Transcripts For FBC Markets Now 20130805

Markets now. We get Johnny Mandel on baja see this morning and we are waiting to hear what happens to Alex Rodriguez, we are all over that but of course we started the day at a new alltime high for the dow. Lets check the markets, straight weeks of gains but some losses this morning. Nicole good morning. Absolutely right. We have seen record highs for the dow and the s p, the nasdaq was sitting at 13 year highs but today a mixed market. The nasdaq once again breaking into the green. We had major averages not far off of the unchanged line. Interesting, havent had that clear direction but the trend has been to the upside bit by bit and that is what we continue to see where we had a down day late in the day, stocks broke into the green later in the day. The Dow Jones Industrials are down 40 points, the vix, the fear index is to the upside. The names weighing on the dow today include Energy Shares such as chevron and exxon, that is nothing disney and travelers and the names and coming out with news and earnings. Dagen news alert, 19 u. S. Embassies, predominantly muslim countries will remain closed until at least saturday as the state department continues to stay on guard for potential terror attacks. The threat of al qaeda in yemen and beyond and the threat to our markets at home. Lets bring senior equity strategist at wells fargo and k. T. Mcfarland, lucky to have current studio with me, former Deputy Assistant secretary of defense in a Fox News National security analyst, to you first. Is this the most serious threat we have seen from an al qaeda affiliate since 9 11 . A more serious alert i have seen in my lifetime. There are two things. One is closing the embassys. Business is being done with the United States government in 11 countries. The second thing is a Worldwide Travel alert whe telling americans all over the world avoid transportation hubs, avoid large public places, stay home, power under the bed and not just today or tomorrow, but august. If youre doing it through the end of august they will increase and put it through the end of september. They will go through the dagen do you think any potential terror attack or threat this severe is fully factored into the stock market at this point . This is a big time morning. There must be a lot of good information the government has for they would not be going to the extreme measures and in my mind if we did have a meaningful terrorist attack market would initially react negative, and where occurred in the middle east, that would depend on the initial reaction but the safest bet is it something occurred, if it was meaningful the market would trade down right away. Dagen why do we get overconfident with gains against al qaeda . And the killing of usama bin laden, we focused on usama bin laden for so many years, an important symbol to the u. S. But at the same time al qaeda was discussing the self, a harder to detect what was going on and fight any potential attack . Important to remember when president san diego bin laden is dead, al qaeda is on the road, even secretary john kerry said last week in pakistan al qaeda is finished, maybe al qaedas score isnt what it used to be the the franchises are much more powerful and not staying home and the argument always was there is al qaeda in the Arabian Peninsula but they will just make trouble. Theyre coming to the United States. Dagen look at iraq and other areas. Talking about a spread from the Atlantic Ocean all the way over to pakistan. Theres a great percentage where the energy comes from, were talking about a huge region, the strait of ormuz or the cyanide peninsula, we are talking about western interests throughout the region. Dagen thinking of Oil Producing regions i always think investors are fairly smart and we have been asking the question over and over again in recent weeks why is oil so why is this one of the reasons for the terror event or a disruption of production in these nations. Before the latest bit of information, syria, egypt, a lot going on, the probability of that spreading into that is not zero and we have a slow economy here, we know it is slow globally, we have a lot of supply of oil, the reason we are trading above 105 a barrel is almost exclusively on egypt and syria and what might happen and this place intimate as well but the stock market, the oil market, given is going on and what the government is doing the markets feel the government has a good handle on this and maybe we can get through this without any event. Dagen do you feel that way . Are we as a nation on top of terror strikes overseas or here . We are on top of it but we have american interests in places where there are failed states. I am looking at the Sinai Peninsula where al qaeda is teaming the put the Muslim Brotherhood to address any kind of shipping to the suez canal. Look at the strait of hormuz 01 wellplaced trust fund can take out an oil refinery in saudi arabia. We are talking about so much of the world, so many places where there is the vulnerability. Dagen we value your insight so much. See you as well, thank you so much. Take a look at what you are earning on the ten year treasury, it did jump in the spring, it is not below 2 but it is still an extremely young low yield causing people to reach for more income elsewhere. And income is especially risky. Vanguard principal in the fixedincome group, bob overseas and moneymarket and bond assets, bob, great to see it, joining us from valley forge, pa. That reach for yield, has it made other classes of fixedincome especially risky and overvalued . Seems the market has forgotten about some things that have gone on. For example look at the more troubled countries in europe, italy, spain, portugal, even greece, the yields are trading at almost 12 month lows. Gary is very little growth, theres high Unemployment Rate at 12 and nobodys taking care of any structural reforms. At the same time the emerging markets there were a series of issuers such as the republic of guyana at getting the deal at some point easily so there is this yield. Don dagen what about fixedincome in the United States . Gee worried about high yield and its valuation, talking about europe and emerging market debt and it held up fairly well with that back up in Interest Rates. I suppose that is expected but still overvalued. A lot of it is tied to the equity market and the equity market has done quite strongly. Back couple little bit. It is reasonably near fair value at the moment. Dagen the municipalbond market, bankruptcy of the choice. Is this the long term problem for the United States that isnt getting enough attention . It is definitely getting attention but there has to be some sort of solution. Demographics just dont work. The number of younger workers whether they are supporting government workers or private workers in various Pension Plans and social security, the demographics just dont work. How long are we going to ask people in a 20s and 30s to pay enormous load of taxes to a government Pension Plans . Ultimately this has to go to the Supreme Court to decide whether retroactively these Pension Plans can be revised but that said that has created some attractive values in municipals for example you can buy a 30 year municipalbond that yields 5 . If you are in the top tax bracket and lead the Obamacare Tax pretax field. In california you by triple taxexempt california bond that is 9. 7 . That is equity like returns which are pretty attractive. Dagen really quickly, bob, have you seen outflows in any major way in any of the bond funds . Things have really stabilize quite a bit. And a month or so ago, and moneymarket funds and the blessed aware about the equity markets even though they are at alltime highs. Dagen thanks for being here. I know how busy you are. Always a pleasure, always in sight for. Thanks again. Dagen in the ball the bonds you could be buying, hundred Million Dollars. Power jackpot reaching that level after nobody won saturday, making wednesday the fourth largest in u. S. History. To buy your ticket you have the 1 in 1 seventyfive million chance of winning. Samsung looking for some quality from the white house after the president pull the plug on a ban on some apple products and importation of apple products and export to china to the tune of 13 billion every year. Soybeans. We look at this booming market for investors. New details imminent on the pending suspension of Alex Rodriguez and other Baseball Players tied to a florida clinic, big money on the line for the players and baseball. We were just talking about oil, 105, 06 and change down slightly for that. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. With the bounce dryer bar, my clothes will be fresh out of thdrawer for weeks. And its great when things last a long time. Well. Most things. [ male announcer ] how do you get your bounce . [ woman ] cant regret fresh. Bjorn earns unlimited rewas for his all business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less . Ahh, oh [ garth ] great businesses deserve limited reward heres your wake up call. [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . Dagen americans love their meat. I really said that. Strong demand for chicken and beef sending shares of tyson foods. Nicole neat has been very popular and tyson foods is the largest u. S. Meat processor with forecasts aboveaverage analyst estimates. They came out with a great quarter. You see the stock up 3. 8 hitting new highs, a new record highs, revenue rose 7 , and ultimately they have a lot of demand for chicken and beef so they did so well with that and that offset the weaker demand for pork. It ended up being a win win for tyson foods and the chicken sales rose 11 so in spite of the fact that some people like trying to attack back a little, you see it doing extremely well at raising their outlook. Dagen despite the fact those scientists in london were demonstrating the ground beef they came up with from the stem cells funded by one of googles founders. Thanks, Nicole Petallides at the stock exchange. The white house handling apple on major win with a veto of a patent ruling or patent battle with archrival samsung to be exact. Liz macdonald joins us with her bottom line. Liz samsung is seeing the big step back. They reversed, the white house reversing the International Trade courts decision to bend older products that were imported from china. These are the i phone 3, and 4, they were made in china, imported here. Samsung initially won a ban on the importation, now the white house reversing it, basically u. S. Trade rep saying i decided to disapprove this determination due to the effect on the u. S. Economy and u. S. Consumers so now the question is what was south koreas reaction where stenson is based . Blasting the decision saying this is essentially going to hurt our company. That was a global cant war going on between samsung and apple since 2011 so what we are talking about is older devices applicants still make money off of, dry Profit Margins but apple makes money for example off of the i phone iv so the question is will we see a backlash from other countries that can block and disregard the u. S. Intellectual property rights. Will we see this as an excuse being used by other countries. That will be raised with south koreas reaction. Final point this is only the fifth time since 1916 that the white house overturned a ban at the International Trade court. The white house doesnt like being used to block importation of goods. That is their reaction. Basically blocked importation of goods instead of assessing financial penalties. The white house making a big move for apple. Back to you. Dagen Liz Macdonald with the bottom line. Paying College Athletes for their play. That debate reignited by the latest scandal surrounding Heisman Trophy winner and Justin Bieber wannabe maybe Johnny Mandel, a famed desire Joseph Abboud reunited with his namesake brand after eight years and how he wants to create more jobs in this country. Take a look at world currencies, the dollar today. [ male announcer] surprise youre having triplets. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. 23 minutes past the hour, your fox news minute. The state department is using what it calls an abundance of caution in deciding to close embassies and consulates in 19 cities in the muslim world until the end of the week. Capitol hill lawmakers described the threat that close 22 locations yesterday as the most serious ones since before the 9 11 attack. Britain and france extended the closures of their embassies in yemen as well. A u. S. Military helicopter crashed during a Training Mission that american base on okinawa. According to japans defense minister three crew members ejected from the helicopter and survived. A fourth has been taken to hospital and hundreds of thousands of commuters in the San Francisco bay area have a way to get to work today. Last nights 11thhour order from governor jerry brown called for an investigation into labor contract talks and avert a walkout that would have shut down the transit system. Those are your News Headlines on the fox business network. Dagen soybeans on the minds of traders and farmers as the crop falls to 17 month lows. Jeff flock is back in illinois with more on this story. Jeff lots of money came into this market with that drought and here is why you should watch fox business. Take a look at us in this very field in march of this year, Jim Mccormick wants folks to invest with him. We walked out on the field and we said look at this snow pack out here. I know it is a drought last year but we could have a bumper crop beans, that is what happened. We have plenty of moisture this winter and spring and summer and right now we are standing in a luscious been field. Jeff we are centime month low for beans. Look at the numbers, we have a year chart that shows the wild ride of beans, last year we got almost 18, when did we get to . Just shy of 18 was the high. It was scary for a while but the crop came in half way decent and now as you point out this is going to be an alltime record crop. Beans are made in august and if we continue into next month we are looking at a big crop potential. You told me a lot of your clients are long beans. Koren also, they are short corn. Could anything turn this crop around real quick . Yes. One thing that could affect it would be the range of thought and the heat comes on and that will hurt the beans for the critical pod setting phase or potentially early frost. If you are on wall street dont sellout yet. Plans look great. But 1 00 show i will show you up close and personal all of the pods that are being set out here. This is a goodlooking crop. Dagen soybeans are placed a lot of tobacco that used to be grown where i grew up and i can say firsthand that is the good looking fields of soybeans. May be better looking when he is standing in it but there you go. Jeff wish you were here. Dagen okay. Thank you, jeff flock in mckinley, ill. Moving to one of your other top stories today, and the moment Alex Rodriguez could be suspended from baseball may be this year into next and he stands to lose millions no matter what happens with majorLeague Baseball. The question is whether he will be on the field for the yankees in chicago tonight. And more on the effort to create jobs in this country, joseph. Says the solution is simple, you need to make it here in the usa. We will talk to the famed designers who has been reunited with his namesake brand that mens where house. And more coming up. Ok, i am coming. [ susan ] i hate that the reason were always stopping is because i have to go to the bathroom. And when were sitting in traffic, i worry ill have an accident. Be right back. So today, im finally going to talk to my doctor about Overactive Bladder symptoms. [ female announcer ] know that gotta go feeling . Ask your doctor about prescription tiaz. One toviaz pill a day significantly reduces sudden urges and accidents for 24 hours. If you have certain stomach problems or glaucoma, or cannot empty your bladder, you should not take toviaz. Get emergency medical help right away if your face, lips, roat or tongue swells. Toviaz can cause blurred vision, dizziness, droiness, and dreased sweating. Do not drive, operate machinery or do unsafe tasks until you know how toviaz affects you. The most common side effects are dry mouth and constipation. [ susan ] today, im visiting my son without visiting every single bathroom. [ female announcer ] today, talk to your doctor about toviaz. Folks have suffered from frequent heartburn. Butetetting heartburn and then treating day after day is a thing of the past. Block the acid with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. Zero heartburn. Dagen breaking news. Dallas Federal Reserve president Richard Fisher speaking out about the pullback in any asset purchase program, the one the monthly one done by the fed. Peter barnes is nbc with more on what mr. Fisher said. Reporter thats right. President fisher, an inflation hawk and critic of quantitative easing, says that after fridays jobs report he wants tapering of bond purchases to begin this fall. His comments come after fridays weaker than expected jobs report, which also included an unexpected drop in the Unemployment Rate. In a speech being right now import and Gordon Fisher says with the Unemployment Rate having come down, i would say that the committee is now closer to execution mode, pondering the right time to begin reducing bond purchases assuming there is not an intervening reversal and momentum in coming months. Though fed chairman bernanke has questioned the Unemployment Rate as a good measure of the health of the labor markets, and fisher is not a Voting Member of the fomc this year. He is in their room for the meetings as a nonVoting Member and is not shy but expressing his opinions. In fact, in classic fisher he says in todays speech, at last weeks meeting i suggested that we should urge airlines to make sure make your first move this fall. Also, remarks on the jobs report and tapering from a former vice chair of the fed who is now candidate to succeed ben bernanke. He said, i dont think that the disappointing employment report will deflect the fomc from beginning to reduce its purchases after the september meeting. Taking all win. Digested. We will see how the markets react. Dagen i am not putting my money on him being the successor. I will say that right now. The lady over mr. Summers. My betting ways. Cannot help it. When i clear skies after a European Commission approved approve the proposed merger between the company and American Airlines holding company, amr. Nicole was watching shares. Reporter watching them closely. A couple of stories surrounding u. S. Airways, their optimism on travel demand. The number one story is the east mission moving forward and approving so far moving forward with the merger between u. S. Airways and amr which is the parent of American Airlines. So there were some concerns that one part of it could be somewhat of a monopoly. So in order this is the caveat. The one thing that has to be done is they must give up the slot to over at Heathrow Airport Everything Else seems to be that it will go straight through. On the u. S. Airways passenger traffic, its looking good, up over 6 from july. Dagen thank you, nicole. Espn is reporting a second autograph broker has come forward claiming that texas a m quarterback asked for money to sign autographs. Reporting that the Heisman Trophy winner was paid five figures on for another autograph session, a signing session last year. This is just the latest in a series of offseason incidents for the star football player, making him look like the Justin Bieber of college ball. Senior writer at fox sports. You will be allowed to see him on fox sports one which launches on august 17th. Absolutely. Dagen im psyched. Less talk about johnnie football right now and in. Is this surprising that this would come out and people would be digging through dirt for him given how he has been behaving . It is not surprising that theyre digging through dirt to find this. A little surprising that he would actually go through and do this. You know the rules. First freshman to ever win a Heisman Trophy. But to accept five figures for a couple of autographs, 999 autographs the weekend of the b. C. S National Championship game, clearly a violation of rules. Like you said, his offseason have been tumultuous. The last thing was showing up possibly a little hung over to the passing camp which is hosted by archie, eli, and peyton manning. He is on twitter saying crazy things. Sitting courtside games and rap videos. Dagen who would go to a frat party. The university of texas, thats stupid. It is. And thaas the question. A lot of people like taking him his side. What do you want . These 19, 20, at college, just been handed the world. There is no blueprint as far as how we should navigate these waters. He continues to get in trouble, one thing after another. This is the first one that could actually effective on the field because if he is in violation he might not play all season. Dagen hard to prove. Very hard to prove. What the processor will be is to find an actual paper trail and prove that he was paid. He is not saying a word. Today texas a m practice begins officially. He will not be speaking to the media. These things tend to take some time. One man except that thousand dollars and took them a very long time to prove. Reports are out there and they will be digging. Dagen yet again it ignites the question and debate about whether these players who are bringing in untold millions of dollars should be paid or should be compensated for the money that they are helping to our and the university. That absolutely. We call these kids stupid. Theyre selling his jersey and making millions. For texas a m Prospective Students looking at the university of texas are texas a m, they say, we have the Heisman Trophy winner here. There are a lot of people making a lot of money, including the coaches of of johnny. Why shouldnt he be allowed to take some share of it. Dagen and we were talking about this. You dont think that the fans will side with the players at this point going back to what cam newton went through. Yes. Two years ago canyon went through a similar thing were his father reportedly solicited 180,000 for his son to attend school. Now theres fatigue with the fans. After all of these incidents, whether ohio state, fans are beginning to say, what is going on . Why is the ncaa not paying these kids something . Like we see all the time, these jerseys are sold, faces are all over merchandise. Wire these players not getting some cut . You can say they get a free education. Trust me, the school is making a lot more money unless scholarship theyre paying him. Dagen his problems look like small potatoes compared to what mr. Rodriguez is going to a safe. The decision will come out later this afternoon, not right at noon, according to reports. Use a 1 00 p. M. There are talking 1 00 p. M. Dagen what do you expect . Be suspended, but i expect arod to appeal this. Unless the commissioner of baseball throws down the hammer and says, hey, look, there is a clause in the collective Bargaining Agreement that says this is where the best interest of baseball and i can overrule appeals. I think he will play tonight. His first game back this season, healthy, ready to go. It will be interesting. Dagen he was playing here, yankee fans anecdotally want him gone. A lot of newspapers have that covered. Pretty much go way. Dagen what a great headline. You will be able to see peter among an allstar lineup. Its great to see you. Thank you. We love talking about sports. Take care. Maines warehouse executive has been reunited with his namesake brand, and he plans to help create jobs in the u. S. And cbs if you have Time Warner Cable and the york, l. A. , and other cities youre not watching it. Will it bring those two back to the table . And two guns with the big money showing of the box office. What about the canyon, that lovely Lindsay Lohan song. 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Reporter im lori rothman with your fox business brief. Right now the dow is down with the dallas of of 48 points. The biggest gainer on the s p today is tyson foods. The companys largest Food Processor reported before the bell that profits more than tripled with Strong Demand for chicken and beef with the stocking of 52 week high today. Jet blue going upscale. The normally Discount Airline is adding expensive seats on some of its longer flights which the Company Hopes to price lower than tickets from other airlines. Hot meals and unlimited alcohol. And number two is number one. Universal will take in more than 27 million. It overtook wolverine. That is the latest from the fox business network, giving you the power to prosper. Right now, 7 years of music is being streamed. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 8 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better. Dagen talk about needing a bigger push to make things here in america. Take a look at the statistic. The u. S. Spends over 113 billion every year importing textiles and apparel, that is according to census trade data. Our next guest his company is currently well, he will explain it all. He is about making things here in america. Chief creative director at maines warehouse, and he has just been reunited with his name said brand i think it was an organic decision. The mens wear House Organization is extraordinary with 600 stores. So i think the landscape of our industry is changing. The traditional wholesale Retail Business does not exist the way that it did 20 years ago. Some now by being direct, by taking a great product direct to the consumer you get a better price, better value, better quality. It is really kind of a match made in heaven. And of course, being reunited with the brand that i started in 1987 is a really wonderful thing. Dagen and also, back into your you are also back with the factory. Thats right. Dagen several hundred people. 450 highly skilled workers who are incredible of what they do. Over the last 20 years we have probably manufactured close to up 4 million high quality suits and jackets tailored in america. That is a great legacy for a designer to say. The factory in new bedford. So life has come full circle. Dagen i like the red sox. I like them a lot more than i like the yankees. Everything has come together. It has really been an exciting eight months. Were going to close on a deal very cent. Its a done deal, and its exciting. Dagen does it make sense for mens wearhouse to of one of the vendors, if you will . Normally the company has dealt with outside vendors and did not take one inhouse. A think it is a point of distinction and a competitive edge. We dont look at this as private label. Its a big distinction between that and your own exclusive brand. As a brand its exclusive to mens wearhouse as we go forward, but it will still have the same dna, quality, style, all the things that we do well. Now we can go directly to the consumer through the 600 Retail Stores we have. Dagen and will you offer this suits and clothing and lower prices . Yes. We are vertical. Dagen eliminating the middle right. Thats why im saying the landscape changes between wholesale and retail. Today we can manufacture clothes, on the factory, by extraordinary fabric out of but how to speed to market, the quality, the flexibility, all of those things play into the offering that we give our customers. To me it gives me a chance to have an idea and bring it directly to the consumer, and that is really as a designer what better legacy can you have the sap people believe in what you create and go out and spend money . Dagen this new role and this new situation will let you create. Exactly. Friday will be the dead i go back and have lunch with those 450 people, and im looking for to it dagen that is fantastic. Go red sox. That a girl. Dagen we hate Alex Rodriguez. Get that out early. Dagen my producer is yelling in my year. It was great to see you. Please come back. You look fantastic. Beautifully dressed as always. Two years since s p downgraded our Credit Rating in this country, yet the market is sitting near alltime highs. Joining us now, seaports securities. What gives . It took worries about the Federal Reserve tests and Interest Rates higher. I would say first of all you might want said see someone about your red sox problem. Second of all. I refer the mets. I will not pull for the yankees. They got what they deserve. All remind you. Anyway, the fact is the equity markets are leading indicator, not a lagging indicator of what will happen with the economy. The s p, usually telling you what happened or telling you what will happen. As it is happening. But an Equity Analyst will upgrade the stock when it is already reaching its peak close call whether will downgrade the stock when it is near the bottom. The s p does the same thing. Unfortunately they dont have the liberty of sticking their necks out because it takes a lot of risk. And they want to keep the customers happy. The s p downgraded the United States. The mib data on about the government, but it does not say a lot about the Corporate America which is what were looking at right now. Earnings have been great, and theyre only telling you what will happen in the u. S. Economy to come. Dagen good to see you. Thank you for so much. So cbs is blacked out still on Time Warner Cable. East coast, west coast, and places in between. Besides are not even talking. More on the big money lost on baseball suspension. The latest at the top of the hour. A loser there but a winner some winners here. Any last requests mr. Baldwin . Do you mind grabbing my phone and opening the capital one purchase eraser . Need to redeem some venture miles before my demise. Ok. Its easy to erase any recent travel expense i want. Just pick that flight right there. Mmm hmmm. Give it a few taps, and. Its taken care of. This is pretty easy, and i see it works on hotels too. You bet. Now if you like that, press the red button on top. How did he not see that coming . Whats in your wallet . Dagen so cbs is dark on Time Warner Cable new york, l. A. , and places in between. It could be that way into september as this cable battle between the network and time warner rages on. Dennis joins us with a lot more on this. Reporter we were waiting, which side will blink. Neither side did, and now has been blacked out for 66 hours by my count. A fight over fees. Its really a fight for respect. Why you pay so much more for cable programming than i. Summary of the most watched network. Your programming is free. So timewarner says that cbs wants a 600 percent increase in price. Cbs called that fictional and ridiculous. Twenty or 25 . Blasting all weekend. Time warner coming out and blasting cbs saying they have made outrageous demands for the programming. Delivers free over air. We regret this inconvenience, but feel it is crucial that we let them know that we are willing to do what it takes to keep the price of tv down, which is nice of them. Cbs blasts back and says that they are conducting negotiations in a combative, nonproductive spirit. Distorted public posturing. So this just could not get more heated. Dagen are they even talking . Reporter van not. Some people, some analysts think this could go into football season. I just dont see how. Both have too much to lose. Time warner cable may have the upper hand. It does have the distribution. Certainly hundreds and hundreds of channels with Time Warner Cable, but here is how nasty it is getting. Theyre hurting their own customers. Showtime offered Time Warner Cable. Time warner cable said no, showtime people. And then they said, make sure you go over this cbs and look at the shows on line. Well, cbs shut down access to the online shows and time warner markets, just not the three, but all time warner markets. That is doing bad things to your own customers to make a point and hurt the other guy. Dagen fans every donovan on showtime more highly incensed. And you missed tiger when it championship. Dagen washington bowles. Still proves that he can open a movie. He sure did. 28 million at the box office and took number one. We had a screen showing the top five films. Not a big blockbuster, but then the fell only cost 60 million the make, which is not bad. Wolverine second week, 50 percent drop. Smurf to, looking bad, but 75 percent of that first was overseas. Dagen and then the canyons. Which you saw. Dagen on directv on demand because they did the simultaneous and peter release. Usually when they do that it means the film will do that well. It means that there will be a curiosity. Some people want to see Lindsay Lohan naked. Im kind of trouble by it because having watched that parent trap with her as a lower growth my daughter, id want. Dagen i dont mean because shes naked and youre looking at her chest, but she looks like shes about 45 because she is age so badly. Her costar, the porn star, proving he can act below the waist but not from the waist up. It is one of the worst movies ever seen. Was it in the privacy of my own home. You can stop it. It did not have to admit to anybody. Dagen i did. I watched epic crap before. This is not quite up there. Thank you. Coming up with cheryl at the top of the hour. Major League Baseball commissioner on just how tough baseball will come down on Alex Rodriguez. And the steroid scandal that is expected any moment now. Cheryl and dennis breakdown the cost of the game and the players ahead with an allstar panel. And the worlds first testtube hamburger made from we grown in a laboratory. And that is it. Yes, that is it. Cheryl and dennis will tell you how it tastes. And whether it will change the world as we know it. That is all ahead on markets now. Dennis im dennis kneale. Cheryl im cheryl casone. The business of baseball, commissioner bud seligs call on just how hard baseball will come down on arod and others expected at any moment. Were going to break down the costs to the game, the players. Weve got an allstar panel join ugh us. Dennis and cbs stations still off the air on three major markets, and the media titans are battling over retransmission fees. Up to the minute coverage coming up. Cheryl and the worlds first test tube burger made from labgrown meat sampled in london today. Were going to give you the update on what it tasted like. Were going to depend on other people, though, to tell us how it tastes. Dennis theyll never be able to call that free range. Cheryl stocks now, of course, every 15 minutes, Nicole Petallides on the floor of the New York Stock Exchange. Reporter hey, good afternoon, cheryl and dennis. Right now were seeing the dow down about 50 points, a hoss of onethird of 1 while the nasdaq and the s p 500 are pretty close to the unchanged line. Coming off the heels of last week where we had alltime highs for the dow and s p and 13year highs for the nasdaq. Today we have been to the downside, we pared those losses to a certain extent when we got our latest ism numbers, and that came in better than expected. So we did see some improvement in the market but still to the downside overall led by Energy Stocks which are lower, drugs, banks for the most part do have down arrows. It was interesting, i was also reading not only about the economy and what we got there, but also Federal Reserve official, dallas president Richard Fisher, whos not a Voting Member but once again shows his concern pertaining to what weve seen in the fed and the easing Monetary Policy and quantitative easing, infinity is that what were up to, so obviously expressing concern there but, again, hes not a Voting Member, and earnings season, so we have a lot of names up and down. Back to you. Dennis thanks very much, nicole. The dows taking another breather today, but seth masters of bernstein Global Wealth management is running with the bulls. Hes been calling for dow 20,000 by 2020. He joins me now. Seth, i love that forecast because im kind of a permabull. The one thing is rising Interest Rates. Lets start out with a chart, stocks versus tbills. When you look at the s p 500 versus the tenyear treasury, you see why people are so afraid. The more Interest Rates go down, the higher up goes the s p 500. So rising Interest Rates, how much we fear them. Now lets go to that second chart and take a look, guys sorry, seth, youll get to explain in a minute. When bond yields are falling, stocks rise an average of almost 1 a month. This is since 1970, okay . When bond yields are stagnant, stocks fall an average of a tenth, but when bond yields are rising like right now, stocks still manage to rise half a percent a month. So tell us why this is, and give us your caveats. Right. So the caveat is this is what happens when rates are very low, below 4 . Dennis exactly. And, of course, were well below that level today. The reason we are very excited about stocks is that their valuations are reasonable, and Interest Rates are so low. In fact, as you can see from that chart, when rates are very low and they rise, its obviously not good for bonds, but it actually is okay for stocks because the reason theyre rising from low levels is the economys getting better. That means the companies are doing better, and its good for shareholders. Dennis so stocks, youre saying that investors actually start to think that, okay, im okay with that, or they go up in spite of the rising yields . Well, i think what happens is when an investor can look at the whole picture and recognize that they still have a lot of good earnings and that the competition bonds still has very low yields, stocks continue to look very attractive by comparison. After all, stocks today are yielding over 2 , not that much less than bonds, and you have share buybacks at many companies. The net impact of that is very attractive even from a yield perspective on top of which you have a lot of Capital Gains opportunities. Dennis so the great thing is when bond rates are so low because theyve been so ridiculously low in part because weve been so filled with fear and well pay the government almost to hold on to our money, so thats a good sign when Interest Rates rise. What happens when Interest Rates are at 8 and they go up to 10 . Thats a totally different situation. When rates are high and they rise, that created major headwinds for companies both because it probably means the economy will start to slow down at some point dennis its going to crimp things and stops predicting where thats going six to nine months out. Exactly. Your actually creating a higher hurdle for stocks to overcome, and that makes the pe ratio dennis you have to get a lot more money in government bonds, so im not going to put as much money in stocks and, therefore, demand and prices go down. Precisely. The balance of risks today is the opposite of that. Stocks actually have a lot of opportunity and, in fact, its bonds where theres some degree of risk because we dont know exactly when, but ultimately, Interest Rates will start going up, and you dont want to have too much in bonds at that point in time. Dennis depp im going to take that reasoned explanation and boil it down to stocks good, bonds bad. Seth masters, have a good day. [laughter] cheryl well, the business, the business of baseball, mlb commissioner bud seligs call on just how hard baseball will come down on arod and others in the steroid scandal expected at any moment. No guidance at this point, but we are expecting something from bud selig. Millions on the line for arod and these other players mixed up with the florida lab. This dates back to january. Weve got foxbusiness. Com Senior Correspondent dun son pyle and charles payne. Charles, he is still owed at this point 8. 5 million, charles, from the yankees, thats for the rest of his salary, another 28 million for the last four years of his contract. All of that is in jeopardy now, correct . Well, its all in jeopardy particularly if theres a lifetime ban. Apparently, thats one of the things theyve been trying to negotiate with him, if he would sent a deal, you know, whatever their deal is and not fight back, then he would still be able to resume his career after next season, if not, theyll try to come down harder. Were essentially talking about a gigantic hit. Either the 29 plus 8 million for this year or the entire package, four years at almost 30 million each. So either way its gigantic numbers. Theres a whole lot involved in this, and theres a whole lot of implications, too, beyond Alex Rodriguez. How many black eyes can baseball sustain . Is so far theyve been able to sustain them all. Cheryl heres the thing with regards to the financing of the team, dun son, this is a team valued at 2. 3 billion, revenue coming in at 471 million. But a big chunk of their expenditures is arod himself. Hes 38 years old, dun jston, hes had a lot of injuries. Hes coming back tonight versus the white sox well, cheryl, whats even more interesting is the bigger picture, and, of course, its all about dollars. Fifteen years ago baseball took a very different approach to the steroid problem, in fact, they ignored it. As mark mcgwire and sammy sosa were breaking home run records, you had people coming into the stands in record numbers, and baseball basically ignored the problem until it blew up in their face. Fifteen years later, baseball has recovered. Theyre making a lot of money again, but the tide of Public Opinion has turned, and people no longer want cheaters, if you will, on their team. So baseball and the union have taken a different approach, and they want these people out of the game. They see these cheaters as a financial problem for them whereas 15 years ago they did not. Cheryl you know, the team might, charles, but if you look at what happened ryan braun of milwaukee, he was suspended, his jersey sales actually went up after his suspension. I know what youre saying that maybe kids need new role models, that was before. Yeah. And youre right, you know, its so funny. Some people say baseball should have no rules. In other words, whats wrong with these giant, you know, steroid era when theres 80 home runs . People love the home runs. But i think the point is that baseball has overcome these sort of things before. Im not sure that the unions are necessarily taking a different tack. Theyre behind arod at this very moment. Not as much as they were, charles. I do have a problem with milwaukee. They extended brauns contract three years early, and there was a dark cloud around this guy. Why did they do that . Its one thing for a guy to say, you know, hes going to take a 3. 5 million hit, but after that a 100 Million Contract takes cheryl what were you saying . Theres a contrarian point of view, and this is from my brother whos a big yankees fan, and if you talk to anybody on the streets of new york, people are so angry at this guy. The yankees are about nine and a half games out, almost all of their starters have been on the disabled list, they havent been there for the fans to see. You bring in arod, hes going to pack the stadium just to boo this guy, and that could be a big financial gain for the yankees for a while. [laughter] cheryl what about endorsements, charles . We saw this after tiger. Mike stood by tiger, he just nike stood by tiger, arods not going to get any endorsements, but its really about the tv contracts. The game is important, but as how many as major League Baseball keeps getting these contracts, they can afford to go out and lavish 100 Million Contracts on people sometimes even when theres a question mark around their integrity. Cheryl you know, if you talk to any new yorker today, theres not a lot of sympathy. No, they want this guy to go. The interesting thing about arod is they signed this gigantic 252 Million Contract five years ago ostensibly because arod was clean. There were another 30 million in bonuses for when he broke the home run record, barry bonds home run record, because he was going to do it as the clean hero. All thats gone out the window, completely different story. Cheryl i think thats a really good question thats going to be sorted out by lawyers and agents. Guys, thanks to both of you. Want to let our viewers know were going to stay on this, and if we get any type of statement or press conference from major League Baseball, well bring it to you. Well see. Dennis all right. It is our countrys biggest export to china. Not microchips, soybeans. Looks like we are heading for a record crop. Team coverage ahead. Cheryl and more than a billion dollars comes off of samsungs market value following the president s decision to veto an import ban on some apple products. Lizzie macdonald on the implications, as we go to break, though, want to take a look at the energy market. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. And this park is the inside of your body. See, the special psylliufir in metamuc actually gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 ser fiber. Metamucil. A quarter million tweeters is beare tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its cled hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Cheryl what we have on this monday, its summer. Obviously, youre going to have a little lower volume today, but certainly there are some stocks that are moving. I want to show you travelers, 83. 22, down 77, youre going to keep watching throughout the day. Exxonmobil, walt disney, but over on the leaderboard here, and this is something were going the talk about later on, unitedhealth group, 73. 12, this is one of the Largest Insurance Companies in the United States. A lot happening with obamacare and the implementation of that program. Were actually going to be getting into that later on in the show. Right now lets see what Nicole Petallides is getting herself into on the floor of the New York Stock Exchange. Reporter im watching something very interesting, some people like emerging markets, some people like large caps or wangs, and how about banks and how about moving hot on small caps . Take a look at the russell, because the russell 2000 once again hitting a record alltime high. Its up just one quarter of 1 right now, but certainly its enough today to move it to these new record levels for the 48th time this year. Now, of course, this comes on the heels of what we have seen last week, the dow, alltime record high. The s p, alltime record high. And the techheavy nasdaq which hit highs, the highest levels in 13 years. Weve certainly seen a lot of these major averages that we watch so closely and not of the individual equity names to go along with it, cheryl, so theres certainly been a lot of great performers. Cheryl im glad you pointed out all the record highs, its nice to see especially in the middle of summer. Nicole, thank you. Dennis well, soybeans have been riding a rally for 18res have me opposite direction. Lets head to our bean boy, jeff flock in the fields of mchenry, illinois, and phil flynn in the pits of the cme. Jeff, set the scene for us first. Reporter ill tell you, dennis, you dont even have to be a farm boy to tell this is a good looking bean crop. Theres been plenty of moisture, and that has meant take a look at this one and maybe al and lori up there have one you can see up close and personal all the bean pods that have been set on this. Excellent surface moisture, weve had rains, sun, perfect growing conditions. It could be an alltime record soybean crop and, of course, well, you know what that means for the futures and for the prices. Last year we got up around 18 a bushel. Now, well, phil flynns got the latest numbers for you, but ill tell you, its just completely in the opposite direction. Good news for the crop can, bad news for the be price. Dennis all right, thank you, jeff flock. Whose hands were those in the foreground . Lets ask phil flynn, meanwhile, at the cme how things are going. Hey, what better way to Start National farm week . I love it this way. Look at those beeps today. Theyrr getting those beans today. Down another two cents, especially in the new crop, and that crop is getting a lot closer to the old crop. If you remember, we had a big, wide spread between the two crops because of concerns about this crop. Now that it looks like its going to be a record, were going to have to wait. But today were going to get a lot of news on soybeans that may bring this market back. One of them, of course, is the crop condition report. In that field where jeff is, it looks beautiful, but there are some places in iowa were still worried about. 67 of the corn crop is floundering right now, were going to see if that improves from the week before. Soybean market, Global Demand theres concerns about china. Chinas auctioning some of their beans that theyve had in storage on the open market. Thats actually adding more downward pressure to the front end. So, jeff, keep that crop coming in. Were going to probably need it a little bit later. Lack to you. Dennis all right, thank you very much, well handled, guys. Cheryl the bean boys, that was good. U. S. Embassies in the middle east and africa closed through saturday. The terrorist threat and what it means to the markets coming up in your fox news minute. Dennis and battte of the media titans. Deals coming up in media minutes. Cheryl here are the worlds currencies and how theyre faring against the dollar. Well be right back. You make a great team. 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If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Folks have suffered from frequent heartburn. But getting heartburn and then treating day after day is a thing of the past. Block the acid with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. Zero heartburn. At 22 minutes past the hour, im Patti Ann Brown with your fox news minute. Lawmakers say intercepted chatter indicates a major terrorist plot is in the planning stations. The state department decided to close embassies and consulates in 19 cities in the muslim world until the end of the week. Norway is also restricting access to its embassies in the middle east and africa. Some 100 homes in lawtell, louisiana, remain evacuated following yesterdays train derailment. The Union Pacific 26car train went off the trials 60 miles west of baton rouge. One of the cars had been leaking sodium hydroxide which can cause injuries and death if it comes in contact with the skin. And a u. S. Military helicopter crashed on okinawa. Three crew members ejected from the helicopter and survived, a fourth has taken to the hospital. Those are your headlines on the fox business network, im Patti Ann Brown. Dennis in todays media minute, neither side blinked, and now the eye is blacked out. Cws now has been cbs has been dark in new york, l. A. And dallas. Cbs showtime channel darkened in 12 million homes served by Time Warner Cable. Time warner blasts cbs saying that, quote dennis noble of them, aint it . And cbs accuses twc of teps dennis pointless brinksmanship d distorted public position, further bashing twc. Twc says customers can watch shows online at cbs. Com, but cbs shut down online shows and not just in the three markets in this fight, in all time warner markets nationwide. Now, thats just mean. Some say this tit for tat could last into september and nfl football. Theyd better make up soon. And this just in, reince priebus, the chairman of the Republican National committee, asking cnn, and and nbc to kill their programs about former secretary of state Hillary Clinton. Doing a feature film that will show in theaters and on the news channel. Now, prebus says if they do not kill the shows, he will recommend the Republican National party not partner with the networks. He writes dennis he then proceeds to threaten th but as american citizens, certainly you can recognize while many are astounded at your actions which appear to be a thinlyveiled attempt t a putting a thumb on the scales of the 2016 president ial election. This is going to be a big fight, cheryl. Cheryl well, it is the fox business summertime showdown. Matt mccormack duking it out with robert luna on friday for stock picking supremacy, and there was also greater ice cream greater, excuse me, ice cream from cincinnati. They each made two stock picks, we tracked them for a month, and it wasnt even close. Matt came in flat while robert saw a gain of over 4 . Robert luna is the winner. Week three, he moves on in the competition. Matt says hes placed the order, and the ice cream is on its way. I guess to phoenix, i guess ive got to go home to pick up on that one. Were going to be they checkingn that, robert, you get your ice cream in arizona somehow. This fridays matchup, David Trainer versus scott martin from united advisers. Dont miss the showdown, friday at noon eastern time, right here, fox business. Dennis and republican versus republican, why gop governors are telling Party Leaders on capitol hill to cool it on threats to shut down the federal government. Cheryl and making san diegos airport petfriendly. Hint this involves a fake fire hydrant. That story coming up on the west coast minute. As we go to break though, wallet to take a look at want to take a look at some of the winners and losers on the s p. Well be right back. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. [ villain ] well mr. Baldwin. It appears our journey has come to a delitful end. Then i better use the capital one purchase eraser to redeem my venture miles for this trip. Purchase eraser . Its the easy way to erase any recent travel expense. I just pick a charge, like my flight with a few taps, its taken care of. Impressive baldwin. Does it work for hotels . Absolutely thank goodness. Mrs. Villain and i are planning our. You scare me. And i like it. Lets go whats in your wallet . Bounce is great becausthe freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. Dennis republican governors versus republican congressman. Why gop governors are telling their congressional delegations to go slow on plans to shut down government. Apple was an unusual victory in its patent fight with samsung. Coming up, just how much bogus patent battles are costing our economy. And the first burger grown in a test tube gets a taste test. The results coming up. Its time for stocks now. Lets go to the New York Stock Exchange and Nicole Petallides. Reporter well, plenty moving. A recordsetting day for the russell 2000. Some individual names. Facebook breaking out. We talked last week about a breaking above the 38,000 38 ipo price. Once again right now 39. Tyson foods was doing well with chicken demand, beef demand. Down about 10 lower. Ad revenue. Yell coming back after some records. So the best performer of the Dow Jones Industrial average today. Cheryl thankyou some much. See you at the top of the hour. Gop governors warning colleagues on capitol hill to avoid the looming government shut down, claiming the effects would be damaging to their already fragile economies. This is in response to a call by Tea Party Senators to oppose a measure that would distort the shut down if it includes financing for obamacare. Joining me now, the founder and president of your pen as a finger to about health care. The republican governors are basically coming to washington and have a big conference saying were the ones that have to run our state and our budget. Some of these governors have rejected expanding medicaid. Yet their senators from their own state are going against them where does this go . To the governors have a point . The problems with the governors around the state is that the states are too addictive to washington d. C. The business of washington, the business of his congressional leaders is to try to bring this fiscal house in order to reach last year we spent three and a half trillion dollars, 1 trillion borrowed. It is the business, legitimate, congressional leaders here in washington. It is already complicated, costly. Do we put it on top of this bloated budget . I think the best thing that the governor should do is mined the business, and that is to bring their fiscal house in order, fix the economy and actually win themselves from Big Government here in washington. Cheryl let me read your. The average what scott walker. Survivors recall. Heres what he said. I admit that obamacare is not for the economy, but i have concerns about potentially doing something now would have a negative impact, even if it was just in the short term. There are other ways to pursue this. Bring it to the table. When he likable we have done, if he or any other governor were there in 1965 when we started this medicare expansion and started the whole program, would we do that again . That is what many of the congressional leaders are looking at in terms of obamacare. Obamacare is extra funding that is not in the budget. I think it legitimate for the congressional leaders to go into their districts and make the case that we should not continue to a bloated government, especially with something this challenging. I appreciate the efforts of governors, alker, and youre absolutely right that it will have an adjustment if washington shut down. At what point do you say we have to bring this fiscal crisis in order . Cheryl as federal funding will be cut off to the states. The same ones that are being told it is a lot. It upheld the Affordable Care right, now is governors are saying, we still have in some regard, these are governors letter saying we dont have the financial wherewithal to survive, yet were being told to do this. Senator ted crews from taxes, rand paul coming in and saying stop the government, the fund the government. I mean, its a lot of fighting. There has to be room for compromise. Well, their job, the legislators you just mentioned, the center, his job is to come to washington and try to bring the fiscal house in order. Perhaps there should be having a conversation with their taxpayers and saying, is it a good idea that we have so many people demanding and put into their personal lives and then the state having to match it. Actually, they should be concerned about bloated medicaid. Obamacare will put more numbers on medicaid, whether they accept moneys are not in a particular state. Whether they exit the bill that changes. This should be a law that all of us, they have to match medicaid funding out of washington d. C. The conversation is not whether the governor should be talking to the congressional elected officials. There should be talking to their constituents and let them know to hold on because it will put it really difficult for us to transition out of this mess we created. Cheryl we are business network, always watching the stocks of Health Insurance companies, United Healthcare is a dow component. I tell you what, even theyre saying forget it. Theyre not going to cover people in california and arizona if this doesnt work out and the presence favre maybe he does delay it. It cannot work out in his favor. I think the more pressure from the people and the legislators to say we have gone through the 2,000 pages. This is not going to work. At a certain point even the president has to admit his mistake. Cheryl always great to talk to you on the subject of health care. Thank you. Dennis apple winds around. Ahead we will tell you just how much of this patent battles are costing the economy. Cheryl San Franciscos bart system is on track. Why the california governor had to intervene in contract negotiations coming up an hour west coast minute. Reporter im tracy with your fox business brief. Dow, s p 500, nasdaq, and russell 2000 all down right now 55 points. All on the heels of the new report showing a better than expected lead on july is and non manufacturing. The july leading matches the years high in february. Sixteen of the Industries Surveyed worked to contracted. The European Union says the gate to the 11 billion merger of u. S. Airways and amr, the parent of American Airlines. That comes with certain conditions to prevent monopoly. Shares of u. S. Airways right now moving. And at snack time is back in a big way. The honor says coffeecakes devil dogs have all returned next month. The latest from the fox business network, giving you the power to prosper. Dennis more on the story. Chairman of the Republican National Committee Asking cnn and nbc to kill their planned programs about former secretary of state Hillary Clinton. Issuing a threat to nbc and cnn. If they dont kill the program the rnc may refuse to partner with nbc or cnn for the debate in 2016. In a letter, as an American Company you have every right to air programming of your choice. Thats nice of them. American citizens, certainly recognize what many are astounded that your actions which appear to be a Major Network family veiled attempt at putting a bomb on the scales of the 2016 president ial election. Fox news joins us on the phone. Thank you for being with us. I think a threat from the republicans. Its really kind of heavyhanded were you surprised . No. I taught the action by the networks were heavyhanded. I think day or really demonstrating. I think there were going to come across to the viewers, fascination with one candidate. So its pretty obvious. Hillary clinton. Its obvious that would have been extraordinary prejudicial. I dont care if youre republican. Look at that letter. Theyre talking about democrats being disadvantaged by the huge amount of attention that will go to Hillary Clinton if a dramatic presentation for the documentary. Both are going to shine a bright light on one candidate for the 2016 president ial race. Dennis do see any difference . And Entertainment Network doing a miniseries kind of docudrama verses as cnn which is a news channel. Im reading here and actually it is planning a feature film that would it released in theaters and on cnn. I was stunned. Again, i think always pushing into new kinds of media, new platforms. In this case, theres nothing new about the platform because movie theaters. What is new is the audacity of thinking you will pick one candidate. From a republican perspective theyre willing to fight because they feel that this would mean that their candidate, no matter who their candidate might be going into 2016, will start the race at a huge, huge disadvantage. Cheryl dennis i have to tell you, the world is turned upside down because you are going against those liberal networks. I was thinking Republican Party was too heavyhanded. Do you think that cnn and nbc will cave in and abandon plans . I think the News Division is going to have to stop and think. That is the reason, the chairman of the rnc did this. The key, its time to exercise. This is so early. We are not a year away from 2012. All of a sudden here is the intense focus on 2016. You have already had all of the scandals in new york that have brought attention back to monica lewinsky, bill clinton, Hillary Clinton. It is unbelievable. It is almost like a gravitational force. That is why the republicans are taking a stand right now. I think it is a very important stand. I hope on not coming across as taking one side over another, but from a purely political, analytical point of view, what a huge windfall for a liver clinton to have that kind of advertising setting her up for run caught. Dennis now we will see if the democrats to get it. We appreciate it. Man. It. Cheryl thank you. Time for stocks now. We have jason. We are down today. All of these record highs. Yet we are not seeing a big, you know, round of profittaking, if you will. We are kind of holding steady. And make it it is a typical august day in the u. S. Equity market. Earnings have been great. The guidance has been better. No great anomalies coming out of the Economic Data point. I think that people are really Getting Police to put some real money to work as a get back from summer vacation. August is historically slow. And think there are a lot of people that dont believe in the equimark its. There will be chasing the yield in a very violent way come september. Cheryl thats an interesting point. Right about august, but there might be a shift this year. Thank you. Youre welcome. Cheryl the white house is handing apple a big win. Coming to the aid of a tech giant over a patent battle with archrival samsungs. Joining us now, are really brutal battle. Going on for years. A huge, bloody, global patent battle between samsungs and apple. Both are accusing the other of stealing intellectual property. And samsung one of the International Trade commission, basically the older iphone threes and fours and the ipad. Now with the white house reversing that, consumers can still get those older products. Samsung may appeal. Here is what the trade representative told the basically samsung and the white house decision. I decided to disapprove and reversed a ban due to the effect of the u. S. Economy and consumers. We have a big backlash growing in south korea. South korea, the government is out with a statement saying this is protectionist. We are concerned about this. We are seeing a essentially samsung may go to court to reverse this. Here is the problem, why the white house does not like this. It is so easy for the trade court to basically block the sale of goods instead of assessing financial penalties. Companies know that. They have a history of bands of the International Trade commission. The white house is essentially saying were going to protect apple, protect our consumers and have these products sold. Cheryl starting to use import and export bans as political. Redoing and all over the world. It sounds again, this is basically essentially companies as saying they may have little effect. Cheryl thank you. Dennis and speaking of patent wars, congress and attorneys taking on so called patton trolls, companies that buyout patents in balkan threaten to sue other companies for infringement. Costing Tech Startups as they fight or settled. Joining us now, general counsel for one Company Fighting back. They target the biggest, fattest companies. The use a Small Companies are targeted just as frequently. It is really a mess. The situation is the tip of the iceberg. Small businesses in america are under attack. They buy up junk patents, filed these frivolous and vexatious lawsuits and tried to extract it rich quick settlements. Its really causing a trampling on innovation. The internet is driving a lot of job growth in this country. It is not adjusted internet companies. Its all kinds. And the innovators of losing out because the vast resources, 29 billion in 2011 alone for direct cost which was license fees and legal fees. The 80 billion cost that was in direct. Its really a big diversion of resources from Companies Really to lawyers and patton trolls. They are not doing anything for the economy. Theyre not creating anything. Dennis buying something that was neglected and hoping to scare people in the settlement. I have often felt that companies to get sued are themselves implicit because they keep paying off these guys to go way instead of standing and fighting. Now, your company is changing ground. You guys have your legal budget is up fivefold because you decided to stand and fight. That is true. We are fighting because we think it is bad for the economy, bad for our customers. We have a couple hundred thousand customers, most Small Businesses getting sued and they dont have the resources to fight. It costs between two and 5 million just to defend a case. The patent trial comes in and says we have sued you. We have this patent and everyone knows it is either invalid are most likely does not infringe, but we will settle for 100,000, 200,000. Its going to cost me 2 million the 5 million to fight. But that just feeds them. And we are Encouraging Companies not to settle. Also encouraging the big solution which is congress. Congress has the ultimate weapon to pass legislation to fix the system because the patent trolls dont have any skin in the game. They are not at risk. They dont pay their lawyers anything. There are contingency cases. The dont have the discovery costs. They form Shell Companies and try to extort. Dennis a couple proposals pending in congress now. And that goes. You guys out there in Silicon Valley want to just organize some kind of big mutual organization, pay legal fees in and take on these patents rolls together. Thank you for being with us. Cheryl making san diego airport pet friendly. That story coming up in your west coast minute. Dennis and beat made in the laboratory. The taste test for a test to burger, now. A quarter million tweeters are tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 ess energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. Cheryl time for your west coast minute. Breaks put on the board. California governor jerry brown issuing an order, 400,000 San Francisco bay commuters can breathe a sigh of relief. The governor ordered a 7day inquiry into the contract dispute that paralyzed the nations fifth largest airline. A 60 day coolingoff. Union leaders want a strike. Continues to be pay and pension benefits. The key posted. State legislators and alaska trying to lower student loan rates. Rates doubled this summer putting many students in jeopardy because the alaska loans are limited and not cover all of the university costs for students. New legislation would give them more funding at a lower rates. As long as their residence and completed agree on time. And finally, san diego has opened up and really station. The 75 squarefoot space has fake grass, a hydrant, deodorizers, and baggies for back passengers and pitches. It saves passengers a trip back to security. A few million spent. Dennis what a burger. Testtube food. Finding creative ways to combat food shortage concerns. The first slam crown hamburger was unveiled and taste tested in london, grown in vitro from cattle stem cells. According to three people who aided, it contains no fat or salt. It was dry and a bit lacking in flavor. One said it feels like a conventional hamburger but it tasted like an animal protein. Invested 330,000 open to find alternative to meet the growing demand for meat. Cheryl youd think they can make it taste a little better. Dennis they go. Just thrown in and. Cheryl taper proofing your portfolio. Decided exactly when the fed will cut back on the bond buying spree. What you need to do now to prepare for when the fed does take action. Dennis and move over nascar. A new highspeed race. Housesit top lawmaker lawn mowers are taking suburbia by storm. Cheryl that looks fine. Is a box of wind going away of the dixie cup . A shortage in california. Adam and lori coming up next. [ male announcer ] how do you get your bounce . With the bounce dryer bar, my clothes will be fresh out of the drawer for weeks. And its grt when things last a long time. Well. Most things. [ male announcer ] how do you get your bounce . [ woman ] cant regret fre. Welcome back to markets now. American embassies in the middle east closed through saturday. The Terror Threat and what it means for the market. Adam partime nation in the economy added more fewer jobs for the month, but whats worse . The quality of jobs created. Federal reserve chairman in kansas city and why inerm 4 million u. S. Jobs are still looking for the right people. Lori interesting way to put it. Taper proofing, if you will, your portfolio, wall street disagrees on the timing, but higher Interest Rates are expected in the future. What you need to do now to prepare for retirement portfolio p adam turning the dreaded chore into high speed excitement. Taking you inside the big business of competitive lawn mower racing. It was not like that in ohio. Yes, you heard that right, souped up lawn mower. They go 60 miles per hour. The greatest show on turf. First, time for stock, going to the floor, annie coal, watching whether or not were going to trim losses after the ism data came out; right . I so do lawn mower racing. Love that action. Yes, absolutely right, we had a market down, got in the ism number compromises the services group, and it was better than expected helping us to p