cheryl: what a see-saw and this is. we are in gains, getting gains on wall street. i am lori rothman. adam: i am adam shapiro, the dallas rebounding since june, stocks gained ground for the third time in 11 sessions. lori: the recent pullback is a healthy and expected bull market correction. he is banking on one more big rally. ashley: the future of microsoft, the tech giant named sasha ma l madel madella, the third person to hold the pose that microsoft. lori: the investigation into the massive credit-card beach and

why did she financial officer says it will cost to upgrade the technology. adam: it is a ratings agency, cyber security world's co-founder will join us to talk about why target and neiman marcus, not close to being the most vulnerable companies and we will talk about what you need to know but first stocks near the highs of the day and the stock exchange, nicole petallides is there and we are seeing a sigh of relief. nicole: no doubt at all. we sold off 360 points, on stock 360 points and that was a loss of 2%. a bounce back on less volume from friday and monday but you are seeing a little bounce back. over 1/2%, the nasdaq up 1.1%, the s&p up 3/4%, lots of nt you are seeing a little bounce back. over 1/2%, the nasdaq up 1.1%, the s&p up 3/4%, lots of news to digest, factory orders slightly better than expected, weaker manufacturing numbers and at the

end of the week, waiting on jobs numbers, company news from michael course, on the s&p soaring, announced the microsoft ceo to name a few. apple buying bandwidth. the volatility index taking a breather, well over 20 yesterday, down 13.5 today. lori: paul schatz is looking for another leg down in the s&p 500. should be rallied time. that is his outlook. the magic number to watch for next. first we have to give you -- predict the decline was coming. we are bouncing back today, what number are you looking for, what fundamental indicators should we be on high alert for in this uneasy climate. >> this is a typical, routine,

healthy and normal bull market correction. this bull market remains old and wrinkly but i don't thinkt is that yes. and one more leg down this month. the round nuufer, 1700 plus or minus a few percentage, it is a technical measure moved. doesn't really matter. one more leg down to restore the wall of worry. a little more selling done, a little panic in the public and build the base for a rally in to the spring. ashley: adam: adam shapiro, help us understand two things in conflict here. you talk about the strength of the cumulative advance/decline and the trend is still going up as an indicator of the bomarc it urill continue. then this flow back into junk bonds as people she's yield would be in conflict with each other. help us understand it. >> before the bull market ends,

typically usually, usually bmi saidagi- the decline line, monts or quarters or years, and made an all time high in deceufer, that is not sensitre.e to the time this ripple in this green and junk bonds left for dead after the fed announced possible taper last they have sprung back to life. they normally talk about before the stock market does and they put in the peak. those two ingredients forgetting how strong banks were until a month ago and the semiconductors how strong they were so the ingredients necessary to end the bull market are not there yet. from my view the next opportunity would be this market puts in a bottom this month and has another rally to all-time highs. if we don't see those things confirming at the next all time

high i would be more concerned but now you have a garden variety 10% decline. lori: if you want to invest in the volatility, should you go defensre.e? lot of cash to play without their. what do you think? >yiei am not sure i would be running to buy the vix right now. the real time to bann the vix i 15 or lower. on friday coming off today but today such a sucker's rally. when you close the day before and it runs all day, that is not really good bottoming action. that is hanging on and almost praying and yesterday was it. in this environment i probably urouldew t say the v su rig ou the rally last sunday or tw or three get it back down 14-15, probably a better risk reward trad an

you want something that might be lower in the volatility side? we are a long treasury bonds, the biggest position now. that is where you have more risk/reward until the does bottom. lori: good stuff today. adam: is taking longer than expected but microsoft named a new ceo, a veteran of the tech giant, satya nadella is replacing steve balunser. john thommbon will take over for bill gates's chairman. satya nadella is the third ceo in microsoft history. in a letter to employees he says it is an honor for him to lead and serve the company but gates and paunser on not writing into the sunset. they will stay on the cotesany' board of directors. gates is getting a new title, technology adviser. he will dn oote more time to th cotesany helping shape product direction and in a video posted on the company website gates says there's a lot of opportunity and he is excited to

have a strong leader to take the team ti pough a new era. lori: j.c. penney shares plunging to the lowest level in decades. retailer ais rouncing same-stor sales fell 2% and not all of recorded the first since 2011 but it wasew t enough to itesre investors. analysts expected a bigger gain since the comparisons were easy. the ceo michael goldman called the performance solid and said the results showed a turnaround is on track and don't forget the so-called nick and tweeting in the super bowl and the gatbaimaassing typos and spelli errors. that didn't help the story. adam: the congressional budget office's looking at a drop in the budget deficit but the improvgatent will be short-live. peter barnes is in washington d.c. with the numbers you can count on. peter: the deficit lwasks bette for 2014 thanks to billions in dividend payments to the

treasury from mortgage giant fais rie mae and freddie mac whh if bailed out, in its new ais rl forecasts cbo projected bickget deficit of $414 billion for fiscal 2014 which began oct. ãgiirst. $46 billion less than the projections in the may of 2013 outlook of a $560 billion deficit forngito th4. the deficit forngito th3 itselfe in at $680 billion but the cbo now profacts a long-term bickge ouirewask could get worse under new forecast for weaker economic growth over the next ten years, he lpercentage point less in growth. the tenure total deficits, 10 years of deficits totaling over the next ten years at $7.3 trillion up $1 trillion from its estimates last may. sr> the down rn oision of 1%, potential output growth over the

next decade is partly from lower å0ro billh of productiessty, pa lower growth of capital stock, partly from a reduction of labor fopne participation to the affordable care act. peter: steve geo took a lwask a obamacare with, it profacts there will be 2 million fewer workers in the work force by ing t17 than there migs it hthe because of the law. cbo says that is because larger gove htment subsidies for lower-income families would discourage people from working more and making more money. those shersidies si pink with higher incomes. dennis: thank you very much. lori: news alert, the u.s. kerening a spigot on oil export. reuters reported the government allowing limited egotorts to eurker an phil flynn of price futures group is in the pits of the cme. urhat do you think? phil: i think it is just the beginning. u.s. oil companies testing the

uraters, they want to see w the market reaction will be. we know the wti brent spread urill bring that spread in, will make 15s. prices higher initially but in the long run it bhould f thing both sides of th pond, oil prices lower. we have to be careful because there is a di ifrepancy. earlier it was reported they had approved to export u.s. crude oil, that is true. what they are rsuriorting is we will be egotorting other crude from other countries. for exatesle canad lwn ialicke to the 15s. and egotort to othe countries. right now the commerce department branded two licenses to egotort crude to the u.k. an two to italy and these other first permits to the 15n european country since 2008. in the past there hthe nee been spec lwl locations where the u.. would allow us to export u.s. crude. that has only happenmoring t ti in the last 20 years and most of that has been to mexico.

satg neve and a big first stsu. lori: we are back in washington. target's chief financial officer testifies on capitol hill about a massre.e credit card breach. adam: target and neiman-marcus on not the most vulnerable companies. still to come, a co-founder with the business's most at risk. lori: dressing for success. ove the secret. ecommerce darling expanding its fon tos to the ladies. the company ceo and grand director by exclusively to follow. life's an adventure when you're with her.

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lori: executives that target testifying before the senate judiciary committee shedding light on the company's holiday cyberbreeches, rich edson has the latest. rich: the government and retailers and cod companies trying to figure out how to secure customer data. the question is who is going to pay for it, the retailers want card companies to issue those chip card they have in europe and better security within numbers. retailers spending more money to

safeguard their own system. target spend millions on that and still the company missed this breach. >> had you had any knowledge that it was there before the department of justice give you that notification? >> we did not, mr. chairman. despite significant investment, multiple layers of detection within the systems but we did not. >> target was the $100 billion installing those terminals in their stores and also to each 2-story issued credit cards, and they will move that up and should have that rolled out by the first quarter of 2013. the federal trade commission was testifying today, it wants congress to pass a bill that basically allows them to levy civil penalties on businesses and nonprofits that fail to secure customer data and also looking for other regulatory powers from congress. congress is debating what to do about this. some folks in the business community want uniform standards

but they want to see what exactly congress comes out with first. another kilometers are calling for is notification that says if companies as soon as they realized with a reasonable period there has been a breach they have to notify customers so congress is working this out. first hearing was today and we expect three more on capitol hill. adam: our next guest's job is running out the company's most vulnerable to hack and target and neiman markets are not even close to being the least, steven boyars co-founder, chief technology officer of bid site technologies. thank you for joining us. the easiest way to describe what your company does. we have all been through a credit check and each get a credit score. that is what you do for all kinds of businesses, 250, and 900, and prepared to deal with cyberattack. >> the analogy we make is a lot

of credit scoring where credit scores are based on data collected about you. and that you haven't disclosed about your buying patterns or borrow wing patterns and the data is reported back, culminates in a store used for risk managers to decide if they will lend or not. we do a similar thing except cybersecurity data or looking around the internet for evidence of security that will give us a sense of the company's security performance. i watched a previous interview with a competitor, it noticed, tied at and other retailers. and under control and external adversary. a lot of people would agree with me, if you were aware of this was a target aware of it?

would you have shared with a client. would this was going on and is this the kind of thing if you can see it based on looking at public information. others could have been aware of. >> we don't discuss certain clients but i can tell you for customers to use our service they are watching the performance principally of third gordy ecosystems and themselves where they understand what sorts of things are observable outside my own network others might see that might be symptomatic of what is going on in my net worth would for the retail sector we have taken a look at and target specifically, we see evidence that increasing the amount of evidence, machines were under the control. the evidence, machines inside corporations connecting back out of the attacker machine and we are able to see an increase across the retail sector with target. >> can you see that on retail businesses? is that kind of thing when you

talk about your business based on public information? could you see someone who is not a client being attacked and if you did would you notify them or the authorities? >> absolutely. we don't chase ambulance chasers in that affect. we would let them know and they would be made aware and we have a learning service to do that. the key is having transparency and visibility. our customers lock the transparency. in the case of target they disclosed this breach may have come through a third-party, vendor who had a stolen password that allowed them to come in. this is one of the areas of weakness for our customers, thousands of third parties on which they have very little visibility. adam: i know in a recent report you said the financial sector rated highest in terms of security effectiveness. how do you make money? do i by the ability to check out

a company's rating with you? or the company is paying you to tell them where they are deficient? >> yes. we avoid the conflict of interest where companies pay as to be rated so our customers are subscribing the service, they want the rating. the company managing third party, understanding what prospect of a need for themselves so those to consume the rating will pay for it. adam: a company with other vendors will no the rating of those vendors. and it might happen at target. >> exactly. >> happy to be here. lori: one retailer showing no sign of slowing down, nicole petallides on the floor of the stock exchange. nicole: some are hot and some are not. as we watch the stock up 18%, at

in the latest quarter and move past the expectations. and luxury retail, and accessories and compare it to a name like coach. and the great retailer, when you look at the stock, a great comparison, you have michael co record all time highs and the 52 week low so that is not good news. coach used to be around $80 stock in 2012 but now $45.72. salvator al mastra adam: the latest on a suspicious package at the airport and la guardia, the fbi gave a all clear after partial evacuation of the terminal, the fbi giving an all clear. wishing your friends and happy birthday on facebook? don't forget to post on mark zuckerberg's blog, celebrating billion dollars in ten years in

business. lori: what are the odds? warren buffett was not the only one with that billion dollar perfect idea. we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ if we want to be ready for a longer retirement. ♪ see what's new a projectluna.com

[ male announcer ] this has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jos makes sense of investing. ♪

>> 25 minutes past the hour your fox news minute the the kidnap

threat against two austrian athletes days before the winter olympics begin in russia, the austrian olympic committee sent a letter from russia contains the threat against and alpine skier, police officers are in sochi to protect the athletes when they leave the olympic bill edge -- village. the russian ambassador stepping down after two years, michael mccall will resign shortly after the winter olympics. this points to many successes and russian relations but has been criticized by russian officials in the face of rising anti-americanism in that country. afghan president hamid karzai reportedly holding secret peace talks with taliban officials as tense relations between the u.s. and afghanistan continue. after hamid karzai said he will not sign as security deal until after a presidential election in april. those are your news headlines on the fix it -- fox business

network. >> facebook has a status update turning 10 years old, started in our harbors board room. ceo mark zuckerberg behind that. the company is worth more than general motors and ford combined. with reports it is losing young users password is in the future for facebook? jo lin king and will answer that question. >> mark zuckerberg said he cared more. in a statement on his face book page mark zuckerberg reflected on his memories of being a sophomore at harvard working on the facebook at the time eating pizza with his friends never imagining it would become so big. take a look at these numbers. 945 million monthly active users, 757 million daily active users and 6,000 employees at the end last year. facebook has had many bumps in the road involving controversies and looking at mobile revenue and those problems are turning

around conlan and announced a global ad revenue up 63%, and half of facebook's to led sales came from mobile devices in the fourth quarter. company now has the resources, pretty important problems. and social networks not only for baby pictures and birthdays but complex social problems. lori: 2 billion ideas, few weeks after warren buffett and quicken loans announced their nc bracken award. a new lawsuit is alleging yahoo! had the idea first. and yahoo! knows the $4 billion for backing out of the context. and every player of the basketball tournament. and toward the end of last year,

cancel the contest after quicken loans and the oracle of omaha announced there is. adam: snow in the northeast is a preview of coming attraction in its. janice dean with the next round with the next round of winter weather? >> e got hammered in the northeast. and our exclusive with the ceo, a new era of closing rights. across america people are taking charge

of their type 2 diabetes with non-insulin victoza®. for a while, i took a pill to lower my blood sugar, but it didn't get me to my goal. so i asked my doctor about victoza®. he said victoza® is fferent than pills. victoza® is proven to lower blood sugar and a1c. it's taken once-a-day, any time, and comes in a pen. and the needle is thin. victoza is nofor weight loss, but it may help you lose some weight. victoza® is an injectable prescription medicine when used with diet and exercise. it is not recommended as the first medication to treat diabetes and should not be used in people with type 1 diabetes

or diabetic ketoacidosis. victoza® has not been studied with mealtime insulin. victoza® is not insulin. do not take victoza® if you have a personal or family history of medullary thyroid cancer, multiple endocrine neoplasia syndrome type 2, or if you are allergic to victoza® or any of its ingredients. symptoms of a serious allergic reaction may include: swelling of face, lips, tongue, or throat, fainting or dizziness, very rapid heartbeat, problems breathing or swallowing, severe rash or itching. tell your doctor if you get a lump or swelling in your neck. serious side effects may happen in people who take victoza®, including inflammation of the pancreas (pancreatitis), which may be fatal. stop taking victoza® and call your doctor right away if you have signs of pancreatitis, such as severe pain that will not go away in your abdomen or from your abdomen to your back, with or without voming. tell your doctor about all the e and if you have any medical conditions. taking victoza® with a sulfonylurea or insulin may cause low blood sugar. the most common side effects

are nausea, diarrhea, and headache. some side effects can lead to dehyation, which may cause kidney problems. if your pillsn't giving you the control you need ask your doctor about non-insulin victoza®. it's cered by most health plans. [ 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. sixpcoming earnings plays... th recently gapped up. [ male announcer ] now the rld is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. adam: want to check stocks again and go to the floor of the new york stock exchange. go to nicole petallides.

the dow is seeing another triple-digit gain. where are we. >> today the dow is up almost 100 points at the moment. that is gain of more than half of 1%. s&p 500 up more than 9%. looking good for the s&p 500 led by names such as michael kors. i want to take a look at yum! brands. the stock is doing great, up 8.6%. they came out with the latest quarter. they exceeded the expectations. everybody knew about the constant worries and loss of sales that they had because of bird flu scares there in china. which is where they have the kentucky fried chicken. most of the franchises are actually there rather than here at home. they have pizza hut and taco bell under the up bell a. they reaffirmed forecast for 2014. great news for yum brands and over 52 weeks also a western. back to you. adam: nicole petallides, thank you. lori? lori: it's a new kind of women's line and it is launching today. it is called air.

the new line combines traditional brick-and-mortar with e-commerce and owned by a men's clothier. we have the air brand director and andy dunne is the no-bbios ceo. welcome to you. this is fox business exclusive. you describe it as a hybrid between e-commerce and brick-and-mortar shopping. now you're launching ayr which is a women's line. maggie, since this is your brainchild, from what i understand, explain to me the genesis of ayr and why you're viewing today. >> it is funny. sometimes the simplest things are hardest to find. ayr exists to provide solution to both parts of that problem with good design and good service. like them, are built on quality fit and service but we're hard-pressed to find answer for women like us. these are women who belong to a new generation of consumer. we're old enough that we earn money to spend on ourselves. we expect and demand high

quality and high value but also young enough we live our lives digitally. the brands we grew up with have not necessarily grown with us. it seemed to us we had to grate something new. lori: you have the fashion stuff boxed in and figured out. what about the finances, andy? how does this business model, i know on the bonobos side you had actual showrooms for men to try on garments and order them online. bus that help manage the inventory? is it kind of made to order? >> the whole company is built on idea you can bundle great clothing and great service together. that was the premise. we started with great-fitting pants on men's side. we started with shirts and suits. tailored clothing will be a third of our business of the we found eventually there is if you have a great brand you can move i have off on. bonobos is year six. guys want to touch and feel clothes. how do you get a retail experience architected to e-commerce area? that is the guy shop.

amazing one-to-one personalized service. we have two in new york, chicago, d.c., san francisco and boston. lori: what would you say the whole unit and business is worth? could you put a dollar value on it? >> i couldn't comment on that. we feel like if you look what is happening in the public markets, a lot to talk about michael kors. finding an asset with amazing margins and amazing growth is hard to do. if you look at e-commerce the challenge is not the growth, it is the margin. we have a portfolio of amazingly vertically driven e-commerce brands. where you not only have the great customer experience and growth of e-commerce but you have a brand. ayr was about let's get women waffled and we lucky to find maggie winter who had amazing vision for digitally clothing brand for ladies. lori: you have to come up with something new season after season. this is why we see consolidation in the fashion and beauty industry because demands on creativity can be overwhelmed

sometimes. how do you manage that. >> i'm glad you mentioned that. that goes back to the ethos of our brand, the brand is ayr, which brilliantly stands all year-round. we're focused on hard-working essentials, the things you live your life n we're not about chasing every trend. we're not trend driven. we're trend relevant. we're not trend driven. we want to provide a wardrobe that you actually live in. lori: every single day. i understand that you're really focusing on jeans, denim, bottoms for women. why is that, i can actually answer hat question. why, finding a perfect pair of jeans is so difficult. >> andy started to learn in 2007. it is one of the hardest categories to gain trust in. once you do you have a cult-like following. my cofounder is a very talented denim designer. they are truly superior jeans. you find one have best fit or best fabric or best service. lori: what about that best price? 195 will set you back. >> there is something to about

value versus versatility. if you have can use these three years from now. it is worth it. lori: congratulations on the launch of ayr today. >> thank you. adam: stocks are trying to rebound after the s&p 500 had its second-worst start to a february ever. the only year that was worse? 1928. charlie gasparino will join us with the investing month that is were real difference-makers. lori: so with stocks up today, what is going on with the treasury market? so, yeah, they're selling off treasurys. no surprise, pushing yields up to today, so the benchmark 10-year is yielding 2.6%. we're back in a moment. [ female announcer ] who are we? we are thinkers. the job jugglers. the up all-nhts. and the ones who turn ideas into action. we've made our passions our life's work.

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>> good afternoon, i'm sandra smith with your fox business brief. the fda has approved a camera that you can swallow that can help detect early signs of colon conser. the pill-sized device made by an israeli firm that has battery operated camera that transmits image that is allow doctors to screen for possible intensenal issues. home prices were up 11% in december year-over-year. corelogic said last year was the strongest for home price gains since 2005. the economists see price growth slowing this year but available housing inventory remains tight.

walmart will invest $450 million in its canada unit. the world's largest retailer says it will create more than 7500 jobs including construction to build 35 new supercenters in canada by next january. that is the latest from the fox business network, giving you the power to prosper.

lori: sorry. adam: did the 30% rally of 2013 take away gains of 2014? charlie gasparino has been talking to wall street insiders. he joins us with details. >> that picture looks like my high school graduation. lori: at least 20 years old. >> i tell people what to do. i'm part knowledge from other people. cat tallism at work.

they basically tell their clients what they need to know to make money or to preserve capital from last year. what they're saying is this. just throw some things out, let the viewer decide. people that bought dow and s&p after september 17th loss money. depending when you bought, you lost a lot of money. september 17th, it was a little money if yesterday but you still lost money. nasdaq, anybody that bought after november 25th has lost money of why? because the markets are correcting from amazing gains of last year. what they're saying is this, good ones with when only go to clients with a million plus, those are people they talk to. they believe the 2013 rally ate up a lot of gains for 2014. they are cautioning, they are saying that the market, before you even think about buying, this market has to go down 10%. we should point out the, we're measuring that by the dow. adam: dow is down roughly 7%.

>> dow is down 7% so far. in order for people to really start thinking about buying stocks, you need a real correction. you need 10% decline. then start looking but nobody that i've spoken with so far this so far that is smart thinks 2014 will be what 2013 is and what does that mean? for you the average investor, it means you don't just buy the market. you don't buy indexes. you put your money in place that is provide dividends, dividends, high dividend stocks. adam: high if you want. >> buy bonds, including muni bonds. i'm a lone, i'm out there -- adam: charlie gasparino chases yield. he is buying puerto rican bond. >> if you listen to some people on this network, munis are about to explode and big government will destroy it. that is not really going on out there. adam: the discussion you're having, are we having a discussion of short term, long term?

>> 2014. adam: talking one year. >> that is why you watch business journalism. i can only give you, impart knowledge i get from other people. adam: so these people, who listen, when you talk, we listen. >> i won't say their name you know who i am talking to. adam: do they talk what will influence them to come back into the market in big numbers? we keep talking over a trillion dollars sitting on the side not being put to work in equity markets. when do you get that money back% in the market? do they talk about that. >> who knows. that is a huge thing. there comes a point where in, you know, if the, if the economy starts growing 6% -- adam: right. >> that money automatically goes in because people worry about inflation. people aren't really worried about inflation right now. adam: let me talk about dividend yield. do they give you a number -- i think intel has a yield around 3, might even be 4%. would they consider that high yield? >> that sounds decent, sounds pretty good. look what you buy out after muni

bond. i'm not saying you buy puerto rico. adam: you get triple tax advantage. >> it is not what you get. what you keep. our average viewer has a few bucks. they get taxed at a very high rate. if you buy a puerto rican muni bond. adam: by illinois get tax advantage at lot less yield. >> not new york. you have to buy it in the state you live. if you're a new yorker, you can buy puerto rico. adam: right. >> i'm not sure in illinois, can you get the triple tax-free in puerto rico? you probably could. adam: you could. >> here's the thing, you get a 10% yield, triple tax-free. you know you're taking a risk but betting whether almost sovereign debt like puerto rico is going to go bust. adam: we've seen money flowing back towards muni bonds. you're not inaccurate. >> i'm not saying buy puerto rican bonds. i'm saying look at muni bond market. it's a good place for capital preservation and make a few bucks. people are scared to death by fear-mongering. should point out all the counties around detroit are

doing pretty damn well fiscally. it is detroit that has been a problem for the last 30 years by the way. adam: charlie gasparino. don't buy a bridge from him. trying to hock the brooklyn bridge. thankthank you, charlie. >> thank you. lori: more perspective on today's market gains state from the floor of the new york stock exchange. jonathan corpina is standing by. jonathan, do you refer this as a dead-cat bounce they refer to it as? >> i'm not convinced quite yet. we see market trade with volatility, big down day yesterday, get the bounce today. today is not really the important day. it will be tomorrow. is there real follow-through coming through tomorrow amounts charlie was talking about, money on the sidelines waiting to come in the market, investors see these pullbacks as opportunities and used it so far this year. the real trade if we continue to see that money coming in tomorrow. with all the economic data, earnings reports, unemployment end of the week, it will stir things up once again. lori: what would you say the market reaction then given how

vulnerable to volatility it has been late to another disappointing jobs report on friday? >> i don't think the jobs report when the number comes out on friday, if disappointing will affect the market because it will already happen prior to. we take awe the economic data we see throughout the month and formulate what we think the market is going to give us as far as the economic data is concerned and how the market is going to react. we talk about the number is already baked into the market. i think tomorrow and thursday we'll see real volatility in our market. hopefully we'll see real follow through as a bounce we see today. lori: we're set up for the rest of the week. thanks, jonathan corpina. >> thank you. adam: one down, two to go. 2014 what some people call snow pock can lips, what some of us call winter, turns out to be a trilogy. fox news's janice dean joins us as she tracks the storm. >> there is jeff flock. big business of snowmobiles. >> i have never driven a

snowmobile before in my life. lori: it shows. >> a lot of people haven't either. oh, my gosh. oh. but i'll tell you --

lori: this breaking news. check out natural gas futures, spiking up 10%. front month contract soaring on bitterly cold temperatures and storms switching much of the nation. strong gains follow three state sessions of declines by the way. keep in mind we'll get latest government reading on current inventory levels on thursday. speaking of coal, as the east coast digs out from one storm another one is already @rewing. fox news meteorologist janice dean with the forecast from the weather center. >> we have two storms brewing. this one the latest across the

central u.s. we're concerned about icing over little rock in towards the tennessee river valley and ohio river valley where we have ice storms for little rock. freezing rain for texarkana and little rock and jonesboro. that will continue as the next 24 hours as the storm moves eastward. we'll get a lot of snow, six to 12 inches for you in kansas city. that will make it very dangerous for traveling across the ohioohio valley and northeast for tomorrow's rush sure. let's track it. k-c you could get 10 to 12 inches which is impressive for you. d.c. could see mixing well as philadelphia and new york, three a.m., 5:00 a.m., towards the noon hour seeing mainly rain into new york that will cut down snow totals for new york but north and west of the city you could get clobbered with six, to 12 to 18 inches of snow. winter weather advisories up for

over two dozen states including ice storm warnings. we continue to monitor that. bring you latest from fox news extreme weather center. another one on the way this weekend, lori. lori: my children will be in school until the 4th of july. they had already so many snow days. >> we need day care here at fox. lori: you're not kidding. great idea. all right. adam: so cold weather may still be gripping much of the nation but snowmobile sales are beginning to thaw. jeff flock from peru, illinois, with more, jeff. >> great news what janice had to say. it is wonderful news for people out here in the midwest who the last few winters have had extremely mild and snowless winters, so it is great. look at snow depth chart or map around the u.s. i'm a polaris snowmobile. whoa. almost went over. , i have to know what i'm doing here. sorry..3 whoa.

hey. you didn't teach me that, brian. he is a snowmobile dealer. almost went over. >> are you going to be all right, jeff. >> gee. i got excited. you're excited because it's a great year for snowmobiles. >> it has been an awesome year for snowmobiles. >> your other partner is out snowmobiling. >> my brother jim is out snowmobiling. you. >> guys have had terrible winters for last few winters. it is trouble for companies like polaris and arctic cat. but this year has been great. >> getting return on investment. >> unbelievable. we have more coming. janice dean said. >> we do, four to six inches we'll take it. >> know 6 snowmobiles, 144,000 sold in the world. most in the u.s. fun stuff if you don't kill yourself. adam: careful, jeff. but looks like you are having a good time, thank you. lori: i thought he was a better driver than that i'm a little disappointed in you, why. anyway, i you think you lost a lot of money on super bowl a

furniture store owner lost 7 million. target officials grilled on capitol hill over the credit card hacks. are they looking into better credit card technology? your tweets and our experts. tracy byrnes and ashley webster take you through the next secure hour, we promise of "markets now." yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the use tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. open to innovation. open to ambition. open to boldids. that's why n york has a new plan --

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tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. target executives in the congressional cross-hairs over that massive credit card hacks. why are companies resisting implementing more secure credit card technology? that's a good question. your tweets and our expert next. tracy: indiana, of all places in the money. we have a fox business exclusive with governor mike pence whose state has a budget surplus. so what can he actually teach washington? ashley: a lot i think. you think you a lot of a lot of

money betting on super bowl. we have a owner of a furniture store who lost a cool $7 million. tracy: what? that is crazy. liz macdonald on the irs handing out $62 million in bonuses. that too is your money by the way. ashley: in tech minute is apple about to revolutionize the tv biz? hints that apple tv may be coming along shortly. all that and much more on the can't-miss hours of "markets now." tracy: they're all can't-miss hours are they not? nicole petallides on the floor of the exchange. lost a little bit on this market, huh. >> we were up over 100 points. now we're up half that. we're up 51 points. so we lost some of the rally we've seen here or at least a bounce-back we've seen from yesterday's debacle on wall street where the dow dropped 326 points. obviously our big drop of 2014. now volatility has been the name of the game of late.

today the volatility index is pulling back. however, it has been hovering near several month highs, seven-month highs for the volatility index. right now the nasdaq is up she quarters of a%. -- 3/4 of a percent. let's look at microsoft. big news this morning. everybody is waiting to find out who is the next ceo of microsoft and now we know it is satya nadella. he worked at microsoft for over 20 years. certainly led moving microsoft into the cloud area. doing well in that. only the third leader in its 40-year history. they have had gates and ballmer. a lot of changing of the guard at microsoft. gates is stepping down. ashley: at least we know. nicole, thank you so much. the cyber threat.

target's ceo in the hot seat over that data breach that affected over 70 million credit cards. we have team coverage including from rich edson who joins us inside the beltway. rich? >> ashley, the pressing question on capitol hill is what congress will do about these breachs? several lawmakers issued bills to create federal security standards and require retailers to disclose breaches. they want retailers and banks to spend more on cyberdefenses. they want security chips and personal identification numbers that european credit cards offer. target says it will spend millions on that technology. >> can you give me an idea what the cost is of a card reader today versus chip and pin? >> i, i don't know the incremental costs, senator. what i can tell you the total investment for us is about $100 million. that is split about equally, putting card readers n our point of sale system and reissuing cards with the chips in them. >> also at this hearing a

executive from symantec, the network security company, they sacred cards with pin numbers are a step in the right direction, making payment systems more secure. still they say smarter credit cards will not guarranty a safe transaction. back to you. ashley: rich edson in washington. thanks, rich. >> there is a question everyone is asking. why are most banks and companies resisting implementing, new, more secure credit card technology? joining us is a man credited with boosting the fbi's cybercrime initiatives. former fbi executive assistant director and current president of cloud strike industries. thanks for being with us. it is a question everyone is asking though. you would think the cost of hacking far exceeds the cost of implementing? >> i think that's right. listening to the target executive in that previous piece, talking about what the costs are in excess of $100 million. multiply that across retailers and companies that accept

payment cards as a form of payment. and certainly is a large investment for all of them. tracy: you know i remember having this conversation a whale back. who holds the burden of blame or responsibility here? is it the company or is it the government? >> you know, it really is a dual responsibility. this has got to be a shared relationship between the government and the private sector. certainly retailers and organizations have a responsibility to keep their networks secure but the reality of it is, it is not just about increasing our defenses but actually looking at those who are actually targeting the infrastructures themselves. tracy: that is the thing too, the targets have changed, the way they're attacking us has changed, right? >> the well the adversaries are constantly changing their tactics. the offense outpaces the defense. as quickly as we develop new defenses they change their offensive strategies. the object they need to get the data. they want to turn it into financial gain for themselves.

because value is so high they will spend a lot of tile and investment getting into these organization databasss to get information that will help ingratiate them. tracy: that makes it seem we'll never beat this, right? why are we not spending time and information to beat them? we always joke about hiring the hackers. how do you stay one step ahead of them? >> well, trace sit networks are so vast, think about trying to protect a building if you would in the fiscal world with 100,000 doors on it. really, really a change. the same thing with these networks. there are so many opportunities to get into the network you will never stop them completely. what organizations need to do is work? in a more coy lab a tiff way to detect them when they get in. if you intervene when they make access you can mitigate the consequences. the problem we see is adversaries on networks for months or years at a time. we see that quite often. they can really damage companies to a significant extent.

tracy: can i be proactive myself if you work with a company that you don't feel is doing enough to keep you safe, what do you do personally? >> certainly individuals have a responsibility. first of all you've got to be aware. what we've seen recently in the media with target and other retail breaches, people are aware this is an issue. they have to be vigilant to protect their numbers, protect how they're being used. i think that individual consumers can impose upon the congressional representatives to take actions to make this much more secure environment. i think congress has a responsibility to implement some more strategies as he will. again it is govvrnment and private sector working in collaborative way. tracy: sean, before i let you go, they asked you what sectors were most vulnerable. you might as well-said, all of them. seems any organization, any store where you use your credit card, debit card you're at risk. >> i actually did say all of them, that is exactly right. anybody connected to the network

are potentially have aniable. adversaries are looking to access on any computer that might get them availability to get on to another network. there is nobody who is completely secure. everybody is at risk and vulnerable. tracy: scary stuff. sean henry of cloud strike, thank you, sir. >> thank you. ashley: well, from target to the irs, targeting scandal. despite claims that agents spied on conservatives the tax agency reinstated bonuses for all of them. how lovely. liz macdonald joining us with her bottom line on this story. liz? >> good to be with you, ashley and tracy. you know this cops fast on the heels of the president's interview with bill o'reilly where the president said, you know what? there is no corruption to be found in the irs targeting scandal. let's listen to what the president told mr. o'reilly. >> no corruption saying. >> that's not what i'm saying. >> you're the leader of the country. you're saying no corruption? no, none? >> there were some boneheaded decisions. >> boneheaded decisions but no massive corruption.

>> not even mass corruption. not even a smidgen of corruption. >> okay. tracy: what we're seeing right now is what is happening at the irs they are moving to reinstate bonuses of more than $62 million in bonuses will go out to irs employees, ones who are high performers, a quote from the irs. that is still down from about $89 million in bonuses handed out in fiscal 2012. so what has been the reaction to it? well a gop senator out of utah, senator orrin hatch had this to say. let's look what the utah senator said. he understands that not every irs worker was responsible but this is the wrong signal to the send the american people who are rightly outraged how this agency treated people for their political views. separate from that, what is happening at irs? very tough tax filing season coming up. an estimated 30% of your viewers phone calls will not be answered at the irs in a timely fashion. and also, we're essentially seeing that the national treasury employees union in

their collective bargaining agreement said you know what? you have to pay irs workers wages. we know that the dollar amount of the budget of the irs is up about 50% since 2001. number of tax returns filed with the irs, still up only about 6% in comparison. so they will be tracking these developments as they come in, bringing you the latest stories. back to you guys. ashley: i'm just interested, what do they get the bonuses for? the most audits or most money recovered or what? >> that is a great question. for bringing in more money. closing the tax gap. doing a good job, answering phone calls. timely -- ashley: doing their job in other words. >> that's right. and basically collecting taxes from you and i so. back to you guys. ashley: doesn't sit well a lot of people. liz macdonald, great stuff. >> sure. tracy: you need a bonus to do your own job. how about that? calls on president obama for help to end the propane shortage during this winter of discontent. we have an exclusive interview ahead with indiana governor mike

pence. ashley: one industry is booming with all the snow. you don't want to miss jeff flock's look at the snowmobile industry. you knew it. he is riding one. >> i love that. up next the furniture store owner bet big on the denver broncos and you know how that worked out. he has a lot of happy customers though. we'll tell you why. don't go anywhere. capitato make it happen? that makes it real? what's a vision without the expertise to execute it... and the financing to makit grow? whatever your goal, it can change more than your business.

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ashley: time to take a look what is hot on foxbusiness.com. kate rogers joining us in the newsroom with what's trending. kate? >> hey there, ashley. well in our number one spot we have a story by senior reporter matt eagan again on microsoft ending the search for a new ceo, tapping sat yamana della and moving founder bill gates to role of technology advisor. number two, personal finance column by our famous dave ramsey on different things you should never give to debt collectors if you wind up getting in trouble with them. in the third spot, still hitting hard from yesterday is emac's story on gm pay back and after what they pay pay merry berra during his state of the union

address when he called for higher pay and equal pay for men and women -- mary bear ray, i was talking to my wife about that. she goat certainly upset. >> 48% less. still hitting very hard. ashley: kate on r rogers in foxbusiness.com what is trending in the newsroom. thank you, kate. >> thank you. tracy: these markets are sort of trending. what are they doing? ashley: whole lot better than yesterday. tracy: we have to get a check on them. nicole petallides on the floor of the exchange. i know you're watching jcpenney shares sink. >> dow is slightly higher. safe havens of gold and utilities have been out of favor today. what is also out of favor is jcpenney. everybody started to move a little higher on the latest same-store sales numbers and holiday numbers. then everybody sold into the rally, the slight rally we saw for jcpenney. as a matter of fact, stearn agee put a $3 target. jpmorgan put a $5 target.

it went down to $5 already. down 11.5%. hit a new low of $4.90. came out with same-store sales that were positive over the holidays, up 2%. so that was good. it was the first positive same-store sales they have seen in 2011. you know what? wall street says not good enough, jcpenney. so the turnaround that the ceo is saying is on track, people are just seem to be non-believers at least at the moment. back to you. tracy: yeah, that's for suree nicole, thank you very much. we'll see you in a bit. so i'm supposed to say hbfb. i didn't know what that meant at first. ashley: code. tracy: apparently happy birthday facebook, 10 years old today. how about that? shares are up a buck and a quarter, $62.72. the social network by the numbers next. ashley: a new threat to the security of one olympic team's athletes. we'll have details ahead on fox news minute. first as we head to the break, let's look how the u.s. dollar is moving right now with the market recovering from

yesterday's big selloff just a little bit. a the euro down against the dollar but most of the other currencies, including the pound and canadian dollar actually gaining some ground. we'll be right back. 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.

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>> at 19 minutes past the hour i'm lauren green with your fox

news minute. russian president vladmir putin arriving in sochi as the city enters the final stages of preparations for the winter olympics. two days before the olympics begin two austrian athletes received a kidnapping threat. it contain as threat against a alpine skier and skelton sled racer. president obama looking for major commitments from several u.s. companies worth $750 million to connect more students to high-speed internet. microsoft, apple, at&t and sprint are among the companies. this is part of the president's goal to have 99% of american students connected to high-speed internet. defense intelligence agency chief michael flynn says the pentagon will have to make costly changes to its programs because of leaks by former nsa analyst edward snowden. flynn says his agency believes snowden took every document he accessed and that much of it concerned pentagon operations. those are your news headlines on the fox business

network. now back to tracy. tracy: lauren green, thank you very, very much. as i mentioned we're having a birthday. no, not mine. although that is really cool. we could do this in august again. happy 10th birthday to facebook. shares of the social network are up 60% since the first day of trading may 18th, 2012. the first day you remember was marched with total technical problems at nasdaq -- marred. despite that they raised $16 billion, making it the third largest in history. facebook has come a long way from ceo mark zuckerberg's dorm room and has over one billion users, still not me but one billion users. 57% of all adults are on facebook, it's crazy and half of all facebook users have more than 200 friends according to the pew center. that must make everyone feel good. as to the future of facebook, mark zuckerberg post ad statement on the facebook page

saying quote, social networks are mostly about sharing moments in the next decade. they will help you answer questions and solve complex problems. happy birthday, facebook. ashley: $7 million, not such a happy birthday i guess. that is how much a super bowl bet cost the owner of a houston furniture store after the seahawks thrashed the broncos but he says it was well worth the cost. joining us is jim mcingvale, owner of gallery furniture. jim, thank you so much. it was not really a bet. explain to me what the deal was and how many people actually are going to share in this seven million. >> it was a promotion to get more sales in our furniture store, gallery furniture, houston. so the offer was, you come into the store 10 days best big game or right up to kickoff, by $6,000 or better worth of furniture. have it delivered before the kickoff. if the team from seattle won the big game in new jersey you got

your furniture free, free. that is what happened to over a thousand houston families. ashley: over a thousand people took you up on that. so, i guess the obvious question is, were you injuredsured? >> no, we weren't insured at all. we were, we're eating it all. gave me a case of indid i guess shun but a -- indigestion but a great marking effort. ashley: so what did the accountant tell you? >> he is getting older quicker. he has more gray hair and might have a stroke or heart attack. i'm happy at gallery furniture, our philosophy is if it is good for the customers it is good for us. millenials who are affluent. a lot of customers never been in the store. so we brought in 80% new customers and big spenders and got money back, have a lifetime positive memory of gallery furniture. our job is to convert them into

lifetime customers so we get the $7 million back. ashley: i should buy a love seat right now, jim. you're a great salesman. so how much does the 7 million represent to you? how much of a loss is that to your business when you consider the sale. >> our annual sales are about $120 million. so it is about 15% of sales. i consider it really not a loss as a marketing cost because we've gotten great publicity off it around the world. a lot of publicity in houston and lots of goodwill from the customer. at gallery furniture we're about promises made, promises kept. if seattle wins the big game get 100% of your mon. we're refunding lots of money to customers. it will be a marketing coup that will last for decade. ashley: you're a natural, jim. very quickly, when is the next game will you offer this bet or give it a while. >> we've done this type of things for many different sports activities some right now we're thinking about world cup, maybe winter olympics, who knows. we'll do things that the make

the furniture store relevant and exciting and gallery furniture has been the hot topic in houston the last three days. that is what we're trying to achieve, do something hot, topical, relevant for great customers. and we delight customers, if we do that, we win. ashley: you have a lot of happy customers that's for sure. thanks, so much, jim "mattress mack", mcingvale, gallery furniture in houston, texas. thanks for being a good sport and joining us. >> thank you very much. congratulations to seattle and congratulations to all our customers. ashley: got one in there. jim, thank you so much. tomorrow on the 2:00 p.m. hour by the way we're joined by mark kaufman, the owner of a furrier, that outfitted broadway joe. i guess it was not quite as cold. his business by the way booming after joe namath wore the fox and coyote coat and was way overheated because it was not as

cold. tracy: good for them. ashley: was he a character, "mattress mack"? tracy: he could sell ice to an eskimo. ashley: coming up in the next half hour of "markets now," banks go to pot. why the banking industry is hoping for a legal ruling to roll up marijuana profits. >> indiana in the black, we have fox news exclusive with governor mike pence whose state has a budget surplus if you can believe that. what can you teach washington? the dow is up 69 points. don't go anywhere.

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this stock is up 0.3, $0.76 at 3737, yesterday saw the huge pot of positive breast cancer trials and the growth from that drug has pushed jefferies to upgrade the drugmaker to buy from hold raising its price target $5 as a result, pfizer continues to gain ground. good couple days. nicole petallides on the stock exchange looking at another winner, michael course. nicole: michael course, luxury retailer from handbag accessories, the stock is doing great today. let's look at what it is doing, 17% off of its earlier highs of the day. if you thought it couldn't go higher than 17 bid with a new all-time high today over 52 weeks, also a stellar performer, 40%, clearly outpacing its rival, names like coach. coach has been a laggard, up and

the course taking marketshare, and earnings per share, and stellar demand coming and demand in north america and europe. sales selling, more selling, more demand. grain news for michael course. tracy: across the nation, kicking out 2014 with good news, 19 have some bragging rights. budget surplus. indiana is one of the amended is governor mike and joining us for this fox business exclusive. i will allow you to global little bit. the budget surplus for fiscal 2014, 6.9% unemployment rate in 2013 and you were still able to lower taxes. so tell us straight up, don't give me a blanket political answer, what do you think worked, what is working to your

advantage that helps you get to this point? >> thanks for the opportunity. it has been a consistent pattern about putting fiscal responsibility first. of the more than a year ago, we said we believe fiscal integrity is the foundation of prosperity, and honestly balanced budget, increased funding in schools and roads, we also passed the largest tax cut in indiana history. it is possible to do it but only because in indiana we have been applying a lot of common sense, making hard choices even through these difficult years, that is why we are opposing the end of this fiscal year and $100 million surplus and $2 billion in reserves. tracy: kissel this to your people too. i am from new jersey.

talk about cutting anything from my home state, you somehow were able to convince people of indiana that all this stuff works to the benefit of our future. how do you do that? >> hoosiers are the best people on earth. tracy: got to defend jersey. >> of course. my predecessor governor daniels, his administration, our administration have been able to build a consistent record of fiscal responsibility on the fact that hoosiers are people who believe you need to live within our means, whether it's family but a business but or farm budget and talking in those terms, making hard choices in the recent past put us in a position where when i was elected we were looking at near record surpluses. after we invest in roads and schools let's make sure we pass the kind of tax relief that will continue to build on that momentum.

unemployment was 8.6% one 9 elected at 6.9%, still too high but we are determined to continue to promote the policies that will number one demonstrate fiscal responsibility, and continue to encourastments that hoosiers to work and even in this current session of our general assembly we are passing or pushing more tax reform, more education, innovation in addition to being a right to work state, low tax state. it makes indiana and attractive investment. tracy: washington could take notes. that is what we need extrapolated out of indiana to come out of washington next time congressional leaders get together. what do you do with the money with this surplus? you have this $93 million. what are you going to do with it? >> it is an important debate. tracy: hold onto for rainy day. and underfunded pension out

there too. >> our pension is funded strongly north of 80%. i will tell you what we are driving at today is to make the kind of tax reform measures, talking about changing business personal property tax, changing the corporate taxes, we want to make indiana more attractive for the investment even while we invest additional resources and infrastructure. indiana has the best location in america for business where the crossroads of america but we got to have the roads to back up so we are driving toward that. to your point about washington d.c. what indiana has been doing for the better part of ten years is rolling out sleeves up focusing on what works, focusing on government as good as our people, living within our means, promoting economic freedom and is working. tracy: before i let you go i got to ask about propane. you guys have seen, price

practically doubled, what would you like the white house to do about this? is not getting to your people. >> i joined a number of governors across the midwest, republicans and democrats calling on this administration to take all action available to the administration to ease what is a very serious shortage of propane. we have taken action at the state level to make it more possible for the divisible load standards and encourage farmers and i encourage all of your viewers that work on a farm space is go out to the propane tank, if you don't have livestock check your tank and if you have excess reserves you are not using in the winter call your supplier, have him come and get it back into the marketplace because what we are dealing with is a shortage of supplies. yesterday we call on the administration to take all available action but at the end of the day we are going to

continue to look for ways to get more propane supplies into the marketplace which have a million hoosiers' heat their homes with propane, hoosiers that with or the culture and livestock the pend on propane in the winter we need more supply. tracy: a great idea to go home and do it among the people. get into the market. thank you for taking the time, sir. ashley: moved it or lose it. google forced to move its mystery barge from the san francisco bay. construction complaints led to investigations that showed required work permits were not filed. the treasure island development authority leasing the space says they have not violated any part of the process and will file for the proper paperwork no matter what is on it. 3/4 of 1%.

apple quietly building the internet infrastructure with the ability to deliver large amounts of content to customers. this will give the company larger control over the distribution of its offerings should it decide to move further into the tv room. apple has signed long-term deals locking the band with and hiring more networking experts, more to get television plans off the ground. last week's earnings call ceo tim cook said apple is on track to break into new product categories this year. could television be one of them? stay tuned. the best-selling video game of 2013, grand theft auto v, the latest installment sold 32.5 million units, holiday demand, nothing says holidays like grand theft auto, helps the company become the top video game publisher of 2013 according to the mtv group. this is good news, released an outlet for the fourth quarter

that missed wall street expectations. the stock down over 9% today. interactive software. tracy: banks want fair share of marijuana revenue. what is a day without a marijuana story? the ceo of consumer bankers association up next. ashley: from smoking profits to ice cold cash jeff flock on an industry making some money on all this. jeff: the snow mobile is back in a big way. i am not very good on these things but who is? we will tell you what stocks if you want to play with snow mobiles you can play with stocks, which once they are when we come back. if i don't crash. [ chilen yelling ] [ telephone rings ] [ shirley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was the trip? [ male announcer ] with nearly 7 million investors...

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[ woman ] i love the convenience of adt. i can finally be in two places at once. [ male announcer ] call today to get adt for less tha$2 a day. helping protect your business, is our business. adt. always there. adam: adam shapiro with your fox business brief. radio shack will close 500 stores within a few months. the struggling electronics retailer operates 4500 locations. no comment from radio shack. the fda approve the camera you can swallow that can help detect early signs of colon cancer. the device made by an israeli firm has a battery operated camera that transmits images allowing doctors to screen for possible intestinal issues. home prices up 11% in december year over year. core logic says last year was

the strongest since 2005. economists see price growth slowing this year but available housing inventory remains tight. that is the latest from fox business network giving you the power to prosper.

ashley: the legalization of pot and growing use of bitcoin proposing dilemmas for the country's banking system. are they business opportunities or dangerous minefield? joining us to talk about it is the president and ceo of the consumer bankers association which represents the retail banking industry. thank you for joining us. interesting situations coming the. let's begin with marijuana. it is difficult because we have a couple states that have

legalized it. can banks take money that has been generated from the sale of marijuana which is against federal law? the banking industry as a whole, this is a very touchy difficult situation, is it not? >> he just hit the nail on the head. a federal law we need to worry about in the banking industry, we are regulated by federal regulators like the fdic and the fed 20 state to legalize it in some form or fashion. not the case on the federal side. just because the department of justice says it is a legal law in 20 of the state's banks the been reluctant to get into that business. ashley: attorney general eric holder insinuated is the best way of putting it that prosecution of these things would not be a top priority but on the other hand talk is cheap and you don't want to be left holding the bag so to speak. >> we have learned a bit from washington d.c. the last couple years just because one regulator said it is okay doesn't mean it is for the bank.

we have regulatory olympics going on in washington before any bank moves forward, all four must be on the same page. ashley: banks in washington state where marijuana has been legalized are they taking in money generated from these sales? >> there are 7,000 banks in this country and they have to decide on their own whether they want to participate in this activity. banks over a billion dollars, i don't see any bank rushing to receive the marijuana money. ashley: let's move on to bit:. the popularity is growing. what is your take on bit:and the banking system as a whole? >> the same case as marijuana. the federal regulators come and get clear guidance to our banking system we will be reluctant. remember what jamie dimon said week ago. we are under no your customer rolls as mandated by federal

regulators. we have to no customer transactions inside and out and with bit:while it is popular with certain segments across the world and in some countries it is brand new to this country, a gray area. i owner originally bought bitcoin. an interesting process to go through. i have not purchased any products just yet. that is my mission for next week. i think bitcoin could be a major disruption of the banking system or a fad of the day. ashley: interesting. there are reports that there could be a plan or at least talk of a plan that could create a centralized network to compete with bitcoin because bitcoin is very decentralized. could you see that scenario? >> that is so far down the road, not possible for the next year. some customers like bid:. define make a prediction i think it will be around. for a couple decades but on a

more limited basis. ashley: let's talk about security if we can and data breaches. obviously the ceo of targets in front of a congressional committee being put through his paces, why is it many countries, 130 countries use these cit and pin credit cards that are not used in the united states which makes it so much easier for hacking criminals to get into our bank account? why has the u.s. been slow to embrace this technology? >> it is great that target has acknowledged they will spend $100 million improving technology, we are spending $250 million replacing 25 million cards because of the target data breached. you have to keep in mind if you go -- let's make something clear. cit and penn would not have prevented what happened that target, michael's and other merchants.

retailers are saying that would be the queue or all of for all things. not the case. the fact is the go to cit and pin would never have been all fraud. every single entity would have to participate. that means everybody from louisiana to target to a small bank in minnesota to wells fargo would all have to adopt chipped and pin. everyone would have to do it and it is expensive and there are some savings to be gained but everybody must get there and i think we will get there. retailers are committed to it and banks are committed to it, visa and mastercard announced by october of 2015 they will have it available to their merchants. we are getting their but keep in mind the banks of always had to pay for the merchants. it is time we go back and ask congress to create a level playing field between banks and merchants. we have to notify rightly so our customers the moment a breach

occurs we make the consumer hole. glad to see target representative would have no liability. it is the banks paying for target's mess. we need a level playing field. ashley: a more secure system. the consumer bankers association, thanks for joining us. tracy: let's get a check on markets? and not having anybody on the back but at 2:00 markets were heading down and they turned around and little bit. the dow, s&p and nasdaq call up, we are at down 76 points up 38, s&p 500 up 14. worst slump in six months after the manufacturing record and everyone waiting on friday's jobs report.

oil closing up $0.76 at $97.18 a barrel. ashley: it is all down to us. one industry is booming thanks to the snow. you don't want to miss jeff flock's look at the soda industry. he will be up very soon.

tracy: it has been such a long winter already since yesterday's storm left in northeast and northwest, another one on the way, dropping got even more snow than the last one. winter weather advisories issued from new york city to chicago as a round of travel delays are expected, the storm will turn to rain as it moves toward the coast which is bringing fears the roads may freeze with ice

later in the week, get out yourself, slocum you tomorrow night expected but jeff flock never complained that he is live from peru and a boy having the time of his life in all this. jeff: if you have to be out in the cold you might as well have fun with it. this has been of perfect year for the snow mobile. the industry is back in a big way after a couple years of winners and warm winters. take a look at someone who knows what they are doing. show what these are due. these of the polaris throw. but these snow mobiles do, and this year, last year, the 134 -- oh oh! 144 of those. and in the united states, an important pocket for polaris, and i want to talk if i can,

where is the stopper on this thing? >> we had a great year. it was unbelievable. we love this weather. jeff: you had a long stretch of snow and cold which means the rivers and lakes all frozen too. >> it has been crazy. >> show me what one of these will do, put your hat back on. both fun thing about snow mobiles is taking them out and doing what they do. it has been a great year for the snowmobile. he can really rock that. oh baby. i am not trying that. tracy: i am going to sound like your mother. where is your helmet? he is not even answering me.

disappears into the sunset across the road. thanks for joining us. coming up on "countdown to the closing bell" an update on jeff flock's condition. facebook turns 10, liz has more ahead including facebook and epstein years and whether they will remain the no. one social networking site on the planet. don't go away, we will be right back. 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 ] [ le 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. there's nothing like being your own boss!

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liz: can stocks do what the denver broncos could not and make a comeback? what has really rattled investors nerves? we ask if it is earnings, the economy, international market or something else. they will tell us where to put your money. >> developed first, develop first. liz: microsoft flashes the

spotlight on a new ceo from within the family, so who is it and what does it mean now that bill gates is out as chairman? plus, facebook. now at the ripe old age of 10, facebook has a few tricks we can all like but what will the tween years the like? "countdown to the closing bell" starts right now. liz: good afternoon, everybody, i am liz claman. i am calling and audible, we have to look at jcpenney and this is why. jcpenney came out with numbers that were up modestly. the stock moved higher. it is now reversing, down more than 9%. this is