Transcripts For FBC Markets Now 20130311

Lori a very good monday afternoon. I am lori rothman. Melissa i am melissa francis. The dow and the s p and the green. Lori it is a tough sell. Is it time to take another look into bonds . Please say if you blend it, they will come. Ethanol gas is squeezing refiners. How you may be forced to pay for it at the pump. Lori the ryan budget plan. Lets get you set up with the first market check. It is time for markets now. Nicole petallides. Nicole what a day on wall street. Another day and another intraday record highs for the Dow Jones Industrials. You would think the market is overbought. A little too nervous to short the market. Celebration for the polls out there with record highs for the dow. I wanted to also take a look at the vix, the fear index. 1176. Obviously, this fear gauge is a barometer of what people think will be likely over the next 30 days. I wanted to take a look at dow component general electric. Now we are hearing about the nominations for a board member. That would be mary schapiro. She has obviously a lot of knowhow in regulation and Corporate Governance and the like. That will happen on april 24. Back to you. Lori thank you, nicole. Melissa fox business contributor phil flynn of Price Futures Group is in the pits of the cme. I think you have to look at asia, really. Numbers were very disappointing. Later in the day, we got a number out of india that shows auto sales fell 25 from a year earlier. When you look at growth, you always look at asia. When you get numbers like that, it is pretty disappointing. We saw a pretty good ride in rbob gasoline prices. The whole sellers were panic buying this morning. Phillips 66 had a power outage. Look at the crude oil future right now. It was 91 at one time today. We have heating oil down. Gasoline has reversed. Down 0. 2. 03 on the day. Natural gas, small prey keeping game. Could be a sign that spring is coming. Lori my next guest warns investors not to forget about bonds. Bill odonnell. Please do have you joining us once again. Lets start with your take on the selloff last friday after the jobs report. The message of the bond market is expected a strong number, but it was stronger than even the most optimistic economists expected. We did see a good buy with a reach those levels. Lori you are not readjusting your range for the tenure; right . What should we expect for the ten year yield. Arrange roughly around 2. 15 , amy down to 180, 170. That is where support resistance is up. Very strong housing sector. Improving bank and household sheets. All of that helping to lift up above the range that we have, for example, last august and september. We just moved to a higher range. It is true. Lori it is kind of a conundrum. With that surprisingly strong jobs report and you have increased your range, where is the best Entrance Point . Do you see some more buying room . We saw some on friday after the jobs number. We saw some the of sick longduration Fund Managers come in and buy just as they did on february 14 these levels, especially for longer maturity is attracting the eye. I am impressed by the flows. Lori you mentioned the fed keeping rates capped. Are you concerned about risks there . Oh, absolutely. The recent testimony by the fed chairman, as well as another speech, too much squashed those fears. By the same tone token, i would expect that there is still not that what enthusiasm about the 7. 7 Unemployment Rate because a lot of that came from people who left the labor force. Lori i have to do one final question, when to refinance your mortgage. I like the positioning in the treasure market. It is a lot less long. I like the fact that we are up near the top. Anyone looking to refinance their mortgage ought to wait another twofour weeks. You may get another quarter percentage off. Lori rate stuff. Bill odonnell, we will check in again soon. Melissa the budget battle begins tomorrow. Rich edson is in washington with the details. Rich it is more like budget week in washington. For the first time in four years, Senate Democrats will likely unveil a budget plan. The budget contains no tax increases and allows for tax reform. They also claim ryans plan balances the budget within ten years. Ryan says it is up to the present to compromise. Will he resume the Campaign Mode . Will he resume attacking republicans and imputing our motives . Will he sincerely change and try to find Common Ground . That ill we hope happens. Democrats say it is up to republicans. Senate democrats and chairman are expected to lay out their opening position this week. Murrays will contain further tax increases for the wealthy. Back to you. Melissa thanks so much, rich. Scott garrett, peter walsh will face off on the merits of the Budget Proposal hitting capitol hill this week. You do not want to miss that. We are going back. Lori a look at the books. Karl icahn getting a look at dell financials. Challenging the bid to take the company private. Melissa does spring forward have you down . How a nap on the job may boost your productivity. I love it. Lori a power nap. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five sonds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. And his new boss told him two things cook what you love, and save your money. Joe doesnt know it yet, but hell work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. Hell start investing early, hell find se good people to help guide him, and hell set money aside from his first day of work to his last, which isnt rocket science. Its just common sense. From td ameritrade. Melissa it is time to make money with charles payne. A stock that will have you rolling in dough. Charles and lot of people have a bad taste in their mouth. They had that accounting scandal. That is when the stock was high. The books were a little cooked, if you will. Her next level could take it i would like to see wall street on board a little bit they have crazy flavors. But go to their website. Melissa i remember that. Charles they are doing very well. They still have a real negative feeling towards it. Lori we will have to get more details on that. Just bring on the bottom of your screen. Nicole some of these analyst calls. Taking a look at best buy. The shares have been edging higher. Up about a half of 1 at 20. 25. The price target is currently now raised to 26 up from 10. There is a year to date chart on best buy. They have bullish sentiment. New management is in the very early stages of a multi year turnaround. Lets talk about apple. Apple that has been under some pressure. Down about 1 . There are concerns about iphone sale trends that we have been seeing. Some concerns there. In the meantime, we are hearing that samsung has some new features. I scrolling technology. That is reportedly a new feature on the samsung galaxy. Back to you. Lori you know all the tricks to the trade, nicole. We understand that three earthquakes above the 5. 0 magnitude level has rattled california. No damage has been reported at this time. We will continue to keep you posted. Melissa karl icahn has signed a confidentiality form with dell. Last week icon wrote those board a letter saying he had taken a substantial pace in the pc maker. The committee currently conducting has said it would welcome icon to participate in the process. Lori avoiding the tax man. Corporate profits stashed overseas. It is growing. Melissa sun, sand and oil. Drillers setting their eyes on paradise. Details ahead. 21 minutes past the hour rail. This is your fox news minute. Former mayor convicted of corruption charges including federal racketeering. Kilpatrick had been accused of widespread corruption. Company patrick resigned from office in 2008. About 10,000 south korean and 3000 american troops are taking part in military drills right now. North korea reportedly nullified the 16yearold that ended the european war. Choosing a successor to Pope Benedict gets underway tomorrow. The cardinals have voted to wrap up their preconclave nomination. I am jamie colby and those are your News Headlines on the Fox Business Network. Back to melissa and lori. Lori thank you. Stashing cash overseas. Here is elizabeth mcdonnell. Liz the tax rate is 35 . That is where the debate is. The e is the leader here. 108 billion. 70 of the cash overseas. That is why David Einhorn is saying bring the cash back. We need those revenues overseas. Honeywell is saying more than half of its revenue is overseas. You are housing your patents and your copyrights on purpose overseas to avoid taxes. Why not bring it home. Both sides are coming in on this. Here is the president last week saying a new statement about raising Corporate Taxes and overseas profit. We need to make our tax code more competitive. Ending tax breaks for companies shipping jobs overseas. Liz the president has already said he wanted Corporate Tax reform. This is what he wants. We know that dividend taxes have gone up. Melissa that does not sound like the same thing he just said. That is jobs not cash. Liz he is equating higher taxes which jobs here in the United States. Ill tell you something, you know, this is a big debate in washington, d. C. Exxon mobil paid a huge tax bill. When they had a tax holiday and this is what apple and other Tech Companies want melissa everybody always says it does not work unless they are permanent. Liz that is where the debate is right now. Dividend taxes have gone up. This is a debate that is heating up. Lori do, liz. Melissa the search for oil has headed toward the tropics. It is substantial oil reserves. For Oil Production could be on the horizon. The Bahama Petroleum country will be heading the project. Look at that beautiful water. Offshore drilling has been a hot button issue. Lori you kind of sound like you need a vacation, my dear. Melissa i love the idea. All right. Big plans for ethanol backfiring as refiners are forced. We will tell you why you may pay more at the pump. That is next. Lori also take a look at the of and downs on the dow. We are back after this. Friday night, buddy. You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. I took my son fishing every year. We had a great spot, not easy to find, but worth it. 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[ male announcer ] if you nt afrd your medication, astrazeneca may be able to help. Lori how about another edition of stocks now . As we do every 15 minutes, back to the floor of the New York Stock Exchange and Nicole Petallides. The dow is climbing ever so higher. Now at session highs with a gain of 40 points. It is Pretty Amazing to watch the Dow Jones Industrials up 40 points at 14,437 and change. Weve seen many names on the dow with up arrows. Some are hitting multiyear highs, annual highs. That includes 3m, j j, disney, american express, boeing and united technologies. Fedex another name hitting a multiyear high. I want to look at Genworth Financial a name were following on the s p 500. It is at a 52week high. Well add to the list of highs. At barons, they are raising it to upgrade from second outoutperform from a sector underperform. Barons over the weekend noting that the companys stock could double and mortgage and health care pricing. Noting new leadership at the company as a positive catalyst. As i talk about Genworth Financial i should note it is the number one performer in the s p 500 index today, helping it along. Back to you. Lori a lot of good info as always, nicole. Thank you. Melissa gas prices coming down slightly in the past week but could a u. S. Ethanol mandate send them shooting back up . A 2007 law requires u. S. Refiners to blend more ethanol into gas even each year. In order to monitor this increase, the epa requires that each gallon of renewable fuel produced have a unique number attached to it. It is called the rin. Like a credit. If a refiner cant meet the ethanol target it can purchase the rin as the requirement purchases above the 10 mark blending hit the wall and price of credits or the runs are hitting through the roof. What does it all mean . John kingston, global director of news at plats. This is what confused me about the article in the wall street journal but weve talked about this, but if youre producing ethanol already, why do you also get the credit and how us did it work . The surplus was a credit banked to serve future needs. That ethanol bank is rapidly drawn down as the renewable fuel standard rises, amount of gasoline consumed in the country drops and you mentioned the wall, the wall in this country is 10 . That is generally amount considered safe for automobiles. The ethanol industry, Renewable Fuels association would disagree, almost everybody looking at dispassionate point of view, sees there is 10 blend wall. With decline in gasoline consumption, rise in renewable fuel standards youre starting to push against that the activity in the rins market is frenetic last couple weeks is get everybody ready for next year. Melissa i have a bunch of questions you said. I dont have to have as much ethanol as it says it does if i have the credits . You can blend 8 credits. Melissa is that say at pump. It says 10 ethanol. Melissa it may not. Contains ethanol and a lot of rins. Is might contain ethanol. No reason not to. A question of companies and operations and what kind of balance they have. It will vary from company to company. I was speaking to a person, some companies are up against the limits and others have fair amount of room. Melissa you can purchase these things on the market instead of putting more ethanol in. One reasons why refiners dont want to sell ethanol in it, there are bunch reasons. People dont like gas with more than 10 ethanol. There is big pushback. Even aaa said it is not safe to put ethanol than greater than 10 if your car that not flexfuel vehicle. Aaa is very clear. However it is a little murky. Melissa you but government is still mandating . The government doesnt mandate 10 . That is the problem the government mandates a flat number. The number is rising consistently. Melissa as our demand for fuel drops the number is staying the same some abouting larger than 10 by default. That is the run crunch point. If the government were to say, okay well take last years gasoline consumption and renewable fuel standard for following year is 10 you really wouldnt have this problem. Where this, this is all sound very difficulty and obscure where this could result in some impact on consumers it will hit in imports. U. S. Is net product exporter but some part of the country still a significant importer of gasoline. If youre an exporter of gasoline yearoveryear you look at your economics. Your economics now, im going to send gasoline over to the u. S. But i too have to meet the renewable standard. Now i have to buy rins at whatever price. That price may destroy the margin of sending the shipment over. That is number one. Number two, if youre a u. S. Producer and the economics are not food you might decide to export it rather than use it here. This sounds all very up in the clouds and, inside baseball but this is where it could start to affect supplies. Melissa from here, how much of an impact could it have on the price for consumers . I dont know where. Last weeks an executive from marathon said it added ten cents a gallon i dont agree with. Melissa too high. I think so. I dont know when it will start to impact. I dont know that it is linear. There is actually a final rule for 2013 renewable fuel standard has not been finalized. I wonder if the epa is listening to all this, thinking you know what . Maybe we should bring it down a little bit. Melissa right. There could be relief on that. This all happened in the last few weeks. Melissa yeah. So its a, funny happened in the last few weeks but everybody knew it was going to happen some day. It was a question of when. Melissa question when we got to the point when demand is falling so much and things pop up. All of sudden you have the price and this is a bizarre situation where the government getting involved in the market trying to gerry rig it one way or the other eventually has unintended consequences. They assumed gasoline consumption in the 2007, the gasoline consumption in the u. S. Would rise ad infinitum. That has not happened. Were down significantly. Nobody forecast this. But the rule making or rules have not really reacted to that. The epa will have a chance this year when they finalize the 2013 rules, to lower it and say, you know what we are losing less gasoline. Melissa a complicated issue. You made it understandable for us. We appreciate it. Okay. Lori this news alert. The race for the presidency in venezuela really heating up. Acting president Nicholas Maduro and enrique caprillas launched scathing attacks against one another even as mourners line up to view former president hugo chavezs body. Tte election is more than a month away set to take place april 14th. Maduro is seen as the favorite. Thousands of his supporters filled the streets of caracas pledging their support especially since hugo chavez handpicked him to succeed. Melissa so much for a smooth handover. Lori never happens. That was Wishful Thinking especially in venezuela. Melissa it is going to be interesting to see how it plays out what it means for the Energy Market what we were just talking about. From the anchor desk to the boardroom, Morgan Stanley is in talks to an addition to executive management team. Charlie gasparino is here with exclusive details next. Lori sleeping on the job . We dont do that. Melissa come on. Lori letting workers catch a few zs in the hopes of boosting productivity. Melissa how nice. Lori that story is ahead. Its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, glal Broadband Network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Good afternoon, im sandra smith with your fox business previous the bluechips extending last weeks rally today scoring another record intraday high. The Dow Jones Industrial average up about 42 points at 14,439. Casual dining restaurant chain dennys dropping the expansion plans in southern china. The company was planning to develop 50 franchise restaurants with Great China International group over the next 15 years, the first of which was supposed to open this year. Dennys has not provided details why this deal was terminated. Hostess brands creditor Silver Point Capital and hedge Fund Reportedly expressed interest in buying hostess snack cake brands including those twinkies according to the new york post. Private equity firms apollo, Global Management and cd set a minimum offer of 410 million in january to buy the unit. Thats the latest lori Morgan Stanley in talks to make an addition to its executive management team. Fox business Senior Correspondent Charlie Gasparino joins us with exclusive details on the telephone. Hey, charlie. Hey, guys. We should point out there is no word yet from Morgan Stanley on anytiming or whether the talks somehow broke off. I dont think that is going to happen, to bring in Gary Kaminsky, former top money manager at Neuberger Berman. Most recently i guess the Capital Markets editor of to be specific of cnbc. No word when that will be announced. We understand they are in the middle of finalizing the deal if it breaks off, it breaks off because they couldnt agree on dotting this and crossing the ts. In all luckily hood gary will join Morgan Stanley tomorrow as vice chairman of its brokerage department. There is lot of interesting aspects to this story. Lets break it down what is the most important. The most important thing for Morgan Stanley and people who own the stock is this. James kborm man has a plan basically to make Morgan Stanley the most profitable and bestrun Brokerage Firm in the country. They have roughly 18,000 brokers. The largest Brokerage Firm. They want to do that through sort of synergies with other parts of the firm. That is where gary will come in. He will try to make the Investment Bankers work with the brokers. For example, or the brokers work with the Investment Bankers. Brokers especially at Morgan Stanley deal with High Net Worth indivduals, people that own small companies. They want to keep the deal flow from those Companies Inside Morgan Stanley rather than send it out to earth firms. That is part what he is going to be doing. Clearly its a big job. You can clearly say that if this thing does happen, this one of the biggest jobs on wall street and maybe one of the most important and heres why. You know, we deal with small investors. Morgan stanley deals with more small investors than anybody on wall street with that brokerage division. Gary will be reporting right to Craig Fleming who runs it and he will be a key part of that management. This is a pretty big deal if it happens. Im only qualifying, listen, ive been covering deals and dealmakers all the time. You know there are lastminute things that blow things up. If i was betting man i would say, this is not going to blow up but you never know. Lori and, charlie . Yes. Lori speaking of big name dropping there is talk here Warren Buffett may have had something to do with all of this. I dont think so. I mean, i dont think you leave a big, a job like at cnbc and take a job at Morgan Stanley because of Warren Buffett. As you know, Warren Buffett disagreed vehemently with something Gary Kaminsky said on the air. I think gary was more right than wrong. Cnbc issued an apology essentially for it. It had to do with whether buffett and berkshire buy back stock. When gary said is that, Warren Buffett is somewhat hypocritical. He was talking about it is great, how jpmorgan was doing a stock buyback or another firm, that buffett made the comment on cnbc. Gary said that was somewhat hypocritical, buffett never, nevers buys back stocks. Baloney, i bought back stocks once 20 years ago. You get the point. Lori absolutely. Cnbc came in and issued an apology and i think there were obviously hard feelings there. I dont think thats the reason why he took this job. This is a damn good job if it works out for him. Lori id say. Thanks for details on it. Charlie gasparino. Melissa as we do ever 15 minutes, and check the markets. Nicole at the New York Stock Exchange. Youre watching major movers. Yes indeed i am. Blackberry. Dont call it research in motion. That is old news. It continues to gain throughout the day. Tomorrow is the finally the day you can order the new z10, the blackberry z ten everybody was eagerly awaiting the products. You can go in the store on march 22nd and make the purchase. What is announced on january 30th is finally coming to fruition and get in there to buy this thing. Everybody waited a year and a half for this one at least. Obviously big news for blackberry. As a result were seeing the stock get an incredible pop on this launch news. Dicks sporting goods, this is different picture. Down arrows, under incredible pressure for dicks sporting goods. They came with profits completely under analyst estimates. They misjudged cold winter weather. That was mild and didnt make sales they anticipated. The stock is down over 5. As i noted a 10 drop much back to you. Lori dont count out blackberry just yet. Thats for sure. Nicole, thanks. Workers all over america facing a daily wave of afternoon fatigue. Employers are fighting back with nap time. Melissa i love it. Lori is this Nursery School or Corporate America . I dont know. Anyway one firm in paramus, new jersey, modeled an unused closet with a recliner, a fountain and a bamboo rug to help its 20 employees fight those midday crashes. But now time is only a small step in curing what some experts call a National Epidemic of deep deprivation. Nearly 43 of the americans, ages 13 to 64 say they rarely get a good nights sleep on weeknights that is according to the National Sleep foundation. Other weekstarved commuters go for longer commutes for another hour of shuteye. People end up with diabetes and depression and sounds Like Companies take notice. Melissa you could go in the closet to take a nap . How long can you go in there . I need two hours. How would that work snut. Lori i dont think somebody would even bling. Turn off the lights or look away from the kmuter that is enough to refresh you. Melissa are you napping in your office and i dont know about that . Lori either that run across the street to starbucks for a caffeine hit that is my vice. Melissa there you go. If you were watching last hour you missed an exclusive interview with celebrity chef bobby flay. Cheryl casone talked to him about his companys expansion plans and why owe is waiting to open a location of his burger chain in new york city. Take a listen. Very expensive to build a restaurant here. So much so that the 10 check average at bobbys burger palace. It would take a lot of 10 check averages to pay the rent. Not to say we wouldnt do it. At some point i will have to make my wife happy. She keeps saying to me every time i want a burger i have to go to paramus to the burger palace . Melissa he talked about the rising price of beef and how it is affecting his business. He is not ready to pass those costs to consumers. Lori that is a good way to fight fatigue. Eat well. Has to be more of a priority. Did we learn any lessons from the Great Recession . Too big to fail is back in the headlines on a new push in washington break up the banks. Melissa walking the walk and talking the talk, a look at googles talking shoe. Can you get your hands on them . Melissa too big to fail back in the spotlight as banks face a second round of stress tests from the fed. Peter barnes is in washington, d. C. With more. Peter . Thats right, melissa. Big banks will be under the microscope all week in washington on too big to fail. The fed will announce Bank Capital Plans on thursday for the 18 largest banks that just went through those stress tests. A House Committee will hold a hearing thursday on too big to fail. A Senate Committee holds a hearing friday on jpmorgan chases 6 billion trading loss with the london whale and big bank critic, richard fisher, president of the dallas fed will hammer big banks again in another speech on friday. To critics like fisher, too big to fail that the big banks will get government bailouts if they get in trouble and all that gives them competitive advantages. Doddfrank financial reform was supposed to fix all this. Critics say it did not go far enough. They Want Congress to step in to break up the big banks which are pushing back. Force the banks to spin off the trading operations, simplify their operations. Split up the conventional banking and this crazy wall street risktaking. That is what we saw 50 years or 60 years under glasssteagall. We saw that kind of split between wall street speculation and conventional banking. We need to restore Something Like that. We serve a lot of global customers. So breaking up the u. S. Banks would force those customers, nonbanks, to look elsewhere to do business. And that puts, again, puts us, u. S. Banks, at a competitive disadvantage. And handful of lawmakers are are proposing legislation to put limits on big banks an even break them up. But the legislation faces uphill fight in congress because of intense big bank opposition. Melissa . Melissa pete, thanks very much. Lori they oppose, really . Yeah. Lori first was google glass. Now google introducing a talking shoe. Cant wait to see this to showcase its advertising program. It was created in cooperation with zack lieber. It has a pressure sensor, gyroscope, speaker and bloo tooth technology. They have a experiment with new social media and can develop you a personality and motivate you to move for. No way. It is a promotion emotional item and wont be available in stores. Melissa all you need a shoe chatting at you to run faster. Lori technology is going crazy. Melissa coming up tonight on money, elizabeth petrikas and her attorney will join me first on fox interview about a precedentsetting decision a judge made to throw out the prenup with her husband. He said he would force her to sign a prenup he would tear it up as soon as they had a wedding and or had kids, based on that, the judge threw it out. It is totally precedent setting, if you think you have a prenup, you may not. You want to watch 5 00 p. M. Eastern here on fox business. Its new law. Really astounding. Lori sorry to chuckle on peoples misfortune. Melissa i almost required a prenup but then i said it was rude. Lori all is wonderful love and war in my house. Coming up one big money strategist says stocks have more room to run. Raymond james has strategy for investing in the record market. Tracy byrnes and Ashley Webster take you through the next hour of markets now. Dont miss it. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gas turbines are now powering some of americas biggest cities. Siemens. Answers. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. And make your business dream a reality. train horn vo wherever our trains go, the economy comes to life. Norfolk soutrn. One line, infinite possibilities. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bellinging ]. Youll bust yo brain box. All onhinkorswim from td ameritrade. Tracy good afternoon, im tracy byrnes. Ashley im Ashley Webster. So can the dow make it lucky seven in the win column . Blue chip index is up 35 points at this stage, headed for another record high. Raymond james chief strategist jeff saut says there is eneven more upside for stocks. He will tell us how to play this market coming up straight ahead. Tracy gop congressman paul ryan ups the ante on his new budget plan. It is the best solution for cutting our nations massive debt and will it get anywhere in deeply divided washington . Congressman Scott Garrett and peter welch will debate it this hour. Ashley are wall Street Capital gains about to lure its biggest fish . Billionaire Hedge Fund Manager john paulson may be headed for sunny san juan. Those details are ahead. Tracy it is a big loophole. Im surprised more people havent gone. Ashley perhaps they will now that theyre getting news. Top of the hour. Time for stocks. The dow is up 35 points. Lets head down to the Stock Exchange with Nicole Petallides. Great news for the bulls out there, ashley and tracy. The Dow Jones Industrials once again hitting record intraday high. If we close right here and right now this would be new alltime closing high for the Dow Jones Industrials. Im looking at s p up one quarter of 1 , sitting at multiyear highs sitting at 1554. Nasdaq as well. Were continuing to see the bank stocks doing well. Drug stocks with up arrows as well. Lets take a look at some financials now. Jpmorgan and bank of america, two names in the dow but also citigroup and wells fargo, two names were focusing on in the Banking Industry because those two hit multiyear highs right now. Citigroup at 47. 55, a gain of 1. 8 . The vix, fear index which is a gauge and barometer how people are feeling and volatility, they expect in the s p over the next month or so you are actually seeing it below that 12 mark. It is at 11. 76. Tepid markets and not so much fear and worry. You can see it down 6 1 2 . Back to you. Tracy nicole, well see you in 15 minutes. Breaking news from Charlie Gasparino. Who else. Morgan stanley planning to appoint Gary Kaminsky as the brokerage unit. This is being planned on according to a source well have more 3 00 p. M. Eastern hour on countdown to the closing bell. Tracy gary wendt from Neuberger Berman to cnbc. Back to the business where the money is. Ashley i guess so. Tracy speaking of money, it keeps flowing into Exchange Traded fund that track the s p 500. Will this market momentum push the benchmark index to a record high . Sandy smith with todays trade. Hey, sandy. Talk about the dow record but talk about the s p 500 . This is broader gauge with the stock market. S p is flirting with highs of the session at 1554. Let me quickly remind you where the record high is. 11 points from where it is now hit in october of 2007. 1565 is the closing high to keep in mind there flip the screen. You will see the intraday high to watch is just above there at 15, sorry, 157 of. That is another number to watch 1576. We flirt with alltime highs on the session. As you look at s p 500 yeartodate it is underperforming the dow, 9 this year while the dow is up 10 . When you look at investor interest, this is why market analysts are pouring in to say the Retail Investor could push this over the record edge, simply because they havent been participating in the rally. Theyre measuring this. This is a case in point, index universe. Theyre saying 1. 8 billion of Retail Investor funds have been pouring into the etf. So far in the month of march, only six trading days so far this month. Youre talking about a lot of money. S p etf, tracking the s p 500. That is where investors are flocking to. Other s p etfs to watch, ivv and vvo. Guess what, tracy and ashley . The stocks leading s p 500 rally is netflix, up 95 . Best buy up 70 . Some consumer names and h r block and technology companies, hewlettpackard, micron technology, celgene, a Health Care Company and also dell. Those are the biggest winners so far on the s p. While the dow is flirting with records, keep in mind were getting close with the s p as well. Ashley yes we are. Best buy, dont get it. I dont have a good time in there i dont. Sandra, thank you very much. Our first guest is not concerned about record highs on the market. He says stocks will end thisyear higher than where they are now. Jeff saut, Raymond James chief investment joins us. Jeff, thank you. The last time you were on the program was just prior to the state of the union address, beginning or midfebruary. You expected a five to 7 correction. We really havent seen that. Do you still think were set for a correction . Do we just keep moving higher . Oh, historically thats what you get this far into a buying stampede. I thought the state of the union wrong feetedly by the way would be a catalyst to give you a five to 7 pull back. It was just plain wrong. The buying stampede continues. Dow theory buy signal confirmation when the Dow Jones Industrial average sprinted out to new alltime highs thus confirming what happened with the transportation average in january. The buying power index is getting ready to cross above the selling pressure index. That indicates stocks will be higher a few months from now. All of that said, you are subject to some kind of pullback at any time but i continue to think as i did back then that pullbacks are for buying. Tracy sandra smith just reported there is money going into the s p 500 etfs, which is a good thing. A lot of people worrying that the average retailer is missing this run. So if thats the case then, shouldnt the advice just be get in and who cares when you do . Well, i think you have to be selective on a stock by stock basis unless you are playing the indexes. We just had last week the Raymond James 34th annual institutional conference with nearly 800 Portfolio Managers and over00 companies presenting and 300 companies presenting. It is not just Retail Investors not keeping up with the dow joneses. The institutional crowd has been too cautious for the most part. Theyre sitting on too much cash and theyre underperforming. Your report is exactly right. You could have the tide break here and see a lot more money come piling in on the upside. Ashley at some point it gets too expensive and were reasonably prices some would argue and some would say not, we have more to go, do you have to wait until we see the correction and buy on the dip because these stocks may become overbought . I told people a few weeks ago if were not getting some kind of pullback, what you do you decide how much money you want to commit to equities, say it is 100,000, then you break that into four tranches of 25,000 apiece and commit the First Tranche of 25,000 2 1 2 weeks ago. Then you set a point in time, be it two weeks forward or a month forward where you will commit another 25,000 tranche whether were up or down or so forth. According to dow theory and according to the money flow indicators, this bull has a lot farther to run. Tracy old dollarcost averaginging, right . Buy on the dips. Transport seems to be where youre focusing your attention these days. Kansas city southern, american railcar industries. This is play on the economy as well, isnt it . Yeah. Theyre economic sensitive. Transports actually percentage wise outperformed the dow yeartodate. Kansas city southern, which has a, good rating from our fundamental analyst here at Raymond James, we have been in it for about seven or eight months now and we think its a play on mexico. The mexican median wage in the next couple years is going to be below that of china. And so mexico, the theme is, that mexicos going to be the new china for the u. S. And Kansas City Southern has the fairway or rail beds up from mexico into the heartland. Ashley interesting. Very good stuff. Jeff saut, jeff, thank you so much for joining us. We appreciate it. Its a pleasure. Ashley mexico is the new china. Basically because labor costs are actually less in mexico than they are in china and a lot closer. Right. Hope he is right. Coming up, president obama harshly criticized congressman paul ryans last budget. So how are he and other democrats going to respond to the new one out this week . Congressman Scott Garrett and peter welch will debate that next. Ashley google glass not even on sale to the public yet but one Business Owner is already panning them. Well tell you why next. First time to check how oil is trading at the beginning of the trading week. Were seeing oil slightly lower at 91. 61 a barrel. Well be right back. Its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, global broadbandetwork and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Hes going to apply testosterone to his underarm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your docto and for a 30day free trial, go to axon. Com. Tracy time to make money with charles payne. This hour he is covering chipolte, a tasty stock that may have some vegetaria vegetarianfriendly options. Charles, what is this . The stock is under some pressure, guys. Tofu to the rescue. Tracy no. A little worried because i got to tell you something, tofu has this, this reputation of being good for you, it is starting, people starting to say it is not really good for you anymore, at least the processed version, the american version. When you process you get rid of antinutrients. They say you create toxic carcinogen from high pressure. Problems would be thyroid, weight gain, lethargy. Hair loss. Premature puberty. Cancer brain damage. The guy they hooked up with chipolte Mexican Grill he is no joke. Tracy he is really awesome. Ashley not having any tofu . He makes artesian tofu. What happened was he came here with his family from the vietnamese boat lift. He came here. He was a money manager. All this tofu, it is unrecognizeable and unpalatable to most asians. Ashley ive been saying that for years. Im not asian. Have you really . Ashley yeah. This guy is super star. Written three books on this. And maybe it starting to listen. Starting in the San Francisco area. This is smart place to start. Will it save the stock . They have missed last two Earnings Reports. The stock is off 100 points from the high. I would not jump in. I would like to see them with a pretty good Earnings Report and sort of suggest they righted ship a little bit. One of these stocks ultimately you get back in. Ashley Growth Growth policy, dont they . Triple number of stores. More than any restaurant theyre trying to grow. I think they should. One thing that they doohave, remember what bigtime short, one of these guys who always shorts and masters of the universe shorted it and said taco bell was taking clients from them. I have customers, i dont even consider them in the same realm as taco bell. But i do think it was part of the economy and part of growing pangs and hiccups that come along with it. Im not going back into chipolte Mexican Grill yet. I like this idea. The guy is amazing. Not sure tofu will be answer to their woes but well see. Ashley all right. Tracy on my Cracker Barrel list of places i have never been. It might stay there. You havent been to Cracker Barrel . Tracy Cracker Barrel, nor chipolte. One across the street though. Tracy yeah. They dont let us out. Ashley doesnt go to the gap either. Thank you, charles. Appreciate it. All right. Ashley story about google glasses. Probably wont be available until next year, these glasses. There is lot of buzz about them but one seattle bar already banned them. The 5 point, which is known to be a seedy place according to its owner, wont serve anyone wearing the 1500 glasses. Owner says, people who come in his bar dont want to be known and definitely dont want to be secretly filmed and put on internet. On the bars Facebook Page he is warning in not such nice language a kick in the pants would be encouraged for any violate, to. He admits, maybe part of a joke to have this reaction but he is also serious because he says the bar is a private place. That could be the issue for some of these people who walk in with these glasses. People dont want to be seen. Dont want those people in the bar. Tracy im on the bar owners side on that one. What happens in the bar stays in the bar. Ashley now if youre wearing google glass. There is that. Quarter past the hour. Time to go back to Nicole Petallides on the floor of the New York Stock Exchange. Dow is up 42 points. Well take it. Thats right, another winning day on wall street. Tack in the nasdaq composite which is fractionly in the green. I hear you, nobody wants to be filmed without having to sign a release. Look at Urban Outfitters. Talking about a very popular retailer. Reporting quarterly numbers after the bell. Up one quarter of 1 . Yeartodate Urban Outfitters up 5 . Under their umbrella also, includes anthropology, free people, among other names. But do you have some analysts talking very postively in these last two weeks about Urban Outfitters. Higher today. Back to you. Tracy thank you, nicole. Well see you in 15 minutes. As she mentioned stay tuned for fox business for complete coverage of Urban Outfitters earnings after the bell, 4 00 p. M. Eastern today. Coming up the gops new budget plan, does it have any chance of passing congress . Congressman Scott Garrett and peter welch will debate that next. Ashley first, how is the dollar moving as we kick off a new week . Oil is moving lower. The dollar it is weaker and down against a lot of currencies, including the euro, pound, looney, mexican peso, go figure, yen, weaker against the dollar. Well be right back. 20 minutes past the hour. Im jamie colby. This is your fox news minute. There have been a flurry of earthquakes rattling Southern California within moments of each other. Originally when they struck shortly before 10 00 a. M. Local time they were measured magnitudes above 5. 0. Now they have been downgraded by seismologists. The u. S. Geological survey web site now says they were smaller ranging in magnitudes from 4. 7 to 2. 7. Former detroit qwami kilpatrick convicted today of federal raketeering and other charges. Prosecutors accusing kilpatrick, his father and city contractor of widespread corruption, extorting bribes from contractors, who wanted to keep their city contracts. Those are the News Headlines at this hour on the Fox Business Network. Im jamie colby. I will send it back to ashley and tracy. Ashley jamie, thank you very much. Appreciate it. Sure. Ashley congressman paul ryan revamping his budget plan that drew heavy criticism from president obama last year. The new ryan budget calls for more spending cuts than the last plan, and yes, it would balance the budget much sooner. Rich edson in d. C. With the latest on the ryan budget. Rich. We can expect even more criticism from democrats this time around. Budgets like this are opening negotiating positions. Republicans stake out theirs tomorrow when chairman paul ryan will and democrats will do so later this week, first time in four years. Ryans budget features no tax increases and offers a way forward on overhauling the tax code. Ryans plan balances the budget at some point in ten years. Aids say medicare will be converted for premium support system or voucher system say democrats and he repeals the president S Health Care law. While republicans want to get rid of obamacare, it is likely impossible this congress. The level of spending and revenue of taxation thats embodied in this document really is more important and more of a reflex what republicans are all about than frankly repeal of obamacare and some very sharp cuts to medicare and medicaid. Democrats branded ryans budget dangerous, saying it features deep cuts for the poor and he will terry elderly while protecting the wealthy. On wednesday, chairman patty murray releases her budget. It will likely protect far more Government Spending than ryans plan and include tax increases on wealthier taxpayers. Back to you. Ashley trying to find Common Ground. Rich edson, appreciate it. Lets talk more about this. More expectation around the House Republican proposal. Were joined by republican congressman Scott Garrett of new jersey, democratic congressman peter welch of vermont. Congressman welch i will start with you, first, already everyone is saying this is going nowhere fast. Paul ryan wants to repeal obamacare. Republicans tried this somewhat 35 times to repeal this. Is this going anywhere . No. And i hope he knows that. It is really a dead end. This was a decision of the election. So doubling down on another 35 times of repealing obamacare just gets us going nowhere. Bottom line, there is an opportunity here if the republicans acknowledge that president obama won. The common goal is to get sustainable spending. There is ways to do it. One, clean up totally outrageous tax code. 1. 2 trillion in spending in the form of giveways, often times to special interests. We ought to eliminate that. Or rein it in. And then secondly. There are things we can do to Reform Health care. Have Prescription Drug price negotiation that would save medicare and taxpayers 160 billion which would be a substantial savings. Thats through just having price negotiation like we have from the va and we have in medicaid and like a lot of companies have when they have an employeebased plan. Tracy representative garrett, i have to say, this is the most middle ground ive heard from a democrat in a really long time. How come we cant come to the table . Because from my understanding, patty murray will release her budget on wednesday. Increasing taxes on the wealthy yet again. And of course no entitlement talk whatsoever. So, yes, in washington with politicians it is always easy to criticize and hard to actually come to the table with an actual plan. Tracy right. For that reason we havent seen anything from the Senate Democrats in over four years. We havent seen anything from the president since he has been in office that actually passes with his fellow democrats. So would be great if they actually finally put something on the table. I wonder whether because we passed no budget, no pay bill, they realize they dont so something they dont get paid over there if they many come to the table maybe we find the Common Ground. I tell you this were already receiving revenue in country at higher levels basically anytime in history. Were seeing tax rates near the top ever. So to say we need to put an added extra burden on the economy of higher taxes on this economy, not quite sure that is the direction to go in. Tracy many will agree with representative garrett on that, congressman welch, because, we all feel like our paychecks are cut in half based on what is happening lately. But i think we all agree there needs to be tax reform. I think we could all agree this could be a huge revenue creator and saver, spending saver at the end of the day. How do you do that and come to the middle . Well, first of all, the issue of tax rates is off the table now. I mean rates went up on folks over 400,000. Tracy but, patty murray will propose more increases again on wednesday. Changing taxes is not off the table clearly. Yeah. I dont know what will be in her budget, i dont think the president is talking about new higher taxes. What he has been clearly talking about is cleaning up the tax code, where i think there is widespread acknowledgement that it just, it is a disaster. It is antigrowth. Tracy right. And often times doing bad economic consequences. So, the debate with us whether we take some of the revenues and invest them in education and infrastructure which is something i would strongly support. We have to have a growth component to our budget discussion. Tracy representative garrett, i want to give you the last word because were running out of time. Were hearing more and more corporations parking money overseas. Payroll tax cut is hurting people at home how do you fix this . One thing in paul ryans budget does well vote out make more tear tomorrow territorial tax system, get companies overseas, u. S. Companies not to be taxed twice and bring the money back to this country without a penalty. That will go a long way to fixing the tax code. Second point on tax reform, tax reform is only reform dont take it from one pocket to another pocket. In other words tax it in another way. Thank you. Wow you guys had a little kumbayah moment. Well see about that. Tracy congressman garrett and congressman welch, congressman garrett is my representative in new jersey. Thanks. Thank you. Ashley very gene yall. I hope that is a good sign. Tracy i hope so too. Ashley puerto rico is not just a popular vacation destination. Isnt that beautiful . Find out why some rich americans are deciding to call it home. Tracy if only. Look at some winners and losers on the s p 500 as we head out to break. Dow is up 42 points. Mcgrawhill up 3 . Look at that move today. Well be right back. Dow pushing higher for a 7th straight session, and nicole, in a tight range, but the upside. How do you feel about the market . It was a record week, and, today, people predicted this over bought market might see a little bit of selling, and, yet, interday highs, again, did you anticipate this . I did. If you go back to the conversation from friday, this is what we spoke about the the momentum in the market wants to move the market higher. Theres negative news from china over the weekend and this morning, but the market shrugs it off and looks at positive news. Buyback news, mna effects on the market, and it seems now the market is taking the good data letting the market evaporate higher. It wont quit, not just yet. Back to you. Thank you, nicole, back in 15 minutes. Wealthy americans are increasingly interested in puerto rico as are not so wealthy americans like myself. Its not just a vacation destination, but as a home thanks to a 1yearold law that gives them a big tax break. Gerri willis has more i didnt know this existed. Yeah, john paulson, the fellow who bet against america in mortgages made a fortune off our backs, hes a new yorker, facing a 50 effective tax rate, but if he goes to puerto rico, he owes no tax on any of his capital gains, so thats what we wants to do. Apparently, some other nine americans have done the same thing. He would be the tenth. You got to understand that if we dont change the tax code, this is what happens. The loophole is if hes a resident of puerto rico, he does not owe u. S. Tax on gapes . Or puerto rico. No taxes. Who wrote that . Somebody in puerto rico because they want to bring in people like do you want him to have residency there . Were going to see a lot of this. Big story in the wall street journal today is how Companies Park money overseas, and individuals parking money overseas, but it costs so much less to do that. When you think about the 9. 5 billion that otherwise would be in our country based here, it just makes a lot more sense. Although, 50 would be in the coffers of the irs being wasted so go figure. Thats a good point. Its true. Whats going on tonight . Doing something really interesting. Were taking a look at some Administration Officials who say despite the fact the federal government is the largest its ever been and taking in more money than it ever has, they dont have the tools needed to do their job. The fca and eric holder both saying, you know what . Sire, but we cant do what we are supposed to do. Well tell you all about it. Already feel anger welling up. Thank you. Them youre on track. Yes. The willis report tonight at six and nine eastern here on fox business. Oil closing up just 11 cents, edges lower most of the day, but finishing up 11 cents at 92 a barrel. Oil closing up for three straight sessions, but not by much. All right, coming up, pension fraud. Fcc taking action against another state for misleading investors about big money holds in the pension. The judge is on the story next. All right, first, as we do every time at this time of the day, look at the 10 and 30year treasuries. Temperature year unchanged, 2. 05 , and the 30year, there it is, up changed as well, 3. 25 . Well be right back. Well be right back. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gas turbines are now powering some of americas biggest cities. Siemens. Answers. This is your fox business brief, and its now official, Morgan Stanley appoints komenski as the vice chairman as charlie reported joining in april. Hes currently the Capital Markets editor for cnbc. Much more in the 3 p. M. Eastern hour op countdown to the closing bell. The outlook in the industrial economies improving with japan and the United States leading the way. The oecd says recession hit eurozone showing signs of improvement. March madness starts next week promising big money for the ncaa. A recent study found that the tournament generated nearly 6 billion in advertising revenue over the last ten years. That is the latest from the Fox Business Network giving you the power to prosper. Too big to fail Takes Center Stage again as major banks face a second round of stress tests from the fed. Now, peter barnes joins us now from washington, d. C. With more on this story. Peter . Well, hey, ashley, big banks in the spotlight all week on too big to fail. You got Community Bankers opening their annual convention in las vegas today, and they Want Congress to clamp down on their big banking brothers. The fed will announce a Bank Capital Plan thursday for the 18 largest banks. A House Committee will hold a hearing thursday on too big to fail itself, and a Senate Committee holds a hearing friday on jpmorgan chases 6 billion trading loss from the london wale. Now, to critics, too big to fail means big banks still get bailouts if they are in trouble, and all of that, the critics say, gives the banks competitive advantages. Doddfrank financial reform, that was supposed to fix all of this, but critics say it did not go far enough. They Want Congress to break up the big banks, which are fighting back. It will produce more competition, i think, for the consumer. Itll produce more benefits and competition for the real Economy Companies that use these Banks Services and are often both investors and real Economy Companies that are often overcharged by the banks. If a bank gets in trouble, theres living wills, stress tests, and orderly lick dation authority giving federal authorities to seize a bank thats failing and wind it down. If theres a cost to the taxpayer, the money is paid back through an assessment on the entire industry. Now, a handful of lawmakers propose legislation to put more limits on big banks, even breaking them up, but all of that faces an uphill fight here in congress because, guess what . The big banks are lobbying hard against the legislation. Of course they are. Peter barnes in dc. Thank you, peter. You bet. A battle over intention holds. They charged illinois with fraud for misleading Municipal Bond investors on unfunneledded pension liabilities. Illinois agreed to settle charges, obviously, and will pay no penalty, a shocker. Joining us for more on this, fox news, judge, nothing, a slap on the wrist . Nothing. Same happened with your home state and mine, new jersey, in 2010. Basically, the fcc said to new jersey then and said to illinois earlier today, you committed fraud by marketing securities, getting people to lend money to the state without revealing to them the true nature of the risk attendant upon the lending because youre not bringing in enough income to guarantee the payments of the debt and repayment of the loans. Right. New jersey was accused of doing that, signed an agreement said, we did it, but we wont. Illinois signed the same agreement. They do not treat banks or private lenders who trade publicly with the same kid gloves that it does a government because if it took money from the government, thats taking money from the taxpayers, and the purpose the investigation was to protect the taxpayers. Its a catch 22. The best the fcc can hope for is to make lenders aware of the fact that the states will lie and cheat and commit fraud so look before you leap, and it embarrass the states into revealing what was done, but no sanctions will be assessed, 2340 no fine levied, nobody goes to jail, and no individual to embarrass. You have to admit it, but theres no teeth. Correct. Think about how ridiculous it is. The federal government found fraud on the part of one of the state, and the manner in which it treated people who entrusted their money to the states. It doesnt identify the names of the people who committed fraud. It doesnt make them pay money back. It just says dont do it again. But theres got to be people scratching their head saying we have to change the rules. Well, if someone loses money as a result of what the fcc uncovered with respect to illinois, theres a treasuretrove of material that the fcc uncovered for the lawyers for those who lost the money, and that is information can be used by those lawyers in the lawsuit against the state, but if nobody loses money or sues or the state of illinois borrows from one column in order to make another column look solvent, there will be no lawsuit or further exposition. Anything in jersey . No, no, no. Good question. Same thing. We wont do it again. Its not really that toothless. What it does is shine a light on the careers of people, if we figure out who they are publicly, who caused this to happen, and it basically says to institutional and individual lenders, look before you leap. Just dont assume because its a State Government that that they tell the truth. Or municipality regulated by the state that they tell the truth and the cash will be there when the bond is due for redemption. Crazy, muni bonds supposed to be the safest thing on the planet. Supposed to be. They were. They were. Judge, glad you were here for that. Its mind boggling. Disturbing. Thank you, judge. A quarter till, time for stocks, back to nicole at the nyc. A market that just wont quit. You heard john talk about the fact that the markets continues to go up, everyone anticipated the momentum is in the upside, and after a week of record setting days last week, we are doing the same thing today. 14441 was the high of the day on the dow. You see the s ps up a quarter percent. Nasdaqs up onetenth of 1 right now. How about we take a look at blackberry. The new 10,s z10, finally, tomorrow, the long awaited day that you can actually preorder this blackberry 10. On march 2 2, walk into the store to buy the blackberry 10. In the u. S. , it was delayed due to longer carrying texting fees here. In the u. S. , at t said presales begin tomorrow, a big deal for blackberry, formally known as research in motion. It was under scrutiny and pressure. We waited a long time, about 18 months for them to get the product out and launched january 30th. It was pushed back, pushed back, and, finally, tomorrow, the real deal day to order this thing if you are interested. Back to you. All right, nicole, thank you very much. Blackberry 10, debating i have one, and i think i have generation 3, but im so behind, annie coals further behind because she has the run with the rolly sides. The blackberry aticus, Something Like that. Disney striking gold with the prequel to the wizard of oz so will it save the lackluster box office in 2013 . That storys next. Oh, but first, look at todays winners and losers. The dow seen in the same range, up 39. Retailers, sears, up more than 2. 5 , bed, bath, and beyond up also 2. 5 . Well be right back. [ 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 aritrade. All on thinkorswim. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, global Broadband Network and Custom Communications solutions, your business is more reliable secur agile. And with responsive, dedicated support, we help you shine every day of the week. Well, the feds easy money policy left to yield starved investors to turn to junk bonds driving up the price of assets to record levels, so is there a high yield bond bubble . Lets bring in ron, Portfolio Manager at the high yields fund, only actively managed etf on the market. Thank you for joining us. Investors scramble for yield, any yield, are we in a junk bond bubble . Well, a certain percentage is in a bubble. If you look at the most liquid names out of 1. 4 trillion dollars Corporate Bond market, about 30 35 is a bubble, and thats all the stuff thats large index and large mutual fund owned. You could say theres a lot of big Asset Managers out there thirsting for yield, and companies basically issue a lot of crap . Thats exactly right. All of the crap is getting refinanced because of the asset class, and the highly leveraged companies, and even the companies that dont have good Balance Sheets and cash flow statements are getting refinanced and pushing out maturity so doomsday is at a later date. Ron, how can you obviously maximize return, but minimize your risk . Well, you have to buy hyld. In high yield bond markets, you have about 3035 of the market that is played in by, you know, the big index funds and the big mutual funds leaving 70 of the market thats really untouched, and were still seeing above 8 distribution yield between 910 overall, all returns, total returns, and so theres a lot to do out there, and its a big, big market. You make a distinction between the passively managed funds and yours that is actively managed. Whats the difference there . Well, they are restricted by charters. They cant own any companies that have less than a billion dollars in debt outstanding, and the side has to be between 400 and 600 depending which index fund you look at. We have no restrictions. We can buy anywhere with any rating between bbplus to ccc. We go to the value. We look for values for securities under valued and they have appreciation left in them. Yeah, because when you look at Investment Grade Corporate Bonds, sometimes yields are oftentimes less than 1 . Yeah, we have seen deals come out that 75 basis points over libor, just unheard of, and with the ten year over 2 now, you know, a lot of the low bonds and Long Duration portfolios take a hit, so Investment Grade is not the place to be right now. And, finally, ron, are you concerned about the rally seen in equities in this socalled rotation out of fixed income into the market . Yeah, you know, we start with fundamentals of the companies, and were not seeing any top line growth, and were not seeing any line growthment things are stable out there, and for a bet investor, its fine, but equity guys, you get expansion on the moment. S, and thats not a good scenario to invest in. All right. Very good. Ron heller, ceo asset management, we appreciate it. Thank you for having me. All right. Well, at movie theaters a year ago this weekend, disney had a disaster with john carter, and now disney rises again with oz the great and powerful, hopefully for a belter result. Dennis kneale has that story. Hi, guys. The wizard is back, baby, the 300 million gamble wins the box office raking in 150 million worldwide, and 80 million here in the u. S. , and oz had the best opening this year, taking in three times as the opening the jack the giant slayer, and it was the third best opening for a film in march ever trailing only hunger games, and alice in wanderland, cheering up hollywood pepping up a box office down 15 so far this year. Its sweet vindication for the mouse house. A year ago, there was a big john carter loss losing 2 murks billion. The stock was up today as well. Disney could look at the next sequel fran chiz. Franchise. It did well overseas even though oz is not big there, and this may do better among dulgts than children. 15 were teenagers, and 52 was couples. Its in spite of mixed reviews and scorching in the New York Times with the malignant calling, oz, quote, disspiritting, small ideas, and ugly visuals. Oh, really . Ugly visuals. Mila kunis, Michelle Williams and rachel weis ugly . I dont think so. You keep reporting on the movie just to say their three names and just to show their pictures, dont you . Eventually, milas going to call. [laughter] just to say hi. Hold your breath, but god bless you. You are back tomorrow with another story and mila. And next hour of trading, renowned trader, sharing dow targets for 2013 and beyond, and, yes, the numbers may surprise you. Countdown to the closing bell is next