liz: everybody wants to watch it on tv. broadcasters are higher today. [closing bell ringing] >> sinclair up 17% this month because of aereo ruling. liz: good for old school media. 9 bells ring on wall street. as we head toward the second half of the year. s&p slightly lower. the nasdaq and russell made a go of it, closing slightly higher. russell up 50% over the last two years. "after the bell" starts right now. liz: with that start we break down today's action. yu-dee chang, ace investment strategist, chief trader with the three biggest risks towards the market. you have to listen because this guy is usually very bullish.

michael musesy yo. with names you should add to your portfolio that he loves. lincoln ellis, green square capital managing director in the pits of the cme lincoln, it is ridiculous to say, does today give us any indication how the second half will go? see any portending of any trend? >> probably not. given this week, shortened week is absolutely packed with a bunch of macroeconomic data especially jobs number comes out on thursday before the long holiday. people are positioning themselves to digest a whole series of data. ism manufacturing and non-manufacturing. pmi overnight on global basis. three days worth of job numbers. that will give us a backdrop on which we got some mixed durable goods numbers. really a tepid sense of what the economy's actually capable of. david: yu-dee, i went back into fact teva, i was curious what you said about the economy going into first quarter. in december of 2013, you

actually did warn, you were bullish on the market but warned about economic growth but did see up 3%, or almost 3% decline in the growth. >> absolutely not. i saw growth would be 1% up, not 3% decline. however going forward people are get being bullish again. david: excuse me for interrupting. how much are we going to have to pounce back just to get to normal? >> yeah. a lot. that is the problem. i think that is one of the unknowns risks that we have in the so-called economy. right now most people are pretty optimistic saying that, hey, first quarter, due to weather, due to all other factors, okay we're going to dismiss that. second quarter should pick up with maybe 3%. but if somehow we have these unknown risks then it is going to be really a shocker to the stock market. liz: a shocker to the stock market. michael what do you do between then and now? do you remain frozen or are there picks that we should add to our portfolio that we should

add at that time? >> you should add stocks to your portfolio particularly if you've heavy on cash. we think the market will continue to grind higher. we've been in this slow and low theme for a few years where we think that economic activity is going to continue to be slow growth and low interest rates. in that environment when you're looking at relative value between stocks and bond, we prefer a company that is paying us a 3% dividend yield that is growing year-over-year than a 2 1/2% 10-year treasury. david: lincoln, let's face it. one thing facing everybody is the fact that part of our economic environment is unreal. i mean these interest rates are not real interest rates. they are artificially low. they have been artificially low now for about three or four years. that's creating aberration. one is shadow banking community. i know the attorney general of new york is stepping in, trying to monitor that a little more closely. the.

why is it growing so much and what effect will it have on the overall market? >> when you shut off regular activities of the banking system more largely and you have forced lending activities, particularly into middle and small companies out into the private markets, you will have some distortions or opportunities to mike great out of the normal channels. would i like to point out it is interesting to see while we're in this twilight zone of stocks continuing to grind higher and rates artificially low that, the defensive part of all of the major indices have continued to perform really well. utilities on this last day of the quarter, one of the best performers. liz: yu-dee and michael, you have both picked energy names, whether they're energy services or integrated oils for the picks today and think that is interesting right behind utilities are energy and services. yu-dee you like apache. michael, you like conocophillips. do you stay with apache, what worked in the first half?

does it continue to work in the second half? >> not necessarily all names you about in the case of energy names like apache i think it does. i expect higher energy prices. i'm looking at companies such as a pooch chee have excellent profit margins compared to its peers. with apache a special reason as well. their recent asset sales have been a little underestimated by market participants. that is yes like apache. liz: why do you like conocophillips, michael? >> conoco two years ago spun off phillips from the refining business. e and t play. 3 1/4% dividend almost. that dividend is twice what it was five years ago with the combined company. strong balance sheet, low debt to capital. while they're figuring out revenues to grow they're continuing to return capital to shareholders. we like the cash flow. reinvesting in the business, buying back stock or paying

dividends and raising dividends over time and conoco certainly is doing that. david: yu-dee, we were just talking about banking and finance and we haven't talked a lot about consumer credit t got totally under control. got out of control in 2007-2008. there is room to grow in consumer credit. there is a company, capital one which is price primed for that movement, right? >> absolutely it has been doing well and i think it will continue to do well. capital one is leader in its own sector which is consumer credit slash credit cards. they're recently moving into small business and construction loan arena. another point, people keep talking about the market going higher, but if you look at it the market as a whole is higher. s&p 500 stocks, 13. that is up 28% are either flat or down for the year. so we are in a correction consolidation right now. david: a correction consolidation.

on the other hand you look at the rise in the market compared to what has happened in the economy and people say there's a disconnect, yu-dee? >> absolutely true. i think friday's employment report is pretty important. we want to see -- liz: thursday. comes out thursday. >> i'm sorry, you're absolutely correct, thursday. traders are looking at economic data as glass half-full, right? so they're saying lesser robust data, lesser aggressive fed, that is good. we need to see stronger economy to support continued gains in the stock market. that is why your question, david is absolutely right. eventually we have to see a robust economy for the market to continue right. liz: we'll not hold our breath. it is not happening now. lincoln, as we finish out, does china have what we don't? china certainly had a soft landing i think that is fair to say. where do you see that? will it be driver of our growth? will their consumers utilize or buy up what we make at some point? >> right. you have to look at the global growth engines in general have been broken. and if you look at policies

flexibility, obviously china has a lot of policy flexibility, probably first above and beyond what the ecb has done in terms of rerouteing and reorganizing the financial sector in order to engineer that soft landing. it is our demand that is actually trouble for china. we have not yet gotten to a place in gdp growth, it really reflects that, middle class and lower middle class americans or prodly middle class folks in the broader economy have gotten to consumptive level that would drive gdp growth in china and reaccelerate and respark emerging market growth to the levels we had seen, artificially somewhat in the early 2000s. liz: none of us guys mentioned twitter. there is some news on twitter we should get to right now because it is moving the stock slightly after-hours. twitter has made an acquisition. twitter is acquiring mobile ad start up. it is called tap commerce. what it does is specialized in

ad retargeting for all the app makers out there, david. the app makers are an engine unto themselves. cottage industry of billions an billions. david: not moving the market after-hours. the bid is down from a tick where it closed from the day. we'll see what happens to the stock are tomorrow. liz: jo ling kent is working on the story. she will up more to tell us about the tap acquisition. david: sound like the plot of a science fiction movie. facebook is facing a lot of global outrage for conducting a massive psychological experiment on behalf of hundreds of thousand of its users. will facebook weather the storm? we find out what investors think about it. liz: forget the user what about the investors? power surge, the utility sector as we mentioned up 16% so far this year, easily beating the s&p but not all utility companies are created equal. find out which once you the

investor should bet upon amid all the economic uncertainty. david: okay. so a 16% increase in utilities. this thing, as we said with yu-dee, it is through the roof. that takes us to today's twitter question. do you believe that utilities have topped out? 16% so far this year. or is there still room to grow? tweet us @fbnatb. your answers later in the hour. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time.

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liz: gamers, look at this one. king digital one of the biggest gainers, shares surged amid a tech short squeeze. david: nicole petallides on floor of new york stock exchange. what is happening there, nicole? >> you have to go through this one a bit cautiously. we know that this was $22.05 ipo. it was 20.55. it was as low as 15 bucks. what is interesting about the recent run in king digital, it is attributed in part to a short squeeze. basically a lot of people are shorting the stock, believing this stock would go to the downside and had been rising, over 2 1/2 million in march. by may it was nine half million. june, it was shorted up to

10.5 million. a lot of people are worried about the fact that "candy crush" is real big game and real big revenue generator for king digital entertainment. don't forget they have bubble witch saga 2. there are high hopes. you saw a tech squeeze and saw the stock move up 15%. getting closer to at least its ipo price. back to you. liz, nick, thanks. david: s&p futures are closing in about 40 seconds. go back to lincoln ellis in the pits of cme. how is it closing out, lincoln? >> positioning up for the employment report at the end of the week. tomorrow janet yellen speaks and we have mpmis overnight which should give us a sense how the global economy is doing as u.s. continues to struggle off the first two quarters. traders behind me positioning for the rest of the week. david: thanks a lot, lincoln. >> you bet. liz: look out utilities. the group is the s&p's best-performing sector in the second quarter and if i said that 12 times today, it has done

really well. it is up nearly 16.5% year-to-date, far exceeding the gain of s&p 500 which is 9% or 6% for the s&p? should you jump in or is the ground now saturated, overvalued? joining us now, greg gordon, isi senior managing director and head of isi's power and utilities research group. as we start to develop four months, did you start to think of all the sectors utilities, the safe ones, this one will do well? >> when we came into the year, i think most investors and emotional experts on the group, including me thought interest rates were going higher and vast majority of our stocks in our universe are high dividend payers and generally they're very highly correlated to the bond market. we thought interest rates going higher and fully priced to bond market, no, we didn't think rates would go down. but they went down when everyone

thought they would go up. everybody is getting into them as their dividends become more attractive. at the same time there are stocks in the group highly levered to changes in power prices. they're deregulated utilities. after the solar, polar vortex, sorry, power prices went straight up. their profit margins outlooks improved do mat i cannily. that outperformed the group year-to-date. liz: if you didn't understand that, greg is talking about how there are regulated or deregulated names. you say go for the deregulated names. give a couple of them to our viewers, tank about why you like them. what their specific aim and goal are. >> rg energy, excelon and ppl corp. they all own power plants in parts of the country where power generation has been deregulated. they don't get a fixed price. liz: not those two he just named but other ones, dynegy, other list if we get to that. >> we think they look cheap relative to the forward outlook for cash flows are, given

improvement in the market since the polar vortex. we think further improvement in the markets make them look cheaper into the end of the year. liz: they give good dividends? talk about the dividend plays that they offer? >> dine any -- dynegy, nrbg are not cyclical plays. liz: people wait to be paid. >> if you look at both sides of barbell, ppl is the choice. ppl has 4% dividend yield and has a big chunk of their business exposed to those power markets. dividend play up withside to power markets pp almost is the choice. liz: just a shift towards natural gas and infrastructure plays. is there opportunity to stash money there and that may surge over the second half? >> yeah. there is little subthemes in the utilities. there are companies traditionally electric power companies that are aggressive i expanding into gas infrastructure. two names we're recommending with tremendous growth are sempra energy and dominion

resources, other d, dominion resources. they, dominion is in utica and marcellus shale place and building all the infrastructure to get gas to market. tremendous growth there they will launch mlp to take separate entity next several months. sempra got approval from the federal government, from ferc, to build a large export facility to export gas to asia. liz: what happens when interest rates do rise? we don't know when, the fed said we'll keep them low for the foreseeable future. yet you know they are slicing back the quantitative easing, the so-called large-scale asset purchases that pumped up the market? it is inevitable that interest rates will tighten up at some point. what happens to those names when this happens? >> the traditional regulated group, con-ed, southern company, hawaiian electric. liz: you want to stay away from those? >> they are fully priced to bond

market is. he have the downside risk when interest rates go up and people value dividends less over course of next year. we think if interest rates go up and you're looking at 10-year with a 3, to 3 1/2% handle on in it in a year's time, those stocks could be 5% lower today. even though they offer 4% yields and look compelling you could lose money and wind up not making anything if dividend yield in a rare if interest rates rise. liz: avoid the regulated ones. go for the can deregulated. we'll put all of greg's picks up on facebook.com/afterthebell. thank you so much. >> you're welcome. liz: greg gordon from isi. david: you may have noticed breaking news headlines from bnp paribas, the french bank. they pleaded guilty to two felony counts. we're seeing a lot of action from the u.s. justice department and other federal and state agencies considering what they have done. two parts of conspiracy that they have pleaded guilty to and they are paying an $8.8 billions

fine. now there is a press conference by the department of justice at 5:00 p.m. in about 45 minutes, 40 minutes from now. that may or may not have to do with this particular action but we'll be monitoring that for you coming up. again, two counts, two felony counts pleaded guilty to by bnp paribas. $8.8 billion. meanwhile everybody is talking about the jobs week. we get the june numbers out on thursday. of course not friday because of the july 4th holiday. one. nation's most respected economists has come out with a blistering criticism of government policy towards the unemployed which he thinks is actually making matters worse. we talk to that economist to find out how to fix our broken labor market. liz: social media war heating up. twitter announcing a new acquisition in the past few minutes as it tries to boost its advertising power. jo ling kent rushing down to bring us details on twitter's new buy as soon as we come back.

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today is outgoing ford ceo alan mulally's final day on the job. mulally took the helm at ford in 2006 and he is being succeeded by chief operating officer mark fields. i got distracted with us at the detroit auto show. world cup set a world record for most facebook interactions. more than one billion likes and comments and related posts about the soccer tournament, made the tournament number one activity generating event ever. blackstone reportedly making a plans of launching a hedge fund to make a small number of big, bold steps. [buzzer] that is today's "speed read." david. david: we you talked about acquisitions, we had breaking news of twitter acquiring a new company. our own jo ling kent with more. liz: jo, tell us what this is all about and how it helps twitter? >> the company called tapcom acquired by twitter, a quarter of a million dollars. this was a small company founded

in 2012 this is retargeting service that reaches 50,000 apps. in layman's terms this company sells adds ads to prompt users to open apps they already have. twitter stock is not really reacting to this, what is interesting, liz and dave, this is acquisition in the advertising space very important to twitter. this comes after the acquisition of mopub and media. they're trying to drive revenue and engagement. back to you. >> thank you very much. jo ling. the man behind the 9/11 and bp settlements, ken feinberg, unveiling details how he will handle his big new assignment at gm. it is a sensitive one, paying compensation to victims of crashes involving cars with faulty ignition switches. fox business's new cavuto had a chance to speak to ken feinberg earlier today the. wait until you hear what feinberg had to say about the plan only with neil. david: puts out fires everywhere

he goes. >> unemployment rate continues to fall the labor participation rate that remains at its lowest level in 35 years. why is the labor market contracted so much and continue to do so? next we talk to the author of the new book, redistribution recession. why current policies are making things worse. ♪

liz: time for a look at today's market drivers. it turned out to be a mixed day on wall street with the nasdaq the only major index gains. utilities today, the top performers just like it has been over time, over the last six months. the sector finished the first half of the year up 16.5%. the number of contracts to purchase previously owned u.s. homes jumped in may by the most in more than four years. it is called the pending home sales index. it climbed 6.1% in may after revived .5 of a increase in april. gold tallies the biggest monthly gain since february. the precious metal rose 6.1% for the month. climbed 3% during the second quarter. david? david: the june jobs report coming out on thursday this week. while there has been slow improvement, the overall unemployment number there are

only some new jobs that can be created when the economy is flat. it post ad 2.9% loss in the first quarter of this year. well our next guest says that the current economic doldrums are the unintended consequences of government programs meant to help those hurt most by the recession. he has come out with a new book entitled, the redistribution recession. university of chicago economics professor casey mulligan, by the way last week received the manhattan institute hayak prize. professor, good to have you. exactly how has redistribution policies made things worse? >> well, generally the, you can describe the policies as helping out, giving assistance to low-income people, unemployed people, people after they were let go from their job. and anytime you subsidize something you get more of it. so by subsidizing say layoffs, you get more people laid off from the job. subsidizing unemployment, you

have people being unemployed longer. david: we subsidize ad lost things. we used to have under the reform of welfare back in the mid '90s, clinton and republican congress, we required people to work more than they had been before they received well favor. have we gotten rid of those rules now? >> yes. those, especially in the, you may remember the stimulus law, recovery act they called it, that gave food stamp and some other programs time off from those requirements that gingrich and clinton put in. and then states individually have applied to the federal government to continue ignoring the work rules and they have been given permission to do that. david: okay. by the way, we have to take a short break, professor. if you could stay with us. i believe the president is about to speak. the new head of the veterans administration. let's listen in. >> thank you for welcoming us here today. i'm pleased to be joined by our vice president, joe biden, from

leaders across this department and our many partners, particularly representatives from our incredible veterans and military family service organizations. i want to begin by making a basic point. those of you who serve here at the va do absolutely vital work every single day for our veterans and their families. i know how deeply you care about our veterans. many of you are veterans yourselves. veterans serving veterans. you helped them transition to civilian life, go to college, buy their first home, start a new business. you have some of the best doctors and nurses in the country and provide some of the best specialized health care. and our national cemeteries you lay our veterans to rest with dignity and compassion. i know that millions of veterans are profoundly grateful for the

good work that you do. i am grateful as well. but, we're here today because of problems that have outraged us all. that includes the inexcusable conduct that we've seen at too many va health care facilities. so i'm here for two reasons. to update you and the american people on how we're fixing these problems and to announce my choice for the next secretary of veterans affairs to help move us forward. the first thing everyone should know is that those responsible for manipulating or falsifying records at the va and those who tolerated it are being held accountable. some officials have already been relieved of their duties. investigations are continue being and as i've said where we find misconduct it will be punished. i made it clear we work with the va for all investigations into wrongdoing.

second, we reached out to 135,000 veterans so far to get them off the wait lists and into clinics. we added more staff, sent mobile medical units and we're making it easier for veterans to use hospitals and clinics outside of the va. we'll keep at it until everyone of our veterans is off a wait list and they receive the care they have earned. third, we're moving ahead with urgent reforms at the veterans health administration. that 14-day scheduling goal has been removed from employee valuations. there is absolutely no incentive to engage in inappropriate behavior. providing highest quality care, when our veterans need it, that is your incentive. there will be new measures for patient satisfaction, from the veterans perspective. and today's outdated va scheduling system is going to be overhauled with the latest technology.

more broadly the review that rob nabors, conducted, found significant and chronic systemic failures including too little responsiveness, transparency and accountability and that is totally unacceptable. it recommends that the vha be restructured and reformed with stronger management, leadership, and oversight as well as more doctors and staff. and i totally agree. and we're going to make that happen. i've asked rob to remain at the va for now to help move these reforms forward. hiring of new vwa leaders has been frozen, vha leaders has been frozen to make sure the new team we're putting in place is the right one. based on the recommendations of our panel of experts i will nominate the next leader of vha i want to get the very less leader on the job and get going with these reforms and we'll work with congress to make sure

have. ha has more doctors and resources it needs to deliver the care our veterans deserve. fourth, we're instituting a new culture of accountability. the very idea that senior vha executives would receive bonus this is year, rightly appalled many americans and those bonuses have already been canceled. a review is now underway to make sure when employees speak up about a problem action is taken, not to intimidate or retaliate against the employee but to fix the problem. everyone will be held accountable by doing better. congress can help giving secretary more authority by removing senior leaders. finally we're rebuilding the leadership team here at the va i want to thank sloan and others here who stepped up to serve in new roles during this critical time. and i have to say, sloan, you have been an outstanding driving force behind the reforms now underway. we'll be relying on your steady

hand during this period of transition and your continued service as deputy secretary. and i know all of you with have an outstanding partner and secretary in my choice to lead the va going forward. one of our nation's most accomplished business leaders and managers, robert mcdonald. now, i've gotten to know bob a bit over the years. he has come to the white house to share his perspectives as we worked through complicated issues. he is no-nonsense and he is pragmatic and he does not seek the limelight. he repeats the japanese saying, he worked and lived in japan for six years while at proctor & gamble. the saying goes, he who climbs mount fuji is a wise man. he who climbs it twice is a fool now bob actually climbed mount fuji once. bob is a wise man.

and if you need anymore evidence that he is wise, you need to meet dianne and his family who are here today because they are a wonderful family and obviously they have served along with him in the past. for bob and his family the mission of caring for our veterans is deeply personal. his father served in the army air corp. after world war two. deanne's father was a p.o.w. her uncle was exposed to agent orange in vietnam and still receives treatment from the va. so this is not an abstract mission for them. bob is a veteran himself. he graduated from west point where he and sloan were classmates. so this is a bit after reunion. bob served as an army ranger in the 82nd airborne division. back home in cincinnati he and deanne have teamed up with the uso to honor our veterans.

but, especially makes bob the right choice to lead the va right now is his three decades of experience in bidding and managing one of the world's most recognized companies, proctor & gamble. the va is not a business but it is one of our largest departments. some 340,000 employees working in more than 1700 facilities, nearly nine million veterans. the workload at the vha alone is enormous. some 85 million appointments a year and some 25 million consultations. as ceo of proctor & gamble bob oversaw more than 120,000 employees with operations around the world, selling products in more than 180 countries, in more than 2 million stores, reaching some five billion customers. in other words, he knows the key to any successful enterprise is staying focused on the people you're trying to serve. he is remound for his operational excellence.

he started his career out in the field and worked his way up serving at virtually every level of proctor & gamble. he understands the grand plans are not enough. what matters is the operations that you put in place. and getting the job done. bob is an expert in making organizations better. in his career he has taken over struggling business units. knows how to roll up his sleeves and gets to work. putting an end to what doesn't work, adopting best practices that do, restructuring, introducing innovations, making operations more efficient and effective. in short, he is about delivering better results. he also knows the importance of bidding what he calls a high performance team. putting right people in the right jobs. rewarding them when they do well and holding them accountable when they do not. and finally, bob's known for his integrity. he is still guided by that cadet prayer from west point. choose the harder right instead

of easier wrong. he served our country in uniform. he is now prepared to answer the call once more. so let me state the obvious. this is not going to be an easy assignment. bob knows that, but like any army airborne ranger, bob has a reputation for being ready, jumping into tough situations, taking charge and going all the way. so, bob on behalf of all of us, to you, to deanne and your family, thank you for your readiness to serve again. my bottom line is this we have to change the way va does business. over the past five years this agency has done some excellent work in dealing with a whole range of real difficult challenges. and i don't want people to forget that. liz: president obama, announcing a clear-eyed, tough as nails leader to now head the va hospital and that is robert mcdonald who for many years ran proctor & gamble, one of the

biggest corporations in the world, let alone america. david: was an army ranger as well. many members of his family are veterans. the president admitting that in fact veterans affairs had a corrosive culture that had to be changed. liz: we will be back after the break. what do cfos think about the second half? we'll find out. brand new study right here on fox business.

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liz: they hold the purse strings at corporations. so you need to listen to chief

financial officers. and guess what? they're largely optimistic, specifically about the north american economy but much more bearish on both europe and china. this according to deloitte's newest cfo survey. how will worries about the global economy impact cfos growth projections for second quarter? david: joining us sandy cockrell, deloitte senior program managing national partner. sandy, last time you were here, we were coming out of a contraction, 3% contraction. >> yes. david: most economists didn't see it. most bigwigging didn't see it. the american people felt like it. did the cfos know they were in contraction at that time in the first quarter? >> the first quarter they were optimistic than they were right now. it is kind of a mixed bag. you're right, they feel good about the north american china economy but china and europe are laggards. we think the chinese economy, only 24% would say it's good. david: let me get this straight.

you're saying they are more pessimistic now than they were last quarter when they were in the midst of the contraction? >> i would say they're very cautious today. basically five solid quarters of net optimism, cfos thinking about their next 12 months prospects for that company. that is very good, that is very good data. when you look at sales growth, earnings growth, cap-ex spend and employment growth it is pretty muted. although it came up, it is still below the survey averages. june employment, hiring. they have mo balance sheets. they're actually spending a lot of money with mergers and acquisitions. globally 1 plus trillion dollars more than the entire year last year. yet, how is the hiring picture looking? any better? >> it is interesting, over the last three or four years, cfos worked with their companies to achieve all kinds of efficiencies. they're not willing to add to payrolls until they are sure they see more of a hockey stick in the economy. there is no clarity when the economy will really turn around.

>> the manufacturing sector has been taking it hard. they're stripped down to bear basics. they need top-line growth in order to succeed. >> correct. of all sectors positive about their inept optimism, -- net optimism, manufacturing was the most pessimistic for this quarter. if you look at revenue growth last three or four quarters, flat-lined at 5%. they just don't see any growth in their business and they're starting to get squeezed on the earnings line. that is very tough. liz: the report is signals. deloitte came out over it, polling how many cfos? >> over 100. liz: to get what is going on in their minds and purse strings. david: thank you. sandy. she you in three months. new kind ever venture fund run by students for students is helping launch businesses and creating startup success. we have that story coming up next. 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: a venture firm called dorm room fun is helping launch successful businesses across the company and it is run entirely by students for students. the fund helps student entrepreneurs launch their businesses by providing initial financing business and legal resource too. liz: we sent fox news's laura engle to get more on the story. hi, laura. >> hi, guys.

as many people know investment firms are always looking for the next big idea but for those with the ideas finding funds is not always easy especially if you're still in school and that is where the dorm room fund comes in. >> certainly college campuses all over the country are fantastic aggregators of talent but often times that talent can't express itself in sort of the entrepreneurial landscape because they have to make this really difficult choice of dropping out or staying in school. >> launched with the help of investment firm first round capital, teams of student investors were given two million dollars nationwide and power to identify entrepreneurial talent among their peers. one success story is of that a and b pepper sauce which took after a $20,000 investment last year. >> right now available in 200 stores across the country. i don't think we would be there without dorm room, support, cheering us on, introducing us to people with a lot of functional expertise. >> many successful businesses

have been hatched by college students as we know, google, microsoft, facebook to name a few. so far the dorm room fund invested in 50 companies hoping to find the next success story. they take applications on line and do their own scouting on campus. as students help businesses go the investors in first round get something back, returns on the company and a relationship with the student founders in hopes of working with them again in the future. guys, back to you. david: laura, thank you so much. liz: pepper sauce. get some of that hah thank you, laura. >> thank you. liz: u.s. soccer fans pump up the volume maid of team usa make-or-break world cup game against belgium but who will win the critical matchup. one software giant thinks it already has the answer thanks to its unique algorithms. find out which side it is picking next. red and puffy and itchy and burning. i'd lift my arm and the pain back here was excruciating.

i couldn't lift my arms to drum or to dance. when i was drumming and moving my rib cage and my arms like this it hurt across here. when i went to the doctor and said what's happening to me his first question was "did you have chickenpox?" i didn't even really know what shingles was. i thought it was something that, you know, old people got. i didn't want to have clothes on. i didn't want to have clothes off. if someone asked me "let's go dancing" that would have been impossible. 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. liz: it is time to go "off the desk." microsoft may have uncovered the key to world cup glory.

microsoft's answer to siri called kuartana has been betting on winner world cup games and has the ability to pour over tournament data. guess what? the artificial intelligence system accurately called the winner for each of the past five dames games giving it 100 percent success rate. u.s. fans hope it is not foolproof as it predicts belgium will beat the u.s. tomorrow. we'll see. david: number two thing to watch, june auto sales, domestic vehicle sales expected to drop 300,000 month over month since the highest level of 2006 to 13 million. >> liz: the number one thing to watch tomorrow will be ism manufacturing data set to be released 10:00 a.m. eastern. economists expect a reading of 55-point six. up slightly from the previous reading of 55-point4. we remind you any reading above 50 indicates expansion which is a good thing. david: "the willis report" is

next. gm of course was big in the news today. we had ken feinberg's announcement revealing long-awaited compensation. they also had to halt trading during the day. gerri, you have two lawyers representing the crash victims and their families. be interesting to see if they accept what feinberg offers. gerri: that's right, dave and liz, thanks for that. the question is will victims take the settlement? two lawyers as you said representing crash victims and families. we also have ralph nader. also coming up on today's show, obamacare beaten back once again. this time by the supreme court. we'll take a look what today's religious freedom exemption means. also president obama nominates the former head of proctor & gamble to run the va. can the private sector fix this broken institution. the july 4th holiday is deadly heft times of year for bets. important information how to keep those family members safe. "the willis report," where consumers are our business starts right now.