Going viral. That and more in this hour of markets now. Connell thank you for joining us. I am connell mcshane. Dagen mcdowell will be back on monday and we will get back to those things i talkedabout including the devil they be in a minute but we will talk the start with the markets, we see Nicole Petallides in place at the Stock Exchange. Nicole we are pushing ourselves into positive territory for the week. This week the dow is up 3 points. Right now but 52 points at this moment, up 1 3 , the nasdaq and s p the selling of quietly. We are talking fractional moves. It is expiration friday so we could see some volume and volatility today, we got in some Housing Starts numbers, nearly 10 . What is interesting is continuing to surpass analysts expectations and to summer levels so that continues to be good news ultimately. What we are seeing on the dow o jones industrial average, American Express after its earnings up 6 , chevron, exxon the best performers. On the Dow Jones Industrial average helping it along. Biggest loser in town. Connell breaking news on the heels of massive data breaches at target and markets. Startling new report, those incidents may be the tip of the iceberg. The Security Firm eyesight partnering up with the department of Homeland Security, new details of supersophisticated, and through the Retail Sector and even beyond that. For more on that we bring the eyesight chairman and ceo, to tell us this is something we have never seen before. And this has not been seen to the extent of the last few days. What is different is the scale of sophistication of the attack, not just the origin or who is being targeted, criminals up there again, creating a set of capabilities, sophisticated techniques and tactics and when they create this capability they dont want to execute against a single victim but broadly. You have the availability of core technical capabilities that you cannot go by, sold off at times in the underground market places a round world. Criminal interests can buy the core capability and advance and customize it. And a certain variation, and another variation, and largescale attack against what will likely be a large swath of retailers and merchants. Ashley connell without that, try to scare people half to death, you cant go to the store or use your credit card and losing your identity. In simple terms, is this a huge story . It is not an even market. How much of a risk is out there for regular people going shopping . I dont think we have seen this end of this. This is the tip of the iceberg in terms of how widespread these types of attacks work through the systems and but for the folks who have been publicly disclosed, they are doing the best they can. The reason the report went out is to try to give insight to potential victims, technical characteristics to look for so we can get this surface quickly and contain the losses before they spin out of control. Connell talk about technical characteristics. Russian origin in terms of that code base was sold, it can be sold any part of the world. It takes the code base and builds custom configuration and executed with a strategy to maintain persistent access in an environment so you get access to points of sales, hide somewhere where the anti virus detection routines will not find you and find yourself in a position where you can capture the data on cards in the clear before it is encrypted. That is one part of the battle. You can find credit card information and more importantly value get it out. The point of scale systems dont have arbitration past. You can walk out the door, sophistication of the attack is not just a code base. It is not necessarily russian but whoever. The breadth of the attack and sophistication is what the concern is. Connell terrific explanation and scary stuff from john waters, we appreciate that. John said it didnt necessarily matter as we follow this news whether it is coming from the russians or sold to someone else but the idea american institutions and attack come from overseas it is more a foreignpolicy issue, as we deal with these, and he is now all Fox News Contributor and joins us by telephone. What more can we do, we talk about technical issues already but Foreign Policy terms what more should we be doing to combat this . Attempts to Gain International cooperation on cybersecurity, we have to strengthen the state department. And cooperative efforts to protect cybertransactions. And Banking Systems at risk here. And everybody makes the society go, hackers can go in and 100 million accounts, the practical matter, and anyone watching this show, and Pay Attention to, check your monthly statements out if you see anything that is wrong and start reporting. And people have to be careful about the index with their information. Connell it sounds so simple, and next thing you know what happened here . You are right. It happened to more people not just because of this target story the other stories. I felt what john who was on with us, in terms of the political implications of it, it doesnt matter if this started in russia. It is a harder issued to fight politically for what is clear cut. The responsibilities global. The internet is global. There has been a dramatic shift in modern times towards all the transactions over the internet. Credit Card Companies have it easy to engage in instantaneous checking on card information and so we have a personal responsibility to check this out. And our country as the lead commercial nation in the world as the real responsibility for our own people to make sure the security of financial institutions, our individual Financial Security as we put it up on the internet is going to be protected and one of the things i think where questions have to be raised, if we know the National Security agency has the ability to listen in on car phones, to our computers, filed a keystroke, what they doing about this, what are they doing to track the movement of hackers into our u. S. Cyberspace . And the administration, up what assets are they putting to work to make sure we can protect our Financial Sector and all the other important sectors in our economy. Connell thank you for your time. Appreciate it. Brought up the nsa. In washington, cybersecurity may become a feature story the agency has to deal with but today president obama making his first formal response to outcries following the nsa documents week. He is proposing greater limits on access and telephone data and privacy safeguards for foreigners and is about to speak more about it. Rich edson following that live from the white house. Rich as for what these programs will look like that is a to a lengthy process according to Administration Officials but the president will announce a few minutes here including a review by the attorney general, National Security agency and congressional input, we dont exactly know what these programs will end pablo looking like after these reviews and what the administration and congress decides, one change that will take place, one of the more effective ones will be in the Government Official who wants to access the phone call to phone call date of the governments weeks up will have to go to a court and get a court okay in order to access that data. As for privacy concerns Going Forward the former secretary of Homeland Security says there are still significant concerns. If they were able to identify a terrorist attack they were able to prevent we would have serious questions about for the amendment, unreasonable search and seizure and Civil Liberties and privacy. The president was scheduled to speak at the top of the hour, still waiting for him at the department of justice. We will talk about the president s remarks later. We have more on exactly what he said. In terms of adding to what we are talking about, the next great threat to your personal data may be sitting in your kitchen, smart refrigerators being targeted by these spanners and prove point says smart tvs, wireless speaker systems, refrigerators are all being hit, 100,000 have been impacted. Targeted through malicious emails. Doubleedged sword. And more risk. Overlooked in the Goldman SachsEarnings Report is how goldman was able to cut down on their labor osts. They did it by moving. We will talk about that coming up. Here is what hersheys next step is in chocolate production. 3d printers, chocolate and 3d. Another big battle brewing over those slate fees, it is all straight ahead as markets continue. Dont go away. [ chilen yelling ] [ telephone rings ] [ shirley ] edwa jones. This is shirley eaking. How may i help you . Oh hey, neill, how areou . How was the trip . [ male announcer ] with nearly 7 million investors. [ shirle] hes right here. Hold on one sec. [ malennouncer ]. Youd expect us to have a highly skilled call center. Kevin, neill holleys on line one. Ok, great. [ male announcer ] and we do. Its how edward jones makes sense of investing. Its how edward jones makes sense of investing. My dad has aor afib. Brillation, he has the most common kind. Its not causedy a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats why i take warfarin every day. But it looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing theri of st. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking praxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell your doctors about all medicines you take. Pradaxa side effects include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. Connell as we come back on markets now we talk about Housing Starts numbers in december snow Nicole Petallides looks at the home builders. Nicole we got these numbers for Housing Starts and Building Permits and Housing Starts were down about 10 relatively and that sounds terrible, seems to be good news, exceeded analysts estimates. And relative to the summer still above the summer levels. The stock, and the downside the lead the r horton down 11 4 , leonard, pulte, you get those here, all these stocks the down 1 , 2 , they look at the group overall, here is a longerterm chart of pulte group, when you look at it, very telling. Over 52 weeks most of these stocks up 1 , 2 , the peak for these guys was may, june of last summer. That is why you see the peak and the dropoff, most of them look exactly like that. Since then they havent done so much. Connell the markets are up today, 50. The Global Market check with the european markets up sharply for the day of the weekend if you look at those markets, put the 100 by 0. 1 and cac 40 in paris and the german dax at the bottom of the screen up today by 1 1 . Google, this is tomorrows business today, developing smart contact lenses specifically designed to help diabetic so lenses will monitor glucose levels and allow diabetics to skip the fingerprint blood tests they have to do and the earth in antennas on those, flexible sense is between two thin layers of the top lens, monitor the glucose levels, through the users tears. The best part, the levels are transmitted to the users smart phone from the antenna. This is a use of technology. The bad news is itll be another five years to reach consumers with this product with the stock price up for a look at google up 1. 82 today. By now if you follow the banks and follow wall street you might know that Goldman Sachs posted a profit of 2 billion in the fourth quarter. That was the report yesterday. What you may not know is some of the success at goldman is due to lower compensation costs. Interesting the way they saved on compensation. Goldman quietly has been moving employees out of big cities like new york, london and moving out of london and moving them into lessexpensive cities, salt lake city, utah is one example. Is this a trend . Something we will talk with other while street firms, goldman up 1. 92. The fight over debit card processing fees is hitting, merchants are going toe to toe with the fed. Markets now continues and you have seen this on the internet. Look out. Taking the internet by storm. The creators coming on as well. This form of marketing, mass currency naturally. And the euro at 1. 35. We will be back on markets now. Dont go away . 23 minutes past the hour, this is your fox news minute. Firefighters in california continuing to battle a ferocious wildfire burning outside los angeles. Officials are saying the winds are dying down, the threat slowly subsiding but the flames of already destroyed several homes and forced thousands to evacuate. Police are arresting three people that they believe started the blaze with an illegal camp fire. Overseas peace talks but the situation inside syria next week. Opposition leaders meeting to decide whether to participate in the United Nations calls on Syrian Refugees trying to escape the three year civil war. U. S. Senator tom coburn is announcing he will retire at the end of the current session stepping down next january two years for his term is scheduled to end. He was diagnosed with a recurrence of Prostate Cancer but he says that is not the reason for the early retirement. Those are your headlines at this hour. Connell good to see you. Back to washington d. C. The other thing, the battle between merchants and the petter reserve of the debit card processing fees continues and peter barnes is live from the court of appeals. This is a multibilliondollar battle between big banks, retailers and the Federal Reserve caught in the middle. In 2010 it passed legislation, the fed to set reasonable and proportional fees that banks charge retailers for credit Card Transactions, when you go to 711 or starbucks, to buy your coffee. When this started these fees averaged 0. 44 per transaction. But that in 2011, at 0. 21 per o transaction, retailers sued the fed saying it had improperly interpreted the law and said the swiped fees should have been capped at 0. 12 per transaction. This all adds up considering there are nearly 50 billion of these debit Card Transactions the year now and the banks use to take in 16 billion a year in revenue from swiped fees, now they are taking in about half that and they are siding with the fed because they dont want to see the retailers for even lower. Retailers won the first round of this plate in District Court last year agreeing with retailers that the fed misinterpreted the law, the fed appealed and today lawyers for retailers were asking the Appeals Court to uphold the District Court decision. Questions from the three judge panel were tough on the retailerss arguments and supportive of the fed which they had discretion setting these fees. This could go to the supreme court. Connell big money story, thank you for personalizing that with the starbucks reference. Big imus in the morning viewer in the morning. 3d printing comings to a can the aisle near you. Hershey jumping on the 3d printing band wagon. 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