why? >> reporter: right, alibaba came out with earnings and revenue growth slower than expected. cheryl: and real quick on gm, only one car, this is older cars, just wanted to get that correct. david: not a great year for gm with regard to those recalls, but not a bad day considering what's going on. we have everything going on in iraq, everything going on overseas and worry about what the fed might or might not do on wednesday. really rattling the markets throughout the day, but at the end of the day, they did manage to squeeze out the green on virtually all of the indices. it may settle in the negative jt looks like it might just be up slightly so. a very busy day on "after the bell" which starts right now. ♪ ♪ david: let's get right to the action, hank smith says there's

still a ton of cash on the sidelines that could make its way to the market, that could raise stock prices even more, then david richman, who tells us why he likes biotech despite the downturn in that industry and gary kozlowski joining us from the cme. gary, why wasn't the market more concerned at the end of the day with what's happening overseas? >> well, right now, okay, we heard a lot of different issues this morning, you know? first we had the new york numbers come out. they were positive numbers. we saw the s&p and all the other indices taking a nice runup, and then the imf and says, well, you guys aren't going to hit your gdp numbers for the year, and we saw readings falling back down. and now what's going on with ukraine, russia, iraq, everybody's just sitting on the sidelines. what we've got to look forward to in the next two days is the fed meetings and, of course, that's going to trump everything else right now on wednesday afternoon at 1 p.m. central time when they make the announcement,

that's when everybody's going to get in, but right now it's really thin volume. cheryl: we'll have that live here on fox business. david, you're both bullish but, hank, to you first, we could see a little bit of a pullback and that would be normal, but overall there's so much cash on the sidelines that the market's going to continue to move forward into the green for the rest of the year. >> that's right. we've felt for this entire year that we would have pullbacks and possibly even a correction, but they should be short-lived because of the cash on the sidelines. so many investors have not participated in this bull market. we had 6, 7% pullback in january that was completely reversed in the first two weeks in february, then another mini pullback at easter time reversed the following week. and look at the news last week with the cantor defeat and what's going on in iraq, and we still can't get a selloff in this market. i think that tells you a lot about the strength of this pull market. david: not only not a selloff, but, david, the big names in

particular. if you want to play it safe and go for the big names you kind of lost the opportunity because they're so high. stocks like johnson & johnson and other big name stocks. what about europe? you still have in europe some big name companies that have not moved high up to the upside. what are some of those names, and should you put your money there? >> well, david, we would agree that europe is an opportunity to look at. it might be a little bit early for some investors, but you have to buy before you're totally comfortable or, obviously, you've missed the boat. so we're starting to dip our toe into europe. we would stay with market-leading companies. but really we think there's a lot of opportunity here in the u.s., specifically in small caps and biotech. cheryl: and also, you know, hank, i wanted to go back to you because david just mentioned johnson & johnson. this is a stock that's up over 20%, and you say the pipeline of new drugs is one of the reasons you're really bullish on this stock right now. >> yeah. that and all the headline risks

with their operation problems that plagued the company for several years, that's all it's them now. past them now. look, you have one of the highest quality companies, extraordinary record of earnings per share growth and dividend growth. has it gotten ahead of itself? i'm not sure, but i think it's a classic defensive steady eddie that should be in everyone's rfl. this is a stock you can go to sleep with at night and get a two and three-quarters percent dividend yield and though you're going to get growth going forward. david: gary, what about that imf downgrade? are you concerned about that? >> no, not really. i think a lot of that was priced in early. then again, you know, we're seeing these record numbers day in and day out, day in and day out. and like your other guests were saying, the volume levels right now, there's so many people sitting on the sidelines, it's not going to take a lot, and today we saw that as a classic example. not a lot of volume in the markets, one little piece of information like that, we saw it

draw back down. now it's leveled off. we're down -- we're up about two points right now to close out the day. so i'm not really concerned about that imf. i don't think anybody else really did take it. it was just one of those little momentary lapses in the market. cheryl: well, we're getting some great ideas for all of you, and, david, you like rockwell medical. the stock is up 180% over the last year. you're staying with this one despite the huge runup. why? >> well, the way we look at rockwell medical is that they were down at $3.50 when they did a fundraising last year. they wanted to wait until data came out. it did. the shorts took advantage, knew that they needed money. drove the stock price down, but we believe that their earnings and their revenue will go up multitudes once that drug is approved, and we have a january 24, 2015 date now. in addition they have vitamin d that they should get an approval for, the only generic vitamin d

used in renal, so we think there's plenty of upside in rockwell medical. david: we're three years now without a full-blown correction. does that concern you at all? >> it does concern -- david: hold on, hank. >> yeah, no, it's the fifth longest period without a correction. and, look, corrections are normal part of a bull market. so are we concerned? no, because ultimately bull markets end in advance of a recession, and we think the probability of that is very low at this point over the next 18-24 months. david: but i'm not talking about the end of a bull market, i'm talking about a correction. not an end of a bull market, hank. we haven't had a -- >> right. david: -- a real, full correction yet. does that worry you at all? >> no, because there is still a lot of skepticism and anxiety in this market despite the advance over this period without a correction. look at the fund flows.

you still have money going into bond funds. anyone buying a bond today, a u.s. treasury at 2.5% is not expressing confidence, optimism, euphoria, greed, none of the above. they're afraid out of their minds. cheryl: all right. and you know what? you both are saying, look, you know, despite the tact we haven't had a correction, to david's point, david, you say that -- this is to david richman, that there's still going to be a lot of drivers this the market that are going b tock kind of positive, but you're going small cap, medical, you're not playing that larger index, if you will, david. why? >> we're actually playing both. so we do think the economy and earnings are good, as your previous quests have said. we think that the globe is awash in liquidity, and we think the u.s. is a safe haven. so i think that prevents any real concern about a prolonged downturn or correction. but the small caps, the other way to look at this is how can i hedge my portfolio so that i can still go growth, but i have very

specific drivers of revenue and profits, and that's where we think the small cap biotechs that are developing their first drug -- cheryl: you had some interesting names, some very interesting names from you guys. hank smith, david richman, gary kozlowski, of course, we're going to come back to you shortly for the s&p futures close. david: thanks, guys. >> thank you so much. cheryl: home builders confidence rising this year, but many are still concerned about tepid demand. we're going to get the real story from the nahb jerry howard, fox business exclusion f interview. david: also, violence continuing to escalate as the iraqi government louises control -- loses control of another key city. the spotlight seems to be turning toward this potential deal with iran which has a lot of middle eastern states very worried. we're going to be talking to the former ambassador to one of those states coming up. cheryl cheryl and the imf lowering its forecast today.

liz claman went right to the source and asked the managing director in a first on fox business interview at the imf headquarters. liz? liz: and that's because we're looking in the rearview mirror. that's the good news. the reason they have to downgrade gdp? well, just stay tuned. you will find out the exact reason coming up live right here from the international monetary fund here in d.c. my one-on-one with christine lagarde, coming up. ♪ ♪ [ male announcer ] what if a small company became big business overnight?

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[ male announcer ] celebrate every win with nicoderm cq, the unique patch with time release smartcontrol technology that helps prevent the urge to smoke all day long. help prevent your cravings with nicoderm cq. cheryl: xm announcing earlier in the hor they're going to recall another 3 .16 million vehicles. david: let's head back to nicole for more details. >> reporter: very serious about recalls, ignition switches in focus once again. the bid/ask for the stock itself is actually still higher than its closing value. the closing value is 36.06, the bid/ask slightly above that at 36.0 8. but what's interesting here is last week we talked about more recalls, today once again more recalls, over 3.3 million cars particularly in the north

american region. so they will replace ignition keys on over three million vehicles, they're focusing on the 2000, 2014 model year or cars here in the u.s. i mean, that's a huge span, 2000-2014. they're aware of eight crashes and six injuries related to this recall, and we'll be taking charge of approximately $700 million in the second quarter related to this recall, it will include the lacrosse, the deville, impala, monte carlo just to name a few. last week we focused on buick, we talked about the chevy camaro. some of the reasons for the ignition problems, last week the driver's knee could put it out of position, and now there's more talk about anything heavy on the key rings. that should just be a warning, cheryl and dave, to anybody. you shouldn't be piling things onto your key ring. it needs to be in a certain position to have safety for your vehicle. cheryl: nicole, thank you very

much for the update. david: not affecting the stock too much. let's head back to gary kozlowski in the pits of the cme. about a minute to go. >> right now it is quiet and, again, there was a little bit of noise earlier, but we're still holding that debt, 1929 level. don't think we're going to have anything more than that. tomorrow we're going to want to be looking at the consumer price index early in the morning and the housing permits. and those two numbers could have a little bit of an effect, but again, everybody's going to be sitting tight, waiting for the announcement on wednesday afternoon. see what our fed's going to do, if they're going to continue on with the $10 billion or if they have something else up their sleeve because we really didn't have a lot of positive numbers the last couple weeks that came out, and there may be a little bit of a hesitation and just keep it going at that 45 billion level. as you can see, they're finishing up here. david: gary kozlowski, good stuff. thank you, hand. cheryl: the imf is cutting its

growth outlook for the u.s. from 2.8% to 2% citing a significant slack this the economy. david so what can get growth going? liz claman got a chance to sit down with the imf managing director, christine lagarde, in a first on fox business interview. she joins us thousand from the imf headquarters in washington. liz? liz: david, first of all, welcome back. and, boy, this is kind of an interesting gift from a journalistic stand point. their annual state of the u.s. economy report that just came out today, i found -- some people find it obnoxious, i found it gutty, interesting, really, really fascinating because she is making all kinds of suggestions, she being christine lagarde, the imf managing director. she thinks if the u.s. were to adopt them, we would improve our economy. things like eliminate individual tax deductions? how about raising the minimum wage, hiking the gas tax? all kinds of ideas come from this report. whether they'll be adopted, we

don't know, but we begin with her assessment of why gdp needs to be downgraded for the year, but what happens next year too. >> q1 was dreadful. q1 predominantly because of weather-related issues was very bad for growth. the turned into -- the u.s. turned into negative territory, and we are not yet on the bottom of it. it was scheduled to be -1, it could be more than that. so the importance of q1 is critical for the whole year, 2014, which is why we have revised down to 2% for 2014. but we believe given the employment numbers, given the industrial indices that we are seeing that q2, q3, q4 should come out really strongly, particularly due to the fact that a lot of inventories have been drawn down in q1. so our forecast is revised

downwards, but our expectations are quite high and positive for the coming months. liz: okay. so gdp growth 2% for 2014, 3% for 2015. >> for 2015. liz: unemployment for 2014, you expect all of it to be at about 6.2%. >> right. liz: then it goes down to 5.9% in 2015. >> yeah. right. liz: if we do what? >> we recommend quite a few changes going forward, and we recommend in particular on the job front, on the growth front that there be two key measures. one is increase the negative tax credit, if you will, so that those people who have low-paid jobs can have the benefit of a bit more income to put on the table. and we recommend that that be coupled with an increased minimum wage. now, i know it's controversial, but we also look at numbers, and we see that the united states is, you know, within the last

three countries within all the oecd countries with a minimum wage that is less than 40% of the median wage on the -- liz: so we have an extremely low minimum wage. >> very low minimum wage and a lot of poor people who are working people. there are about 50 million americans that are below poverty line. so something needs to be done on the job front. eitc increased, minimum wage increased as well. and we believe that the combination of the two -- not one or the other, combination of the two -- will actually help kick start, support growth going forward. liz: i'm going to guess that when you put this report together about the u.s. economy, it may have been a few days or weeks before the major tension alation of violence in iraq. if the long arm of that violence where the islamist militants are bearing down on baghdad and trying to rewrite the borders of

this nation reach across to the u.s. and we have to spend more on defense or we have to change our reallocate some of our spending money, could it change your forecast for gross domestic product? >> you know, when we look at big geopolitical risks of that nature, we have to look at the spillover con -- consequences on u.s. economy, and we believe the oil shock that could result from the current tension in iraq in particular might affect the economy. but for that to happen, it would have to be rather deep and rather long lasting which is certainly not what we hope. but we have to consider all the options, and that could happen. liz: we could have what some are calling the summer of getting nothing done because former house majority leader eric cantor has lost his seat in a primary that shocked a lot of people. in the past you have talked about how inside activity in washington, d.c., specifically gridlock, can hurt the u.s. economy. do you foresee that now? >> we very much hope that it

doesn't happen again. clearly, the trepidation about the budget, the trepidation about the debt ceiling, it could arise yet again in 2015. but, you know, if we learn anything from what has happened in 2013 and early 2014, that it should not be repeated. it's unnecessary uncertainty right at the time when the economy's picking up, when the recovery's firming up and when people are getting back to work. there is still so much to be done. liz: what's her track record? well, it depends. here in the u.s. she was spot on with her team last year. they anticipated -- nobody was really calling, david and cheryl, for a slowdown in the late second half. she did. the team one year ago here stood before us and said we will see a slowdown because of is sequestration. sure enough, we saw it. it's up for debate as to whether it was because of sequestration, but the team was correct on

this, so this is a report to which some people feel everyone should pay attention to. i found it very interesting, but you can see the entire interview on fox foxbusiness.com. she talks a lot about many issues facing the nation today. david david you know, the interesting thing she said was the first quarter this year was dreadful, we all knew that, but she said it might be worse than a 1% drop. cheryl: yeah, i know. david: there may be another revision according to her. interesting stuff. thank you, liz. liz: well, she does keep that open, indeed. david: we'll be watching. meanwhile, home builders' confidence rose the most by almost a year. we ask the man behind this upbeat new report, ceo of the national association of home builders coming right up. cheryl: and generation gap investing. which stock should you pick to ride the millennial and baby boom roller coasters? we're going to give you some names for your portfolios. the answers really may surprise you on this one. david: also as the tensions in iraq escalate, why are more middle eastern states even more

afraid of a u.s. deal with iran? we're going to be talking to a former ambassador of one of those states coming up, and tell us what you think. how high could oil prices go if iraq gets worse? tweet us @fbnatb, your answers coming up. ♪ ♪ peace of mind is important when you're running a successful business.

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cheryl: time for a quick speed read of e of the day's headlines, five stories, one minute. first up, the u.s. supreme court declines to hear raj rajaratnam's appeal. rejecting the argument that wiretap evidence was used improperly to convict him of insider trading. starbucks is offering employees

nationwide free college education through arizona state university's online program beginning this fall. employees who work at least 20 hours a week will receive full tuition reimbursement if they enroll as juniors or seniors. it's a great school, go for it. a glitch in target's crust her checkout -- customer checkout system triggered delays last night, the problem was not related to a cybersecurity issue, but they did just redo all those registers. u.s. petroleum production hitting a 44-year high. petroleum production, including crude oil, was 11.278 million barrelser day in april. nike launches an ecofriendly line of clothes, made without the use of water in a new high-tech dyeing facility. and that is today's speed read, and i made it. david: you did. even with all those editorial comments -- cheryl: even with my adding to the stories. david: well, home builder stocks posting gains after today's sentiment index rose for the first time this year. this as the housing market

continues to regain footing after this very harsh winter. cheryl: and despite this month's rise, the reading remains below 50. what are home builders still worried about? let's bring in for a fox business exclusive jerry howard, national association of home builders' ceo. it's great to see you. i do want to quickly get your reaction to something christine lagarde told our own liz claman earlier today, she's warning of a housing bubble, and i'm wondering if you are seeing some of the same concerns that she is with regards the housing. >> no, i'm not really concerned about a bubble right now, cheryl. i think that there has been a dramatic increase in house prices in some markets. it's been getting a lot of press. a lot of that is investors who have been willing to pay cash. i think that's going to weed its way through the market, and it'll wind down, and you'll see a return to normal investment in housing and, hopefully, hopefully some of the pent-up demand by housing consumers, people who are going to live in the homes, will start to come into the marketplace.

the fact that most of the movement has been in investment and not in people buying homes to live in, i think it's part of the reason why our index is still hovering only around the marginally optimistic range. i think that once you get this pent-up demand actually out into the marketplace -- and by the way, a lot of that is contingent on jobs -- then i think you can see it go higher. david: okay. let's not bury the news which is that you beat expectations. people didn't think it was going the grow as much as it did. the chairman of nahb, kevin kelly, interesting to me he said one of the headwinds against housing right now is the limited availability of labor. that really surprised me with all of the unemployed laborers around. i thought that would not be a problem. explain that to me. >> well, david, the fact of the matter is that during the housing depression a lot of the skilled laborers, the finishing carpenters, the drywall hangers, it takes about 18-24 months to train some of the laborers in the home building sector.

those guys all went and found jobs somewhere else, and they're reluctant to leave their current employment if they have it, and most of them do, to come back into the housing sector. so we're looking at a labor issue that's going the take a while to get through the pipeline. that is the number one concern right now for builders across the country. cheryl: well, speaking of builders, this is a survey, of course, you've got about 2,000 builders in this survey, many of them small builders. i want you to listen to what steven hilton said on "closing bell" last month. listen to this, i want to get your reaction on the other side. >> i have no idea where they got that number. it's certainly not how we're feeling out here. our business is pretty good. cheryl: so this was from the number last month which was a negative number and also arkansas rah hovnanian on the last hour of fox business, and he sees a very positive market and even the reading below 50 surprises him. how do you respond to this that? >> well, you're talking to two different builders that have different markets and different business models.

as you noted, our survey is taken from the whole panoply of builders large, small and all over the country, so it's a very good amalgamation of the total sentiment. i can't speak for mr. hilton's or mr. hovnanian's specific views, but their two companies have in the past fairly regularly taken part in the survey. david: we still have these incredibly low mortgage numbers, interest rates hovering at lows. it does depend on your future more than the low interest rates, and an example of that is you look at those states in which they have these big oil, the shale gas oil, etc., that really plays a role in housing, does it not? whether it's an oil and gas state or isn't? >> oh, absolutely. the areas where we're seeing the most consistent, reliable uptick in housing demand are either energy-producing states and in some of the manufacturing states. the local economy, obviously,

drives local employment which drives local consumer optimism which drives housing demand, no question about that. cheryl: well, jerry, we should also say it's not all bad news, the outlook for six months ahead of time is 59, so those are positive readings. i did want to kind of bring that up. jerry, thank you very much. it was good to have you on the show. >> great to see you again. david: thank you, jerry. cheryl: wireless cybersecurity alert. one of the nation's biggest cell phone companies reveals a data breach. how safe is your phone? david: and the u.s. considers its options after islamist militants seize another city in iraq. hell, they're terrorists, let's call them that. we talk to a former u.s. ambassador in the region about an unlikely potential u.s. partner that the state department is talking about: iran. what form of coordination with iran would we get? what would it look like, and at what cost to longtime american allies in the mideast? cheryl: that is a big question. and tacky or tasteful? it's donald trump versus

chicago's major over a giant sign with the billionaire's name on it. well, that's what he does with his buildings. who's going to blink first? we're going to go live to the windy city. ♪ ♪

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♪ ♪ david: the iraqi government forces have lost control of yet another northern city to sunni jihadists who continue to terrorize and kill their way forward. now secretary of state john kerry is talking about possible coordinate nation with iran which has some folks worried,

not the least of whom, by the way, are actually mideast arabs. for details, we turn to a former u.s. ambassador to one of those states, bahrain, ambassador adam airily. you can practically see iran from bahrain. what do they worry about in terms of a deal between iran and the u.s. about iraq? >> the countries of the gcc, kuwait, saudi arabia, bahrain, the uae and qatar, are all concerned that iran is going to assert its power and its influence in an aggressive way against them. their protection against that is the united states. so every time the united states -- every time it looks like the united states is cutting a deal behind their back, they get worried. that's what happened when the united states announced nuclear negotiations with iran over its nuclear program. they knew nothing about it, and they were totally surprised, and

they were quite alarmed. david: i think a lot of people out there,, would wonder why. i mean, obviously, one of the biggest concerns or one of the countries with the biggest concerns about iran is israel. but why would these arab oil states have concerns about iran? >> because, i don't know, maybe 90% of their revenues come through oil shipped through the strait of hormuz, and iran with basically a couple of large frigates could close the straits of hormuz, that iran particularly in bahrain but also in saudi arabia and kuwait is fanning the flames of sectarian tension, using their domestic shia populations to work against established monarchies. i mean, look, iran is a bad actor. they're a malevolent force in the region, and that's why these countries who are our allies are worried. and they have reason to be worried. david: let me read you, the u.s. has backed off any suggestion of

a military coordination with iran. but they haven't backed off of the idea of some kind of deal with iran vis-a-vis iraq. here's what the new president of iran, rouhani, has to say about all of this. he said when the u.s. takes action, then one can think about cooperation. until today no specific request for help has been demanded, but we are ready to help within international law. is the concern of those arab states that what would start as just sort of a diplomatic effort might turn into some kind of military deal? >> i think the concern of the arab states is vis-a-vis the united states is who is side are you -- whose side are you on? this reminds me of the song, oops, i did it again. we did it once on nuclear power agreement, now we're doing it with regard to isis in iraq. so, you know, the arabs, the gulf arabs are thinking what is the united states doing? whose side are they on? are they here to protect us, or

are they here to sell us could n the river for a deal with iran? david: wow. >> and i think, you know, the united states has lost sight of its allies and its interests. our allies are not in tehran. our allies are in riyadh, in abu dhabi and in doha. let's work with them. and, that's number one. and number two, the enemy in iraq is not the sunnis. the enemy in iraq is nouri al-maliki and iran who seek to -- iran seeks a weak state in iraq and a puppet government that it can manipulate. anything that we do to support that policy of iran is against our interests. david: now, let me just ask how far, we don't have much time, ambassador, but let me ask how far these arab states might go in pursuing their line against any kind of deal with iran. might they perhaps use oil as an economic weapon, if you will, against the u.s. doing --

>> no. david: -- some kind of deal with iran? >> no, i don't think so. look, our interests are too intertwined, our economic interests, our security interests and our shared values. the big difference between the united states and the arab world and the united states and iran is we have shared values with our friends in the gulf. we don't have those same shared values in iran because iran is a theocracy, it is a clerical regime that has the highest rate of executions, highest number of executions in the world after china. and, oh, by the way, iraq is number three. david: fascinating stuff, ambassador. thank you very much for coming on. i appreciate it. >> thank you. david: we have been asking you how high you think oil could go if the situation worsens. jerry on facebook says: as high as our government allows, which is limitless. you can join the conversation, not too late. more responses to come. visit us @fbnatb. your answers coming up. cheryl: well, major wireless company announcing it's been hacked and customer records

including social security numbers have been stolen. details for you coming up next. david: and investing in the next generation. millennials are said to become the dominant force in the u.s. economy. we're going to tell you how you can make your portfolio grow along with the millennials. that's coming up. ♪ ♪ (mother vo) when i was pregnant... i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program

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david: well, a at&t has confirmed thatt is the latest victim of a cyber attack which occurred back in april. the hack is said to have been an

inside job carried out by three contractors who were working with the telecom giant. the attack happened between april 9th and the 21st, compromising customer data including social security numbers, birth dates and this some cases call records. the company has yet to reveal just how many users have been impacted and says it will our one year of free credit monitoring services just in case unauthorized charges or changes are made with customers' personal information. so it continues. cheryl: well, if student debt continues to rise and baby boomers retire, some believe this payments a bleak picture for -- paints a bleak picture for economic growth, but these changing demographics may have a positive impact on the market, and there may be a way for you as an investor to benefit. david: which is a good thing joining us now is janney's chief investment strategist. what makes you think millennials

will work harder or spend less money than us baby boomers? >> i don't know that they have to do either, but the sheer size of that cohort -- which is over 90 million which dwarfs the size of the baby boom generation -- is enough in volume to compensate and then some for probably rez spending that's -- less spending that's going to be conducted by baby boomerrings as they're in the early stages of a retirement boom. david: we should mention one of the reasons it's a bigger number is because of all the immigrants, right? >> population from immigration has increased, no doubt about that. cheryl: we have talked so much, mark, about -- i was interested to see these picks from you because with the millennial generation in particular and student loan crisis, we're looking at student debt in march of this year loans outstanding $1.11 trillion dollars. so these kids are defaulting, it's like more than 40%, 40% jump over ten years ago.

but yet you're still saying that that millennial, a great place to put your investment dollar. explain to me why it would be with the student debt situation in place. >> cheryl, it's a startling number, having that much in student loan debt outstanding, no doubt about it. but a couple of pieces of information, i think, get a bit misunderstood. while the average student graduates with debt of about $26-$28,000 depending on which study you're looking at, the actual median debt per student at graduation is about $13,000. in fact, about 0% of all -- 40% of all students graduating with some form of student debt have less than $10,000 of it. so the point is that perhaps that number's a little bit more manageable than what it seems to be taken at face value, and as a consequence given the fact that surveys still show of millennials that they still want to buy a home, they still want to own a car, they still want to save and invest for the future and take vacations -- cheryl: but they're going to delay that. we've been hearing from other

experts they're going to be delaying those purchases. >> well, some of that is true. we know that household formation is occurring, but where's it going? into the rental market as opposed to the home-buying market. eventually, that's going to shift. the median able of a home buyer is 31 years old. the oldest leading edge of the millennial generation is today 31 years old. so the coming near term years will be telling in terms of whether that demographic goes to what has been a historical precedent when typically you see home buying ignited. david: let's talk about a big difference between millennials and baby boomers that could affect our investments now. we, us baby boomers, had to adapt to technology. millennials were born and raised with technology, so i assume consumer discretionary picks would have to do with technology like amazon, right? >> that would be true, dave. i mean, obviously, a company like that which is sort of an aggregator of products and services given the embracement of technology by that

generation, in particular online shopping growing as much as it is, in fact, you see many brick and mortar retailers doing everything they can to move into the online space, would warrant exposure in your portfolio to something like an amazon to take advantage of that spend. cheryl: you also like, we should say, the banks. i found this interesting because you say the millennials are going to be seeking out advice for retirement. >> certainly, if they become employed, they'll be investing, if you will, more passively in 401(k) plans but in addition to that outside saving and investment is going to probably require some form of advice. in addition to that, the banks are purveyors of financial parts like loans and for, obviously, housing and/or auto loans as students go from, basically, unemployed to gainfully employed, hopefully they're going to be borrowers, and banks will be lenders. david: one more category, and that's health care. the my millennials have more interest than anybody in taking

care of themselves and a whole bunch of health care stocks. >> no doubt about it. obviously, you can look at a medical product mutual fund like johnson & johnson to access that marketplace, but perhaps more specifically and probably something local for everybody that would be in your audience would be outfits like cvs or walgreens which have become mini health care facilities where you can stop in for gatorade and statement get your blood pressure taken. [laughter] cheryl: the baby boomer and the millennial can go in there -- david: mark, thank you. great report, just came out. meanwhile, a battle is browing in chicago between real estate mogul donald trump and mayor rahm emanuel. the billionaire's sign on his skyscraper sounded good in the beginning until the mayor saw it, and that's when the trouble began. [laughter] cheryl: and forget about texting your friend a picture of your pizza. ground breaking technology will

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♪ ♪ david: newly-installed 20-foot letters spelling out the word "trump" on the side of a chicago skyscraper are sparking a war between the real estate billion their and the chicago mayor,

rahm emanuel. cheryl: jeff flock has more from chicago with more on this clash of the titans. >> reporter: these two guys kind of like to argue with each other. there it is, you can judge it for yourself. but you guys are chicagoans, maybe you don't feel the same sort of passion. cheryl: well, i do know that i'm a new yorker and he does put trump on every single building whether you agree with it or not. obviously, jeff flock is -- david: is it still off? still off. all right. well, you saw the story, we'll wait and see how it turns out. cheryl: we'll take a quick break, but coming up, forget the idea of phones with 3-d images for a moment, how can sending someone a -- how about sending someone a smell from your smartphone? david: and it's a treasure-trove of video games. how much do you think this collection sold for? we're going to bring you that very big number this just a moment. ♪

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cools off. ♪ david: jeff flock promised the shot would not go down, so we will go back to chicago. jeff: i cannot make any promises but i have to show you this sign. if you are not in chicago, maybe you don't get it, maybe you don't want it to look like times square or vegas. chicago we don't. the mayor doesn't either. donald trump got all of his permits, it now a lot of people don't like it. people are tweeting they love it.

the liberals want to control everything. since most buildings use gold, glass, it is apparent you don't know good architecture from expletive. we do no good architecture here. that is the wrigley t building. stuart: send a smell through your phone. literally send and receive the smell. cheryl: the largest portion of your games sold for a hefty price tag. over a quarter of the games are factory sealed, collector sold all those video games for more than $750,000. david: we asked you how high gold prices could go, weighing

on facebook says i don't the president can lead us away from a potential $125. about 107 now. cheryl: jo ling kent on "the willis report." the impact they will have on our wallet. jo ling: thanks so much. two big supreme court cases. facebook and aereo. it will have a huge impact of free speech and the internet. let's kick it off with facebook. the green to hear the case of a man sentenced to four years in prison for writing threatening messages to his ex-wife on his own facebook page. he says he is protected by the bill of rights, but is he? with us now, seth, thank you so much for joining us. we know what the local and federal laws are right now. the federal stat