weaker and that maybe blackberry gains. [closing bell ringing] cheryl: as we siebels ringing, here we go adam. nice performance in the markets. snapping that two-day loss already. adam: dow jones up 75 points. nasdaq up 26, 20 seven. and as we settle, s&p 500 almost 9 points. cheryl: "after the bell" starting right now. cheryl: let's get right to today's market action. we've got rob stein, astor investment management ceo who thinks we'll get accelerating growth next quarter hmmm. mike harris, despite the downturn is staying long on oil. bill arnold from ubs strategy. he blames fed inaction for lack of economic growth. stay there. todd horowitz from the pits of cme. your reaction to the fed minutes that came out 2:00 p.m. eastern

time. >> hi cheryl, hi, adam. the minutes were no big deal. as long as we have ink and paper and we continue to print money it doesn't matter. if we don't run out of ink and paper we'll be in good shape. market runs on dovish type of comments we continue to make. knowing we have yellen put in place. there is lot deeper trouble. if we look back at jobs number from the other day, although we had some growth, it was not in the right jobs. there are a lot more problems i think on the horizon. adam: bring in william o'donnell on this, speak about job growth, the consumer, consumer stocks are doing today, just not spending. these predictions we'll have gdp over 3%, you don't think we will for the rest of this year. what is going on? >> no, we have 2 1/2 to 2 and 3/4% growth for the gdp rest of the year. we don't see real wages and

salary growth with higher consumption. consumer is 70% of the gdp in our economy. we need consumption to go up and need wages to do it. cheryl: rob stein, you're not concerned about the economy but i'm sorry, do you really think they could hit a 3% gdp by the end of the year? that is really what they need to see here. >> yeah, i do. we know what happened in the first quarter. there will be a lot of pent-up demand in the second quarter. i think you will be surprised in the first print couple weeks. start to see capital spending pick up a little bit. with the fed announcing end of quantitative easing, most people think this market is driven on easy money and the market actually rallied on that with more support that i think the economy is in the right direction. it certainly could be doing better. but to say that it is rolling over, i just don't see that in the data that i look at. adam: mike harris, if this economy, if this market at least is rallying on easy money, that would seem to some people we're

in the euphoria stage of an asset bubble. next stage, take your profits and then crash panic s that inaccurate? >> but it rallied today. >> i think a lot of people -- adam: hold on a second, rob. we'll come back to you in a second. rob, what do you think? >> you have to look at the charts. yes it has been a great trend but look back over the last few years. we've had a beautiful trend channel that just continues. certainly 20-day moving average coming in and giving us support last two days at 1953 in s&p. really we have to get through the thursday high of 1978 in order to have this trend continue. then we'll be targeting that all important 2,000 level which will be very psychological. cheryl: that will be interesting. i want to go back to todd horowitz on that very issue. you're projecting for a weak earnings season. we her from several of our guests today, if we don't get top line revenue growth from this earnings season, they can't use weather as an excuse all

bets are off for the markets, todd. >> i don't see where they get growth. this is my contention for the last 5% move in the market. alcoa had nice growth, yesterday, great. overall companies are not growing. new employees are not being added. we're not seeing manufacturing jobs. we're not seeing areas of targeting where we don't see growth. there may be a few outlyers that will show it. the overall picture looks very murky. could we see 2,000 in the s&p? sure. market and main street are not related to each other. one is investing. one is earners. earners are not earning money. in fact we're earning less money than 10 years ago. we're paying twice as much for goods and services. the problem, when do we run out? we'll see how it works out. i do not see growth. i look for very disappointing earnings season. adam: rob you had a comment about the euphoria stage of a bubble. tell me where you would put your

money to work right now in this kind of environment. >> i think that the market did very well with an indication that easy money is coming to an end. i don't know where todd, what todd's looking at. the employment report that came out was terrific, 280,000 plus jobs. they revised april to higher. more people are working now. the three-month average of job growth is higher than it has been in years. we like the broad market. i like value stocks. i like energy stocks. i like the fex, which is a broad index by. i think you're not going to get the type of performance you had last year but i think the risk that you have right here is worth the return you're going to get between now and the end of the year. i would commit more money to the market. cheryl: i do want to say, specific picks are power shares, first trust, alphadex. energy select sector. those are your picks for viewers. i take over to william o'donnell. you said the employment picture looks good. jobs picture looks good.

guess what, william? if you have lots of service jobs, plenty of bartenders and waitresses but they're not making much money. >> that's a key point. if you look at the breakdown of consumer sentiment. wealthy are feeling great. they have wealth effects from higher home prices and stock prices. it is middle and lower class. there is no traction, still for them feels very like a recession. until we have all the cylinders firing in consumer spending we think growth will be relatively limited. >> aren't we seeing some of those cylinders start to fire, mike harris, in consumer spending? you don't want people taking on excess debt. the debt with the recent report was non-resolve which wouldn't necessarily be a negative, would it? >> well i think the market will continue to focus on economic data. certainly we get a ton of it next week with inflation data and retail sales number, i think that will be a big one to watch. at the end of the day, i think what is driving this market continues to be a lot of this

short-covering. we're systemic an our models continue to follow uptrend in stock. macro discretionary hedge funds continue to find reasons to short this market. as it makes new highs he have this to cover the positions and get back in. as they underperform traditional benchmarks they get long again and that continues to drive markets higher. cheryl: todd, as you look at fed, this is your words, not mine, a legalized ponzi scheme. this is biggest debate about the fed and printing money, they're propping up economy. not everybody agrees with you, todd. defend your stance that the fed is legalized ponzi scheme. >> they have the ability to print money and push the can down the road. as long as interest rates remain low they continue to prop up paper assets. eventually this will come to an en. this will be similar to japan in the '90s, where they artificially pumped up asset classes. weakness of dollar, dollar continues to be have lower values on products. what will happen, eventually

money runs out, paper will run out and they well have to change stance here and it will be an ugly ending. adam: bill, give you the last word on this bank of japan still easing but you don't have any expectation we'll get an interest rate hike here in the states. some people were saying possibly end of this year. some saying 2015. you don't see it anytime soon? >> no. we expect it september 2015 fomc meeting. given that we look for relatively benign rate ranges through the balance of this year. my choice of a favorite asset i choose best of a host of bad choices in fixed income. i like intermediate sector of the treasury curve. cheryl: rob stein, mike harris, william o'donnell, gentlemen, thanks to all of you for being here for the top of the show. appreciate it. todd horowitz we will see you in a few minutes with the big close of the s&p. adam: you might call him a man with the crystal ball. one analyst gives us nameses that could beat earnings and some that will fall flat. you need to listen to this one,

last quarter he was 100% correct on all his picks. cheryl: plus he is australian known around the world for his expertise on the u.s. economy. that's right an aussie, who loves the u.s. he has a five-point plan what we need to do to boomerang back to growth. he will break it all down coming up. adam: brazil's trouncing at the world cup could mean much more . it could be even bigger hit to its economy. should you stay away? or will it create a perfect buying opportunity. >> time to drive tears, everybody. speaking of brazil's loss, it is one of many famous lopsided defeats in sports history. we'll break down some of the biggest coming up. ♪ [ male announcer ] once, there was a man

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cheryl: time warner shares getting a boost today following reports from fox business's charlie gasparino. adam: we'll head back to nicole petallides on the floor of the new york stock exchange. all right, what is charlie breaking now? >> it is really interesting. the stock moved to a new high, highs we haven't seen since 2001. right now it is closing up almost 2 1/2%. it hit a high of 73.07. what moved time warner's stock was reporting that over there in silicon valley that google has been telling bankers it wants

content and our own charlie gasparino has been reporting on this and beating about this. you can go on twitter to read about that as well. saying there's a possibility in turn that time warner's buyer could be google. now of course, charlie gasparino is well aware that this would be an incredible long shot. it is very expensive to do this. but content seems to be the word that is really being floated around in silicon valley. who provide content but certainly hbo, cnn. imagine those being actually owned by google. granted a lot of this is talk charlie has been hearing but worth enough to move this stock and so we'll continue to follow this on fox business but the facts are the facts and the fact is, that time warner's stock moved to a new high today and closed at 72.41. cheryl: charlie came on in the last hour, nicole, absolutely. it is content, it is media and he mentioned google. i think -- adam: everybody is trying to line up for next five years. content is king.

nicole petallides. thank you. s&p futures are closing. we'll head back to todd horowitz in the pits of cme. todd? >> looks like we'll close up near our highs. the key thing to watch rest of the week, wells fargo kicks off earnings season on friday morning with banks earnings. biggest thing we have to watch banks are not making enough money because they haven't been lending and providing liquidity. if we look at earnings that will give a good idea the direction we have going forward with wells fargo on friday and citigroup on monday. adam: thank you very much, todd horowitz. >> thank you. cheryl: second-quarter earnings season is underway after alcoa kicked things off yesterday so what is ahead for investors? we have two names that could beat, two names that could miss from an analyst whose predictions for the first quarter were 100% correct. adam: joining us thomson reuters senior research analyst. congratulations on the past. let's talk about the present. going into earnings season we'll see growth, it is better than

past quarters but where should it be? is it healthy? >> it is healthy. 6.6% of earnings growth for s&p 500 is not that bad. what is encouraging we're dedouble-digit. we see growth rates come down as we get crowser to the quarter. that might happen again. cheryl: sectors that you say will have positive numbers. of course positive, talking about technology, energy, materials, kind of the story continues in your mind? >> right and the cap-ex story continues for technology. we'll see increasing cap-ex. semiconductors have been really good in this technology index. 40% expected growth rate for symphony separates. part of that, you see semiconductors in cars, mobile phones, computers, laptops, ipads. so that's a real area of growth for the technology sector. adam: as we get into technology sector, i will ask you about losers. cheryl ask you about winners. just, you know, good-looking winner over there.

who do you think will really disappoint this year? >> one of those companies is surprisingly amazon. a big company. everyone has heard of it. everyone is buying from amazon. my wife goes on amazon and buys stuff every day, but the point is they're spending a lot of money on future growth. they're gambling current earnings in expectation of future growth in earnings. seeing margins come down. not a good sign. adam: their margins are already historically tight to begin with. >> that's why they're expecting losses this quarter. amazon with that large earnings base still having losses is quite surprising. adam: you have another one you think might join amazon in the loser column. >> that's right. we have enco. is an ol' rig company. offshore drilling is slowing down. they provide offshore drills and rigs. we're seeing a lot of demand not there for those rigs. prices for the rigs falls quite a bit. their margins are falling. in fact one really telling sign

that we have, we have two five-star analysts. these analysts have been very accurate in the past and this quarter they have estimates far below the estimates. you might want to listen to the analysts. they have been right in the past. chances are they are right again. cheryl: will go for winners theme. nvidia, two names calling big winners. i'm listening you were right since the last quarter. >> mgm is surprising story. for the casinos it has been about macau. surprisingly for mgm we're seeing nice growth in vegas right now. they're seeing strong convention center traffic and they're seeing tables actually fill up quite nicely for mgm. they're taking share away from some competitors. expect mgm is beat estimates. our smart estimate is slightly above consensus. that gives us indication they will beat. cheryl: nvidia? >> going back to the semiconductor. you see nvidia chips in cars,

mobile phones, laptops. they're no longer tied to the fallen pc growth. for the longest time as pc growth fell, nvidia was taking a big hit. that is not the case because they have diversified so much. adam: when i hear you talk about potential double-digit earnings growth in the third quarter and fourth quarter, should i take that to mean this bull rally could continue or should i be weary of this. >> here is the funny thing. s&p 500 forward pe is 15 pine 6. compared to historical ratio it was 14.9. it is trading more expensive than it has been trading historically. maybe some of this has been baked in already. this growth if it doesn't pan out we might see a pullback. adam: okay. cheryl: i have to say, interesting you're looking at specific sectors. i think surprised by technology, sure. i understand. but something consumer related with the mgm call that -- that to me a good sign maybe the u.s. economy is finally going to show some real potential and will

translate to a stock. >> it's a "tale of two cities." we're seeing consumers who used to shop at walmart going down to dollar stores. so we're seeing walmart may not do that well. because those consumers are trading down to the dollar stores. that is an area to watch out for at the consumer level. cheryl: sri raman, thomson reuters analyst. thank you very much. can't wait to see how the earnings will be doing. adam: down from 100%. treasury secretary jack lew talks tough on china's currency. we'll tell you why you should pay attention to the high level talk between the two countries. >> some say the u.s. is becoming more like europe and that is hurting our economy. how do we fix that? we'll talk to an author who release ad five-point recovery plan for america, but he is from australia. adam: do we get french food with it? we heard a lot about power momentum stocks but how do you actually get in on the action? we'll tell you about some investing strategies you may actually not know about. ♪

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cheryl. analysts set low expectations on progress between the u.s. and china on the economic front in particular, on getting beijing, especially, to loosen controls on its currencies. our 300 billion-dollar trade deficit with china is at stake. critics charge china helps to sustain this gap by keeping its currency, the yuan, artificially low through government controls which makes their products cheaper on global markets relative to american products. ahead of meetings in beijing, secretary jack lew said, quote, moving to a market-determined exchange rate will be a crucial step in china's economic reforms. while the yuan has appreciated against the dollar since 2010, in april, treasury expressed serious concerns about the potential for china to reverse course and to push down the value of the yuan artificially. critics are tired of waiting and they want washington to slap china with currency sanctions. just this week democratic

senators bob casey of pennsylvania and charles schumer of new york warned the white house the president's push for a major asian trade deal is in jeopardy without clear and measureable policies to address the undervaluation of the yuan. the president, who will meet with china's leader at the asia, at an asia-pacific summit this november has been urging more patience in talks with beijing. adam and cheryl. cheryl: peter barnes out in washington. thanks so much. adam: thanks, peter. time for a quick speed read of some of the day's other headlines, five stories one minute. short selling has dropped to the lowest level since the tart start of the financial crisis. percentage of stocks borrowed by short seller fell to 1% in the u.k. and 2% in the united states and europe. dubai airline emirates finalize ad $56 billion deal to buy boeing 157 757 jets the

after emirates scrapped an order with airbus. honda and subaru announcing new recalls. honda expanding the faulty takata airbag recall up to 3 million from 2 million. subaru is recalling 7500 vehicles for the same problem with the takata made airbags. bentley sales soaring to new record. reporting a 23% rise in global sales during the first two quarters. 7-eleven is looking to lure tech salvesy computers for its 735th an version. they are handing everything from ice cream bars to big gulps if consumers buzz buzz download the app. adam: that is longer than usual speed who doesn't want a slurp pe. adam: i want a two-door bentley coup. >> you're a car person. the fate of a country's economy doesn't usually depend on a

sports team. except if you're brazil and that sport is soccer. we'll tell you why yesterday's game could be a tipping point for brazil's economy and what that means for your portfolio. adam: it has been a roller-coaster for the so-called momentum stocks over the past few months. if you can't stomach the ride, we'll tell you how to play these names without buying individual names themselves. ♪

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adam: to say momentum stocks have been volatile, that is an understatement, right? they quickly fell out of favor in march and april. made a comeback last two months and continue to suffer once again. if you want to play momentum names and fear wild ride for individual stocks there are etfs that hedge some of the volatility. first is dwa momentum etf which is up almost 7% this year. its top holdings include jazz pharmaceuticals, priceline and gilead sciences. df, holds names like facebook and gilead sciences and allergan. it is up 6%. aq momentum fund that etf is up over 18% over the past year. its top holdings include google, facebook, gilead sciences. see a trend there? amgen. gilead science is among the top 10 holdings of all three of these fund. that stock up 62% over the past year. cheryl: u.s. is more than six

years into its economic recovery but first quarter gdp contracted by nearly 3%. that is the steepest amount since 2009. so what does america need to do to pick up the pace of growth? our next guest has a five-step plan he says will help the u.s. regain its economic leadership. joining me, nick adams, author of a new book, american boomerang, how the greatest turn around nation will do it again. you're australian and wrote a book about the u.s. economy? >> yes, ma'am. cheryl: you say the debt we're carrying around as a nation is weight on our ankles? >> cheryl, james madison went bit principle that public debt is public curse. i go by the exact same principle. let's put it into perspective. put american debt into perspective. if you started a business the day that jesus was born and launch ad million dollars, every single year, you would still be in a better financial position than the american government. that is how bad it is. you're right, dead is weight

around oar ankles. a strained economic power is strained power overall. the last thing we want is for america to be a strained power in the world. cheryl: what do you think is the problem though? one of the things you've done, you've studied, even though you're australian, you've studied the u.s. economy for years. what do you think other nations could learn from the u.s. economy? many americans are very down on whether it is the gdp, which is not, wage issues that we're seeing, concerns about inflation? what is the australian economy in particular learned from us? >> absolutely. you have to 17 trillion in debt. 47 million people are on food stamps. 22 million people work for the government. that is the entire population of australia. that is far too many. you know, all of the figures are terrible. poverty is on the rice. incomes for working families is falling. and all of these things need to be corrected. america, cheryl, has always been the economic engine of the world

for as long as we can go back and remember. there is so much to learn from america. it is all about lower taxes. it is about government getting out of the way and allowing businesses to thrive. cheryl: so you have a five-point recovery plan for us. >> yes. cheryl: you say that the step one is spare the american people and create a business-friendly environment. cut taxes basically, first and biggest message? >> yes, without a doubt. you need to cut taxes. you need to stop spending like a drunken sailor. cheryl: this coming from an australian. you're killing me now. >> it is so important that we get america strong because australia benefits when america is strong, cheryl. the entire world does. it is absolutely pivotal that we get this right. just look at red states. look at red states with red governors. whether it is texas, wisconsin, ohio, florida. where taxes are low, spending is under control and jobs are on the rise. that is the model america needs. if america can become like texas and not like california, then

the economic woes will go. cheryl: you say should cut red and green tape and deregulate certainly. spur hiring. you also say stop spending so much money and get that under control. our central banks and central banks around the world we should point out here, this has been the plan overall, whether u.s. or europe. i'm not so sure about australia. this brought us out of the brink of what could have been a depression. >> it is not easy, cheryl. i don't for one say it is easy. but it needs to be done. what america has to do, i believe, is embrace those economic values that always embraced. so it becomes the powerhouse of the world. it needs to exploit the energy resources directly under its feet. whether we're talking about untapped oil reserves. whether we're talking about natural gas. whether we're talking about shale oil. all of those things america need to become energy independent. that will benefit america not only financially but also foreign policywise. so there are some things and

quite frankly, president obama's economic policies, many of them would make a soviet central planner blush. and you know, it's, really unfortunate that america pursued this european welfare state-type mentality and approach. the safety net has become a hammock. america is waning because the entitlement state is waxing. cheryl: that sort of the fact we have a democratic president in place right now. we have values that being imposed. >> exactly right. the left are not interested in creating wealth. they're interested in inequality. they don't like capitalism because they don't like painful reality that capitalism delivers winners and losers. >> nick adams, the book, "the american boomerang and turn around. always a pleasure. >> thank you, cheryl. cheryl: adam? adam: what is the world got against drunken sailor spending? cheryl: nothing. adam: public attitudes about tobacco have caused almost all

of tampa, florida's cigar rolling factories to close. with the last factory laying off 100 workers, what is next for the cigar industry? it was a devastating loss at the world cup as host team brazil, they fell 7-1 to powerhouse germany but we found some even more lopsided sports losses throughout history. we'll tell you what they are next. you have, yeah, the mets are on that list. ♪ [ male announcer ] if you're taking multiple medications,

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cheryl: by now we've all seen and heard about brazil's human mill eighting world cup loss to germany. brazil, well-known for being a soccer powerhouse, racked up just one goal compared to germany's seven. will this game go down as one of the worst losses in sports history? here is a list of some other infamous blowout sporting defeats. in 1940 chicago bears destroyed the washington redskins in the nfl championship. the score was 73-0. i know. 1962, known to baseball fans as the new york mets inaugural season, a year mets fans may wish to forget forever. the team won just 40 games.

they lost 120 games in that season. belmont stakes in 1973, winning horse secretariat, stomped all over the competition beating the second place horse by get this, 31 lengths. in 1988, 32 minutes into the french open final, beat her opponent in two sets. shortest grand slam win ever. 2007, mlb texas rangers came back from behind to defeat the baltimore orioles 30-3. don't mess with texas. first time a baseball team scored 30 runs since 1897. adam: people were in tires. cheryl: okay. it is a soccer game. adam: it was a soccer game. otherwise known as football. brazil's soccer reputation took a huge hit, when they lost, trounced, devastated by germany in the 7-1 in the world cup

semifinals. can we pour more salt into the wound. cheryl: tears. adam: what does it mean for brazil's markets and its economy and upcoming presidential election? cheryl: we have cbs global emerging markets head of global strategy. we've seen video with all the tears. brazil's economy reported to us in the last hour on fox business, is actually somewhat of a disaster right now. that is kind of the side of the story that you're watching. >> yay. that's right. the economy is growing very slowly. we think about one-to-one 1/4% in 2014. it has been been very slow for the past two years in fact. i think what the difficulty is for the brazilians this contrasts with very strong growth in the previous economic cycle, which of course was highlighted by the globalization trend, the opening up of china, the massive commodity super cycle. now that is all coming to an end, brazil has to find domestic sources of growth.

frankly it has been a big disappointment. adam: haven't they missed their opportunity? slowest growth, since, two, 1992? i had a buddy with two clothing stores from sao paulo and rio. he would smuggle jeans in and bribe customs agents because tariffs are so huge. they have a bureaucracy to start a business is outrageous. that has not changed. why would a company in the united states want to open up shop there? it is just too cumbersome. >> that is right. you hit a couple of things there. the tariff issue. you don't have completely free trade ability to move in and out of the country. you have tremendous bureaucracy. i think they're all part of what we call in the business, the brazil cost, the cost of doing business in brazil. to make this economy more efficient you have got to eliminate some of these difficult regulations in terms of allowing the economy to function better but our point as well you have to tackle the size of the public sector. it is very overbloated public

sector. you have too many employees. pension costs are too high. wages are too high. means essentially the private sector of the economy gets crowded out. that is also contributing to this very poor growth outlook at the moment. cheryl: dennis, what about the fact that the olympics are coming to brazil? isn't that going to be another hit to the economy? the criticism against the president now that she obviously overspent with the world cup and really jeopardized the economy in brazil. now the olympics are in 2016. what does that mean? >> well i don't know the exact cost of the rio olympics compared to the cost of world cup. i suspect till will be lower because only one geographical area. cheryl: we're showing 2.3 billion is the expected cost to the country for the olympics. >> which is going to be, w thane world cup was because that was all around the country. by then we'll have a new president in brazil. either dilma will be reelected

or new president. the economic challenges that face brazil to get ready for the rio olympics that is absolutely right as well. perhaps seeing huge cost to the world cup and more money needing to be spent for brazil to get ready for the rio olympics, you could argue that will be unpopular, unless growth of the economy improves. right now we're not sure that you're going to get structural reform that you need to really get the economy improving significantly. adam: moody's is rating their debt, what aa-2. that is only two notches above speculative grade. for investors we heard "bric," "bric," brazil, brazil. where else can you go if you don't want to ache a chance on brazil. >> we're not that thrilled with many of the "brics" right now to be honest. they have lost their luster without any question. the markets we like in emerging at moment, we like taiwan, we like korea, which are almost

quasi-developed economies in truth. we countries like colombia, peru. we like poland in europe. we like mexico because mexico is very leveraged to the u.s. economy. as the u.s. economy improves gradually over the course rest of this year and 2015 we expect that will have some beneficial effect on mexico. brazil, is not particularly leveraged into the u.s. economy at all. at the margin that is another modest setback in terms of growth in brazil. adam: jeff stennis from ubs. thanks for joining us. >> thank you. cheryl: a city with a rich cigar-making history may soon lose its last 104-year-old factory. we've got that story coming up next. adam: plus, if a new concept for military drones is any guide, future battlefields may look a lot like scenes from the transformers movies. we have details when we go off the desk. ♪

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cheryl: travelers appear to be waiting more and more when flying. according to the transportation department, 76.9% of u.s. flights arrived on time in may, down from 79.6% in april. the tsa also reporting that the largest airlines canceled almost

2% of their u.s. flights and may nearly double the rate in april. adam: so who will get you to your desnati on te. an bets here? cheryl: yeah. adam: major airlines, hawaiian airlines and alaskan airlines ranked best for on time arrivals. flip side, express jet and envoy which flies small smaller planes for big airlines ranked last. that's it. only 101 complaints. cheryl: it is always hawaiian airlines. adam: everybody is always a good mood when they go to hawaii. has to be more than 1,000 complaints. you get that in one hour. cheryl. used to be, you will like this, there used to be 150 cigar rolling companies in tampa, florida. the only company left is laying off more than 100 of its employees. adam: phil keating is live from

the cigar city with more on the story. what gives, phil? >> congress gave the m over tobacco which now includes e-cigarettes and cigars. in fact this machine here has 10,000 working parts. it has all of this loose tobacco. it goes through this conveyor belt like a model t ford factory, rolling into cylinders. wrapping into paper. eventually polished, rounded tip. pops on out. 60,000 cigars made here at jc newman cigar company. but factory owners of cigar manufacturers around the country say, you know, jobs will be lost and factorytries like this will be close in the fda does not back off. >> this place, it is like a family. we're all family. >> tampa's jc newman cigar factory has been packing, twisting, wrapping cigars like

this exactly like this since the 1930s. there was a time when 150 cigar factories here gave tampa the nickname, the cigar city. today newman is the last one but maybe not for long. >> in order to introduce a new cigar, the fda would require 5,000 hours of testing for smoke, nicotine analysis and without new products, we would be strangled and eventually have to close down. >> rolling it into the binder. >> the fda is willing to exempt cigar makers for premium cigars. but those must sell for $10 and up. most don't. putting cigar makers into the position they say, of raising prices to avoid regulations. >> it is like saying, you will pay $10 for a hamburger? no. >> the food and drug administration said its aim is simply public health. quote, combustible products like

cigars are known causes of serious health effects including cancer and heart disease. the fda's public comment period ends on august 8th. so these proposed rule changes are just that, proposed. nothing's final yet. giving the cigar makers here in tampa, as well as down in mimely, two cities in florida with the biggest cuban populations, and biggest history of making cigars. a little more chance to hope that perhaps things will stay the same or they will be exempt from these tighter regulation. cheryl: so much history, phil. thank you so much, phil keating live in tampa, florida. adam: what would you do if you saw what looked like a robot from a "transformers" movie flying over head? happens all the time in manhattan. could happen sooner than you think. that is next. cheryl: nothing getting worse than being stuck on the tarmac. one pilot recognized their passengers misery after being

grounded more than two hours and found a way to turn their frown upside down. find out how when we go off the desk. ♪

>> let's go "off the desk." we've all been there of the stuck on the tarmac due to bad weather conditions, grumpy, hungry. well one frontier pilot recognized his passengers predictment and took it upon himself to turn their frowns upside down using pizza. yes, frontier, although you're looking at southwest jet. pilot of a grounded plane in cheyenne, wyoming bought 35 pies for the 160 passengers from dominoes all on his own dime after they were stuck on the tarmac. the dominoes's manager got the call at 10:00 p.m. just as they were letting employees go home for the night. they got them in 30 minutes and delivered by flight attendants throughout the cabin. pretty cool. adam: ever seen the movie

"transformers"? bea systems is working on aircraft that will do like the movies. transformers drone will look like this. it was created by bea systems but the transformer will separate into three separate aircraft at a moment's notice. earn billions dollars at the box office. reducing drag, saving fuel and add element ever flexibility no other aircraft had before and won't have to wait on the tarmac. >> that is crazy. number two thing to watch tomorrow will be chain store sales for june. departments, discount, apparel stores will all release their reports. chain store sales stores are strong indicator of consumer spending trend. accounting approximately for 10% of all retail sales. adam: number one thing to watch tomorrow will jobless claims. economists expect number ever americans filing first time unemployment benefits to remain flat at 315,000. >> we want to wrap it up.

argentina and netherlands is 0-0 at halftime. doesn't matter. gerri willis is coming up. i'm sure you have a great show and special guest coming up, right, gerri? gerri: that's right. thank you, adam and cheryl. guess what. we have the pilot of that frontier flight 719, the hero pilot who bought pizza for entire plainload of weary flyers. also coming up today, the summer heat is bringing out the bugs and ticks. we'll have important new information about backyard pets. also a new study says american teens don't score great when it comes to financial know how. we'll look at what is keeping this generation behind. news about the prices on generic drugs. they were supposed to be cheaper, right? the cost of generics is soaring. we'll find out what is going on. the "willis report" where consumers are our business starts right now. gerri: we begin tonight with the latest headwind affecting your bottom line. conflicting reports out on the