Stuart i was surprised. They owe you money. Sue them. Stuart dagen and, oh, it is yours. Dagen on american. Connell i love peanut butter, myself. Good morning, everybody. Dagen what will the president do to get america back to work. Connell president obama was unable to talk these guys. More importantly, can we keep this up . Dagen a key to a better economy. Keys to your house, a new house hopefully. Connell lets talk about the markets. Nicole petallides starts us off as she does each day with stocks now. Nicole taking a look at a market that really has shown strength over the last seven of the past nine weeks. The dow trading as high as 13,682 prior to pulling back here into negative territory. We are seeing multi year highs. While they see the trend to the upside, they rally to resist it levels. I wanted to take a look. It was lower in the free market. The cfo, chief financial officer, gave an outlook for 2013. It is now trading higher on this conference call. Their wireless margins took a jump. A good outlook. Back to you. Dagen thank you. Congress is heading back to work just one day after president asked both parties to come together and stand behind his visions. Connell House Republicans may be less than willing to join him. Rich so is the bipartisan goodwill. The effects of the inauguration starting to disappear a bit from washington. Some tourists remaining in town. We expect them to drop the same lines we have seen for the last few terms. When you look at the president address from yesterday, more of a broader theme, a grand defense of the federal government. There was also discussion on entitlements from the president. They do not make us a nation of takers, they free us up to take risks. A Top Republican says we need to address spending on entitlements. If we do not Work Together to strengthen our Entitlement Programs, they will go bankrupt. Automatic cuts will be forced on seniors who are already receiving benefits rendering worthless there retirement that they built their lives around. Rich the house tomorrow will vote to extend the debt ceiling to may 19, as long as the senate and house both pass a budget. If not, this bill prescribes that it gets held back is not. Dagen thank you. President obama mentioned just about everything from gun control to Climate Change in his inaugural address. One thing was almost missing, though. Jobs. Joining us with more is steve moore. He laid out his agenda, a whole host of things. Why not focus on jobs. Does he think that this recovery is so on track that jobless rate will continue to fall, steve . I was struck by that also. In the whole speech, he did not talk about jobs. He did not talk about private business and entrepreneurs. It was a very progovernment speech. The president has a big challenge ahead. We still have a near 8 Unemployment Rate in this country, chipolte, over the last four years of this suppose it recovery. I do not think he mentioned the word jobs in that entire speech. Dagen three times. We did a quick count. I stand corrected. Dagen if you go through the list of things that he covered, that he wants to tackle, i said gun control at the top, immigration, Climate Change, equal pay for women, i could go on, but if he focuses on this, what does that do to the economy . What does that do to jobs . If you look at the broad overall agenda, i do not think a lot of this helps the economy much and i do not think it helps the employers. We just had a big Capital Gains tax, a big dividend tax. You have obamacare that is coming down the pipe which it employers with more than 50 workers in a lot of employers are already holding back on their employment because of that. Then we talk about things like coffee and trade and Climate Change legislation. I do not want to be entirely negative here. You mentioned the fact that the Housing Market is picking up. No question about that. Ironically, here is the irony of this president , the number one factor that is creating jobs in the economy over the last three years has been the oil and gas sector. Dagen you would be not a smart politician if you got in the way of that in the next four years. Steve, by the way, 2100 words in that address and job or jobs was noted three times. Steve, it was great to speak with you. People should read in our wall street journal today, we have an excerpt from Ronald Reagans inauguration. The job market was really expanding back in. Dagen steve, great to speak with you. Take care. Connell we brought in chief Market Strategist from america financial and. The question today is can this continue, david . I do not think it will continue at that case. You have the Federal Reserve doing everything in its power to make sure that this economy stays on track. That is number one. Number two is inflation is well behaved. You also have corporations that have deleveraged their balance sheets. And you now have the consumer coming back as well. When you add all of this together, the improvement in the Energy Sector, foreign economy starting to do a little bit better, i think the stock market do well in the second term. Just not as good as the first. Connell what if they mess it up again in washington . We will go into another round of negotiations, maybe we wont, on the debt ceiling. Maybe we go over one of them. You have to take that into account. How does that change your odds taking capability as you look at the markets . You do have to take it into account. No question. Maybe we will get beyond some of this and the first half of this year. At least enough to allow us to look beyond it. I think between now and then, no question we will be dealing with these deadlines coming up in the next few months. Connell do you still buy stocks . Our stocks at the place be . It will be very interesting to see what happens with Interest Rates. You talked about that accommodative Federal Reserve that is there. There will be this push pull on that side of it. I do think market rates will be drifting higher. The ten year note yield will be around 2. 25. I think that will pull people off to the sidelines into the Housing Market. They will not rise so much that we will derail or anything. A little bit of something to watch, but not a real problem. Connell it has been a good run. David, thank you. David joyce. Thank you. Dagen entitlement reform desperately needed. Based on what the president had to say, do not hold your breath. Connell the cure for the flu. One company that is at least trying to make some money on it. Capitalizing. Dagen how disturbing. You will forget you have the flu if you drink enough of it. [ laughter ] connell we will be right back on markets now. [ male announcer ] you are a business pro. 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A record amount of coffee out there. That hurt coffee bigtime. Young people, young people Drinking Coffee like crazy. In fact, on live strong, they try to warn them. Coffee is good, but in moderation. Another thing, overall, americans are drinking a lot of coffee. You would say, what did you have to drink yesterday . 64 would say coffee. Coffee beating everything by far. The trends are therefore demand. If we can get production just a little less than what it was last year, jl joe is the one that i like on this. I do those all the time. Right now we are at gaba. I think we are in starbucks also. You are playing the overall demand. Dagen it is not just the drinking. It is the roasting your own beans at home and then throwing them at home and in these kind of like smallbatch Coffee Roasters and producers. Connell absolutely. Dagen i feel welcome there all the time. Charles did they name it after you . Dagen no. I feel at home. Connell gerri west was the inspiration for the logo. [ laughter ] charles especially when they start selling franchises. Dagen thank you, charles. Quarter past the hour. Stocks now and every 15 minutes. Research in motion on a winning streak. Nicole that is right. It is up about 9 . Off of its earlier highs of the day. Certainly, everyone is awaiting january 30, 2000 the black area ten. They are considering some of the strategic alternative. It really pushed the stock higher that they are working with jpmorgan in order to consider these strategic options. The vix last week without lows we had not seen since 2007. It just shows that there is less fear in the market. Today, moving up about 5. 5 . Back to you. Connell thank you. The World Economic forum getting under way over there in switzerland. As it does every time at this year. Liz claman is there for us. Over the next few days, she will have some more of the influential voices that you have. She has though qualcomm ceo. She has the president of marriott. Bill gates later on also. Tune in for that. Meantime, getting sick never fun to actually get sick. It is costly to employers. Just love watching people blow their nose on television. God bless you. Dagen you know what is worse watching it on tv the Housing Market showing signs of strength. Home prices way up last year. Could this be the medicine . Lets take a look at how world currencies are holding off today against the dollar. [ male announcer ] ahh. Retirement. Sit back, relax, pull out the paper and. What . . An article that says a typical family pays 155,000 in wall street fees on their 401 k s . Seriously . Seriously. You dont believe it . Search it, 401k 155k. Then go to etrade. And roll over your old 401 k s to a new etrade retirement account. We have every type of retirement account. None of them charge annual fees, and all of them offer low cost investments. Why . Because were not your typical wall street firm, thats why. So you keep more of your money. Etrade. Less for us. More for you. At 21 minutes past the hour, i have your fox news minute. U. S. Cargo jets are helping troops in africa. Fox news is reporting to cargo planes left france yesterday and two more are leaving today. They have retaken the town which has been held by rebels for weeks. Prince harry is acknowledging killing taliban fighters. The prince of wales made the comment as he ended his tour of duty. He is returning to england later this week. We electing Benjamin Netanyahu for another term. The Party Cookbook to have fewer seats in parliament after those Voting Results are out tomorrow morning. Netanyahu says this property is dealing with taiwans nuclear ambitions. Connell the nations Graduation Rate hitting the highest level. That is better than 75 of them doing it on time. During 1976 topped that of the three plus billion graduates. 78 finished on time this time around. Those are stats that are getting better. A controversy brewing of north after canadas new 20 bank note came out. The crisis is over at the maple leaf. Many people believe it represents a norwegian maple leaf. They call it the looney, maybe for good reason. If you have not had your flu shot yet, you may not have to worry after all. There is a tiny ice cream maker that has created a flavor of sorbet that soothes your sore throat with it. This is pretty good book stuff here. Dagen just find be the bourbon. Dennis eight dollars for a pint of this stuff. That is what it looks like. Dagen i do not want to buy anything that i will eat that is called influenza anything. Influenza sorbet . Connell well making money. Whatever. Dagen do not make me sick if you get sick. Stop clearing your throat. The president does not want to go dear entitlements. The country is buried under these costs. Can anything be done to fix that in d. C. . Jeff flock is taking on the loopholes. Connell we will get to jeff coming up. Here are some of your individual winners on the s p 500. The local. Dagen the third rail of politics. President obama does not want to touch politics. Housing. It could be rebounding. Boeing looks for and answers. Connell lets go back to the call for another of stocks now. Nicole we have earnings season. This really shows you this back and forth action. Look at that. You have housing numbers. We are back in the green. That is a kind of action we are seeing not only today, but most recently. We have been trending higher. Of course, now the traders are saying you may want to take a little bit off the table. Of course it is earnings season. We will keep an eye on some of these names throughout the day today. Including ibm. Information technology. Google. Analysts on track. Google lower today. Texas instruments. Advanced micro is doing well today. In the 4 00 p. M. Show today, we will cover each one of these stocks. We will get on each want to see how they are trading after the bell. These are some of the names to watch throughout the day today. Connell Nicole Petallides, thank you. Dagen president obama said we needed to make hard decisions to preserve our Entitlement Programs at his first inauguration. Yesterday was a little softer. The commitments we make their medicare, medicaid and Social Security, these things do not stop our initiative, they strengthen us. [ applause ] they do not make us a nation of takers, they free us to take the risks that make this country great. [ applause ] connell matt welsh joining us now in the studio. You do not have to read too far in between the lines to see the president does not want to give it anymore. What you see is him changing about since 2009. Four years ago this week, obama gave an interview to the washington post. This has to be the generation that tackles this once and for all. Yesterday, quite the contrast. He rejects the small choice between our investments in our baby boomer generation and our investments in the future, which he means spending right now on everybody. Dagen do think that this is just a speech . Back cannot pay out 100 of benefits. That day is about 11 years out. He is wrong, actually. Entitlements right now are 37 of federal outlays. They will be 50 in 2030. Democrats are saying you cannot touch Social Security and medicare. If you do, it has to be our way which is obamacare. Otherwise, we will not even talk to. Democrats are no longer interested in the type of entitlement that they used to talk about under clinton and gore. Connell you heard reports that he was given on Something Like raising the retirement age, for example. That was all over the place. If you are the republicans, how do you cover this politically . They took a baby step with this debt ceiling thing saying you pass a budget. The next step is to say, okay, as part of a program of fiscal responsibility, we have to do something about this going forward. The reality is, republicans do not have much leverage. They lack the courage of their own convictions. They are scared silly because they think they will lose elections that way. Dagen what is the game plan down the road, though . Will they just wait until we are on the verge of these programs starting to run out of at least some money and then they will raise taxes on wealthier people to fund them . There has to be a long game plan you are talking about these politicians acting like adults and thinking longterm. I do not think there is a longterm game plan when it comes to dealing with entitlements. Connell paul krugman wrote a big piece about that. We do not have to do with it now, just put it off. Just think about the debate that we are having right now. Democrats are saying we need to raise taxes for government spending. It is medicare, Social Security, military and other things. These will be the largest chunks going forward. We will have to spend more of our money to pay for their status quo. Dagen particularly, people think, other than maybe they think that the money will be there they say that these are great programs because they liberate you from having to take care of your own parents. That is a way of thinking that they have had for a long time. Connell thank you. Always good to have you on. Dagen thank you. Connell d. C. s attack on holes and loopholes could soon be hurting your own town. Jeff i like this story because it points out the complexity. It is not as simple as that. President obama is planning to limit the tax breaks for taxfree Municipal Bonds. I am standing in the new water plant in indiana. I have to bear with me. Could you have finances without Municipal Bonds . We could have. It would have cost our taxpayers a lot more money. It is taking revenue from local taxpayers and transferring it to the local government. A lot of cities would not be able to build basic Infrastructure Improvements that they are now able to build for their citizens. Jeff they are attractive to the wealthy because they are taxfree. They are taxfree so they are very attractive. You have a lot of democrats out there that run cities and towns all across the country that say, wait a minute, you are not just hurting the wealthy on this. We had over 200 people working on this plan. Those jobs, had we not been able to build this plan, would not have been available during the economic downturn. Jeff mr. Mayor, thank you. We will be here all day. The cost of borrowing could go up if they eliminate that taxfree nat