not so strong. that certainly happened today. >> gold down $17. [closing bell ringing] david: bells ringing on wall street. boy, not a good day to begin the week after a holiday. traders skittish about a lot of things. whether federal reserve board, what is happening overseas. or some of economic data. look at economic data in different ways. that is the problem with data. sometimes the stats look good. sometimes they look bad. clearly in conjunction with what the fed might do in the future. all of this is time to sell stocks, rather than buy stocks. liz: at least today could all change. we had all-time highs for s&p 500. let's get to it. "after the bell" starts right now. liz: let's get right to today's market action. patrick of brandywine global. patrick is here which two sectors, will keep it simple,

you should be in right now. kim forest of for fort pitt capl group. why the market is comatose. and how the market will snap us out of it. larry shover from the cme. consumer confidence better than expected. durable goods ex-transports, better than expected. new home sales better than expected and the markets bank. why? >> why? add on top of that cpi on friday better than expected. right now we're back to that good is bad environment, something we've seen before where again i say the market participants don't, have not reconciled the fact that the fed will at some point raise rates, probably sooner than they think. the market is getting spooked, a little nervous. last 20 or 30 points up have been on apathy and fear of missing the next big rally which has not come to fruition. really good is bad. that is back to where we are right now. simple as that. david: kim, you believe also that the market views this cash that the fed is printing out as

kind of morphine. they may go through withdrawal. however you also have some cash. i'm wondering on a day like today, would you use some of your cash to buy into stocks? if so which ones? >> well we were, we would put money to work on a day like today. there was nothing that was really in our price range. so, we are very, very, price, you know, we determined what a good value is. we try to stick with that we believe the fed's imminent raise here, whenever it happens, is going to give us an opportunity to buy in and we will be buyers then. liz: patrick, with all the data that came out today, how could you not be at least long-term optimistic? maybe short term we're seeing middling and bottoming of data and see weakness. where do you stand, optimistic or pessimistic for six months or couple years? >> for longer term we're very optimistic. while the market looks fairly

valued right now, there are pockets of good opportunity out there. any one day, it could be a bad dart. i am hesitant to say. that is why they call it random walk down wall street. who knows. i can't tell you what will happen next month. but we're optimistic because we see strong fundamentals for the u.s. economy. things are getting better. the economy is still growing. plus bonds are not a great alternative as we've been talking about for a while. david: larry, our stocks have been flat since first of the year but not so since insurance where they have a boom over 20%. i'm wondering which stocks you see more at risk right now? european stocks or stocks in the united states? >> you know, i think it is united states without question. i would never say get out of stocks all together, but relatively speaking i would say europeans followed by japan. both of those stock markets make a lot more sense than what is going on here. i feel like we're at end of expansionary period here in the

u.s. i'm not saying we're going into recession but productivity has dropped two quarters in a row. wages are increasing but output is shrinking at alarming rate. put that aside, also we have flows are going to europe and to japan. that is where investors need to be going. but i want to be really clear. i would never say the coast is clear, investing works. you should never sell weighting in the u.s. i would be at or a little bit underweight in the u.s. right now. liz: let's say you're in the u.s., kim, what are you buying right now, what are you accumulating at this point? give us a name. >> sure we think the economy is getting better. because of that the stocks we think will benefit most are cyclical oriented stocks. so that is technology. we like ibm and intel. then, industrials and we like boeing. david: well, patrick, airlines, speaking of the airline industry, have found a great tailwind with these low oil prices. is there one airline that sticks

out to you as a good bet now? >> yeah. well, there are several. the one i highlight right now is delta, trading at less than 10 times p-e on this year's expected earnings. all the airlines are benefiting from low fuel prices but clearly delta is one of the best managed ones. i read a note, delta, somebody this quarter will put up respect able 16 to 18 percent operating margin. people are discounting airlines that 16 or 18 is not good enough stocks are down a lot. i agree with kim. cyclicals are ways to go. i'm personally more fan after airlines and autos. more kick, good yields, in cases of autos in some cases. single-digit p-es. cyclicals and rising interest rate plays are really the place to be. liz: kim, let me flip it back to you then, is ibm a dividend play? they have had quarter after quarter of shrinking revenue? people who are smart either love

this like buffett or people who very smart think this thing is over or it is just a services company. even with that it is not getting a lot of heat? >> well it is a couple things. it is a big complicated company. some of it is they're divesting some of their bad margin business. i applaud them for doing that i will say growth hasn't been there but i have to tell you this, i have never been so excited about a concept, the cloud, is just exciting to me. i think it is going to change the way we live. i think ibm is well-positioned to help companies get their data into the cloud and change our lives. that is the short ibm story that i have for you. liz: kim forest, patrick, thank you. larry shover, always wonderful to see you, thanks. david: what is moving the markets today, the economy or the fed? with us steve forbes, forbes media chairman and editor-in-chief. steve, the economy or the fed, what is moving the markets? >> i think partially the fed.

and also though, around the world, china is in confusion right now. we had two articles today. one online here at "forbes," saying china will go for another big stimulus package. "wall street journal" saying the opposite. they're going supply side. japan is still stuck in a rut. showing signs of life but not enough. you still have deflationary environment out there. so i wouldn't sell stocks. but i think you have to look at the next six months assetting the ground for hopefully a good election cycle in 2016 because it can't coming from much of the economy here at home. david: well that is year-and-a-half away, steve. do we have to wait until then? >> no, the election by the end of this year, early next year, people start to have a real feel about how this election cycle is going to go. i think it will be optimistic one because of all those republican candidates. you have a lot of ideas starting to be put out there and how to reform the tax code. how to reform health care. and so i think you're going to get excellent ways of moving

this country ahead. market as you know, try to anticipate the future. david: they do indeed. by the way i read somewhere that you're actually advising john kasich now on a flat tax, is that right? >> been advising several candidates and that's the good role of an agitator. candidates are interested. governor case i can is very -- governor kasich is interested. i think governor kasich will come up with a very good flat tax proposal. this is all to the good of setting framework, setting groundwork for a good economy after the elections next year. david: by the way, i know you were a republican candidate. i imagine you're still registered republican. if hillary clinton came to you, steve fobs i think you're on to something with flat tax would you give her a blueprint? >> i would give her a copy of my book the flat tax revolution i wrote 10 years ago. give it to her for free so she doesn't have to go to ebay or amazon to find it. anyone who wants the advice is welcome to it. i want to see the thing get

done. if a democrat is smart enough to take it up, more power to them. david: back to the federal reserve for a moment because janet yellen no matter how the election goes i believe her term extends into the next presidential term do you get any sense that she is growing weary of printing more money as a solution to our problems? >> well, as you know the fed stopped that several months ago but the problem is they're not reducing the size of their portfolio. and they still remain a dead weight on the economy. sooner they allow real prices of money to become effective, i.e., allow interest rates to go where the market tells them to got better off the economy will be. we still have too little credit going to small and new businesses. that is reason why we haven't had vigorous job creation we formally would have in recovery. david: -- normally. i wonder if it is more than that, steve, consequences of federal bank activity not just

the fed but what they're doing overseas like negative interest rates which is very distort tiff thing. commercial banking, when you have negative interest rates banks don't make money when they lend it out, that has to hurt business. >> what it is a tax on the banking system, the credit system. right now you see both europe and japan makes same mistakes on quantitative easing that we have made which end up depressing economy rather than stimulating the economy. so they're growing to be a drag. they're in deflationary mode even though they think they're in inflationary mode. david: i'm wondering if their activity, clearly they will do more of it, draghi said he will do more of it, i wonder if their activity might encourage our fed to do even more of that money printing? >> i hope not. the fed, i think they think quantitative easing was a success in this country. it wasn't. and the key thing now is to get the fed off of its duff and start allowing interest rates to

be natural so you get a natural, vigorous credit market which we don't have now. david: steve forbes will be the treasury secretary no matter who wins, republican or -- >> i don't think so. david: we can hope so. we can wish and dream. thanks very much, steve. liz: thanks, steve. "forbes on fox," 11:00 a.m. with david and steve. the best show on the weekend. we have breaking news. shares of tivo rallying 4% after reporting earnings beating estimates. they reported a 17% rise in revenue growth. david: wow. liz: 7% jump in subscription. made acquisition of a polish company. brings them, david, into 25 countries. tivo now pretty international. david: i thought tivo was behind the curve but apparently not. all right. liz: big warning from goldman sachs. the markets, they say will go nowhere for the next year. now, do you believe that? or, has goldman lost some of its street credit due to previous calls that haven't worked out so

well. david: may be talking their book. meanwhile the government data collection program could be on the chopping block this week if the senate can't get its act together. details of that straight ahead. liz: it was the worst holiday weekend box office since 2001. was it bad flicks that kept viewers away or netflix that kept viewers away? no matter what side are you on, can you play it? our panel weighs in. david: it is still memorial day week as we hear about the loss of ramadi to isis, we should never forget the brave americans that died trying to keep the city free like michael mansoor who was awarded the medal of honor posthumously in 2008. >> time will not diminish his legacy. we see his legacy in the seals whose lives he saved. we see his legacy in the city of ramadi which went from one of the most dangerous places in iraq to one of the most savest.

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liz: used an online service provided by the agency to gain access to information from more than 100,000 taxpayers of the information included tax returns and other tax information on file with the internal revenue service. now the irs says fees thieves targeted system from february to mid-may. we'll get you more when we know it. david: frantic search underway in texas for 12 people with severe storms and flooding. they were staying in a vacation home literally ripped from the foundation and carried down a river by all the rising floodwaters. 11 people were killed in texas and oklahoma but these storms which spawned multiple tornadoes. officials say, officials say parts of houston got 11-inches of rain in six hours. forecasters say the storm system virtually stuck over texas, meaning more flooding could be on the way, liz. liz: the senate skipped town for week long memorial day celebration without extending the nsa controversial spy program. david: lawmakers failing to pass

multiple versions of legislation. will the senate make a deadline? blake berman all the details. blake? >> david, liz, white house press secretary josh earnest said earlier today the national security agency has indeed begun winding down the bulk data collection program. the controversial portion of the patriot act first exposed by edward snowden expires sunday at midnight. ernest said there is concernly not a plan b. house passed usa freedom act which would put responsibility of storing data on telecommunications companies. senate voted down that legislation and reauthorization of current law. president obama urged congress to get a deal done. >> i would urge folks to just work through, whatever issues can still exist, make sure we don't have on midnight sunday night, this task still undone.

because it is necessary to keep the american people safe and secure. >> the calendar is certainly working against the nsa program as congress is not in session this week. presidential candidate rand paul has pushed for the program to be eliminated all together. he spoke with stuart varney this morning. >> we're fighting against terrorists to protect our liberty, to protect our bill of rights. if we give up the bill of rights in the process what really were we fighting for? >> the senate is scheduled to cut its break a bit short to come back to capitol hill sunday afternoon. that would leave a window of getting a deal done to just hours. dave, liz. liz: always comes down to the wire. blake burman. david: there may not be athletes offer pop singers on this list but they are the rock stars of wall street. we're talking about the country's highest paid ceos. here are the top five according to the associated press and research firm. the top paid chief executive heads the discovery channel.

he made whopping $156.1 million in 2014. this is 368% year-over-year increase. occupying the second spot, les moonves, ceo of cbs. moonves brought in 54.4 million. viacom's phillipe diamond. making him the third highest on the list. media execs swept top five spots with bob iger of disney and marissa mayer of yahoo! rounding out last two positions. >> nothing wrong with doing well, right? goldman sachs strategist saying that you should expect no returns from the market? should we listen to goldman or has its reputation taken a few hits this year? >> cofounder of sun microsystems, one of the pioneers of high-tech getting into the social media world. could an old tech icon compete in the new tech world? we'll ask him straight ahead. part adventure.

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david: time for a look at today's market drivers. stocks sinking following a mixed bag of economic data. it was the biggest drop for the dow since april 30th. the biggest decline for the s&p and nasdaq since may fifth. all 10 s&p sectors lowered. sales of new homes rebounded in april signs that the housing market may be slowly warming up. to seasonably adjusted annual rate. s&p case-shiller home price index up 4.1% compared to a year ago. liz? liz: coming up with our panel it was a very slow memorial day weekend at the box office. it was the holiday's worst since 2001. is this a result of bad flicks that were out or consumers are changing their habits and going to something like netflix?

new tackle football league for little girls. is this an exciting, tackle football is it exciting or unsafe? first goldman sachs chief equity strategist is forecasting no price gain for s&p 500 over the next 12 months. but goldman has been wrong before so should you believe them now? we bring in our panel. steven lieb, and bob rice, tangent management capital partner and fox business contributor. do you believe david kaufman of goldman sachs? he is very smart guy. steven lieb, you go with this flat? nothing better than this? >> liz, you just can't talk about the market. it is a number. the point is talk about earnings. what are you expecting for earnings and what do you expect for multiples? i read his article. his articles is that multiples are way extended. liz: price-to-earnings ratios? >> price to earnings ratios are way extended.

they're high but not higher than they were at the beginning of the bull market at the end of 2002. in fact they're lower than they were then. liz: they are at 19 or 20? >> they're at 18.6. then they were 19. then they were 19. that was beginning after bull market that saw the market double in four years. really you can't say, if the world picks up growth, et cetera, it will not come to pass. liz: bob, wrong calls by fold man in the past year, there have been a couple doozies not by david kostin. goldman said oil from january 2014 could hit $150 a barrel. we know that didn't happen. called for oil prices to remain low and they did that earlier this year in 2015. what happened? they went up because i believe oil was in the high 40s when they made the call. we're more than 58 now. they also predicted tumbling gasoline prices. a lot of people did though. they were unambiguously did and

would increase an unleash a wave of spending unseen since the lehman collapse. do you give these guys a pass on the bad calls and david kostin is -- >> i never give goldman sachs a pass on anything. but i have to tell you, history is on this guy's side. reality that trailing price to earnings ratios are very, very high right now. when you have this combination of trailing p-e ratios at this level and interest rates where they are right now, the normal average expected return going all the way back in history is only 2.3% per year. that is the lowest number since 1900. liz: well, to be fair he said for the next 12 months but i would say jeff saut said this year we will end up between nine and 11%. he is at raymond james. he was dead right last year. let me go to hollywood. hollywood had a weekend to forget. recorded worst holiday weekend

since 2001. sign of bad flicks or consumers changing their habits going to alternatives that are less expensive? i have to say, bob, i went to see "tomorrowland." it didn't make a lot of money. cost 180 million. made like 47 or something. i wasn't in love wit. give me a better movie. >> batman 22 is coming out soon. you might want to check that one out. i think real problem is that the art of long form story telling which used to belong solely to movie is moving over. i haven't seen a movie better than "homeland" or "mad men" in a long time. not the technology. where are the better stories being told. liz: "the avengers" has done very well. it has been out a couple of weeks. still number four. "pitch perfect 2" probably didn't cost nearly that much. it is doing well. i'm wondering. we're waiting on "jurassic park," part quadruple, whatever and the terminator.

and later "star wars" in december. >> i'm sure another avenger move and "ant man." liz, i made a terrible mistake, and went to one of the franchises, mad max. i didn't understand a thing. it had best reviews. doing terrific in the box office. it was a franchise and i didn't understand a thing. my wife wouldn't speak to me after i got out of it. it was basically, what it is saying that people are sitting around, they do want long story form. whether it be "mad men" or "mad max"? liz: how about something original? i was spending most of my weekend when i wasn't at "tomorrowland," watching "saving private ryan" on amc, for 20th time, one of my favorite movies. watching "veep," one of my favorite tv shows. there are other alternatives. move on to quite an alternative here, a new tackle football

league launching for little girls in utah. this is the first of its kind in u.s. real contact. this is idea eventually lead to girls growing up to women football players to get paid or is it simply unsafe? bob, what do you think? >> i don't think it is unsafe. i have a luxury saying i coached youth sports for years. liz: you're kidding? >> yeah. liz: girls too. >> lots of girls and boys teams. girls were lot better athletes. before you get to high school, football is not really dangerous. people don't have power and strength to hurt you. liz: look at little girls. the idea came from a dad who showed on youtube his own little daughter in utah outrunning boys. >> absolutely. liz: give them a shot. >> absolutely. if they can do it and want to do it, let them do it for sure. >> i totally agree with bob. i think basically boosts mor i mean, girls obviously have a,

they're still issue in this society when it comes to boys things like math, like sports. girls get short-shrift. this basically, i think, evens the playing field. no pun intended. also, if the parents are willing to do it, it is up to them. it is the parents choice. if people are going to pay little girls do it, by buying hotdogs, things like that, i don't see anything wrong. liz: big deal. they have a lot of padding. israelis let women into combat. >> they require it. they require it. liz: it is required. great to have all of you on very disparate topics. bob and steve. thank you. david: from old tech to new tech how one of silicon valley's most prominent executives, is making transition. we'll talk to scott mcneilly, former sun microsystems chairman. amtrak is making changes to the

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liz: as investigators work together to piece together what led to the deadly amtrak rail derailment the company is taking new steps to try to prevent similar tragedy happening in the

future. amtrak will install video cameras inside of the locomotives to improve safety and monitor engineer performance. inward facing cameras will be installed in amtrak es fleet running up and down the northeast corridor and should happen by the end of nist fifth. david? -- 2015. david: sun microsystems was first to monetize the internet with servers and software. sun's former chairman is going from old tech to new tech with a company start the out as social media but becoming something else. how do they handle the challenge of old tech? former sun microsystems steve mcnally. scott, thank you very much for being here. what does wayan do? >> so computers are old tech, huh? david: in the realm, in the whole realm of things, you know what i'm saying. >> i'm feeling old. anyhow, what wayan does, what we're trying to do is take

advantage of social media, user generated content to make it valuable. there are two things you can do on the internet. you can create content that people watch stories and entertainment. the other thing that happens on the internet people are trying to match buyers with sellers through advertising models. people, 92% of the people trust recommendations from people they know. and, 70 plus percent of people trust and believe in, think it is credible of user generated social media content. we're taking that crowd noise called social media, and we allow to go in and search. we ingest 5500 tweets on facebook an instagram posts a second. tag them up and down just like google does that with wet pages. we allow you to search and listen stethoscope i cannily to a specific conversation around a brand. we allow to you display that inside of it. v, inside of television commercial.

in venue on big screens with maybe and web. david: if i could just put it in a nutshell, scott, you're using your background and expertise with software and java to find a way to market all this data, correct? >> i grew up, my dad was group vice president of north american marketing for american motorcars company and i grew up in the marketing and sales world. you could never tell whether advertising really worked. with online digital you're taking advertising content that you have and adding credibility. i like to say social persuade. it is very persuasive medium. putting that together with your advertising story makes it a very credible and persuasive argument. so we're getting very good at bringing right social media conversations to the advertising, point of sale or the in venue event on air. and it is a very, very powerful and persuasive conversation. earned as well as owned content. david: now, scott, we were joking about old and new tech in

the beginning but i'm wondering is there a divide between the old tech or folks who relatively speaking are old tech compared to the social media folks? >> i think there is a divide between people who are inventing, sounds a little al gorish, sun was definitely part of cofounders an enablers -- david: no, no. you were one of the cofounders. al gore made it up. you really were. go ahead. >> well, i read but i lost my email tapes. they're there somewhere. we'll find them. the whole concept there is two types. people who create and there are still lots of great inventions to make the network better if the government will stay out of the regulating the internet it will continue to boom and grow. there is a group who use it that create content and consume content. the internet made everybody a content creator and publisher and. we're trying to fund the model

to make advertising more effective so it continues to stay free. you don't get spam. rather you get advertising and social media content relevant to the conversations you care about. david: since you brought up emails, i got to ask you if you had hillary clinton's server, after all for those who forgotten, sun microsystems made servers, if you had the server could you find any emails on it or has it been too wiped? >> first of all, it is crazy to think that, two great comments. you have no privacy, get over it. and sickly, every digital entry you make on to the internet is like a digital tattoo. it never goes away. no way these emails went away accidentally. it just doesn't happen anymore. somebody had to be absolutely malicious to hide them. they should all come out at some point, somewhere, somehow it people really want them to. that is the scary thing about big government, it tends to get very big and corrupt.

david: i have to ask you one more question because you're not the most fame must member of the mcneilly family. >> stop it. david: your son is one of the top comers. -- golfers. >> got in "wall street journal" on my own. david: his maverick staying in governor or join you in business? >> you know, that is a tough question. should he be entertainer or should he be a capitalist. i'm a inaing capitalist. he is pretty darn good at golf. maybe he combines the two in a positive way. david: if anybody can find a way to combine them, you can. scott mcnealy. congratulations on the new venture. thanks so much for joining us. appreciate it. >> thank you. david: always good to see you. liz? liz: scott is such a giant. historic to have him on. quenching kid's thirst without all the sugar and chemicals. look at the shape. will this appeal to kids more? taking on capri sun and kool-aid

wrapping up sales, how he plans to have his company become the new king of kids drinks. that's next. paying more for quality wood. lumber prices near a three-year low but a housing rebound could change that and zoo an. -- soon. we take you inside after custom wood shop. with answers. ♪ ♪ ♪ the ones with the guts to stand apart - join a league all their own. ♪

david: charter communications agreed to merge with time warner cable in historic multibillion-dollar cash and stock deal. liz: if history repeats itself the deal will not go through without interference with washington. jo ling kent with the latest details. >> liz, dave. there are mixed messages from the sec. seems on one hand that the 55 billion-dollars acquisition because tom wheeler reportedly directly called both ceos personally that the deal would not necessarily be rejected. analysts said jeffries agrees. the situation could be easier for both companies. quote, we believe this transaction will likely gain regulatory approval. the combined company is still smaller than comcast and there are no vertical integration issues. the new charter would total 23 million customers, second to

comcast's 27 million. but on the other hand the ftc came out that it will applay the public interest test to see how american consumers would ben if the deal were to approve. this analyst is bullish on the deal. >> all in all we think consumers could also benefit from much bigger scale, more advanced services. much more leverage and programing costs. ultimately that could be a win-win situation. >> now the new charter hopes the deal will be approved by the end of this year. time warner cable was up all day long. it closed up 7% today, at an all-time high. dave? >> jo ling kent. liz? liz: the business of quenching kids thirst but in healthy way. the whole business, the whole industry is a 2 billion-dollar one. one company is making a big splash. that is not easy to do in very crowded field. aquaball. not only in a very unique

package but has no sugar and no calories. it is seeing drink sales surge. parent and ceo of true drink is with me. recipe for your success. i can't tell whether people love it because of the ball shape which is so different or the taste. has to be a little bit of both, right? >> you have to market to both. you have bottle and packaging for the child. you have the great flavor and health benefits for the parent who buys it for the family. liz: no calories, no sugar. how does it get its sweet taste no we take oil from the skin of the fruit, combine that with the leave for sweetness and making one of the best tasting on the market. liz: how many flavor. >> we have four today and 11 behind the stage coming out. we're excited about the four that we have. liz: you have fruit punch. what are the other ones? >> we have gripe, berry and citrus punch. liz: is that spidey and "the

hulk"? how did you get that? that is not easy. >> it is not only nutritious but collectionable. every time new comes out, every time a new movie comes out we update the labels. >> you have a deal with marvel and dis? >> we do. liz: how hard was that? you're not exactly coca-cola. >> think of small company asking disney to participate with you. liz: how did you get into the door? >> we told them they will be healthiest product they will see all week. we brought in the packaging. showed them the formula and they love it. we were able to work with them on design and development of brand. liz: you take on big challenges walking in the door, worming your way in the door on disney. how do you get your way on the shelves with big names like costco and target? that is competitive, right? >> it is true. one thing that really helped us, consumers have been looking for this product for years. they had capri sun and kool-aid

and other sugary drinks as alternative. they have modded away. they're looking for healthier options. when consumer demand it -- liz: how much does it cost? >> single bottle is dollar. club store like sam's club at 50 cents a unit. we made it affordable. to be able to hydrate their families not spending a lot of money. liz: when my children were young, only thing that were portable, juice boxes and they wanted capri sun. i kept looking at contents. it is a little sugary. a lot going on. even vitamin water has a lot of sugar in it. >> this isn't a trend. this isn't a fad. this will be one of the biggest health related issues we see in the next 15 years in the u.s. that is childhood obesity and juvenile diabetes. liz: great points. >> all these products have a lot of sugar in it. we're trying to be solution. liz: whole foods, that is sort of holy grail. >> we're working our way into natural foods. we wanted to start making it available to everybody. if you're in the middle. country or the coast you can

find our product wherever you shop. liz: i am drinking fruit punch. >> that is berry flavor. you can taste a little bit of blueberries. liz: berry frost. >> yeah. liz: berry frost, berry good. >> good. liz: thank you. good luck. we like people that think outside of the box or the ball. >> i appreciate you guys showing the product. liz: come back. we love entrepreneurs like this. lance leonard. david. aquaball. david: getting in with disney is no small feat. is your tax information at risk of being compromised? latest on data accessed by thieves. lumber prices rebound from a three-year low. jeff flock will tell us what can keep the rally going. jeff? >> oh, baby. take a look at this. that is a giant piece of white oak. when we come back, that gets sawed up into your floor or trim or some piece of your house. because housing is come back in a big way. stay tuned.

>> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, gm facing criminal charges over faulty ignition switches by hiding critical safety information from consumers. we'll have all the latest details. this is one of the big stories coming up on "the willis report" in just a few minutes. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. people approached tproblems the way same. always start at the starting. and questions the same asking. but that only resulted in improvements small. so we've got some ideas new.

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liz: just two weeks ago lumber

numbers dropped to a three-year low. but home construction rose. two competing numbers. david: numbers came out today which could translate into big boost for lumber prices. jeff flock at a saw mill with dougan wood products in leland, illinois, right, jeff? >> you got it. look at that. that is the way it starts. that is the lumber that you buy at home depot starts out. that is a piece of white oak. dave dugan operating a big saw, 56-inch saw blade, pretty happy about the numbers. look at lumber futures up again today on positive housing news. prices are up for housing about 8% in april. and, new home sales up about 7%. a lot of good news there. dave, you know, when housing goes well, lumber business goes well, right? because 40% of the nation's lumber used in housing construction? >> yes.

the hardwood lumbers have come back. the housing helped tremendously keep things going. >> i was going to say, that actually there, though, this piece of white oak, run it through again. i'm just fascinated seeing how this works. this piece of white oak here, is actually he says, not a favored board. that will become decking in a big trailer, one of those, 18 wheeler trailers. although it kind of looks kind of cool to me. i would like to have that as a fireplace mantle or something. isn't that cool the way that looks? lumber on the way back after three years down. i leave you with a chart of home prices and consumer confidence. good news today, and when consumer feels beside, you see housing construction and new home construction that rises all boats. dave is in the business since the '70s. that is his son charlie in the

business, six years of doubt in iraq and afghanistan, u.s. marines. back home at work. thanks to him. david: semper fi, my friend. jeff flock, thanks a lot. liz: we want to update breaking news. irs released a statement that thieves accessed more than 100,000 accounts. they accessed get transcript to get info, social security number, date of birth, tax filing status, street addresses. irs said thieves sar targeted system from february to mid-may. they have have 200,000 attempts to access data. they will notify taxpayers about the incident. david: wow. we alerted you to this before we got more updates. following earnings beat, shares of tivo are up more than 5% in after-hours trading. a lot of people counted tivo out with all the new entrees into

that market. not so. the company adding 121,000 subscriptions. ended quarter with 5.8 million. up 27% from a year ago. liz: not bad. thanks so much for joining us. "the willis report" is next. david: we'll see you tomorrow. gerri: hello, everybody, i'm gerri willis and this is "the willis report," the show where consumers are our business. tonight, dozens of people still missing after a massive storm leaves record flooding in a small town in texas. we'll hear from a homeowner who has seen the destruction first-hand. and is someone at gm going to jail? reports criminal charges may be filed bense the auto giant allegedly covering up problems with ignition switches as the death toll rises. another move to take control of time warner. will this deal happen? will you have to pay more as a result? taco bell promising no more artificial ingredients or colors. so what is left?