fire crewst work at lockheed martin. that's right next to moffett >>> breaking news in sunnyvale this morning. fire crews are at work at lockheed martin next to moffett field hangar three. it's not clear exactly what the emergency is. it's an active scene with firefighters. but there is no fire or smoke to be seen. lockheed martin is one of the largest defense contractors in the world. >>> run! [ laughter ] >> i don't recommend this. yup. that's a man talking to an elephant in a national park overseas. the off-duty guide was drinking. when his employer a hotel chain dedicated to wildlife conservation saw the video, they were not happy. needless to say this man is now unemployed. [ laughter ] >> i would think so. >>> a teenager woke up to the sound of her alarm clock buzzing. she turned it off and then something bit her. it was a boa constrictor in her bedroom. her family tells christin ayers they have no idea how the snake slithered into the apartment up in napa. >> reporter: emlyn ojeda was barely awake. >> once i reach

. >>> we are live at lockheed martin. >>> coming up, we have new video and new information for mckayla lynch and her teachers gave us information with hopes of finding her. >>> and plus the big day has finally arrived, we will decide the faith of the sacramento, it is all ahead on the ktvu channel 2 morning news. this is ktvu channel 2 morning news. >>> good morning, thank you for joining us, it is may 15th, i am pam cook. >> and i am dave clark, steve is right there, are you feeling breezy today? >> as a matter of fact i am. >> you two kind of match today. >> pam looks better. >> well the memo came out about the tie. >> you might want to take note and there will be an increase in higher clouds, cooler 60s and 70s, here is sal. >>> we have an off romp plaza and not only is there a big police presence but the ramp is shut down for this operation. mooching to the golden gate bridge, this traffic does -- moving to the golden gate bridge, this traffic does look good. >>> we have new information about the lockheed martin campus in sunny veil. right now a reported fire and janine de la vega

>> the dangerous situation at lockheed martin is under control. that is where firefighters responded to a two-alarm blaze in this building after 3:00 a.m. the fire is now out and sunnyvale fire department says this was an electrical fire centered to a work space area inside building 150 on the west side of the complex. according to the sign in front it is where research is done on ballistic missile defense systems and airborne lasers. that prompted firefighters to approach with a lot of caution. >> there are certain buildings that carry hazardous material we would have a greater risk working but this was a building that was office space so we did not have the concerns. >> the f.b.i.s quickly realized there was nothing hazardous or dangerous inside mostly office space. lockheed martin is one of the largest defense and aerospace directors and the complex is huge, 100 acres. it is high security, surrounded by a lot of barbed wire on all sides and a lot of guards, as well. we hope to speak to someone from lockheed martin in the hour. >> cornell, thank

>> very serious situation at lockheed martin under criminal. firefighters responded to a two alarm place just after 3:00 a.m. and a lot of the file fires have moved to the back side of the facility which is not visible. firefighters say this was an electrical fire which was centered to a work space area in a building only identified as building 150 on the west side of the complex but according to the sign in front it is where research is done on ballistic missile defense systems and airborne lasers. the sign prompted firefighters to approach this building with a lot of caution this morning. >> we had a swing her activated alarm and we responded. we confronted heavy smoke conditions at the front door. we moved into the center of the building and located an electrical fire which we extinguished. now we currently pushing the smoke out of the building and doing damage control. >> the interview done with the captain and this is a secure facility, this complex is huge, according to sunnyvale fire department it is 100 acres and lockheed martin is one

listen, i like lockheed martin, too.sted a 29 cents earnings beat on a report five weeks ago. what a quarter. while i am concerned about higher yielding stocks in general, one that's cheap like lockheed martin, it doesn't bother me, northrop grumman is better. i like boeing. it has a big offset. >> the house of pain. >> no. >> house of pleasure. >> especially with the orders for the 787s taking off here. the ceo is a great man. the war in afghanistan is winding down. i'd be more cautious about the smaller players, the textrons. they are less diversified, more important, they have less political clout than the big boys do. the bottom line is this. this run in the defense stocks as improbable as it seems, the sequester cuts are supposed to cause a lot of pain, haven't happened yet. might not happen at all. i think northrop grumman with its gigantic buyback are worth owning right here even if washington can't get its act together and pass a budget that trumps the sequester. it's incredible. this is the kind of power that i

contractors' building on lockheed martin way.hters needed a map to pinpoint the building because the building is so large. >> it took a while because the building is a large-sized building. when we got to it, we were able to extinguish it rapidly. >> they say the fire broke out in a cubicle and that a handful of employees will need to relocate for a few days because of smoke and water damage. the exact cause of the fire is still under investigation. >>> san francisco has reportedly lost a 7.8 million grant to buy a new fire boat. "the chronicle" reports a grant was lined up in 2009 to build the city's first new fire boat in 50 years. the feds signed off the money in january of 2011 and gave the city two and a half years to design and build the boat. but the city ran into a number of problems with design firms and will not meet the deadline at the end of next month. fire officials say they plan to apply for another grant. >>> well, the bay area cooldown is here. the weather pattern changing. by this time tomorrow, we could be meas

. >> firefighters battling a major blaze had the lockheed martin space facility.ll bernard is at the scene with more information. >> this is quite a large response to the fire at the sprawling lockheed martin facility in sunnyvale. at least five engines from the sunnyvale fire department are on the scene. this was a two-alarm fire that came in 3:00 a.m. today. the fire centered to building 150. according to a sign that is where a strategic missile defense systems and airborne lasers are researched. a large response to this fire. there were employees at the time of the fire that were evacuated and standing around the parking lot. this is a secure government facility it has been difficult getting any information. we are waiting for a p.i.o. from the fire department, police department or someone from the lockheed martin organization to speak to us. it is the nation's largest missile defense contractor and they also are involved in aerospace research, as well. the fire was centered to this building. we don't know how many people work in here but firefighters continuin

south bay fire crews race to the campus of the latest defense contractor lockheed martin. "mornings on 2" starts now. >>> welcome to "mornings on 2." i'm dave clark. >> good morning. i'm tori campbell. it's wednesday, may 15th. >>> developing news in redwood city where two people were hurt in an apartment fire. it's happening on oakside avenue across the street from fair oaks elementary. ktvu's brian flores is there live with where the fire started and how firefighters are knocking it down right now. good morning, brian. >> reporter: good morning, tori. we're on second avenue very near oakside and fair oaks. we're actually in the backyard of a family pretty close to the fire. take a look. as you can see, redwood city fire department battling this fire pretty aggressively. let's take a better view of the fire. i'm with my photographer, paul. he's gonna walk to the back. this is probably the best view that you will probably see. it started at 5:15 this morning. crews aggressively attacking it, battling the smoke still popping up here. let's go to video from chopper 2. you ca

we are near the lockheed martin campus, what is the latest? >> well, we just got here five minutes ago and we are blocked by this chain linked fence and you can see a bunch of fire engines and we don't see any smoke out here but we are trying to get information from the fire department. they have not gotten back to us. all we know is what we are hearing on the police scansers and firefighters had a hard time locating the source of where they are coming from and when we got here, they are able to locate it and they are thinking it might be some sort of electrical problem, but again, no visible flames, we are quite a ways back from where they are and we can't see what is going on in the building . >>> reporting live ktvu news. >>> an around the clock search for mckayla lynch so far she has not turned up. >> as you said, it is a 24 hour effort and at 8:00 this morning it is expected to ramp up even more with another search of vol materials. this morning we are hearing from mckayla's teachers and in the hopes we understand more about her, the bett

fire crews on the scene at lockheed martin. kpix 5 reporter anne makovec is on the scene with more. >> reporter: they put out the small fire almost immediately when they got here because when you hear of a fire at the lockheed martin facility, it causes a lot of concerns. here is the scene behind me. firefighters say they will be here for about another how. it was an electrical fire in the center of the building that you see there. the building was built it smoke. it too them a while to find the fire, which was in the center of the building. the sprinklers went off so there's a lot of water damage right now. water and smoke damage seems to be really the extent of it. in fact, they believe the building will be able to be worked out of a little bit later on today. but again, lockheed martin, they do a lot of work for the department of defense. >> there are certain buildings that carry hazardous materials things like that, that we would have a greater risk to us. but this happened to be a building that was office spaces, so we did

this one broke out at about 4:00 at the lockheed martin facility in sunnyvale. we're hearing that it broke out in the space facilities. >>> more breaking news to tell you about. this one in south san francisco where a train unfortunately has hit a person on the caltrain track there. for more details on this, let's check in with mike inouye. he's got the latest. >> yes, this is never good news for the pedestrian. we just got confirmation from caltrain that a person has been killed as a result of this crash. the investigation going on at the scene and that's why trains are halted just north of san bruno station. i'm showing you the golden gate bridge. traffic is moving smoothly from the north bay. if you're heading south along the peninsula you cannot take caltrain all the way down because of that stoppage. they're advising folks to take the millbrae and b.a.r.t. station. b.a.r.t. is honoring those caltrain tickets. allowing to you transfer from b.a.r.t. to caltrain, south of the scene of the crashing and continue down the peninsula for that service. and northboun

. >> in the south bay firefighters are battling a bay at the lockheed martin space systems facility. >> flowers and tears for a young life cut short and what we are lending of a little girl killed >> abc7 news starts right now with live breaking news the. >> good morning, at 5:00, the breaking news in an important location that gave firefighters caution. >> in sunnyvale firefighters are battling a two alarm blaze in a plant run by the biggest defense contractors in the world. abc7 news reporter cornell bernard is at the lockheed martin space systems. >> firefighters responded just after 3:00 a.m. we are told this fire is out. sunnyvale fire department has about seven engines on the

lockheed martin, boeing with substantial defense biz. 31% since the beginning of 2013. of that 787 thing. what the heck is going on here? these companies are all highly dependent on spending from the u.s. government. [ music playing ] pretty much everybody in the world of politic, both democrats and republicans told us the sequestration would mean huge cuts in the defense budget? am i missing something? when the sequester became a reality, it had $487 billion, that's an 8% deduction from previous budgetsment that's over a ten-year period. we're talking nearly a travel a trillion with a t, dollars taken away. that's why so many sold the defense stocks in november when the elections began to say to the fiscal cliff was a serious issue. they were terrified the politicians would allow the cuts and sequester to happen, unbelievable. it turns out, their fears came true. sequestration went into effect four months ago. the worst happened, yet the defense stocks have been roaring. this is a fabulous bull mark. so we need to ask ours, how is that possible in more important, can i

. >>> we're following a developing story on another fire in sunnyvale this morning at the lockheed martin facility. the fire was in an office area. there was smoke damage and water with sprinklers causing some water damage. there was no hazmat problem and no injuries reported. the fire is still under investigation. and crews are mopping up. >>> tragedy for a san jose family. a young girl hit and killed on the way home from school. her name was aileen quiroz. she was just 6 years old. it happened on bluefield drive in south san jose not far from the parkview elementary school. kpix 5 reporter anne makovec is in san jose. the girl i guess was almost home when she got hit. >> reporter: that's right. we are right now about 50 yards from parkview elementary school. she was walking home with her aunt and now this is where a memorial has been growing. the candles have been burning all night long. this is the midway point between the school and the girl's home which is about 50 yards away, really three doors from where the 6-year-old girl died. a suv hit the aunt maria quiroz and her two nieces a

. >>> we continue out of sunny veil after crews are cleaning up at the lockheed martin campus. a sprinkler accurated -- activated the alarm and they encountered heavy smoke coming from one of the office building and they say the fire was electrical in a cubical and they are involved in making weapons for the defense department and because of that situation, it could have been a lot worse. >> there are certain buildings where we would have a greater risk to us so we did not have these concerns today. >> employees had to be evacuated from the building but no major damage and no injuries were reported. >>> new information about mikaela lynch, the missing nine- year-old who disappeared from clear lake county. her teachers are telling us more about her so we can continue our search to find her. >> reporter: the nine-year-old is autistic and nonverbal so overnight her teachers sat down with ktvu channel 2 morning news to give us insight in how searchers should approacher. they say singing her name would be more affective than shouting it and that will help researchers find her. >> al

. >>> new this morning australia is about to place an order for up to 100 lockheed martin f-35 seattleighter jets and attack planes. >>> only 30% of u.s. workers are full gentlemen engaged in their job. 18% call themselves actively disengaged while 52% are not engaged at all. i consider myself engaged. >>> big beer companies are reporting it's been a rough year. anheuser busch joined several others reporting first quarter sales slumped. >>> up to $100 for carry on bags. inflight coffee and soda will cost two bucks on frontier. >>> how much does it cost a family of four. $146 to $289 a week. it depends how thrifty you are. >>> jc penney apologizing for this ad. there's complaints an facebook that the ad is aimed only at young thin model types. >>> it's being called the most racist commercial in history. we'll show it to you coming up and let you decide. that's coming up next. . >>> pepsi is under fire for a highly controversial mountain dew ad that one academic said was the most racist commercial in history. the ad created by rapper depicts a battered white woman facing a police lineup

it was a building on lockheed martin way. firefighters say they actually had to use maps in their response to the alarms because of the size of the building. >> it took a while to find the seat of the fire, because the building is a large-sized building and it was toward the center of the building. but when we got to it, we were able to extinguish it rapidly. >> police say the fire broke out in a cubicle. a handful of employees will have to relocate for a few days. the exact cause of the fire is under investigation. >>> google is diving into music streaming. that was the big news today at the kickoff of google's six annual conference for software developers in san francisco. the music service will allow android users to listen to unlimited songs for about $10 a month. google also unveiled other new services. >>> a jury this afternoon found jodi arias is eligible for the death penalty for the stabbing death of her former boyfriend. she was convicted in arizona last week of killing travis alexander. earlier today, some dramatic

that is marilyn from lockheed martin. come on the show. i know you are having a great job.heed martin, the defense company, united health not as good as humana. fofrd, the stocks can go to 15. and i think gm, by the way, can break off. cmf energies is my absolute facilities. adobe is a defense company and automotive company and that, freddie, has got gainf. i like get let's go to john in california, please. john. >> caller: hey, jim, boo-yah, from the sacramento valley. >> sacramento valley, i parked my car and lived. 10th and p. is it still a nice neighborhood? >> caller: okay. how about cbs, isis pharmaceutical, qualcomm and nike. >> wow, these are some of the more creative portfolios out there. okay, cbs, k-mart, good this morning. nike is breaking out. it has a technology company these days. isis pharmaceutical. we make that a spec. qualcomm disappointing quarter, is it okay. we got a tech, a spec, an industrial, let's call it an apparel company and a drug store campaign and that -- a dug store chain and that is perfect. mad mad is back after the break. humans. we are b

. >> abc7 news was at a fire at lockheed martin facility in sunnyvale. an electrical fire started if a building used to research ballistic missiles and defense lasers. the fire was not hazardous and was contained to mostly office space. >> parents and neighbors of a san jose school demand safety improvements on a street they have long deemed dangerous. a little girl was walking and was hit and killed by a vehicle. abc7 news reporter cornell bernard is at parkside elementary school. >> it has been a tough morning for parents and teachers at park view elementary a day after a five-year-old girl was struck and killed here on bluefield drive while walking home with her relatives. people have been bringing flowers to the spot of the accident and police begin the investigation. >> extra crossing guards are on duty and there are signs to urge the drivers to slow. a memorial is growing across the street for the five-year-old preschooler, oscar aileen quiro, struck by a car struck by a car. >> it could have been anyone's child. >> today, this mother drove the kid

and lockheed martin, lnt. >> wow.good portfolio. [ buzzer ] lockheed martin, come on the show, you know i'm begging you. you're doing a great job. not as good as humana, but still pretty good. ford is a breakout. i think the stock can go to 15%. i think gm can break up to the upside. cms energy is my favorite utility. adobe an okay company. tech, health care, automotive company, that, freddie, has got game. i like that. let's go to john in california, please. john in. >> caller: hey, jim, boo-yah from sacramento valley. >> sacramento, tenth and "p" where i parked my car and lived. >> it was a nice neighborhood. still okay? >> caller: how about isis pharmaceutical, qualcomm, allison transmission, and nike? >> wow, man, these are some of the more creative portfolios out there. nike, the stock is breaking out and absolutely has a tech -- i'm calling it a technology company these days. okay. an industrial. isis pharmaceutical. qualcomm, disappointing quarter. probably at 61% is okay. a tech, a spec, an industrial, and a d

fire to tell you about here, sprinklers being credited with putting out an early morning fire at lockheed martin near moffett field. this broke out at 4:00 this morning at the facility in sunnyvale. we're hearing the electrical fire was in building 150, the space systems building. at this hour, no word on any damage or injuries and no hazardous materials were apparently involved in this one. that is very good news. >>> right now take you live outside in san jose. it looks nice, maybe mildly clear. over the 24 hours, that will change heavily. >> meteorologist christina loren joins us with rain in the forecast for the middle of may. >> those changes already taking place in san francisco, marla and jon, taking a live look here. old glory getting quite a bit of pickup in the camera, knocked around, gusty winds in the window. strong winds head throughout the day today. that will continue to 5:00 p.m. you can see our booeys. even though on-shore flow we have fire dangerous to be concerned about in the bay area. temperatures are pretty chilly compared to this time yesterday. 5 degrees cooler just about

. >>> australia is about to place an order for lockheed martin stealth fighter jets. and a dozen boeing attack planes. >>> new data from pal gallup finds about 30% of u.s. workers are fully engaged in their jobs. 18% call themselves actively engaged. and what happening 52% say they're not engaged. >>> it's been a rough year for suds. this weekend, anheuser-busch joined others to report that first quarter sales have slumped. >>> frontier will charge up to 100 bucks for a carry-on bag for tickets purchased on discount, third-party websites. in-flight coffee and soda will cost $2. >>> how much does it cost to feed a family of four? anywhere from $146 to $289 a week, depending on how thrifty you are. >>> and finally, a mea culpa from jcpenney, for changes made out of its now ousted ceo that drove customers away. there's complaints on facebook that the ad is only aimed at young, thin, model types. >>> it's being called the most racist commercial in history. that's coming up next. ♪ if loving you is wrong ♪ i don't wanna be right [ record scratch ] what?! it's not bad for y

i think lockheed martin is starting to get its mojo back.is at a three-year high here and i think it still has room to run. >> got it. okay, for the seventh trade session, worst losing streak since march of 2009 and we know what happened back then. what will the gold slide mean for the miners? for more, let's bring in lincoln ellis, chief investment officer of the stroo teejic investment group. let's look at the macro picture for gold. is this bubble blown once and for all? >> it's certainly into bear market territory. gld has been significant holding the miners has been twice the pain, so, the bloom is definitely off the rose in the gold market and the gold miners are feeling it, too. >> and for how long, i mean, to what degree do we want to play this, maybe even just for short-term? >> look, i mean, it's a bit of a complicated trade. the gold miners are not just gold miners, they mine other things, too, silver and a lot of the base metals. that started the first bit of that leg down. this second piece, this capitulation piece, which has re

leaving the justice department coming join the private sector it was a corporate attorney part of lockheed martin and the hadron bridgewater associates confirmed komi what replaced them robert muller as head of the f.b.i. became head of the agency just seven days after the september eleventh attacks and washington was wall are to. say whistleblower john kiriakou is speaking out former cia operative best known for blowing the whistle on the cia's use of waterboarding is speaking out from behind bars initially charged under the espionage act karaoke three months into his thirty month sentence having pled guilty to lesser charges and a letter sent to his attorney just a lot of rhetoric which was published with his consent on the blog fire dog lake carry on details experience inside the federal correctional facility in laredo concealed mania. being designated as a public safety threat. describes being moved to serve a sentence in the general population rather than a federal work camp as previously discussed kiriakou went on to say that his reputation has preceded him while in the radio and described

. >>> in sunnyvale an overnight fire did minor damage to the building at lockheed martin.he damage was from smoke and water. nobody was in the building when the electrical fire started. >>> members of the san jose city council unanimously rejected a 5% pay raise that was proposed by a citizens commission. councilmembers mentioned paycuts and layoffs for city workers as they all voted no. >>> traffic and weather for your wednesday coming up right after the break. stay right there. ,,,,,,,, >>> services has resumed -- service has resumed on both directions of the track on the peninsula after an early- morning fatal accident. it happened between san bruno and south san francisco. caltrain is still saying to expect delays in both directions. and heading towards the bay bridge toll plaza now, just updating you quickly on an accident at the maze, all lanes are open but 24 is jammed heading towards the toll plaza. >> we have a few clouds in our skies this morning but winds probably going to be the big story as we'll see some breezy conditions developing and just see it in the tre

boeing and lockheed martin brand new highs today.a panic move through the airlines and airplane makers. when the sequester hilts, just a couple weeks ago and the faa was slammed, worries about smaller airports shutting down the control towers delayed flights, but netjet, never blinged, and the fractional jet ownership company owned by warren buffet is buying hundreds of private jets for the burgeoning business, and we are joined by the ceo who is flying high. is the business recovers, jordan, what do you see now on the fractional jet ownership landscape? >> increasing year over year, particularly in the united states, significant strengths, and it's in part to the fact there's. liz: how is it doing? >> good, in the last couple months, greater success, but a long way to go in europe. liz: which country is the business growing the most quickly? china? >> well, the u.s. is growing the fastest. liz: really? >> uh-huh, and europe has been steady to down, and china's too new to tell. we'll see. liz: do you see the rising upper class chines

osprey, the navy's new combat ship, but perhaps move worrisome is the design breach involving lockheed-martin advance stealth fighter jet. he said there is a chinese red army, and a blue army. >> which consists of their elite cyber group, that are involved in infiltrating and ex fill trading data not just from u.s. governmenn but u.s. companies. >> reporter: china's people liberation army unit 61398 is thought to be launching thousands of attacks daily from one city block according to a consensus report produced by all 16 u.s. intelligence agencies. pentagon spokesman george little tried to reassure american allies, quote, remaintain full confidence in our weapons flat s platforms, the suggestions that there are leaks are incorrect, chinese government balked at the newer accusation. >> we've said many times that cyberattacks are a global technology, since it is technically untraceable it is difficult to find the source and identify the hacker. >> reporter:white house said that issue of cyberattacks will be brought up when president obama meets the chinese president next month in california, l

defense contractors -- and you're talking about companies like lockheed martin, boeing -- what they havetry to reduce their target area in cyberspace, try to reduce the amount of information, you know, blueprints, design plans, other documents that is in cyberspace that can be plucked by the chinese. the technical ways to do that are kind of too technical to really get into right now, but experts tell us these companies are getting better at doing that, reducing their target area in cyberspace. secondly, they say when you sense that you've maybe been compromised, you've got to pounce on that immediately and try to minimize the damage, minimize the impact. but a third component at least one expert told me is that diplomatically the u.s. really has to take this on with chinese officials, sit down with them and say, look, we're partnering with you in many areas, but this kind of behavior has got to stop. and these are the consequences of that behavior. we're told this will almost certainly come up next month when president obama meets with the chinese president xi jinping in california. >>

the spacecraft is being built by lockheed martin in south denver, south of denver. it's a three-axis stabilized spacecraft shown here. for scale, the high gain antenna in the middle is two meters in diameter. the whole spacecraft with the solar panels opened up is about the size of a school bus end to end. the solar panels, the high-gain antenna are fixed, and we communicate with the earth by rotating the whole thing twice a week to point the high gain at the earth. the instruments are either fixed on the spacecraft and, therefore, oriented with respect to the sun, or for those that want to be oriented with respect to the planet, at the bottom we have an articulated payload platform with two-axis gimbleing, and we can orient them to get their proper measurements. the mission starts in six months. what's the date today, the 6th? six months, 12 days and about 2 hours. but the hours may be off. i can't do the crossover from daylight savings time to not. we have a 20-day launch period, november 18th to december 7th. this year we're launching on an atlas 5401 from cape c

this broke out around 4:00 this morning at the lockheed martin facility in sunnyvale. we're hearing this is an electrical fire and it happened in the space systems building. it's been called a two-alarm fire. so far, no word on any damage or injuries. crews were able to put that flame out and all the fire minutes ago. >>> this morning, a san jose neighborhood grieving the loss of a little girl hit and killed while crossing the street. it happened yesterday afternoon on bluefield drive in south san jose not far from parkview elementary school. the family of 6-year-old aileen quiroz said she and her sister and aunt were hit by a lexus suv. her sister and aunt are recovering at the hospital. the driver is said to be cooperating with police and investigators say drug and alcohols do not appear to be a factor. some neighbors say they plan a petition for a speed bump in that area. >>> more than $2.8 million that's what the moraga school district will pay. christen cunnane sued the district say sheg was moing shed by a teacher in 1990s. the school district said she agreed to

lockheed martin starting to trade north of 100 bucks. >> all right.o you guys out there jumping into stocks as the s&p hits fresh records. let's find out from someone who has his finger on the pulse of the mutual world. ted truscott, where he oversees $466 billion. he joins us live from washington, d.c. great to have you with us. thanks for making the time for us. >> thanks, melissa. >> it's amazing, because yesterday we were talking about selling. today we're talking about the possibility of cyclicals leading the market and perhaps rotation out of safety yield plays, like utilities. where do you think we stand in this market? >> look, i boil it down to something quite simple, which is zero% interest rates work. i used to think the market was catching up with earnings. now i think it's zero percent interest rates. don't fight the fed, don't fight the japanese central bank. i think people are being pushed into understanding that low interest rates are here for a while. >> if that's the case, and if things do work out, then what central banks are tellin

companies like caci, lockheed martin, general dynamics, just all the old-fashioned, industrial "we're building ships and submarines"-type corporations quickly moved into the intelligence and information space. >> narrator: the nsa spent billions of dollars on more than 480 private companies. michael hayden led the effort in the days right after 9/11. >> hayden: i did it at nsa, george did it at... at cia. we... we all did it. it was a way to go out there and... and to get these capabilities into the flow infinitely more quickly than you would have been able to do had you gone through the government personnel system. >> narrator: in office parks near the nsa, thousands of private contractors-- many making much more money than federal employees-- help digest data. >> priest: this war was not a war that required a lot of tanks, a lot of fighter jets. it required information. and information flows in a different way and is... is analyzed by machines. >> narrator: exactly how much money the nsa was spending in the years after 9/11 is one of the government's most closely guarded secrets. th

everybody is still chasing the dividends and very often overlooked in the dividend chasing field is lockheed martin5%? >> it's roughly 5%. david: wow! that is huge. they are on the cutting-edge of weaponry of course. one would think they might be hurt by sequester but all that is baked in you say to the stock price? >> i think it is. what you have to think about is where the cuts will happen. we think the worst area to be in is the army area which post-afghanistan will be very difficult. they have very limited exposure to the war. they do have very substantial international exposure to the middle east, missile defense there. that is a growth market. on top of that they have the f-35. the f-35 has a lot of bad headlines but in fact this is the only solution to our fighter aircraft of the future. so what you're going to see, that program will ultimately grow under any circumstances. so they're in the right part of the market. and they like many companies are delivering quite a bit of cash and you're going to see them deploy that to shareholders. >> i'm hearing cash flow and free cash flow. those are

they add lockheed martin. >> that defense group really on fire. but the banks really breaking out as well. brian, let's look at this market here. we're at the highs of the day right about now, just shy of it. and we've got financials and tech in the lead. what does that tell you about this market? >> well, i think they hit the nail on the head when they said, you know, as long as we get the kind of weak economic data and it looks like the qe is going to continue for a little while, i think, you know, it's basically saying that you kind of need to start weighing in on some equities and rotating out of the bond market and really get some risk exposure. >> rick santelli, we mentioned, japan was down 5% last night. it's down 15% in the last week, and the yen continues to rise suddenly. is the japanese central bank losing control of the situation? and could it affect us here? why hasn't it so far, do you think? >> well, i think it hasn't so far, because there is no inclination by the investment community to acknowledge that the emperor has no clothes a

i'd rather be in lockheed martin or northrop grumman. >> at this point knowing the bad news is behindthe dreamliner seems to have now gotten back on track, is there an opportunity to see a ramp up in the stock, you think, or no? >> i mean, i don't think from here. my guess is that that reconciliation is more than price. i would also point out one problem with boeing is that it effectively a bet on emerging markets. because the u.s. market, while it's doing very well, is not where the growth in coming years is going to come from for boeing. it's primarily asia. the only problem with that story, just today, in fact, if you look at emerging market stocks as represented by edm, it hit a five-year low relative to the united states. relative to s&p. so if you are betting on asia, i think that right now you're fighting a powerful trend against you. and boeing really is de facto in many ways an asia bet. >> all right. we'll leave it there. thanks very much, gentlemen. appreciate your time today. see you soon. >>> meantime, precious metals staged a comeback today. sharon? >> they're continuing

committees investigate the white house, they're absolutely silent on hits to military personnel that lockheed martin says will delay their f-35 joint strike fighter and other weapons programs, to say nothing of the social programs you just referred to? absolute silence. absolute silence. >> the reason for that, in my opinion, is the positions that they take on those issues are not positions the american public supports. and, therefore, they try to distract the attention by these tans gentle issues they keep raising. we've had nothing about job creation over the last five months that we've been in congress. and nothing about how we're going to go from the sequester, which everybody, including every republican leader, believes is an irrational process. but unfortunately, a large number of their caucus want to slash government funding no matter what the impact of slashing that funding is. so that it's very, very unfortunate that we are spending so much time and trying to undermine the president of the united states. it's a continuation of the first four years of this administration where it was all opp

since leaving the justice department, he's served as a corporate attorney, first at lockheed martin, later at the hedge fund bridgewater associates. those ties to business may raise questions for some. in a statement last night, republican senator chuck grassley of iowa said: comey is also sure to face confirmation questions about how he would handle leaks of sensitive information. the obama justice department is now under scrutiny for its tough tactics with journalists. comey addressed the subject in a speech in 2007. >> troop movements, search warrants about to be executed, the undercover identify of a covert operative with the c.i.a., some things can't leak. the flip side of that is when they do leak, the government has to do something about it. has to. because we care about the rule of law, we care about some >> woodruff: if he is nominated and confirmed, comey would replace the current f.b.i. director robert mueller, who assumed the agency's top spot just seven days before the september 11th attacks. so, how will comey be received on capitol hill? and what challenges lay ahead f

thought to the best of my ability, based upon the experience i'd had working on the board of lockheed martin, qualcom, a lot of companies, i actedly the same way i acted on those boards. i never thought or even dreamt that there was a criminal conspiracy which had been hatched before i joined the board. >> rose: did anything take place in which either of those two gentlemen we just mentioned ken lay, or jeff skilling, asked for at enron that you had real questions about, and you look back now, and you say what was i thinking? >> no. absolutely not. as a matter of th ft,ugh one my depositions, a lawyer asked me, "mr. savage, you're a man of great experience. you have been on many boards. didn't you recognize jeff skilling was a crook?" what i said is what i'll say here, "notice, i didn't. i never had any experience with a criminal. certainly not on a corporate board. i don't expect to find a criminal who is the c.e.o. of a company." i didn't recognize it. maybe something was there but i didn't recognize it because i had never seen anything like that before. >> rose: when you look back at it,