Absolutely huge, cbs cable, you get the reruns as we used to call them. Despite strong earnings, the half full year of looking after reaching the 12 year high, 70. 77 the stock started to pull back down 0. 64. All we are seeing are records, and the market is overvalue and are ready correction is on the way. Follow this guy. Warren buffetts relatively simple plan involves simple math had. It has a of Warren Buffetts bake in a few crucial times over the years and Liz Macdonald as it for you. The red signal and wind it is blinking right now. And got you when it comes to stock purchases. Right out of the gay as we mentioned the dow hit a record high right off the bat. Now is on track for its 30 third record close this year alone. With four all stock and jeans, picking these out that his brand new heights. Nicole petallides with nike and more. Nicole we talk about the Dow Jones Industrial average, 30 nations that represent different sectors. We are seeing a up arrows, procter and gamble, blank, nike, hit a high earlier today but didnt fall back on all four of these machines hit record intraday higgs today. Is worth noting the Dow Jones Industrial average as well, a new record high today, 15,740. We have been watchinggthe s p 500 closely to see if it too will have record of some sort, may be a closing record. In the meantime we talk about nike and procter and gamble you are looking pensions that are consumer related and when you talk about blowing, more industrial tight conditions. That is the action we are watching a very busy week on wall street. We at ipos, a big one tomorrow and 13 ip ofs this weekend with that that may be the busiest week since 2007. Of busy week on wall street, twitter tomorrow, jobs numbers friday and record highs to speak of. Nicole for 88 the ideal is so hot and we traveled these after the open, we dont say theyre of 100 . We look at them and many of them have increases which are interesting to see. Lets get to the floor show and bring traders in the conversation with the stock exchange, citigroup and the nynex. You look at charts, you limit the notion of it. And looks to be a very emotional in a positive way market. Absolutely. The dow is a new highs. Broader industry, bulls we traded 67 days ago so we are sort of stalling out of important data over the next few days. We have the ecb meeting, the gdp, fridays jobs report and the twitter idea. A lot of excitement about that but it is important. The dow was up, were seeing an increasing amount of bullish sentiment. We see a 40 point spring between bulls and bears. We should 16. 5 barris, the lowest since 2011. So heading into this bullish, and we see an increasing amount of complacency and nonchalance making it the worst behind us so we can close right through. Liz you are not concerned about the transports . That looks good. That gets soft. Some excitement about the ipo situation especially with twitter. Does that worry you . Why isnt the Retail Investors still coming of of the sideline in meaningful numbers . I dont think he believes it. The Retail Investor has been stuck for a long this period of time, they look at the numbers. I go to parties and people say how high can it go . I say there is no telling, nowhere else to put your money. That is the reality. Liz they are not listening. They missed out on an unbelievable rallies that we here at 03 00 and fox business and charles dean as well as that you can be mad, worried, but dont fight this case. Why are there are 39 thes coming out . They are coming out for a reason. Now someone jumping at the bit to take his victory lap. 90. We continue to watch it get closer and closer, do we hit it soon . I was looking at it, takes the you, if you look at the settlement from june of next year to december, if you look at that strip of beach month going got it settled at 90 one dollars and 0. 60. If you by your battles for the route for next year, every summer it seems the last couple years we rally of 210. If you are a long history you can start buyinn your balls out there now. We can off considerably, it has been good you in that respect sell i think Going Forward now we might have hit bottom. You wont pick the exact low but if you look at the outside st. June 14th, a lot of long return players are looking at, tough to play this daily so if you look forward today might of been a good time to start buying those or at least start averaging yourself in and as far as the s p i might as well china and on that. Those guys are absolutely right. The ideas coming out. Plenty of money to support a market you throw at it. A lot of people are looking at that. Let me get a big short in. Liz you get the final comment. Wanting a mentioned what does the grooves that deleting today, as Consumer Staples, the telecom, we dont have the groups in the rally, the financial, two four months ago. It is very much a defensive driven rally. Great to see stocks hitting new highss, look at cocacola, dr. Pepper, the beverage stocks, a lot of good names out there right now but important to see the market moved up with good volume. The advanced declined two days ago we are not seeing the same robust move to highs like we want to see at this stage. Liz i have a focus ring sublime not buying it. That is down at least. We watching it all. Thank you so much. Good to see you on the floor show. As we mentioned the Dow Jones Industrials set a new intraday record today just after the opening bell but you need to be attention because investors might want to pause for a moment. Hour pause is for a moment before they start celebrating. Billionaire Warren Buffetts favorite market signal is sounding a warning of sorts. Liz macdonald, what is it . Liz is so simple. Warren buffett has been advising this is one of the best indicators to show you where the stock market standing valuation in any given moment. Basically he is saying no stockindex should be worth more than the entire u. S. Gross domestic product or Gross National product. He is essentially saying of the wilshire 5,000 if you use that as a proxy is now showing that the market is overvalued. It is pricey. Could be in the late stages of a rally. Lets show you what it is looking at. This signal, Warren Buffett cited in 1999. And low and behold the market did fall back down. It also signals red in 2007 so you see 18. 8 trillion is the total market value. Look at that. You will see 16. 7 trillion is the value of the economy. Lets break it down. You are seeing the wilshire 5,000 index is valued at about 113 of gdp and historical mean here is 70 so we are basically way above what historical average and so the issue is when do you buy . Warren buffett some analysts are saying, buying when the signal is at 80 but we are and how 113 . We are in the late stages of a rally when you look at the signal. Liz littleknown fact there are no locker 5,000 stocks in the wilshire 5,000. Thank you very much. Closing bell ringing in 50 minutes. It is crunch time for twitter. And its ceo, social media darling on the brink of pricing shares this afternoon. Flash all over the place, wall street reporting it could go 20. We dont know but we do know this. Could be an amazon or groupon . We know where that went, skyrocketed. Groupon not so much with one of the most respected venturecapital lists in the entire country, this man on your screen, erik hippo, Silicon Valleys superstar has a remarkable track record of success. He is here live first on fox business to give us his take. And when it comes to making big money out of initial Public Offerings some companies, you know the story, skyrocketed and made investors piles of money and others were total beds. And disappeared from view. Will the past be the present . Details next. We went out and asked people a simple question how old is the oldest person youve known . We gave people a sticker and had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the oicial retirement age. The question is how do you make sure you have the money you need to enjoy all of these years. Liz the power mover of the hours ebay, and carl icahn maybe taking at stake in ebay. The chatters lifting e bshares, recently increased investment,. With twitter going public and pressing expected, and how high at the open will stop go . And an early investor in yahoo in the early days. And eric hippo here. Your of the venture capitalist in Silicon Valley in new york not to mention elsewhere around the world. How closely are you watching the twitter pricing today . Im watching it closely because it is clearly the ipo in the technology of the year and the biggest ibm in facebook so it is important for the tech sector. What will the price at right now . The wall street journal is reporting 25 to 20 a share. The original was 17, 19 or 20. They will price conservatively in that range, maybe a little higher which would value the company in the 17 billion range which is fair value. Possibly 29 as soon as the numbers come out we want to remind you we will have them for you but you have a good sense about this company because you sold three companies to twitter in a year or relatively recently. In the past 18 months. Tracy one of them was called bluefin. The of the two were very much what you call aquahired. What are they are acquiring when they acquire these companies . A little bit of a product, but mostly the specialty of the team that was working on a product that obviously didnt make it as a standalone product. Liz is the a desperate they are indeed . That is typical 1 million for the year. Tracy 42 engineers and a go for the to 40 million . The of your engineers that the is it. Liz we did a fox business translator. What is that . In essence when companies 70 years that we dont have enough in this country, twitter obviously needs code writers, engineers. Do you believe a valuation of 13 billion ticket prices in a range we at talking about is a fair evaluation for a company that is not profitable . . Twitter is one of the fundamental platforms on the internet. If you compare its valuation of that with the valuation compared to linkedin or facebook it is pretty reasonable. On the probability part, we have to remember linkedin and amazon are real blockbusters today were not profitable when it went public. Liz the groupons of the world have struggled. How do you make sure twitter in venture capitalism on the west coast, he says this stock is going to collapse in a year after its ipo at twitter. A lack of profitability . This is close to 1 billion. When you didnt know that it has become today. How do you know as a venture capitalist with to invest, yet the investments right now. We have 170 investments. Liz update your resume . We invested big ideas, more importantly we invest in fantastic teams. Liz you have funds now, venturecapital funds. What is the minimum investment for someone watching to make in these funds . That is another story. It depends on the fund. The smallest investors 260,000. Liz yassin and then you, theres so much buzz in new york and i remind you the guy who founded it is from berkeley, alma mater but some of the ones you invested in. Buzz feed, throughlist, i assume you want these to go public like twitter has. They could go public or be acquired by somebody else. It going public is a great outcome, not an easy out come. Liz so much talk about twitter, has it gone too frothy . We have a drop. Since 2008. Investors really want to own sure play technology companies. Now theres a choice of companies to buy. Liz you will be watching been very closely. Interesting day. Eric is the managing director, began Silicon Valley investing in albany and you havent heard. Lets look how much money you could have made on the big tech names that have gone public in recent years. At you invested, lets pick on 1,000, amazon 16 years ago when the company went public on may 15th of 1997 your stake would now be worth nearly 240,000 grant of 240,000. This is a 1,000 and linkedin your state is valued at 5,000. You will have shares of 1,300. Both companies have been public for three years. Their and balanced look at the flops. Longterm bets in Companies Like askgee is, youbeen about deity. Com you would have lost volume monday, the companies no longer exist or were acquired so maybe you didnt lose your money. Lessons are learned. Closing bell, theres word that twitters up the idea could be so subscribe that the stock when it opens tomorrow could soar to much higher levels than the most bullish forecasting. Charlie gasparino is talking to people on the inside when it comes to the Investment Banking part, exclusive details running here in a moment. We will speak to him. 1 on 1 with omni and manager and overall market genius bezants on is getting her take on the markets huge bull run, she made a very correct call two years ago about being. And why she thinks a small pull back might be a good thing but why she is also remaining continually a bull. [ tires screech ] [ male announcer ] 1. 21 gigawatts oday, thats easy. Ge is revolutioning power. Supercharging turbines with advanced hardwe and innovative softwar using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Into the future. If hey breathings hard. Me, know the feeling . Spiriva is a oncedaily inhaled copd mntenance treatmentis. That helps open my obstructed airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder doetell your doctor if young inhahave kidney problems,oms. 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. Nothincan reverse copd. Spiriva helps breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they kw i dont trade like everybody. I trade like me. Im with scorade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. We shouldnt be fighting. We have different graphics for all of what charlie does because he picks up the phone we ha. You have some breaking news here. Charlie its going to get priced tonight at 27. Liz were also hearing 29. Charlie it could be 39, okay. I dont think what happens tonight is going to be that big of a deal. They are telling the Fox Business Network it is likely to be at 27. Here is what we understand the Underwriting Group comprised of jpmorgan, Morgan Stanley and goldman sachs. What they are doing is developing a contingency plan if the demand of this thing gets out of hand. Heres what we know, they would love a 40 opening bid what theyre worried about is the opening going dramatically above that. 80. Liz it went from low double digits to 100. Charlie this has the potential. A smaller offering. Everybody wants it. If the demand of this thing gets out of hand, it looks like the price is going to be priced opening at a very high level, what happens . The average guy who watches our show who watches. Liz at what percentage would the underwriters be comfortable with . Charlie 40. What happens if it goes way beyond it . Inside the Underwriting Group they are planning a lengthy delay in the open. As much as a 2 00 p. M. Delay. Liz what . Charlie i am not saying that its going to happen. Liz around 11 00 a. M. Charlie the nasdaq has later openings than new york. It usually does 9 30, right at the opening bell. I was questioning myself for a minute there. The 9 30 opening. I want the viewers to know this tomorrow, prepare yourself if the demand gets out of hand. This has the earmarks of a thing that could get out of hand. It is a smaller deal, every institution wants it, the price could get out of hand. Why dont they want that . I dont want to screw the retail. This thing has nothing to go but down. So what you could see tomorrow, a contingency plan, they are working on lengthy delay in the opening. Maybe as much as 2 00 p. M. What do they do during that time . What they would like are some flippers. They cash in, so it opens and they buy it at 27, they sell at 30 or whatever. People generally hate that, but they like it in this one because they think the flippers will keep the price at some normal level. What theyre worried about is too much supply and demand pushing for an astronomical level way beyond realistic pricing. If that happens, the underwriters will be assessing this. If they see that happening, you will see a lengthy delay. During that delay they will go to the accounts that have orders already pending. The big mutual funds, they will say sell us a little bit back and they will try to work that number down. The last thing twitter wants on this deal is to have open at 80 and a stock where the average guy buys it at 80 and over the next six months the Company Losing Money and goes down to 30 again, twitter is a new technology, nothing. They dont want another facebook. This is interesting because it is different than facebook. Facebook was making a lot of money. Kind of an uncertain ceo. The guys who run twitter have a little bit more together than Mark Zuckerberg. Their management is in place, but they are a moneylosing enterprise. They need this money to grow the business. And here is the thing, there is hype around this and a smaller ipo. The demand sets this thing at 80 or 60, if it is 50 it is not great. Liz what do you think the underwriters are doing right this minute . Can they quell the pricing of this thing . If theyre saying i am hearing. 9 and this confirms about that. Charlie the demand is at like 39. But they dont want, now some of this is not even worried about the pricing, it is the open. Where does it open and where does the average investor who puts their order in through their broker at wherever, wherewheredo they get th