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DEIRDRE BOLTON, RISK & REWARD SHOW HOST: We have a lot to update you on this hour. This is Risk & Reward. I am Deirdre Bolton.
There is progress in the investigation as to what brought down EgyptAir Flight 804.
It is big $62 billion offer for Monsanto. We will bring you all the latest. And we're going up to speed on all the market moves.
On that note, to floor of the New York Stock Exchange, Lori Rothman is there. So, Lori, big news but stocks closing are session lows, right?
LORI ROTHMAN, FOX NEWS CORRESPONDENT: Session lows but let's call it little change, Deirdre. Everyone here is from Wall Street all the way to Main Street is on Fed watch. Will the Fed raise next month or will the Fed raise interest rates in July?
Everybody is holding back waiting for to make those all-important investment decision once we get a little more clarity as to the Fed's intention. And of course we'll hear from Fed speakers because all week culminating with the Fed chief herself speaking Friday morning. Obviously it's the week before the long Memorial Day weekend so expect low volume which we saw today. One of the lowest, lightest volume days so far, 2016 we've seen.
Stocks also trading a very narrow range, one of the narrowest ranges we've also seen this year. So, again, just talk to that to a wait and see mode. That said there were still some fascinating moves, and people did make money today.
Utilities however, were a big drain. Because in this expectation of a higher interest rate environment utilities, pay dividends, classic dividend players, you might say. Well, if you're going to get a higher yield as a saver, if the fed does go ahead and raise interest rates, well, maybe utilities aren't as attractive.
So, some of the big utilities did lose ground today. Exelon off 1.5 percent, AES Corp. down 1.4 percent, and Duke with down over a percent as well.
On the other hand, basic materials, basic led the S&P 500 Index today, the leader there Monsanto. As you know German drug, and Crop company, Bayer, made a $62 cash offer for Monsanto. So Monsanto was up there today at 4.4 percent. DuPont and CF Industries also were higher here as well.
Wisdom tree -- Cayman, I think that was an error. We apologize for that. Anyway, let's look at some other commodities, oil and gold down four days in a row here. So, again, this is all playing into expectations of higher interest rates.
Now interesting story was Apple. Apple shares were up worth of 1 percent today, there was a report out of a Singapore paper that said Apple instructed its suppliers to expect units of iPhones, somewhere around 75 million, while the earlier forecast was in the mid-60 million units for those suppliers.
So, you had some of these key names enjoy a bounce because of that forecast that was put out by this newspaper in Asia. So, Apple was up and a lot of its key suppliers were up in -- yes.
BOLTON: So, Lori, I just want to ask you, because you alluded to this idea of potentially rates moving higher, when you talk to the traders on the floor there, what are they telling you about that?
ROTHMAN: OK. So, will it be June will it be July? The Fed funds future, right, that's the tool that this is the odds. It was looking a lot like June last week but now it looks like the needle is toward July. So, people are on the phone there watching this.
And you can watch the -- not today but I say like last week we saw these huge swings in volatility as everybody was positioning in anticipation.
So, these Fed speakers will be they'll care, I think it's safe to say carry an extra amount of importance, and you'll see, will probably see the volatility ramp up as his comment comes to like.
BOLTON: All right. Lori, and one quick last check, I know you mentioned oil and you mentioned some of the related stocks. Are traders talking a lot about this? Because we're in this summer driving season, almost official four days away, all paying attention to prices at the pump. What do you hearing?
ROTHMAN: OK. So, yes. I think that dollar is a little bit more influential on the price of oil as we see a stronger dollar that's going to put pressure on the price of oil which is what we've seen of late. But, yes. Big picture that sees value, summer driving season, so that could be bullish as well. But this is where we stand a least for today, Deirdre.
BOLTON: Lori, thank you so much. Lori Rothman complete reporting from the floor of the New York Stock Exchange. Thank you, Lori.
Well, speaking of stock moves, Bayers, U.S. listed stock closed lower. So, German company are trades here on and ADR month, Monsanto closing up more than 4 percent. So, Bayer, the German pharma chemical company it made at all cash offer for Monsanto.
And if the merger goes through it will create the work's largest agro- chemicals company, that's a big if though.
Fox Business senior correspondent, Charlie Gasparino with me with more. So, Charlie, $62 billion that's the sizable offer but you're saying, hey, this may not go through.
CHARLIE GASPARINO, FOX BUSINESS SENIOR CORRESPONDENT: Well, I would just say this. What we reported last night was pretty much on the money. The next 24, 48 hours are crucial. They're close to a deal, they don't have a deal.
They, you know, we would know that something was up by now because Monsanto has been in meetings all day and their bankers are at it. They are rejecting at out of hand. So, they're obviously taking this seriously.
BOLTON: So, with the bankers but then it can also be the government, right?
GASPARINO: Well...
BOLTON: Because Bayer is a German company, so is there edginess around that?
GASPARINO: I think there is -- well, I think there are two things. Does, and I think the market is telling you this, regulations could kill this bill.
BOLTON: Yes, first thing I thought.
GASPARINO: U.K regulators have stopped other cross border deals, they ask you and you care E.U. regulators have stopped to other cross border including the Deutsche Bosch buying the New York Stock Exchange. And this would be a huge -- this would be probably the biggest German purchase of any U.S. company.
We do know that U.S. DOJ is kind of sniffing around on this thing, so they may not like it. It's one thing. I mean these are huge staples, these are drugs.
BOLTON: Yes.
GASPARINO: This is something that you don't want to -- you don't want to mess with from -- you don't want to be the Justice Department messing with allowing something like this to happen. But I think the other point is, I'm just thinking maybe Monsanto comes back and says we want more or, you know, we're out.
BOLTON: That's because some analyst are saying believe it or not, even though $62 billion may sound like a lot of money.
GASPARINO: And it's cash. It's cash.
BOLTON: It's cash that actually some analyst thought, you know, this is actually a low ball.
GASPARINO: Yes. I mean, it's a little lower than they expecting. That people thought maybe $130 a share instead of $122, we'll have to be see -- what this see. My guess coming out of what I heard from Monsanto, this is just my guess, and this is just banker chatter, sources are pretty good. They did big alert to me to this thing today. Is that they are about at the price, OK. Now the question is, do they want to do the deal, OK?
BOLTON: The two businesses seem complimentary.
GASPARINO: Yes.
BOLTON: Again, according to analyst reports, they have this huge biopharma chemical company in Germany.
GASPARINO: Right.
BOLTON: And then you have essentially I know but it could be controversial the Seed, the genetically modified C companies and we know in Germany at least among the population they tend to go green. So, it may not be best P.R. move from that.
GASPARINO: Dealing from it is you have to feed the world, and I tell you genetically modified food right now is probably only way to mass produce food. You're not going to be able to do it through cow manure in some guy's backyard.
BOLTON: And but no proven side effects.
GASPARINO: Yes.
BOLTON: I think that's also the headlines because for years, decades, right, there were a lot of research looking for the problems, and no problems...
(CROSSTALK)
GASPARINO: I mean, how are you going to -- how are you going to eradicate hunger. I mean, this is a big story and it goes beyond this merger, and maybe this merger, well, whatever comes out of this, will be a springboard to this large discussion, how are you going to -- how are you going to eradicate hunger in Africa, in various parts of the world without GMO?
You can't, and I think that might be Bayer's entire rational for doing this deal. And if they think they can ay to this thing if there is a long-term strategy here, and GMO is here to stay, so we'll see what happen. I think the next 24 to 48 hours is key. Don't be -- listen.
GASPARINO: Keep us posted.
GASPARINO: I will say, I never say a deal is done until it's done.
BOLTON: Right.
GASPARINO: This one, it's got some weird smell to it right now.
BOLTON: All right.
GASPARINO: It's just, look at the way the stock is trading.
BOLTON: Let the air clear for 24, 48 hours. Charlie Gasparino, thank you very much for breaking the news on that merger for us.
Well, from a global business tea, to a global security one, more clues are being found to explain what happens to EgyptAir Flight 804. Flight data show there was smoke in one of the bathrooms right before the plane lost altitude.
Catherine Herridge has more, she is with me now. So, Catherine, what is this information change if anything about the investigation.
CATHERINE HERRIDGE, FOX NEWS CHIEF INTELLIGENCE CORRESPONDENT: OK. To the smoke in just one second, Deirdre. First of all, the Egyptian president did announced today the deployment of a submarine that can reach depths up to nearly 10,000 feet as they look for those black boxes, the Egyptian government also showed images on television of the debris, including aircraft parts and passenger belongings.
As the investigation now focuses on flight 804's route and so-called any weak links in airport security in north and east Africa where an airport insider may have tampered with the aircraft.
According to a flight tracking web site, flight 804 went to five airports in the 48 hours before it disappeared from radar, before Paris it made a round trip to Tunisia's capital where security has been stepped up since Islamic extremist attacks a museum and beach, killing dozens of foreign tourists in 2015.
EgyptAir also made a round trip to the east African nation of Eritrea where a recent U.S. government report describe security as unpredictable. And as you mentioned, the airbus had this digital data link that reports problem to ground staff, and that system, just before it disappear from radar reported smoke in the lavatory.
Also, the airbus electronics as well as windows in the cockpits. Where the Homeland Security secretary warns is still inconclusive.
(BEGIN VIDEO CLIP)
JEH JOHNSON, U.S. HOMELAND SECURITY SECRETARY: At-this-point we cannot rule out some type of terrorist acts but it still very early. And the black box was noted has not been found yesterday yet. And I suspect we'll know a lot more in the coming days.
(END VIDEO CLIP)
HERRIDGE: It's worth noting that aviation specialist say that there have been problem with the A320's windows, and this anti-ice heaters, and while the FAA in this country here required windshield replacements for all the A320s in the U.S., it's not clear whether EgyptAir made the same fix, and if this in anyway contributed to the crash of that aircraft, Deirdre.
BOLTON: Catherine, thank you so much.
HERRIDGE: You're welcome.
BOLTON: Catherine Herridge with me there.
Well, with more on international security, the U.S. is helping Iraq hit Fallujah with the aim of gaining back the ISIS strong hold. U.S.-led coalition said it conducted two strikes near Fallujah targeting the Islamic states weapons facilities and destroying bunkers and tunnel entrances.
Retired Lieutenant Colonel Tony Shaffer is with me now. So, Colonel, the U.S. obviously hopes this plan recapture of Fallujah can be the beginning of the end for the Islamic state in the Anbar province. Is this that pivotal point?
TONY SHAFFER, FORMER CIA INTELLIGENCE OFFICER: Well, it is. We're going to see how well we could expect them to do against Mosul which is going to be a larger battle. And frankly, this is part of the Pentagon plan, they are moving forward. We are building capacity; the Iraqis are in the lead. And we must face it. This is the third time we're going back into Fallujah, and this time the Iraqis is going to take it back, and I believe hold it.
And much of what we're doing as you mentioned we're doing airstrikes against key facilities as well as inspection operations forces. And one thing that is now different than last fall, is that the ISIS can't move during the day or night, we've made sure they shut them down, they cannot resupply, they cannot move.
So, I think this time, I think we'll see some progress.
BOLTON: OK. So, some good progress, and the U.S. is working with. So, Iraqi forces, counterterrorism forces...
SHAFFER: That's right.
BOLTON: ... police tribal fighters and Shiite Muslim militias.
SHAFFER: Correct.
BOLTON: So having served, how do you think the coordination is going between the U.S. and its current fighting partners?
SHAFFER: The honest answer, it's a nightmare. I mean, this is not easy stuff, this is one of the things I admire the fact that you've got Joe Votel over the checking things out. The general pretty done charges as a chairman, this is no easy task.
So, you've got a lot of moving pieces, and as you said, have this tapestry of capability that's moving together, this one of the most difficult operations that we've ever done as a military, because we're not in change, we're helping others do what's necessary.
And we've actually -- the Law and Center for Policy Research have belong to has put forth the idea of an Arab NATO which would kind of regularizes sort of the warfare for we're not in the lead. They're invested in their own defense which we think is the best way to go.
BOLTON: Yes, I was going to say and I'm sure they would want their own defense.
SHAFFER: That's right.
BOLTON: In another act of conflict, U.S. drone strike killed leader of the Afghan Taliban, one of the biggest obstacles, actually the biggest, right, to peace talks...
SHAFFER: Right.
BOLTON: ... between the Afghani government, the Taliban, there was this kind of peace brokering that the U.S. was trying to achieve. And I know, you have a new bestseller on Afghanistan called Operation Dark Heart.
SHAFFER: Right.
BOLTON: So, how do you see this one leader, Al Qaeda leader being taken outs of the equation?
SHAFFER: It's this critical. One of the puzzles I put in my book was the idea that the conflict there is like Northern Ireland conflict, you have essentially the same religion fighting among itself.
And I think the path forward will be very similar to the Dublin peace process. The idea is we have to get to piece people together who want to talk and those who did not want to talk like Mansour need to moved out.
I hate to sound that blunt about it but he was an obstacle and I think this was I believe to talk in a positive and come out eventually, and a reconciliation between the Taliban and the Afghan government who will support it.
BOLTON: to your point, it could be seen as ruthless but it provides security for the world?
Right. OK. And I mean, to your point it could be seen as ruthless but it's also providing security pretty much for the rest of the world.
SHAFFER: That's right. The Irish conflict, the Northern Ireland conflict was very brutal and it took this sort of maneuver to get people on the table and eventually it worked.
BOLTON: Retired Lieutenant Colonel Tony Shaffer, thank you very much.
SHAFFER: Thank you.
BOLTON: Glad to have you here. Thank you for sharing your insight.
SHAFFER: Thank you.
BOLTON: Two polls show Donald Trump and Hillary Clinton in almost a dead heat if there were an election, a general election in the coming weeks. We will share the results if the polls with you.
And Senator Sanders is increasing his attacks against Hillary Clinton, find out what he is aiming for, ahead of the California primary.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You have an unfavorable rating that is almost as high as Donald Trump? How do you do it?
HILLARY CLINTON, (D) U.S. PRESIDENTIAL CANDIDATE: Well, it's not as high. And I am...
(CROSSTALK)
UNIDENTIFIED MALE: No, not everybody.
(END VIDEO CLIP)
BOLTON: New polls show that Trump and Clinton may be in a dead heat in a hypothetical general election, if it were to happen very shortly.
With more on the data point we take you to D.C. Peter Barnes is there. So, Peter, what stands out to you in these polls?
PETER BARNES, FOX NEWS CORRESPONDENT: Well, so, kind of a split decision for Trump and Clinton in the latest new poll out this weekend. And a new ABC/Washington Post poll had Trump up by two points. A new NBC/Wall Street Journal poll had Clinton up by three, but some bad news in the surveys for Clinton definitely.
In April, Clinton held an 11-point lead over Trump in the NBC journal poll, and in March, she was beating Trump by 9 points in the ABC post poll.
And in the new NBC Journal poll, Bernie Sanders beats Trump by 15 points, 54 percent to 39 percent. One kind of piece of good news for Clinton in both of these new polls. Voters, negative views of Trump continue to be higher than hers but not by much. Speaking to union service workers in Detroit today, Clinton continued to hammer Trump.
(BEGIN VIDEO CLIP)
CLINTON: We're going up against a candidate who will pause backwards on every issue we care about. We need a president who will use the bully pulpit to stand up for working families, but the last thing we need is a bully in the pulpit.
(END VIDEO CLIP)
BARNES: And as for Trump, he was behind closed doors today meeting in Manhattan with Tennessee Senator Bob Corker, the republican chairman of the Senate Foreign Relations Committee. Corker has been mentioned as a possible Trump pick for vice president.
Corker called their session a simple get to know you meeting where the discussion on foreign policy of course instead of the V.P. speculation, I have no reason whatever to believe that I am being considered for anything like that. Deirdre.
BOLTON: Clarity rules. Peter Barnes, thank you very much for their take on the polls.
BARNES: You bet.
BOLTON: My power political panel is here. Conservative commentator, Kirsten Haglund, Deneen Borelli, conservative review and chief political correspondent; and democratic strategist, Kelly Grace Gibson.
Welcome to you all. So, Deneen, first and foremost, what do you make of the results of the polls?
DENEEN BORELLI, "BLACKLASH" AUTHOR: Well, listen. I think this is significant findings here, because Hillary is so used to be in the lead, and now Donald Trump has basically closed that gap when it comes to the favorability of what Americans are thinking.
I also think that it's really interesting that Donald is leading Hillary by 12 points, in two areas where Americans are really concerned about the economy, where Hillary's plan is one page, one word, Bill. And he's leading when it comes to terrorism. Americans are concerned about the economy, they're concerned about terrorism.
BOLTON: Which are great points. And Kirsten, you're nodding your head.
KIRSTEN HAGLUND, CONSERVATIVE COMMENTATOR: Yes.
BOLTON: So, those two data points stand out to you as well?
HAGLUND: Yes, absolutely. But you know, I think that everyone should be aware of the fact that this what, May, and the election is not until November.
BOLTON: Right.
HAGLUND: So, obviously, these polls mean very little at this point, but really it's going to come down to who turns out, and is it people that don't like Hillary Clinton or people that don't like Donald Trump, right? Because there are so many never Hillary and never Trump on both sides.
So, these unfavorable numbers are really what to look at, because the people are going to end up voting for what candidate they dislike the least. This poll will do about there.
(CROSSTALK)
BOLTON: I saw an interesting part there over this weekend which actually shows at some point how much Mitt Romney actually had in support against President Obama.
HAGLUND: Right, in 2012.
BOLTON: And then at very last month it just crisscrossed back.
HAGLUND: Right.
BOLTON: So, Kelly, bringing you in on this point, what do you make of the Clinton, since you are a democratic voice, the Clinton-Sanders future match up in California.
KELLY GRACE GIBSON, DEMOCRATIC STRATEGIST: Yes. I think that part of it's sort of ties back to your conversation about these polls. On the democratic side there are a lot of voters that are still participating in a very heated primary election which isn't happening on the republican side much anymore.
So, it's still a pretty hard path to the nomination on behalf of Senator Sanders, but if he can take 80 percent of California, and 60 percent of the remaining states there is a path.
So, the numbers are pretty much more even both because of the six months saying. If you look back in the 2008 presidential election, Obama and McCain were tied in May of the election year also. So, it's pretty hard to get those numbers accurately to depict what's happening in the general election.
But right now the Sanders/Clinton thing is still very, very relevant in the minds of a lot of democratic voter.
(CROSSTALK)
BOLTON: Yes.
GIBSON: Either rightfully so or not. Yes.
BOLTON: I want to speak to this point of unity that you just made, because former presidential candidate Jeb Bush has in the past criticized Trump's campaign but now he is defending Trump supporters. Here's Jeb Bush.
(BEGIN VIDEO CLIP)
JEB BUSH, FORMER U.S. PRESIDENTIAL CANDIDATE: What I fear is that people kind of looking down their nose will say that people that are supporting Donald Trump are a bunch of idiots, they are not. They're legitimately scared, they're fearful, they're not as optimistic for legitimate reasons and there should be respect for that.
(END VIDEO CLIP)
BOLTON: So, Deneen, do the republicans at this juncture have a smoother time, can you make that argument where Donald Trump is the nominee clearly and the dems are still fighting it out?
BORELLI: Well, here's the thing, the end result could be that Hillary Clinton is the president. And that is what republicans, conservatives do not want. And so I think it is essential for republicans, conservatives to really unite, to coalesce, to gather. And to look at the fact that the end result will be another extension of President Obama's administration.
(CROSSTALK)
BOLTON: Well, yes. The democrats haven't had a chance to do that.
BORELLI: How taxes support economy, regulations. Our middle class is suffering is right now, and we are really hearing from middle class Americans in terms of the jobs situation, how Americans don't even have money safe for basic emergency issues that come up in families, so Americans are really hurting right now and they are speaking.
BOLTON: Kelly, you wanted to jump in?
GIBSON: Yes, I mean, and the democrats are not doing that yet because there is not a nominee clear in the outright. So, you know, the comparison of Trump to Hillary right now is not really an accurate one, when she is declared the nominee, which is likely to happen, and the vast majority of Sanders supporters come over to our side for the same reasons that anti Trump folks have gone to the Trump side after his nomination.
You get to have a real conversation about who should be next the president, right? And I think when you get to that point, Americans will speak with their in the polls and she'll come out on top absolutely.
BOLTON: All right. We're going to continue this conversation. Kelly, thank you. Deneen and Kirsten, staying with me. We'll just have a quick break to take.
Senator Sanders increasing his fire power against the democratic establishment accusing it of favoritism for Hillary Clinton. Saturday Night Live gave a difference version though, of the two rivals relationships.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Remember, remember when I told everyone to stop talking about your damn e-mails, what a snuck.
UNIDENTIFIED FEMALE: Oh, my God. I remember all those states like Wyoming...
UNIDENTIFIED MALE: Oh, yes, Wyoming.
UNIDENTIFIED FEMALE: ... where you beat me by a lot, but then I still got most of the delegates. I really don't like people. I only talk to them because I want to be the president so bad. Please don't tell. Don't tell.
UNIDENTIFIED MALE: I think they know. I'll leave.
UNIDENTIFIED FEMALE: Never.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
SANDERS: We need a campaign, an election coming up, which does not have two candidates who are really, very, very strongly disliked. I don't want to see the American people voting for the lesser of two evils.
(END VIDEO CLIP)
BOLTON: Senator Sanders said not dropping out even though he needs 91 percent of the outstanding delegates to be the democratic nominee. That compares to Hillary Clinton's 10 percent.
So, the Vermont says party leaders favor Hillary Clinton. He is challenging DNC chair, Debbie Wassermann Schultz saying if he were elected president he would not reappoint her as DNC head.
My political power panel is back. Kirsten Haglund, Deneen Borelli, and Kelly Grace Gibson, thank you all for staying with me.
So, Kelly, what does Sanders want here, we're talking of course June 7th, California primary. It's the big kahuna, if you like. If California were a country I think with 10 top 10 in the world for GDP so it's a big price.
GIBSON: Yes.
BOLTON: But at this point honestly looking at math he is not going to win, what does he want?
GIBSON: Well, he wants to follow through to the end, why he got in the race in the beginning, which is to get topics on the table to talk about that weren't necessarily part of Hillary's platform from the beginning.
And he should be -- and him and the people that are feeling the Bern should be very proud of what they've done, where she is talking about things that are farther to left than what she would have otherwise done.
You talk a little bit about the chairwoman, Debbie Wassermann Schultz. He's making an interesting decision backing a candidate that's very unlikely to win in that congressional district.
Hillary Clinton carried around 70 to 30 percent in the presidential primary election. So, I'm not quite sure that's the right place to spread this massive list of e-mail list that he's got.
But I do think what he's trying to accomplish in California is to prove that the issues he talk about which are good, progressive democratic values should be on the table in this presidential debate. And I think she's heard that and I think she will change her platform to incorporate that going forward.
