how fascinating. stuart: it is your show, go. dagen: more of that. thank you. the insurance industry meets with the president. a temporary fix with the health-care law causing more problems. warren buffett dumped shares but he is loving mobil, up $3 billion worth. more about that 22-year-old founder we told you about how he turned down a $3 billion offer from facebook for the company, kashmiri, talking google to drum up an even sweeter offer. getting it to work, companies getting more out of their employees, boost productivity for video surveillance but how much is too much? that and more this hour, there is never enough. connell mcshane is here on markets now. ♪ connell: you caught that it in

the open. dagen: 4 hours. connell: do michelle ng your own accent, better than imitating party. dagen: my accent is bad to begin with. identity anybody. connell: nicole petallides as a terrific accent like mine. she is from the new york stock exchange to talk about the market up 50 points on the dollar. nicole: 16,000 getting closer and closer to that level. dow jones industrial average set another record today, all time record high for the dow today and at the moment of 50 points, a dish of 1/3%, 13,926, nasdaq composite of 3 points, fractional move and the s&p 5 under the 0.2% but for the most part we obscene a lot of the across-the-board. retailers and banks stocks and transport and oil services looking good today. that being said what about six straight weeks of the genes for the dow and the s&p so that is

likely what we are seeing here today on this record-setting day not only for the dow jones industrial average but the s&p 500 all-time high and the nasdaq at a 13 year high. i want to get to kimberly-clark hitting a new high today as they are talking about spinoff plans working with morgan stanley to pursue this into moving to set up a health care business that actually has surgical infection prevention products and they could spin this off and the idea of pushing stock to the upside earlier today let's see what is doing, it is down to the downside but earlier today moved earlier to the upside and worth noting kimberly-clark makes kleenex tissues, household products as well. connell: thanks. dagen: president obama auld another high level of losses meeting with insurance executives today as the administration tries to right the wrongs in the health-care law. connell: the biggest obstacle

may not be with these insurance companies and peter barnes is at the white house. peter: the insurance industry is scrambling this morning after the president's announcement that he will allow existing health insurance policies that do not comply with obamacare to continued to be sold and used by some five million people who have had their policies canceled so far, and confirmed, and top health plan. and among the insurance companies represented here today. this is what they're talking to the president about. etna in a statement says it supports efforts to allow people to keep what they have, however, we will need cooperation and expedited approval from state regulators to remove barriers that would make it difficult to make this change in such a short period of time. regulators will need to allow us

to update our policies and secure appropriate rates so we can get these plants back to the market. now we have been hearing from state insurance commissioners. some have said they will allow this, they will approve those old plans to resell them and reset rate policies but others have said they won't so everyone here this morning trying to figure out how to make all of this work. we will be monitoring the meaning which will be this afternoon. connell: peter barnes at the white house. dagen: former adviser to bill clinton among other jobs you held, and pursuits of yours, don't they -- wouldn't they know, they are trying to fix this especially but wouldn't they know this isn't an easy way to solve the problem and it is just one of the problems?

>> with votes coming up in the house, mary landrieu's bill in the senate and bill clinton having said what he said the president knew he had to move quickly. i don't think this is the fix. you are exactly right. was a short term, largely rhetorical fix. it remains to be seen whether the insurance market and even the exchanges can react to this positively. connell: is there a fix? >> there is. very difficult to do. it is basically to call web site to say we will delay six months to year, reach calibrate, but the problem is in this fraud political environment is really tough to do that and the president, you are right, is making it up as he goes along.

dagen: what is mind-boggling, certainly a white house and administration that we agree or disagree with him politically savvy and. everything about the rollout of this has gone poorly in terms of the web site, people getting dropped from their insurance, their premiums doubling, individual insurance market, if they knew, then why didn't they get ahead of that. >> they didn't know. the ray dittinger read the law then. >> they didn't. they believe to basically is that it would somehow work that the republican critics would do what we saw with the government shutdown over reach, it would be implemented. it could ultimately work but it is beginning to look less and less likely that that is the case. >> i wonder how politically savvy they are in the white house, the giveaway that they are. the number of issues you would question that. bill clinton was politically

savvy everybody agrees. is this white house? >> very good question. they are good at campaigning, they are very good at dealing with an opposition, less good at governing. dagen: that is political savvy. dealing with opposition. they let republicans bury themselves. connell: they don't see things until they're on top of them. >> they drew the red line, syria, it wasn't a red line. the international community's red line. it is more day-to-day governance and i agree with you. i don't think it is savvy politics, certainly not good government. dagen: so much to talk about. what a mess. tried to fix it and all the economics and the whole thing falls apart. >> that is the problem. dagen: you know who foots the

bill when that happens, the american taxpayer. insurers are responding to president obama's new fix for health care. dennis and cheryl will talk with the insurance group, the american health plan insurance plan, agreed to represent the insurance industry and the next guest says if you are investing for long-term retirement stayed the hell away from bonds. connell: watch your mouth. the chief economist in joins us now. stay away -- dagen: he would save that. bernard: the bond market, we spend a lot of time talking interest rates and where they're going and how much of your portfolio should be towards bonds and use a not very much. >> i have to start with given my own age where i am i have money in the bond market sell on would put more nuance on it than that but here is the point. the fed right now is engaged in

a couple extraordinary programs. one is quantitative easing and the other is this long-term pledge to keep the rates low. both of them are designed to induce lenders to lend interest rates lower than they should wear market rates would be. when you buy bonds when you think about it you are a lender, lending someone money and not getting the interest rate right or a corporation or its mortgage borrower or whoever, you are not getting the interest rate you would if the markets were allowed to work. what i would do is be cautious about your entry points. for example quantitative easing we have seen recently in the second quarter, a huge increase in interest rates as markets anticipate the end of the program. that was a good opportunity to buy those interest rates are lower. i think i might wait until they tell us when they're going to taper and wind the program down.

they a few watch the stock market seems to be really a question of chicken with the federal reserve as long as those policies are in place it is going to be a winner. once a pull that back, you are talking about a loser. >> to an extent that is right. we look at credit creation in every sector of the private economy during all three quantitative easing programs. what we found was housing may be mortgage activity but the big winner was corporate bond issuance. tons and tons. they're not using that to create jobs. moving on jobs relative to periods with q e or using it for investment or buying back their own stock. that is driving the stock market. some of that will continue from a low fed funds rate. connell: the stock market makes more sense. we have not heard that as much as the other ones. what did you think of janet yellen before we let you go?

anything new out of that? >> you have to remember what the testimony was for. was a job interview, the point to secure the job. you honest. i think she did present her opinions but they were a little bit abridged, less than what she really thinks. she did a terrific job. she will be confirmed. i wouldn't try and forecast what the fed is going to do based on what she said yesterday. go to her speeches where she gives more detail and find she doesn't love q e as much as she suggested. dagen: starting breaking bad, once she gets the job -- >> i tell you i don't think economy has benefited much from quantitative easing and there are risks associated with it. you think about fannie and freddie when they had a $5 trillion balance sheet, it was a little risky, we're passing the $4 trillion mark with a fed balance sheet, there is some risk there.

dagen: at least she doesn't have the lips quiver that ben bernanke has. >> use enormously confident and that is not a bad thing. connell: always good to see you. dagen: warren buffett switching that his holdings in the energy sector. >> makes a move in the nfl this weekend, cheeks/broncos, willing to sell her wedding ring to be there at the game. dagen: you don't get that much money for those rings, let me tell you. that $3 billion offer facebook made dennis: chat seems like the company was holding out for something sweeter or somebody different. and oil, take a look.

just by talking to a helmet. it grabbed the patient's record before we even picked himp. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and adiums. but, of course, 's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

dan and george soros is making

big moves sending one company to an all-time high. nicole petallides has that in the exchange. >> a la protesting to what george soros is doing. the fact that he is taking stakes in microsoft and fedex, trimming positions in google and filings with the sec and raise the stake in chevron. chevron is to the downside and shares of fedex are hitting all-time highs today. the fund held 1.5 million shares of fedex valued at just under $173 million and also we continue to see what he was doing in relation to the other big guys, john paul's and and the thirdpoint, also in fedex at the moment so we are seeing

fedex moving to new highs. back to you. connell: news on the nfl bullying scandal involving richie incognito and jonathan martin. dagen: the independent investigator earlier this morning in new york city, from fox news joining us with much more. what is going on? >> martin arrived 90 minutes ago and headed inside this building located north of the office on sixth avenue. he is meeting today with nfl special investigator ted wells to discuss these issues that he had with the dolphins and his teammates, richie incognito, matt -- left the team last month, bullying that martin's attorney went way beyond traditional locker room hazing is a text messages and voice messages in which the lineman friend martin in his family and called him the n word but incognito said he is not a

racist. >> it is a word i heard john use a lot, and a lot of calls for words. and we don't use in everyday life. the fact of the matter remains that voice mail is left on private voice-mail for my friend and it was a joke. >> right, wrong or in different was suspended by the dolphins earlier for conduct detrimental to the team. it would be a maximum four week suspension based on the league's collective bargaining agreement but incognita filed a grievance challenging his suspension asking for a hearing to start playing getting paid again, he is losing a quarter million dollars a week. martin is reportedly getting canceling for depression and post-traumatic stress disorder because of threats and harassment he allegedly received from his teammates and there is now talk about sensitivity training for its players.

the players i have spoken with rolled their eyes over that one. this is based on toughness and they say martin is as special case and 99% confronted their tormentors instead of allowing this to go so public. connell: rick leventhal, and did jonathan martin store. speaking of football we have this kansas city store. this woman out there, in exchange for tickets for the broncos game this morning. this was first spotted by the ticket seller's girlfriend and a man bought them after the $3,000 appraisal matched, fighting to surprise his girlfriend with a proposal this week and. the woman is telling the rings, not like she took some of her finger, she is still married but told the kansas city star these were from a previous marriage. dagen: there you go. connell: big surprise, the golf friend and all that and i don't know. what do you think? dagen: what do you think about

the incognitos thing? the old thing is we. connell: no way we are going to get in on that. of course it is weird. later beyond belief. dagen: is like every locker room. connell: to some extent but a lot of stuff is over the top. a lot over the top. we have been seeing how long there are some things we don't know all the details of so leave it there. dagen: right or wrong richie incognito comes across like he 1 and hundred% of these would be is saying. connell: he put a shirt on. dagen: he serves with confidence in his answer. you see the players union threatening to sue spirit airlines to make fun of the incognito scandal. >> funny stuff. dagen: everybody needs to get a

grip. exxon mobile back in the glow of warren buffet. he put $3 billion in the company. connell: and then more on this snap chat store. looks like a bidding war, billions being discussed for the photo sharing service, $3 billion. we will talk about it. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> 24 minutes past the hour your fox news minute, u.s. navy helicopters from the aircraft carrier uss george washington on dropping water and food and isolated communities in the philippines after a devastating typhoon. the death toll has been raised to 3600 and some officials are saying there are thousands of additional deaths. china is easing its family planning rules that limit families to one child. couples will now be allowed to have two children if one of the parents was an only child. the decade-old policy could be a move in china for the rapidly aging population. and a rookie harlem globetrotter has set a new guinness world record for the longest made shot in history. made the basket from nearly 110 feet away yesterday in phoenix

beating the previous record by five feet. the timing worked out pretty well since yesterday was guinness world records day. those are your news headlines and the fox business network. connell: good job. 30 shots to take it. dagen: what an astute observation. good job. connell: don't know where we got her from. looks like warren buffett still likes energy but he is changing the names he likes, the energy patch. berkshire hathaway's latest disclosures out. the company sold 10.7 million shares to conoco phillips investing in exxon mobile. exxon doesn't like it and when you look at them outperforming exxon over the last five years i wonder what warren buffett is up to, multibillion-dollar investment of exxon means the company now is sixth in berkshire's portfolio where it ranks in what it is investing in. dagen: more on that decision, 23 airmass co-founder to walk away from a $3 billion offer cash

money, and kansas turned down the offer from facebook but we might know why they did it. a couple of them say google was brought up for at $12 billion offer and the blondes report google and face coated not the only bidders, starting with china's $0.10 expressing snap chat, $3 billion range. and value the company. and offering $4 billion for the company. that is still a tricky sell because there is no revenue. connell: i will look smart and you won't. where are we really going? i don't know. reason to go commercial commercial real-estate with your real estate investments talked

to some investors in prime time. investments in some nightlife hot spots coming the. dagen: keeping an eye on your employees', ideas to get more in the way of productivity, manage errors, this is very invasive and i am not talking about surgery. more ahead. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell get live squawks right in your trading platform with think or swim from td ameritrade.

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.

♪ ♪ connell: just past the half hour, here's what's still coming up in this hour. two investors standing by who are going prime time with their investments in night life hot spots, and we'll talk about that. and the story about big brother even in the operating room. but you might like this, in the name of better productivity, interesting stuff. and credit suisse among a term

of firms that are bringing out the bears. dagen: nicole petallides. >> reporter: hey, dagen and connell. looking at some of these financials on the heels of a downgrade of their debt by moody's of some of these big wangs as they -- banks, and you see the stocks are really reacting. not. what you're seeing is that the financials continue to do well. jpmorgan up 1%, morgan stanley, new high by the way, highest levels since february of 2011, and bank of new york mellon a i new high as well. what's going on here? why are they downgrading them by one notch? actually doing this because the previous ratings were based on government support, bailout support, more regulation, right? you have dodd-frank. now what is actually going to happen is these banks are going to have to count on themselves. i don't know what you want to call it, but they're going to have to shoulder more of the responsibility, and with that,

that's why they're doing this downgrade. back to you. connell: thank you, nicole. all right. with the housing market continuing to recover, the commercial real estate market also heating up which we're going to talk about for the next few minutes. it's number four, the emerging trends in real estate markets to watch lists for real estate investment and development. dagen: and closing over 50 deals on new york's top hot spots, president of hicken real estate and -- picken real estate and danielle has a new tv show as well. when did it, when does it air the is. >> it's going to be airing on tuesday. >> it's esquire network. >> the new nbc's chiropractor network. deag deag on some networks it was style. >> it was style. including directive, starts at 8:00 tuesday. dagen: do you find spaces for people who want to open a nightclub or bar, and you find them the space. how stinking difficult is that

out in this city? >> it's challenging. it's very challenging. and that's why i think that we create such a large name and presence in the city, because we know we have the connections, the contacts, how to take them from soup to nuts on these type of deals. we know the zoning, the community boards, state liquor authority, what's required x. there's a lot, you know? especially when we have international clientele coming into new york -- connell: they have no clue about it, right? you know when a space opens up, too, something like that, when things come available, people have no idea. >> exactly right. but it's a lot more to it than just your typical real estate. dagen: particularly, danielle, dealing with the neighborhoods, because it's a very specific -- the bigger the club, the more noise there is, and the bigger the headache. do most people who want to open a bar or nightclub really know what they're doing? >> no. and that's where our company comes in, our specialty, you know? i think that's one thing that we, you know, want to get out there. the if you're going to do this

venture, i think that you should hire a professional because, you know, we can take you from soup to nuts and show you what is the right thing to do -- connell: what kind of mistakes do people make all the time? the wrong kind of club in the wrong neighborhood. >> >> >> yeah. and what'll happen, what'll often occur is there'll be great time lags in terms of their anticipated date of opening and a loss of income. and expenses that are not necessary to undergo. if you know who and what and where to put your efforts. dagen: and both of you guys can answer this, what type of night life space is working right now? whether it's a large club or a bar or a lounge? how important is food? >> there's a fusion going on, wouldn't you agree? >> yea. >> between restaurants and night clubs. and while the big clubs, a lot of them we're now relocating them out to brooklyn and certain areas there, i'd say the perfect

size is in and around 5,000 square feet. i've brokered, i'm happy to say, over a million square feet of hospitality space in the city. half of that is restaurants, and half is nightclubs and bars. connell: but a lot of things that happen, did things get cool for a while, things are trendy, but how much is dependent on the economy? how much of what you do is dependent on how the economy's doing? >> well, that's a good question. i'd have to say that even with the economy going down, people need to get out -- connell: right. >> -- and have a drink or relax and have some fun. connell: so things never crashed, for example. >> no. and right now it's probably more robust than it has been in years. >> there's a lot of tourism going on right now, and with that, you know, hotel development is definitely booms, and with that hotel bar, restaurants, rooftops are, you know, a current trend. so -- >> and we get calls all the time we will consult with the hotels. i've told a summer of -- sold a

number of hotels in the city, and it's an amazing industry to be in. dagen: what's the failure rate overall on, like, a club? >> in manhattan? dagen: yeah. >> the failure rate is probably only at 20%. dagen: that's really low. connell: eight out of ten make it? dagen: because the bar so high. no, no, what about restaurants? >> restaurants is a much higher rate. however, if you use a firm like ours -- [laughter] that'll help a little bit. dagen: go ahead. connell: i was going to ask about the show. dagen: yeah, that's what i was going to ask. connell: do things get crazy? it's a nutty business, i would think. it must be crazy. >> it's a lot of fun. i love numbers, so i'm a numbers guy. connell: right. >> want to talk drama? >> i'm the drama person. it was fun, but it also is intense as well. there's good points of what we

do, the fun aspects. that's when it becomes fun for us, when we actually are able to do what our customers want us to do. and when it's not fun is when the obstacles are against them such as the community boards, the liquor licenses don't come through, certain building things don't come through. >> there's competition, of course -- >> yeah. >> this is not your typical reality show, by far. >> no. >> it's a documentary. there is drama, but -- dagen: and it's also business reality. >> it is. st the big apple. it's hospitality, it's night life. it's exciting. dagen: it's the toughest, toughest place to break into, but the most exciting, for sure. connell: risky listings, right? dagen: on the esquire network. please come back, we'd love to keep talking when you've got stuff in the works. >> we will. dagen: because we don't go out, because we get up at 3:00 in the morning. >> anytime you come out, please, give me a call.

[laughter] dagen: too southern. connell: we have this story coming up about the snoops in the operating room, but it's much more than that, it really is. this is unique. they use a lot of data, they can make doctors, nurses and everybody more efficient and much more productive. we'll tell you how, coming up. dagen: it makes them efficient, but does it make them uncomfortable? and jeff frock coming up with an exclusive interview with an american tool company that's been making wrenches before the civil war. connell: someone had to. [laughter] you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot.

[ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪

♪ ♪ >> i'm lori rothman with your fox business brief. so we learned this morning that u.s. export prices fell in october, down half of 1% despite the estimate for prices to rise one-tenth of a percent. u.s. import rices also declined seven-tenths of a percent coming in lower than expected. the new american lines will trade on the -- airlines trade on the nasdaq after the merrier is complete. the new ticker symbol will be aal. us airways traded on the new york stock exchange.

manufacturing activity in the new york region unexpectedly contracted in november for the or first time in sixth months. the new york fed's empire manufacturing index came in with a negative reading of 3.31 -- 2.21, and that was far below the expected positive 5. that's the latest from the fox business network, giving you the power to prosper. [ male announcer ] if you have a dream of owning a business, find out why over one milliusinesses have trusted legalzoom to hp them get started. when you're ready to open the doors to your business, wel have a personalized legal solution that's right r you. start your business today with legalzoom. hmm. ♪ mm-hmm. [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list

at the winter event going on now -- but hurry, the offer ends soon. [ santa ] ho, ho, ho! [ male announcer ] lease the 2014 glk350 for $419 a month at your local mercedes-benz dealer. dagen: increasing your employees' productivity in the workplace clearly still a top priority for business owners, and our next guest created a system that does just that using remote video auditing used in manufacturing plants, operating rooms around the world providing up to the minute updates on employee performance. connell: yeah, adam erickson is actually a former currency trader, right? this is a different type of business to be in.

>> it was a big transition, yeah. connell: basically, you have cameras, right? maybe we could focus on the medical side just for a second, people would identify with that. cameras in these operating rooms, and you're helping the doctors to be more productive. tell us how it works. >> yes. it's actually a combination of safety and productivity. the way it works is we've got monitoring centers staffed with people using a remote video auditing software platform that we built, and they look into each and every operating room once every two minutes. and as they assess what's going on in the room, at any time that there's a safety protocol, something like making sure they're operating on the right person at the right time and the right part of their body, they audit to make sure that's done correctly, but then at the same time we have software that's taking all that information and helping everybody in the operating room almost like a control tower in an airport understand where to be. so the cleaning people need to know when the case is coming to an end so that they can get staged to go right into the room. so it becomes much more sort of

a staging and task-alerting tool. dagen: what is the end result in terms of improved safety, productivity and also cost reduction? is that the ultimate goal? >> yeah. so one of our big clients is north shore allied health system right here in the new york area. connell: long island, right. >> one of their hospitals, forest hill medical center, really pioneered this work. they were able to do two things. one, on their safety metrics, they were able to improve their protocols for surgical safety checklists and surgical site infections. the protocols around those, they've been nearly to get 100%. by reducing the time between cases which they call turnover, they've been able to capture about an hour a day per operating room, and that's worth a lot. if you can book another hour worth of operating time, that's worth a couple thousand dollars, and you can reduce overtime which is also significant.

connell: obviously, this trend towards big data is huge, but you said it's a couple thousand dollars, so you take an hour's time in surgery, and you can value that at $2,000. >> yeah. connell: how? how do they had been that, do you know? >> if you just look at the statistics, an hour of operating room time on average is going to generate about $2,000 -- connell: add that up -- >> imagine if you had ten operating rooms many in your hospital, it would very quickly add up to over $4 million a year if you could book all that time with new cases. dagen: we were showing some of your customers, the manufacturing, hospitals, what is the other applications in. >> so it actually got started in food manufacturing. so one of the largest companies in the world, a large meat company called jbs, originally used our services to improve safety. so this is to reduce e. coli rates and cross-contamination. dagen: right. >> they were able to take rates in some cases that weren't optimal up to about 99.5%, and

that resulted in about a 60% decrease in e. coli rates. coed the term big brother in teasing this, which i'm sure you heard, but the reason i haven't asked you, dagen was interested in the metrics you talked about, but that said, does that come up? >> every single time we talk to a new client, anytime i do a press interview, it does come up. and the way we've gotten around this issue is instead of giving feedback about individual performance, we've been able to give feedback in the aggregate. here's how this team is performing. and so by doing that, we've got p completely away from any kind of onerous utilization of this technology which could be, you know, threatening to workers. so workers actually embrace it because most people don't get measured for much of anything. dagen: but you could do individual measurement, could you? >> you know, technically, you could, but the power of giving positive feedback, it gets the same message across. so if you tell a group of people, hey, you're performing at a very high level, they know that there's, you know, ongoing

observations throughout the day. of. connell: i think that people, especially high performers, they'd like people to know that they're performing well. they'd like the other people that are slacking to know they're performing better than them -- dagen: what about potential medical malpractice lawsuits? does your video get called? >> yeah, great question. it took us a long time to figure this out. we use very low resolution video, you can't make out faces so that there's no privacy issue. secondarily, the video's only stored for a very short period of time, and nobody in the hospital has access to the video. so we look at it, we make an observation and then immediately discard it, so there's really a lot of ways to mitigate those issues. dagen: very interesting. adam, thank you so much. adam aaronson. connell: credit suisse calling for a big drop in commodities, the latest in firms for energy and metals, that type of thing. dagen: sandra smith has today's

trade. >> reporter: hey, dagen and connell. actually, i was just talking to friends in a really widely-read newspaper, and they just walked up and kind of said we're big buyers at these levels because goldman sachs, credit suisse, they've all been so bearish in talking down these commodities markets that it's starting to look attractive from a buyer's perspective. credit suisse is basically saying, yes, commodity prices have sold off, but they believe over the next few months they're going to sell off even more. check out these five-day changes. silver, copper and gold, three of the worst performing commodities. obviously, silver and copper more industrial-type metals, very closely tied to the global economy. they are saying the reason they're weak on commodity prices is not because of supply, but it's -- sorry, not because of demand, but more of a supply angle. there's an oversupply of some of these. look at the year to date change,

corn down 39%, silver, coffee, gold, wheat, double-digit percentage losses here, guys. and this is as major wall street firms have been calling for the end of the commodities supercycle. keep in mind credit suisse is saying they're bear withish over the -- bearish over the next few months, and primarily they're saying that they are seeing weak demand in the emerging markets, and they're actually suggesting shorting commodities at these levels like natural gas, like silver. but, guys, as by us just talking to one of the writers over at hightower report, he said they're bullish on platinum, cocoa and cattle because they see both supply and demand getting squeezed this those markets, that's where they're bullish into the new year. it's a very hot topic down here right now. connell: thank you very much, sandra, in chicago. dagen: industrial production down last month, lower home sales spells trouble for many businesses. connell: jeff flock will show us

how one manufacturer is coping, coming up.

♪ ♪ connell: well, look at the economic numbers, industrial production fell unexpectedly last month, we've had lower pending home sales the past few months, but now one company tied to both parts is still going strong after 150 years. dagen: jeff flock is at klein tools in illinois. hey, jeff. >> reporter: i have wanted to come to this company for a long time, they got their start before the civil war. you're looking at slotted screwdrivers being made before our eyes, and if you are an electrical pro, you know klein tools. i want to look at industrial production numbers because on

the manufacturing styled, tom klein, ceo since 2006, fifth generation klein tools -- >> fifth generation. >> reporter: actually, manufacturing was a bright spot. >> yes, it's a bright spot for us because the industrial base is a big base for us. construction and industrials is where we sell. >> reporter: the economy not quite as bright as you would like it, but at the same time, industrials have done well. we take a look at the industrial etf, take a walk back in here, tom, because i want to see these drivers. the industrial etfs have done pretty well, but at the same time, a lot of uncertainty out there in this economy. >> there's a lot of uncertainty, and for klein we've been doing well with market share growth. >> reporter: what am i seeing right here right now? >> this is a machine that's welding -- it's a friction weld of our nut drivers to their shafts. >> reporter: what is a nut driver, you say, as you watch the weld take place right there. that's a nut driver. boy, that's a long one.

a lot of these things used in home construction, electric wiring of homes. i leave you with the pending home sales numbers, not good. i'm going to talk to tom klein next hour about that, what he fears about this economy right now. we'll be back in one hour. fun today. connell: all right. dagen: jeff, thank you. jeff flock in illinois. connell: all right. in d.c. they have dueling bills on the house floor with plans to fix obamacare, so we're going to be following all of that action such as it is live from capitol hill. dagen: health insurers respond to the president's attempt to basically get americans to keep their health insurance. vice president of a trade group coming up. ,. ♪ ♪ don't fly any faster. but it sure feels that way. because with power ports... and wi-fi... and in-seat entertainment, for everyone on board, now when you fly, time flies too. (flight attendant) sir, we're about to land.

(vo) we're adding a brand new plane, with all this, every week. it's just one way we're building the new american.

>> the fact is for all the fuss everybody said about how the upton bill was going to protect us, it does not mandate that

insurance companies must keep those people in their insurance policies will it is only a masquerade, trojan horse coming in to undermine the affordable care act. >> nancy pelosi shooting it down. republican bill to fix obamacare. 9 dennis kneale cheryl casone taking use to the next hour of markets now. house democrats now offering their own bill to go head a head against republicans and we are following all the action on capitol hill. tell insures respond to president obama's latest fix in a meeting at the white house today even as they warn your premiums may go up anyway. we hear from industry wrapped and the benefits for the markets, a keeper and l ortega later. all this and more in the next hour of markets now. 15,916 in the dow, no. we have been that close to 16,000 ever. cheryl: a really nice market

rally. you pointed out yesterday looking at levels we have not seen in the decade so the technology incredible. dennis: was 5,000 that year. cheryl: we have got to get to what happened yesterday. you saw and on the show, you heard president obama dropping a bombshell announcing new rules on the board will carry act. that happen during this hour. >> insures extend current plans that would otherwise be canceled in 2014 and americans whose plants and been cancelled and choose to read and role in the same kind of plan. cheryl: all this immediately. some insurance groups fired back. america's health-insurance plans warning changes in the rules could destabilize the market and result in higher premiums. joining me on the phone to explain more, robert circlebus. you have -- appreciate it and day. apps to ask and you expand upon

what was a very strong statement yesterday, destabilizing the market. take me further on that. >> thank you for having me on. one of the concerns we have when this proposal came out is essentially what is happening is we are changing the rules in the ninth inning, health plans for months have been preparing and getting ready for all the changes required by the health care reform law. consumers have been notified, changes have already been filed with regulators, premiums have been set for next year based on peer assumption when people are going to be transitioning from their current policies into the market place. changing the rules at this stage of the game creates a number of questions and concerns how that would work operationally and what that is going to do to the new marketplace that was expecting all these people to be coming into the marketplace. cheryl: a lot is happening but i would think your members, insurance companies are in a tricky spot right now.

if they don't go back, on a those canceled policy when many americans are picking up their phones today to call your members, if they don't honor that doesn't that make the insurance company look like they're being, that of with regards to what the president asked them to do? >> that is exactly the challenge. health plans can't offer any policies in the marketplace alone the back and change the policies they are currently offering unless they have approval by state regulators. it is really in their hands of states to first say here's what we're going to allow insurers to do in our state and then they have to decide whether they able to. how can the best need the need to their consumers. health plans want to keep their customers. the only reason people were getting notices that their current policies were changing was because health plans were going along with the new requirement in the law that were scheduled to take effect next year. cheryl: we have been monitoring the debate happening on the house floor. the republican proposal for the

extension. sony will air on the floor just moments ago basically pointing fingers at the insurance companies and this has gone to be a morass of finger pointing that he is saying the insurance companies are the ones that are canceling those policies. maybe they could not make the change. how do the ceo as of etna, united healthcare, the biggest in the nation deal with criticism from democrats likes to any lawyer, criticism from the president himself? >> we are interested playing the blame game. we want to make sure people understand what is actually happening and why. the fact is anybody who is enrolled in a policy in the last three years, their policies were never grandfathered. that provision never applied to them and therefore they are required to come into compliance with all the new benefit mandates that are broader than many people are purchasing today. that is what has been happening in the marketplace.

your health plans would not be sending notices to consumers that policies are changing our being cancelled if they didn't have to do that. cheryl: you have another problem, your members have another problem. insurance commission is in states across the country, one of the things the president said verbatim was of course this will beommissioners in several states, we called yesterday several state insurance commissioners and some of them telling us we don't know what they're going to do. they are as befuddle as some of the insurance ceos. talked to alabama and arkansas, mississippi saying it is an issue, washington saying this is a problem to the health care companies themselves, and forget the politics have figure out what you can do between now and december 31st. >> you're hitting the nail on the head. the national association of insurance commissioners, the group represents the insurance commissioners put out a strong statement yesterday raising

concerns that we raised in our statement because we are now in a position of having to go back and tried to change and undo what has already been done and it is a short time period in which to be able to do that and lots of questions and concerns how you can actually make that happen operationally. cheryl: the next question is what happens to those americans that were forced off of their company's plans, forced on the exchange and looking for new coverage and none of what the president said yesterday applies to those millions of americans and this should have been toward reform. windier time is precious and you need to run. we appreciate it. >> thank you. dennis: dow 16,000. time for stocks now and nicole petallides on the floor of the stock exchange, fill in chicago at the cme. stocks looking for a sixth straight week of winning. nicole: is looking that way unless there's something dramatic happens between now and the closing bell. another winning week on wall

street another record on wall street for the dow and the s&p at the highest levels some of the dow advertise that if you're keeping track, and doing its job. 15,932 is gone high on the dow today. the nasdaq set a record high since 2000. we have seen a lot of winners on the dow industrials, exxon, american express and goldman sachs and the vix, the fear index, that gauge of volatility. it traded at 1199 so really is shocking everybody seems to be calm, cool and collected on wall street and late september this was really a very dramatic move to the downside so that is what we have been watching with the vix. on wall street would is going on in chicago, phil flynn? phil: it is all about oil and gold and gasoline. those are the big ones and right now oil is almost exactly even on the day because a lot of

things are going on, work out of china today that they were going to lift controls on energy prices and oil prices, that should be good for the demand side and should help us out a little bit, gasoline futures getting killed today, a big run up yesterday down $0.03. the big news is the refinery that was down is coming back online. there is an expectation that the refiners will kick into high gear, good news for gasoline and gold prices will rebound and they were down early, they were on yellow yesterday and made a lot more on the chinese reform news. back to you. dennis: thanks very nuts, janet yellen, and the banking committee that when it comes to tinkering is all about timing and making sure the fed doesn't cut back and stimulus too quickly. matt lloyd advisor is asset management says the problem of future fed chief is on the right track hand cream on the caper

right now and they join as both right now. thanks for being with us. you actually think we could endorse a taker? >> absolutely. unprecedented times require unprecedented action. that was 2008. that is what we needed the we. it is not 2009. 2013 the economy is not in a depression or recession. it is bundling along, slowly developing. what we need is growth strategies so the tabor is not helping that part of the equation. the economy is not growing because of the continuous tearing. >> the taper has turned into a stabilizing factor. the issue with it is we don't have fiscal policy congress and with monetary policy which is why you see diminishing rates of positive return but it is more the stability factor. until we get the washington drama club to the point of putting more confident in the system you will see this. the thing is that heat during is seen as a light switch off and

gone. it is a damning switch. they will weaken as they go. that is what the fed has done with all the accommodations over the future. to do it now and the frail state of the economy or tepid state of the economy is the policy of the last 4 years. dennis: is a matter of which they pull. they only have to cut back so much and they can continue buying mortgage bonds to keep mortgage rates low. >> absolutely. one of the fact is in the economy is the growth of the housing sector so that leaves mortgage bonds a side. let's start reducing the purchase of treasury bonds. is reducing of purchase, not a reduction. the second deck is if we get a strong employment number again the bond market will take the rates of the way. we need to be ahead of that. dennis: you say overall you think stocks are going up. do you think stocks are still going up if the fed were to start tapering in december, and stocks survive it? >> i think they will but they

are vulnerable to choppiness, if you look at janet yellen's testimony, yellen's yodeling that is music to the year is to emerge in markets to anything inversely related to the dollar. you will see more flats in the emerging markets from this and commodity sector because of what she said and i think that is where the growth is going to be in the foreseeable four to six months. dennis: let's talk about million ellen, does your outlook for taping with december change because of her, the likelihood of increaseds or decreases? >> he didn't say anything different than ben bernanke. we should remove yesterday and continue existing fed policy which means if we get 251225 number non-farm payrolls in december we will have the table talk again. doesn't matter -- secondly, if the numbers are stronger the

market will like it. >> the federal reserve never looked at month-to-month numbers nor do you want him to. the trend is in your favor. the problem is if you ask people out there are we really at 7.2% unemployment rate most will say no way, we are 8 or 9. and if you look to the average time when the fed release starts to get hawkish and raise rates in and implement raiders averaged 5.8%, the economy growing at 3.6% in gdi 2.4, we are away from that quantitative easing. >> well done by both guys. thanks very much. cheryl: the president admitted obamacare mistakes all on him. even as the man at all but continues republicans are stepping in with their own fix. dennis: the controversy over the ethanol mandate. it may be harming the environment. is it time to dismantle the government ethanol program? tweet me as we do every day at

this time, look at energy. [ male announcer ] imagine this cute blob is metamucil.

and this park is the inside of your body. see the ecial psylliumiber in metamucil actually gels to trap some carb to help maintain healthy blood sugar levels. metucil. 3 amazing benefits in 1 super fiber.

cheryl: as we approach 16,000, microsoft dragging on the dollar, the impact on the downside, little more than a point but the price of the markets are actually higher. george soros foldout on google. keep an eye on these names, apple, cisco, ibm, microsoft, oracle, this is the sector to watch and the law applied peers coming out next year in technology as well. let's head to the stock exchange, nicole petallides watching mcdonald's. >> so many headlines, several downgrades but several catching my eyes that they admitted they

had too many items that stumped even their workers because customer service has pulled back. in the meantime they want to speed up what is going on in the drive-through window. now they will have a third stop for orders that aren't ready. used to beat hand picked up your stuff. now there will be a third stock, they are going to expand and build 15 to 1600 more stores, remodeled thousand so go ahead and look for the third window. of the order is not ready go to that window. of it is ready go to that window. dennis: what is bugging me is the government's green energy ethanol program. a perfect case in point of the distortion and damage done when government regulation the too far. the ethanol program was in overdrive in 2007 when the fed forced will companies to add corn based ethanol as a 2% ingredient in the gasoline they sell. today we burn 40% of the

nation's corn to provide 2% of our gasoline. we burnt food that could feed people and livestock to lineup gasoline but a new report in the associated press shows ethanol programs have abject failure because oil companies were forced to buy billions of gallons of ethanol the price of corn has doubled. higher price prompted farmers to plant new corn field on five million acres of wetlands that the feds paid them to set aside as preserve. prowling over those five billion acres released huge amounts of carbon emissions into the air. and massive use of fertilizer producing midwest water in the gulf of mexico all because we thought the corn is green went it isn't. president obama, a former junior senator from illinois has hailed ethanol as the most successful alternative fuel we ever have developed. sadly that statement is both false and true.

is it time to dismantle the government ethanol program. the right answer would be yes. cheryl: definitely tweet dennis, the president back in force on what happens to your health care plan, certainly bugging the insurance industry. the president's chief of staff on capitol hill yesterday. the president was still talking. we get juan williams's take on that and play station iv hitting store shelves but will love the x box 1 this holiday season. as we go to break. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking,

i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience." there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. hmm. ♪

mm-hmm. [ engine revs ] ♪ [ male announcer ] oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now -- but hurry, the offer ends soon. [ santa ] ho, ho, ho! [ male announcer ] lease the 2014 glk350 for $419 a month at your local mercedes-benz dealer.

>> welcome back to fox business at 23 minutes past the hour, your fox news minute. u.s. navy helicopters from the aircraft carrier uss george washington are dropping water and food to isolated communities in the philippines a week after a devastating typhoon. the death toll has been raised to 3600 and some officials are saying there are thousands of additional deaths. china is easing its family

planning rules that limit many families to one child. couples will now be allowed to have two children of one of the parents was an only child. the chance -- the change to decades-old policy could be moved in response to china's rapidly aging population. miguel cabrera has been chosen as the american league's most voluble player for the second straight year. ebitda lehigh 340 with 44 homers and 13,000 r b is, the national league pittsburgh outfielder andrew mceachern. that is your fox news minute. back to you. dennis: thank you very much. means stream media doing an about-face when it comes to coverage of president obama with many on the attack over many blunders of obamacare. could be a turning point in his presidency. joining us is the host of media buzz on fox news. do you think of infertile is even true?

i think the media coverage would have been a lot meaner and outraged if this had been a republican in office. >> the president is getting pummeled by the mainstream media and there are comparisons for example to george w. bush's handling of katrina. i don't think he has had a good year in media coverage or good few weeks in terms of obamacare but in the last few days it seems to me the coverage has moved from glitches and problems to raising questions about president obama's credibility and that is dangerous for this president. dennis: the biggest contributor to that gap, in 2009 in a federal adjusted, registers from obamafolks a millions would lose insurance the president kept saying if you like your plan you keep it. >> clearly this is barack obama's read my lips no new taxes moment and the press conference yesterday with major garrett asking does give people need a more transparent accountability for the broken promise when you have the washington post yesterday front-page headline decline

interest threatens agenda we are at a turning point right now where journalists and even liberal commentators questioning not just a botched rollout but whether it is will leave barack obama without the clout to get much done in the rest of the second term. dennis: president obama has benefited for five years from not teflon likability and that could be threatened in terms of how he fixes it. was yesterday's that is on us that is on the enough of a buck stops here apology or does he need to do a national address? >> it was the first set. the view inside the white house is the president believes and aides believe the criticism is overstated but he has to go out and take it, he has to go out and be contrite, he has to show that he's engage and trying to fix the problem but is one midday press conference going to change the poll ratings particularly on the question of honesty and trustworthiness, majority saying they don't find a president to be honest and trustworthy? that is a much broader problem

than the details of the botched obamacare rollout. dennis: kind of waiting for even the most liberal outlets in the media to turn against the president when it turned out he was having a justice department's on reporters and putting court motions that the enemy of the stator something, come was instead the deception or possible dissension on obamacare the finally turned the media? >> it was the subpoena and surveillance of journalists that players in the waters in terms of relationship with the press so by the time the obamacare rollout blew up by think the president was no longer getting benefit of the doubt from the press corps many members of whom would obsession even outraged this -- he claimed he didn't know about the surveillance even as it was carried out against for example the associated press and some journalists at fox news. dennis: thanks for being with us, howard kurtz. cheryl: alice just moments away from voting on a republican measure that would allow all americans to keep their

insurance plans if they like some. even if it passes will the president ever met and see the light of day? >> with insurance along? and the smartest city america? sternly not d.c.. find out where the birdie at live next. let's look at today's winners on the s&p. what's better than zero heartburn?

♪ nothing, that's what? that's why i take prilosec otc each morning for my frequent heartburn. 'cause it gives me a big fat zero heartburn. woo hoo! [ male announcer ] prilosec otc. the number one doctor recommended frequent heartburn medicine for 8 straight years. [ larry ] you can't beat zero heartburn. and best of all, it means i can enjoy all the foods i love. oh, zero heartburn is awesome. just like zero clery. ♪ [ male announcer ] prilosec otc. one pill each morning. 24 hours. zero heartburn.

cheryl: stocks every 15 minutes. let's look at the floor of the stock exchange. you are looking at a bunch of movers. nicole: some of many to speak of a can't pick a favorite.

i get to an ipo, in name the move, joseph a. bank is one of them but let's start with fedex, george soros joining a couple of the other big guys like ron paulson, showing a stake in fedex and fedex moving to new highs was as if a bank on the high, moving into positive territory after saying it didn't work out in men's warehouse and we will explore other strategic alternatives. as if a bank and to do's warehouse in the green, sony, today's the day of play station 4. i got my call, get yours and midnight, not getting it in my family, not me coming it is to the downside for sony and nordstrom came out with their numbers, weaker with the outlook, that the luxury retailer. cheryl: thank you. dennis: breaking news the house set to vote on a bill that any minute will allow americans

whose insurance has been cancelled to keep their plans through 2014. rich edson on capitol hill with the latest. dennis: the house is about to begin this vote that will likely result in the house passing a bill that would allow insurance companies to continue offering the plans that were phased out largely by new regulations put in by obamacare. it is similar to what the president announced administratively yesterday we asked the sponsor of the bill, the chairman of the house energy and commerce committee fred upton why bother passing this proposal when the president said he will do this administratively, he said the only way to fix it is by putting it in law. >> interesting for the last week he has trashed our bill and now he has done something similar to what it does. the jury is out whether he has the legal authority to do this and not. we are trying to resolve this with certainty and that is what a statute, what our bill will do. >> the afton bill is disguised

as a sheep in wolf's's clothing. discriminate against people with preexisting conditions, restores annual caps on the amount of care you can receive a. >> democrats are in a tough position supporting a law that the rollout has been a mess, a lot of voters say the president going out on his promise, how many democrats are going to vote for this? 35 democrats joined republicans this summer to vote to delay the employer mandate by one year. the vote happens shortly. cheryl: as we wait for the vote in washington let's bring in juan williams, fox news political analyst, the president in trouble. >> in the polls, not only is his approval rating dropping but what is really important, the trust factor, what you see is people including independents and some democrats are saying we think you are incompetent. cheryl: a fox news poll wednesday night, 50% of likely

voters think the president lied, that he knew they would not be able to keep their plans and lied to them to their faces. what does the president think of that criticism? >> the white house perspective on this and the president is he didn't live. in fact 95% of americans aren't affected and even in terms of the 5 presented as a small percentage but they miss the poetry you coach the league. the poetry is the people who are affected are screaming that they are getting screwed by obamacare. gerri: he was in trouble yesterday, he was still talking yesterday. is chief of staff i'll tell that to capitol hill, four hours of meetings. he knows he has got trouble. >> this is been going on for several days, meeting that the white house to try to calm paula waters but at this point it would initially start as a democrat saying this is more republicans trying to sabotage

obamacare has become democrats saying this was a problem for us and if you look at polls, senator hagan in north carolina, herbal have gone from a lead in the 2014 senate race to behind some of her challengers. cheryl: senator mary landrieu has thrown plan in d.c. she gave the final vote on passing the law. that has come back to bite her. you also have north carolina, ore. and jean janine, people facing reelection next year and very nervous about what this means for them. >> correct. let's not go overboard yet. they are nervous but so far they are willing to stand in line and even in terms of what you are seeing from fred upton in the vote that is coming surely fred upton's thing would basically unravel obamacare because of what allow insurance companies to -- those policies being cancelled to new folks. what you see from the president and mary landrieu is simply

keeps in place in terms -- cheryl: what we are hearing from the insurance companies and the american people and the president, if the young americans don't sign of for the exchanges to keep their old plan that that's the law. whether it is the law or not it is over. >> because you don't have the subsidies, don't have the financing for the subsidies and what you need for people who don't have insurance or been underinsured because of problems with their health you need someone to pay who is healthy in order to pay the tab for those who are not healthy and once that is out of balance you are in trouble which is why these insurance companies this very day said the president ran over them yesterday when he changed the deal. he is taking healthy people out of the market. gerri: you think the strategy is working? do you think he's handling this the right way? there could have been another way to go about this. >> he is not handling it right away and even he says he fumbled and screwed this up and in the

past people slap him around for things he didn't think was his responsibility but this one i don't see how you consider there's any question about the strategy. it is the failure and it blew up in their face. cheryl: is it enough for democrats that face reelection next year to say it is on me? he is trying to cover for them. >> he has to slow the head at. yar in a panic mode among democrats, you have to calm and down and make sure they stay in line. so far so good but it is getting very itchy and early. cheryl: juan williams, thank you. dennis: they were supposed to be the savior of the magazine industry but now they are just one more headache for publishers. we have a guy behind one company looking to help magazines on line where tablets could not. cheryl: coming. ♪

♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade.

try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.

tracy: tracy byrnes with your fox business brief, moody's downgraded several big u.s. banks by one not, morgan stanley, jpmorgan chase, bank of new york melvin downgrade focused on moody's increasing believe they would not support the bank in the event of a crisis. there's activity, and in november. for the first time in six months the new york empire manufacturing index came in with a negative reading of 2.21 below the expected positive 5. expecting to get big between $8 million and $12 million with george washington's original proclamation on the first thanksgiving. 1789 document one of two known to be in existence failed to sell at come on. that is the latest from the fox business network giving you the power to prosper.

dennis: another day and other print media company on the block. my former employer forbes media putting itself up for sale looking at $400 million down from 6 and did million dollar value some years ago. next issue, media abetting net books for magazine's concept is the right solution and we are joined by the ceo, morgan guns there. tell us what your service is? >> this is an on demand service that allows the consumer to receive all the world's greatest titles, the greatest magazines on demand any time for a single price each month. dennis: and five different gadgets. your ipad, android, and high quality of content. and look at the obstacles to make it interesting. dennis: the limiting factor to magazines and why they haven't

done well. end nobody wants to read anything any more. >> i don't think that is the case. the fact is magazine's circulation is as strong as it has been, magazines looked at a press appears in 2008-2011. our owners and magazines largely rebounded. from an ad age perspective and circulation prospective it is there. people understand and love these brands and read them. it is just the issue is again it is not a growth industry. nobody can argue magazines and a growth industry even those it has stabilized the newsstands going the other way. >> when the allied and came out, we were hoping -- it is rich india and beautiful, 1 twenty million tablet sold in the u.s. and they are only 3.3% of magazine reading. what went wrong? >> it is still early days.

very early days. if you look at if you look at what happened, the approach magazines took to the ipad initially, i will put every title that i have on single application, apply a print business model which would say i want forbes, fast company, whatever the title is and download that and read it and pay rigorous subscription price, the rest of the industry and the rest of the digital side of the world saying i don't need to own anything. i want media on demand, access on demand, that is the right model for movies or tv or music, the right model for magazines, i would say what happened in digital is really not -- our product is a completely different product. when you look at is the five star rated products, people love it and they are spending $5 a month reading magazines.

that is the key. dennis: the industry gets in its own way. the alliance, gatekeeper of magazine sales requires digital magazines must include the same content as a condition. some trade group imposing stupid rules on an industry fighting for its life. >> i won't comment. >> yes you will. >> the business is still a circulation business. it is all about 97, 96, 95% of revenue comes from print and $25 billion industry, not tv but a big industry and so there's a push and pull between how do we retain the print business ma went transition gracefully into digital, this is one evidence of that. if you look at our titles and what we do, we have those magazines have the same ad that comply with -- the experience is

so much better. five more seconds. dennis: of a want to get your product today -- what is it? >> nextissue.com. cheryl: industrial production for october below expectations this morning that manufacturing was a bright spot so what does this mean for a company that managed -- in a manufacturing business for 150 years? jeff flock in lincolnshy heir, ill.. jeff: if you are an electrician you know kline fools. what is this machine? this actually is the starting process of turning steel coil into one of kline's professional screwdrivers. tom klein, president of klein tools, manufacturing piece of production numbers, pretty encouraging and you're making an investment in texas for a new plant. >> we are investing $100 million in taxes in terms of brand-new

facility is going online and 150,000 square foot facility early next year. jeff: your committed to building in the u.s. and is not easy to do that cost-effective leave these days. you need the economy to be strong. the cad pending home sales. that doesn't help you because when the housing industry does well you do well. >> when the housing industry is doing well we do very well. with housing got it definitely has an effect on the overall sale. jeff: i love to show these tools, if you're an electrician you know them but would get this screwdriver, this is one of their head screwdrivers and i love to see the machines that pop these things out. look at companies like home depot, sell your stuff, you are expanding to the sophisticated wire. you have always been professional grade but a lot of people like that. >> the do-it-yourself ears,

demand, died -- they are designed for the professional. jeff: we will be back at 2:00 to show you some more of this to see how these screwdrivers, there you go. ready to go. cheryl: if viewers what the real story what is happening in manufacturing save it for them. thank you so much. dennis: sony's first new gaming system in seven years, play station iv on sale today. the question whether gamers' still care. that is priced at $400 and lets you make a great football player. snap did your face book friend and twitter followers. sony, microsoft and nintendo sold a quarter billion consul's up to 2012 and they are on the internet and put on smart phones and tablets. place station 3 is a significant part of consul sales, eighty million units on most of that one, play station ii makes the most popular game ever selling the original and 3 and five

million by march and 40% better than the three rollout. cheryl: look at that stock down $0.05. time for your west coast amended. seattle has been named the smartest city in north america according to a new ranking. it jumped to number one based on an shortness in the area of government, the economy, people and mobility. boston and another west coast, san francisco tied for second place. greta van susteren six months of negotiation two strikes, looks like a new labor contract agreed to last month between board officials and unions had a major snag. board officials said a provision giving employees six weeks of paid family leave without touching sick or vacation days was not supposed to be in that contract. officials are considering a third strike. california state insurance commissioner david jones is asking officials that covered california to remove the

provision requiring companies to terminate individual policies that fall short of national provisions but the federal law. california would offer new options. we will keep you posted and that is your west coast minute. dennis: we look at time to dismantle the government ethanol program, bugging the heck out of me. responses after the break. cheryl: let's look at the winners on the nasdaq. be right back. [ male announce] imagine this te blob is metamucil.

and this park is the inside of your body. see the special psyllium fiber in metamucil actually gels. and that gelling helps to lower some cholesterol. metamucil. 3 amazing benefits in 1 super fiber.

dennis: is government relation going too far? here's what you had to say.

cheryl said quotas should not be mandating anything. the united states is not a committee organization and k. c. dumb subsidies for ethanol now. doctor says corn should be used for serial. was meant to be eaten. dennis says not yet. the transformation is not complete. team might be ironic. cheryl: the company planning on opening a supercomputer watson for apps developers. and won jeopardy in 2011. several apps in the works including retail apps called fluid, turns it into your own personal shopper. dennis: the house is said to vote on a bill that would allow americans whose insurance was canceled to keep their plans through 2014. cheryl: and all some union market concerns, rating agencies warning it may cut pr's bond rating, peter hayes, manufacturing director

municipal-bond group overseas $100 billion in assets. welcome back. how is everything?

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft.

(vo) meee-ow, business pro. meee-ow. go national. go like a pro. pop in the drum of any machine... ♪ ...to wash any size load. it dissolves in any temperature, even cold. tideod pop in. stand out. ♪ tideod ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement.

visit a branch or call now for your personal retirement review. ♪ cheryl: a very good afternoon. >> congress getting its say on obamacare. this our lawmakers in the house taking their turn on how to reverse millions of insurance cancellations that have already been issued. lori: health insurance exec had to the white house. we will speak with scott white house plan ceo alan and bowden. he says it is impossible to reverse what has already transpired. ashley: trouble in paradise. it may cut per rico's bond rating to jump. peter hayes, the managing director and head of black rock municipal bond group which oversees more than $100 billion in municipal assets w to tell you what it means for

your investments. lori: can anything stop these markets? lets get things started with the trip down to the new york stock exchange. another day. >> another day, another record nine. but it is music to your years. you would not mind hearing a broken record the said he made more money today than yesterday. new highs. getting closer and closer. chatting with someone who was looking at nasdaq 4,000. nasdaq 5,000. we're getting closer. we are back to those levels. set record highs let's take a look. moving to new highs