Dow Nears 4-Year High, Facebook Falters Further

Your latest in business in finance from. Good morning you're watching live coverage of the opening bell on ABC news now ringing the bell this. Mr. America's. Cup that's right Dennis Conner in case... See More

Your latest in business in finance from. Good morning you're watching live coverage of the opening bell on ABC news now ringing the bell this. Mr. America's. Cup that's right Dennis Conner in case you're wondering how Conner earned the nickname he won the cup four times in his recent loaded. America's greatest sailor by his peers at US -- And there's the opening bell for this Friday August 17 good morning everyone I'm sunny Hostin thanks so much. For watching us here in New York. -- traders have been really enjoying quite a rally and is now the times this -- is the question. Joining me now with his insights on the market movement and more is Jeff MacKey the -- -- break out. On our partner Yahoo! finance good morning Jeff. Good morning -- it's -- to be here think you well. US markets have been on quite a rally approaching a four year highs but is is this a disconnect from reality. Now it's there it's always a disconnect from reality that -- -- is -- near and we shall get -- and stuff but. Traders got -- -- dance on the net and and they probably should -- -- the world as it turns out is not gonna fall under the seat tomorrow. We've got problems sure but if they're working themselves out this fiscal cliff thing. That's how -- we haven't heard about Europe in a while. Earnings are in the rear VOA and I think we've kind of been drifting higher hasn't been a ton of enthusiasm I've got -- get -- pants I'm not sure anyone else does -- But if it's working -- of the old -- it's not so batted -- this guy is still aloft and and we're doing okay. I like that it's Friday mornings I have my daddy pants on to Jeff actually I looked great up figure. Well let's move to Facebook because FaceBook Phelps in new lows again yesterday right -- Is there anything at this point that Mark Zuckerberg can do -- aid to turn things around. -- why I think we all heard enough from mr. Zuckerberg. What -- that it would. Problem here is again the fleecing of sort of via every guy and IMO Wall Street creature so I'm not supposed to say this kind of populist but I'm not pandering here. But what we saw yesterday it was an example of what we've seen all along is that institutions are just jamming shares -- this -- -- the market is -- they -- hand over fist. Yesterday we saw the release of some of these shares they Goldman Sachs and a bunch of hedge funds and and venture capitalist -- -- And they just sort out there the stock was -- 67%. Which says to me that the people that know the most about the company don't -- be anywhere near their shares. I don't wanna buy stuff that Smart guys are selling -- I I and that just doesn't make any sense him -- -- wanting you know by what Goldman Sachs doesn't wanna own because I think they're pretty Smart guys. According to bond alongside them some don't you have this FaceBook thing. I think it's time to take a pass and and if your -- and already knew couldn't sleep last night you're watching this now in an open you know -- Sonny you're gonna give you a clue what to do with your shares. You're too long it sounded -- and Obama -- life. And well let's move to big network yeah the mood -- -- just I'm not accurately and got her out there. Wimbledon inappropriately dressed like we were we were some -- -- -- Let's look -- about the gap because big gap is doing really well right I -- is going gangbusters. How do you think the company has managed to turn itself around. You know they got back to. Basics which is a little bit of a -- -- because what -- doesn't -- basics. But -- -- they they got in stock gap is one of those companies and and they're not as common as you think. Where you can go to stores and actually see how the company is doing it -- -- and stock. On unusual size -- of -- 35 inch waist pants and and 37 about about -- stuff that people. Like to go to the -- specifically for if that's all nice and clean and laid out all correctly for you. The gap is probably doing while they lost their whale ovitz got too much in the fashion and they -- -- -- stock they weren't doing just executing blocking and tackling and retail. They got -- together the new CEO and he's been -- about two years is a Canadian drugstore all people but he's got the gap clicking on all cylinders and the stock is up 8587%. Year to date. That's just year to date 120%. -- last twelve months. It's nice to see it's nice to see a comeback from -- Sanford Cisco stalwarts company. That's that's a remarkable comeback isn't it's been incredible in unmarked normally these companies specialty retailers -- love goes to die normally these things. -- lot of fashion -- -- never hear from them again. But the gap band has made a terrific comeback and and so you know this aberrant that doesn't mean go out there by every specialty retailer of the falls into the -- because most of them -- never -- again. But the gap to go figure that this guy -- turned around. Since -- looks a little bit about politics. Mitt Romney now says he paid at least 13% of his income in taxes every year for the past ten years. And if that is the case. How does that compare to what the average American household. Pace. Well he was a little bit vague if he's talking specifically about federal income tax. It's not as bad as it looks on paper and if that is the case of mr. Romney needs to talk to his advisory for speaking. But 13% of 50% of the country doesn't even pay. Income tax at all on the federal level. And at a hundred K you can take deductions that that would make your federal income tax to Menem has -- 13%. Not that uncommon is -- low what assurance low but it's not incredibly low and it depends on whether or not -- including contributions charitable contributions. We're tightening that mr. Romney as as -- more inclined to do. And here's the thing this entire pay your fair share saying. Is bogus there's nothing fair about maximizing your tax rate that that makes no sense whatsoever I don't know about you but I I hire an accountant got an accountant -- I sure do you and yes I got. Isn't there you don't you don't get accountancy could say you know what I just want to pay my raped because it's pretty easy to figure out your your tax rate. And just write a check of 35% your income however and talent. Because this tax code is Byzantine you can't figure out exactly where we're supposed to go. -- -- -- is complicated you're supposed to use it's not illegal it's not immoral in this country was founded on the idea of no taxation without representation. And I don't know about you but -- -- sign up to pay for these drone missile. Operations and fake -- smallest harbors is going on so I would rather minimize my taxes as a mr. Romney's doing if you don't like it well they involve the other way. No way outline how is that we -- go political Sargent tonight and I'm sort of thank you so much for joining me is flying -- Maggie. The rate out and let's -- -- Lauren look. Let's take one more look at the Dow right now you see it's up about seventeen. Points. I'm sunny Hostin here in new York and thanks again to -- -- for joining me this morning.