From Cyber Attacks. The president issuing an executive order to help america fight back against attackers. Does the plan go far enough . Michael chertoff joins us with more. Lori is hiking the minimum wage a problem . Fighting back against president obamas plan to raise the minimum wage by 1. 25 per hour. Melissa postmaster general warning it may need 45 billion bailout if congress doesnt act now. Oh, boy. Lori oh, boy. Stocks now as we do every 15 minutes. Lets check in with Nicole Petallides. The dow pulling back after yesterdays record high. Nicole that is right. We are off of lower lows of the day, but yesterday closed with a record high close that we havent seen since 2007. We have been hovering around 14,000 mark for the Dow Jones Industrial average. The bank index and drug index or lower although one of the names doing well in the Dow Jones Industrial. The banks doing very well. Last friday is where we broke out and started this trend. Yesterday we continued, today pulling back a little bit which is not unusual and doesnt surprise the traders here on wall street. A oneyear chart for the Dow Jones Industrials and that is where you see the stocks breakout led by these groups. Today keeping an eye on the dollar, for the most part so far so good, the traders call the s follow thes p. Lori thanks, nicole. Despite being in the red today, the dow and s p are both up more than 6 so far this year but my next guest says stocks are still reasonably priced. David, always great to see you. Where do you think the market is headed . I think by the end of the year expects to see us may be close to 1600 or so. Beginning of the year i was a little bit late on that. Maybe 1550. But we have come out of the start of the new year so robust, it is very well within reach. Earnings look like they are going to grow. If we can just get beyond some of these political uncertainties in the weeks ahead, the economy will be ultimately growing around 2. 5 pace. Lori youre not worried about the negative Fourth Quarter we had a little bit earlier and the pullback on the dow doesnt concern you all that much. How would you strategize around the political scene in washington . Would you be buying right now . I would not be buying quite yet. Im so expecting a little bit of a pullback, maybe something in the lines of two, three, 5 at the most. We havent gotten it. The market continues to want to go higher, but as we go closer to the sequester kicking in, and i suspect it will, that will be a little bit of a head wind for the market. Ultimately i suspect they will do something to avert the worst of the cuts, but while that is being debated i expect the market to struggle a little bit in the short run. Lori when it is time to dip in after the deadlines in washington, what industries in particular would you be most interested in . I think the Global Economy is in the early stages of an upturn, so i think you want to build a little bit more in your portfolio. The defensive categories have been the best place to be in the past. Going forward that leadership is going to change. You mentioned earlier the financials look good to me. Technology is an interesting one. Tech is doing well, i think there is more to go. A little more Economic Sensitivity is the way to do with. Lori apple fell 2. 5 yesterday. We think apple is a unique story, not a bellwether . No, i dont. If you back it out, doing better than the Broader Market so i think there is a lot of pentup demand particularly in the enterprise side for an upgrade cycle that hasnt happened yet, Companies Reluctant to spend. That will loosen up in the second half of the year. Lori any ideas after listening to the state of the union last night . Just from listening . I was encouraged by that mention, particularly when the president indicated the licensing process needs to be speeded up. I think it is terrific because obviously were having an abundance of it. More than enough to set the domestic needs up. I would like to build some facilities for export, pipelines domestically. The whole story is an extraordinary one and im glad to see the president at least gave it a little bit of a nod. Lori always a pleasure. Thank you. Melissa president obama signing a negative order to defend against cyber attack so what does the plan entail . Peter barnes with all the details. Peter the president pushing for a private defense strategy, it did program to fight attacks on government and corporate computer systems, especially computers in the nations Critical Infrastructure. Recent Cyber Attacks against the washington post, new york times, wall street journal and twitter have highlighted the issue, chinese hackers suspected in most of these attacks, but building a unified National CyberSecurity Program has been hung up by concerns of some companies over their privacy and customers privacy, protectionn3 of their intellectual privacy, backdoor government mandates and Liability Protection for businesses that share Computer Security information. As a result, the government is moving cautiously with corporate america. It is your framework, not ours. The goal for the private sector to produce security responsive framework to proceed. Leader to get the ball rolling, the new executive order would allow government intelligence agencies to start sharing more information with companies on a voluntary basis but the government itself updated its own standards and the administration is seeking legislation from congress to create broader Cyber Security safeguards. Melissa peter barnes, thank you so much. Criticism mounting against the Cyber Security order you just heard about. Some say the president backed off earlier drafts with much stricter regulations. Former secretary of homeland security, michael chertoff, joins me now. Thank you so much for coming on. Lets get right to it. The specific criticism is an earlier draft of the executive order had required the industry come up with the best practices standards and that Regulatory Agency would be assigned to go in and enforce that, it was taken out because they were lobbyists in the last minute that pressure the president into excluding that. What do you think of that charge . Executive order is an important step, but it is not a final step. It can only really address what the u. S. Government does and does not do, cannot make congress have to do something. I think the effort here is to move forward with a collaborative process in which the private sector works with the government so they are not facing unrealistic mandate. Also to make sure we are raising our game in terms of defense all across the Critical Infrastructure. Congress will have to act to really complete the process. Melissa what you think about practices that there would be some federal agency that enforces it. That sounds like the sec trying to deal with and monitor trading and although there are many flaws and problems, please there is a revelatory body out with a set of rules enforcing them. Would that work when applied to Cyber Security . In certain areas of the economy we already have preparatory agencies that have looked at Cyber Security and have made it part of what the requirements are. Other parts of Critical Infrastructure dont have those kind of revelatory bodies, so youre going to have to even it out. The executive order does ask the revelatory bodies that exist to incorporate Cyber Security into what it is very clear, but it is going to have to be more than those agencies. Melissa would like to see them set standards and enforce it . Yes or no . Speak a good idea would you hae each sector set the standards appropriate for that sector and i think that is the model considered both by congress and the executive branch. Melissa the other concern is if you asked banks and the like to collaborate with the government with what the security is in what they talk about with compromises consumers personal information, are we justified in being afraid of that . Was covered by this Consumer Information are the attacks. People who steal the information. The way to protect that information is those who have Cyber Security. You want to make sure you are not identifying the residuals unnecessarily, but privacy is protected by security, not threatened by securities. Melissa is it reasonable to expect that . The bank would not be able to identify you personally to share the information without sharing too much . You know how it works. They want to know what are the characteristics of the attack, with the signature. What is the ip address in which the attack was launched. Dont geyou dont need Consumer Information community to know what the bad guys are doing and that is what will be shared. Melissa how vulnerable are we . This topic gets so much attention, but a lot of us are fuzzy on the exact details on how vulnerable we really are because when they attack a website or money isnt necessarily stolen, somebody steps in to stop them in time or there is insurance for that. I dont feel personally vulnerable. Should we . There are billions of dollars of intellectual property is being stolen every year from these countries. There are billions of dollars in fraud being carried out. While the chance of any given individual being a victim and not be very high, to look at the major important sectors of the economy having a real negative impact. It is like a job killing attack where intellectual property is exported illegally overseas and used by other companies in other countries to produce goods and services. Melissa secretary michael chertoff, thank you for coming on today. We appreciate your advice. Lori appreciate it, but my stomach is queasy now. We should feel vulnerable with all the information out there. Good information. As a payroll tax hike squeezing consumers . The latest readings on retail sales straight ahead. Melissa did you know tomorrow is valentines day . The ceo joins us with how sales are looking ahead of the crucial holidays. Lori speaking of shiny medals. Maybe you will be lucky enough to get some for valentines day. Gold down 4 per ounce today. We are back after this. Melissa as we do every 15 minutes, lets check the markets. Nicole petallides on for the New York Stock Exchange with reaction to the retail sales report. Nicole we talk about retail sales, shows how resilient the consumer has been as of late. They were slightly better than what has been expected, and while we take a look, looking at the fund, a basket of these retailers all put together. When you look at most of the fans together, they are not too far off the unchanged line, but these are retail sales picking up onetenth of 1 in the month of january over discover. Look at how it is faring. Virtually flat, which is what a lot of retailers are doing, many of them are up. 5 are down. 5. Over the longerterm come you can see there is a great fiveyear chart showing you we have the retailers jumping and coming off of the lows for the year ago period this is what we focus on when the retail index is slightly on the upside. Another way to gauge how the retailers are faring in the shows once again the American Consumer is very clear and despite the economy. Melissa thank you so much. Lori dont ever count out the good old american spender. Melissa there you go, that is you. Lori you have some thoughts on the market. Charles i would not say anxiety, uncertainty and little bit of anxiety. 14,000, every time we get around it, the thought is the catalyst to get us over and get us moving. We have had a whole lot of wouldbe catalyst, consumer confidence, nicole just talked about retail sales soso at best. It just hasnt been enough. Very stubborn resistance level and the irony in my mind is once we get through all of this, there is no news, that might be where we see they reveal themselves. That might actually end up being the catalyst. But the idea but keep on waiting on some news to send us over the top, i have seen this happen a lot with the market, i really have. Melissa it has no relationship to the economy except they know ben bernanke targeting the Unemployment Rate and they feel safe, long has were nowhere close to going back to 6 , the fed will keep the money easing in. They want of employment to stay right where it is. Charles that does make the jobs number a conundrum. The market actually goes down rather than up to your point, however i dont think the ben bernanke money printing has infected the stock market to the degree it will. I still think the banks are hoarding the money, cleaning up the books with someone at the Housing Market but dont see that hitting the stock market. Melissa you cant get any return on bonds. Charles people have been pretty comfortable on the sidelines. I dont know that has happened yet, all those things i see down the road. The real alltime high numbers has to be 685. Lori the battle between herbalife is set to take stage this afternoon. Charlie gasparino details next. Melissa 45 billion in debt in four years, warning from the u. S. Postal service pleading for congress to act, we are live on capitol hill coming up next. 22 minutes past the hour, hello, everybody. Your fox news minute. At the vatican, Pope Benedict is resigning for the good of the church. Presiding over Ash Wednesday services before stepping down at the end of this month. The Coroners Office study remains to see if a body found is that of former lapd cop and suspected cop killer Christopher Dorner. Associated press is reporting a drivers license with his name has been found inside the burnedout cabin where he is believed to have died in yesterdays shootout. In comparing the use of drones to partake. Noble peace prize lawyer is saying he is deeply disturbed only drone strikes against americas might get judicial review. Saying it is like, in his words, dehumanizing. That is a quick look at the headlines making news this hour. Back to melissa and lori with mh more. Melissa thank you so much. Breaking news, forbes reporting time warner is in talks to sell the publishing business. Check out the shares of the media giant initially jumping on the news, up 0. 17. A meeting of the buyers representatives have been scheduled for today to discuss a potential deal, which is still in the early stages. Lori we shall see. Treasury secretary nominee jack lew facing tough questions on personal investment and time while at citigroup. Senate finance committee during the confirmation hearing. Rich edson on capitol hill with the latest. Rich given the 2012 campaign president obama criticized mitt romney for private equity and a number of other issues dealing with compensation, overseas accounts and investments, jack lew had a couple of issues here leading republicans to say it is a hypocritical pick for treasury. Jack lew had a Venture Capitalist investment organized in the Cayman Islands, to that he says he didnt know it was organized in the Cayman Islands, he was transparent on it and recorded it on his taxes. He took a bonus from citi, taking taxpayer money. To that, he said was a private firm, he had nothing to do with investments in instead ran the business of the business. Also a lengthy conversation about tax reform and lew says there is room in that process to raise taxes. I think there is still more work to be done in terms of the physical path and we need more revenue to be part of it. I think separate from that there is a need to do tax reform and in clearing out the tax code and running the base, there is room to raise revenue that we need. Rich lew says it should be reformed. He talked about a minimum worldwide tax rate but didnt get specific on that. Also says and comes to clearing out tax deductions, the federal government and Congress Must consider what business Tax Investments in with business tax loopholes can be closed but dont necessarily give an advantage to companies for coming here. Basically said oil and gas is an example of that because oil and Gas Companies will not move overseas because the resources underneath u. S. Soil. Back to you. Melissa rich edson, as always, thanks. U. S. Postal service has wrapped up with a record loss of over 15 early in dollars. For 2012. No more saturday mail, what more can the Postal Service d due to save themselves . In washington now with the committee findings. What did they say . Melissa, the postmaster general made a strong case for himself begging congress to untie his hands, allow him to make the post service more competitive and says major changes arent made by congress, taxpayers may have to pick up a very hefty tab. Listen. Melissa it covers acts, can avoid a future scenario in which the Postal Service requires a taxpayer bailout, which could be in excess of 45 billion by 2017. We must change our business models. The post office lost 15 billion last year, losing 25 million everyday. As a business reason, requirement the agency paid 5 billion every year in advance payments for employees Health Retirement benefits. Because of declining revenues and increasing cost, saturday first class mail delivery will be eliminated, sums for the move while others say it is illegal and wolf unfairly impact the elderly, disabled and those in rule areas. Even a senate hearing, two members of the house have very different views on this matter. Last week the Postal Ser