Level, we are watching the vix very closely. Budget deal stocks as well as economic news. A mix to retail sales a little better and joblessness continues to show a weak economy and weak job numbers. Lets look at lulu lemon which was a darling for a long time under pressure, a 11 , going to have a new ceo but todays news is about the fact that their expectations for sales and trends will be lower. Traffic, hard to get products to the stores and quality issues we reported on as well. Dennis the friendly skies may be less friendly. Regulators getting set to vote on whether americans can have their say on the issue of being able to make cellphone calls during a flight. Rich edson live from Reagan National airport with more. Can you hear me now . Rich i can and thank goodness we are not on a cellphone. If we are 25,000 feet from now and we are on our cellphones we can have that conversation at least if the fcc continues to move forward, the fcc will vote to continue considering whether or not americans should be able to use cellphones on flights. As for folks that Reagan National airport washington d. C. Passengers are split. I like the peace and quiet on a plane, like to be able to work or read and i would prefer that other people not be talking around me. What difference would it make . I dont see a problem with it. Nationally she is on the losing side. 59 say they dont want anyone to talk on their cellphones or have the ability to do so on a flight, 30 say why not. As for why the fcc is doing this, they say this is the technical aspect of all this and they are just allowing the airlines to install the equipment if they so desire and the fcc chairman supports it. Where there is new on Board Technology that eliminates that potential for interference there is no need for an interference rule. This is the responsible thing to do. Also says he doesnt look forward to the thought of sitting next to someone on their cellphone even if the fcc approved this, the airlines would have to say ok and install the equipment. The f a a would have to decide it doesnt impose a safety risk and congress wouldnt have to get involved. It there is a billing congress that would make this illegal. Adam the white done is for loading and unloading only. Lori it is sure getting a lot of reaction. Lets bring the topic to our next guest who believes talking on the phone has become a nasty bogeyman everyone is a necessarily afraid of. Joining us to overcome our fear is, this lurking monster is boy Group International president , you are not a lurking monster, you say this legislation might seems to be just that. I will let you pick up from here. Congress have legislation on this they should be ashamed of themselves with everything going on worrying about cellphones on an airplane is reprehensible. These guys need to get a job. I think we all talk to each other on airplanes, if someone wants to use a cellphone on an airplane, fine. Normally if we use a normal tone is not going to be anything difference though it is one of those things everyone knows. It will be awful. I am not sure it is. Wont have airlines jumped at this. They say we want your quiet and wont install the equipment. Lori people whod traveled coach, ride Commuter Rail on regular basis, you are really smashed in fair and even the most quiet civilize phone call can be a distraction, airline the listening to these people but theyre obviously conducting a business here, there might be another source of revenue. It could be. Any equipment you put on an airplane, maintenance and Everything Else will way that out but it could be a source of revenue but that you can use your phone on penn central or the pass trains or long island rail road, you should be able to use it on an airplane. The airlines will probably say no. Lori what about setting up a quiet car and charging passengers a premium to sit there . Dont say that you gave them an idea to gouges with another fee but that is possible. Lori lets talk about easily she mentioned congress should get a real job. Part of this budget likely to be voted on seems like theres already a deal, bipartisan deal, includes higher fees for passengers to ensure security. Do you think that is a legitimate new cost for us . It is not. The t s a waste more money, they wasted a couple hundred dollars on a silly program for behavioral testing or something. The problem with this new increase the psa what it will go into the general fund. All this is is gouging the American Public to fund Something Else saying we will be safer. The t s a doesnt spend their own money properly. Lori i understand what you mean by a general fund. Where will these moneys go . They will just put into a general fund. It wont be earmarked or funded, that is the problem. The tse would wasted. They are wasting what they have now, not being required to spend what they have now responsibly so why from more money at them . Lori airfare seems to be going up. And i wrong in that assessment with the consolidatio the usairways ledger getting the stamp of approval, fewer choices for passengers . Is this plane into these higher airfare trends . Where do you see that headed . The real driver in air fare increases is airlines dont want to but more seats in the sky. Airlines are not trying to kill each other. Like five families theyre happy with. That plus fees, plan on it, air fare, the cost of flying will be going the. How much i dont know but it will always go up but these new fees on the American Public isnt going to make it any better. Lori we just showed our viewers most are up, a am are happens to be down, a 2 million aircraft order, might be playing into that share action. Always great to talk to you. Thank you for your time this afternoon. Dennis puerto rico faces the risk of a credit downgrade from another ratings firm, moodys is warning it could cut the island Credit Rating to junk and our next guest says the downgrade would trigger volatility in the muni market as 70 of muni bond funds told Puerto Ricans that. The head of municipal strategy and research at Morgan Stanley, Morgan Stanley says 80 of the 570 Municipal Bond funds tracked by morningstar had exposure to pr. I want to point out you were at fitch. You say people should not be too upset . Should moodys or fitch downgrade porter regard to junk status. Pr is important to the market and is when we held, that being said what happened in puerto rico doesnt tell us about what is happening in municipal credit more broadly. And a positive outlook and therefore any extra market volatility caused by puerto rico downgrade creates more buying opportunity and sell signal. That comes much later and a good time after the downgrade. We are watching the outflows from municipalbond funds and u. S. Households, mom and dads who hold municipalbonds down to 1. 64 trillion in the Third Quarter so the Retail Investor doesnt want to buy these things. When would the opportunity to buy come . In general for the muni market the best opportunity is to wade through the expected Interest Rate rides we see over the next couple quarters and outside sensitivity, but rising rates in this environment and debates over the course of 2014, we go through a couple quarters of interest ratings before rate rising becomes more of a neutral factor in the market and things like credit quality and tax value didnt you better risk reward market. Until then a transition is likely to be painful. Adam if a credit downgrade comes, if they do the downgrade then the muni bond funds have to sell worthy bonds to meet obligations required that a governed by and perhaps out lows as people get worried about these downgrades . Not necessarily correct. Without being able to speak to every fund out there most funds have capacity to hold bonds based on the Credit Rating at which you purchased them and have capacity to hold bonds below investment grade, Even International funds. Check the fund for what capacity is but we are not expecting that a downgrade is necessarily a trigger for broader selling, more concerned a downgrade sends a negative signal to investors more broadly about muni credit quality, the incorrect signal and that would extend that. Dennis one thing that is positive in this as Interest Rates go up as the fed tapirs is the yields on bondss will be going up and that will attract money back in. What returns are you looking at in 2014 . I saw your worst case scenario, we are saying we could see a loss of 6. 2 to 7. 8 and the reality is 1. 7 to 4. 1 in 2014. It is 1. 3 . It happens early in the year, most of it is driven by Interest Rate increase assuming the economy does better, and as the fed will taper based on better Economic Data in the first part of the year so at that point you expect Interest Rate risks looking at the balance of the year and it would be less on Interest Rate and more of all play on what you think about credit quality more broadly, tax value more broadly and those are the factors that are favorable right now. Adam in your note the got everyones attention nobody should expect tax reform to jeopardize the issue with Municipal Bonds in 2014. I will quote your note. It is never fun and eventually it will end. Thank you. Thanks for having me. Webmac ending budget brinkmanship. House republicans are rallying behind the plan, former senator scott brown joins us, not so sure the budget deal with the real thing. Adam the fight to save an orange crop that is turning green. Lori a rough go of it. Could the real issue be that it is not sexy enough . People magazines reigning champ adam levine, the sexiest man alive, ready to help, thank goodness. [ male announcer ] heres a question for you if every u. S. Home replaced one light bulb with a compact fluorescent bulb, the energy saved could light how many homes . 1 million . 2 million . 3 miion . The answer is. 3 million homes. By 2030, investments in Energy Efficiency could help americans save 300 billion each year. Take the energy quiz. Energy lives here. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Adam Nicole Petallides is at the Stock Exchange looking at todays big losers. Nicole keeping a close eye on oracle before the opening bell, talking about the fact that oracle is likely to be under pressure. There it is down 2. 5 . At the lowest point, some of those losses, there is concern about oracle overall, Morgan Stanley to an equal rate just talking about the path of growth remains unclear. You dont want to hear that. And outperform and it is up 5 , the analysts seems to think it is fairly valued at the current level. Adam thank you. Webmac the latest in washington the house during the put the final vote on a bipartisan budget deal. It is a step in the right direction, next guest says it doesnt fix the countrys biggest problems. Republican senator of massachusetts at Fox News Contributor scott brown joins us. Great to have you this afternoon. Begin with your take. Why do you think congress was able to reach a deal so quickly . Take the good and the bad. They are getting back to regular order. The Senate Passed a budget, the house and senate can conference it, creates uncertainty and stability for a little bit and avoid a Government Shutdown and reestablished all little confidence with the American People saying they did something before christmas. That is the thing that will be left. The bad items are doesnt do much of anything. We are 17 trillion national debt, cuts 28 billion over ten years, those cuts are at the end, doesnt address social security, medicare, medicaid, defense spending and other items that are dragging down and increasing the debt and deficit. It is better than nothing. It doesnt address the big things. They have to start to do that. They do not continue to spend and go deeper into debt. Lori to your point it is back loaded. It is down the road renegotiated, the budget dealing. They have done it before. And their cuts are at the end. Somebody has great teeth and what theyd do is pull the good ones first and save the bad ones from last. Should be the other way around. They are doing what need to be done at the end and with sequestration i am glad the military will be taking care of and other services that had the president given these secretaries and others the transfer authority they wanted like the at a received a could have addressed this internally and could receive those cuts. Lori the federal government is not extending Unemployment Benefits especially on a day like today initial jobless claims were higher, coming off of two months of improving job creation but this is a setback and it is clear we are still in the job creation crisis. Of course it is. The reason the unemployment numbers are going down is people stopped looking at and it is of problem. Two conversations. What is the budget battle, one is dealing with deficit and one is providing benefits for people that need help and theres a role for government but we have Unemployment Benefits for quite a while. We need to focus more on job creation, job retraining instead of just providing handouts for months at a time. Lori will this add to the incentive for the person who has been out of work many months to get out and find a job or does that job not exist . This is a touchy issue. Of course it is. Different sectors have more opportunities but if someone trained up properly and have good job training and get back in the workforce there is great dignity and getting a paycheck and providing for your family. We need a transitional period to get off welfare and get off of these benefits so they can transition in to work and not penalize them for getting a job. Lori back to why the budget deal was done so quickly, what is it in the republican strategy, basically hoping the obamacare works in their favor for the midterm . It is one factor. Obamacare is a mess. People on Prescription Medication and the highcost person of the very serious needs are being cut. A lot of folks were misled. The people who voted for this, the democrats who ran to this through need to go back to their home states and explain to the people why they did this and why they did not allow them to keep their plans and grandfather amendments which they voted against. It is the mess. They need to fix it. There are so many things that the reason they passed it is to have one thing going for them before christmas. Lori thank you so much, appreciate your insight. Adam the sexiest man alive and heading up obamacare, promoting Health InsuranceExchange Enrollment in a new social Media Campaign for the administration. Other celebrities including fran drescher, supposedly appeared in daily videos and posts promoting just wanted to get in on this because you love adam levine. Webmac the wrong adam was selected sexiest man alive. Adam he put out his first promotional tweet. California, you can get covered. If you are a president so harry. This is not a new tactic for the obama administration. Celebrities including lady gaga and Carol Williams have promoted health care. Gov in the past. Lori time to decide. Looking for a Firm Commitment on Alan Mulallys plan the microsoft tries in a way . Adam a huge day at the big board, back in on wall street, the stock reaction and the secondlargest initial Public Offering of the year. So i can reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long sto. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. 26 minutes past the hour, this is your fox news minute. John kerry is back in the middle east beginning a two day round of peace talks with israeli Prime MinisterBenjamin Netanyahu and Palestinian Leader mahmoud abbas. Scientist at trying to fix a problem with the International Space station. There the cooling system that is malfunctioning and it cut the cooling ability in half. Crews are trying to fix the problem but nasa says it is not lifethreatening. Theres new reaction on this line Language Interpreter at Nelson Mandelas memorial service. Sign language groups say his gestures made no sense with a South African cabinet minister admitting he made a mistake in hiring the man. That interpreter claims he suffers schizophrenia and saying he saw angels that the event. No word how he got in. Those are your headlines. Back to adam and lori. Little frightening. Adam time to make money with Charles Payne looking at the online retailer, good deals, will it be a good deal for yo