see what i do, cheryl and at ad, it is now yours. cheryl: i would like to see that bread onnbreak action happening in the last hour. you really went after him. adam: thank you very much. hello again. cheryl: too big and efficient for its own good. breaking california to six separate states gaining traction. the man behind the plan, joining us exclusively as a proposal gets closer to a vote. adam: retailers pointing to brutal cold temperatures for two months of this mall sales numbers. nice try, another fox business exclusive, the retail insider and former toys "r" us ceo calling their bluff, what is really to blame.

cheryl: the weather is back, driving down temperatures across much of this country. we had a forecast for temperatures will be as much as 40 degrees below average. but first, stocks now, in rally mode. the new york stock exchange with nicole petallides especially on the s&p has been great today. a new intraday high. nicole: that is right, record all-time intraday highs. up 1.1% for the s&p. the nasdaq hitting levels we haven't seen for 14 years and the dow jones industrial not too shabby 186 points, also 1.1%. most of the names have been winners. let's take a look at ebay, activist investor carl icahn

issue letter basically once again proposing to spin off paypal, bringing in about 40% of the revenue, taking issue with a couple of the board members saying there is a conflict of interest. ebay saying nothing of the sort. adam: the push to break up the most popular state in the united states is gaining big traction. splitting california 26 separate states cleaning california has become tw too big and efficient. thethey've been given the green light to get it on the ballot. joining us with a fox business exclusive, the man behind the idea. this really is a big step if you can get enough signatures the voters of california can tell the legislature what they think of this idea.

>> i am sure we will get the signatures. we're deciding 2014 or 2016, but we are very excited about this and we think legislative analysts did a very fair analysis if the californians came to fruition. cheryl: the big controversy is what this would do as far as the u.s. senate goes. california 12 senate seats, congress would have to approve any decision to break california into six states. do you have any hope anybody in washington will agree with this plan? >> local government is better, in general local government is better, people are better represented, they understand who the governor is. new york might end up saying we

need free states and texas macy we need five states, florida may need to go, we could end up with 60 states after all is said and done. we are the government, it isn't just a few people in washington. and they are our representatives. we believe the right thing to do is create six new california's was currently california. the voter will drive that. adam: let's get to it, who picks up the dead? california has huge amounts of debt, and the eighth largest economy in the world. it wouldn't be an equal distribution of the wealth in california, how do you get over that hurdle? >> the way it is set up,

individual states will have roughly a year to self organized. figure out who has what that. if they can't come to terms on the debt, it will be divided according toopopulation. cheryl: you need 808,000 signatures, but you have a july deadline to get this on the november ballot for california voters. how many do you have, are you hopeful you can make the july deadline? >> we just got the title and summary. so the starting gate just opened. so we have none yet. we expect to be able to do it though. it is not unprecedented to get signatures that quickly. adam: how do you break apart these contracts or obligations for the water rich portions of the state, you're going to have

central california, fresno and bakersfield in competition with north california. how do you break all of that the people feel they got what they want? >> all of that is done by state context today. that is busily the way it is done today. colorado has a deal with california today. all the other states have various contacts to assured the right amount of water gets to the right places. i think what is great is various states will be able to have better control over what happens to their water, they will have a better feel for what happens to their water. a big issue for central california basically create most of the food for all of us. cheryl: especially with california and drought conditions tha it hasn't been sn for decades.

university of california los angeles when made a comment about this it is fun to talk about all of this, but the prospect for california being broken into six states is nail. you'll probably hear a lot more of this try to get it on the november ballot. what are your battle plans for a p.r. perspective? >> anything can happen in politics, anything that happen in the world. did we ever think we were going to have cell phones that were able to do all that they are able to do in that kind of timeframe? it is not unprecedented, ohio broke away from pennsylvania, maine and massachusetts broke from each other. we are the government, it is for us to decide, and if it is the right thing to do, i think it will get into the consciousness of the voter and the voter will come to the conclusion creating six new california's is a good thing to do.

in fact, by creating six new california's, the voter can start thinking about what would my more local state look like, and once they get over that hurdle, they start thinking maybe this is the better way. it certainly has to be better than what we have got right now. we're spending the most for the worst service. we spend the most for education and we are 46 out of 50 states and education, we spent among the most for prison and among the highest rates. we used to spend 26% on infrastructure and now it's been 3% on infrastructure. we used to have the greatest state in the world, and i believe it can be the greatest state again. adam: you brought up an issue dear to my heart with ohio breaking away. thank you very much.

cheryl: i am sure they would each want to be their own state. adam: the five boroughs, talked about breaking them apart sometimes. cheryl: someone is laughing because she is part of this debate. netflix striking a deal with comcast offering stream smoothly in the new agreement could set a precedence for how the service deals with other broadband providers. she has the bottom line. >> tracking the speeds of people downloading "house of cards" across the country, and reports have been out there are traffic jams, congestion, people are seeing slowing downloads of say "house of cards" since september. basically paa comcast to stream more quickly the video content to the customer.

they don't want to lose those customers, it is a plus because essentially the air force netflix to pay in to get the content delivered. adam: this bend of the debate of net neutrality. this bypasses the issue of net neutrality and won't cost the consumer anymore, right? >> reports mutually beneficial because we don't know if it could cause more issues, but time warner, comcast deal could say both washington, d.c., struck this deal with netflix, we don't need you to be looking at this. what wall street is also looking at, netflix balance sheet to pay for streaming content last year, only about a billion dollars. cheryl: we have some breaking news. thank you so much. adam: that breaking his right now, the governor at the white house getting headlines from oklahoma governor who says the president told the

governor's a keystone decision would come in the next couple of months. the decision on on the keystonl pipeline will come according to the governor in the next couple of months. peter barnes lie that the white house with more on how the meeting is going. peter: that is right. just breaking up from their meeting here. oklahoma governor is the head of the national governors association this year and she was telling reporters the keystone pipeline came up and president obama said he would try to get an approval of that wrapped up 1 way or another in the next couple of months and they all just left the white house to wrap up their meetings. they said they also talked to the president about numerous other issues, jobs, the economy, education, training, the drought out west for the western governors, transportation funding, medicaid. the president use this meeting

to hedge his proposal increase the minimum wage. president obama: for the call on congress to raise minimum wage last year six states have gone ahead and done it on their own. last month i asked more business leaders to raise their workers wages, last week said they would lift wages for thi the 25,000 os employees, several of you are trying to boost wages for your workers, i'm going to do everything i can to support those efforts. peter: republican supporters that he wants the president use his executive authority to speed up energy expiration and production on federal land with new permitting as well as delayed mandate in obamacare. back to you. adam: thank you. cheryl: don't look now, but we have a rally on our hands. the s&p 500 is notching another new intraday high today on track for a record finish as well if

it can close above 18.48. next line if the market can hold a few, which is where we were before the late january dip. adam: the opportunity for massive realignment as uncertainty reigns in the country. cheryl: microsoft broken windows. trying to boost sales of the windows operating system. "markets now" will be right back. [announcer] welcome to t all-new intuituickbooks.

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scan receipts with it. sync this stuff with that stuff and that stuff, with it. maintain your sanity with it. this is yousiness on the all-w quickbooks. maintain run with it.with it. cheryl: wall street kicking off the week in rally mode. u.s. stocks sitting in ppsitive territory. recovering from last week's losses. hitting and intraday high on track to achieve a record closing high as well if they can hold that magic number 1848 and change. we will see what happens, but managing director is here. first off, can this rally hold, have we move past the january effect? >> we will probably have a little bit of consolidation

because we have had a heck of a move the last couple of weeks but a lot of different things were looking at tailwind for this marketplace right now. first will the street is very underweight u.s. equities. recent bank of america survey showed 11% of u.s. managers are overweight u.s. equities. the street is very short stock. they said our short book, how many shares they thought would go down is the highest ever. everybody seems to be very sure of this. goldman sachs just saw in february 1 of the busiest months for buybacks ever. we have a lot of systemic reasons why the tide seems to be coming in for u.s. equities now whispering to see retail jumping back in. last week over $7 billion come back in from the retail clients. through the day reversal from we saw in january. >> how would you characterize

where we are today? >> i think it is positive, things are picking up, the attitude of business leaders is much more positive encouraged by what is happening in the equity markets and elsewhere. less pessimistic then we were before. still not seeing employment being driven to the degree that we would like to see it at the fomc, but has improved. recovering 90% of the jobs lost in the great recession. >> we are definitely seeing sentiment improving, but wouldn't say sentiment is great. whether it is a formal cataract or dodd-frank which is still hampering a lot of businesses from probably hiring, from expanding. still trying to figure out how this is watering through the economy. we have the weather affect. yet another polar vortex bearing down on the united states, so the economic data smooth this

out over the next couple of months how much i'll back we seen in recent spending and how much in the shift of the economy. one other thing missing is natural gas and propane prices have absolutely skyrocketed. average american is paying a lot more this year than they were last year for these fuel costs. hoping for some sort of relief but probably causing them to tighten down on their spending a little bit so we need to see what the effects of this are. probably why the fed is not aggressively doing ttpering right now but smooth, controlled steps. cheryl: we will have you back and talk about etf. adam: ukraine would like a word. i warn has issued for a former president as leaders discuss an economic package for the violence torn country. cheryl: mark zuckerberg speaking out in barcelona.

what he said about the $19 billion acquisition of whatsapp and the weekend outage. adam: we went off-line. in the newew york, we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changinideas, like this: dozens of tax free zones across new york state. move here. expand re. or start a new bu and pay no taxes for 10 years. with new jobs, new opportunitie and a new tax free plan. there's only one way for your business to go.

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adam: time for your "tech

minute." i do stuff cutting the price of windows 8.1 by 7% to compete with cheaper products. $15 what computer makers will be charged to license windows 8.1 compared to the standard $50 fee as the new ceo gave his first interview to "the new york times" saying his job isn't about money, it is to think about innovation. facebook's acquisition of whatsapp had in outage this weekend for more than three hours on saturday. there was no service of the whatsapp messaging app. server issues were to blame. it was the biggest acquisition in history. in barcelona, mark zuckerberg said whatsapp represents a great bid for the growing social network and had a goal to connect everyone in the world. shares of facebook in record

high territory. trading $71. shares of blackberry soaring as it will make the messaging service available to microsoft windows phone and the upcoming nokia platforms. if fox business exclusive interview ceo says the company will remain whole and public. he said that he can't rule out any options in the future should they be in the best interest of blackberry the shareholders and customers. cheryl: a news alert in ukraine. issuing an arrest warrant for victor whose whereabouts are currently unknown. he is wanted for crimes against protesters at least 82 people have died in clashes just in the last week alone. the crowd gatherrng remembering the fallen tailing them as national heroes.

the u.s. is losing influence in eastern europe hitting some experts to question whether the united states is fully engaged in actions i could help we can rush us reach. let's go live to d.c. and chief washington correspondent. james: the story is incredible, few would have predicted one week ago ukraine's president would be a fugitive from the same security services he once led. that is how rapidly and dramatically events have unfolded in the capital. now confronts u.s. policymakers is decisions about how best to engage the opposition whose influence has suddenly surged and how to counter the influence of russia which has the equivalent of $40 billion in bank exposure in its neighbor to the west. even before the flight of the ex-presidents, john kerry had been holding talks with key opposition leaders and state department officials have been urging ukraine to work with the international monetary fund to

achieve basic economic stability. >> this is last about influence more about the ukrainian people. we should always be on the side of people and their freedom. we not always field provides substantial help but we should always be on the side of freedom. james: they say the u.s. to use this opportunity to show its allies in the baltic that washington has their back. cheryl: james, thank you very much. adam:: retailers bluff. are the temperatures really icing a shoppers wallace? no way says former plays a russ ceo. what is really to blame next.

cheryl: you want to look at the market today. the dow up 182 points. we are going to head back to new york stock exchange for the long list of stocks hitting new all-time highs today. we will be right back. ys s be thman with the plan but with lesergy, moodiness, i had to do mething. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t velso normal in aut t weeks in most men. axiron is not for use inomen anyone younger than 18 or m with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs

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cheryl: the markets are rallying. there is coca-cola for you. it really is the s&p 500 today. the nasdaq hitting a 14 year marker. take a look at the s&p 500 right now. this is the five-year chart.

this is a number we have not seen since the year 2000. remember, the great recession, the financial crisis, all of it. here we go today. there is your s&p 500. nicole petallides is on the new york stock exchange. nicole: it really is easy to find 20 of winners today. new record intraday highs for the s&p 500. take a look at the nasdaq. take a look at the winners we are watching.

business confidence in germany. back to you. dennis: thank you. let's talk about retail. we spent several years at target. they cannot blame the bad weather for their squeezing margins and lack of sales.

all the way from. adam: how does a retailer, i understand that, maybe that is something i would want to buy. how would i choose a brick-and-mortar retailer? >> two dominant themes in retail today. it also means you can associate with a consumer anyway you want to do business. a very strong e-commerce.

terms of value retailers, we are seeing even walmart. they said things were pretty tough right now. you see retailers like dollar stores. a dollar general, for example. doing quite well in this environment. stores like tj maxx. costco. known for a llng time. a place to get a great value and doing very well. come. eventually, spring will there will be a fall. what is their excuse when it is warmer? >> the economy. all of that is true. the consumer is very stressed. the employment levels really have not moved that much. employment levels are not any higher. essentially, there are a lot of people looking for value every day when they go out shopping.

adam: consumers, you know, spending was up four tenths of a percent. consumer confidence may be shaky. the unemployment outlook looks really good. >> i think that is pretty meanwhile, some of the growth has been in good like automobiles, for example. home categories. not in items we buy and sell every day. not in groceries. not across the board. stuart: i just had the opportunity to interview the head of old navy. who else is doing it right from your opinion? >> i believe that the dollar stores are great. anything that is hard discounts. lower-priced than though martz.

they can wait long enough for that discount, that promotion. they can outlast the retailer. retailer after retailer promotes activity in order to remove the goods. adam: this is something we will be watching all year long. lori: cheryl: speaking of bad weather, winter is not over yet. when the quill pen pitchers will reach your neck of the woods. adam: puerto rico going hat in hand to investors. charlie gasparino has the exclusive details. the returns that are too good for wall street to resist. ♪ ♪ ♪

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♪ dennis: i am ashley webster with your fox business brief. to continue reducing the monthly bond purchases and $10 billion increases -- the tax uncertainty and regulatory worries are holding down the economy. to radiofrequency chipmakers are joining forces. rf micro is buying a $1.6 billion all-star deal.

comedy filmmaker harald ramis has died. ramis was also a writer and director for hits like "caddy shack" and groundhog day. he was 69 years old. that is a very latest on the fox business network. giving you the power to prosper. ♪

cheryl: some investors are lining up to buy puerto rico debt. is it really that great of a deal? charlie: here is what we know, major hedge funds are lining up to buy this deal. it is likely to push the deal.

up close to $3 billion. you have people in distress funds and hedge funds that are salivating for a 10% yield. here is their play, guys. you are the average person. they will buy this deal. they believe bonds will rally on the deal. puerto rico will essentially get a lifeline. that is a familiar sort of thing that went on during the financial crisis. the question is, do you hold onto her bonds when you sell on the rally? every hedge fund executive that i talk to is saying sell into that rally. puerto rico will be back. this deal essentially is this. get your hands around it. in and of itself, it is a deficit financing. adam: 250 million is the whole.

>> it is essentially a deficit finance. you get through this year. that is why the bonds will likely rally on this. though? it becomes a share in year after. my thing is, if you are in average investor, love the 10% yield. this.ge investors will not die let's be honest here. this is a widely held bond issue. i know lots of retired people. i know lots of rich people that are basically like the high coupon. five, six, 7%. do you sell into this rally or do you hold onto it and roll the dice? a lot of hedge funds are saying they are selling to the rally.

puerto rico is still a basket case that next year is likely to get worse. you have to bet on the fall. if you are the average guy, is it worth that? >> john smith. they sold all of their puerto rico bonds last year. the question he says people need to ask is arch these hedge funds being given any guarantees? hedge funds are speculators. think about who is in this deal. a speculative deal. these guys are not high and hold. they are not looking to clip coupons. they are looking for a 10% coupon and a flipping opportunity. who is buying this?

the speculators of the speculators. hedge funds, distress funds, they are lining up. this deal is likely to line up. the bonds are likely to rally. the question is, do you get fooled by this? >> to the hedge fund guys take it up on the protection? charles: just the you know, i do not think that it is there yet. i do not think that it matters to them. this is so speculative and they will sell out of this so fast. the point here is that you have

a whole year to flip it. charlie: i actually know the guy. cheryl: guys, thank you very much. adam: and iphone killer. samsung unveiling its new galaxy s5. cheryl: right as i got the s4. 4300 for the first time in almost 14 years. we have not seen these levels on the nasdaq since april 2000. ♪ in the new nework, we d't back down. we only know one direction: up so wre up early. up le. like this: up game-changing ideas, dozens of tax free zones across new york state. ..

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♪ adam: janice dean is in the fox news weather center with more on what all of us can expect. say it is not so, janet. >> do not put the winter dogs away just yet. the real cool there is still across the plains. look at the current temperatures across the northern plains. with the wind chills, it is dangerous. with wind chills at minus 20, minus 30 into the overnight. the core of cold air that will sink as far south. minneapolis, you just cannot get a break. the potential for more snow today. these are not wind chills. minus teens.

that will be wednesday, thursday and friday. the clipper system moving across the northern plains. not a blockbuster store. we will certainly monitor it. we will be watching the potential for more snow midweek across the northeast. the bitter cold temperature is not driving energy prices. did you hear that? >> i heard it. we had a five-year high earlier this morning on natural gas.

it was boring this morning. traders are backing off right now. we saw a dollar reversal. whether or not we will be able to refill storage by the end of march. there is a lot of debate in the market. we have turned around despite those colder folk -- forecasts. the interesting thing about this market, nobody ever thought natural gas could get this high again. there has been a lot of denial in this market. we will really have to start the question, what is adequate storage going into the winter. options expire tomorrow.

cheryl: cannot wait. phil flynn. a lot of the country is fed up with the participation. the latest on the drought next in the west coast minute. cheryl: we will be live in new york for the unveiling of the new samsung phone. will it be an iphone killer? that is coming up next. ♪ [ pk sounds, sound of sprapaint ]

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to show how ma years that amount might last. ♪ i was trying to like pull it a littlfurther. you know, i was trying to sttch it a lite bit more. [ woman ] got me to 70 years old. i'm goio have to rethink this thing. [ man ] i looked around t everybody else and i was like, "are you kidding me?" [ da] it's jt human nature to focus on the here and n. so it's hard to imagine h much we'lneed for rerement that could last 30 years or more. smaybe we need topproach things differently, if weant to be ready for a longer retirement. ♪ ♪ ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a milli sleepss nights. whether it's building the world's most advanced satellite, the space statn,

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his. >> the korean electronics giant in his own failing their phone here in des new york that there's so llcation has you mention one

of the big headlines out of parcelling not to link the keynote speech he is very happy with that acquisition but he also said he will not be buying snap chat after offered $3 billion so mark zuckerberg is on board and he is okay with that. with the battle for dominance in this march space -- thus far from space all coming out with $100 while some -- samsung has that wearable technology peace and offers a lower cost item that has no camera attached.

samsung has longtime dominance they have known to be the iphone killer but how different will the x5 we? what will live be with costed what type of operating system and can they maintain that dominance %-six coming out?s:%iphone @%vic yes. think you samsung. >> melissa is back its will take us through the next hour. the bubbles are in charge you can hear charlie gasparino next to me we are ready buckle up for today's ride we have the biggest deals everyone is talking about. how much more will the comcast connection costs you to watch "house of cards"?

who comes out on top? and j.c. penney or best buy? even when they say it's not. it is always about money. on the move today the s&p kids the all-time high with the dow's sees big gains mark, tell me about the market are you feeling the conviction? >> a lot of people don't have it the s&p has moved to new highs but has not been joined with indices like the dow jones industrial average that is below the all-time highs. and the wrestle is closing -- the russell 2000 is not in high territory but they want to see these new indices with volume before we can have more confidence. >>