doing. [closing bell ringing] cheryl: the bells are ringing on wall street right now. a heck of a day for the markets considering where we began. look war we're ending the dow, s&p, nasdaq and russell 2000 all to the downside but well off session lows as you can see. the dow is down about 25 points, david. actually a pretty strong performance. nasdaq, as you mentioned, technology not really a favorite. david: if you look at trends. people going to the big name stocks, russell and mid-sized stocks are getting worst very hard. the worst of index is small and medium size cap stocks. larger caps, that is where some of the smart money was going. cheryl: absolutely. david: take you through some of your front page headlines. u.s. manufacturing activity slowed in march. that had something to do with the market going down that reached nearly a four-year high last month. rate of growth and pace of hiring is still strong.

cheryl: shares of the controversial nutritional shake-maker herbalife sharply higher after it agreed to allow three more nominees of billionaire carl icahn to sit on its board. in the past hour, icahn told our own charlie gasparino that herbalife is very undervalued company. he is committed to herbalife. david: committed to the word. david: south korea to the f-35. they expect to pay $6.8 billion for 40 planes. cheryl: big deal. jurors today found five former employees of ponzi-schemer bernie madoff guilty of fraud. they each face decade in prison. the fraud cost investors $17 billion. david: throw away the key on that one. worries about strength of china's economy. china's manufacturing sector contracted in the first quarter of 2014 according to a preliminary hsbc report. cheryl: malaysia's prime minister today said the missing malaysia airlines jet crashed in

the southern indian ocean. analysis of the satellite data show the plane's last position was west of the australian city of perth. of the "after the bell" starts right now. david: let's get right to today's action. ryan deet trish, schaeffer's investment research technical analyst. time to pay attention to areas of the market where there is a lot of activity. maybe that is where we should be going. we have etm.com editor and global investment president, says riding rates, sluggish growth, time to look overseas for yield. we have a debate on emerging markets in particular from these guys. scott shellady from the pits of cme. scott, i want to start with you. you mentioned biotech. biotech is kind after smoke screen. for what? >> if you look at citigroup economic surprise index it is showing we're missing analyst expectations more and more as of

late. then i went to asia, look at that. looked at same index there and european one. there is weakness all over the place. last time i remember biotechs leading us higher? never. you can't say they're leading us lower if they don't ever leading us higher. i think it's a smoke screen. at end of the today day we're not seeing growth. the gdp number at end of the week will be huge. cheryl: ryan you say there is lot of skepticism out there, fair enough that skepticism could translate into more data like today. >> well, that's right, cheryl. when you get down to it, the last 40 years, the last week or so of march is actually very volatile and choppy. strong into that and you get the choppiness. what you need to look forward too, last five years, april is second strongest month, last 10 or 20 years, april is hands down strongest month. people are optimistic but all of sudden get shakeout we talked

about. biotech, small caps, getting a hit. people are getting once again pretty fearful. doesn't mean it can't continue. overall i see consolidation and higher april looks good to me. david: ryan, tom is big on emerging markets. you two will have a fight on that one. before we go through that, tom, i want to ask about earnings reports. we see kind of okay earnings season in this last one but the next one we'll deal with the bad weather this winter, some other things. are we looking forward to a bad earnings season coming up? >> as you point out 65% of the stocks in the s&p 500 beat, david, in q4. 7 to one negative preannouncements to positive preannouncements in q1 in 2014. that's a concern. emerging market, china, problems over there as well as we see devalued currency. the whole thing about crimea and finally the winter effect. nobody knows how that will

affect earnings. although from seasonality standpoint i'm with ryan. trend are in the right place but it is all going to be in the numbers when we get into april and start seeing what those numbers really bring. david: you're not with ryan on emerging markets but go ahead, cheryl. cheryl: i want to go back with scott what he was bringing up, what tom was talking about with the situation in the ukraine because certainly the situation has gotten a lot more serious than many of you down on the floor initially predicted. how are you feeling now? >> well, you know, the seriousness of it i think is something we need to take a look at but ultimately at the end. day say there are warplanes and bullets are shot. i think ultimately it still comes back to the utz data. yes, we'll have knee-jerk reaction on something that escalates over there but at end of the day it will be how the numbers come out here and that is what is really important. they haven't been good. we keep talking about what we would like to see happen, janet yellen talked about that last week but we haven't seen the numbers come through yet. david: ryan i will set up with

the debate here. with all the what is going on in emerging markets tom is still pushing for it. why do you think emerging markets are worst place to put money right now? >> one important thing when you talk about emerging markets there are other areas. india has been doing well for a while. brazil is doing poorly. we lump them. david: good point. good point. >> bigger picture, the big emerging markets etf that's what we all talk about. let's focus on that. a lot of calls continue to come in on it. it has been underperforming for a while. there is merrill lynch, bank of america merrill lynch had a big hedge fund survey come out last week. what is the most undervalued area people love hands down? emerging markets. contrarian point of view. something going lower. people continue to try to pick a bottom. to us not be in specifically. maybe slice and dice but find certain areas you like. emerging markets we would still avoid them here. cheryl: well the debate continues then, because, tom, you're looking i shares, jpmorgan u.s. dollar emerging

markets bond etf another side, another way to play it. that is kind of where you're putting your money right now. >> got me on regular fox. switched over. >> what tom is saying sometimes because we have two networks here, the other network -- we'll take care of that right now. tom, excuse me, ryan, take that question to you, tom is playing emerging market bond side of it. they're more focused on equities. i will give us his argument since he can't hear me right now? >> sure. you know, when it comes to that again, definitely it is, companies i'm sorry, country-specific and again, you know with the bond, i'm not a big bond guy. i'm more of an equities guy. bigger picture on emerging markets you have to, i'm sure when tom jumps if here you have to pick it by the country. you can't just say i'm bullish emerging markets. you have to specifically dial down in my opinion. >> we'll shift off of emerging markets. when tom comes back we'll give him a chance. scott, i want to go to you to

talk about janet yellen. you say that the market has misjudged janet yellen. in what way? >> i think, number one it was her first meeting. number two, i don't see the strength in the market she thinks she is going to see. when i listen to what she had to say i happened to google how well the fed repredicted things. david: terrible. lousy record, yeah. >> exactly right. we'll have to have knee-jerk reaction what janet said on her first meeting. there won't be enough strength in the economy. david: hold on a second. she did dial back the their gdp growth prediction. it was over 3%. she pulled it back below 3%. >> but i also think that the move to that qualitative, versus quantitative is giving metrics a more mushier feeling. that will give her the opportunity to stay dovish longer. that is why i think this is way too much after knee-jerk reaction. cheryl: ryan to, scott's point there is a lot of data coming out this week. not just gdp we'll get. we'll get home sales and jobless

claims. there is a lot of shakiness in the job numbers. can we not trust them, case-shiller tomorrow. ryan, how closely are you watching those reports as far as the u.s. economy goes? >> with the u.s. economy i think it is very important. like we said, when will he raise interest rates, six months after it ends in the fall. we have that knee-jerk reaction. bottom line once again the economy is starting to matter once again here. we think it is two steps forward, one step back overall. we're still encouraged by recent housing data. jobs are still not coming back. they have been coming back for a while. with upwards earnings projections overall look at earnings estimates coming out. once again analysts are slashing earnings estimates for upcoming earnings season up here. that very well could once again for i think the 16th quarter in a row, lower estimates and beat lowered estimates and -- david: there are your picks. tom is back. tom, we've been up didping all over emerging markets. unfortunately you can't be specific about our criticism of

them, why do you defend them at this moment because there is so much craziness going on around the world. >> you're right, david. but again, we're looking at the fed tapering rates. everyone is playing this game trying to estimate when this is going to happen. meantime over in emerging market, if you look at emerging market debt, a couple things. the balance sheets are much better than developed markets across the world, number one. number two, as far as their paper, sovereign debt, it is paying a great premium to what we can get here in the states and in most cases with these emerging markets being in favorable monetary policy mode, and in early stages of recovery, or while they're declining, you get paid to wait while they come back. and in some instances -- david: hold on a second, isn't the question, if they come back in some of these cases? >> well, right. well, it is much better to buy when it is low, correct? here in the u.s. we've had a pretty good run both on the

fixed income side and equity side. i just think as, especially retirees, looking to diversify income opportunities, great opportunities with emerging markets debt, etfs and especially global bond etfs demalt rates overseas are much lower than the u.s. it is about choice and diversification. if you get paid for it, why not? david: tom, good stuff. thank you very much. ryan dietrich tom was worth waiting for, was he. cheryl: tom had a tv moment today. david: it happens to us all, tom. >> thanks for putting up with me. david: thank you for being patient with us. we appreciate it. scott shell lady, we'll come back with you in a few minutes when s&p futures close. thanks, guys. cheryl: self-stopping cars, rear view cameras, lane as sis, those are dozens of new safety features auto companies are offer, with costing thousands of dollars and which are worth it and which don't add up? we'll take you to the truck. david: plus your cup of joe,

breakfast cereal, food prices are taking off like wildfire. while that make as dent in your wallet. that could help your portfolio. we'll tell you how to play the agricultural boom going on. we want to hear from you. we've been talking about russia for the post couple weeks almost non-stop. is russia's economy vulnerable to real u.s. sanctions, u.s. sanctions that real teeth? so far we haven't seen them. but we may. could that hurt russia? tweet us, @fbnatb. your answers coming later this hour. ♪ [ male announcer ] what if a small company

became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. when folks in the lower 48 think athey think salmon and energy.a, but the energy bp produces up here creates something else as well: jobs all over america.

thousands of people here in alaska are working to safely produce more energy. but that's just the start. to produce more from existing wells, we need advanced technology. that means hi-tech jobs in california and colorado. the oil moves through one of the world's largest pipelines. maintaining it means manufacturing jobs in the midwest. then we transport it with 4 state-of-the-art, double-hull tankers. some of the safest, most advanced ships in the world: built in san diego with a $1 billion investment. across the united states, bp supports more than a quarter million jobs. and no energy company invests more in the u.s. than bp. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

cheryl: so shares of pandora falling into the red, down nearly 8%. david: again the apple effect. let's head back to nicole petallides on floor of the new york stock exchange. nicole. >> i wanted to expand on this look at pandora. pandora drops almost%, 7.74%, closed at 31.39. pandora dropped and this is the apple effect. there have been multiple reports, some of which came from billboard publication that actually cited some sources talked about the fact that apple is considering launching an

itunes app that will work with google, work with google's android based mobile devices. if that were to come to fruition that would be direct competition to a name like pandora. pandora had a great run. over the last year or so, you see a one-year chart it is up 155%. this year alone it is up nearly 20%. so clearly outpaceing most stocks, most indices on wall street but today an up day. back to you. cheryl: nicole, thank you very much. david: nicole, i love turning to you. that is why i was turning. i thought she would be behind me. s&p futures are closing. we don't have to turn at all for scott shellady, in the pits of the cme. how is tomorrow shaping up, scott? >> we have a lot on the docket besides u.s. numbers. keep an eye on the russian situation because that could weaken already weak europe with germany. number twohina to worry about. all with the fact yellen tapering into a weaker economy. unfortunately you will see a

reverse reaction and ultimately u.s. stocks are the best place for your money. that's why i think they hold in there. david: interesting, scott, thank you very much, my friend. appreciate it. cheryl? cheryl: rising commodity prices might be enough to ruin your breakfast. the dry weather that is gripping california and latin america is not just taking a heavy toll on these regions, it is impacting food prices nationwide and forting to you pay more money for your meals. i have examples. your morning brew, your coffee -@cost a bit more. coffee prices are up 5% since january 1st. that is coffee up at 5%. pork prices, look at this, up 45% as you can see. of the wheat, is now costing consumers 17% more as you see on the screen. corn prices up 15%. cup of o.j., there you go up nearly 10%. david: see them in that graphic is shocking. somebody who says it is not all bad news because he has ways to

profit off the rising cost of commodities. jeff reeves, investorplace.com editor. jeff, great to see you again. now we have seen this inflation for a while. i know the federal reserve doesn't admit inflation exists but anybody that goes out to shop knows it does exist. of course they take out food prices and energy prices. how much of this is weather-related and hough will go beyond the springtime, beyond just weather-related events? >> i think a lot is weather related. there is undeniable inflation for food and energy prices. don't forget a lot of commodity prices if they're dollar-denominated, in weak dollar environment they tend to go up more, in strong dollar they tend to go down. we pull off the gas on quantitative easing if there rate headache i think that will put a lid on commodity inflation. bottom line some. big droughts around the world ands have very cold weather and unrest in russia, russia is big wheat producer. a lot of events are kind of

hurting the agricultural commodities market. cheryl: jeff, severe drought conditions we've seen particular in the south, not as bad as this year as years in the past and midwest as well. that is something unfortunately traders have to deal with non-stop and drought, unfortunately it will continue to impact wheat and corn as well, correct? >> yeah. and you know, i'm kind of second quarter sum speck about some this stuff. -- circumspect. i sympathize that some prices go up and grocery prices are higher so i'm interesting how to play that if you see the drought in latin america and california you want to play that. there are company that is make drought resistant drought seeds monsanto and popular ones, chemical company dupont is in process of getting bio induced corn in europe. if you look between the lines there are ways to play these trend of higher food prices and demand for this stuff. david: jeff what about, i used

to cover late minute america so i'm familiar with the coffee trade quite a bit. it goes way up and it goes way down. is there a danger of trying to catch it after it already gone way up and perhaps it is ready to come down again? >> yeah. actually it already started to come down again. coffee prices are up 58% issue today i haven't looked at exact number, but they were up 70%. there was big forecast for rain and coffee saw one of biggest one-day drops in years in last couple trading sessions. important to remember all commodities are volatile, talking about gold and oil. same volatility applies to agricultural commodities. especially for coffee i think we've seen the top. there is a lot of froth so tread lightly. particularly if you're an investor, david, concerned about inflation long term you can play a fund to get exposure to agricultural commodities and hedge your bets against inflation. cheryl: if we talk about making money on commodity prices let's

talk about livestock. cow is tick ir. that is higher year-to-date, 12 1/2%. part of this is the grain that the cows eat but, this seems to be a lot of momentum right now. >> yeah. actually that is an interesting fund. ticker symbol is cow. 2/3 into cows but trades into lean hog futures there is bunch of diseases going around the pig crops if they're called crops whatever they are, livestock, pigs. the virus is supposed to cut as many as two or three million head of hog from smithfield, largest pork producer in the world. it is supposed to affect 10% of pigs. this is creating a new trend. cheryl: hogs and eventually beef will be more expensive, correct? >> particularly again, if you want to play food price inflation the cow is good way to do that. talking about as cull rat commodities like -- agricultural commodities, dab, basket of

corn, soy and wheat. i don't advice people to put 50% of your portfolio in these things they're very volatile but hedge against inflation there is way to put them in your portfolio. cheryl: it affecting everything. david: it ain't going down. even when the weather improves, generally speaking as long as janet yellen is printing money we have problems. jeff, thank you very much. >> appreciate it, thanks. david: if you've been wondering what apple is planning to do in the tv business we finally got some clues today but will apple hit a roadblock of regulations? we'll talk about the tech giant's huge ambitions with comcast and some potential red flags ahead. cheryl: you might call it the investor fear factor. this is what separates individual investors from wall street titans who are proven winners. we'll tell you what top u.s. investors avoid coming up in just a few moments. are you making these mistakes? ♪

♪ see what's new at projectluna.com 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 so 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. iwe don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go.

up. find out if your business can qualify at start-upny.com

david: time for a quick speed read of the day's other headlines, five stories in a minute of the first up, cisco is looking to take on allison. the company is pledging to spend more than a billion dollars over the next couple years as it enters the cloud computing market which is currently led by amazon. nokia's $7.4 billion deal to sell its phone business to microsoft delayed for several weeks as the companies await regulatory approval in asia. nokia says it now expects the transaction to close in april. gas prices are rising. lundberg survey showing that the average cost of a regular gallon of gasoline up five cents over past two weeks to 3.56.

google maintaining its dominant share of the u.s. search market. comscore says google has 67.5% of the market and followed by microsoft and yahoo! >> worldwide spending on mobile advertising expected to soar this year. according to a report about it research firm e marketer, spend something expected to increase 75% from 2013 to $31.5 billion. that is where the money is. that is today's "speed read." [buzzer] cheryl: way to kick off the speed read on a monday. good lord. from lame as siss to self-parking and companies are offering features to those of us who are not good drivers. david: some are pretty cool. some of features could add thousands of dollars to the price of the car. what is worth it, what isn't? gerri willis putting pedal to the metal at the "consumer reports" test track. she joins us now. gerri, fun work. what vehicles did you test. >> i tested a mercedes-benz s-550. let me tell you, it was plush.

it was a beautiful sedan, right? jeep cherokee was other one. here is what you're looking at with the mercedes-benz. 2800-dollars package on top of the $114,000 price tag t does everything for you. it drives. it stays in the lane. it accelerates. it deaccelerates. it does everything for you. but that may be too much for you, dave. i don't know. look what happened to me. look what happened to me when i, when i tested the deceleration part of this. check it out. this is disconcerting. >> don't touch the brake. >> [screaming] >> oh, my gosh, i touched brake. i couldn't stop. >> but it didn't. i felt it come down. >> you heard the abs brake engaged. felt the seatbelt tighten. it is getting you ready saying i will stop the car because you're not doing this. even if i can't i will have you ready for a crash. >> wow that is impressive. >> so i couldn't do that. i couldn't --

david: you did touch the brake -- >> because you're coming right up on something. david: you didn't trust it? >> no. i'm too type-a. i don't want the car to drive me. i don't go for that. let me tell you i also drove the jeep cherokee. that is $37,000. they have a blind s.p.o.t. monitoring which i like. they have a parallel parking assist. i didn't like it. we ended up on a curb. really superfast. cheryl: so it didn't work, parallel park something supposed to be one of the hot new features for these cars. >> not my favorite thing. the car was fantastic. i liked blind spot camera and back. camera in back is worth paying for. a lost companies make it standard. kid in back. toy in back you will see it. with the crossovers way they're pitched they have a blind spot in back and can be really hard to see. that is terrific. some of the stuff, car driving me, uh-uh. paying personality. cheryl: i'm more after control freak. i don't i think could let the car do driving. david: but you are a mercedes

girl. >> yeah i think that could be a solution. david: my wife says same thing. cheryl: you would look great in mercedes. >> i'm an american car girl. cheryl: good stuff, thanks, gerri. >> we have our show coming up tonight we'll talk to you more about this issue car assist. we'll give you the lowdown on what you should buy, what you shouldn't buy. be sure to check it out, 5:00 p.m. she will stay here in studio. cheryl: don't leave us, gerri. >> thank you. cheryl: nothing is certain, they always say but death and taxes. the average american family pays aboutthousand dollars in state and local taxes each year. coming up we'll tell you the states with the lowest overall tax rate. david: it ain't new york, i can tell you that. also "the wall street journal" is reporting that apple is in talks with comcast about a streaming tv service. so will regulators ever let something like this pass? are regulators standing in the way of progress? answers coming right up. ♪

hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. if ...hey breathing's hard... know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems,

glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothg can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva.

cheryl: tax, can't live with them, can't live without them, right? i would love to live without them, actually. most of us wish we could live with less of them. average american family pays seven grand in state and local taxes every year. wallet hub conduct ad study across all 50 states and district of columbia, analyzing

nine different types of taxation including property, food income to determine where rates are lowest. they're are thets. nevada has lowest tax rate. annual state and local taxes in nevada each year are about $3300. you better bring a jacket to the state with the second lowest tax rates in the u.s. alaska has state and local taxes of 2791 bucks. that is 60% below the national average. finally the place with the lowest tax rates, whole country, wyoming. local and state taxes average $2300 and change per year, dave. david: i'm going to nevada. i can tell you that. the possibility that apple and comcast may get together caused panic among some of apple's competitors like netflix, for example, which dropped sharply today on the news but more than a day's move in the market, the apple comcast discussions show that we are on the verge of another titanic shift in information technology that

could fundamentally change fortunes, regulations and the way we all appreciate television. with more on the topic we have jeffrey eisen bach, american enterprise i app institute center for internet policy. could this deal really radically change the way we view it. v? >> i think this deal is part of a change that is happening in the way we view it. v. the fact that apple and comcast are getting getting together. david: i don't want to get too nerdy talking about the details here, basically what this would do, if they got together, comcast and apple, apple would be able to use a much stronger signal in carrying its product into the homes, is that right? >> well, apple would pay or

share revenues with comcast in order to guaranty the high quality of apple content and that is deal presumably would be there for netflix, amazon or any other companies to do or find a way to get the high quality into people's houses. david: the thing i don't understand comcast's side of this, what it gains other than revenue from apple? because it has services similar to what apple tv has. so wouldn't comcast be cannibalizing their own services if they made this deal with apple? >> you know, that is the fascinating thing about these markets is, guy named ray coined the term co-optition firms are in a place where they have to cop rate in order to deliver the best value to consumers. if they don't, some people go to a different platform. so comcast is competing with verizon, they're competing with at&t, and they're competing with other over the top providers. they need to provide people best

service. if people want apple tv, comcast has to be in that market. david: i have both apple, the apple tv product which i like a lot. i view a lot of tv and movies and programs on that, but also has comcast with pay-per-view. comcast would see some of its pay-per-view product the go bye-bye, right? >> that is what is happening. for example, one of the big losers over the course of the past few years has been hbo which has seen a huge decline in subscriptions even as netflix, amazon, other over the top providers have come in. that is part of creative destruction and boy it is happening in this space in a big way. david: you and i love competition. american enterprise institute by its name means it loves competition. >> absolutely. david: but a lost regulators are doing their best, they say in the name of competition, to try to get in here but doesn't all this show that regulators are always about two steps behind the private market and they, they would do best just to step out of the way? >> yeah. at least two steps behind. in fact the federal

communications commission has a big regulatory proceeding going to think about the ip transition. well that is the transition from old analog, plain old telephone service to digital telephone service and from old analog television to digital television and they're just beginning a regulatory procedure, probably, three, four, five years. david: you're kidding. >> that is how far behind we are. david: just to put a fine point, they're still dealing with analog stuff right now? >> that is the big issue here in washington, what to do about plain old telephone service. david: how in god's name could they think that they could properly regulate something like this incredible deal between comcast and apple? >> so the big battle is between whether you do case-by-case, antitrust-style regulation or. >>-ante regulation where the fcc writes a rule forbid a whole class of business construct. that is what they tried to do before. that was overturned by the courts. now they're back trying to side what to do.

it is possible for these to have antitrust consequences and those ought to be looked at but looked at case-by-case with the justice department. david: is it possible that fcc or some other federal regulatory agency could block progress, the technological progress being made on these fronts? >> absolutely. late last year or early this year the courts overturned version three of the fcc's net neutrality rules. they're now back trying to write version four. i honestly think the guys at fcc now are pretty sensible guys. so i doubt they will end up in the wrong place but not impossible by any stretch. david: good to hear they're sensible and responsible. good to see you, jeff. thanks very much. >> thanks for having me. david: cheryl? cheryl: david, if you want to play the markets like a wall street titan? you definitely will want to pay attention to our next guest. he will tell us how to avoid

money losing traps that perfectly rational investors get caught up in. you know you made these mistakes. david beckham may have hung up soccer cleats but he can still "bend it like beckham" when it comes to designing a new sports stadium. details when we go "off the desk." ♪

my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke.

ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. iwe don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years.

with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack. that's health in numbers. unitedhealthcare. some brokerage firms are but way too many aren't. why? because selling thfunds makes them more money. which makes you wonder. isn't at a conflict? search "proprietary mutual funds". yikes!! then go to e*trade. we've got over 8,000 mutual funds and not one of them has our name on it. we're in the business of finding the right investments for u. e*trade. less for us, more for you. the fund's prospectus contains its investment objectives, risks, chargesexpenses and other importt information and should be re and considered carefully befo investing. for a current prospectus visit www.etrade.com/mutualfunds.

cheryl: so you want to know how to avoid losing your shirt in the market? there are traps that can even cause most rational investors to act irrationally. david: i've done it before. what are the most common traps and how can you dodge them and come out ahead? joining us wealth enhancement group chief investment officer. jim, some of these are just common sense but it is common sense that eludes us all when we're trying to make money. go through with some on the list. starting with familiarity. most people stick with what they know and that can be a mistake. expand on that. >> if your kid likes kraft macaroni and cheese, a lot of people say, hey, i will buy craft stock. a the kids eating macaroni and cheese has small impact on the shares than exchange rate between the euro and dollar. people think they understand things they have no idea what they're talking about about what are real drivers moving the security. it is a mistake a lot of people

mistake. cheryl: you say gamblers fallacy. we're making bad decisions based on patterns. so what does that mean? >> how many times do people go to vegas. put a nickel in a slot machine and give it all back after winning 100 bucks. the problem people love to find patterns. as the man who won the nobel prize in 2013, showed us there are no patterns in the stock market. just like the gambler we like to believe we can sort out those patterns that will let us win over and over and over again. the reality is we can't. untiles you're a statistician or a phd in statistics very difficult to prove the difference between chance and skill. separating those two things out is what makes a difference between a great investor and speculator. david: i will skip over endowment effect because that is sort of similar to familiarity. favoring stories over analysis. i think i know what you mean but give give me a specific example of that? >> i'm sorry to rag on fox here, but you guys come on television,

you say look, market is down because of crimea. market such because of xyz data. we like to tell stories. and we like to tell stories because we need to get control over things we feel we don't have control over and stories help us do that. when we tell stories about the market or tell stories about individual stocks, what ends up happening we leave out a lot of information. we oversimplify what is actually happening. the world is lot more complicated. david: let me make sure i understand. people hear that headline, the market is down because of whatever, and then they figure, so i shouldn't buy that stock today even though that day might be the perfect time to buy a particular stock? >> yes, well, things they think they understand what is going on. so let's say the market is down by russia. do not buy russian stocks today? maybe it's a good day to buy russian stocks, maybe it's not. you have to look at the larger picture. what happens when you hear the headlines or hear the tag lines people block out the other information.

what's the fed doing? what is going on in corporate management at that company? what is going on in washington? what is going on with e.u. banking regulation? so you need to go beyond headlines. you need to go beyond the stories but it is really hard for people. cheryl: obviously, jim, this will be your last appearance on fox ever. just kidding. you talk about investors are buying stocks that have, representatived buys basically. that investors buy stocks that may have one or more desirable qualities but they don't hold the start-up in all areas. are you talking about that particular stock or talking about a broader sector? >> i call this the two guys in a garage bias. so if you're driving around california, especially the silicon valley area and see two guys in a garage, people say, that is the scene of the accident apple. let's buy it. we look at things that are successful. successful element of the company and look for that in other places. humans have a need for metaphor and we use metaphor to try to

pick out what is the next big success. i see it all the time where this is the next gap or this is the next ibm or this is the next whatever and that's a real problem. real professional investors don't do that professional investors are look at the specifics because most guys in a garage of their parents house they don't end up going on to fund the next apple. they end up going on to live in their parents basement. cheryl: you never know. i want to leave it on that. people like to pick stocks an hope for the best. david: analysts make mistakes, too, jim. not just us civilians. we have to leave it at that. thank you very much. cheryl: thank you, jim. >> appreciate it. david: why is one of our neighbors emerging as a more business-friendly nation than the u.s.? already catching the tanks of silicon valley. details coming up. cheryl: wow. cafes, restaurants and shops and nightclub. soccer star david beckham's new stadium will be jam packed with amenities. we have a sneak-peek many coming up. ♪

[ male announr ] how can power consumption in china, impact wool exports from new zealand, textile poduction in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat thei10-year lipper avere. t. rowe price. inest with confidence. request a prospectus or summary prospectu

with investment informion, risks, fees and expenses to read and considecarefully beforinvesting. does your mouth often feel dry? a dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. that's why there's biotene. available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. remember, while your medication is doing you good, a dry mouth isn't. biotene -- for people who suffer from dry mouth.

david: remember when canada was where all the socialists went to? no more. more u.s. companies are now considering moving north. recent study showing canada is one of the best places in the

world for doing business. cheryl: wow. what makes our neighbors to the north more business-friendly than the united states. fox news's anita vogel has more. >> hi, there, cheryl and david. of course canada always been known with a country with at love social programs and very high taxes. so the mere notion it would one day considered to be better place to do business than the u.s. would be laughable but who is laughing now? >> canada's tax rate on companies is now 15%. ours is 35%. so if you're starting a business, where would you rather start it? >> former presidential candidate mitt romney raised the question two years ago. now a recent bloomberg study suggest that is canada is more business-friendly than the u.s., jumping four spots to number two just behind hong kong. >> you can't rest on your laurels. if you become number two you could become number five tomorrow if you don't continue to work on things. that is very important for us to stay sharp and stay competitive. >> canada's consul general in

california says the securing number two ranking is the result of a steady lowering of the corporate tax rate, making it easier for businesses to get started with incentives like financial grants and a streamlined visa process. >> really living the canadian dream. >> mexican immigrant chose vancouver over the silicon valley to launch is online research firm. lower taxes were a big plus but so was the opportunity to attain permanent residency. >> rather than having to focus on you know, immigration bureaucracy, coy focus on what matters and that is growing the company and creating jobs in the canadian economy. >> american joshua felt the same way about his real estate web startup. he took advantage of government programs he says were better than what the u.s. had to offer. >> when you have a startup, you're definitely like bootstrapping a business. if they can help you bring, you know, 50 to $100,000 into a business through credits or incentives that's a lot of money >> as for the u.s. there, is

ongoing debate in congress whether to lower the corporate tax rate as part of an overall tax reform package. a lot of companies around the world will be watching that. and cheryl and david, we will be watching to see whether the u.s. can reclaim that number two spot in this survey next year. back to you. david: let's hope. anita vogel, thank you very much. cheryl: speaking of canada, tonight at 8:00 p.m. on "cavuto", don't miss a fox business exclusive interview with transcanada ceo, russ germing. we will ask him about the future of xl pipeline. david: we asked you on facebook if you think the russian economy is vulnerable to sanctions, one with real teeth. u.s. sanctions may trigger communism, once again the domino theory. all right. cheryl: jeff reeves, investor place.com editor, joined us on the show and took his place, kind of lie, that david didn't

argue with me again about global warming as always. david: jeff, i was this close. this close, from doing that. let's go "off the desk." david beckham's planned soccer stadium in miami looks as though it may soon become reality. we have now photo evidence of what exactly beckham plans to do. his architects are suggesting that the stadium be built at the port of miami facing the city's downtown area. the stadium will cater to a 25,000 person crowd which is notably more than the heat's nba stadium can hold. the site plan includes a restaurant and a nightclub. cheryl, you -- cheryl: that is good, he is so ugly. i mean, i hate looking at him. david: what do we watch tomorrow? cheryl: number one thing to watch tomorrow will be two key pieces of housing data. january s&p/case-shiller price report scheduled for 9:00 a.m. eastern time. economists expecting home prices to dip by .1% for the third month in a row and february new home sales will be released at 10:00 a.m. eastern. economists are expecting sales

of new homes to drop by 4.9%. so a lot going on tomorrow. david: lot going on this week. we mentioned gdp numbers. believe they come out on thursday. so it will be a very busy week for the markets. >> "willis report coming up next. [ intercom ] drivers, to your marks.

go! [ male announcer ] it's chaos out there. but the m-class sees in your blind spot... ♪ pulls you back into your lane... ♪ even brakes all by itself. it's almost like it couldn't crash... even if it tried. the 2014 m-class. see your authorized dealer for exceptional offers through mercedes-benz financial services. see your authorized dealer for exceptional offers anbe a name and not a number?tor scotade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade.

because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. gerri: hello, everybody, i'm gerri willis. right now on "the willis report", outlet malls, they're supposed to have the best deals but don't go there bargain hunting until you've seen our report. also, the biggest consumer story this week. a supreme court showdown over obamacare. and hot new safety options for cars, are they worth the money? i'm hitting the test track with "consumer reports" to find out. wow, that's impressive. we're watching out for you on "the willis report." gerri: our t s