Dagen i am moving slowly and gingerly. You know what is coming up later . Darius rucker. Connell that will be great. The market is way up. First, Nicole Petallides on not microsoft story. Nicole good morning. Taking a look at microsoft. Some of the details have been put out there. We can see shake up there. Basically, they will be focusing on what they think the consumer needs. Devices will be anything from telephones to tv attachments and, of course, tablets and pcs. Lets take a look at the big board right now. The Dow Jones Industrials up 136 points right now. Moving closer to intraday highs. Back to you. Connell we keep hearing over and over how the fed Stimulus Program is what is keeping our economy afloat. Brian wesbury is a bowl. I apologize for her. It is not the fed. That is what is driving the market. You have been able for a long time. When i go back to 2009, connell, there are lots of people who believe this quantitative easing. People call it a sugar high. It is all just sort of a fake rally. If you look at price to earnings ratios in the stock market, that would be the price of the stock relative to its earnings. They are no higher today. They are lower today than they were before quantitative easing started. Connell you would make the case that stocks are cheap. I saw some writing that you use a model doing that. It would be 4. 5 when you model. Work it. We want to own a company because it will make money. What is a dollars worth of profit . We have always believed, and i believe still, that the bond market is in a bubble. When we run our stock models, here is what earnings will be and we will discount them with a much higher ten year treasury yield. We are putting in 4. 5 . It is telling us that the market is 35 undervalued today. Interest rates can go up, but it will not change our view. Connell you are saying that it may happen . It may be a correction. It will not happen at all . If we just go back over the last six weeks, bernanke came out and said we may taper quantitative easing. Stocks. Drop. There is no dow that traders and investors get scared when they hear these kinds of things. All of a sudden, stocks started coming back again. Yes, sure there was a kneejerk reaction. It is not the real fear that they should have. Profits are high. When i go back to 2009, i do not believe that quantitative easing or tarp or Government Spending is what saved the economy. I believe that it was the entrepreneur. We will be Energy Independent in america in the next threeeight years. I know that the economy is not great, but that is what has allowed us to grow. It is not all based on a sugar high. Connell thank you a lot. Thank you, connell. Connell a new poll out. There is 35 . Dagen what does this mean for Immigration Reform . It seems like people are a little bit more, well, they want to be not as against it. That is a really wide open question that the gallup asks. Connell we always look out the economics of things. They are conservatives that have come in. I am thinking about art laffer. Economically, you could make a conservative call. This monstrous comprehensive bill coming out of their load everything in at one time. They are doing legalization first. They are doing a pathway to citizenship and then doing order security. Connell would that be better than what we have . Would it be a good economic bill . Not necessarily. It is doing the legalization first. We should be doing really smart Immigration Reform. It needs to advance the economic interests of the United States. Dagen what are the chances, if you look over in the house, what they are trying to do is piece by piece, john boehner according to reports today testing the waters to see what they would get on board with. Does that have a better shot . I think so. You guys talk a lot about obamacare. That comprehensive bill, the total disaster. Why do we want to go down that road again with something as critical as immigration . Lets see if we can get some democratic body in. This bill is dead in the house of representatives. Connell thank you, monica. Always a pleasure. Dagen good to see you, monica. Motorola is rolling out its smart phone later this summer. It is giving the economy a boost. It will be fully designed and assembled right here in the u. S. Connell we are live in dallas. 130 million of thhse smart phones at use in america. Not a single one is put together here. It will roll off the Assembly Line right here in north texas later this summer. They are hiring thousands. Everything that you can imagine. You have production supervisors. Production management. A wide variety of jobs. These are certainly a new american jobs being added. We do not hear about that happening too often. Dagen what about other companies possibly following motorolas lead . That is the hope. Of course, the accusation, though poor working conditions in apples plans there. They are now changing the economy in china. It could send more jobs back here to home. Reduction costs in china have risen very rapidly. Labor costs have been growing much faster in china than it has in the United States. Apple has now said it will build some of them in austin texas. It seems to be a popular place. Connell thank you. Dagen when you hold up a blackberry, you cannot call it a smart phone. No. I will Say Something that will get me fired. [ laughter ] connell thank you. Much more still to come. Dagen smokers could actually be getting a break because of another, you got it, glitch. Connell Fish Oil Pills. New Research Shows the pills may be linked to a higher risk of Prostate Cancer. We will have back coming up. Dagen darius, he is doing good with some wine. He will tell you all about it coming up. Crude oil. What is it doing today . [ male announcer ] at his current pace, bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on hisortfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. Dagen hey, nicole. Nicole so much of this starts with the fed. What we are seeing here is that the idea that the fed is not tapering any time soon. The dollar is weaker. Commodities, gold in particular, is taking off. Gold, of course, everyone was so hot on it. Now they are just sort of hoping for gold 1300. Connell thank you. Dagen is Charles Payne a bowl . Connell charles is going to make you some money on chips. Charles absolutely. They use this thing called gallium nitrate. It has a lot of advantage over silicone. It is all about power management. These guys have been doing very well. It is trying to break out. They said they could be as high as 30 . They have a product moving in bigtime. Dagen when you Start Talking like that charles you can never get too cocky with the markets. Connell take a look at these returns. Regional banks have been on a run. Elizabeth macdonald will be here to tell us why. Dagen Fish Oil Pills and Prostate Cancer. Astonishing results. Take a look at world currencies and how they are doing against the greenback today. 24 minutes past the hour. I have your fox news minute. The Muslim Brotherhood is vowing to keep it peaceful resistance. A u. S. Official told reuters there is no change in the plans to deliver for more fighter jets next month. The pilot of the flight that crashed in San Francisco is now claiming that he was temporarily blinded by a bright light shining into his eyes. There is no confirmation on that yet. Boston marathon bombing suspect fled not guilty to 30 charges, including the use of a weapon of mass distraction. He could face the Death Penalty if convicted of carrying out the april 15 bombings. Those are your latest headlines here on fox. Back to dig in and connell. Have a good show. Dagen back to earning season. One thing stands out. Regional banks are outshining the pack. Connell Elizabeth Macdonald in the newsroom. The regional banks are soaring. Look at how they are rising year over year. These are the smaller players. All the way up to the super regionals. We have think of the ozarks reporting later today. That stock is up 37 year to date. This third also of 34 . They are making money basically via loans. A lot of these guys hhve money made off the floating notes of very low rates. The one caveat, of course, for all of these players is the new d. C. Rules, whether or not the security portfolios will take a hit. These guys tend to make money the oldfashioned way. The numbers could be jumpy because they really hit a wall, of course, during the financial collapse. Back to you guys. Connell thank you. Dagen a very candid interview. Dennis kneale is coming up. Connell smokers catching a break from the president S Health Care law. We have the cancer linked to Fish Oil Pills. We have a doctor coming on to explain that study for us. A rally mode in the markets. Here are some of the winners on the s p 500. Any last requests mr. Baldwin . Do you mind grabbing my phone and opening the capital one purchase eraser . I need to redeem some venture miles before my demise. Okay. Its easy to erase any recent travel expense i want. Just pick that flight right there. Mmm hmmm. Give it a few taps, and. Its taken care of. This is pretty easy, and i see it wor on hotels too. You bet. Now if you likehat, press the red button on top. How did he not see that coming . Whats in your wallet . Speed. About 150 points here at the bottom of the hour. Looking at some of the movers today. Nicole celgene and the drug round of 70 this year. Hitting an alltime high today. They will be moving forward with a new drug. Gas is reporting after the bell. Reporting with a new hi there. Up about 1 . Tesla motors has done incredibly well this year. Up 1. 5 . A possible takeover target for the electric cars. Back to you. Dagen thank you so much, nicole. Smokers, you could be catching a break. You could get relief from the penalties that will be applied to tobacco use that should result in higher premium for smokers. Wayne rodgers joining us now from los angeles. It is basically a Computer System problem. I think overall, this just speaks to what a disaster thiS Health Care law is. You are right. It is a mental problem. You have morons trying to design a plan that is impossible to design good you have over 20,000 pages of regulation. It is a nightmare. The congress does not know what they are doing. They did not read the law. It is not a computer problem. The computer problem is a minor part of the fact of you have idiots trying to devise a program that does not work. Dagen how do you think this shakes out, big picture, wayne . You have the delay for one year of the employer mandate. They are still pushing ahead with the individual mandate. They do have the Health Exchanges that are being put in place that are supposed to go live october 1. There is no indication that the government has itself together to take care of that. [ laughter ] you have enormous confusion is what you have. You cannot devise a system is complicated. The federal government should not even be in this business. It is outrageous. Listen, we have hired over 130,000 people in the federal government, on the federal payroll since obama was elected. What do they do . We know that they go to parties and may spend money at the irs. They do not do anything. They have some mental capacity and they are trying to devise a system that is way above their head and they cannot do it. By the way, 2000 exceptions that they granted to various corporations so they do not have to comply with the healthcare. It is just a disaster. They should just start all over. Dagen at a can do that though. Why not . Dagen you have democrats going to throw in the towel on this. Maybe they should be thrown out of office. Maybe that is what should happen. Maybe the public should get intelligent enough to throw out people that are not worthy of it. They are not representing the people. They are representing themselves. They spend money without knowing what they are doing. They do not understand the law. Well, it is outrageous. You cannot run it that way. Dagen i smell an audit coming your way. Good luck with that. [ laughter ] by the way, i have been audited before. I live according to the law. The law is fine. The people that the government gives breaks to, that is the problem. Not everyone is equal. When the president stands up and says people should pay their fair share, who is he to know what is fair . Why should you be coerced to take out of your pocket money to give, for example, an automobile worker in cleveland . What is right about that . There is nothing fair about any of this. The pretense of it just bothers me. Dagen good to see you, wayne. I love you dearly. [ laughter ] good to see you all. Connell we have this fish oil shocker we have been talking about. A lot of people that wash us, i would think, take these pills. Dagen a 52 week high a lot of people that watch us, i for the stock of microsoft. Connell a front man for hootie and the blowfish back in the day, darius rucker, he is with us. In todays markets, a lot can happen in a second. 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There is a real concern that you could have an increased risk of cancer because of a new study out. Fish oil supplements, associated with a 71 increase in high grade Prostate Cancers. If you look at the business side of this, a big bat in the market. Thank you for coming on, doctor. It is important that this study came out. Not recommending fish oil one day as the perfect alternative medication and the next day walk away from it. You always take the risk. The reason is because people are not getting enough from their diet. That is the time that we should be taking these vitamins. You absolutely do not need to add all of these vitamins. Mind you that this study was not designed to look at the relationship between fish oil and Prostate Cancer. Connell for some people, it is almost like fish oil has become, i do not know if trendy is the right word when you talk about medicine, but there have been Big Companies getting of files and buying these. You should speak to your doctor and make sure you are taking enough. For now i would say just hold off. What i usually do, do not take a lot of vitamins unless you absolutely need to. You have fruits and vegetables. You do not need to take bottles and bottles of vitamins. Connell that is good to hear from you on that. Dagen at the biggest names in media. Connell Dennis Kneale is right in the middle of the whole thing. He joins us now. Dennis disney ceo looking fit and trim. Meg whitman not talking to us. Bill gates walking tour at a time where microsoft is in the middle of that. Then came barry diller and his wife. I first interviewed him in 1987. He did talk to us. I asked him about apples big loss. I do not know enough about it to tell you truthfully. If you feel strong about stuff, you go to court and take chances. Dennis his network that sued in boston yesterday. We will know what he has to say about that case. Back to you. Connell the management shakeup that microsoft. To me it is very bullish. These companies are in the business of making other companies efficient. Now they will work on making each other in efficient. It will definitely make them more competitive. Connell thank you, jason. We will get back to that. Appreciate it, as always. Dagen look at who is here. Darius rucker. Connell hey there, darius. We are very excited to have him in the studio. We will talk about his music and a little bit about his new business as well. Connell it is either nascar or Country Music that makes dagen excited. Dagen that song was on someones boombox and they carried it over and put it next to my chair. Connell the Country Music star, known for some bigtime hits over the years. Now some bigtime business that we will talk about. Good to have him here with us today. Dagen darius rucker