Cavuto on Business

Recap of July 6: Saving Wall Street

Neil was joined by Jim Rogers, president of; Alexandra Lebenthal, CEO of Lebenthal & Co.; Kathy Boyle, president of Chapin Hill Advisors; and Jeff Birnbaum, chief managing editor of Fortune magazine.

Saving the Markets

The major stock indexes are heading for a third down year in a row. Something that has not happened since World War II. Neil asked his guests if they think the market can be saved from repeating history.

Everyone agrees the Nasdaq, which is currently down 26 percent year-to-date, will probably close the year in the red. They think the Dow (down 6 percent y-t-d) and S&P 500 (down 14 percent y-t-d) may rebound by year's end.

Jim thinks the market will rally soon, but he does not think it will last the rest of the year. He recommends selling Fannie Mae (FNM), because it does not have to fully disclose all its financial numbers. Kathy recommends buying strength such as REITS like Vornado Realty (VNO).

Alexandra is more cautious about the market and recommends buying tax-free municipal bonds.

Jeff says the weakness in the stock market is a hot topic in this election year and that will force politicians to pass investor-protection laws.

More for Your Money: Stocks Getting High

It may be a down year for the market, but there are dozens of stocks hitting new highs everyday. How can you find them and get more for your money?

Kathy says you have to look for sectors that have posted strong earnings and should continue to do so. She says some industries falling in that category recently have been restaurants, discount retailers and regional banks like Chemical Financial (CHFC).

Jim says he thinks ENI (E), an Italian energy firm which trades on the NYSE, will reach a new 52-week high.

Alexandra thinks home builder Pulte Homes (PHM) will reach a new high.

Head-to-Head: Should Congress Clean Up Wall Street?

Congress cleaning up Wall Street? Neil says the idea is a bad joke and that lawmakers, which are known for playing with numbers and budgets, will only make Wall Street worse. Doug Hattaway, President of Hattaway Communications and former spokesman for Al Gore says new laws are needed to shore up investor confidence and that Congress is the place to create those laws.

FOX on the Spot

Kathy says telecom deals will help clean up the industry mess!

Jim says Brazil's victory in the World Cup will not kick-start its market and economy!

Alexandra thinks investors will try to recoup losses in the courts by filing class action suits against companies and Wall Street firms!

Jeff says Congress will pass tough accounting laws!

Neil says Congress could roil the stock market by trying to clean up corporate boardrooms!