Stock exchange to look at the stocks. Hey, lauren. Huge news, a big impact on u. S. Airways stock, down substantially on heavy volume right now, down 8 , 17 3 p is the level so this entire sector is getting hit. Now, american trades on the pink sheets, those down 27 right now, so this is a huge story. The doj said that you just reduce competition in the space which for consumers means higher air fares; right . The overall market, dow down 56 points, nasdaq down 12, s ps down four points right now. The best performer on the dow is hp. Its up about two and a half percent so, again, we have techs leading the way today, and other strong sectors are materials and industrials right now, but it is a down market, and, in fact, declining stocks are taking out advancing ones by a margin of 2to1. Back to you connell thank you. More on that coming up. The Justice Department is holding a Conference Call on the situation, lawsuit, breaking news. Thats coming up at the bottom of this very hour. Well have more on it then. As i said, the former american chairman coming on as well. Much more on that coming up. Now, this next topic we have not talk about. The upcoming debt ceiling debate because like everybody, were sick of talking about the same thing year after year after year, shut down, no shut down, but now there are dc insiders who think this debate, this year may be the scariest that weve seen. We will talk about it today with juan williams, dc insiders, nobody knows more than juan. We talk about the theory, but is seems like ground hog day with the debt ceiling debate, but is it worse this time, you think, because of the dynamics in dc . It is worse in the sense you have people who are opposed on the position taken with regard to the deficit, connell, and its a hard, hard position they are taking. I will say the good news is that the House Majority leader, cantor, the republican from virginia, said theres not going to be a shutdown. Thats good news for the market, but when you talk to rubiro ted cruz, mike lee, the senator from utah, these are hard line republicans who say they unless obamacare is defunded, they are not going to pass any increase in terms of the debt ceiling, and, of course, that leads to all kinds of chaos in the markets and potentially even higher Interest Rates and downgrading of the u. S. Credit market. Which is exactly what we care about here is what we do end up talking about it, but you mentioned republica, iwant to ask about the other side, the White House Position because in the articles written in politico and business insider, and other places, the theory is the white house and Obama Administration is baiting the republicans now to go forward with what we were talking about was pushing for the debt ceiling debate and for shutting down the government. Do you think thats whats going on at the white house . They really want it and think they can benefit from this politically . Well, the political die dynac here is clear. Thats why you are hearing from a range of republicans, especially the older, Tea Party Republicans that history indicates that every time you come to this precipice of shutting down the government, refusing to raise the debt ceiling, republicans get blame. The leadership, Republican Leadership is saying we dont want it, cantors words, in part because they see it as politically exposing them to damage in the 2014 races so its highly a political conversation. The white house, by the way, you said, is the white house baiting them . I dont know if they are baiting them, but glad to let it wait and let republicans skewer themselves. Connell could that backfire or is it clear the republicans have the most to lose here . Republicans have the most to lose, because, again, we come back to the heart and soul of the matter having to do with obamacare, and, again, you know, with the recent polls indicates is americans dont like it, but on the other hand, its a fact, its going to happen. The question is why would you risk very fragile economic recovery, credit ratings, the rest, and a good market, you know, wall streets doing well, why risk that just to make some kind of a, you know, political point that really is not going to take us anywhere . Connell right. This time could be worse or different. Juan williams, as always, thank you, sir. Youre welcome. Dagen shikup at jcpenney, resigning from the board of directors, and thats not the only change. Connell with more who is in, up, and out at jcpenney, we have the bottom line. Break down the changes, liz. Good to be with you. Ronald, the sfyear 16year veteran, basically coming in the board of jcpenney, bill ending the threeyear campaign to turn around the retail company, ab we are hearing another Board Director could be named within a week or so. What we are seeing is, essentially, the stock is reacting and trading today, and jcpenney shares bouncing around, and sales are down, continue to decline at jcpenney, and the shares have taken a beating still this year off by about a third, and so what we are hearing, still, the echo effects of the disastrous discounting campaign run by ron johnson. That is still hurting the Quarterly Results at jcpenney, shoppers have been alienated by jcpenneys boonment of the discounts and bringing them back so thats key here to what is going to happen at jcpenney. Interim chief executive, mike, still staying at the company. Bill tried to push him out too, and mike is a veteran of jcpenney so the word on the street was that bill did not give mike enough time to turn around to turn around the struggling retailer. Back to you guys. Its a developing story to watch throughout the day. One final point. The soros fund has not dumpedded shares as we know right now at this moment in jcpenney, Still Holding at 7. 9 , thats George Soross fund, and, also, bill is holding his stake in jcpenney nearing about 18 . Back to you guys. Dagen stay there, and i want to bring in mark, chief investment strategist at montgomery. Scott, mark, a lot of drama, a stock in the toilet, down almost 42 in the last 52 weeks and down about 2. 5 , a little more than that today. Is this the right move to keep mike there . He was there before, ron johnsons out, mike is back. Is this the key to turning the company around . Well, its an interim step. I mean, ultimately, they have to find a permanent replacement, somebody who instills confidence in vendors and suppliers, and as well, move back cogs mothers once loyal to pennys that find their way into other retailers, and as a consequence, not only attract them back to the stores to rectify the situation that ron johnson undid in the brand known as jcpenney, but at the same time, bring back as moment. Time shoppers so, obviously, the Financial Condition of jcpenney is straightened out because as it stands today, they are on borrowed time. Dagen liz, i want to talk about the goal of these activists investors who come in, what did bill get out of this . Is he rewarded by the new Board Members coming in . Ron johnson was his guy, and it almost drove the company out of business. Thats exactly right. Also, bill pushed for ron johnson, former apple executive, to appeal to the young ire shopper younger shoppers, but the panelist is right. What happened was at jcpenney they alienated older shoppers, the dedicated shoppers at jcpenney, so, i mean, how do you get those people back in the doors . Those shoppers back . The stall worths, veteran shoppers who go there because it feels like home for them in terms of shopping. Youre right, he has to own it. He brought in ron johnson to run jcpenney, and he had a failed turn around strategy that alienated a lot of people away from the store. Broadly speaking, mark, do you like the retailers in this environment . Retail sales in the recent moat, autos up, up half of 1 . Best performance since december. Does the area look good to you . Not particularly, actually, dagen, the fact of the matter is thats a sector underweight due to the fact we think while consumers are starting to recover, certainly, remarkably resilient in terms of spending patterns, we want to see job growth occurring, but the quality of the job growth and lack of wage income combined, really, make discretionary space a real tough area to invest in and see who are the winners and losers. I like the Automobile Companies because of the uptick on spending on automobile sales recovered almost fully what was lost from the recession, but as it relates to the big box retailers, thats a very challenges space, tremendous competition, and eroded by online shopping. Begin the headline grabbing this latest fight as jcpenney, doesnt it also leave one, if you get negative headlines, it keeps customers out of the door, potentially, but, also, it leaves you vulnerable to other rumors or news. Remember that cit rumor about the funding . Thats right. Dagen again, does it leave jcpenney in an even more precarious position . Interesting question because what you ask is do they get the financing needed . Will the lending markets give it money if the distractions are going on at jcpenney . I think to the board, the veteran, again, a veteran retail executive, hes a calm, assured man. He will calm the waters. Hes republicked in the industry. Respected in the industry. Listen, is jcpenney long for the world and last as long as it needs to to basically execute the turn around plan or broken up and sold for the real estate value under the sphoars . Thats the debate going on right now. Im giving it back to you. Dagen liz, thank you for the reporting, mark, both of you, see you soon. Thank you. Connell Larry Ellison on cbs this morning, clearly unhappy with larry paige from google. When we say clearly unhappy, he basically called him a thief. Thats unhappy, i guess. Dagen it would. Musk with the hyperloop idea for high speed travel. Would you use it . Well ask that. Connell depends where you had to go, how fast you had to get there. Lily, positive results for a drug therapy, to battle a big killer, lung cancer. Interesting stuff scientifically and also for business. Thats all coming up on markets now. My mantra . Trust your instincts to make the call. To treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. 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 the symptoms to your doctor. Tell your doctor about all medical conditions and medications. 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Local media in china say the month of july for themfuls the hottest july in more than a century, 140 years, yet kfc, the 6,000kfcs in china owned by yum brands, their advertising hot food when customers want mcflurrys from mcdonalds and starbucks iced drinks, and things like that. That was an issue on top of the chicken supply issues, the avian bird flu fears, ect. This stock getting hammered, and analysts are saying, according to several reports that i read this morning, that the recovery for yum brands is still awhile away. Back to you. Connell lincoln, thank you very much. Lets get to the oracle ceo lair ellison comments, back to the legal battle with google and why hes not a fan of larry page when the heads of google, cofounders. He was on with charlie rose this morning on cbs, cbs this morning, here it is. When you program, whether you write a program for the underwriter, you write it. You use the oracle tool or jobs for everything, and at the end, you press a button that says convert this to android format. We dont do what google does. We think they took our stuff, and thats wrong. Thats another issue. You think they are evil . I think what they did was absolutely you blame larry paige . 100 . If what they did was evil, that makes larry paige evil . No, what he did was evil. The slogan is dont be evil. Exactly, thats what im talking about. He slipped up this one time. A good guy other than this one time this really bothers. I dont see how he thinks you can copy somebody elses stuff. Connell they went on, and they talkedded about apple and its Stock Performance with and without steve jobs saying he does not like the prospects for the Company Without jobs, and steve jobs thought google ripped off apple with the Android Phone against the iphone, similar argument in some ways there. Dagen bought an entire hawaii island, chill out. Its a hawaii island, chill out. Connell good advise. Dagen a story from yesterday, anot musk, announcing the new Transportation System called the hyperloop. He worked on it with a team of engineers from tesla and spacex. The design has people in capsules traveling almost 800 Miles Per Hour in a tube system. Now, it is aboveground. We made sure of that. Musk says it will feel more like a ride in an airplane than an amtrack car and without the turbulence of an aircraft. Musk thinks in the end of the cost running between six and seven billion dollars, but that will be far cheaper than the high speed rail project working on in california which right now has an estimated cost of 70 billion, but its like a vacuum tube like systems used in banks and Department Stores to send the paper around. Connell like a water slide, but, no, its cool. Jo had a nice report on it yesterday, shes out there, good for imus coming back from the ranch after labor day from the tube, back in a half hour. Dagen i just dont care about the tube, i dont like being that close to people. Thats the problem. Connell get your own tube. Dagen you can get your own row car, by the way. Connell anything to get you out of here to send you to vietnam in the next tube out. Oil markets clearly concerned about the consumer with the numbers coming in today. Prices on the decline after a weak report on retail sales, which well talk about. Dagen investors in lily excited about a new drug therapy in cancer that scored well in trial. Look how the dollar is holding up against a range of world currencies. At a dry cleaner, we replaced people with a machine. What . Customers didnt 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. All your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. And launch your dreams. A quarter million tweeters is beare tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow this is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. announcer at scottrade, our cexactly how they want. T with scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like eve. Im with scottrade. announcer scottrade. Awarded fivestars from smartmoney magazine. At 23 minutes past the hour, im Patty Ann Brown with the fox news minute. Crews battling an idaho wildfire have another challenge today, thunderstorms in the forecast. The blaze spread to 141 square miles in the central part of the state. Evacuation orders issued in two communities; however, some residents want to stay to protect their property. An autopsy performed op a man killed last night when he fell more than 60 feet from the upper level at atlantas field, hes 29yearold ronald homer. The fall appeared to have been an accident. The 16 ocean county new jersey workers who wop a third of the 448 million meets the media today. They posed for a picture yesterday, and the nine women and seven men get 3. 8 million after taxes. There was one other Winning Ticket in new jersey and one in minnesota, and those are your News Headlines from the fox business. Connell, back to you. Connell thank you. More to come in this hour, theres a big car racing interview, a revamp for the daytona speedway they are planning. Well get to that. The governments lawsuit against the merger trying to stop that coming up, so lets talk oil. The price today, watching it closely because of the retail sales data. You see we are down a little bit, but up earlier, phil street joins us from the cme. 106 dollar crude oil, some sort of a range here . Where do you see the price, phil . Its interesting. Waking up this morning, up a buck, hitting 107. 20, a news overseas there was better than expected economic data, a bombing of a pipeline in turkey, and then also a lot of traders watch inventories at curbing. Its a 1. 5 year low, and Oil Inventories declined 20 in five weeks. Looking at prices, they sold off ever since then. Talk is basically the s p 500 is selling off a bit right now, and, also, your u. S. Prix is about 7. 56 Million Barrels a day, the highest level since 1990 so we got two critical days coming up. Api after the bell, po