$150,000 per -- liz: my goodness. david: unfortunately we're extending our losses into the end of the day trading. as you can see we're down on the dow 116 points. that may settle even lower than that the worst part of the trading was right at the end of the day. all indices are down. no index down further than the russell 2000, down a solid 1%. a very interesting trading day on a day when our own peter barnes spoke with charles plosser. a lot of that has to do with what moved markets. we'll tell you how as "after the bell" starts right now liz: the biggest drop for the dow jones industrials since may 20th, is how we close out action today but boy, was there action. we have royal oak group managing partner. matt will tell us why he is focusing now on peeling off some

higher risk names and adding lower risk stocks to the portfolio. drew kanaly, here with two specific picks for you to add to your portfolio that he says will keep you doing well. and larry shover in the pits of the cme. we'll start with larry. we're going along in the green and then we ended up looking pretty negative here. what did it? >> you know you're asking a question all the traders behind me are asking. i think right now it is just lack of volume, lack of everything. we could think of three or four headlines that might cause the market to go down but not today. hard to argue against the two good economic numbers we had today on the back of all the really good numbers we had the day before. so right now seems like position and sentiment. behind all that it seems like there is this whole sense of inevitability that the market has to go higher. and because of that, it just causes this red flag that very easy for the market to drop in a vacuum. i think that is what we saw this afternoon.

david: well, there is more trading going on. drew, i have an idea. i'm looking to charles plosser comments. i noted when he began, the when the story he was telling both in a speech and to our own peter barnes we talk to later on this hour, the story he was telling perhaps rates going up as early as this year, earlier this year than a lot of people thought. even though that is probably not going to happen that probably spooked the markets, don't you think? >> right. if there is one comment from janet yellen's q&a session the markets were having trouble, she was fairly dismissive of recent inflation numbers and view them -- david: drew, that was couple days ago. a let is talking what about is whatting now. >> i hear you. they're still reconciling that. the second thing markets continue to watch is what happens to year-over-year wage price moves. that's the real inflation signal they're looking for. but, you can connect to plosser's comments about maybe rate hikes earlier this year

because inflation and fed pulling back stimulus are the two big risks for stocks at this point. liz: matt, do you wait, until you see those signs or do you do things now that protect the portfolio? >> hi, liz and dave. good to be with you at the close. what we're looking at, we believe the market is going to continue to run. the fed will keep rates at zero, which is the green light to be in the stock market. i mean the stock market is the game. that is where all the yield is at this point. while we continue to wind down the bond policy, once we get there, i think the feds are going to relook at where we're at and they're going to try to figure out then when will be the next step to implement in terms of rate raising. until that point, we think the markets is the place to be. today's noise is no big deal. we're bumping around a little bit. liz: okay. >> as we continue to take off, we need to look where that is going to be. david: hey, larry shover.

i'm listening a lot of action over your shoulder. it seemed that we were doing worse as we were going to close of the session s that continuing after-hours? >> it seems to be although we're seeing bottom-fishing from the bigger orders to right of me, left of you you right at the close. a lot of people realize this is lot of air pockets. we're seeing some significant buy orders come in as we speak. liz: significant buy orders. but drew, let's tell people what to buy that you feel is the right buy for their portfolios now. a guest yesterday kind of reamed us that maybe you should buy equities that give good dividends. he felt that wasn't the way to play it. you actually like etfs and funds that can give us dividends. >> absolutely. you should be looking to put dvy in your portfolio. it is yielding 3%. they're good solid dividend players. if we do see some volatility over the summer which we expect, this will be a good place to be.

along with iwd, which is the russell 1,000 value. you will see a lost energy names and health care both very defensive in this market. look, this is not a cheap stock market. this is not a time to be chasing values out there. it's a time to be defensive. but adding to your portfolio as we see days like today. david: also a day, matt, when you have to consider other things beyond day-to-day moves of the market. you have to look at trends. one of those trends are baby boomers. you have got stocks that really cater to the needs of baby boomers. tell us about them. >> well, we're focusing on, as this market continues to rise, what is the portfolio going to look like if we get that correction? so we've been adding some more large cap companies that do have a dividend, and, unfortunately we're looking at health care industry right now. we like cvs, abbott labs and davita health care. abbott labs and davita health care is service, health care stocks and cvs is more of a

consumer stocks. we think those three will bring great value to our portfolios. liz: warren buffett is a big fan of davita. it has a lot of kid any dialysis opportunities. he sees graying of america and health care. that is an interesting pick. larry, tell us what to look for? we get pieces of data tomorrow. we get oil inventories. what are you looking for next week as we head toward july 4th weekend? >> i'm looking thursday, personal consumption number. keep in mind, cpi doubled since october. core cpi drifted towards 2.1. it's a significant issue. on other hand, we haven't even talked about inflation for eight years. it has been that long. in my mind it is very, very hard to believe we'll have any type of significant inflation. i do think that cpi number, definitely was an outlyer. i'm not expecting personal consumption number to do the same upside surprise. however if there is an upside

surprise, there will be no shoulder shrugging by bond traders. you can count on that. david: drew, energy that draggedded market down more than anything else. you like energy right now. i imagine you're looking for bar gains tomorrow, right? >> absolutely. you're going to be looking for that. you about it is not just energy specifically. look, there is manufacturing renaissance going on in america and it is tied to access to cheap and abundant energy some there is two parts to that energy story. so don't focus solely on energy names. there is, manufacturing in u.s., it is u.s. middle america emerging market story investors should look for on the open. david: booed stuff. i like it. liz: matt, drew, larry we'll see you in a few minutes when the s&p futures close. >> thank you. david: thanks, guys. coal stocks in the spotlight this week as supreme court happened ad setback to the epa on the ruling on green house

gases that. -- gasparino. is that -- liz: will the fed's balance sheet force it to raise rates sooner than expected? how soon? we got a little window into this peter barnes speaking exclusively with philly fed president charles plosser who makes quite clear how he feels. david: it is not just home prices rising rapidly. rents have also jumped over the past year. while that may sound contrarian, higher rents are actually good for the housing market. how? we'll explain coming up. liz: tell us what you think. is the housing market a bubble ready to burst. or is it still too hard to get real credit? are we still in recovery mode? tweet us@fbnatb. ♪. [ male announcer ] what if a small company

became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim.

the numbers are impressive.y to new york state. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies.

thit's not the "limit yoursh hard earned cash back" card . it's not the "confused by rotating categories" card. it's the no-category-gaming, no-look-passing, clear-the-lane-i'm- going-up-strong, backboard-breaking, cash back card. this is the quicksilver cash back card from capital one. unlimited 1.5% cash back on every purchase, every single day. i'll ask again... what's in your wallet? david: shares of used car dealer carmax fell into the red after consumer groups asked the ftc to investigate that company. liz: which is weird because just a day or two ago it was the hottest stock. let's check back to nicole petallides on floor of new york stock exchange. >> you're absolutely right. i hope we have the opportunity to put up a one-week chart. i will give you the news of today first because we saw the stock moving to lows we haven't seen in several days.

we have safety groups, alleging that carmax does not repair recalled vehicles before selling them. now, you know, of course we'll have to delve into this but you do have these safety groups urging the ftc for investigation of carmax. meantime the stock fell as low as 42.54. there is the one-week chart we were just referring to. you see late last week that big jump up. that was because of good news out of carmax. they actually saw more traffic in the stores. that is great news. so ultimately we saw it top up only to see it sell off 3 1/2% here late in the day today. so this is a story that we'll continue to follow throughout the week. you don't want to hear if you bought a car at carmax, recently you don't want to hear safety groups the fact that carmax is selling recalled used cars and not fixes them beforehand. back to you. david: thank you, nicole. >> the s&p futures are closing right now. let's head back to larry shover. he is in the pits of the cme. >> thank you.

traders now realize it is really hard to argue against the fundamental landscape of the stock market. with that traders are not even really looking at stock market right now. they're looking a at gold, treasurys, oil prices to determine the future direction of the stock market. the macro seems to be okay. on the other hand traders also recognize we're getting really close to month end and quarter end. behind that, or the next thing that we're going to see is second-quarter earnings. it seems prerogative that we will see a surprise to the upside and continue to march higher. right now traders seem to think today is an aberration due to low volume, low attendance, et cetera. sponsorships, not that great. traders behind me tend to be very, very bullish long term. liz: thank you, larry, very much. larry shoafer. >> you're welcome. david: supreme court issuing a ruling yesterday that gives the epa authority to control greenhouse gas emissions for power plants, other large sources of pollution. however, the ruling does also limit the scope of the agency's

reach which could be good news for the coal industry. joining us about the coal industry and best ways to play it, ubs executive director of metals, mining and coal. thank you for coming in. >> good afternoon. david: here is how "the new york times" starts out their article explaining this today. they say in a big win for environmentalists. if it was such a big win for environmentalists why did coal stocks pop yesterday? >> i see it as a really a win and a loss for the epa. on the win side, the court basically affirms their ability regulate greenhouse gas emissions. on the loss side, they're basically saying the epa overstepped their authority by tailoring the definition of the clean air act to suit their bureaucratic needs. i would say it is fairly small loss in that sense. david: certainly wasn't a loss for coal stocks. they did pare back today but all energy stocks were down today. but yesterday they did pop.

i think the reason why, correct me if i'm wrong, because it clearly defined the legal limits for the epa. before yesterday nobody was sure how far they would go. this sets the limits. yes, it gives them, epa authority to do a lot of what they did but sets limits for them, right? >> sure thing. i think there will be more legal challenges down the road. you have the carbon emissions regulations that they're putting in place. that is going to be tested over the next few years on a state level. ore bums in theed by industry. road for epa. i don't think this is the last say by any means. david: also seemed, the ruling, the supreme court ruling seemed to help smaller companies more than bigger companies. a lost smaller companies were scared to death whether the epa could put them out of business, got some kind of assurances that they wouldn't be. >> epa's agenda is certainly a focus on larger carbon-emitting stationary sources, upwards of

100,000 tons of carbon pollution per year. so they will focus their efforts there first. david: all right. there are some questions about whether the coal that is still being produced and that may not be able to be burned here in the united states, will go elsewhere, specifically to china. is that a possibility? >> well, if china, china produce as lot of coal. they produce four billion tons. they have half the world's coal consumption. so they're fairly self-sufficient in coal. i mean china and india continue to grow. those are economies that will need coal but there are plenty of coal-producing nations like indonesia. the seaborne market is oversupplied. the u.s. can potentially export some excess production but certainly right now it is a pretty, pretty oversupplied market. david: there is a phrase we'll hear more of, if you're not familiar with it already, the powder river basin. that is in montana. it also spills over into the dakotas, a little bit into wyoming as well. there is a company called cloud

peak energy. there is it at top of the map, to take care of this play on powder river basin. tell us about it. >> we like cloud peak. this is 1.2 billion market cap company rate ad buy. this is powder river basin play. that is one basin more immune over media term over some of the negative regulatory headwinds. david: why is it cloud peak could be immune and this area in particular the powder river basin area? >> you have low sulfer coal. right now focus is more on eastern and older eastern coal-fired power plants. those are ones that being retired over the next couple of years. you know, the bigger message here, that i want to talk about is the shift in coal-fired power longer term. you're going from 40% share of coal-fired generation. that will decline longer term down towards 30% or some. so you have a big shift underway as you look forward over the

next 10 or 15 years it is, but -- david: it is, meantime all coal is not created equal. some coal has more carbon in it than others. the powder river basin is well-suited to this. there is company got a 307 yesterday, walter river energy. you think that pop is unwarranted. eventually it will suffer as a result of the supreme court ruling. why? >> walter energy is a little bit of a different animal. we rate ad sell. this is a mets coal pure play. they're not thermal coal company. we're concerned with high balance sheet leverage and high rate of cash burn. these stocks a lot got a pop based on china pmi data which was above expectations. david: but bottom line, it is going to be a while will we really phase out coal, isn't it? talking 20, 30, 40 years down the line? >> you look 20 years down the line at least a third of your generation share coming from coal. the bigger concern though is the aging of the coal fleet. these coal-fired plants are 40

years today. so 20 years from now they will be 60s, mid 60s,. that will still be a big part of your generation mix. you're backfilling all of that growth in the economy with gas-fired power and with alternative energy. so you have to question what is your grid reliability going to look like 20 years from now. david: great to see you. thanks for coming in. liz, overto you. liz: david, one week after the fed policy meeting we've got a fox business exclusive with philly fed president charles plosser a voting member of the fomc, who made some very pointed comments that may have affected the markets today. marc andreessen, easily one of the biggest names in venture capital and his firm is making its second largest investment ever. where? a partner at andreessen horowitz is going to join us live and tell us where he is making his next big bet. with stocks in record territory where can you pick up some bargains? we have names of very

inexpensive stocks, call them cheap, in an an inexpense -- expensive market. stay tuned. ♪ [ male announcer ] if you suffer from a dry mouth

then you'll know how uncomfortable it can be. [ crickets chirping ] but did you know that the lack of saliva can also lead to tooth decay and bad breath? [ exhales deeply ] [ male announcer ] well there is biotene. specially formulated with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your mouth healthy, too. [ applause ] biotene -- for people who suffer from dry mouth. tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads...

tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best

out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? liz: time for a quick speed read of some of the other headlines of the day, five stories one minute of the first up, starbucks, they had to do it. raising prices. the coffee giant will hike the price of some of its drinks by five cents to 20 cents at its stores nationwide. delta collected the most money in baggage fees ever in the first quarter. this according to a bureau of transportation statistics. delta collected $191 million in bag revenues. microsoft offering $650 each to customers who trade in their macbook air for a surface pro 3.

the promotion runs until july 31st. lebron james opting out of his final two years of his contract with the miami heat and will become a free agent on july 1st, according to a person familiar with the situation. james has two years and nearly $43 million remaining on his deal. the u.s.-portugal world cup soccer match breaks a record as far as viewers are concerned. an average of 18.2 million people watched the game on espn, making it the most watched sporting event in network history other than football, the other football. [buzzer] david: the real football. the real football. liz: according to america it is the real football. david: according to most americans here anyway. today's market downturn seemed directly related to hawkish comments made by philadelphia federal reserve president charles plosser in a speech and more importantly in comments i made exclusively to our own peter barnes. liz: joining us is peter with more on his exclusive interview

with charles plosser. i asked teddy weisberg on floor of the new york stock exchange top of 3:00 p.m. eastern show, closing bell, he said what did it? could be turn from positive to negative in turn in markets from what plosser said. >> plosser said in his speech things may be getting better in the economy. on the jobs front, faster than people realize. as a result, the markets may, takeaway may have been, well that means the fed might have to start raising interest rates sooner than people expected. and you know, so in this crazy world of good news is bad news, normalization may have tanked the markets. one of the pieces of normalization is to try to get out of this $4.5 trillion balance sheet the fed accumulated as it was doing all this quantitative easing, all these bond purchases to try to help keep interest rates down, mortgage rates down and others. and he is very concerned about this. and, i asked him, okay, what should you do about it? here's what he said.

>> if we don't shrink the balance sheet or refuse to shrink the balance sheet and let it stay large, the only way for us to reduce accommodation is to raise interest rates faster or higher than we otherwise would with a small balance sheet. i don't know why we have to make that decision. the many people on the committee, i mean people have debated this i don't think we've reached conclusion but, that is an interesting choice i think we face that we need to be attended to. >> do you favor just outright selling securities? >> perhaps at some point if that is necessary but i see no reason why we need to persist in a policy of reinvesting. >> this is very complicated stuff. a lot of economists and analysts out there who are worried because this is uncharted waters for the fed. you know all these emergency perhaps that launched during the financial crisis and now trying to unwind them by slipping the balance sheet. the fed has never tried this before. it is going to be very tricky to make sure it doesn't stableize

financial markets. david: fed led the world in terms of easy money in last regime. it might lead the world in terms of trying to shrink it. housing data, we had pretty positive housing data over past couple weeks here. did he mention anything about that, how that affects economy. >> i asked him specifically about housing. he said the housing market recovery is pretty steady and sustainable pace. that is what he said and it is doing fine and will continue to kind of trundle along is what he said. but he also pointed out that house something now a smaller part of the economy than it used to be. and so he is not as concerned. here is what he said. >> i don't think house something in terrible shape. i don't think we should look at it somehow on the ropes in any way or it is not the, economy can't recover unless somehow it, we have another boom in housing. >> and i said to him during the interview, listen, we've all been brainwashed basically that

if the housing market in trouble the rest of the economy is in trouble? he saying, no, not so. the economy is more diverse today than it used to be. liz: we can see the entire interview on foxbusiness.com. peter, great get as they say. david: great stuff. peter barnes, moving the market. thank you, peter. could the latest housing sales numbers show recovery is back on track? wait until you hear why now may be a good time to buy. why rising rents may actually be good for the housing market. we'll explain. liz: plus, more than half the fortune 100 companies use this company's products, that you might not have ever heard of them. the products to pinpoint cybersecurity threats. the i.t. pros in your company love it, but with so many security products on the market, why is one big vc firm, biggest of the big, actually, betting $19 million on their success? we have one of the top partners at andreessen horowitz coming up

to explain. ♪. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs.

every day of the week. centurylink® your link to what's next.

[ male announcer ] the mercedeis here.ummer event now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ but you better get here fast... [ daughter ] yay, daddy's here! here you go, honey. thank you. [ male announcer ] ...because a good thing like this... phew! [ male announcer ] ...won't last forever. see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. but hurry, offers end soon. share your summer moments in your mercedes-benz with us. david: time for a look at today's market drivers. stocks erasing earlier gains as blue-chips struggled to resume their recent run to record highs. energy, telecom and industrials led today's declines.

gold pushing higher for the fifth day in a row, settling at 1321.30 an ounce. the precious metal has now tallied a five-session gain of nearly 4%. consumer confidence hitting a six-year high in june. the surging stock prices and jobs growth lifted americans outlook. the conference board's consumer confidence index, rose to 85.2 this month, up from 82.2 in may. liz? liz: two in a row, david. we got two great pieces of data for the housing recovery in a row. but the question is, is it really back on track? may existing and new home sales numbers surging. while the numbers remain a little slower than last year's pace, the turn around is gaining traction. >> but are these numbers sustainable? how will the increasing of renters impact the housing market? joining us mbs highway founder and ceo and a good friend of the show and us personally, barry habib. barry, you heard what charles plosser said. what do you think about his

comments? >> i think he got it right. i think it is sustainable. it is growing at a reasonable pace. getting 15% couple years ago and last year 14%. that is going to be difficult to sustain. this year looks like come in between five and 6% appreciation the i think it is healthy. a lost inventory has been cleared out. this is where sometimes folks misconstrue the numbers. when we see some sales numbers have decreased a little bit, what they don't realize you have to read beneath the headlines. you have to find that reason they're decreasing distressed properties are dramatically reduced. like a rack put outside of the department store. the clearance sale is gone. if we look non-distressed properties those have been increasing amount of sales. numbers last two days were terrific. certainly 18.6%, you have to temper that a little bit because the previous month's numbers were revised slightly downward, so slightly lower bar. original number, from original

number, over 14%. great gain. liz: barry, is it a buyer's market or seller's market? >> i think it depends where you are in the country. if you're in parts of the country like colorado, texas, your home will be on the market for a very short period of time. new york, san francisco, other parts of california. >> boston. >> very short time on the market. so you would have to say it's a seller's market. there are other parts of the country where there is a little bit more of a opportunity for buyers as well. david: we teased this segment, sounds contrarian but that rents going up, could actually be good for home sales. how is that work? >> national association of realtors economist, he said, up 4% in the last few months. now, that is a bad thing when you think about it, if you're a renter. if you're making decision to purchase a home, it make as the decision to buy a home a little bit more attractive. even though we've seen prices go up a little bit. that rise in rents is something to worry about. in the first quarter, household formations, that means if you're

married or living to the, and you split up, now you need two houses instead of one or living with mom and dad, that is household formation. there were over 400,000 of those, but 79% decided to rent. david: 79%. that must be unusual? >> that is driving rents higher. but over long run that is healthy for homeownership. people have a lot of student loan debt. people are still a little worried. rates went up in the first quarter. there is a lot of reasons why we saw this disparity. however longer term it bodes for a healthier housing market long term. these people eventually will be looking at owning. >> how long before interest rates and mortgage rates start to go higher? will there be a moment where the fed starts to signal we're getting ready, maybe mid 2015 and you start to see mortgage rates? will they jump by a point or two or much more slower? >> there would have to be a pretty big catalyst to see that kind after jump. there is possibility interest rates may go down.

certainly if prices falter or go through correction a money is parked in bonds with lower interest rates for period of time. that is good time for people to jump in. especially qualifying is starting to lighten up for mortgages. david: how about refinancing, is it getting easier to refinance. >> it is definitely getting easier to refinance. if you looked at refinancing year ago and couldn't do it this is good time because home prices have gone up because you might be able to qualify based on loan to value. underwriting guidelines, interesting enough, lend remembers loosening up to bring in volume. refinancing are down 75%. they want to bring in more volume. they're being a little lax on guidelines. liz: qualifying, harder or easier? >> easier than it was last year. a lot harder than it was five years ago and about the same as it was 15 years ago. liz: okay. david: great stuff. liz: barry, thank you. david: thank you, barry. liz: mbs highway founder and ceo. david: now we've all seen the

godaddy commercials but could one of the world's biggest tech companies spoil the company's party as godaddy prepares for ipo? liz: hackers clear and present danger to companies everywhere. now one of the most famous names in venture capital is making a huge bet on a cybersecurity company you probably never heard of. we've got the partners and the companies, stay tuned. ♪

my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines.

tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

david: today was an exception but as we continue to hit new highs, some are concerned that the market is starting to look expensive. the forward price-to-earnings ratio for the s&p is at a 18% premium to the average during similar rate environments. so where could you turn for value? fold man saks has released a list of cheap stocks for an expensive market. here's a sampling. five consumer discretionary names made the list. ford, general motors, lowe's, whirlpool and gamestop. a number of material companies made the list as well including dow chemical, freeport-mcmoran and nucorp. others include, aetna, stanley black & decker and corning and principle financial. we'll put that up on our facebook page if you missed it. liz? liz: you know the name andreessen horowitz, right? this is a company behind the names like facebook, pinterest and groupon. they gave the money. the companies grew and became,

well, you know the story. now andreessen horowitz is making a 90 million-dollar bet on security systems management company, only seven years old and called tanium. this is the firm's second largest investment ever. what does tanium do why is andreessen horowitz a big believer in the company? we bring in the recent board partner and tanium board member. steven, we're fascinated you're here to talk about it. you're a guy who picks these things very carefully. why tanium? talk about what they do. >> tanium is unbelievably cool product, what they have done, what these amazing founders have done, they found out a way to manage and secure networks of hundred of thousands of computers and data centers, scattered all around the world on your desktop and mobile and managed to find a way to instantly secure and manage them. so you can find out what is going on all over your network, just with a few clicks and answer anything you need to know

instantly. liz: this sounds like a product i.t. professionals would absolutely love, right? >> they spend their days trying to figure out what is going on all over their network. the state of the art today, it takes like days or a week to really understand some very basic things about your network. how many computers there are, where they are, what they're doing to the network and with tanium, you can find that out instantly. easy as using web search. liz: how does it stand apart, from, a, traditional cybersecurity companies or or, b, a newer names coming out getting a lot of popularity? >> tanium is unique because it helps both manage your network and deploy patches, fixes and updates and lets's instantly know what is going on in your network. state-of-the-art, other kinds ever too, even new generation tools, they're about blocking things as they come into your network. reality is the bad guys today are much shorter and they're not just going for brute force trying to break into your network. they're using steps and series of steps that are really much

more difficult to discover and tanium les you do that. liz: tanium is one that many different companies have purchased at least their services and are using. who are your customers? describe them. >> sure. well, right now over half of the fortune 100 around the world are using tanium and it is deployed in onehundreds of thousands of what we call end points and computers and data centers at each one of those kinds of companies. there are millions of machines monitored by tanium today. liz: could tanium have helped yo? we had the ceo of yo on. they got hacked. look, it is an app. it is an app that sends out two letter, hey, yo. marc andreessen certainly likes it and spoke postively bit but it got hacked by a sophomore in high school. he hired that guy. we had them both on fox business in the last hour but what would tanium have done? >> tanium helps any company that runs a data center or has

network machines within their organization. helps any of them secure to understand what is goinggoing on in the network. i don't know details now i don't ye was hacked, if they ran a number of computers, taney women would have been a big help. >> guys get into these things to eventually make more money. you put in 90 million here. just 10 million less than your biggest investment ever, gift hub. a code sharing site. we interviewed those guys too that is fascinating. what indicated you to you will get a big payoff in either ipo or purchase of this company? >> at andreessen horowitz we're always most interested in the founders of a company and what they really bring to the terrible and the founders of tanium are incredible. they're actually a father and son team that created one of the industry leading solutions in this space back in the late '90s t was acquired by ibm and became a cornerstone of today's

ibm management. but they took a step back after selling the company to ibm. they asked themselves, how can we make a product that is 10,000 times faster? so they spent a couple of years engineering this amazing solution. when we met them, it was very clear they had a magical answer to this modern age problem. liz: you guys have the magical money to help these companies grow and flourish. great to talk to you, steven. thanks so much. >> thank you. liz: he will come out for "3 days in the valley" and you and eveners are going to come on with us. it will be great. >> excellent. excellent. liz: thank you. david: the great thing about that guy, he not only invests in in these companies, he knows how it works and can create them himself. amazing character. google meanwhile would rain on the parade of one of the world's biggest domain registration companies as it gets ready for an ipo. details straight ahead. liz: wall street, yes, it gets a bad rap, some of it deserved. but last night wait until you

see the good in wall street as a financial titan and his wife get a huge thank you for helping our wounded vets and it comes with a royal surprise. stay tuned. ♪ (trader vo) i search.

i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours.

moving into domain services to help companies find and buy the most appropriate website suffixes. liz: google's move to impact a company with big ipo ambitions. which one would be that, jo ling? >> they're creeping on their territory two weeks after godaddy files to go public and tanking competitors. first let me tell you how it works. google domains will handle registrations and partners and partner with four different companies to build the web space. squared space, wix, shopify and wobbly. they will attract beta users. no additional costs for private registration, domain forwarding and branded emails and what they're talking about secure and reliable internet infrastructure. google is offering full phone and email customer service line. google domains is only available to certain smallers businesses. no date yet on when it will be actually available to the public. but, take a look at the

competitors. we're watching web.com. shares tanked 20% on the news. and to go back to godaddy, it is going public to pay off some of its debts, right? as of march 31st, godaddy had nearly 12 million customers around the world. revenue numbers are up 22% to 320 million according to their sec filing. but if google full i invests in this, they will have the upper hand in a complete way. they have total control of search results on google search. we're watching google. it was down fractionally. guys? david: jo, love those commercials. you had a special night last night. liz: we did, david. one of the top power couples on wall street got a big surprise last night as they were being honored for their work and generosity toward our wounded vets. last night in lower manhattan, hundreds of traders, firefighters and hero vets gathered to help the charities i work for, building homes for heroes. to honor cantor fitzgerald

chairman and ceo and president howard lutnick and his wife, allison for helping build custom, mortgage-free homes for our most severely disabled vets. there is howard. i was honored to mc the event which raises hundred of thousands of dollars to build homes for double, quadruple and triple amputees returning from wars in iraq and afghanistan. here is allison and howard. >> building homes for heroes takes care of those guys. it was extraordinary watching video of these guys watching into the houses. it was extraordinary. >> to have an organization like building homes for heroes and say we'll build awe home and you will be able to live in that home and raise your family in that home and we'll customize it and suit your needs so you can get around and live a good life. it is an incredible thing and i'm really honored to be a part of it. david: liz: in a very emotional moment. a huge surprise of the night came we announced that that man right there, corporal, army corporal jesse murphy and his

family will soon get a custom home of their own. joining in on the big surprise, the duchess of york, sara ferguson walked in. she came to surprise her long-time friends, the lutnicks. >> listening to a man who lost his arm and his two legs and he said it was actually the british that rescued him that moment. he said i just got to thank you. i can't believe you're here tonight. i want to thank the british for doing that. we were in the province and he -- helmand province, and i was just so relieved. i think i got british blood in me said. what does that tell you? you build a home for him. he is so humble. and he is also got humor. so can we never complain about anything? liz: she is so right. let's all stop complaining. more than 1500 double and triple amputees returned from the war. there is joel. we love him. we built a home for him. we mope hope you find it in your

heart, building homes for heroes a custom home. www.building homes for heroes.org. great night. david: testimonies are just extraordinary, just absolutely extraordinary. liz: let's move on. is finding a parking spot a problem? one airport has a high-tech solution targeting busy travelers. we've got details next. david: also forget checking out books at the library. drones may soon be able to rent a college campus near you. we have that story when we come off the desk. i ys say be thman with the plan

but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair

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. liz: let's go off the desk. sick of airport parking? dusseldorf airport. meet a special valet. a robot. they leave the vehicles in a designated area where yes, you see it. the robot picks it up. the robot's name is ray. delivers it to one of the lots and 249 parking lots.

the forklift like machine can carry a standard car for $39 a dare. the service targets business travelers but open to anyone in dusseldorf. david: very cool. also "off the desk," you want to own a drone for a day? if you're a university of south florida student. they hope to lend out drones when the school's renovated library opens next fall. this is digital media common. they're working on high-end technology products would rent them after a training session to help capture aerial footage of projects. however, it is possible the faa may shut down the program before it gets the chance to launch. all right, number one thing to watch tomorrow will be the final reading of first quarter gdp. economists expecting the latest data to show the u.s. economy contracted by 1.7%. the previous estimate was for a contraction of 1%. wow. liz: that will end it for us.

"the willis report" is next. hi, gerri. oil prices dipped down slightly in the u.s. does that mean relief for the pump for consumers? gerri: unfortunately not. we'll tell you why gas prices may hit a six-year high over the july 4th weekend. thanks for that. coming up today on the show. congress finally does something good for consumers. more freedom for you and your smartphone. also problems at the va go well beyond long wait lists. a new report says, chronic mismanagement cost 1000 vets their lives. after a string of accidents recently, how safe are small private planes? we'll investigate. "the willis report" where consumers are our business, starts right now. gerri: we begin tonight with the escalating crisis in iraq. extreme sunni militants sweeping the country, pressuring your bottom line here at home. up to 300 special forces from the u.s. will be deployed in iraq where