And lots of financial incentives dagen you get suspended and come and go. Stocks now and every 15 minutes. Nicole we are taking a look at the market. Yesterday there was a twopoint game. As i noted, we have had some backandforth action. The tech heavy nasdaq is still under pressure. We are seeing financials doing well. Names like travelers and United Technologies have had some moves. Continuing to watch names like netflix. The u. S. Dollar has changed direction. Gold has pulled back since yesterday. The major market averages are mixed at the moment. Back to you. Connell what about bonds . Our first guest has some very clear advice. Sell them. Sell them right now. With us from chicago is the vice chairman of ariel investments. We like clarity. If you look back at the history, if you go back to the 1800s, we have only had one period of time where Interest Rates were lower than where they have been recently. Obviously, Interest Rates have gone up to 2. 5 . Interest rates have been artificially suppressed by the fed. That is going to come to an end. It will come to an end, i think, in september. It will continue to slow down next year. Interest rates will go up to their natural level. Connell a very clear message. You have to prepare yourself for the environment. What about other, you know, maturities . Are there other areas that you do get involved in or just forget it altogether . Generally would advise against in general. If you own a two or threeyear bond, you will not get hurt in the same way. I tell friends that i would not buy any bond or maturity more than five years. Connell stocks have gone up in general. Record highs day after day. If this environment that you are describing, what about stocks . Is there a magic number . You have asked the question. Unfortunately, the answer is a little more cloudy. There have been lots of periods of times where prices have gone down and Interest Rates have gone up. Connell is there an argument that you favor more this time and if so, kind of articulate that. I think the u. S. Economy will be better than people think. I think the u. S. Economy will be better and as a result, i think that the stock arctic can do well. Connell okay. He hedged a little bit. Very clear on bonds, not as sure, which is fine, on stocks. Always terrific to have you on. Dagen nice. Detroits fiscal meltdown shining a light on other financially strapped cities. Chicago, minneapolis, santa fe, new mexico, even. Bob massey is here. This all depends, though, however, on how detroits bankruptcies goes in the court. Yes or no. Yes. For sure, dagen. Generally speaking, they are different than chapter 11s. There is no outside agencies such as creditors committees that could influence a final decision. The big reason they want to stay in Bankruptcy Court is because these contracts can be negotiated. They can be severed. Tomorrow there is a hearing. At any time you follow bankruptcy, you have to make sure they are eligible for that bankruptcy. Dagen did the city make a goodfaith effort to negotiate with the creditors . Well, not only yes, i think that the court will look at that. We have already heard discussions that they attempted to negotiate with the unions. The unions refused to move. Are they really insolvent, by the Legal Definition that the court will look to. These cities that we are talking about, there is also the National Problem that we have been dealing with for the last five or six years in this country. The other thing was detroit and the real estate industry. The cost, though foreclosures,. You have all of these things playing into ultimately resolve it. Dagen staying on that note, you mentioned that unions, the city was also negotiating municipal bonds. They were offered something that was not to their liking. I think it was 0. 17 or 0. 18 to the dollar. Do you think that the judge will put to the side state lawsuits . I think, ultimately, when you file bankruptcy, it is like putting up a dam. It stays and stops any state action. Listen, that there are all of te other issues. We want the chance to re organize and structure our units a polity to save it. If you allow this to be lifted, it will ultimately compromise the integrity of the city of detroit. Dagen do you believe that other cities will follow suit . It will be messy. It is a real talks on the name of a city and the reputation of a city even if it will ultimately be better for that city financially. I was born and raised in pittsburgh. In the 70s, when i was still living there, we went through this type of thing. I think we lived in a time where you go and concern about how it looks is unimportant. I think we have men and women who have worked for years in detroit depending on the pensions, depending on the monthly payment. I think, ultimately, and by the way, the other issue that should be looked at is the corruption and mismanagement. Yes, i do not think that the image is important. I think that saving the city and these poor men and women is important. Dagen i feel sorry for the people of detroit. More sorry for them and the people that make it their pensions cut a little bit. I agree. Dagen good to see you. Bob bassi. Thank you. Connell if you use your phone too much, you can hurt yourself. That is because there is this study out revealing more people, and some young people, too, are suffering with cervical disc herniation. Those are going up by about 8. 1 since 2007. Cofounder of twitter has some billiondollar advice for mark zuckerberg. He suggested that facebook offer a premium addition that would allow users to pay 10 a month and get rid of the ads. It would be big money for facebook. If 10 of users were to sign up, it would bring in an additional billion dollars of revenue for facebook. The slow economy forcing parents to cut back on helping their College Student pay for school. Student loan provider sallie mae reporting it is down 30 from three years ago. Dagen it makes the kids go to cheaper schools, that is not necessarily a bad thing. Dagen investors cashing in on the cyber threat. Charles payne shows us which stocks are making money. Connell the storage of aluminum. You are paying more for the battle to just sit in containers. Dagen a quicker turnover for sellers now than just a few weeks ago. You know who is here . You watch hg tv . He is a tough guy. We cannot wait for this. Lets talk about oil. Down today. The boys used double miles from their capital one venture card to fly home for the big family reunion. You must be garths father . Hello. Mother. Mother traveling is easy with the venture card because you can fly any airline anytime. T words. Double miles this guy can act. Wanna play dodge rock . Oh, you guys and with double miles you can actuay use, you never miss the fun. Beard growing contestnd go win whats in your wallet . Connell we will talk to Charles Payne and a moment. Lets go back to the call. Nicole some are good and some are negative. Lets talk about what we got from netflix. They added subscribers. That sounds good; right . It was under what the estimates were for the company. They raised their targets. Web bush has an 80 target and underperformed. Basically, this particular firm said 80 they do not like it at all. They reiterate their underweight pretty amazing. Back to you. Connell all right. Thank you very much. Dagen take it away, charles. Connell that is too big things making you money. We have talked about source fire. Hold on for this, we will have the next source fire in a moment. Charles i think it is a really good deal. Everyone on the street kind of knew it would happen. It has been all over the place. The deal was out there. I did a real big. Two peer comparison. It is a bigger company. Their revenue grew. Margins are just about the same. Source fire had 86. These guys had 170. On valuation, that is where you release all the difference. Much higher p e ratio. They will report real soon. From a pure valuation point of view, if source fire could get that kind of command, i think this could be a 30 stock. Dagen excellent. Good work, my man. Charles by the way, we have to get that die on. It is either hit or miss. Connell wanting to be famous like Charles Payne. Connell the cost of storing aluminum. We will talk about this. It is actually driving Prices Higher for things like beer. We will talk about the turnover in the Housing Market. Youll have to stay tuned. Take a look at currencies around the globe. How they are holding up against the dollar. The most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im moni santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbz youve been burning for at the summ event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Going on now at your authorized mercedesbenz dealer. We replaced people with a machine. R, what . Customerdidnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. 23 minutes past the hour. In london, the royal baby boy and his parents, Prince William and kate, are still at st. Marys hospital. They are awaiting the first glimpse at the 8pound 6 ounces royal. Mother, son and father are all doing well. Laguardia airport is back open after a plane hard landed last night. The landing gear collapsed. The jet landed nose first. The faa is investigating. The popes driver took a wrong turn in brazil and got stuck in traffic. Those are your headlines. Back to dagen and connell. Connell driver taking a wrong turn there you go. Dagen thank you. New evidence is linking Goldman Sachs, jpmorgan and your beer can. Rich brewers are blaming banks for increasing the cost of aluminum. Goldman sachs, jpmorgan and others old warehouses. Miller coors says they are slowing delivery of aluminum. The delays are driving up the price. The increased cost that we incur take away from innovation and new products that we can come up with. Rich the things warehouses are part of the system. In a statement, Goldman Sachs says the Warehouse Companies say they do not own it and its facilities. Lme warehouses are prohibited from trading all products. Back to you. Connell rich ads in from d. C. Dagen thank you so much. We talked to the host of a brand new host of an hg tv. Connell the suspension of ryan braun. Why it is a good thing for baseball. Ken rosenthal will make the argument. Before we get to all of this, lets get back to the markets. Let take a look at the winners we are seeing on the s p 500. Connell here is a look at what is coming up on market snow. Home moving off of the market quicker, we will talk to mike aubrey as those of the show power broker. We have china up promising to keep Economic Growth above 7 and will the numbers be what you can believe . Why is brown suspension this suspended from baseball . Making an item about why this could be good for the baseball business. Dagen bottom of the hour stocks now at caller minutes. Nicole wendys is doing well, working on the menu, analysts say they have the right price and the right size. You know wendys for their square burgers, dividend rose a penny to 0. 05 a share. That is the big deal. They are selling 425 restaurants by mid 2014 but certainly a real winner here for wendys and 9 interested in trying the bacon cheeseburger. Nicole good coffee. Connell lets talk a little bit about existing home sales, got buried in that number which is interesting. The median time homes spend on the market was down to 37 days in june, 41 in may so 47 faster than a year aao. Dagen and his last . The real estate agent, host of power broker, a new show on hdtv. I was obsessed with your old show real estate invention because you were tough on homes. I dont tell people what they want to hear but i tell them what they have to hear. Dagen do you think this cannot last in terms of how fast these homes are selling . I dont. This is driven by the fact that inventory is low and even from the street as much as we see reports like the case schiller index, those are generally a couple months behind which is why they get adjusted. From the street i am seeing inventory coming up, mortgage Interest Rates go up, those days have to expand as we go through. Connell every conversation including one earlier on the show when we talk about markets and rising Interest Rates, get rid of bonds because if anything rates are going to go up. We can argue how quickly and Everything Else that has an affect on the Housing Market but what is the biggest effect in the near term . The big effect in the near term is by the end of summer we will see inventory go up quite a bit. Right now what we are seeing is buyers who are on the offense and waiting for the sweet spot at the bottom of mortgage Interest Rates are seeing that they missed it and are jumping off of the fence which is driving people to buy quickly. Connell for years people were saying rates are going down and could go down more. Let me see if they do and theyre coming to the realization. It is like standing under a bridge cadging a falling knife. You have a chance of ending with all your fingers above comes. By the time you realize what is going on, the bottom of a market has gone by. Dagen inventory on the market right now is a lot of that now people who were slightly underwater . Not realestate owned or foreclosures but people who were waiting to sell until their prices picked up and it is the time . Exactly right. Those people in that position where they were closing couldnt get out based on what conditions were going to cost or all the things that go above the sales price and now they are in the window where they make the move based on low Interest Rate and confining move on. Connell Dagen Mcdowell is in to the past. Will she be happy with this . This time power broker, working with buyers, not sellers. Is neat and timely. Even though the market is hot it shows you tough negotiating can be a good deal for buyers. What we do in the first halfhour of the show is we look at three or four houses and let buyers pick one and then negotiated a deal on their behalf and take the money we save in the second half. My colleague kaukauna director takes that money and turned it into their dream house. Dagen how responsible are they for misleading their customers in terms of i have heard this over and over again, not illegally misleading but you are going to miss it. You wont win this property unless you raise your offer. Just to close the deal encouraging people to overpaper property because you will start seeing that again because in some of these areas you see bidding wars for these properties. Realestate agents are the people who are out there selling the houses. They have their finger on the pulse of what is going on the market better than anyone. Realestate is local and i suspect if you see a realestate agent who tells you you better dig in and put your fast foot forward you are on the outside looking in. Connell well done, there you go. Dagen they are just trying to close the deal and another property will come along. I never hear anybody saying that. That away and find Something Else you like. This isnt your dream home. Theres no such thing as a dream home. You can turn a house into something you love rather than overpaying for this thing. The power broker. Dagen really quickly can i ask one more thing . Connell of course. Dagen what is the one thing you can say when negotiating price . One mistake buyers make when trying to get the best deal for themselves . The moment you decide you have to have a property no matter what you have given up your power. At that point you have no power and might as well pay what they want. There are always dagen that is what im getting at. Over pay, walkaway and find another house. Connell good luck with the show and thank you for coming in. Dagen please come back. Connell power brokers at 9 00 eastern time. Dagen a big shift at the Defense Department but a major victory for Wireless Phone companies, Internet Companies and broadcasters. Connell and offering to auction valuable spectrum space to train the military, things like drones. For that story bring in liz macdonald. Tell us about it. Liz there has been a big fight between Companies Like at t, t mobile, verizon and the Internet Company with the u. S. Government saying the information superhighway is really crowded. The fcc is projecting that by next year mobile data traffic will be 35 times what it was in 2009 so we had in a reversal of pentagon saying it will move to share spectrum space that is really valuable. This is spectrum space used basically by the military for air combat and Training System and drones. This is the first big federal option we have seen in half a decade. It will take place by february of 2015. Here is the white house, the white house likes to this and has been pushing for this, president obama is saying this will promote economic development, we will get greater Broadband Speed and coverage to develop cutting Edge Wireless technology and help reduce usage charges but the Defense Department has been leary of this. Look at what the pentagon is saying. They are worried about addressing the critical nationalsecurity needs without any interference from other broadband users and got to weigh the responsibility for National Security and operation responsibilities as well but it looks like for now this is a movement that is of foot that wil