you were a soccer fan, getting so riled up. it was fun to get everyone together. >> i never really to be honest with you really -- and never even thought i was a soccer fans alike can say that i am but i was interested in the game. >> of really big soccer fan -- tons of money. >> have a great day, see you later. charles payne in for stuart varney. it is all yours. lorie kane too late. charles: thanks a lot. i will take it from here. the dow is up 10 points. i am charles payne for stuart varney. your headlines for today, the market rally, getting closer and closer to dow 17,000. check your 401(k), your making money. now the policy, headlines from the latest poll, president obama the worst commander-in-chief since world war ii and mitt romney was a better choice. what is the president going to do about this? playing the blame game yet again

saying all republicans are doing -- and look at this. obama advisor valerie jarrett on her own desk. get ready, two hours of stuart varney starts right now. let's get right to. checkable board. let's check the big board. the s&p is in record territory. up fractionally but still in the green, that ten year yield back around and 2.6, right there a three basis points. jpmorgan chase ceo jamie dimon announced diagnosis of wrote cancer but the condition is quote a curable. those shares are fractionally off 1%. the rumor is they may take themselves private. there have been rumors for three years. netflix continues on a roll.

another new high. let's go to the stock exchange. nicole: look at netflix today. new highs, $475.87, down slightly lower after hitting that record high but worth noting that it really doesn't get to this level today because of a goldman of grade. goldman sachs upgraded netflix streaming internet and movies and the like to neutral. they also raised the price $590 from 380 easily so certainly needed a revisit on a price target. we are also taking a look at the one week charge, netflix as well and you today of 28% over the last year, it is up 113%. we continue to make a lot of deals with a lot of companies what they provide. charles: thanks a lot. some polls on the president this

morning, not looking good. 33% of voters a president obama is the worst president, and america would have been better off if mitt romney had won the 2012 presidential election. president obama doesn't seem to care. listen to what he said to his critics. >> middle-class families can't wait for republicans in congress to do stuff. so sue me. as long as they're doing nothing i won't apologize for trying to do something. charles: we have the wall street journal's veronica dageurre. would you make of the combative stance? >> a lot of facilities polls, he result all of the place, this poll lot of people are saying they are unsatisfied, it has been a grinding recovery,

friends out of work, maybe they are out of work, they are not seeing great -- wage growth. they are not happy about the run-up in the market because most are still out of the market. there is so much uncertainty on the glass plates. there is so much uncertainty on so many people plates. charles: the president response, though, does that seem curious at all to you? >> he just got smacked down. a previous instance. now he is saying keep suing me because i will keep doing it. the american people are not buying it. he goes head to head with george w. bush. obama beats bush on that particular count which is probably very, very

disappointing. >> we know that history is rewritten. what about the president's style? it really feels like his definition of compromise is my way or no way. the republicans will not pass. they won't let me do what i want to do. i have all the answers. >> i think people are looking to the past when they look at these polls. >> i am a conservative good bill clinton was much better at this. they are are difficult things that the presidency required. this president has shown absolutely no cross capacity to do that.

charles: he took a message from the american public and he moved over. he doubled down on his agenda. >> i think it shows how much the middle class is still very much struggling. it is causing some resentment. they are looking for help. >> it is ridiculous how much it is down. somehow, the president is implementing i have the ultimate solution. >> of course he conveniently omits instances. he is blocking them and instructing harry reid to block sanctions. the keystone pipeline. they are the job creator.

the president is blocking that. he elides those types of fax. charles: both sides of the aisle right now. we hear about the feud between obama and the clintons. what are they saying privately that maybe the public does not know? >> they are nervous. historically they have not gone particularly well. what is most concerning to them is the president's job approval rating. we have five different goals. 41% or lower. that is the biggest historical trend when you peg how the president's party does in the midterm. it does not look like he has the ability to improve his own

numbers. charles: all right. the market makes new highs. janet yellen talking about the risk of the financial stability. rich edson. what is she going to tell us? rich: she is defending a easy money policy. i do not see a need for monetary policy. she says sound regulation and capital requirements are the best defense. ask for its current state, i do see pockets of increase risk-taking across the financial system and in the broadening of these concerns. it could necessitate a more macro prudential approach. we do not see a threat from leverage lending.

she says higher interest rates would have slowed economic growth, directly harmed household wealth and would not have diverted. charles: thanks a lot. we appreciate it. back to the irs and lois lerner. a 2010 government conference. right now we have david france with us. he represents one in 40 tea party groups. what do you make of the latest revelation?

>> they have been openly targeting groups for a very, very long time. it is also reported, around the same time is that the irs has been sued in 2010. that lawsuit more than put them on notice. all of their e-mails were preserved. their e-mails were not lost until about 2011. still they went ahead and lost the e-mails. there should be legal ramifications for that. both in civil court and criminal court as the doj continues to hopefully, diligently continue to investigate. charles: are you waiting for the doj to make their next move? maybe some criminal accountability? i know you have lawsuits out.

it sounds like this is opening the door to even greater lawsuits. >> this is opening the door to a tremendous amount of lawsuits. the doj investigation is being led by a large presidential donor. we are not waiting on the doj to act. there will be a hearing on july july 11. i do not think any of the litigants on the civil side of this are waiting for the doj to do anything. charles: a peculiar disappearance of e-mails, could that be the smoking gun anyway? >> it is a matter of law. it can cause you to win a claim in court.

it is a smoking gun. now, if it was done and the evidence shows it was done intentionally, then we are talking criminal sanctions here. charles: good luck. please come back. keep us up to date. the american public wants to know what is going on. >> absolutely. any time. when you buy insurance to protect yourself or your business from a hacking attack, we have an insurance provider with us after the break. ♪ charles: knocking america out of the tournament. this is our world cup coverage. ♪

♪ charles: checking the big board. virtually unchanged. a big number from adp this morning. time now for your morning gold report. gold still hanging in there pretty good. maybe on a verge of a breakout.

oriole, not a lot of news out of the middle east. they may have been late to cloud computing, but never forget about ibm. take a look at this. a picture of herself with three figurines bowing down in worship. they are wearing suits right now. i have to ask you guys, what do you think? political hats -- >> i do not know what to think of this. i do not even know where you get something like that. it seems sacrilegious or something. >> she put it on her desk. you can get a gag gift. she has the presence here.

she is amused by the fact that people are bowing down to her. you can maybe laugh it off. you do not have to permanently keep it on your desk. charles: maybe she is saying hey, you said it here, a lot of people do not give her the credit that she deserves. it is amazing. the president takes a lot of his orders from her. one represents politics. i do not know. >> it could be donors. charles: we have business, politics and donors. >> i do not know. i would not be surprised if she decided to take this down. i think there is a lot of flack that she might be getting from it. charles: we talk a lot about

hacking your privacy. 75% since the target data breach that was back in december. robert morris joins us right now in studio. this is a new product. recently introduced. it is taking off because -- >> because of target and the industry. they absolutely need the coverage. charles: how does that work? you are not preventing the hacking attack. >> no. you have to notify your customers if you get hacked. you have to tell every customer what is going on. you have media coverage. you have to be able to control

the media and what is going on with that. you have penalties if you get hacked. charles: i am assuming this is mostly for businesses. you talk to a business. you lay it all out. any gray areas? >> companies are offering all kinds of different coverages. they are great coverages. they do not know what the full risk is. >> do you find it interesting that a lot of these companies are taking out this insurance? how about beefing up the front end? >> absolutely. that is included in the pricing. they want to know what protection you have in place. do you have inflation? is your front and covered the same way as your backend? can everybody --

charles: are you finding that a lot of them are saying we want you to get our back in case we are attacked? >> oh, i see it on both sides. a company that is well protected will get a better price. charles: can you give us an idea of the scope of the potential? can you give us a scope of how large of a problem this is? >> it is going on every day. i am seeing doctors offices, lawyer offices, all sorts of panies buying the coverage. charles: all right. robert morris. a brilliant idea. so far so good. new york state's highest court

striking down an anti-cyber bullying law. does the right to free speech trump the rights of victims. ♪ stuart! stuart!

stuart! stuart! ♪ check it out. this my account thing. we can tweet directly toa comcast expert for help. or we can select a time for them to call us back. the future, right? ♪

this doesn't do it for you? [ doorbell rings, dog barks ] oh, that's what blows your mind -- the advanced technology of a doorbell.. [ male announcer ] tweet an expert and schedule a callback from any device. introducing the xfinity my account app. that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. ♪ charles: a quick break at news for you. the warning has been canceled for the east coast of florida.

currently offshore florida. the last half of the week. six plagues great ed ventures. they open to the public on friday. she joins us live right now from six plagues. you are currently sitting there. something tells me you will not take it for a spin today. >> it is not because i am not a daredevil. the reason we cannot, or no one can go on the right today is because the new jersey state and spec there never showed up to approve the final step to get his ride going. there is still trouble viewing the ride. all these guys in the

background. they are just hanging around. six plagues says all testing by our engineers and the new steam has been completed. i do not know what to tell you. i can tell you about the ride. it goes 415 feet into the ride. it drops you at a speed of 90 miles an hour and 10 seconds. the reason it is so complex is this is the realist ride of all the realist rides. someone encased the other. that is the world. merging with the world tallest. you can just imagine that people want to try that. friday. fourth of july weekend.

charles: maybe you would have thought that they would have developed it all before you would approve it. i hope they open it today so you can get on it. thanks a lot. >> see you later. it is too broad and violates the constitutional law. it protects a knowing and all that speech. all rise. judge andrew napolitano is here. charles: it seems like it makes sense. >> the statue was so broad. the highest court. the highest state court in new york state. they said one of the reasons we have the first amendment is so that our unknowing speech is

protected. unknowing people with speech is part of the american experience. to suggest that young people cannot annoy others with speech violates their first amendment. the language was so broad. it could actually be read to punish a phone conversation as well as posing on the internet. it was graphic. it was horrific. it would make anybody sick. the language which was written to prevent this from happening would catch perfectly protect did political speech. aggressive political speech. the type of political speech that is traditional -- charles: how do we judge the needle that goes from unknowing speech into hate speech or the kind of speech that would invoke that. >> there is no right in america not to be annoyed.

i don't think president obama cares what i think. the whole purpose of the first amendment presumes that individuals will decide what to say and what to listen to. when you write a statute like this, it is criminal. the government decided which speech is acceptable. charles: what about sparking a ride it. you get everybody else in the school to hate someone. now you have the crowd. also all handing their animosity towards me. >> the supreme court with dan unanimous decision said it is absolutely protect it.

if i am in front of a mob, there is hillary clinton. the mob goes for her. i am liable. if somebody else stands up and says, what are you crazy? my speech is protected. >> what if the mob does not calm down. >> there must be time for more speech. >> there has to be a way to deal with it. i think parents, especially when it comes to kids, parents need to play a role as well. >> i agree with you 100%. part of the emphasis for this lot is the continuing rejection by parents of their parenteral role. government cannot deliver the mail.

how will they help parents raise their children? the parents can punish speech, but not the government. charles: amazon filing a lawsuit. do they have a case? more with the judge after the break. ♪ really... so our business can be on at&t's network for $175 dollars a month?

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charles: take a look at the dow. a big ipo today. it is a distribution solutions company. congratulations on the ipo. >> thank you, charles. charles: you guys are a relatively large company. >> we are. charles: listen, i know there has been a lot of ipos. are you a little worried about your debut? >> no. we anticipated that there would be anticipations. we are quite pleased. >> let's talk about the company

and the investor. will it be domestic, internationally driven? >> first of all, we generally follow general economic conditions. gdp type growth rates. we are leading businesses. north american distribution company. we have supply chain capabilities. significant capabilities around driving points. we are focused on three core segments. providing solutions to our customers. charles: congratulations once again. we have another case with judge andrew napolitano. this one is amazon.

amazon alleges that the new job but waits this clause. judge, are you okay? it sounds like they have a case to me. ordinarily, a person has the right to trade their knowledge and skills for cash. for income. four compensation. he agreed that he would not work for a competitor in the 18 month. when he also began his work at amazon, he agreed never, to reveal those trade secrets. people can work in google 18 months from now. they can work in some technical area very different from what he did and amazon.

he can never share, reveal or use what you learned at amazon. effectively, these contracts are nearly impossible to enforce. charles: we do not want you to use the expertise. i have no problem with this lawsuit. he pledged a commitment to amazon. he did it. they are suing him. i am very pleased to be a fox news contributor. i would expect that. it is personal. >> that part of the lawsuit is cut and dried. it is what is inside his brain and how it got there and how he is going to do it. they are worried about trades.

charles: trying to slow down the ability for the competitors to implement that knowledge. >> how do you business people resolve this? [laughter] charles: the ftc saying they overcharged. this thing is pretty interesting. a lot of customers out there. we have details for you afterld the break. ♪ something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪

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♪ charles: the business brief with a twist. we are going to do and ask pain. just got an e-mail on it. here is a good thing about the company. those are great areas. in the last report, it was up 18%. health information. 25%. management. that will help them. they do say knowledge workers are a huge demand. take a look at that chart. i will hold it.

twenty-three, maybe 25. we will be right back. ♪ we're moving our company to new york state. the numbers are impressive. 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.

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. ♪ charles: check out the shares of t-mobile. big troubles for the provider. taking legal action against the company. allowing third company parties. taking a cut of the profit. this is huge.

it has been going on since 2009. the company will be refunding customers. >> let's look at monsanto now. 126.95. there is a nice one-year chart. we are looking into buyback. $3 billion of stock. with that buyback, you are seeing the stock moving higher. charles: you know that i love monsanto. janet yellen is about to start the q&a session. let's listen in.

>> in order to address financial stability concerns. with that said, i do see pockets of increased risk taking throughout the financial system. and acceleration or broadening of these concerns. for example, corporate bond spreads is expect did volatility. suggesting some investors may under appreciate the potential for losses and volatility going forward. in addition, terms and conditions which provide credit to lower rated companies have eased significantly. reportedly as a result of reach for yield in the face of

persistently low interest rates. the federal reserve, the office of the control industry and the federal does encourage lending practices in early 23rd team. to date, we do not see the systemic threat. they do not suggest that nonfinancial borrowers in the aggregates are taking on debt. the liquidity positions should ensure resilient against potential losses due to their exposures. we are mindful of the possibility to credit. borrower losses could rise unexpectedly sharply.

it is important that we monitor or the degree to which the macro prudential steps we have taken have built sufficient resilience. we consider other tools including adjustments to the stance of monetary policy. in closing, the approach to promoting financial stability has changed dramatically in the wake of the global financial crisis. we have made considerable progress. these changes have had a significant effect on our monetary policy discussions. an important contributor to the progress made in the united states has been the lessons we learned from the experience gained by central banks and the

authorities all around the world. the imf plays an important role on this process as a forum for representatives from the world economies and as an institution charged with promoting financial and economic stability locally. i expect to both contribute to and learn from ongoing discussions on these issues. thank you very much. ♪ [applause] charles: as you can see, janet yellen sitting down now. christine lagarde is going to conduct a q&a session right now. are we going to listen into some of this?

>> i am offended of the currency situation. monetary policy and credential tools could be used in sequence, in parallel, different circumstances. i would like to maybe talk about this to say loyal. what would you say? would you say the tools are second fiddles? or would you say that depending on circumstances, that growth prudential tools become this. they have to deal with the issues as a first line of defense. >> i think my main thing here today is the macro prudential policy should be the main line of defense. i think the efforts we are

engaged in in the united states brought all countries. the efforts that we are taking to globally transform the resilience of the financial system, more capital, higher quality to capital, higher liquidity buffers, stronger and arrangements for central clearing of derivatives that reduce interconnectedness among systemically important financial institutions. strengthening of the architecture of the payments in clearing system. dealing with risks that we see in areas like tri- party repo. all of these efforts and

particularly focusing on the resilience for most systemically important firms. higher leverage ratios. i think of this as the core step that you need to take of the united states and locally to create a safer and founder financial system. if we are able to do that, if the system does experience shock, which it will be better able to deal with it. i also want to talk about the resolution planning. you know, as i mentioned, cyclical policies and sector specific policies. steps that can be used

particularly when we see problems developing in housing or a particular sector. these are really promising. when they can be effective. how we should use them. i hope this will be an area for the imf and us to actively research so we can better deploy those tools. i think importantly not taking monetary policy totally off the table. a measure to be used. i think we have to raise the funds in micro- prudential tools. there may be times where monetary policy does not need to be adjusted or deployed or leaning against the wind. it is not a first line of defense. it is something in the mix.

>> your first line of defense. do you think that this is likely, not now, but in a more calm time? would that help us get away from this? whether it is here or it is in the uk or into your area, we all face the issues. do you believe that the confidence of those tools are likely to move us into that direction? >> it is remarkable to see how many countries have been affected by this.

it is something that for most of my career would have seen, frankly, unimaginable. often, it has been the case that these episodes have occurred in the aftermath of a crisis that impacted the financial system. whether it is in japan or here in the united states. i think it will be helpful if we can strengthen the financial system. such huge shocks are less likely. it is the real possibility. for example, the work that we have done with the standard economics that we have used. looking at the shocks that have occurred. there is a real possibility. there remains a real possibility that we could continue by the zero lower band.

i think we have recently had instructions. the notion that for some period of time whether it is because of slower productivity growth or headwinds from the financial crisis, demographic trends that so-called equilibrium interest rates may be at a lower level than we have seen historically. that is one of the factors that i think will be important in determining how frequently the shock can push economies against the ban. if it is correct, equilibrium will raise the united states and globally may be lower going forward. i think we will have to worry about these episodes. of course, there are often other tools besides monetary policy.

sometimes monetary policy buries the brunt. i think if countries had greater fiscal scope, it would have more room for fiscal policy. it would be a larger toolkit. it could be used to respond. >> it seems to approve more structural reform. this situation is improving slightly. let me take you one circle further. you beautifully demonstrated the efforts that have been

undertaken from a prudential point of view. in terms of the universe that you have in yourbeing restricted the creation of parallel universes. i am just thinking of you, janet. what can you do about the shadow banking out large? it just happens that there is a development of alternative funding mechanisms. they are outside the realm of central bankers. what can be done about them in order to make sure that there is no creation of significant threats out there.

>> i think you are pointing to something that is an enormous challenge. we simply have to expect that when you draw regular boundaries and supervise intensely with them that there is the prospect of activities moving outside of those boundaries. we will not be able to detect them. we will not have adequate risk of returning tools. it will be a huge challenge to which i do not have a great answer. as we think about tools that week can use to address systemic risk, i think you can focus on those. in the speech that i gave,

margin requirements. you know, they can serve to limit leverage. not only within the banking system, but more broadly by any institution. it would be borrowing and using short-term financing to take on leverage decisions. the type of tools where there are universal effects. we have developed as many as you have. many central banks have very active monetary programs. on the lookout for what will cause the next crisis. many many years in the future. i certainly hope so, what are

the new threats? we are trying to look for those and to be attentive to them, particularly to look outside the rate of return to see where threats are emerging. this is a real challenge for all of us. >> we share the same concern. we tried to because we look at the horizon and we know the tradition or risks based on history. what do we not know from history that will rise and be the risk of tomorrow? >> we have a much more active program of monitoring those risks than we did before the crisis. >> you have taken examples from canada, switzerland and other countries. i would be remiss not to address the issue of spillover. we are an institution that is

concerned by 188 countries, they are the members and we are doing as much research as we can to identify the spillovers from monetary policies and macroprudential tools used as you describe them. we have seen strong spillovers in may of 2013 and august of 2013. i know it is not directly in your mandate to worry about the spillovers, it is in mine. we compare notes on a friendly basis. but how do you perceive them? how do you integrate them in new or way of thinking and you are attentive to what we are working on which is the study of the spillover? for those who are not in tune with this? spillover is widely understood as the consequences outside of

domestic base of decisions made in terms of monetary policy in the domestic base. the consequences of the spillovers as they bounce back to the domestic markets where the decisions were over generally made. i am sure you pay attention to it. >> we do pay attention to spillovers. also the fed, this is true of most central banks, the mandates given by congress or the relevant legislatures tend to focus on domestic goals. we certainly strive to avoid harm in generating spillovers when we use monetary policy. and of course we are affected by the global environment. this bill backs to which you refer are central in our

analysis of our own economy and the impact of the policies would be. i think if you look at u.s. monetary policy generally of course there are stills. in global financial markets, capital flows are as large as they are in the global economy today and financial markets are so interconnected, of course there are still overs and there is no denying that, but when you see significant impact on say emerging market economies from capital flows, most studies and those of other researchers would suggest there are a multiplicity of factors causing it of which movement in global interest rates would be only one.

for example when we instituted q e 2, which generated the period after that, capital inflows in to many emerging markets, and other factors also, stronger growth in emerging markets was an important factor and shifts in risk attitudes among investors globally that are not necessarily driven by monetary policy. i guess the of the point i would make is that the studies we have done, i believe this would be consistent with the imf analysis, suggest the united states, as important as we are in the global economy, when we adopt policies in pursuit of price stability and full implement, given our importance as a purchaser of goods from other countries, generally these

are not bigger policies. we are not mainly affecting foreign countries by pushing down with expansionary policy our exchange rate to its detriment when our economy expands we buy more and on balance i think the spillovers are not negative, there typically positive. you did refer specifically to the episode year ago and of course we did seek -- before there had been any real change in monetary policy--a shift in communication about future monetary policy, very pronounced jump in interest rate and for some countries and they were typically emerging-market with greater vulnerability. there were pronounced capital outflows that put pressure on currencies causing those countries to tighten monetary policy and obviously those were

disruptive. >> where you are is where she was yesterday reminding me at the time the currency in chile went up by 30%. it frequently went down a bit but it had immediate and strong effect on those countries. new zealand is another case. >> in part what was happening is traders had built up positions that were promised on unrealistic expectations about interest rate paths and the appropriate level of volatility and it wasn't just a shift in monetary policy, but a rapid unwinding of trade and leverage positions that had built up, cause that damage. i pledge often and will continue, we will try to conduct

our monetary policy to communicate about it and conduct it in a manner that is understandable to financial markets, to avoid the kind of surprises that could cause jumps in interest rates that cause such capital flows. to some extent, i think the loafers are really unavoidable in a situation of global capital markets. i don't know if you would share this assessment but my own assessment is most emerging-market said to have much stronger financial systems than they have at the time of the crisis -- if i could -- >> they sell a lot stronger after words. >> yes and all the things that

were put in place, the kinds of shocks we may see or spillovers as hopefully the global economy recovers and we are in a position to be able to tighten monetary policy. i wouldn't assume this is going to go badly and i can just say we will do everything to make sure it goes smoothly. >> thank you so much for this commitment to -- the representatives of the emerging market economies here in the room and i am sure they are particularly interested in your views as to how we can best communicate and they can best anticipate to limit the volatility risks that arise from that. i will ask you a final question before we wrap up because i know we are pressed for time. michele referred to napoleon bonaparte, who said the central bank should be independent but

not too much. with that in large responsibility in a way -- >> i changed a little bit. >> monetary policy, macro prudential tools to be used for financial stability, dual mandate of employment and growth. are you independent? >> i think we are independent and appropriately so in the conduct of monetary policy. congress has established the goals we are to pursue and this is true in most countries there is not gold independents, but there is independence about how to carry out monetary policy and there is an awful lot of research that suggests macro economic outcomes are better when central banks have the

ability to decide how to use their tools. they have to explain them, they have to be accountable. we are accountable to congress and i think that is very important. sometimes when central-bank state bonds financial stability mandates it becomes harder and i don't think independence is appropriate in absolutely every sphere of conduct that central banks become involved in. it is the conduct of monetary policy independence is important. we had the experience during the crisis of putting in place of very large number of liquidity programs. central banks become involved in those lender of last resort activities, for example the lines between which the central

bank do and the responsibility of governments can become blurred. these are times when the activities of central banks can become quite controversial. one of the things we did during the crisis to try to clarify, what is the dividing line, what we supposed to do, what is the line, the central bank should be dragged over or if it is, the fiscal authority should clearly be taking responsibility. we had a kind of accord with the treasury that was signed to the kind of indicated we may use our balance sheet to mention that we shouldn't be taking on credit risk and to the extent we do, it is the responsibility of the government, but with cooperation very natural, the lines to get blurred. there is a potential threat to central-bank but i think is

important. >> from a monetary policy. >> the least to independence. >> janet yellen come as a token of our appreciation i would like to hand over to you a little bull which celebrates the 70st anniversary of the i am have and how all started. charles: janet yellen and christine legarde, going through a q&a, very guarded and interesting answers, both in this respect talking -- janet yellen justifying the actions the fed have taken so far, making a real effort to remain confident and calm. christine legarde on the other hand really kind of pressed her on fed actions and how impact's the rest of the world, not just america. that is what the talk was about with respect to spillover and still back. was interesting is she talked-about emerging markets falling apart, she said something interesting that traders built up positions with

unrealistic assumptions about policy may be hints to american traders as well but also saying this whole thing revolves around macro prudential analysis which means the market comes secondary. what comes first is checking out the health, soundness and vulnerabilities of the entire financial system. for those saying the fed is only printing money to keep the stock market up and also as saying she would try a pledge not to upset the world markets when taking further fed action in the future. very interesting stuff. right now we want to shift gears and go to the markets, check the big board's, the dow hovering around at 17,000 area, and it pulls back, the s&p 500 is in record territory right now, up 1% in the ten year back around and 2.6 number, over four basis points. a pretty big move for the yield and a ten year treasury and cloud company looking like it might go private. those shares are up 8%. the rumor mill has been on that

for several years. back to the broader markets in record territory right now but the jobs picture more of the same. larry 11 joins us from chicago. we got the big report out today, the adb report, 281,000 was amazing. any influence on tomorrow's data? >> a little bit. it pushed us even higher. a big up move yesterday closing on that 17,000, the dow closing again, 15 dow points but you got to take that adb report with a grain of salt because the situation in that report is not always as accurate as we would like. it doesn't always match up. there is usually about 40,000 point margin for error between the adp and the employment on thursday but one thing i would say is usually see we've got -- the government pulls back a report on a holiday week. they're not doing that tomorrow so that gives me the idea that number will be fairly close and if we don't have 17,000 today we

will tomorrow. stuart: charles: the adp, there's a big boom in construction jobs, manufacturing jobs looking better. what does that do for the stock market? >> it pushes us higher. we want to get over the 17,000 level and then we got to sort out is the fed going to finally -- we listened to janet yellen, talking about what the plan is and not much but if that continues are people going to change their thinking and say okay, employment is improving and that was the real issue, is that going to get the fed to step out of the way. it is then the stock market can take a breather and probably -- i won't a drop 5% or 10% a decent amount more than we have seen in a long time and if that is the case then people will rethink. once we get above 17,000 and have good jobs numbers people will talk about the fed will talk about eventually getting out of the way, they can't do this forever. charles: the calm before the storm. want to switch to obamacare.

a report reveals seven ten americans, 68% say obamacare will play a role in deciding how they vote in the u.s. house elections coming this fall. raise 3 turner is joining us. that is an astronomical number. what exactly are people going to be looking at, focusing on with respect to obamacare? >> several things about this poll. when you look at the intensity that people who oppose, wants to see either repeal or significant changes to the law are the ones who are most likely to vote in november. a lot of other issues will occupy the voters in november but i think obamacare is still going to be front and center and second of all i think a lot of people have personal experience either themselves or family or close friends with this law. it is hard to find somebody who hasn't had their health insurance disrupted because of this law. finally, you'll see a lot more

evidence of the increasing cost of this law for taxpayers as well as health insurance premiums as we get closer to the november elections. charles: the people who will be motivated the most are those most disenchanted with the new law. >> that is right. not only because of their own personal experience that because they are increasingly understanding that this really does take away their freedom of choice, the competition these exchanges created, they want genuine choices, they want to decide what their health insurance covers, not have the federal government dictate it and i think the individual mandate and the employer mandate are likely to be first on the chopping block if republicans were to take control in the november elections of the senate. charles: nancy pelosi, we had a look at it and we don't like it. thanks for your expertise. we will talk to you again soon. we have been asking all week

long is there any way to retrieve those missing e-mails sent her by lois lerner? the irs says they have been deleted from the system, the hard drive was destroyed, they are gone forever, we will never see them again. with me now is the ceo of nightline securities. would keep talking to experts in this thing and everyone is saying it is plausible but just doesn't make sense. >> the bottom line is even though the irs is saying the hard drives have been deleted, all we have to do is go back and look at the auto box. the irs is diligent about keeping logs up to 7 years according to their and mandate of everything that occurs in their i t systems so any action taken on and i t system such as adding files, deleting files, changing files will be recorded. charles: if there was a massive crash that would have called in technicians and the stuff would have been launched. that is one area we can see but

can we determine or is there a way to determine say that did happen, whether it was delivered, did someone deliberately throw a wrench in and destroy this of? >> one thing you can do is look at the logs and say we know the irs for example is saying we deleted everything on a 6 month cycle all we have to do is look at it and say is anything else being deleted on the six months cycle? is easy to verify. charles: let's say i am going to do this stuff and it is conspiratorial, i know about the six months cycle, but is there a way to go in, look at the system, if they say take a look at this, could you tell the public is it gone forever but it was a deliberate action, not an accidental crash? >> i think that is possible and it is a question of looking at because you can't fake logs that that magnitude of a level so it is going in and looking at it from another perspective saying these things coincide.

liz: what about the effort to subpoena and other agencies out of the irs for the treasury department or the white house or the department of justice, is that doable? is it conceivable to get those e-mails that way? >> i don't see why not. the systems have requirements to support their data and send everything so there is no reason those e-mails would not be available. charles: we hope they will give you a crack at it. you will do it and not even for the million dollars but for the fame and glory. appreciates it. let's check the yahoo! yahoo! originally picked up, you see is a $0.35 right now. remember community -- stuart: canceled by nbc but has accused called following. another windfall online streaming but what does it mean for traditional television networks? joining us is john jorgensen from the wall street journal. is a too early to pronoun's

broadcast television dead? >> definitely too relief that. broadcast networks are doing well relatively. if you think about the aggregate competition they are having around them, things look pretty grim in the future but for now they're holding their ground. maybe they're in denial about what is happening outside the fortress. charles: it has to be unnerving for nbc to say i don't think this is a great show, not drawing enough eyeballs and 4 yahoo! to pick them up, imagine if they turn it into a hit. >> is all relative. what yahoo! wants is a rabid cult audience your referred to, they can take the audience that exists and bring it over to their audience platform because they are in the same game the broadcast networks are in. they want to sell advertising and if they have a fervent audience on board for the show they can sell premium advertising too. i don't think you will see it grow in terms of a bigger profile than it already has the for yahoo! that is very important group of fans to

possess. charles: we talked about how great the programming is on cable and how that was going to hurt broadcast television and the steps the game up, beginning stars and better scripts, that is how they meet this challenge or is there something they can do on the technology front? >> the broadcast networks we saw in aereo decision, they have to make the programming available for streaming options gradually and slowly because the this one to lose their bread-and-butter advertising market over the airwaves but i think you have to look at the idea of prestige which is so important right now. amc has a small audience by comparison been a very big footprint in the world of television, very big credibility, authenticity, the netflix as well. two seasons of house of cards and netflix as a seat at the emmys with nominations a it can quickly change lady, destination for talent for actors and

producers who want to bring their talent to a platform that will get a lot of creative freedom. pretty soon you have netflix competing in the world of hbo and day and see in terms of credibility and authenticity. yahoo! may not be anything for that so far but it could happen quickly. charles: at an end of day we are the winners, the viewers. we get better stuff to watch. thanks, appreciate it. new reports of hacking attacks on the obamacare exchange, release kerri stuff, we will give you the details next. shingles affected me tremendously as a pilot.

the blisters and the pain in my scalp area and down the back of my neck was intense. it would have been virtually impossible in that confined space with the rash to move to change radio frequencies. i would just stop and literally freeze up. i mean it hurt. i couldn't even get up and drive let alone teach somebody and be responsible in an airplane. when my doctor told me that shingles came from the chickenpox virus i was very surprised. for two weeks i sat up in bed because i couldn't lay down. i had the scabs all throughout the side of my head and into the upper neck region. i didn't want to do anything except go to sleep and have the pain be over. as a pilot that meant i was grounded.

i'm taking off, but, uh, don't worry. i'm gonna leave the tv on for you. and if anything happens, don't forget about the new xfinity my account app. you can troubleshoot technical issues here. if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now.

okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. charles: a romanian attacker last december getting records at least 15 times going undetected for entire month. "national review" broke this story. i love how you always break these amazing stories that the idea that someone just had access to this exchange from a foreign country is incredible. >> yes.out.

is not reassuring. and rhodes hall over the application but it was not secure. this is probably a fair claim. stuart: charles: why would a romanian attacker hacker be so interested in this? is this the first step towards something larger? >> it could be. there are a lot of questions that are not answered but when i talk to the chief of health reform for vermont he said the way it was tax would be equivalent to them just leaving the door open to burn your house and putting a security card on a post-it notes.

it is not so much that is a romanian attack but it was wide open and anybody could have done it. stuart: -- liz: is this the first cyber attacked by a foreign national? >> i think so. i can say i know for sure that it is the only one i know about. charles: it is not hard when you rollout the welcome mat. great work as usual, appreciate it. new york's highest court striking down an anti cyberbullying law. it is about free-speech but what about protecting the victims of bullying, dr. keith tableau is here with more on that after the break. means keeping seven billion ctransactions flowing.g, and when weather hits, it's data mayhem.

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charles: of real big winner buying back shares from jpmorgan and goldman sachs buying back $3 billion each. some polls on the president this morning, 33% of voters think president obama is the worst president since 1945. 45% think america would be better off if mitt romney had won the 2012 presidential election. what is your take? liz: this is not just any poll but a plurality of voters by coin of the act. their pretty bipartisan, down the middle. the president feared worse than

george w. bush, ranked lower than george w. bush. why is he ranking so poorly? when you read the poll reaction, we is seen this in poll after poll people don't like the politics of envy, they don't like the politics of divisiveness, as against them. in this constant permanency of our rage going on in d.c. the cents is the president adds to hand the sense is people understand you got to grow the economic pie. there's not one economic pie you can slice a band give to people. if you grow the pie you get more people -- charles: what do you think of the notion of being presidential? i think the president first and foremost, the first knee jerk reaction when there is bad news is blame george bush. the second thing i feel the administration has done is congress has a lower ratings and so it doesn't matter. liz: let's hear what you're

saying. when you read the survey, just being clinical and looking at it down a line, optimism is a force multiplier. they don't feel the president is optimistic. president reagan who scored the best in this poll inherited one of the worst banking crises and recessions ever in 1981. citigroup was at that time on the verge of collapse, they almost failed three time so we had 4% or 5% growth under president reagan. the american people see that. charles: optimism was the key. new york state's highest court struck down a cyberbullying law saying the was too broad and violates freedom of speech but what about protecting the rights of the bully? the victim? doctor keith and. joins us -- dr. keith ablow, the big story of the time, these kids in high school, elementary school, even college being pushed to the brink because of

cyberbullying. >> a few story and we have to protect kids and the schools have been no shows on this, they don't enforce their own rules, parents haven't been aggressive enough, in controlling the bullies who are their children in minority cases but we do have to be careful to not try to cure everything with broad laws that have unintended consequences and so what the court said it here is it is too broad a brush this issue is painted with. it could sweep up the lot of folks who are saying critical things about people that bother others and can be wrongly defined as cyberbullying. they are asking for a more narrow specific focus. charles: when i was growing up i am pretty sure you heard this from your parents, sticks and stones may break my bones but words can never hurt me, that seems to have changed. is that reflection of the magnitude of social media that words do indeed heard these kids so much?

it is the same as almost physical bullying that you and i might have gone through? >> it was always intrudes the words don't hurt. words to hurt and i treat adults who are very successful, some i ceos, women who are attorneys who still remember being preyed upon by other children when it shouldn't happen. our emotions are sometimes very vulnerable. the most vulnerable parts of us. sometimes words can hurt much more than getting punched. we need rules and we need them to be enforced by an overly broad law can do more harm than good. charles: president obama doing what he does best, blaming the gop. listen to this. >> middle-class families can't wait for congress to do stuff. so sue me. as long as they are doing

nothing i'm not going to apologize for trying to do something. charles: dr. keith ablow, help us out. can you could put the president on the couch? it does feel like he is never taking responsibility for anything. >> this is vigilante politics. the police won't do anything so i am taking the line to my own hands. the president told us from the beginning he considered the constitution to be a dramatically deeply flawed document. are we surprised that he says i will just break the law if i have to? you can sue me later? imaginable corp. said that. we are going to keep making these vehicles and you can sue us later. guess what? that would lead to all kinds of incredible backlash and the president is due for that backlash. you are going to do what? you don't care what the law is? you don't care that you have to work for people? there are branches of government? we knew that in a sense because he told us he didn't care for

our system of government when he started. charles: made we found the source of this indifference to all the things you talked about. check this out. you have a picture of president obama's senior adviser, valerie jarrett with three figures dowling in front of her. what do you make of this? >> many a truce was said in jest or where said in jest and the bottom line is this is inappropriate. you are a senior adviser to the president of the united states and your explanation is don't worry, it was just a gag gift. i do worry. because is there no decorum do the office? don't you worry that people coming in to see that might think in some way that they must genuflect as well? isn't that part of the arrogance of this administration? i think it is something. liz: sometimes you get these

joke gifts and from out. what do you make of valerie jarrett held onto it and keeps it in her office? >> she kept it and just laid it. someone might give me one of those and i would laugh off and say i am king in my office, thank you, very funny. egos in the closet. she has a out because it resonates with her. because this is a symbol of the way she does business and even though it might be self-effacing, that is me, it is true, it is true, that is the point. that is why it is kept out. charles: you are the best which is why we always ask you on. we appreciate it. netflix shares hitting a high earlier in the trading session. i did recommend it to you guys, we will talk about it after the break. i will take a small victory lap. we will be right back. n and en but the energy bp produces up here n and en 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.

charles: time for making money. 360, the company is a chinese company, core business, internet and mobile security. and amazing string of execution beating the street quarter after quarter after quarter. right now wall street thinks it will grow annually at 40%. the industry may be 19% meaning a lot of markets, number one in china, browser, mobil, apps store, search engine, now the company wants to go global last quarter, revenue 265 million up

140%. net 73 million from 17 million, earnings per share $0.54 from $0.14, their internet use was 479 million, smart phone, this is where the money is, 530 million from 275 million year earlier. i think it will go back up to $124 a share. we will be right back.

charles: time for the real halftime report. nicole petallides at stock exchange and the liz macdonald is here, liz macdonald, record highs but use and not so fast. >> the bank of international settlements, the central bank of central bankers and their members, made up of all the central bankers in the world, basically came out with a damaging report that said the economy is of the country's that are exploding in terms of assets that are rising are drunk on the monetary policies we produced. we are concerned that assets are being driven up by cheap money or whatever you want to call it and things are getting out of control and they are calling them dysfunctional. that concerns me. i love the market up here. is a beautiful thing but you got to be cautious. we will see a turnaround. charles: the word they used was

euphoric. rat race the big winner today. nicole: this is in the cloud services area. it may take itself surprising. stock is up 8% and we have discussed other acquisition bids from hewlett-packard and ibm but according to inside sources they may take it farther and give the big boost to stocks, $36.48. charles: it has been in the rumor mill long time and a lot higher too. jpmorgan chase, jamie dimon diagnosed with throat cancer. liz: checking the wires on this, trying to get the feedback doesn't seem like it is hurting the stock just watching the action here down fractionally down a point and what we're hearing is the wall street journal already reporting they have a deep bench. in other words jamie dimon's throats cancer is being treated and will go to eight weeks of treatment, his prognosis is good. usually you can cure those kinds of cancers if they are caught

early. they have succession plans in place. charles: even though he is considered the smartest guy on wall street, separating the job of ceo and chairman. back to you because once again netflix looking pretty good. nicole: people love it, people use of love it, they continue to be fought all the offer to their subscribers. i know stocks are lower by 1/3% but it did hit record all time highs, goldman sachs raised the price target to $590, good news to see cybergrowth for the company. charles: in the first hour we had a new roller coaster ride from new jersey, looking at that chart it gives a run for the money. got to come to you on this, deal like it here? >> you took it at the low but the stock is too vaudeville for my liking, it sold 30% from march through april, now it is a 50% making new highs, that kind of volatility is a little scary

but it is a p e have 177. stuart: i appreciate the shout out. the abc number is. want to go around the horn. 281,000 construction jobs, small businesses. is this a good omen for today? or for tomorrow? nicole: we have been on the right circle for jobs being added, payrolls tomorrow, high hopes and i want americans to have their jobs. easily of the 200,000 mark. if i am conservative. >> it is a good yeoman. i don't know if i hold water with it but the point is jobs, jobs, jobs. it is a disappointing number of the markets have a bit of a shakeout but the omens are good. liz: i am thinking you will see a number in that range but the question is are we getting more

mixed jobs with 4 wage growth and household incomes. charles: the question is if the job growth is that strong, the fed start to pull back on accommodation sooner rather than later. you were fantastic. thanks for the shot out. that is it for today's halftime report. we have busy for the july travel weekend beginning soon. the question is will record high gas prices put a damper on your fun in the sun? we will talk about it when we come back? if you wear a denture, touch it with your tongue.

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don't miss the lowest prices of the season with the all-new c4 mattress at $1499.98. know better sleep with sleep number. charles: gas prices this holiday highest since 2008 thanks in large part to iraq. the national average price for regular gas $3.67 but keep in mind that is $0.20 higher than it was last year's this time. liz: the silver lining, but the kids in the spring this year and the past three years or so, they could trend down in coming months. charles: does it impact the summer traveling season? liz: it could. gas is expected to top $3.75. doesn't feel great but i think it will come back. charles: gas prices third us, $4 has got to be the handle. thanks a lot. your take is next.

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>> the government cannot the liver the mail. how is the government going to help restrain kids. charles: that was just some of what the judge had to say today about the cyber bullying law. now, here is your take on president obama and the polls. romney would have been better. neither is capable of leading this nation. just a community organizer and wants everything his way or no way. those are some of the highlights from "varney & company" today. this is something from my new show that is on every night. a true american success story.

last night, it was pretty interesting. take a look. charles: we would love to hear from you. posted to our facebook page. facebook.com. [laughter] charles: this is a serious segment, guys. stop. [laughter] charles: you are in the hot seat. [laughter] charles: like i said, every night, we take you to a small business or someone who has overcome the odds. i am looking at this story. i am looking at an overweight horse. the horse loses weight. now he is combating crime.

it did not work out as i was reading it. i think tracy byrnes for that. the biggest thing that happened today, a real interesting conversation, interview by that and i -- by the imf. i thought she took and investment at investors. by the same token, i still think that the jury is out. i think it will be much sooner. we will see. everybody on pins and needles. i do not know what you will being tomorrow. you better stick around. we could have a gigantic session. >> i want to go back to the

overweight horse. charles. thank you very much. facebook facing a regulatory probe in europe. cheryl sandberg saying the company did not mean to upset people. the hosts of coney island nathan's hot dog eating contest will join us. we also have a contest right here with one of our own good a few places where facebook wants to grow its revenue.