count of wire fraud. it's all about how you make your money, how much you're making, but really back to how you're making the money. and so this, obviously, admits some guilt here. sac has agreed to plead guilty, and so this is, obviously, the largest insider trading payout ever, so we'll continue to follow this story. as i noted, there is a press conference this afternoon. southern district of new york here in downtown manhattan, so we're going to find out more on this as well. dennis: all right. thank you very much, nicole. cheryl: well, blame the government. dallas fed president richard fisher blaming government discord for the slow economic recovery, he says the government's inability to get its act together has countered and suppressed stimulative efforts be by the federal reserve. he said the government and fiscal tightening, that's the single biggest threat to the markets, to money.

what's going on? >> i think so. fisher takes a perspective that i think is borne out by the data. you look at not only the government shutdown which probably shaved a quarter of a percent off of gdp, back up a couple of months if you look at the sequester, the fiscal cliff, you're probably looking north of 2% of economic growth in this economy has been shaved off based on what's happening in washington, so it is a significant headwind for the market. the federal reserve is doing their best to push against that, and we'll see who's going to win that tug-of-war, to mix my metaphors, but it is an issue. cheryl: this crossed in the last hour or so on "markets now" is that powell, a lot of fed speak today, saying that, basically, we're going to be accommodative for some time. >> oh, yes. cheryl: and then he's saying we're not hurting emerging markets, that our policy's not hurting emerging markets, and the rest of the world is not suffering because we're just flooding the system -- >> oh, there's so many ways to look at that, but i would say

the policy responsibility of the federal reserve is in the united states. you know, full employment or expanding economy, plus they want to keep prices in line. so what other countries are case by case, are they pegging to the dollar, what kind of policies are they pursuing, so the fed can't monitor and set policy for the rest of the world, they have to do it for here. cheryl: but they follow us. >> they do. and easy money has been disproportionately been helping the emerging markets, but growth, valuations are very attractive, so we're looking at multiasset portfolios, looking at emerging markets as part of that long-term solution over extended periods of time. val waists do matter, but they are keying off the fed. cheryl: they are. another fed official saying the jobs picture, it's rosy. the job market's in good shape. really? where are we at in unemployment right now? let's go back to 7.2%. >> it's good to have a diversity of opinion in any group, and the federal reserve is one of those groups.

i think the gray cial improvement in the unemployment picture is what the fed is looking at. there's not a lot of inflation in terms of prices in the u.s., so that doesn't really force the fed's hand, so they can concentrate exclusively on what's happening in the market. it's not a great one, and it's not likely to pick up speed, so tear going to be looking -- they're going to be looking at the labor market. cheryl: it's rare to say there's something interesting about the fed, but janet yellen, i think, could be a game changer at this point. >> oh, yeah. cheryl: ben bernanke has spent years criticizing congress and saying flat out in his testimony, flat out to anyone who would listen, you've got -- you know, fiscal policy in washington is a disaster. you've got to rein it in. no matter what they do, it doesn't help, right? janet yellen, is she even going to be as strong as bernanke? >> well, she'll have to have an opinion. cheryl: but what's it going to be? she's been seen as doveish. >> personally, i find the fed fascinating, that's just me. [laughter]

and yellen's very pro-accommodation. so bernanke, i think, really developed consensus, and they look at both sides of the argument, i think her default position is to be very pro-accommodation or easy monetary policy -- cheryl: same thing we've had. >> yeah. but i think she's also an analytic person, so i think if people study the fed, these are geeky people, and they look at the data and have their predispositionings, but fundamentally they're driven by the data, and i think the fed right now as a body looks at the fact that washington is in kind of a deadlock right now, not a lot is getting done from the fiscal side, so that leaves the only lever on the machine left is what the fed can do, and that's what they see as being the political reality. cheryl: well, we're going to get a lot of fed speak this year, and we listen the what they say, duh. >> but rates are going to be low for some time to come. cheryl: thank you very much, steve. dennis: help for veterans, high-tech training and a guaranteed job with a hefty

salary and also blackberry off the sales block, and the ceo, he's fired. latest details coming up. meantime, let's look at ten-year treasuries. ♪ ♪ so ally bank has a raise your rate cd that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.

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♪ ♪ >> i'm tracy byrnes with your fox business brief. johnson and johnson will pay more than $2.2 billion to settle justice department investigations into the company's marketing of two antipsychotic drugs. whistleblowers who originally bought the claim will receive more than $167 million from the proceeds. vanguard's total stock market index fund is now the world's largest mutual fund. vanguard beat the total return fund after investors sold $4.4 from the firm last month. sac capital advisers have reached a plea deal with u.s. prosecutors. the hedge fund group run by steven cohen is expected to pay a record $1.8 billion in criminal penalties, plead guilty to insider trading. the proposed agreement will be announced around 1 p.m. eastern. that's the latest from the fox business network, giving you the power to prosper.

cheryl: microsoft putting $1 million towards a 6-week computer school for veterans guaranteeing them a job in the industry upon graduation. the best part, it's an on-base program. fox news' dan springer is live in seattle with this story. dan? >> reporter: yeah. hey, cheryl, and this training is being given, this is the key, this training is being given while these soldiers are still on active duty and will be completed just before they get out of the military. what does it mean? unlike so many who are transitioning from the mull tear to civilian -- military to civilian life, they won't have a period of being unemployed and trying to get the skills needed to start a new career. there are 23 students at joint base lewis-mccord, but microsoft plans on expanding to bases in california and texas next year. the soldiers had to be interviewed for the program and test high enough for math. they all said it's been challenging but offers a tremendous opportunity. >> the big fear in transition

into the civilian sector is that you have to retrain all your skill sets, you know in and, again, that doesn't always translate well for most people. >> reporter: that's right. according to the bureau of labor statistics, the official unemployment rate for veterans was at 10.1% which is, of course, higher than the national rate, but a survey done by the iraq and afghanistan veterans of america paints an even worse picture. in a recent survey, 16% of their members said they were jobless, and of that group nearly half had been out of work for over a year, and numbers are likely to get a lot bleaker as the military downsizes. the pentagon plans on a 30% reduction over four years, expecting to have more than a quarter million leave the military next year alone. microsoft sees an opportunity to help itself while helping those who have served our country. >> they're very talented, they have got the drive, the self-discipline, the problem-solving skills. it's been apparent that if we could close this remaining skills gap that these are people

who are highly likely to be successful. >> reporter: oh, and by the way, these soon-to-be veterans will be making about $100,000 in these jobs, so not a bad landing spot when you transition out of the military. cheryl: dan springer, great report. thank you, dan, good to see you. >> reporter: okay. dennis: obamacare woes abound and new calls for the administration to take down healthcare.gov because of fear surrounding what may be gaping holes in the site's cybersecurity. >> they're trying to change a tire on a car going 75 miles an hour down the expressway. that's not the way cybersecurity works, and unfortunately, both diane and i both know the real threats to these systems when you have nation-states and organized crime groups and criminals trying to get information that is now available on these web sites. they need to take the site down. ten depp now, he's a republican, but even a leading democrat, intelligence committee chairman

dianne feinstein, echoing chairman rogers' concerns. for more let's bring in the directer of the american enterprise institute's center for internet communications and technology policy, that's quite a mouthful, he's also a former omb executive. thanks for being with us, jeffrey. how big is the security problem at the obamacare web site. >> is. >> well, it's a big problem at the web site. i don't think anybody knows yet quite how big because they haven't collected very much data presumably, but we know it's potentially a big problem now. beyond that that, it's a bigger problem going forward in the future. the government does not have a very good record of protecting people's personal information. dennis: it sure doesn't. one of the contractors they brought in to work on some of these problems is called quality software services. this firm actually got in trouble for other security lapses regarding medicare beneficiaries. did you see that? >> i did see that. and, you know, it is, it's endemic throughout the federal government. i think what people need to

understand is we're not looking at a bad apple or a bad actor or mistakes someplace else. if you go through the history of the federal government's dealing with personal data in the computer era, it's gao report after gao report on the inability of every agency from the irs to hhs and others to take the most basic security measures to protect people's private data. and an example you're talking about is just one example where they were allowing people to plug usb plugs, memory sticks into a very secure computer system and walk out the door with them. dennis: yeah. and in the latest case with the obamacare web site, one guy went on there and actually realized he was seeing the patient files of other people who had signed up, and though he himself was a regular patient. now, in terms of the real security risk here, i really kind of doubt that some hacker in iran cares that i'm on norvask for high blood pressure. what's the big deal? >> oh, i wouldn't count on that. if you look at the history of computer attacks and what, for example, the opportunity for

blackmailing, the opportunity for phishing, knowing what your health conditions are, for example, would be an opportunity to market to you fraudulent health care solutions, you know? there's a new cure for the disease that you happen to half. so if people treasure their health care data and hold it very close for a reason, and part of the reason is it makes you vulnerable to people who would do you ill. dennis: i see. and what do you think about this debate of whether you have to fix this jet airplane as it's in the sky flying or whether you need to bring it into the airport, land it, shut it down and fix it. it seems like commercial sites fix themselves on the fly all the time. >> oh, i don't think so. i think you have continuous improvement, but if amazon or facebook or google or microsoft had launched a new product with this level of problems, they'd have taken that product down. in fact, they wouldn't have launched it in the first place. so, you know, i don't think that you can compare to, you know, other examples where you have a

glitch is what they were calling this going in. what you have is a nonfunctional system. dennis: right. do you think that the supporters of the system, of the whole obamacare push were kind of unwilling to take it down because of the politics of the situation given that the republicans pushed so hard to derail the entire program? >> i think it's very sad that this issue so poe be lahrized that that appears to be what happened, that they went forward. you know, i understand that secretary sebelius said we had an october 1 hard date, it turns out that date's not in the law. so they were moving forward on a political schedule, not an operational schedule. dennis: all right. well, thanks for being with us on such short notice today, jeffrey. >> thanks for having me. cheryl: it is time for the fox business stock radar. the stock on the radar today, and we are forecasting really a rough few months for this one, lulu lemon. the stock is rising, but there are new complaints about the

yoga pants. this is something that plagued the company within the last six months, and i wanted to show you this new batch of complaints is focusing on the styles, but it's all about the yoga pants. these are high-selling items, this is something you want to keep your eye on. there's the six month, but if you want to look at the stock long term, take a look at the three-year chart. of course, we're going to keep you posted, but this is high-end yoga wear. they've got a very passionate clientele. they regularly issue quarterly sales growth of 20%. before you count this stock out, take a look again at the three-year chart. the company suffered their biggest low back in march when they were forced to pull overly sheer yoga pants off of store shelves, that's a recall likely to dent 2013 by 57-67 million. if you compare them to under armour over the last three

years, look at the interesting trend line. it's all about the clothing. under armour, expensive for men, lulu lemon, expensive for women, but these are stocks to watch and that's why they're on the fox business stock radar. dennis? dennis: in today's media minute, blackberry's buyout is scuttled. a sign of weakness or strength? blackberry's shares falling 10% or so today, they're down 16% right now on stunning news that its planned buyout is dead, and it's replacing the ceo. it's hard to think of a tech ceo who has performed worse. blackberry's stock down 60% since he took over in january 2012. he bet on a touch screen smartphone when the real keyboard was blackberry's mainstay. his golden parachute almost tripled in size even as blackberry struggled. company had agreed to a $4.7 billion bayout from fairfax financial, now fair faction will loan a billion dollars to

blackberry while it tries to right itself. the big question is whether it can. sales fell 50% in the most recent quarter, the z10 was a flop and some of the smartest names in tech are said to have kicked the tires and passed on it. microsoft, facebook, samsung, lenovo and qualcomm all said to have looked at it and nowhere to be seen. cheryl? cheryl: this blackberry story that you're on for the day, and i know you're going to be doing more throughout the afternoon, it's fascinating. i was watching one of the major networks, and it was all smartphone, tablet ads, and none of them were apple. none of them were blackberry. dennis: and then you get into a death spiral so you advertise less and less, and they came out with that z10, but this is just a company that shot itself in the foot. sometimes the market moves past you, but then you do things yourself to hurt the company, and that's what this company did. and let's not forget this is a company that called for an sec

investigation of stock manipulation when one analyst said, hey, i think they're getting a lot of returns. so shame on 'em. cheryl: i'm going to stay on the tech thing. the secret barges of google, remember those? are these simply giant party boats? the truth behind the mystery solved. that's coming up in your west coast minute. dennis: but first, take a look at some of today's winners over on the nasdaq. ♪ ♪ if you've got copd like me, hey breathing's hard. know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier.

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cheryl: time for your west coast minute. southern california gas prices sitting at their lowest level

since january, prices have fallen to an average of $3.78 a gallon for unleaded, prices have fallen 46 over the last 47 days, the data compiled by aa and the oil price information service. and alaska, the state's deficit is going in the wrong direction. oil income has been on a steady decline over the last three years and adding to that, north slope oil production has also been declining. current projections show alaska's state budget deficit for this fiscal year going to be in the neighborhood of $1 billion. and google's mystery solved, turns out the mysterious barge is a marketing tool to promote google glass, another high-tech gadget. the bars will feature a party deck on the top. no photos have been released yet, but kpix-tv station reporting that the co-founder of the company has been overseeing the entire project. take a look at the stock, it's down more than $2. party on. $4 and change right now -- $24 and change right now.

dennis? dennis: and the runners were out in full force for the 43rd new york city marathon after it was canceled last year because of superstorm sandy. a record firm of runners hit the pavement for this year's race. the men's and women's title runners both hailing from kenya, each taking home $100,000 for crossing the finish line first, and this in addition to the female champ's $500,000 winnings for winning the london marathon and becoming the world overall champion, and this also is the second consecutive win for the male champion. cheryl: i was actually at the finish line yesterday, and i watched all the pros come through and, oh, my god, tear just amazing. i have to say thewet yesterday, brutal -- weather yesterday, brutal. dennis: i was going to run in it, and i decided at the last minute not going. cheryl: i think i'm in next year, i can't stand it. all right, we are just moments away from the manhattan u.s. attorney's office news conference as sac capital agrees

to pay the largest-ever penalty for insider trading, pleading guilty on all chargings. that's going to be live coming up next. deron deb and how about this for an entertaining show? next hour adam and lori talk with the ceo of the firemen's fund. you may not know its name, but what about movies like the godfather, star wars and all the james bond firms? how it's insuring hollywood. ♪ ♪ ♪ ♪ no two people have the same financial goals. pnc works with you to understand yours

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see, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber. >> it is breaking news, $1.2 billion fine. >> federal prosecutors reaching a resolution in the insider-trading case against hedge fund giant sac capital advisors. adam: this hour we will hear from the u.s. attorney for the southern district of new york as steve cohen's crumbling hedge fund pleads guilty to securities fraud. the announcement live in just a few minutes. lori: on hand, charlie gasparino

all over this story from the very beginning. he will join us live. adam: see where we stand on the dow, stocks on back from the highs of the day. nicole: we has in the back-and-forth action. a great run the last four weeks. neneuheisel the major averages. today is a different picture. dow jones industrials down. the nasdaq composite up 5 points and the s&p up 2 points. about one-tenth of 1% off the unchanged line. it shows some wait and see. we have a monthly jobs report. and i should mention we have a big ipo this week of twitter as well. that is really the environment we are in here overall as far as the major market averages. steel stocks are doing so well on analyst upgrade over at goldman sachs.