[closing bell ringing]. mice november on wall street, 156 points higher. liz: let's not ignore the financials -- [inaudible] we ring the bells. david: let's look at all the indices. i called it a dudley rally. that incredible interview peter barnes had with bill dud the head of the new york fed yesterday, saying essentially interest rates would be low as long as we're alive practically. one of the most accommodative interviews i've seen with a fed official. clearly the market liked that news. also big jump in the energy sector. that leading to all the energy sectors going higher. all of the oil companies based on what is happening with oil inventories which are much lows than expected. we have a very busy hour on a very busy market day. "after the bell" starts right now.

liz: get right to a very good day for the bulls. what a different day from yesterday. we have brent wilsey, wilsey asset management. why he is buying retail even though some names are swooning. we have the chief investment officer telling us why overseas is better buy and todd horowitz in the pits of the cme. todd, a fascinating move in the markets where the stock piers simply piled in as soon as those minutes came out. >> hi, liz, hi, david. certainly they were buying. basically they were buying all day and they didn't stop. they're still buying now. when we look at the big picture the russell was very weak compared to the rest of the market but apparently the dow and s&p like the fed minutes. they like what is going on. they like the free money policy they have no fierce. they will continue to take the big brooms and sweep bad news under the carpet and we'll eventually keep hiding from it until eventually we say what

happened? now the market continues higher. david: bret, a lot of it i think had to do with a interview with bill dudley yesterday where he said interest rates will be low as far as the eye can see. is he growing to be able to keep that promise? there are other committee members on the fed? >> you know, that's a pretty tough one. i think they kind of have to. unless the economy booms wildly upward, gdp of four, 4 1/2% i think rates can stay low a little bit longer than that so that is going to make equity as very great place to be because of great dividend rates. fairly valued, valuation ratios. equities are great place to be this year and next two years. liz: that is pretty broad space, equities but not necessarily in the u.s. but where and why wouldn't you go u.s. at the moment? >> we think the u.s. is expensive. we don't think it is terrible. future returns are expected 4%. we see foreign emerging much cheaper especially a lot of

emerging europe, really cheap valuations. liz: like what? talking ukraine? what's emerging europe? latvia? >> austria, hungary, czech. great example is russia. invariably with the cheap countries you have terrible news flow. russia is the perfect example of the mean where every day it is negative. often that is when you have the best returns when something goes truly horrific and miserable to slightly less worse. we think it's a huge opportunity for a lot of developing and emerging markets. david: a lot of hedge fund money going to greece and russia looking for some bets. of course a lot of high-risk there too. todd, i want to talk about oil for a second. we saw a inventory count much lower than what was expected. they were expecting a slight gain. instead it was very much to the negative side on the crude inventories. as a result oil spiking. what is going on there with oil? >> i think really you're seeing with oil, inventory numbers are up. we're an oversupplied country.

we're seeing a little bit of fear playing out from russia, from ukraine, a little bit in the mideast. we're seeing oil in backwardation model. premium is built in the front month expiring contract. as you go in time oil cops down in price. that is not what you're seeing because we're still playing a fear premium in the oil markets. that is happening alongwith -- liz: be clear because you used gobbledygook for some of our viewers. when you say backwardation, farther out months are trading lower price than what we see in the most recent month, correct? no that is correct. what is happening now the last i looked, august oil is trading 103. september oil is trading at 101. so the prices go down. the normal rotation is prices go up as you go back farther. liz: that is good news for a consumer out there but right now, brent, we're seeing a consumer not helping out a lot of retailers that could be missteps on fashion choices on behalf of retailers. it could be that the consumer isn't feeling confident right

now. you like retailers. tell us ones you have picked and why. >> sure. you've got to be careful here liz. there are bad retailers and market can be somewhat expensive. i like retailers like dillard's. you have a company trading on good values. price to book of 2.4 and 9.4. earnings per share up 3%. keep in mind the retail industry is down 42%. the debt to equity is 41 versus 80. low-debt company. forward pe, liz, 11.7. i have a target self 151, 41% potential gain. this is good company underpriced. that is what you look for. compared to a -- would that help you? david: ned, let me talk to because we could go on. small caps are beaten down last couple weeks awful. you still think it is overvalued. >> small caps relative to the large caps, one of the most

expensive we've ever seen in past 50 years. david: even after the beatdown in past couple months? >> don't think an opportunity yet. small caps foreign great place to be. much cheaper valuations in foreign small caps. david: where foreign? >> you don't want to pick just one market. we have a new global value etf. it buys the 11 cheapest countries. any one year you could have russia go up, greece go down, piigs do whatever they may, blended countries with a much better choice. liz: we heard from charles plosser from the philadelphia fed yesterday and since then i heard it a lot, inflation when it starts to rear its head will pop up. it doesn't peek up. it happens quickly. it could be extraordinarily worrisome. what signs on the floor of the cme that indicate to you, okay, here it comes? >> what you will start to see you will see the flow of fund coming out of equity markets. people feel they have to spend more money to get other product

the. we're already seeing it with the cost of food and energy. we don't count food an energy in the inflation number. i filled up with groceries today and cost me $200. that is lot of money for average consumer to go out and spend. we're starting to see, why we've seen a big switch out of equities into some of the bond markets now. people are getting more concerned this will pop up. all of sudden we see a big jump in inflation. we're seeing in the cattle markets, grain markets. we're seeing higher prices. david: brent, look ated into for example, picking up on todd's point. it is up 2.7%, month over month. that is annual gain of 37% if it stays that high. that has to cut into the retail sector which you're in favor of. >> well, and that's true buff to look at, over the longer period. that is why they talk about the core inflation rate and take out food and energy. david: hold on a second because a lot of people object to what they do. people like marty feldstein say that is totally unrealistic. people buy computer one every

five years, computer price comes down but they have to buy food every day. >> that is true but food is very volatile. depend on weather and transportation. it goes up and down. i agree you have to take that out an look at both and food is very volatile and it will go up and down. i was talking how meat is going up 9% and pork is up. that is going to happen but will go back down an something else will go down. yes, we feel food because we buy it every day but overall when you look at whole basket over a year's time frame we don't have that bad of inflation. liz: we should mention beef and pork are not just at 52-week highs, they're at all-time highs. david: bingo. liz: there are other things we're looking at soy and corn coming down a bit. we want to thank everyone, bret wilsey, bret, and todd horowitz. we'll see you at the close of s&p 500 futures. david: great stuff. internal tug-of-war, we got into it at the fed as hawks and doves debate how to unwind a 4 trillion plus balance sheet

without a big market disruption. and without an inflation spike. will they be able to carry this off? former fed vice-chair alan blinder has an answer. he joins us in a "first on fox business" interview straight ahead. liz: plus the president meeting with ceos on finding out how to bring manufacturing back home and strengthening what we do have already here. we're talking to the ceo of connection. he was with the president. what ideas were proposed? does he think the white house was receptive? why did he move his business back to the u.s.? we'll find out. david: "godzilla," the movie that liz had a chance to see. she wanted to but her husband didn't. stock stomped out the competition this weekend the looks like it is also symptomming out japan's market. one of the worst in the world right now. one strategy says buy. now is the time. buy low, sell high. he will tell us why and where you go to play that bet. liz: we want to hear from you. don't you love "godzilla"? no, that was me.

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liz: this news broke one minute

before the markets closed pretty much. reuters reporting that reynolds american is in advance merger talks to buy lorillard. big deal here. david: we're seeing a pop in lorillard's stock. go back to nicole petallides on floor of the nicesy for details. >> that's right. just as we were approaching the closing bell, we saw lorillard, traders came over to my desk noting here. look how lorillard it is jumping. moments later we saw big news here. we may see number two and number three tobacco companies together. reynolds american and lorillard in advanced merger talks. they could come together as soon as weeks. there is the other little piece. david: british american tobacco, they have a 42% stake in reynolds. this may be a tie-up of all three of these companies. reynolds has camel. lorillard has newport. they could be put together. we saw this stock jumping about 10 1/2% at the closing bell. lorillard, what a big move going

into the closing bell. if you look at intraday chart you see that big pop-up on heavy volume. we'll continue to follow this story. this is obviously a huge potential merger. of course none of the companies, liz and dave, are commenting at this time but seems that plenty of insiders and sources are backing up this story. liz: that is pretty amazing that they kept it quiet because the second reuters had it, boom, those stocks moved but you didn't see any activity before then. thank you, nicole, very much. david: thank you. s&p futures are close inning about 45 seconds. let's go back to todd horowitz in the pits of cme. todd, how is it shaping up tomorrow? >> looks like buyers coming into the close here but remember one thing, the market really has been in a range the last six months between 1840 and 1900. if you get to 1900 look at top of the range. we'll probably pause there if not breakthrough. i look for a little bit of selling pressure. we're really range-bound and we have been last six months. liz: okay. good to see you, todd. david: thanks, todd.

liz: todd wanted to get in on inflation, core prices issue. david: he is a player all the time. liz: we'll bring you back to talk about food and energy prices. jop necessary market price looks like it is crushed by "godzilla," down 13% so far this year after a great year last year. it is one of the worst performers in the world. david: look at last 20 or 30-year period this country has not moved much. but the government taking bold actions to stem the decline including a "godzilla" sized stimulus plan. is it time to buy? lpl chief financial market strategist jeff klinetop. jeff, good to see you. let's talk about one piece of the plan. one piece of the plan if anything i would say is antigrowth. they had a huge increase value-added tax. this is old imf formula tried in every country and failed in country after country to balance

the books because all it does is destimulator put a cover on growth. aren't you concerned this might muzzle growth a bit? >> this has been huge in terms of muzz link growth, you're absolutely right. look at pmi, manufacturing index for japan. absolutely fell off a cliff in april when the tax was implemented. retail sales, auto sales down double digits. david: why are you so bullish on country after this tax increase? >> because you can expect a godzilla sized stimulus package coming out of bank of japan and june meeting. didn't get it today. this is evidence of what a central bank can do to a stock market. probably the next meeting at june 13th they will increase or extend this godzilla-sized, i'm not talking about 1954 little godzilla, but 2014 giant, towering godzilla. liz: the one now 350 tall. i know this because i'm obsessed with godzilla. as you obsess over japan we need

to get right to the fact you've laid out your theory and your thesis. where do you go right now? how do you explain to our viewers the best way to get into japanese stocks? in essence they're just doing what our central bank has already done and that is really big monetary easing. >> well, that's right and if they do announce an extension of that plan in the next few weeks what you want to do you want to look at a way of entering japanese stocks that hedges you from the currency risk because remember that same stimulus program will likely and intentionally tank the yen. so you want to think about an etf like dxj. this is an etf that invests in japanese equities but hedges the currency exposure. worked out real well they announced godzilla-sized pe back in 2012. could again be a winner. david: yes, because if you're making profit, even if the company making profits in a currency losing value it may balance itself out and you don't gain anything? >> that's right.

the yen dropped like 20% in late 2012 and early 2013 as its stock market was soaring. so if you're investing in japanese yen, in the japanese market as you translate it back into dollars you certainly didn't have the gains you wanted to see of the so that dxj may be a way to insulate yourself from declining currency which could again be double digits. liz: jeff, what are thoughts on picking winners here? you could go into japanese telecoms. they seem to have very innovative way of doing business. you could go into heavy equipment. you could go into a whole host of names out here? >> capital spending i think what the bank of japan wants to see come back. there have been some good incations from some of the big companies they are going to commit to spending ahead. some surveys indicating that. big capital equipment companies may be ones you want to focus on may see the most up-size if we get round two of godzilla-sized stimulus. david: jeff, bottom line,

investors are caught with a lot of falling knives when it comes to japan of the as i said at the beginning over 20 years this country has not been delivering through stimulus plan after stimulus plan. of course they have zero interest rates for that one. makes me skeptical about our pursuit of zero interest, but what makes you think this time is so different? >> well, two points. one, godzilla-sized one worked. they saw five straight quarters of growth and inflation rose, remember inflation over the past 20 years in japan was literally 0.0% on average but up over a percent. it is working to generate growth and inflation. so expect them to, you know, once you find a, you know, once you have a hammer, every problem looks like a nail. i think they will hit that again. and this time i think it will be even bigger. so wait until you hear that announcement but once you do expect japanese stocks to rally. liz: good to see you, jeff. david: i love his enthusiasm. thanks, jeff. will stocks rally after new york

fed president bill dudley told us yesterday he is not worried about inflation but is this really possible? isn't it a chance, doesn't it have a chance to catch on here in the states? alan blinder, former vice-chair of the federal reserve telling us what he thinks about that and where he sees division in the fed. this is a "first on fox business" interview you do not want to miss. liz: plus, do you use ebay? have you ever used it? ebay urging all of you to change your ebay passwords immediately after warning today that a client's personal information may be at risk. all of their clients. we'll tell you why. david: wish we were kidding but we're not when we say this gm announcing, yes, another recall today. details of who is impacted straight ahead. ♪.

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it's not a phaser! it's my phone! he can use his voice to control the tv. you can use your woice? my voice. your woice. my voice. "vuh," voice. his voice. your woice? look. watch sci-fi. [ female announcer ] the x1 entertainment operating system, only from xfinity. david: time for a quick speed read of some of the day's other headlines, for stories in one minute. first up, chinese owned set to deliver the country's first homegrown regional airliner. it is expected to become one of the biggest aircraft markets in the next 20 years. china and russia ink a $400 billion natural gas deal. it gives them a economic boost after d.c. and e.u. posted asset bans and russian officials because of ukraine. netflix is expanding into germany, france and four other european countries late they are year. the markets will extend

netflix's reach into nearly 50 countries with 13 in europe. >> j. crew returning to asia after pulling out of japan six years ago. the u.s. fashion retailer will open two dosser in hong kong. jpmorgan investing 100 million in detroit over the next five years of the city will use the money to be divided up between loans and grants and housing repairs, job training and economic development projects. that is today's "speed read." liz? liz: david, we of course reported about the influx of chinese investors into the u.s. residential market. industry insiders say they started to scoop up more than single family homes. david: some people are worried about this reach. what are they bay buying and how are they impacting the housing market? cheryl casone has been looking into this. cheryl. >> the markets are fascinating how much the chinese is doing and how much they are projected to spend. it will blow you away. $10 billion is the new estimate from jones lasalle.

this report just coming out of the amount of money chinese investors will be dumping into the u.s. economy. they have been spending on residential homes. we know that these chinese middle class have been buying up condos and apartments things like that in manhattan and l.a. and seattle. now they're actually building up their growth. more than 25% jump, just in the last year as far as residential, and commercial construction. this is the big thing. this is what we're seeing here especially in the new york and chicago markets. chicago believe it or not has become their top choice when it comes to how much money they want to spend of the that's where they're dumping all of the cash. it's a global story certainly with the chinese. they want to put money not just in the u.s. but other cities around the world. look at list and look at numbers here, chicago number one for chinese investors. these are corporations and also the wealthy chinese. $464 million in chicago. london and sydney may not surprise you. melbourne, yes that is how you pronounce it. liz: you're right. i know that. >> and then of course another

city you know very well, los angeles, 144 million. of course guys, the new york story. they see the u.s. residential market as the place to put their money. they're spending more than u.s. investors have been spending recently. in fact they have been knocking some u.s. companies, new york based real estate companies, out of the new york market for residential and also there is a huge project out in brook lynn they swooped up and took away from brookfield. this is big story and big money. david: i'm wondering if the interest in chicago has to do with commodities? they're always looking for commodities plays. they're close to the commodities market there. >> i feel like chicago the values might be a little more friendly to them even like in l.a. than they would be here in new york. we talked about potentially the bubble here in manhattan. god knows london has become a big bubble when it comes to real estate. but certainly chicago. you know what? if you're building a big condo project you might have a better roi, return on investment in chicago than new york. if i had $500 million i would

put money in chicago but i don't. i report on it. liz: cheryl casone. thank you. david: ebay announces it was victim of a cyberattack that compromised data. are you at risk? details next. liz: to discuss how to bring manufacturing back hope. we're talking to one of those ceos who was in the meeting with the president. what type of solutions were discussed? why did he bring manufacturing back from china? david: after holding the crown for three years apple dethroned as the most valuable global brand. who took the top spot? we'll tell you right after this. ♪. those litt things still get you. cialis tadalafil for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet helpsapproved to treattime the msymptoms of bph, like needing to go freently. tell yr doctor about all your medical conditions and medicines, and ask if your heart is healthenough for sex. do not take cialis if youtake ,

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liz: yeah, i already said to the 3:00 viewers, i changed my ebay password immediately. ebay is actually asking all of you users, 150 million active users to be exact, to change their passwords today after announcing that it was the victim of a cyberattack that compromised database containing a lot of customer information. now ebay says that the compromised database includes passwords, emails, address, phone number, fiscal addresses and dates of birth. ebay does say there is no evidence of financial or credit card information was accessed but jo ling was telling news previous hour, you put all that other stuff together and you can get the financial information. the attack occurred between late

friday and march. kind after broad swath of tile. david: i'll say. liz: could you narrow it down? the stock ending the day flat. they discovered it. change your password. david: new york fed president bill dudley telling us yesterday he is confident that the fed could keep pushing their very accommodative policy for quite some time without worry about inflation. that was music to the ears of investors who went on a buying spree but is it realistic? joining me, "first on fox business" interview, alan blinder, who wrote about these issues in the "wall street journal" yesterday. author of the book, after the music stopped. what happenses, that is food question, after the music stops? i don't know if you seen interview yesterday? you're not known as inflation hawk but compared to what mr. dudley said, even you sound like an inflation hawk. play a little clip from it if you don't mind, professor. we'll come back to you. >> sure. >> how do you make sure thain nation does not get out of

control? >> well that's not going to happen. it's not going to happen for the simple reason we actually have really good tools. the first good tool is in 2008, as far as the tarp legislation ability to pay interests on excess reserves. so as we raise the rate we pay banks back on reserves that induces them to hold the reserves rather than lend reserves out. david: inflation, that is not going to happen. are you that confident, alan? >> well, close, maybe not quite that confident. i mean what i say in the piece and what i've said elsewhere the fed might miss its 2% target by a little bit. so if you ask me is it actually impossible we could come out of this episode with say, 3% inflation? no, is not i'm possible. i don't think we will but is not impossible. david: the other thing he says is that they have all the tools they need to keep inflation in check. now, forgive me, but i have heard other central banks, in various times in history say the same damn thing and they have been wrong. why should we believe this

central banker at this time? >> you know, i think the main reason which i don't think bill dudley emphasized in that talk, certainly not in the clip that heyou just aired, is that inflation is slow to rise. also slow to fall. that's what makes it so difficult when you have to get inflation down but it is very inicia process, if you take out oil prices -- inertia. oil prices sometimes shut up or shoot down and move inflation up and down quite a bit. if you focus on core inflation, which is what the fed does, it moves pretty slowly. if you do make a mistake and inflation creeps up faster than you thought you have got time. not perfect because it gotten higher than you want it to, but you have time to cap it so inflation doesn't get out of control and i think that is the biggest insurance policy. david: i understand, the way that, the way they say they're going to cap it is by locking up

reserves, by, offering higher interest to lock up the reserves. that would really, sort of starve the economy of some growth capital, would it not? >> well, if you're fighting inflation you are starving the economy. david: yes. >> i'm a little bit more skeptical about how fabulous the interest rate on reserves is as a dampening factor. i think it makes perfectly good sense to do that but i'm just, i don't believe the fed can wield that like a precision instrument the way it used wield the federal fund rate. they have pretty good idea when they changed the fund rate what would happen. the interest rate on reserves is an untried tool. there is nothing illogical about what bill dudley said. it is all perfectly logical but i sit here looking at banks now and i see the fed is paying them 25 basis points on excess reserves. and yet they're holding

2.5 trillion. that doesn't make fundamental sense to me. david: right. >> why would they be holding so much at 2.5 trillion? that makes me wonder whether i can accurately, not wonder, it makes me really question whether i can accurately predict how much they would hold if that rate was a lot higher. david: by the way, the other thing he is optimistic about, and we're going to play the third sound bite we have on growth by the way for the producers, is the question of growth. and of course they were very optimistic at the beginning of the year. janet yellen said 3% or higher. right now he's still looking at a 3% target. let's play that sound and get your reaction. >> about a 3% growth path. that will be sufficient to gradually use up some excess slack in the labor market, put americans back to work. david: that's a pretty optimistic growth rate, is it not? >> yeah, but i think what he means is 3% for the balance of the year. if you go back to the last official forecast of the fed, they were forecasting roughly 3% for the entire year, four

quarters. we've already had a zero which looks like it is going to be revised down to negative. so if we get three, three, three, for the remaining three quarters of the year, we're going to be, we'll be lucky if we make 2 1/2 for the year and we're probably below 2 1/2 for the year of the if you put it that way it doesn't sound as rosy if you did just say the number three. david: right. okay. we'll see. he is on record with fox business. and so are you, alan. good to see you. thanks very much for coming in. alan blinder from princeton university. >> great to be here. david: by the way you can join the conversation, was today's rally which was pretty damn good, was it really lead by the fed's commitment to keep easy money coming? send us a message, facebook.com/afterthebell. we'll read your answers coming up. liz: by the way the before the minutes were released the dow was up 140 points, 30 points. david: it sure was. liz: the president increased -- is meeting with companies that increased their production in the united states.

up next we're speaking with one of those in attendance, the connect president and see know, it's a toy company. david: even a beef recall may not keep meat lovers away from one product that is soaring in popularity. coming up our own jeff flock is giving us all the juicy details. liz: looking for a faster way to get places? try this on for size. look at this. we'll tell you just how fast this jetpack can take you when we go "off the desk." ♪.

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...ask your doctor about reducing the risk of stroke with pradaxa. david: releasing list of 2014's most valuable global brand and first time in three years apple was dethroned from the top spot. at number five is the highest ranked non-tech brand, mcdonald's after falling 5% in value still up there on the list. rising to fourth, microsoft saw an increase of 29% from last year. remaining in the number three spot, ibm, solidly in the middle. apple slipping to number two after its value fell 20% over the last year. the company that beat apple to the number one spot, are you ready? google! it has grown 40% since the last year and brand value of is $59 billion. it was due to google's revolutionary product the and its work trying to make wi-fi available global. liz: interesting, google. this week the president met with

executives whose companies have chose own to increase their footprint here in the united states. among the executives in taken dance was michael arrington, con nex brand ceo. they produce 95% of the its parts an 08% of its finished products, mostly in toys right here in the u.s. michael joining us live to join us what steps washington is taking to attract more business invest to the country. tell us about the meeting. what were some of the best ideas you heard about today? >> sure, it was a great meeting, liz and great to talk to you again. the meeting focused on investments in the united states to make it easier for companies here that want to expand and companies from overseas like to grow here. what i like to call patriotic capitalism. what select usa, what the president has done, make a single point of contact for companies to invest so they can go across all the different regulatory agencies with one point of cabs.

liz: that has been the biggest problem. we talked to a guy who founded crumbs bake shop, just in new york alone it was so onerous to get through all the regulations. we want people to be safe but do they really have some muscle behind that kind of idea? >> they really do. one of the examples that happened in the meeting. i was there with the chair of lufthansa airlines. he made a decision to move one of thai new operations here instead of going to panama. 500 new jobs, half a billion dollars investment because of that single point of contact. we're seeing that happen. they're very excited about a energy boom that is happening in the country. the shale, which happens also in pennsylvania where we're from. it's a real deal. all of that pipeline being built and see that as important for manufacturing because low cost, abundant energy is something very important for that to continue in this country and they're behind that it is exciting to see, as far as i see it, america's open for business. liz: michael, you brought a lot of your manufacturing back. first of all how is business doing since then?

>> business is doing really, really well. what we're seeing, more consumers are working and toys tend to be a little recession resistant. we also have toys and manufacturing business and windows into construction and point-of-purchase display and medical into a variety of different things. so we're seeing a pretty vast a ray of industry and on the whole i would say that things are growing. not as fast we all would like. you talk about that on this program all the time but much better than they were three years ago. much better than they were two years ago and the backlog that we're see something very positive. liz: it has been a couple of years that the obama administration talked about making it easier for companies like you do bring companies back. we pressed treasury secretaries in the past, tim geithner i had a conversation a couple years ago at ford stamping plant because the corporate tax right. >> right. liz: we do have the highest corporate tax rate in all developed nations and i need your comment on that.

this is timothy geithner. >> we have a business tax system that was designed for a different era. we have one of the highest statutory rates in the world. our effective tax rates are like competitors but statutory rates are very high. one of the things we need to change the system so we're strengthening incentives for people to build and create things here in the united states. liz: that was two years ago. so do you feel that we've made some headway in doing that? >> so on the tax issue i do think that we have a lot of work still to do and probably for a longer discussion than we have time for today. but as you can see, both sides of the aisle have trouble agreeing where to go with tax reform. i'm for tax simplification. we made that clear in the meeting, we would have rather have fairer system, tax credits for capital equipment, accelerated depreciation. definitely more work to do. on the positive part of it though what people are seeing is that this is the largest consumer products market in the world. people want to be here and as more consumers, we're 70%

consumption economy. as we have more consumers who are working, more companies are doing better. if we do that we wrap that with energy policy and immigration reform. i think we've to the a great framework for growth. liz: sounds easier said than done. >> well you and i sure could agree, liz. liz: exactly. the president had a rap, had a reputation actually for being business unfriendly. how do you perceive it? do you that is unfair or do you think he could go a long way? >> look i think obviously there has been some issues he probably and i would disagree on. i can say that, fritzer is has a -- pritzker has a huge business background. she makes sure america is open for business. she was on video screen doing a deal with africa, looking to get a deal in the united states. jeffrey zeints who runs economic policy. he is former bain capital guy. clearly people focused on wall street and focused on business. he has people around him that very much understand america

works only if business works. it certainly helped our business. i think there is always more work to do but we're making good strides. liz: michael, always good to talk to you. yes or no, are you hiring? >> we're lying. we're hiring this year. we're looking to built another plant next door. so we're very excited. >> that is great news. a man who brought business back from china to the u.s. the company is k'nex. make sure you use products in usa. david, lower flatter taxes. get rid of deductions, lower tax rates. we all can agree. gm not out of the woods. automaker announcing another early. we'll tell you who is impacted. a popular old product with a new brand around the country. beef jerkry been around forever. it is becoming a $2 billion business. coming up we go to a beef jerky outlet with our own jeff flock to look at the growing trend. ♪. you, my friend are a master of diversification.

who would have thought three cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*?

liz: this story is starting to sound like a broken record. general motors is again recalling another 218,000 cars. the newest recall covers certain chevy aveo cars from 2004 to 2008 model years. the day time running lot module

in the dashboard, can overhe heat, melt, perhaps cause fires. looking at the stock, which had a rough day yesterday, up about 39 cents or more than a percent today for general motors. david: will it ever end? beef prices meanwhile reaching record highs. the price of beef hit an all-time high last week. it did lower this week but still 6% higher than they were about same time last year. liz: well there's the beef and then there is beef jerky. our own jeff flock, live from a beef jerky outheat in wisconsin. are they being affected by these prices? >> they actually are. that is part of it. we like to be on cutting-edge of trend. this is trend, i'm telling you folks. i'm surrounded by more jerky than most tv newsrooms i've been in and that is saying something. 200 kind of beef jerky. outlets, beautiful t-shirts there. room for all god's creatures right next to my mashed

potatoes. michael just opened this. one of 21 beef jerky outlets around the country. this is latest franchise craze. not only do they have beef and that sort of thing, typical jerkies but they have these exotics which are pretty crazy. first to a question of price. meat prices have gone up. does that affect you at all? >> yes it affected our franchise tremendously. we tried to consume cost internally and we had to raise price like everybody else in the grocery stores across the country. >> the exotics are pretty pricey to start with. there is elk. there is venison and gator and kang ga room. i might take a taste of kangaroo. there are people that have been trying it. that is kangaroo. that is elk for you. >> elk, okay. >> what do you think? >> i'm from wisconsin, if it walks on two or four feet i'm eating it. >> gotcha. >> what do you say, jennifer? >> the elk is very good.

i enjoy it. >> we kid about this. this is high-end jerky. this is as at this san. this is not truck stop. >> we have a smokehouse in tennessee and smokehouse plants make oven baked. >> michael, 25 year veteran and got a break as this company does. beef jerky outlets around america. 21 of them. plans for 20 more in the next two years. they give a real break to vets starting this. so the beef jerky outlet of the take a look. leave you with the picture. liz: great job. david: thank you very much, jeff. i know what you're seeing to see next looks like something out of the '60s but we have a superpowered jet back to show you the, to test limits reaching a top speed that will shock you. we have details next. liz: video of ceo of one of the world's largest tech companies, proving his product is edible. footage you won't see anywhere else. david: he is not a wrecker can i.

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.

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david: time to go "off the desk," dell ceo and founder michael dell put the company's new biodegradable packaging to the ultimate test at "fortune" magazine breen brainstorm. he paid for mush looms ate, very class illy, using set of chop sticks and water to moisten it up. he has been testing other biodegradable packaging made out of bamboo and wheat straw. liz: off the desk, future of travel is here, h 202 go fast jetpack, whew, could be solution to rush hour traffic. if it could only stay in the air longer. it can only travel 33 seconds t can travel up to 70 miles an hour. not yet available for commercial sale. david: put on elon musk on the job. they will find a way to keep it in the air longer. april home sales expected to

climb 2.2%. liz: tomorrow on "after the bell" we'll give you more access to what is on the minds of top ceos. we're speaking with arne sorenson, marriott national ceo right out of his meeting with the president. don't miss it. david: "the willis report" is next. gerri: hello, everybody i'm gerri willis. right now on "the willis report," what's happening to america's malls? more evidence today that this american institution may be going the way of the dodo. also, what is grandma doing with that pill bottle? the new class of citizens abusing prescription drugs, seniors. and the gray divorce say. baby boomers breaking up at an alarming rates. we're watching out for you on "the willis report." recall of ground beef shipped from a detroit company has been expanded nationwide. 11 people are sick. federal officials tell us they're still trying to figure out where the nearly 2 million pounds of e.coli