[closing bell ringing] >> 3d systems up 7.25%. liz: let's savor the bells on wall street, with the s&p just flat and slightly lower. nasdaq looks to end up just half a point, we'll take it. liz: we sure will on this monday. after records on friday, it is time to get to all the news. "after the bell" starts right now. david: so let's get right to it. in today's market action, we have mark madsen, madsen money ceo. he will tell you how to get the highest returns to your portfolio no matter what the market is doing. we have bryan piskorowski. he has tips for readjusting your portfolios. who knows what will happen with inflation. scott bauer is in the cme. let's talk about housing, scott. you see positive signs on housing stats that we got today.

>> look at it, david. the numbers came out. they weren't blowout numbers. they were higher than expected. the trend continues upward. what does that really mean? there are more houses on the market for potential buyers. you get this, you know, arena now, with rates the way they are. and then we get all these houses that people can now bid on. they can go right after them. what that means, that is good for stocks like home depot. stocks like lowe's. i think that is continue ages of this marketplace where we've seen some of these housing stocks as leaders continuing to the third and fourth quarter. liz: making a little bit of a sneak move has been the nasdaq lately. mark, we are closing today at a 14-year high for the nasdaq. david: wow. liz: let's marry what scott bauer said with what you feel whether people should be in stocks. >> well, what happened was, in 2008, 2009, a lot of people got panicked out of the market. they have been waiting for this period of certainty where they know for sure it is safe to get

in. guess what? that period is never going to come. just because we're at all-time high doesn't meep anything about the near-term future. keep this in mind. two out of every three years the market is up, about 20%. when it is down 1/3 of the time it is down 13%. you have to be in now and in it long term. i'm thinking next 200%, not the next 20%. david: brian, one thing investors are unsure of now is inflation. there are mixed signals on inflation. janet yellen calls it noise. a lot of people think it is more serious. how do you adjust your portfolio, specifically your bond portfolio in light of all this? >> sure. one, when you look at inflation it hovers around 2%. our belief at wells fargo we'll move up to 3% long-term rate over next couple cycles. we'll not get right there, right here, right now. that being said the inflation is carbon dioxide of investing, silent death when you look at purchases power erosion that becomes, remember, inflation is okay as long as i'm getting 3%

on money market. i'm not getting 3% on money market. that is the where the issue really lies. we don't want too much in the way of cash because of inflation long term. that being said, long duration bonds from our perspective don't look like a great deal right here right now. we look to shorten durations on up the portfolio. if we give up yield in that case, what we want to be doing is taking a different look at equities. we want to look at more dividend-paying type equities to make up for the loss in yield by buying longer duration type bonds. that is a strategy we think income investor in this type of environment could make sense in order to get from point a to point b but participate in the equity upside down the road. liz: everybody should stay tuned this hour. we have an entire segment that names specific names that do just that. that will inflation protect when inflation starts to move i here for your portfolio. i'll flip it right back to mark madsen. we've been saying, go into

dividend-paying stocks that are high quality names. is that a good way to go? or do you feel there's another option where you could get more yield or is that too dangerous? >> i hate that strategy. liz: why? >> high dividend stocks turn your capital gains into income. you don't want to have to pay income on your feigns. you want capital gains so you extend them. high dividend-paying stocks don't have high expected returns. high expected returns come from micro cap stocks and high book to value market stocks. these things don't have hardly any dividends at all. as investor i want my rates of returns come from capital gains, not dividends. selling dividends is just a scheme. don't do it. david: i have to have bryan -- go ahead, bryan. >> i find it hard to believe you will talk to retiring baby boomer, talk to them solely about microcap, large stocks. they will not buy that. that is not appropriate investment strategy for that demographic. david: hey, scott, can you be a middleman here? chime in. >> you know i kind of agree with

the last statement. it will be hard to sell that. you look at, i'm not a retiring baby boomer but i'm not so far away, and most of the guys back here. it will be hard to sell that at this point we're looking for just, you know, some of the growth, some of the dividend-paying stocks. i definitely agree with the second commentary. liz: except that mark's names that he has picked, they don't exactly look like these crazy, risky small cap names, mark. let's put them up on the screen, pump you up a little bit. avis, now just in the last hour we had a stock-picker who is very smart, has billions in assets picking avis as well. jetblue. you also like penske. what about these names sticks up for your perspective and oar ideas of investing? >> well, i don't want anybody to go out and start buying up these stocks. look, we own over 12,000 stocks in over 45 different countries. these represent less hand half a percent of the portfolio. what they do they represent stocks with high book to market values. they have a lot of assets at a

distressed advice. i say as advisor, my job is not to sell people what they want. my job is to advise them and coach them what they should have long term. building portfolio they offset the volatility in micro caps and value with their fixed income short term. building a diversified global portfolio is the game, not selling people what is popular. david: bryan, got to say we've got more stats. i don't want to be stat heavy here out of china. a lot of people were concerned about the slowing down of china of the they had some good manufacturing numbers. they're above that 50 number which indicates growth, which is a good thing. is there, should that change our portfolio or our look to the future of investments in any way? >> right. i believe global diversification story is a solid investment route. that is one areas that we've been focusing on this year. one when you look at u.s. invests they have 10 don'tsy to own u.s. stocks and that works out well particularly gains this year and last year.

that being said diversified globally is not is great idea and viewpoint. our investment views, u.s. would be first, international developed with japan and europe second and then emerging. doesn't say we don't like emerging. we believe you should have appropriate allocation of emerging markets. get the global growth story. have the rebalanced mentality. second half of the year. s&p up a third of a percent. rebalancing will have you distribute more internationally than you would otherwise. we think that is appropriate strategy with the broad based approach. liz: scott, you guys in the pits are good-looking at apshuns markets. to many of us options markets send the most reliable signal what the herd is thinking, how many puts, how many calls, how many bearish signals s there a balance you see or tipping point you see, one side or the other? >> no. if i had to say anything that this continued volatility as we are in the marketplace with this slow grind is growing ton coin then over the next four to six

weeks. volatility is not being bid up even at this cheap, cheap price out there across the board. people are not coming for puts per se. the volume is really not one-sided towards the put side which tells me that there's still complacency in the marketplace and maybe for the rest of the summer. david: by the way i have to ask mark one question as we look at gold prices kind of flittering, going to the upside and today potentially flat. you say gold is a lousy hedge against inflation. why? >> because inflation goes around 2 to 3% and volatility of gold is about 35%. so you don't take a line that slowly goes up and try to diversify it with something like this. what you want to do, if you want to kill gold or kill inflation you have to own equities. 6 to 7% premium over fixed income long term. liz: great to see all of you. david: mark madsen, bryan piskorowski, scott bauer. we'll come back to you shortly before the futures close.

thanks, guys. liz: let's make a deal seems to be the phrase of the year with m&a expected to hit $3.5 trillion in 2014. which companies could be next? by the way if you have a sense you could make a lot of money. we have three names that appear to be ripe for a takeover. david: hashtag fail. companies are spending billions to promote their products on social media but is it actually working? or is it a waste of money? liz: if your wallet is feeling little lighter today you're not alone. we're talking about inflation and just starting to rear ugly head with consumer prices up more than 2% in the past year. so we have four ways to play inflation coming up. david: what do you think about inflation? fed chair janet yellen has called the last inflation numbers just noise. is the fed misreading inflation? what do you think? tweet us @fbnatb. your answers coming up later in the show. ♪. [ male announcer ] once, there was a man

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[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ liz: shares of apple supplier micron technology reporting earnings just moments ago. david: nicole petallides has been looking at those numbers. what do they say? >> well they're looking good, liz and david. so let's take a look at micron. it is trading in the after-hours. the closing value was 31.26.

it is looking to the upside more than a dime. earnings per share for the latest quarter came in and beat. so came in at 79 cents versus the analyst estimates of 70 cents. the third quarter adjusted earnings per share. let's talk about revenue. revenue coming in at 3.98 billion versus the estimates of 3.9, below that. 3.89 billion. so you do see beating on both the top and bottom lines. sales beat the street. profit looking good, beat the street. the memory chipmaker doing great here. recently we just covered intel. it too came out and gave good guidance. look at micron in an area where now, this is a case of supply and demand and most recently there is limited supply for these chips and the like w that we've seen prices on the rise. that too may have helped micron technology to the upside. right now certainly is a winner in the after-hours. liz: nicole, thank you very much. we've got s&p futures closing. let's head right back to scott

bauer in the pits of the cme. hi, scott. >> hello. yeah, there's, you know, there is no activity right now. honestly there is almost no activity. i mean that sincerely. so, you know, we closed, just shy of records and this is where we say. i don't think there is any predisposition of what is going to happen with tomorrow on the opening other than the rest of the week is probably a slow grind up. david: scott bauer, thank you very much, from the cme. >> yep. you got it. liz: we're hearing that a lot lately, especially since the federal reserve had to acknowledge it seems to be picking up, inflation. consumer prices last month did post the sharpest increase in 15 months. there it is, up 2.1%. david: so if you think this trend is going to continue, how do you play it? with us is brian perry, editor of cash machine. so, brian, janet yellen is calling the inflation signals

just noise. in other words she doesn't think much of it. others think this could be beginning of a higher inflationary period. what do you think? >> good to be with you. i think we're starting to see a trend and maybe not noise. she definitely wanted to quiet the markets about impact it would have. as you saw the reaction we saw tip fund, they traded higher against bond yield that stayed flat. we saw a big spike in the price of gold, up over $50 per ounce in reaction as well. what you see in the cpi is a little bit telling because we're not really seeing wage inflation. of the cpi, food makes up about 15%, energy accounts for about 10% and housing accounts for roughly 33%. the balance would be in labor and other types of finished good price increases. so the fact that wage inflation is absent from that reading i think is definite outlyer for investors to start taking a hard look at. liz: that's what do. what we do is bring on smart

people like you to tell people how to prepare for this kind of thing. we have four areas, four different names you think are real opportunities. the first one interestingly enough is one that focuses on precious metals. we saw gold jump exponentially last week up a couple days. today up measly dollar here. why do you like the gabelli fund that focuses on precious metals? >> this fund used be primarily gold and base precious metals and they folded 40% of the holding into energy stocks like baker hughes, halliburton and schlumberger. what is leading market higher is energy. liz: look at yield, ten%. >> 10%, they have a covered call buy right strategy they put in place. as volatility increases throughout the balance of the year i which i think will take place in commodity and energy this, is good to bring in premium. covered call premium. pays monthly. nice way for people to get involved in that part of the market with diversified

portfolio that pays a double-digit yield. the stock paid around 20. today it is around 10. gold a hair over 13. i think we can catch a nice trade and at least be well in front of inflation demons if in fact they come out of the bottle. david: the yield is not quite so good, but master limited partnerships always have good yields, really attractive yields, well above inflation. a lair i don't know is one you focus on, why? >> one of the leaders. it's a universal name. an mlp exchange traded fund fit for just about everyone, because, one, it does cast a net over the entire sector and the sector outperformed just about every other sector last 10 years on total return basis -- alerian. they do not issue a k-1 but a 1099. this can be put into iras and 401(k) plans as just a cash account. it is breaking out to the upside. you've got all the geopolitical

concern overseas and a booming domestic energy policy and a great inflation hedge. it's a nice triple threat all the way around. liz: playing on actual rates and different forms of them involves your next pick. we haven't talked a lot about libor recently but with fs investment corp., fsic, where is the opportunity for a retail investor who is watching right now? >> this is very nice way to come alongside very smart money and very privileged money if you will. the fs investment corp is franklin square. this went public just three months ago. they basically have an exclusive arrangement with blackstone group and originated about 60% of the their deals. what they do is loan money to private, middle sized corporations throughout america. the company is one of the largest in the business development company space. pay as yield roughly 8.7%. pays a monthly income like the gabelli fund. what is nice all the loans they

give out are floating rate. they're tied to libor. of. libor is not run by the fed but a run by a collection of banks that set the rate every day. as rates tick higher on the shortened they're able to charge more on money they lend out and hence you see higher income stream and see your principle hold very well against a tough bond market. david: we've been talking about us hog. some good figures came out. talk about a reit that focuses on adjustable rate mortgage. of course if inflation is going up you are more interested in investing in that area. you've to the a bet in mind. talk about. >> sure a lost people want to be in -- a lot of people want to be in mortgage receipts or. this is probably best-of-breed. 84 years of management expertise. based out of dallas they primarily invest in adjustable rate jumbo mortgages. current yield better than 10%. the company is trading near a 52-week high. it's a great way for people to transfer some their fixed income, long-term holding where they can be sensitive toward

adjustable rate mortgages which really only have one direction to go and that is higher. david: ways to make money, if you think inflation is going higher, brian perry, terrific stuff. thank you very much. cash machine editor. liz: let's put up all the books on facebook.com/afterthebell. some of you may have is missed first couple and you need to hear those. oracle's larry he will is lesson is first to jump on m&a bandwagon and the first deal in five years. he makes a lot of deals and this one is pretty significant. just announced today, how could you as an investor play future mergers? david: you might think that social media giants like twitter are holy grail for advertisers and marketers. but they may not be living up to all their hype. liz: cash is king especially when deciding where to invest. coming up we're telling you the top companies gobbling up their own cash at a record pace. ♪.

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for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? >> time for a quick speed read of some of the day's other headlines, five stories, one minute. first up, chinese investment in the u.s. hit a record $14 billion last year according to a report about it rodeean group. chinese companies employ more than 17,000 americans. starbucks rolling out handcrafted soda. the coffee giant launched three flavors made by ba rest stays at 3,000 locations. check it out.

>> honda, nissan and mazda recalling 3 million vehicles for faulty airbags. this is second recall over the takata-made airbags. online orders over $50 and more and will be subject to a handling fee. messages app, yo. we mentioned on friday, who attacked the company to improve its service. the hackers were able to send messages to users phones and read personal data from the company's database. they were from virginia tech. we said on friday, you should hire those guys. david: and they did. liz: they did. david: listened to liz claman. all about liz claman. liz: it is all about me. david, companies tout their services through facebook and twitter and social media platforms. ads on social media sites are not as effective as a lot of investors may think. liz: we knew that, didn't we?

our own jo ling kent digging into the story. jo? >> they're turning out according to gallup. american companies spent $5 billion on advertising on social media yet users may not be responding at least not yet. 62% of the adults say social media has no impact on purchasing decisions. 30% say there is some influence. 5% say there is great deal of influence. they're admitting it. 20% say they don't know. break it down by generation. the difference is pretty clear. some say it has influence. 34% of the again x. they see some influence. 26% of baby boomers believe they're affected and on down. google, face back, twitter, linkedin, we're watching all the stocks but doesn't mean that social media is not paying off. remember this survey covered only adults without considering that big spending demographic of teenagers, liz. liz: jo, the question becomes what should companies be doing

differently to make us look at the ads to deal with them? >> that is exactly what we wanted to know. we reached out to social media marketing firm, ignite social media. they work with nissan, nike, and jeep. we talked to the president about this. don't treat facebook and twitter as added platform but for opportunity to engage with your audience what they care about, brands with strong brands identities. they don't post ads but post content their audience likes to consume and share. the other piece of evidence, figure out what your expectations are of social media before you start. what do you want to do? draw people to the website? improve seo? set the goals and measure your success. liz, dave. david: thanks, jo. by the way we're asking you on facebook and twitter whether you think the fed is misreading inflation. shannon on twitter says, yes, the fed has to inconclude things that matter. have you been grocery shopping lately? liz: there are all kinds of discussions and arguments about

the core rate which exclude that. david: you have to include food and energy. you have to. everybody needs it. all right. liz: m&a mania, sweeping wall street with deals. we want to talk about every day so how should investors ride the wave? what is coming next down the pipeline? we have names for to you watch and maybe invest in next. david: also private equity powerhouses like blackstone group, they are sitting on a mountain of cash, a record mountain of cash, more than a trillion dollars in fact. coming up we're going to find out where those firms could put all that money to work and how you can get in just as they do. that's coming up next. ♪.

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david: when it comes to investing cash is usually king. companies that generate cash give investors greater confidence in the future of the company while those that are burning through cash give investors reason for pause. now here are the top four non-financial companies in the s&p 1500 that are gobbling up cash. carmax, coming in at number four. the company had a negative cash flow of $774.7 million from operations in the past 12 months. sun edison has a negative cash flow of more than 800 million. homebuilders lennar burned through 880 million in cash in the past year. and at number one, you might have guessed it, jcpenney, which

has more than 1.3 billion in negative cash flow in the past 12 months. liz. liz: david, it's another big merger monday. tech giant oracle, we told you, confirming it will acquire software company micro systems and wisconsin energy announced it would buy integris energy group. with n and a -- m&a deals planning to reach a massive $3.51 trillion, will robust m&a activity continue? how do you capitalize on that? and wait a minute, is it a sign of a market top? we have somebody we hope knows the answer, brian frank, frank value fund portfolio manager. what will drive it? it would be obvious to say cheap money by the fed. has to be something else too. >> rates will go up eventually. we had cheap money for a while. we got the care scare when rates went up last year but they have come down.

almost like second coming of a boom. liz: a warning sign of companies with cash better start to put it to work by buying some companies. >> eventually. rates will go up aill happen eventually. liz: is it sign of overvalued market when you start to see almost frantic m&a activity? >> yes i wouldn't want to be in shoes of some private equity investors right now. valuations look pretty stretched to me. i'm a fundamental guy, i have a value guy and i have a lot of cash in my portfolio right now. it is difficult to find a place to put money at work. liz: look at the number. global m&a activity up 54% year-over-year. here in the u.s., we had very low rates zero to a quarter of a percent for years now. it is not like people waking up and saying oh, we have cheap money. these are the top deals of 2014. time warner cable with comcast. directv and allergan. allergan is not really happening 100% just yet. valley i can't wants it. forest labs, what's app, bought

by facebook. these are names billions and billions of dollars. at least the shareholders are richer. we want to spin it forward. do you feel the panic to acquire and merge is still continuing and if so what area? >> yes, i think it can continue definitely. like i said, rates are going up eventually. the place thaw look for to put the money to work are companies with consistent cash flows and that don't have a lot of debt on their balance sheets f you're going to buy out something you need a strong balance sheet because you're going to leverage it. you need to make the interest paints. so you have to find something that will be consistent of the production. liz: get to some of your picks. we'll put them up on the screen. first one is rpx corp. do they do much? they're in the patent world. that is certainly in the news. why would they be a takeover target? >> like mutual fund, they're one of the good guys out there. they bought a portfolio of patents and they have large tech companies like google and hp as

their clients. rather than being like patrols, we're not going to sue you. we'll license the patents and look at your technology and buy patents that might be threat to you. liz: do you have likely acquirer? >> i think it could be a business services company or perhaps a consulting company. the real reason you do it, 30% cash. they don't have any debt on balance sheet. it is extraordinarily consistent business with long-term contracts and till will be here throughout the recession and cycles. liz: you say watch out for company like roadrunner transportation systems. what do they do and why do they fall into the realm of being great opportunity targets? >> i love high return on capital companies, which means companies that don't have a lot of fixed costs. they're in the transportation industry which is high fixed costs but they don't own any of the trucks this is trucking company that tells trucks where to go. they call it a asset light model. they have a network. tell trucks to pick up certain locations to make sure the efficiency is higher and they have been rolling up 34078 and

pop operators for years. liz: vitamin shop is name people know. they pass it in the daily business but you say this is another m&a activity operation. >> we go for high quality names. not enough for high return on capital and low valuations but fantastic company, they have a good competitive advantage. liz: good cash flow. >> definitely good cash snow. consistent. one of only retailers that grew in 2008 and 2009. more of a demographic story. baby boomers want to stay healthy. they're going to vitamin shop. gnc competitor have been having bad things to sales lately. vitamin shop is doing okay. liz: i think what would buffett do and what would buffett buy and p-e ratio on this one? >> p-e ratio is bit misleading. we look at ebitda. it is trading eight times ebitda which is especially law. liz: ebitda is earnings before all the other stuff in there, taxes amortization?

>> we try to boil out the operating part of the business. we like owning businesses. >> figure out what the nut is. brian, thank you very much. by the way we'll put his picks for m&a targets on facebook.com/afterthebell. david: love the show. great advice this show. we're not finished yet. the private equity industry is swimming in cash. well over a trillion dollars of it in cash. why isn't all this investing being done? what are they doing with that green? what does it mean for the average investor? well tell you coming right up. second avenue subway in new york, sometimes the called the line time forgot. there could be light at the end of that tunnel ahead. one of america's worst companies to work for. are you working for some of them. we're bringing results of a new survey that is creating quite a buzz. it is coming right up. ♪. [ laughter ]

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or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. >> 24/7 wall street released its annual list of not the best but the worst companies to work for out of more than 500 companies analyzed. here they are. the top five. apparently worst places to work. starting off number five, brookdale senior living, which provides living care options to seniors. apparently many employees record more management conditions and

understaffing and high turnover rates. fourth place, men's retailer joseph a. bank. workers complained about difficult commission structure and ever changing product prices. telephone company frontier communications. according to 20 four seven is the third worst place on the list. at love employees think the company is no longer at the top of its industry. number two, express scripts. one of the top complaints among employees poor work life balance. the worst place to work according to this list, books-a-million. the second largest book retailer in the nation. workers cite a high level of stress and low pay as two of the main reasons this is supposedly not an ideal work place, books-a-million. remember that stock, bam? david: one of the best places to work is private equity company. these days private equity is sitting on a pile of cash, a mile high. in fact the amount of cash held by private equity firms has never been this high.

topping out in june at staggering sum of 1.1 trilliondollars. that is great news for private equity firms but why are they keeping so much of their powder dry? what does that mean for the rest of the economy? joining me lee during ranter, private equity leader at bdo which closely months tores private equity fund and managers. lee, what is holding the money back? >> actually, there's a little bit of a dearth of investments right now. the company themselves are basically trading at very high multiple. there is a lot of money chasing fairly few deals where companies may have ebitda or the operations that the private equity companies are looking for so those really good companies for potential investment are getting a lot of attention but quite frankly there is not enough companies out there for private equity firms interested in deploying that capital.

david: you pay a price for all that cash. 1.1 -- i'm sure there is some way to keep it in short-term fund to get interest so they're literally not in cash, are they? >> no, that is true but actually a lost fund is really commitments on the part of the limited partners. not all the cash is deployed. it is actually committed capital. so the limited partners though, they want to use the cash. they're putting pressure on private equity funds to source good deals. that is putting a lot of pressure on them. david: liz was talking earlier about merger monday. we see a lot of buyouts. in 2013 there were $171 million worth of these private equity buyouts. so that's a fair number but still not enough to chip into 1.1 trillion in cash. >> actually, the 1.1 trillion is unlevered. do a buyout using 50% leverage,

there is a lot more capital that can be deployed out there in marketplace right now. david: what is all that cash waiting for? are they waiting for the right price, the right deal, or what? >> all of the above. obviously they're in for basically in for return. higher pay up front that means greater return down the pipe. looking comparative multiples at least more in line what they're expecting within the fund. they're looking for industries particularly hot and trying to get in on on a new product or offering they see is hot in the market. and. right now there is a lot of money chasing too few transactions. david: the average investor that don't deal with private equity fund, is there a way to follow what they do with this cash? eventually, particularly if inflation is rising they will have to put it to work.

is there a way to follow in what they kind of do so there is a way to get in on deals they get in on? >> there are sources, periodicals, for example, that tracks monthly transactions, quarterly transactions, any number of periodicals quite frankly and go on line, check for pe dining guest and mergers and acquisition magazine with corporation for growth and they have information available for readers. david: there is a growing secondary market for private equity. i wonder how that is growing and how maybe investors get in on that? >> well the secondary market is really right now is still a little bit small. private equity funds are rebalancing their portfolios. while some may not be able to find good transactions, they're sourcing it from other private equity funds. secondaries will actually become

a growing market. we believe liquidity will start to increase. some fund are actually building portfolios and allowing limiteds with smaller capital to come into the funds. i don't think that is going to be coming up very soon i think that will be a couple years before we see that play. david: lee durant, from bdo. thanks for coming in. appreciate it. >> thank you. david: liz? liz: we've been asking you on facebook or twitter whether you think the fed is misreading inflation. jamie cox, told us on twitter, no, they're just ignoring it. join us in the conversation. tweet us @fbnatb. after decades of delays the first major. >> expansion of new york city's subway line in 50 years is finally taking shape. we take you 12 stories underground and give you an inside look at this multibillion-dollar project courtesy of dierdre bolton next. david: i've been here 30 years. i've been hearing about it for

that long of time. also, are you struggling to find the time to catch up on your favorite tv show? now there's an app, as you could have guessed for that specifically and it could save you hours of your time. we'll tell you what that app is and how to get it coming next. ♪. wondering what that is? that, my friends, is everything. and with the quicksilver card from capital one, you earn unlimited 1.5% cash back on everything you purchase. not just "everything at the hardware store." not "everything, until you hit your cash back limit." quicksilver can earn you unlimited 1.5% cash back on everything you could possibly imagine. say it with me -- everything. one more time, everything! and with that in mind... what's in your wallet? peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner,

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liz: the big dig is in the rear view mirror and now this is one of the nation's biggest infrastructure projects. phase one of new york city's $4.45 billion second avenue subway project will be open for service in, 1,000 days? less than 1000 days. david: we shall see. i don't know. the mta's lead engineer brought our own dierdre bolton 12 stories below ground for an exclusive look at the project. she joins us now. deirdre i've lived in manhattan 30 years and they have been talking about this project. >> when you watch "mad men," you hear references from late '50s and '60s. my apartment will be worth a plot more when this is finally finished. we're still talking about it. people have been talking about this since the '20s. i felt like this indoor crazy monkey with scaffolding but 12 stories down. the really the head enfear told

me the hardest part of all this was essentially selling local residents on the idea that all this digging and dust was worth the hassle so we talked a little get about the economic effect. here is what he told me. >> they will be seeing an immediate benefit. day one this stretch will carry 200,000 people a day, number one. number two, the real estate values started to go up right as we speak to somewhere, for the residential 20 to 30% what it was two years ago. so, that part, the economic value, it will be apparent very quickly. >> okay. so that is the man in charge of the project. and essentially, i don't know if you knew this, little new york city trivia, on the 456 line you have 1 1/2 million commuters daily. to put that in context, liz, you talked about the big dig. that is more than boston and chicago put together. this is meant to alleviate some

of this pressure. liz: were you nervous going down there? >> you should have seen me like this, death claws on scaffolding. it is really scary. it is scaffolding. it is not a whole staircase yet. david: a lot of people live down there almost all the time. >> years and years. they hired 1800 workers. david: we'll see if this time is the real time. liz: catch deirdre every day at 1:00 p.m. right here on fox business for "risk & reward." david: forget sky marshals. china has a new way to protect passenger jets from hijackers. we'll tell you about a unique training program. liz: do you have a long list of shows you're dying to catch up on and don't have the time to watch the full season? you can watch entire seasons in just 20 minutes? how does that work? well of course we'll tell you next. ♪.

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picks time to go "off the desk." airlines in china will soon have a new tool in their arsenal for fighting terrorism. you might recognize some of those poses. training flight attendants, now learning kung fu in addition to regular in-flight duties. the aviation school, has start ad course where it teaches flight attendants how to subdue dangerous passengers or hijackers using traditional marshal arts. the school hired special teachers so the 20,000 students could learn how to fight terrorism in the sky with sidekicks and back punches. all those things liz knows how to do. liz: if you don't have time to catch up on recent episodes of "game of thrones" everybody is talking about, listen to this there is video sum maization app to help you much the app, here is what it does, condenses entire tv episodes and films into two so three minute clips,

using algorithms that analyze the juiciest, most prevalent scenes and frames. it allows you to watch whole season in 20 minutes. usually made up of the six of the most 30 second themes. david: we asked you whether fed was misreading inflation. margo says which ones you use, cpi, ppi or chain cpi. i do not believe we have just 1% inflation. liz: lisa on facebook says checkout weekly at the food store and gas station shows otherwise. david: bingo. tim, thinks fed needs to stop print printing so much money. liz: tomorrow we get s&p/case-shiller, housing price report, scheduled for 9:00 a.m. eastern. economists expect home prices to rise .8 of a percent. getting new home sales data in may. we got existing today.

they are expecting sales of new homes to rise 1.6%. david: "the willis report" is next. gerri, those car recalls, they keep on coming, this time not from gm. gerri: that's right, thank you, liz and dave. that's right, is honda, nissan, mazda. big story today. also in our show, the g.i. bill, a game-changer for veterans, turns 70. is now the time for a new g.i. bill? would such a thing even pass congress these days? also how out of touch can one woman be? hillary clinton steps in it again with comments on her wealth. we're going "back to the future" in a winnebago. this time machine is anything but old-fashioned. we're going to give you a ride. "the willis report" starts right now. gerri: we begin tonight with another massive recall. this time involving airbags that may explode, shooting shrapnel all over the inside of