[ laughter ] texas chainsaw massacre. [ laughter ] stuart mark, you are okay today. You, too, charles. Dagen the only thing a Haunted House needs is a chainsaw. It smells and it is loud and it is just plain scary. Connell stuart comes out in his white sox and sandals. Dagen i am dagen mcdowell. Connell good morning. I am connell mcshane. A group of bipartisan senators being out ahead. Dagen paul ryan showing some love for president lyndon. Connell the largest to a new alltime high. Turning into a slow grind. In other words, it is taking forever. Dagen top of the hour, everybody. Stocks now and every 15 minutes. Nicole petallides is looking at a pretty lousy day for one retailer. Nicole i am taking a look at barnes noble, dagen and connell. They will close a third of their stores. It is a tough economy. People are moving to digital. This may bode well for amazon. Com. Barnes noble down nearly 2 today. Barnes noble say they will close one third of their stores over the next decade. Lets take a look at the broader market. The dow down about ten points. Much like the nasdaq composite and the s p 500. They are all hovering near the unchanged line. The retail, drugged and bank index all have done okay with down arrows. Connell a team of a bipartisan senators have come together with their own plan on Immigration Reform. Dagen peter barnes is on capitol hill with the very latest. Peter this group of eight editors cant bipartisan group, for democrats, for republicans, trying to get out before the president speech tomorrow in nevada. Now, the senators proposal includes increase and verifiable Border Security and tracking of legal immigrants making sure that they believe when they are supposed to, mandatory employment verification, green cards for top floor and College Students who are getting advanced degrees, as well as, an immigrant worker program. A better immigrant worker program. Senator mccain said that for republicans, the politics of all of this is part of the equation. Take a listen. We cannot go on forever with 11 Million People living in this country in the shadows and within a legal status. We cannot have children who are brought here by their parents when they were small children to live in the shadows as well. Peter as you recall, in the november election, president obama got about 70 of the obama vote while romney got about 27 . Connell we are bringing Brad Blakeman and. Doesnt senator mccain pretty much sum up the politics of this . Absolutely. The smart thing is it is not only republicans. They now form an alliance in the senate with democrats. We have to be careful that is aligned does not work into a super committee. What the senate needs to do is lay the groundwork smartly before the president s speech and then sub this out to the committees in the senate in order to do their work. Whether it is on border and homeland security, taxation and then the house has to do the same. Connell i want to ask you a question in a moment on what the republicans need to hold out on and not give in on no matter what. All all of the attention, so far, has been given on a pathway to citizenship. A lot of the ceos are very big on this. That should be the thing that the republicans are pushing war than anything else. Absolutely. We should be providing scholarships and places and our universities for the blind that we need here in america. Not only the environment in which they can come here and study, but say here if they are needed. Connell making sure that it is not included in this deal, whatever that turns out to be . Amnesty. There has to be a pathway to citizenship. People who follow the law should not be burdened by those that do not. Connell defined what that means. The 11 login or so have to be encouraged to come out of the shadows and join those already in line. There has to be an incentive for them to do that. It has to be negotiated. That is what we are afraid of. We do not believe that 11 million should be granted citizenship to prevent those that have followed the rules from the pathway to citizenship that they followed. Connell last thing on the prediction of the politics on this before we let you go. You think this will be a hardfought, yearlong battle or do you think we will get something done really quick . It depends on whether or not they want to treat this like obamacare. No transparency. I think it will be very hard to get anything done. I think you have a much better chance of smaller bills coming to fruition than a big ominous bill like obamacare. Connell Brad Blakeman, as always, thank you. Thank you. Connell economists expecting strong gdp growth in the year ahead. It is up 36 . There is a new poll out. Dagen phil orlando joining us now in studio. Phil, great to see you spin a pleasure to be back. It sounds like an impressive study. Frontline Economic Growth is 3 . We ought to be at 4 writedown given where we were at the depth of the great recession. The majority of economists think we will keep limping along at 2 . We could eliminate all of these issues and negotiations that we have been having over the last three or four years. Connell the ten year treasury yield. All of the go, you saw a getting below 2 . See what happens to treasury yields and Interest Rates in general. We have one of the more bullish outlooks. The target is 1660. What we did not, however, think we would get to 1660 straight away. We thought they would be some pullback during the early stages of the year. Dagen at what point, though, to higher Interest Rates get into the way. We are parsing and 5 treasury yields. 2 caught looking at the model, the appropriate feet you would be Something Like 50 times earnings. That is absurd. We have been ignoring these low Interest Rates that are there because of fed policy. Connell maybe they will get the fed to act. One other thing from the Financial Market standpoint, Interest Rates go up which means bond prices will go down. Connell to follow up on what dagen was saying that you seem to be ignoring the potential pitfalls of washington getting in the way of markets again. That is the one thing that could stand in the way of that you know, Economic Growth and all of these things. That is the reason why we have been sort of cautious in the beginning of the year. The market, however, seems to be ignoring what is going on right now. They seem to be saying, look, we have seen this movie before. We know how it ends. At the end of the day, we will figure out a deal. Dagen speaking of the shift from fixed income into stocks, you saw a record amount of money according to a orders report. About 25 billion going into u. S. Stock funds. That is something we have not seen since the middle of the last decade. Absolutely. We have been waiting for this equity flow for the last five years. It is finally starting to happen. Connell slowly creeping back. We will keep the hats under the desk for the party and everything. Thank you, phil. Phil orlando. Dagen i am really old. So, you know. Connell kind of ugly. Dagen thank you, phil. People in the Salt Lake City region catching a breath of fresh air after a smog smothers residence and businesses. Connell that Expensive College education is now leaving a good set of america overqualified for the job that they are getting. Dagen controversy over experiments into bird flu transmission. The Company Involved in the danger and the benefits. A look at the oil markets. Completely unrelated to the bird flu. But, there you go. Connell Charles Payne is ready to go, but it is a quarter past the hour so we are going to go back to Nicole Petallides at the New York Stock Exchange. Nicole apple has moved back and forth. We watch this from 700 down to 435. Where do you buy . They are nervous here. They are in a wait and see mode. Apple now is competing so heavily against samsung and samsung baby cooler than apple. You know how it goes. There it is out for 50. 72. We talk about the fact that not too far off the unchanged line. Procter and gamble is up there as well. On the downside, alcoa and bank of america are two names that are weighing. Connell thank you, nicole. Dagen he already introduced him. Connell did. Charles payne. He is ready to make you some money this hour. I did not craft this segment. Charles you like those rvs. I finally went on a vacation. I took an rv from here to alabama. I insisted on the biggest one they had. It was huge. I did not know what i was doing. I got pulled over and he told me to pick a lane. [ laughter ] charles you almost feel like you are changing the stock. Longerterm, this stock has been as high as 95. It is worth chasing. The market share gains were absolutely phenomenal. Across the board, everywhere you look. They gain market share everywhere across the board. Over all, they have gained market share. The gross margin, they reported 10. 7 from 6. 4 year over year. I have this sometime last year. I still think the next move, a close up of 20 takes the stock significantly higher. Connell is it charles in the last two months, wall street has upped their earnings consistent. Now they are looking at 0. 82. For fiscal year 14, looking for 1. 03. This is almost 100 . When wall street starts to ratchet up its earning consensus, it never catches up to reality. Dagen how much of the price move of the stock is correlated to the price of gasoline . I would think that would put pressure on this business. Charles it is more of a yellow flag then a red flag. They are sort of financially set. Gasoline will not change them that much. By the way, take a look at their class a diesel. 365,000. It is tricked out. That is the one, dagen, you have to get eckstein. Just teach me how to drive it. Connell pick a lane. Dagen start small. Like a tractor first. Connell Stuart Varney could teach you that. Dagen he knows how to drive a lawnmower. That is a lawnmower not a tractor. Actually, when you are like wearing sandals on a lawnmower. No. And then you take a picture of yourself doing it. No. Connell residents of utah catching a break. This is in the Salt Lake City valley. Dagen working hard for a higher education. Take a look at how the dollar is holding up against world currencies today. At 23 minutes past the hour i have your fox news minute. Violence is continuing and egypt. More than 50 people have been killed in protests that began friday. The twoYear Anniversary of the uprising that toppled the then president. Police have arrested three people following the deaths more than 230 people in brazil. A band member lit a flare onstage resulting in mass panic as patriots fly to the one exit. A stretch of the Mississippi River is closed to shift traffic as crews worked to cleanup and oil week. A tugboat pushing two barges. A railroad bridge. Those are your news headlines. Now back to connell. Connell thank you very much, lauren. Doctors telling people to just work from home. Regulators are blaming something called temperature and virgin. No wind and cold temperatures dropped to tenth in the valley. The epa has already labeled the Salt Lake City region to having the worst air for the month of january. This is the new normal. The number of americans with bachelors degrees grew by 25 to 41 million from 2002 to 2012. Google plus had nearly 350 million active users at the end of last year. While that is still way behind facebook, it was enough to pass another google social site, youtube. Twitter, by the way, was fourth. Dagen to receive information rather than deliver it. Connell i get a lot of stuff off of twitter. I have facebook, but it is annoying. Dagen you are the one that post pictures of you play badminton. Connell that is a good joke. Dagen you never know. I could see you play badminton. Paul ryan with a bit of a surprise over the weekend. If bill clinton was still president , we would be done dealing with the financial mess that we are in. Connell researchers are taking what is a controversial step of a new strain of the bird flu. Much more still to come on markets now. Lets take a look at some of the winners on the s p 500. Dagen congressman paul ryan says if bill clinton was still in the white house, we would already be done dealing with this financial mess. Black rock jumping in and buying a stake in twitter. Controversy over research that would enable the bird flu to be transmitted from person to person. We will dig into that. Connell as we do every 15 minutes, lets go to the New York Stock Exchange. Nicole petallides looking at caterpillar. Nicole worth about 15 positive dow points. It is up 2. 2 right now. Very busy here for caterpillar. They did have a tough quarter. Tough economy. They did have a lot of inventory that they try to cut into a little bit. That outlook here seems to be a little bit better. They are on strategy and keeping online. That is good news for caterpillar. Right now, the dow is sitting in positive territory. Up 11 of the last 12 trading days. And the nasdaq composite higher by two tenths of 1 . That is the latest here on the floor of the exchange. Dagen thank you, nicole. Would this fiscal cliff best rdp resolved if bill clinton was in the white house . I think we would have fixed this fiscal mess by now. That is not the kind of presidency that we are dealing with right now. Dagen brought their is here with us now. Maybe he is just trying to say, hey, i can work with democrats, just not the one that is their. This administration is so much not dealing with the issues like deficit and debt. If they were still around, this would not be an issue. He could do with them. He could work with them. He could get it done. Just by signaling that, i think it sends a message that it is not as president obama says that the republicans are so extreme on these issues, paul ryan is sending the message that it is actually president obama that is extreme and not dealing with these issues. I think that is the message that they are sending. Dagen do you think that the state of the Union Address will take on those critics and address it . It would certainly have to with the president skipping over it in the inaugural speech. You would think it would have to be specific. However, we thought you would have to address the issues after the 2010 shellacking, in the president s words, when the republicans took over the control. The president spent very little time on entitlement reform. I think it will be interesting to see. I think you see the choice that this administration makes. Dagen i fixated on longerterm Interest Rates. That, again, is how much it cost this country to borrow from around the world. Look at that ten year yield today. It is back above 2 . That will be the thing that forces lawmakers to act. That is the thing that everyone is fixated on. How the Federal Reserve has fixated into this, i mean, these rates are historically low. The interest we pay on the National Debt suddenly skyrockets and what we put out every day on Interest Payments alone will then overtake us as a nation eventually. That is a point that Interest Rates start to go up and up and up. Our interest on the debt payment will be something that will be hard to handle. Dagen he was just asking about it, but you do not get a sense of urgency. You do not get a sense of worry. We can borrow at these rates until we just cannot anymore. This day could arrive much quicker and much sooner than people would think. I talked to a lot of democrats on capitol hill who think that this normal is the new normal. Boy, i tell you, there are many economists out there that say it is not likely that you can keep this balancing act and all the plates spinning on all of these, you know, polls all over the place for that long. Dagen it was great to talk to you. Made me a little nervous. Great to see you. Bret baier. You can catch him every weeknight 6 00 p. M. Eastern time on the fox news channel. Take care of herself. Connell researchers want to mutate the bird virus. They say it is all an effort to come up with a vaccine. Dagen we were talking about twitter all power. Tenyear treasury. It is above 2 earlier today for the First Time Since last april. People are dumping bonds. How high can it go. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Maybe you want to incorporate a business. Orrotect your family with a will or living trust. And youd like the help of an attorney. At legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. Get started at legalzoom. Com today. And now youre protected. I have your fox business brief. Orders jumped more than expected in december. That is thanks in part for a large amount of orders for boeing aircraft. If you factor out the transportation component, orders were up 1. 3 . That also tops share expectations. Shares of yahoo are relatively flat. The company is expected to report a profit of more than 22 million. General motors dropped to second place while volkswagen came in third. That is the latest from the fox business network. Giving you the power to prosper. [ laughter ] connell we were all just talking about how cute the little kid is in the bowls leg and super bowl commercial. Vw is back for the fourth consecutive year. This year the theme is get happy. Is it even close in terms of accuracy, 10 million . Not going to go into the numbers specifically. I think you have to see the super bowl and context of all of the communication going on. The super bowl is certainly one of those key moments. It does help fit with everything you do as a brand. We reported that 3. 82 million spot. You do some speculation and say, well, that is a lot of money. What metrics do you use to calculate whether it i