tv Varney Company FOX Business July 11, 2019 9:00am-12:00pm EDT
economic measure in u.s. prosperity means we will probably still have a trade deficit as we do. trade war, still got a trade deficit. maria: we are on the doorstep of second quarter earnings. that will be the driver for the market. the big banks, next week. great show this morning. thank you so much. have a great day, everybody. "varney & company" begins now. stuart: thanks, maria. good morning, everyone. oh, to be an investor. oh, to have money in the market. it's all come together. interest rates, trade, profits, the ever-growing trump economy and stocks are way, way up there at record levels. new highs for the dow, the s&p, the nasdaq and the value of all stocks has now gone up almost $10 trillion since donald trump was elected president. $9.9 trillion, to be precise. all right. now look at this. more gains to come at the opening bell this thursday morning. the dow's going to be up the best part of 90, 100 points. a smaller gain for the s&p 500.
nasdaq, back up there another 11-point gain. now, interest rates, that was the trigger this week. the market is predicting three rate cuts this year. up goes the market. picture this. speaker pelosi addresses a closed door meeting of house democrats. she comes down hard on the young radicals. you got a problem, bring it to me, she says. that did not go down well. aoc fired back. the speaker is quote, outright disrespectful to singling out women of color. it's a fight with race and gender thrown into the democrat divide. action in the gulf. iranian gun boats try to take over a british oil tanker. a british navy ship stopped it. the price of oil, i believe right now it's back at, yes it is, $60 a barrel, $60.59 per barrel. lots of factors pushing oil up today. records on wall street and
an intruder at buckingham palace? you get it all on "varney & company" which is about to begin. stuart: watch out in new orleans. heavy rain, flash flood, emergency in new orleans. there might be a hurricane on the way as well. lauren simonetti? lauren: look at those pictures. we are watching what could develop into a tropical storm, which could develop into a hurricane category 1 hurricane saturday morning. let me give you the good news. the models are indecisive. it could still move. here's the bad news. 14 years since hurricane katrina you have a lot of water heading to this region. the mississippi river is already crested. the levees in new orleans can only handle 20 feet, up to 20 feet, and we could exceed that tomorrow night. so the water is certainly a
problem. the gulf of mexico, the oil, you just gave, $60 and change a barrel, that is a seven-week high. you have 30% of oil shut down now in the gulf of mexico because they have evacuated the platforms because of this storm, potential hurricane. so late season flooding coupled with an early season hurricane, this could be a disaster for this region. stuart: we don't want to hear it but we are going to report it. thank you very much indeed. let's get to your money. looking good, i've got to say. as of the futures market right now, we are going to be up again at the opening bell, 90 points up for the dow, 13 for the nasdaq. gary kaltbaum, come in, please. dare i call this a goldilocks market? because that's what i'm calling it. what do you say? >> oh, don't ever use the word goldilocks with stock market, stuart. that's when the market comes back to bite. be careful. but let me say this. lower interest rates have been doing the job. back in january on the first powell pivot, the market bottomed, then he just did it again a few weeks ago at the
lows after a 7% to 10% drop in the market. i think we go higher but it is very narrow. i can tell you the small and midcaps are not participating. the transports and financials are not. but whatever's working's working very well and i think we take advantage of it. i see higher prices ahead. stuart: you would not be afraid to advise our viewers if they got some little money on the side, you would not be afraid to tell them to put it in the market now? >> two weeks ago on this show i told you i thought we would break out to the highs on the large cap indices. i think there's more to go. but keep in mind, earnings in droves start next week. there will be some changes. there will be some great-looking stocks gapping down on numbers and there will be some stocks not doing well that gap up. just keep that in mind and don't jump the gun, if you see something reporting in three days, you don't want to buy it just yet. again, overall i think we're in decent shape and the fed will cut rates at the end of july. i expect at least one more this year. stuart: i don't care what you say, gary, i'm calling it a
goldilocks market. >> go right ahead. stuart: stay there. i've got more for you in just a second. the "wall street journal" is reporting that amazon is going to retrain one-third of its u.s. work force. technology's changing the nature of work and i believe amazon's going to spend $700 million on this retraining effort. look at delta. better profits there. they do not have any 737 max jets in their fleet. the stock is up a buck this morning at $60. not such a rosy forecast from bed, bath & beyond. that's a troubled retailer. they are down 5% this morning, right there at $10 per share. speaker pelosi reportedly, well, she did, she scolded the far left members of her party in a closed door meeting yesterday. here's what she said. quote, so again, you got a complaint, you come and talk to me about it but do not tweet about our members and expect us to think that that's just okay. she said that, aoc responded
with this. when these comments first started, i kind of thought that she was keeping the progressive flank at more of an arm's distance in order to protect more moderate members, which i understood. but the persistent singling out, it got to the point where it was just outright disrespectful. the explicit singling out of newly elected women of color. marc lotter is with us, strategic communications director for trump 2020. now, republicans can sit back with glee and look at this divide. i got that. but you know, this divide in the house could really upset the legislative agenda and stop some very important stuff from going through. it's not all good news, is it? >> there's not much going through right now anyway when you look at the inaction of this democrat congress. but their in-fighting is definitely having a toll not only on congress but also on their political candidates for president. it's clear that aoc is the
intellectual, you know, mastermind behind the democrat party right now. you see the democrat candidates for president endorsing many of the things that she supports. so this is a push and pull between two factions. it will be interesting to see how they work this one out. stuart: interesting? come on, you love it. let me move on, shall i. labor secretary alexander acosta defending his handling of the sex crimes case against jeffrey epstein more than a decade ago. how did this become trump's fault? >> everything in the minds of many in the mainstream media is trump's fault. i see more discussion on cable news about the president than i do about bill clinton, who actually rode on epstein's plane reportedly 20 some times, visited, he actually got caught lying in terms of when he actually had his relationship begin with him, but they would rather talk about the president rather than bill clinton, where this scandal is clearly more closely connected.
stuart: so let's leave it at that, shall we. just bear in mind there is an enormous divide among democrats in the house and you, sir, are loving every minute of it. i know that. come on back any time you like. marc lotter, thank you, sir. now, elizabeth warren reintroduces legislation that would require corporations to disclose climate risk exposure. back to gary kaltbaum. lf all right, i'm reading between the lines and this seems to open the door to climate litigation, a lawsuit avalanche if this passes. what do you say? >> oh, and taxes and more taxes and more taxes. i keep hearing from elizabeth warren that she's a capitalist, then she keeps telling us what she's going to do to this company, that company, this industry and that industry and it all comes down to more rules, more regulations, more fees, fines, mandates and taxes. there is nothing in capitalism that's defined by what she says and does. stuart: i doubt that this
reintroduction of this legislation is going to actually pass, and i doubt that elizabeth warren is going to be the nominee for the democrats in the presidential election. i don't know that, but i'm speculating here. so is there really anything to worry about here? >> i don't think so. i also think a lot of this talk in the primaries from the democrats on climate change is for the base. i think they know better that once you get to the general, you better start talking to the independents or you have no chance of beating donald trump. so that's my hope because i think this climate change, i think the climate changes all the time. i think the hoax is all these people telling us we got to pay for all of it and we can stop hurricanes and tornadoes from happening. stuart: gary kaltbaum, thanks for joining us. see you again real soon. you better take a look at futures again, please. you are going to like it. this is thursday morning. new highs across the board yesterday. we are going up again this morning. the dow could be up about 100 points right from the get-go. look at at & t.
it's going to become -- i think it is becoming the first major wireless company to block those annoying spam calls. good story. i love it. we're on it. the french giving final approval to a new digital tax. it takes aim at our american technology companies. however, our government's going to investigate this to see if it discriminates against our companies. here we go. immigration raids targeting thousands of illegals in cities will begin this weekend. that story is next. ♪
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vessels, some of them getting hostile, three of them, the warship trained their guns on these vessels. we have a uk defense minister saying there's evidence it is the revolutionary guard in iran and they are pretty fast, they have speed boats but -- go through the straits of hormuz, basically these are boats armed with torpedos, short range missiles, also small patrol aircraft as well, craft that have machine guns and rocket launchers on board. but the straits of hormuz as we know, this was a u.s. drone shot down recently. given that we have crippling iran sanctions in place, they are saying this kind of hostile act might be increasing in the future. stuart: they are prodding us. susan: it's also the uk. don't forget, the uk, germany and france are part of the 2015 nuclear agreement and they stood by iran despite the fact the u.s. pulled out. can you imagine how they feel?
stuart: cheated, i would say. all right, thank you. heavy rains, flash flooding in new orleans and now a really bad storm may be headed for louisiana. joining us is senator john kennedy, republican from the state of louisiana. mr. senator, we have some video of pretty bad flooding in new orleans already. how bad is the situation developing in your state? >> well, it doesn't look good, stuart. i'm headed home as soon as we take our last vote today in the senate. we don't know yet, look, the people of louisiana are tough. they're tough as a pine knot. and we have been through this. but if you get 20 inches of rain and heavy winds over a two-day period, you're going to flood. i don't care if you are living on pikes peak. i'm worried but i think we're as ready as we can be. stuart: as you know, mr.
senator, i.c.e. raids, immigration deportation raids, begin sunday. how do you feel about that? >> i support the effort. in america, we have rights. that's the good thing. we cherish those rights. when's the last time you heard of anybody trying to sneak into china? people want to come here and i'm flattered by that, but we also have responsibilities, and one of those responsibilities is to obey the law. now, we have a federal law is not a la carte menu. you can't just pick the ones you want to follow. illegal immigration is illegal. all president trump is doing is enforcing the law. by the way, so did president obama. he deported about four million people. so did george bush. he deported about ten million people. so did bill clinton. he deported about 12 million people. and all the president is doing is enforcing the law and i support him unconditionally. now, it ought to be done
appropriately, it ought to be done respectfully. but if you're in our country illegally, you're breaking the law. you're a criminal. stuart: where do you think the country stands on this? because many democrat candidates are standing up and saying there should be no control at the border whatsoever. i mean, genuine open borders. how does the country feel about that? >> i think most fair-minded americans support the president on this. now, many of my democratic colleagues, not all of them, currently believe that illegal immigration is a moral good. they believe in open borders and their position seems to be that if you have border laws, you're a racist. i don't think it makes you a racist. i think it makes you prudent, because if nothing else, public safety. not everybody who comes into your country is a nice person and that's why they should be properly vetted.
we properly vet and admit a million of our world's neighbors a year, more than any other country. stuart: i'm one of them. >> we're glad to have you, stuart. stuart: thank you very much indeed. we wish you well on your trip back to louisiana today. tough situation. thank you, sir. check futures again. now we are going to be up 100 points for the dow industrials. we have been climbing most of the morning, up about 18 on the nasdaq. another rally coming in about 11 minutes. joe biden, he made nearly $16 million since he left the white house. he and his wife jill. a new report shows he used a tax loophole that president trump -- sorry, president obama tried to stop. how about that. good story. we're on it.
can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. i kept putting it off...t get what was i thinking? ago.
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stuart: joe biden reportedly used a tax loophole that president obama tried to stop. okay. so tell me what's going on. susan: it's called the s-corp. let me put on my accountant hat for you. basically the bidens arrive at their book and speech income through an s-corp bypass. they roughly saved over half a million dollars by doing that since they reported profits of $13.6 million in 2017, 2018
through book sales and speeches. now, the 3.8% self employment tax usually is for individuals that make over $200,000 a year, that's taken off your wages automatically, or for a couple that makes $250,000 a year. people with profits, you can declare that as neither income or investment income and you save that 3.8%. that's essentially what the bidens did. it's interesting that this loophole for individuals was to be closed during the last year of the obama administration, at least the administration pitched to do that and that would have saved close to around $270 million from 2017 to 2026. stuart: that's the whole country. susan: that's right. it's interesting to note that the clintons, obama, warren, sanders, they all paid self-employment taxes. not the bidens. stuart: joe biden did not. okay. interesting. all right. next case. the "wall street journal" says treasury secretary mnuchin is telling u.s. companies which
supply huawei just go ahead and apply for an exemption. you know, it seems to me that huawei is just a negotiating chip chucked into the china trade talks. susan: looks that way, doesn't it? especially being on the blacklist, maybe not so much, because even wilbur ross, commerce secretary yesterday basically says we are giving out licenses for those that sell and supply to huawei. so this could have been a negotiating chip in those conversations between trump and xi jinping at the g20 in osaka, japan and now we have steve mnuchin, treasury secretary, not exactly under his purview, by the way, but he says those companies that work with huawei, you should apply for those licenses because essentially, you will get those licenses to sell to them, right? stuart: it's like a softening in the whole situation. susan: we have heard before their intention was not to bring huawei to its knees. same thing with zte. there were threats made. they do need the supplies of chips from u.s. companies and also google works with huawei as well. as long as you can sell to them,
they can't work in the 5g buildup in the u.s. because of spying concerns but if u.s. companies are still making money off huawei, why not? stuart: i see it as a plus for the china trade talks. that's where i'm coming from. all right. the opening bell is bottom right-hand corner of the screen. five minutes to go. we will open this market and we will be going up again. series of record highs across the board yesterday. up again, five minutes from now. we'll be right back. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown
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stuart: the french have approved a new tax. 3% on money made by big tech, our big tech in france. susan: that's right. stuart: so we, america, we are now investigating this new tax. susan: well, yeah. france is doing this alone right now because they couldn't get the european union agreement on this, and this is a big digital tax. this french measure retroactive, by the way, starting in 2019 -- stuart: retroactive? susan: 3% tax on revenue the companies reap in france from targeted advertising or running a digital marketplace. we do have other countries as well, the uk also looking at something very similar unless they can get something around the globe, like a global digital tax. of course the u.s. is firing back, saying we are going to
investigate this, but this comes after a $5 billion fine on google. is it a money grab? stuart: it's a money grab. if you can't innovate yourself, tax the other people who do. susan: retroactive. wow. stuart: 3% of revenue? money grab is defined by the french tax. okay. the opening bell has rung. it is now open for trading and we are up 100 points right out of the box. look at that. up 106 as we speak. 105. we'll take it. one third of 1% to the upside. the dow is getting real close to 27,000. how about the s&p? hit a new all-time high yesterday, above 3,000. that's where it is now. six points higher. how about the nasdaq? went way above 8200 yesterday. it's still there. 14 points up in the very early going. where's the ten-year treasury yield? 2.07% as we speak. that means treasury bond prices are going down, actually,
doesn't it? down. price of gold is up, though. i was about to say everything's up this morning. gold is up. show me oil, because i think oil is up as well. susan: yes. stuart: stocks are up. i just got treasury bonds wrong. that's all. michelle mckinnon, david barnson, susan li here to straighten everything out for us. i call this a goldilocks market. i want you to tell us what factor may push it up from here. >> i agree with you that it is a goldilocks market but a lot of people don't think that way. a lot of people have such low expectation for earnings, for growth, that i think surprises in the positive are going to happen and push this market higher. stuart: because the earnings report start flowing next week. >> again, the bar is pretty low. stuart: that could be the factor pushes you up some more. susan: as you mentioned, they set the bar again very low, kind of what they usually do heading into earnings season.
77% of companies have guided and warned we aren't going to do as well as we previously stated. bar's low, easy to jump over. >> exactly. stuart: that's a good one. i called it a goldilocks market. i don't know if you agree with that or not. can you point to a factor which might push us even higher? >> there is absolutely one factor that might push us higher. that is earnings surprises, exactly as michelle had said. i think if you look back at april, earnings expectations for the first quarter were so low and then the companies outperformed but the key is they can't only outperform on bottom line. they have to outperform top line, too. you got to see revenue growth because that shows you that it's organic, it's not just margins expanding and cost cutting, that there's real sustainable growth going on. i think they're going to get it. stuart: earnings surprises, we are watching for that. that could push us higher. okay. now let's talk interest rates. just for a start, the ten-year treasury yield 2.07%. i believe, this is your area, the market is pricing in or anticipating three rate cuts this year. will we get them?
>> sort of. the market is 100% pricing in one cut in july, about 60% or so think there could be two in july. i believe they're wrong. i hope they're wrong. but the market is over 60% saying it will get that second cut by september. the key is calling for three cuts by december, it's about 30% to 40%. that can't be called an insurance cut by any reasonable definition. they start going three or four cuts, that's the fed telling you we are going into recession, i don't think it's going to happen, i hope it doesn't. remember, the market likes that. they have to wean off of that at some point. we want to be dependent on sustained earnings growth, not fed help. stuart: i'm switching out of stocks for a second to look at bitcoin. it was down big-time yesterday because fed chairman powell, speaking to congress, he was all over facebook's digital currency, the libra. he's not happy with the libra. that took bitcoin down
yesterday. we are at $11,600 this morning. you wouldn't touch it? >> i wouldn't. i absolutely wouldn't. it's very speculative. if you want to invest you have to expect it could go to zero. however, i do secretly love the concept of a cryptocurrency. i think the idea is here to stay, especially for people who are in countries that don't have stable currencies. this is a way for them to have an opportunity to buy them that could be quote unquote, stable. is bitcoin stable, no. but i don't know, i secretly like the idea. susan: it was down 12% to last may. what we heard from jerome powell about libra, we are concerned about it given the privacy issues with facebook they have had over the year, also regulation. but this is kind of facebook's game, right? they want to decentralize currency away from any government, any policy, that might influence money moves. stuart: i wonder if the flack that the libra was getting from chairman powell yesterday is responsible for the slight drop in facebook this morning. probably not, because it's such a slight drop.
susan: but we are back at 200. stuart: $202 a share. hardly a big impact. overall, we are now up 70 points on the dow industrials, 26,931. individual stocks. delta, better profits there. the stock is up, not much, 30 cents. remember, they don't have any 737 max jets in delta's fleet. walmart going to stop gun sales in new mexico, because of a new background check law in that state. walmart still right there at an all-time high, right about $113 a share. at & t going to become the first wireless company to block robocalls. there's good news. do you have to pay extra? susan: well, right now they're saying it's free but a lot of critics that say -- who are critical say it will eventually be a profitable and money-making revenue stream. right now sprint is charging, no one else is, but sprint offers a
caller id service and identifying spam calls. they could be add-ons in the future. stuart: i want it free. >> i want it free, too. come on. susan: i think you will get it free if you sign up for the higher end packages. stuart: by the way, david, the dividend guy, on your advice i bought some at & t because it's paying a 6% dividend yield. am i safe? >> you are not safe. remember, we talked about this a couple shows back. we became verizon folks, not at & t folks over a year ago when they closed at & t deal. at & t has more debt than any company in history right now. $250 billion. more than most countries have, by the way. stuart: i'm not doing too badly. >> you're all right. they want to be able to preserve it. there is still management intent. the problem is if you get into some sustainable downturn, they are so levered, the yield is so high it has to come. verizon's free cash flow coverage, much higher. i have never steered you wrong before.
stuart: moving swiftly along. the "wall street journal" reports that pg & e, the california utility, they knew for years about the danger of its power lines, they didn't do anything about it. lawyers are going to have a field day with this one. >> i wouldn't touch it. the stock has just gotten crushed here. it's too risky. no way. stuart: the dollar value of any award against that company -- >> or the judges that get assigned to the whole adjudication of it. the thing with creditors it's going to take years to unwind. i agree i wouldn't touch the stock, wouldn't touch the bonds, stay away from it. however, the idea that they are saying that company purposely knew that there was going to be a fire and didn't do anything about it is insane. all that they said is they were behind on some administrative checks. this is still a big disaster. i think they are overstating pg & e's direct liability. stuart: okay. amazon. there is always an amazon story and there's one today. they are going to spend $700
million to retrain about a third of their u.s. work force. now, the stock's gone to $2,022. tell me about this. susan: basically, just ahead of prime day as well, where we are expecting a worker strike at a minnesota facility for them. amazon says they will retrain about a third of their work force. that's about 100,000 workers by the year 2025. stuart: $700 million. susan: it breaks down to roughly $7,000 per worker. they are saying look, we are trying to help those that -- whose jobs might be lost because of automation when it comes to robots and facilities and deliveries, that last mile delivery. we are going to try to help those 300,000 they already employ, 100,000 will get extra training. stuart: the story is surely prime days next week, two days, and the stock is back over $2,000 a share. what more is there to this story? >> spending $700 million on
retraining and they didn't have to ask for a government subsidy to do it. go figure. stuart: you wouldn't touch it with a ten-foot pole. >> i would not. i'm a big customer. stuart: i take that capital gain, believe me. oh, look at this. we are up 113 points as we speak. this is a rally. mcdonald's is at $212 a share. what a stock performer that's been. they are asking franchisees, no, the franchisees are asking the company to give them a sandwich that competes with chick-fil-a. >> i think it's important. chick-fil-a is a phenomenal institution. you go in there, you have great customer service, it's super efficient. their chicken sandwich is fantastic. i would go to chick-fil-a. susan: the numbers say, chick-fil-a is a very successful franchise, third largest in the nation. by the way, they are closed on sunday as well. can you imagine the foot traffic that goes through six out of seven days? meantime, look at the restaurant
size. chick-fil-a only had 1900. compare that to mcdonald's at 14,000 restaurants across the u.s. which one is highly profitable, higher margins? chick-fil-a. chicken sandwiches. stuart: with a stock chart like that, that's to die for. look at that. susan: that's an internet story, isn't it? >> that stock chart, you could be looking at the stock price or the dividend growth and you wouldn't know the difference. the stock price has grown in direct concert with the dividend. susan: and buy-backs. >> with mcdonald's they were even heavier on dividend growth out of the financial crisis. they now, with the new ceo, have been coupling it with stock buy-backs, too. >> dividend's up 400% in the last ten years. stuart: i asked you for dividend paying stocks. >> we talked about it. the good news is it's on tape. stuart: you'll be back. okay. david and michelle, thank you very much. good stuff. mcdonald's, all-time high, i believe that's accurate. okay. we're up 100 points. how about that. 103, to be precise. just over one-third of 1%. 26,965.
i got a number for you. $100 billion. that's how much the health and human services department spends every month. most of that goes to medicaid and medicare. hhs secretary alex azar will join us in our 11:00 hour. what happens if we go to medicare for all? $100 billion a month? then some. major security breach at buckingham palace, home of the queen in london. an intruder broke in overnight while queen elizabeth was asleep inside. we've got the story. we've got some commentary on it, too. and president trump holding a social media summit at the white house today. but the big tech companies were not invited. what will we actually get out of it? steve hilton on that, next. ♪
stuart: we are still holding on to a 100 point gain. the dow is really close to 27,000. i got to tell you, microsoft has hit yet another all-time high. susan: there you go. stuart: i got a big smile today. $138.32. microsoft. there you have it. there is a social media summit at the white house. big tech very much in the crosshairs. here's the presidential tweet on this. a big subject today at the white house social summit will be the tremendous dishonesty, bias, discrimination and suppression practiced by certain companies. we won't let them get away with it much longer. the fake news media will be there. fake news is not as important or as powerful as social media. they've lost tremendous credibility since their day november 16 when i came down the escalator with the person who was to become your first lady. there's the trump tweet.
jackie deangelis in sun valley, idaho for the media conference. jackie, any buzz there about this media summit at the white house today? jackie: good morning, stuart. there's a lot of buzz about it here. that's because all the tech and social media ceos are here in sun valley, idaho. so they are certainly not going to be part of the conversation with the president. but remember back in april when jack dorsey did meet with president trump in the oval office. that's when this conversation came to the forefront and obviously, the folks here are saying you know, there's such a distinction between tech and media, but is there that distinction. these companies are in flux. they're in the process of growing. they're having these growing pains, trying to figure out exactly who they are. we talked to john malone. he said they're disruptors and that's what the president is sensing here. maybe some regulation will help. we'll have to see. stuart: never goes anywhere, really, does it? thanks very much indeed. we will get more from you later about that media summit at sun valley. thanks. i want to bring in steve
hilton. he is the host of the next revolution on the fox news channel, frequent guest on the program. steve, i don't think we're going to get much out of this social media white house summit today other than maybe having a go at the social media companies for conservatives being censored. i think that's all we're going to get. what do you say? >> yeah, that seems to be the focus of what the white house intends and it's a good point. look, i just had a look on social media about the discussion around the social media summit. it kind of makes the president's point. it's full of attacks on him and the people going and saying the whole thing is a kind of alt-right circus and so on. i think the real point here is that if we want to address the very real questions around potential bias and censorship and so on, the answer i don't think is prescriptive regulation of how these companies behave. it's a point i made to you before, stuart. i think it's all about the fact the big dominant companies like
facebook and twitter, where a lot of this conversation goes on, they're too dominant. they're too big. if you had a much more competitive market in these industries, it wouldn't matter so much. it would be like the regular media landscape. you've got fox, msnbc, a whole draiveng of opti different range of options. you don't have that in social media. stuart: as steve was speaking, the dow just hit 27,000. that's a new all-time high. right there, 27,000 on the dow jones industrial average this thursday morning. steve, i just want to segue to something else here. as you know, an intruder broke into buckingham palace while the queen was sleeping, just feet away, last night. number one, how does this happen and number two, can you imagine that happening at the white house? >> it's absolutely unbelievable. and the reason it's so shocking is that it's happened before. i remember when i was growing up in the uk it was one of the
biggest stories of our time that an intruder broke into the palace, entered the queen's bedroom. heads rolled after that because it was such a shocking breach. now in the age where you have cameras and heat sensors and all this technology that is supposedly making things even more secure, it happened again. i do think there needs to be some accountability from the people that are there to protect the queen. it's just a completely utterly unbelievable story. stuart: i was very shocked when i saw that. thanks very much, steve hilton. see you again real soon. okay. check the dow industrials. look at that. very close to the 27,000 mark. we crossed it briefly just a couple of minutes ago. this is a solid rally again for the dow, s&p and nasdaq. some of the nation's biggest tech companies, facebook, uber, google, they made a major investment in new york city. didn't hear about that, did you. they have hired new employees. they are taking over office space. why would they come to new york
when it's so expensive here? and when amazon was kicked out? that story is next. don't miss your golden opportunity to experience the luxury you desire on a full line of utility vehicles. at the lexus golden opportunity sales event. lease the 2019 rx 350 for $389 a month, for 36 months, and we'll make your first month's payment. experience amazing.
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moments ago. now this. big tech names, you know these names, google, facebook, uber amongst others, they're expanding, looking for office space in new york city. how about that. wendy maitland is here, a new york commercial real estate broker. she knows what's going on in this city. wendy, welcome to the show. >> thank you, stuart. stuart: why are they coming here? amazon was kind of kicked out. why are they coming? >> yes. well, it's the greatest city in the world, as you know, and it's always the beacon of change, and tech is the future of the world. stuart: but are they being given incentives to come? amazon was given incentives. >> it was given incentives, but as we all know, it didn't pan out. it's not about incentives. stuart: did they get incentives? >> there are some incentives but it's not just government incentives. it's developers who have built a dream like if you build it, they will come. they have built it and they want
to make sure that that dream becomes a reality. in places like hudson yards and even hudson square, and now things like the new farley building that is the old postal center, which is being completely redone of a quality that we haven't seen before in new york. stuart: you are talking about serious office space, and a large number of employees. >> that's right. stuart: very well-paid employees. >> very well-paid employees. stuart: how are they going to feel about coming to new york city, where there is a large extra tax to be paid on top of your state taxes and your federal taxes? >> that's a good question. why do you live in new york city? stuart: i don't live in new york city. i moved out of it because of the taxes. >> well, you are a minority but a smart minority. these are young people. this is the cultural center. it's always been the center of finance, of fashion, of art, of food, and so i think those factors really make up for the
undesirability of the tax state. it's a very desirable city to live in for young people. stuart: i'm sold. i love the place. i am sold apart from the taxes. but these tech companies have come in very quietly. there's not a big fuss being made. there's no press conference, oh, they're coming here. none of that at all. that was deliberate, wasn't it? >> yes, it was. stuart: because you don't want -- not you, but they didn't want to provoke a response from aoc or anybody else. >> that's right. that's right. and also, from each other. it's a competitive industry. so when google is making a deal, for instance, in hudson square for over a $1 billion investment, they want to lock that down before amazon or facebook finds out about that move. stuart: so that's part of it, too. i didn't realize that. >> absolutely. stuart: competitive business. >> absolutely. stuart: you see any sign that it's slowing down? >> not at all. quite the opposite, it's revving up. not only do the big names make an impact. what you're going to see making an impact are the startups.
there are 19 different startups taking significant space in what we call silicon alley, silicon valley to silicon alley. that's the flatiron district, the old garment district which was delap daidated on the whole being reimagined. they have to invest in quality which is new in the recent history of new york. stuart: wendy, this is fascinating. thanks for bringing this story. we appreciate it very much. >> thank you for having me. my pleasure. stuart: sure thing. thank you. house speaker pelosi, she's getting ready right now to hold her weekly news conference. is she going to address the feud between her and aoc and the other radicals? i think she will. we'll cover it, of course. beto o'rourke trying to appeal to the minority vote by claiming our country was founded on white supremacy. i don't think a racial guilt trip is a good campaign strategy. my take on that is next.
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stuart: 10:00 eastern time. wer we go with mortgage rates. okay, the number. susan: 3.75%. so that is unchanged from last week. we do have freddie mac saying hey, rates have moderated yes. still near three-year low. good news for buyers looking to purchase a home before school starts. stuart: 3.75% on 30 year fixed-rate loan. susan: you imagine how much lower it will go when they cut interest rates by end of this month by quarter point? i think they will tick down for housing. that is booed for the economy. stuart: i'm holding down on refi until we get 3.25. susan: it might be that time. 15 year -- stuart: i'm talking about 30 year fixed. that goes down to 3.25 i will refi. let's see if any impact on the market. right now the dow jones
industrial average, not gone well above 27,000. is above 27,003. we're up 143 point that is a half percentage point. it's a ral any. now this. i guess you could say it is desperation. beto o'rourke desperate for support appeals for the minority vote. he wallows in guilt. watch this. >> this country was founded on white supremacy, and every single institution, structure, that we have in our country still reflects the legacy of slavery and segregation and jim crow, suppression, even in our democracy. stuart: i have got to tell you, i don't think that a racial guilt trip is a good campaign strategy. beto is not doing well anyway. his decline started when demanded removal of all border walls or barriers. this self-flagellation over white supremacy is not likely to start his campaign's recovery.
could it be that beto is estimatetic of bursting leftist bubble? he may be the canary in the coal mine. an early signal that the is public is not buying wild policies so many candidates are pushing. for example, open borders. i find it very hard to believe allowing everybody in gets much support. but that is the left's position. let them all in. no deportations once they're here. am i wrong on this? when push comes to shove. will america say yes to an open border? i really don't think so. how about this? in the debates, 10 candidates raised their hands, promised to pay all the medical expenses and health care costs of all illegals. how that is going down with native-born americans who don't get it free? while we're on the subject of health care, i simply can't believe middle america want private health insurance taken away, replaced with government
care. again, am i wrong on this? it is surely time for a reality check. where is the brave democrat who will stand up and say the left is out of line? that these policies just will not fly on the national stage. haven't heard that voice yet. but i believe it is coming. when it does, the leftist bubble will burst. last point, the next debates take place in detroit at the end of this month. cnn hosts. they have changed the rules. there will be no show of hands or one word down the line questions. no they won't. clearly they're worried. trump-hating cnn down want candidates locked into far left positions like open boarders, medical benefit for illegals or white supremacy guilt trips. the second hour of "varney & company," just getting started. ♪
just trying to get reaction to my little rant there from our guest. his name is rob smith, turning point. you sa spokesperson, all together good guy. welcome to the show. >> thanks for having me. stuart: your first appearance. >> first appearance. stuart: are you ready? >> i'm ready i think. i have got a lot of energy. stuart: what do you think about what i said about beto, white supremacy and the guilt trip? >> that is spot on. when i see for me from those comments, anything you hear from beto o'rourke at this point, it is a last gasp of campaign. he was supposed to be the white obama. lead the democrats into the future. polling numbers are going down. what he is doing he is locking himself into the far leftist stuff, pushing socialist, the far left. what struck me about the comments, making these comments about america being so horrible, america being white supremacist, not to black americans, to immigrants and refugees. this underscores for me that
democrats are basically selling out black americans for illegal immigrants, right? open borders, free health care for illegal immigrants, free college, all of these other things. to me i think that black americans are catching on. i'm certainly caught on. you know i am a new conservative and illegal immigration issue is my number one reason i came over to the right from being a democrat. stuart: really? >> absolutely. stuart: you were on the left. >> absolutely. stuart: you are opposed to this flood of illegals. >> absolutely. stuart: that turned you into a conservative? >> there were many things that did but that is the number one thing that turned me into conservative. what i see on the left, beto, everybody is apologizing all the time, especially white men. beto is apologizing being white. joe biden, they're getting joe biden to apologize. so where they are at right now, being pushed very far left. when you look billionaire b.e.t. founder bob johnson said yesterday, he voted for hillary
clinton in 2016. but even he thinks that the democrats are moving too far from the left. i believe most black americans agree but they are not getting you know the press, out there really saying it. they are constrained what i call the cult of intersection alty. stuart: fascinating. intersection alty. >> a consult. stuart: mayor pete, he announced a plan for investing into african-american communities. let me quote exactly what he said. here we go. we have lived in the shadow of systemic racism for too long. we've seen a rise in white nationalism. economic gap between black and white workers grows instead of shrinks. worse health out comes for black americans. he wants the black vote. but this is how he thinks he is going to get it. >> you know what his words say to me, somebody who number un, black people in mayor pete's town don't even like him. they have done literally stories
that said nothing has changed for us here. as a matter of fact things have gotten worse. there was a cringe-worthy exchange between him and black voters in his hometown, i believe south bend, indiana, in his own town because they are having racial issues. there was a police officer involved shooting, something that happened. there is cringe-worthy moment where these people are just, to use a slang term reading him, basically yelling at him, you're not doing anything for us. also mayor pete is polling zero percent among african-americans. this to me is somebody who doesn't seem like he has a lot of connection to, black americans in general especially not the ones in his hometown. also he is being fed these far left talking point because somebody told him that is the only way to reach black america. stuart: did you enjoy your first appearance on "varney" an company? >> i did, absolutely. stuart: you want to come back? zoo absolutely. come back anytime you will have me. stuart: if you're not careful, you're all right. thank you so much.
president trump on the twitter machine. here is the latest. mexico is doing great at the border but china is letting us down in that they have not been buying agricultural products from our great farmers they said they would. hopefully they will start soon. i don't know whether that took the market down a little bit. maybe it did. sort of negative comment on china trade. we were up above 27,000. and now we're not. maybe that tweet had some very limited -- susan: because the target is 2 to 300 billion a year for china to buy u.s. goods. stuart: that's a lot. okay, netflix losing the hit show "friends." that will be in 2020 it loses it. it is going to lose "the office" a little later on. netflix stock this morning up a couple bucks at 383. ray wong with us, constellation research founder. ray, you cover big name technology stocks for us so i want to go through a couple of them one by one. i want to start with netflix.
would you buy it? would you buy it at 380? is it going to go higher from here? >> yeah, definitely, we see it will probably head to 400. the new subscriber numbers will actually come in. we think they will get 12 to 13% more expansion in terms of subscribers but there is a content war and that is the risk you're talking about here, comcast, at&t, hbo, everybody is battling for content. they are taking content back to fill in their streaming services. stuart: that leaves netflix with it is original content, originally produced content. they do it very well. are this running away with the payment of their own production? >> they are. that is part of it. that is part of the reason they have been investing in their own production over the last three to five years. people say that is crazy, you're spending so much for content. it is a battle for original content, really extreme content, focusing on local area. india that is an area where
they're kicking butt. they are highly profitable. they are beating local entities like showstar as well. stuart: i will move on to apple. i believe it is above $200 a share. it is now 203 they are getting rid of the macbook and macbook pro. there is a big laptop shakeup there. this is days after jony ive announced he was leaving. seems like they're going towards services to tangible products. would you buy apple at 203? is it going higher? >> i can't we actually thinked so. we revised estimates. 190 at end of q4 and now 220. it is not just services. reduction of the macbook is simplification of the line. people walk in, get the 12-inch, the touch, not do that? do i get a ipad? keyboard with ipad? they're making it streamlined norfolks to purchase the right
device that supply chain savings for apple. september when whole bunch of apple services light up, when we get apple tv plus, what happens with the streaming service, what happens with the credit card? all eyes to see how they do. there is a lot of upside, they are shifting a lot of revenue to the services aspect. stuart: apple goes to 220 according to ray wong. tell me about amazon. it is above $2,000 a share, 230. prime days next week of the does it go up beyond 2030? >> yeah. we actually see that as well. we revised that. we shot for 2,000 for q4. we revised that to 2050. part of the reason they're spinning off so much free cash flow, 28 billion, going back into reinvestment from supply chain logistics so on prime day they did 3.5 billion last year. we think they will do at least more than that, 4.2. i don't think it will be instar pods but a lot of other items.
stuart: he likes them all. likes netflix, likes apple, likes amazon. ray wong. thanks for joining us. see you soon. >> thank you, stuart. stuart: sure thing. speaker pelosi will meet with trade representative lighthizer today. they will use the usmca which is up against a deadline in congress. can anything get done with nancy pelosi trading barbs with fellow demonstrates. that is a good question to ask and we're asking it. bitcoin down as fed chair powell says he has serious concerns about facebook's digital currency. the e-pricks, the eprix, i red that wrongly i say. grammatically correct. e-prix, grand prix, electric cars coming to new york this weekend. car race with electrics. we have the one of the race car
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stuart: just a few minutes ago we were above 27,000 on the dow's industrials. then we got a presidential tweet that the president said the chinese had been slowed about buying our agricultural products. he was not happy about that. major loophole on planes maybe putting passengers and crews on work. hillary vaughn obtained internal tsa memo revealing a security issue. we have the story coming up in a few minutes. stay tuned for that one. west virginia has highest opioid overdose rate in the
nation. i'm a little confused. here we go. susan: there's a lot going on today. stuart: speaker pelosi will meet with trade representative lighthizer to discuss the new trade deal, the usmca. she is involved with a big fight with aoc and other young radicals, the question can we get this done, usmca? we need it done, can we get it done? joining us -- susan: congressman here. stuart: warren davidson. sorry warren. little confused, i'm not sure what i got in front of me. now i know. warren davidson, that is you. there is a huge fight in the house between aoc and other young radicals, speaker pelosi. i think that could interfere with usmca. what do you say? >> you know, i think a lot of people are concerned about that. look at congress. usmca is a proxy. can congress unite to get something done. usmca is really not a partisan
deal. it's a deal that is an improvement upon nafta. as promised by the president. that is where the rub begins. well if the president might take credit for this, people do not want to give him a win. stuart: look, congressman, i'm sure as a republican you're looking on with glee at this awful split in the house democrats but it's quite possible that split will prevent a lot of stuff getting done. the country will suffer. we need a spending deal. we need a debt ceiling deal. we need usmca. a whole bunch of things. the timetable is very restricted this really is going to interrupt things, isn't it? >> it absolutely is, stuart. there is no glee. it is disappointing. when you look across the side of the capitol, on the senate, for example, they passed the defense authorization 86-8. not a partisan deal. historically the defense authorization has been for 58 straight years, non-partisan in the house. but the bill we're voting on
starting out of house is another one of these totally partisan efforts. part of it is speaker pelosi has to shore up the far-left base, way left of the historic democratic party. stuart: it's a problem i think. talk to me about cryptocurrencies please. bitcoin took a big hit after fed chair powell, didn't like libra, the digital currency from facebook. i don't think you're a big fan of digital currencies either, are you? >> no, absolutely. i've been working two years in this space. i'm thankful facebook is bringing a lot of issues in the digital asset space to light. so, you know, bitcoin, for example is the best performing asset since its launch. if you looked at it, somebody done average investment monthly is outperformed everything else in the market. who knows where libra will do. but you have a lot of difficult concerns there. libra is launched by facebook. facebook has lots of legislative concerns right now. privacy, they're filtering
content, for example. people don't want their content filtered. they certainly don't want their financial transactions filtered. hearings scheduled in the senate and house will be a really big deal, very important for the entire space. stuart: congressman, i'm interrupting for a second, on the left happened side of the screen is amazon's stock. it reached 2030. at that price amazon is worth a trillion dollars. i can hear you, congressman. how about that a trillion dollars for amazon, got any comment on that one? >> it is kind of unbelievable how amazon performed over time and when you look at some back end performance of that, amazon web service, their cloud dominates the market. so when you look at amazon, not a part everyone thinks about, front-facing retail web business, online sales, everyone thinks of, many people have almost everyone in america seems has bought something via amazon today. and growth rate of that is off the charts. but on the back end, growth of
the data service is more exponential i believe. stuart: really extraordinary. trillion dollar company. another one, and this company is amazon. congressman, thanks for joining us, we appreciate it. >> thank you. stuart: the tsa will assess its security screening of food catering trucks after our investigation discovered some security risks. we've got that story for you coming up. west virginia governor jim justice, what does he think of coal miners in his state inviting democrats to tour the coal mines? he is a coal guy himself. he is on the show this hour. coming up. ♪
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stuart: when president trump tweeted moments ago that the chinese were slow to buy a lot of our agricultural products, that could be a trade problem. that took the market down a little bit. we were above 27,000. now we're not. 26,963, still up 103 points. major security loophole at airport could be putting passengers at risk. hillary vaughn obtained an internal tsa memo revealing the security problem. so, hillary, tell us what the problem is. reporter: we're calling it the food truck loophole, stuart and here is why. a lot of people don't know that catering companies that serve aircraft carriers at airports are inspected by private contractors that the airlines pay and hire to inspect the catering carts before they end up airborne but we conducted an
investigation and found that the tsa does not do random inspections of these carts when they enter into the secure airport area. which means these private contractors are one line of defense to prevent any threat from being smuggled in the catering carts from making its way on to the plane. here is why that is a problem. our investigation under covered a trove of internal tsa audits show these private contractors failed to follow protocol a lot of the time. in 2018 they did an audit of catering which serves airplanes outside of jfk airport. they found 95% of the security contractors failed to correctly screen the catering carts before putting them on the truck, which then made its way to the plane. they also did an audit of 212 catering sites around the country that serve airlines. 150 of those locations around the country failed to follow protocols. they said they need to take a second look at screening process
for catering. this follows the extensive reporting on this the tsa says this memo is not in direct response to our reporting. this is in response to a special assessment happened this spring they discovered there was a big problem not just with food, but other items making it on to the plane, being completely unchecked, unscreened. they said there are large amounts of ice, magazines, blankets making their way to the cabin of the aircraft without being screened or searched. stuart? stuart: got it. hillary vaughn, exhaustive study, food stuff. thanks very much, hillary. first lady melania trump is visiting west virginia to address the open crowd epidemic. we'll talk to the governor of west virginia, jim justice, next. ♪ fact is, every insurance company hopes you drive safely.
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susan: that will make you happy today. stuart: more than a half dozen beatles song with day tripper again? susan: i only know three. they know six. stuart: here on out, i will start picking the songs, okay? so stay tuned. tomorrow 10:30, real beatles. susan: okay. stuart: now this, not we, the queen, big security breach at buckingham palace overnight. i believe an intruder got to within feet of the sleeping queen. susan: my goodness. two. a.m. this morning a intruder was loose in buckingham palace. it took four minutes for security to respond. "the sun" revealed a 22-year-old man. he scaled the fence of the building to get inside. he was in fact doors away from where the queen was sleeping.
how is that possible in 2019? cctv cameras an heat sensors and hyphenses and walls to get into buckingham palace? don't forget this brings back memories of 37 years ago when michael fagan, famously broke inside of buckingham palace, somehow got inside of the queen's bedroom. had a conversation with her for ten minutes before security actually showed up. stuart: heads rolled then. i suspect there could be some head rolling now because that is a huge security breach. can you imagine someone got within feet of sleeping president of united states in the white house? whoa. susan: how is that possible? stuart: how is that possible? susan: with technology in this era of technology. stuart: makes you think, don't it? the big board, the dow jones average, shows a gain of almost exactly 100 points. i have to tell you, a few minutes ago the president tweeted about china not buying as much agricultural produce as he wanted. and that took the market down a little bit. we were above 27,000.
now we're 26,900. coal miners in west virginia invited democrat presidential candidates to tour a local coal mine. look who is here? the governor of west virginia himself, mr. jim justice. governor, have they taken up the offer? are the candidates going to go to the coal mines of west virginia? >> well i surely hope they do. we applaud you know, cecil roberts. he has done a great job, looking after his miners for years and years. we joined with him, to promote in our coal industry in every way to bring people down, you know, from the democratic party that maybe are pushing this green deal, we believe coal surely has a place at the table. it gives us baseline generation. absolutely we want them to come. stuart: if they come, if any come, they will use it, i hasten to say a propaganda% but they will really lay it on thick how
terrible coal is, how we need a green environment. are you ready for that? >> well i mean, how could they lay it on any thicker than they already are? for crying out loud, we welcome everybody to west virginia at anytime. stuart: but governor, governor, you and your family, you own nine coal mines. you have an interest in nine coal mines i believe. they're going to come after you say ryou're killing the planet, you're killing my grandchildren. that is exactly what they're going to say. are you ready for it? >> well, i'm absolutely ready for it. if you just think back, you know, over the obama years, and there has even been some criticism towards trump which is so terrible it is unbelievable, what he has done for the coal industry, what he has done for the natural resources are just unbelievable. we really applaud and we thank him in never way. obama closed 600 coal-fired power plant in this country. truly if you just look at you know, have the storms stopped?
you know, is our economy you know slowing or was it slow because of obama? you just mentioned 27,000 on the stock market. it just goes on and on. so these people just don't understand. they don't get it, that every day, we produce coal and it gets cleaner and cleaner. we produce a lot of metallurgical coal in west virginia. we have 8,000 more jobs today than we had two years ago in west virginia. it is unbelievable the goodness that is going on. stuart: you have progress there. can you report progress for us on the opioid problem? west virginia, you have the highest fatal overdose rate in the country. first lady melania was there early this week. can you tell me you got a grip on the problem in west virginia? >> i can't tell you we have the problem solvedded but i can tell you this, huntington is a city of solutions. huntington became the epicenter of a real problem.
there is no question of a problem with opioids and drug situation in west virginia, and all states but huntington could be the pilot project to take this thing almost worldwide. it is amazing what is going on in that city right now. the reductions are phenomenal. stuart: in a nutshell, what have you done in that city? >> well, we've done everything. it is an all in one deal. it takes so much time to be able to embrace it but it is basically just this, you have got to have treatment. you've got to have hope. you've got to have training to where you can have a real job. you have got to have an expunge ment deal in place. it goes back to everybody embracing all in one. i wish so much everybody would come and see what, marshall university, huntington, the entire community has done because it is phenomenal. phenomenal what is going on. stuart: jim justice, governor of
west virginia. of love to hear the progress. >> thank you you guys so much. stuart: how about this one? you hate the robocalls. well, at&t has become the first wireless company to block them. i believe they're actually doing it. you have to choose -- susan: don't have to opt in anymore. it is by default. that was part of the fcc rule change just a meant ago. we saw a record 5.23 billion robocalls in the month of march. stuart: in march alone? susan: in may it came down to 4.7 billion. still, 153 million robocalls each and every day. so the fcc is allowing telcos, telecom companies like at&t, sprint, verizon, the like, you can offer spam blocking services as a default. you don't have to opt into it. there are critics say this provides a new revenue stream for the telecom companies. if you're going to charge me, they say it is free for now, but if you charge me for more,
higher expensive packages, that is also some more profit for them as well. i just want it to end. susan: don't pick up phone calls you don't recognize of the if it is number i don't recognize, i don't pick it up. stuart: it interrupts the whole thing. susan: you mean like broadcasting on air? stuart: happens right here. that is another story. i.c.e. agents, are going to start to arrest illegal immigrants starting sunday. deportations are coming. coming up, illinois congressman adam kinzinger, he served as a national guardsmen at the border. does he support these raids? we'll ask him. we're waiting for speaker pelosi's weekly news conference. why are we waiting for it? because aoc accused her singling her out because of her race and gender. we expect pelosi will be asked about that. we want to hear her answer. ♪
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stuart: dow industrials holding on to 100 point gain. look at facebook. i believe it is still above $200 a share. yes it is 202. fed chair jerome powell digital currency from facebook, called libra, raises concerns about financial privacy and financial stability. it is not hurting the stock. still at 202. amazon will spend a lot of money to retrain its workforce. by the way, look at that stock. it is worth a trillion bucks now! susan: crossing path of one trillion again. amazon basically told us they are going to spend $700 million to retrain 100,000 employees because of pending automation and robots taking over their
job. they're looking to train 100,000 workers by the year 2025. do the math, 700 million, that is $700,000 per worker. stuart: right. susan: don't forget this is in time for prime day of course. stuart: that's it. that's what -- susan: next tuesday. stuart: that is what raised the price of amazon stock to the trillion dollar level. prime minister days next week. susan: why they're announcing there are labor strikes that will take place in a minnesota factory or minnesota facilitation facility, some say they don't have great work conditions. $15 an hour. they want better pay, better work conditions as well. stuart: 700 million to retrain? susan: retrain. 100,000 of 300,000. stuart: a trillion dollar company, ladies and gentlemen. that is the second -- i think microsoft is a trillion and so is now amazon. on your screens, american eagle outfitters. they're getting into the cbd business. what? wait, wait. an apparel company? susan: also a teenage focused
apparel company, american eagle outfitters. they will be teaming up with green global brands. this is cannabis producer from canada. so they are working right now with abercrombie, dsw, designer shoe warehouse, american eagle. they will start selling cannabis based products cbd. we talked about this? stuart: we did. susan: not psychoactive. doesn't get you high but pain relief. what they sell in abercrombie and also american eagle are these cbd-infused lotions, muscle obamas aromatherapy. stuart: you're allowed to use ball many -- balm. stuart: that is a good story. i wonder if cbd is a bubble. susan: 22 billion-dollar industry in five years so. stuart: maybe.
we'll see. serious stuff here. i.c.e. raids targeting illegal immigrants will begin this sunday, got it? illinois congressman adam kinzinger is with us. what do you think of these, the raids start sunday? >> i always think it is interesting it is announced. these things just happen. if you're in the country illegally, given an order of removal, you should leave. reality i want to create an immigration as most americans do, welcoming, generous, fixes the problems. if you come over, you get an order to leave, you don't leave, you're subject to this. stuart: i just wonder what happens with the left in some of these, you know, these cities, these special cities, sanctuary cities or california, sanctuary state, are we going to see confrontations here where the left tries to stop illegals from being taken out? >> actually easily could be,
especially if you announce where it is going to happen. i certainly hope not. federal law always supersedes issues of immigration. we're a state, city, decides they want to be sanctuary city, exempt from federal law, you can't do that. a whole civil war determined preemptiveness of federal government. bottom line, if you get order of conviction you should expect to be removed by i.c.e. the best thing is to leave voluntary. stuart: i'm asking these questions, you are i believe a national guardsman, you served on the border recently, i believe. can you give us, i've not been to the border, not recently, is it just you walk across? is that how it is these days? >> it certainly can be. this was my fourth deployment. the first three times was under president obama. it wasn't controversial. guard has been on the border since president bush. i worked in arizona, we worked areas with a wall. we didn't see crossings with the
wall areas. with no wall there were a ton of them. there are significant number of people muling drugs, part of the cartel operations to traffic humans in there. really the whole reason the cartels are almost better funded than our military and our border protection. every person they bring over get 6 or $10,000 plus any drug costs, stuff like that. they are well funded. it's a big disaster. stuart: as republican in the house, i'm sure you're sitting back with glee watching internal fight amongst the democrats, aoc and the squad versus speaker pelosi. she may well address that in a news conference coming up shortly. will you be watching for that? >> i will. republicans dealt with this a little bit where we were always fighting but we actually agreed on the end goal, what we wanted. we just disagreed how to get there. this is a disagreement between your dad's democrats and a whole new movement of the far left we've never seen before. that will be tough for them to reconcile. stuart: you're having fun. adam kinzinger, thanks very
much. big smile. thanks for joining us, sir. we appreciate it. >> you bet. stuart: formula e, that is the electric street racing series and it returns to the new york city area this weekend. car caps, jaguar, porsche, mercedes they're involved with it. we have one of the drivers on the show. canopy growth, involved big in marijuana, they are heavily involved in cbd products. ashley webster, if that is not him, i wonder, but he will join us in the 11:00 hour with a grower. ♪ i'm really into this car,
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15 cents on that news. this is big news. formula-e racing returns to the new york city e-prix. this is the formula e champion, for heavens sake, greg shied, head of apb putting on the race. you're clearing streets of brooklyn for a car race? >> we are, running on the streets of red hook in brooklyn. agp is the global sponsor. we run in paris, germany, switzerland and mexico. we're proud to be the sponsor with leading in charging. stuart: what kind of speeds, i will ask the driver in the moment, what kind of streets you get up on the streets of brooklyn. >> on straight wais you could get up to 180 miles an hour. on turns you have to be careful
to slow down. all running off batteries with charged with abb fast charging. we were the leader in mobility charging. stuart: you got the commercial in. sebastian, if i were to drive the electric car, the one thing i want is acceleration, that is the big deal, isn't it? >> exactly. we have a lots of acceleration in those cars, especially zero to 60, under three seconds, around three seconds t feels great. stuart: under three seconds, zero to 60? >> basically depends on the asphalt. more grip you have -- stuart: did you start out in gasoline powered cars? >> yes of course. stuart: graduate to electric? which would you prefer, for electrics you're the champion. >> no, daytona beach the abb championship. it's a great platform. we have lots of manufacturers joining. as professional driver it's a great place to be changing. stuart: what about fuel changing? i'm used to ordinary car racing
you refuel. how do you recharge in the in te middle of a race? >> we don't recharge. we used change cars until sees san five. now we race of only one car because battery -- stuart: this is where abb comes in. that is where the primo batteries come in, you can last the entire race? >> exactly. stuart: how long is the race? >> you're seeing advantagement in technology. a lot is commercially available too. you can go high speed, high performance. this is what happens with the consumer, mo and more range. stuart: what is the range of these cars in this race. >> we race 45 minutes plus one lap. down to the team and driver, basically try to extract most out of the bat theory. but the race is something like 100 kilometers. stuart: okay. that is really good stuff. i'm tempted, i will be out of town. i would have been tempted to see this race. i am intrigued by it. thanks so much for joining us for it. good luck on the race. it is sunday?
>> saturday and sunday. stuart: both days. >> season finale on sunday. stuart: thanks for joining us. we appreciate it. >> thank you, stuart. stuart: speaker pelosi is in a big fight with the young radicals in her party. the feud could really hurt our country. that is my belief. my take on that is next. the department of health and human services spends, wait for it, $100 billion every month, most goes to medicare and medicaid, 100 billion a month. imagine the cost if we had "medicare for all"? secretary of health and human services alex azar on that coming up. ♪ from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech.
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really hurt our country. wednesday, a closed door meeting of house democrats. speaker pelosi lays down the law. you got a complaint, you come and talk to me about it, she says. she's had it with aoc, ilhan omar, rashida tlaib and ayanna presley, the squad as they are called. well, the squad immediately responded. aoc called the speaker outright disrespectful for criticizing women of color. there you have it. race and gender, thrown into an already heated debate among democrats. i don't know where this is going. i don't know how you heal a rift like this. but i do know it poses a real threat to good government. we need a spending bill, a debt ceiling agreement, and we need action on the trade deal with canada and mexico, usmca. that's just for starters. speaker pelosi will have a very hard time bringing her caucus together. the two sides are at odds over
just about everything. odds are dysfunctional government will be on full display again, and it will be difficult for speaker pelosi to avoid the blame. the democrats will look bad, divided, fighting among themselves, throwing out race and gender charges, old guard versus new radicals. it's a mess. and it's not going away. i just hope we don't all suffer because the speaker can't control her caucus. the third hour of "varney & company" is about to begin. i was assigned to two of some of the busiest committees and four subcommittees so my hands are full. stuart: aoc there stoking the fire. she says speaker pelosi saddling her with a lot of work to keep her out of the spotlight. liz macdonald joins me for this hour, host of "the evening
edit." your thoughts? liz: well, this is the poisonous -- they are committing political hari-kari, putting themselves on a high speed train to ir relevancy with this split in the party. you know, here's the thing. when you see nancy pelosi now being accused of racism, nancy pelosi is not racist. why would anybody believe anything that these hard left democrats say? when you see this progressive caucus calling the problem solver caucus quote, the child abuse caucus, when you see aoc's chief of staff saying quote, about nancy pelosi, a legislative mastermind, where are the kitchen table policies, well, where are your kitchen table policies, aoc, because get this, stuart. the democrats are going into 2020 empty-handed. nothing to show for -- to the american people in terms of policies. so mitch mcconnell blocked a lot of it, he said a lot of stuff they're sending his way was off the wall bad, but that's what's
happening right now. remember, pew research said the majority of americans in 2016 thought hillary clinton was too far left. now the american people are looking at what's going on with the democrat party and they're seeing swamp writ large. that's it. stuart: all of the candidates for the presidency, all the democrat candidates, almost all of them are being dragged further and further and further to the left. liz: you know what's happening? those made for tv rnc gop tv commercials with the raise the hand moment. that's tailor-made for 2020. they just walked right into it. they walk into the rotary blades of the helicopter. they're shredding themselves. it's astonishing. you and i have been talking about this for two years, that this is what was going to happen and it's happening now. they did it to themselves. they are immolating themselves. i can't believe what's going on. i'm just astounding. stuart: "the evening edit" liz macdonald fired up about this.
hold on. a lot more to go this hour. check the big board. we are real close to getting back to 27,000. we hit that mark about 45 minutes ago. now we are back, 26,982 is where we are. it's a rally all across the board today. new highs all over the place. we are up 122 as we speak. president trump tweeting about the market. here it is. short, sweet, to the point. dow just hit 27,000 for the first time ever. may i just add to that real fast here? since the election of president trump, november i think it was the 8th of 2016, until yesterday's close, the value of all stocks had gone up $9.9 trillion. okay? just thought we would mention that. that's a rally and a half. bob doll is with us, chief equity strategist at nuveen. let's go back to my editorial, this split in the house, do you think this will get in the way for the markets?
a problem for the market? >> i love your preamble. if this wasn't so serious it would be entertaining. my view is this is very early in the process, this is noise within the democratic party. most americans don't pay a whole lot of attention to it and businesses want to know what's the plan going forward. are my taxes going to stay where they are, what about trade, can i trade freely. so this intraparty squabble will get a lot of attention but i don't think it really affects business a whole lot. of course, it represents also what's going on at the presidential race level. one of our ten predictions this year was the double digit number of democrats would run for president. we had no clue we would get that right by february. now we are in the middle of that. the democrats are going to have to get their act together if they are going to face the president with some strength. november of '20 is a long time
away. stuart: it is. i want more of your predictions, specifically on the dow industrials. as you know, we hit 27,000 on the dow for the first time ever, just about -- just a few minutes ago, actually. how high are we going from here? >> great question. we expected a good year but not this great. it's gone farther and faster than we thought, stuart, both as pe ratios have moved higher, as valuation has moved higher, because of lower interest rates and the potential of a fed cut. the path of least resistance still tends to be the upside. i would be a little cautious. i wouldn't chase it. i would wait for some dips to buy them. path of least resistance still up. we have earnings season right in front of us and one of our predictions is we are going to have concerns about earnings. they have already started coming down for this year and next. we will see how that progresses. stuart: you know, earlier on the program, some people were talking about the possibility of a real nice earnings surprise. because so many of the big
companies have eased down on their expectations. it would be easy to jump over that bar, surprise everybody on the upside. that could give a shot in the arm for the market, right? >> yes, it could, stuart. as you probably know, the normal beat is about 3%. so if analysts are expecting, i think the current number is plus 1%, normal would be plus. we can exceed that sort of thing. most economy is fine. manufacturing and trade is where the issues are but most of the economy's in pretty good shape, like the consumer. stuart: thank you very much for being with us. always appreciate it. thank you. >> all the best. stuart: look at amazon. it's now at $2,025 per share. that puts the company at a value of $1 trillion. by the way, it's planning to spend big bucks, i think $700 million, to retrain about a third of their work force. so liz, come back in again and tell me why they're doing that.
liz: this is really a generous program. because it's cheaper to retrain and retain your workers than to recruit new ones. this is whopingly generous of amazon. it's $7,000 per worker, 100,000 workers are going to be retrained. they can be retrained for a nursing certificate or to be an aircraft mechanic. stuart: really? liz: yeah. it's not just to work on robotics or software inside the company. stuart: oh, that's a big deal. okay. i'm sorry. i thought it was they are going to be spent to retrain them for jobs within amazon on robots and whathave you. liz: they are doing that, but you can also do their education tuition program to be a nurse, to be an aircraft mechanic. it's 95% of the worker tuition amazon is covering. here's the thing. we had bernie sanders attacking amazon. we have the democrats attacking amazon. watch this. biden, joe biden was obama's job training czar. he was going to oversee and refurbish 83 job training
programs. nothing happened. they studied it for five years, spent $600 million to study what was going on with job training. total waste. job training programs out of the government don't work. amazon is showing how to do it. so this is what has to be asked for and the moderators of these debates, what are your plans to help workers, because the democrats' plans don't work. the studies of other governments show it doesn't work. taxpayers pay for that. i'm fired up today. stuart: that was really good. you dug into that. that's really a good thing. look, the company is now worth $1 trillion. i happen to think that today's runup in the stock is because next week, you've got the two prime days which should be absolutely huge. you have a trillion dollar amazon right now. check this out, too. a sight you don't see very often in the windy city. that's a five foot long alligator living in a lagoon in chicago's humboldt park. police are trying to trap it so they can take it to a nearby zoo for observation. they do not know how it got into
the lagoon in the first place or how long it's been there. surely it couldn't survive a chicago winter. liz: i can't imagine anybody having a crocodile and letting it loose. stuart: remember that myth about the subways of new york city? that was an urban myth. a minor league hockey coach has had it with all the anthem protests. the coast of danbury, connecticut's team says respect the anthem or get out. you will see it all. department of health and human services spending an average of $100 billion every month, the vast majority of that money going to cover medicare and medicaid. imagine how much we would be shelling out if the democrats got their way with medicare for all. secretary alex azar is next. ♪ [ dogs barking ]
stuart: 11:13 eastern time. this is the high of the day. not what you're seeing on your screen. certainly not, no. the dow industrials up 160 points, 27,019. that's where we are now. that's a big rally, isn't it? liz: it is. look at that. stuart: now let's get to the alexa, okay? alexa users in britain will soon be able to get health care advice straight from the national health service via alexa. all you've got to do is ask alexa how do i treat a cold or alexa, what are the symptoms of the flu? you will get an answer from the nhs website. no word yet on the rollout for that in britain. amazon is a trillion dollar company right there. the department of health and human services spends an average of $100 billion a month, 86% of that goes to medicare and medicaid. what a number. alex azar is with us, health and human services secretary. mr. secretary, that number,
hundred billion a month, is so big, i can't imagine how medicare for all would be in any way viable. what do you say? >> well, even by their estimates, the medicare for all government takeover of health care would cost $32 trillion over the next ten years. so let's see, that works out to about another, what, $267 billion per month at my department. we would go from $100 billion to $367 total. stuart: that's a nonstarter. am i right in saying medicare itself is rapidly running out of money? >> it is. medicare will run out of money and that's why rather than looking at ways to hurt the rest of our private health care system or undermine medicare, we should be focused as the president is on how do we shore up medicare. how do we protect medicare. how do we improve medicare for our seniors rather than undermining it. stuart: mr. secretary, i tend to think of president trump as the health care president, actually.
he signs executive orders on price transparency. he tries to get the drug companies to put the price of their product in tv commercials. yesterday he signed an executive order, another one, benefiting people with kidney disease. let me roll tape on that one, the kidney bite, please. roll it. >> for these patients, their loved ones and for the impacted, all those impacted by kidney disease, i'm here to say we are fighting by your side and we are determined to get you the best treatment anywhere in the world, and we've made a lot of progress. we're with you every step of the way. stuart: mr. secretary, lots of initiatives there, but why are so many of these initiatives, so much of this effort, blocked by the courts, and what can you do about it? >> oh, you know, the courts, the courts will get involved in things and try to stop our initiatives. we're pushing the envelope, we're challengeing the status quo, and the courts are part of the status quo, also. they are defenders of that system. we are going to keep fighting
for the american people. look what the president did just yesterday with the kidney care initiative. you get what you pay for. in economics, when will we learn that? if you pay for people to be in dialysis in centers, you will get more of that and you will get fewer transplants, you will get less home dialysis. we are going to change how we pay for kidney care and we are going to get people who have kidney disease diagnosed faster, treated faster, to stop or delay their disease progression. if they end up on dialysis, we are going to switch so that most people have home dialysis and if they are eligible for a transplant, we will double the number of transplants in this country. stuart: okay. last question, real fast. whenever you appear on the program, i ask you for an update on how you are getting drug, prescription drug prices down. give me the latest on the update, please. >> you bet. as you know, drug prices, the common measure of inflation of drug prices is down for the first time in 46 years. we are working very closely on a
bipartisan basis with the house and senate on possible drug pricing legislation, and the president remains committed to use all levers that we have in our administrative authority to bring change to the system. we're going to come up with a system to allow importation of drugs that's safe and effective. the president's made it clear we will end foreign free-riding. it is time that the american senior and american patient stops overpaying for drugs, to prop up and subsidize the socialist health care systems of europe. we are footing the bill for them. we are supporting their socialist systems. stuart: i just love to hear that. the socialist systems in europe. i'm a refugee from that, mr. secretary. thanks for having me. alex azar, always a pleasure. thanks for being with us. appreciate it. real fast to the market, because we've got another new high. look at this. now we're up 186, 185 points. 27,045. that is a rally.
you know, we love a good success story on this program. i'm not sure b-a-e-z, frank baez immigrated here from the dominican republic. couldn't speak english. landed a job as a janitor at nyu medical center. fast forward 12 years, he graduated from nyu with a degree in nursing. frank is on the show to tell us his story. it's a good story. we are going to go to canada live. ashley webster is taking a tour of canopy growth, they are trying to cash in on the cbd craze. an inside look at their operations after this. ♪ hi i'm joan lunden.
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i'd rather not. stuart: as we speak, speaker pelosi is holding her weekly news conference and she has just started to talk about her feud with the young radicals. listen to this. >> i said what i'm going to say in the caucus. that's where this is appropriate and i said what i'm going to say in the caucus. they took offense because i
address addressed, requested my members, an offensive tweet that came out of one of the members' offices that referenced our blue dogs and new dems essentially as segregationists. our members took offense at that. i addressed that. how they are interpreting and carrying it to another place is up to them. but i'm not going to be discussing it any further. yes, ma'am. reporter: you talk a lot about civility in the caucus. this is the message you preached yesterday. but many of those freshmen members who have taken offense to your comments have found it demoralizing. >> i said what i'm going to say, with all due respect. maybe you didn't hear what i said. i said what m going to say on the subject. what i said in the caucus yesterday got an overwhelming response from my members, because they know what the facts are and what we are responding to.
we respect the value of every member of our caucus, the diversity of it all is a wonderful thing. diversity is our strength. unity is our power. and we have a big fight and we're in the arena, and that's all i'm going to say on the subject. stuart: okay. speaker pelosi there did not really want to go any further along the lines of this fight with aoc and the young radicals as they are called. she tried to put a damper on it there, closing with the words unity is power. well, they don't have unity. liz: that's just rhetoric because nobody believes the democrat party has any unity right now. you know, nancy pelosi herself has used poisonous rhetoric just recently, saying that the census question is white supremacy, racist, even though the same question was asked out of the obama and clinton census. we ask about gender and race on the census. but let me back up.
she brought up the blue dog democrats. the blue dog democrats are incensed. they are the ones that got nancy pelosi the gavel, the house majority. so to go after and cut your feet off is the wrong way to go as we are going into 2020. again and again, we have to say they are going into 2020 policy empty-handed. stuart: you have to say that the feud is definitely not over. you can't put a lid on it simply by saying i'm not taking any more questions on this. it's out there. liz: that's right. you know what, the squad of the four that nancy pelosi, the hard left meaning aoc and the three others, will go to twitter. they will do radio interviews and talk to people. that's what's happening. stuart: speaker pelosi just said that, no more questions on this, i've said all i've got to say. now the ball is in the court of aoc and the young radicals. as you say, what are they going to say, what are they going to tweet out? i don't think this feud is over by any means. liz: it's not. if they had common sense they would start thinking what do
americans want out of policy, because even cnn polls show the american people do not want their hard left policies. they don't. stuart: meanwhile, on wall street, look at this. you are going to like this. 27,049. that's where we are. we are up 189 points. that, ladies and gentlemen, is a rally. now, check canopy growth, the world's largest cannabis grower. now they are taking a big bet on cbd. look who's here. ashley webster. he's at canopy growth headquarters in ontario, canada. wait a minute. wait a minute. what kind of marijuana is that? is that the cbd kind or the thc kind? ashley: it is both, stu. this is like 65 different strains, they have the fully mature plant. what they are doing, they clip off the barbs, take off the
stray leaves and eventually that will go down to a machine. you're right, these will be largely for medical marijuana but those that don't quite make the grade, don't look as good, will go to another site where they will be used to take that cbd, the element that doesn't make you high but can perhaps help your health. let me come around here as these fine people here work away. once it's all clipped and ready to go, they are put in a machine which will break them down even more and as they go along the conveyor belt, i will come around the other side and show you how this works, i asked if there was a varney strain of marijuana, they said no.
but the finished product comes out the other end. the reason i'm wearing all of this garb is because this is a very sterile area. this is the last human contact with the marijuana so very important there is no contamination. as i say, those that don't make it go to cbd extraction. that industry this year alone will be $5 billion and will go to $20 billion within the next five years. but the question is, will they be able to sell it in the u.s. the fda still not sure about the health benefits but canopy says they have their scientists working on this as well. they believe it can help epilepsy, depression, anxiety, it can be an anti-inflammatory. if that is true, it is going to be a huge product and they hope
to reproduce this type of operation south of the border. it's big money, guys. stuart: that's the first time we have had our cameras inside a marijuana processing center. i found that really fascinating. ashley, thanks a lot. i'm sure we will be hearing from you throughout the day on fox business. good stuff. get back to the market. look at this. another new high for the day. now we're up 183, 27,040. 27,050 almost. a gain of two-thirds of 1%. this is across the board, straight up, all across the board. what a day. what a rally. back to my editorial, top of the hour. speaker pelosi versus the far left democrats. come in, madison gesiotto, trump 2020 advisory board member. speaker pelosi just said how unity is our strength, then cut off any more discussion in her press conference, any more discussion of this feud with aoc and the other young radicals.
i don't think she can keep a lid on it. what do you say? >> she says unity is our power but we are seeing absolutely no unity within the democratic party right now. i do understand what nancy pelosi is saying and some of her critique of these young incoming freshman members that have created quite the division within the party, by putting forward quite radical ideas that don't not only benefit the democrat party but don't benefit the american people but at the same time, the rest of the democrats aren't really putting forward great ideas themselves. so we're really seeing these issues exposed that already existed before these democrats came into office this year. stuart: if you are advising the trump 2020 campaign, you must be as happy as a clam. because that kind of division, where you can't get anything done and they are shouting at each other, that's great for republicans, isn't it? >> well, sure, it's great for 2020. it's going to help us continue to -- towards our path to re-election next year but at the same time, this isn't ideal for the people across this country. we really do want to see things
get done bipartisanly. we want to see democrats come to the table and have some type of unity in terms of looking forward to what's best for the future of the american public. that's not what they're doing. their focus right now is on their internal divisions and on the issues they need to solve so it's taking away from what they are there and paid by us, the american people, to do. stuart: a big issue that surfaced with the world cup winning team for america's women's team there has been equal pay for women. not just on the soccer field, but in general. do we need legislation to get equal pay for women? >> well, you know, there was a lawsuit filed by the soccer team back in march. the response was filed by the s ussf and they are claiming it's misleading t claims the women made in the lawsuit. it will be interest toiing to s how this pans out from a business perspective. the ussf says they're not telling the whole story here. one of the things they mentioned is the women declined to have the same pay structure as men here and that the differences in
pay are the result of a different collective bargaining agreement. so that establishes the distinctive pay structure. we'll see what happens with the soccer team specifically. but of course, when it comes to equal pay as a whole, of course women deserve to be paid equally to men if they're doing the exact same work. stuart: but should there be legislation, madison? at the moment if a man and woman work side by side, same hours, same job, everything is the same, but the woman earns less, she has recourse to the courts. do we need legislation to back it up? >> no. i think if women are working side by side with men, they have the same qualifications and are doing the same work, of course they should get paid the same. if they don't, they can sue. i mean, that's as simple as it is. we of course need to bring light to every instance where that doesn't happen. but i think the confusion that we are seeing across the country right now is that people say oh, well, this man is earning $1, this woman is earning 85 cents but they have different qualifications and they are leaving that out of the story in many cases. stuart: are you you are on the
2020 advisory board. have you seen what's going on in the stock market? the president tweeted about the dow hitting 27,000. i think you will be able to use that, won't you? >> yeah, first time ever. incredible record. incredible for the president. incredible for the country. the stocks are off the charts right now. we are excited about it. stuart: you tell him we are up nearly $10 trillion in stock market value since his election. madison, thanks for being with us. appreciate it. >> thanks, stuart. stuart: next case. a new digital tax from france giving big tech, american big tech companies, a run for their money. tell me more. liz: yeah. it's a 3% tax retroactive on revenue. it hits at a $28 million, very low threshold of revenue out of france. retroactive to january 1. this could trigger not just a trade war with france, but trade war with the entire eu. the president could slap tariffs on the eu because france, remember, is part of the eu. so you got to say again and
again, where is the champs-elysees silicon valley? these companies out there, what are they doing over there in france? they want to hit american companies with taxes, the american companies say all right, we'll just charge your french consumers even more. it will be about a $600 million tax on french consumers. because they're not going to pay it. it's mind-bogglingly idiotic how these people in europe think when it comes to developing businesses. stuart: it's a cash grab. liz: it is a cash grab. stuart: because they cannot innovate the way we innovate. they can't execute technology the way we do. so they just grab the cash and run with it. liz: that's right. quickly, this one line keeps coming to mind again and again when it comes to europe and france and how they deal with their business sector, quickly. it's that line when you come, you know, dealing with the government is like sleeping with a hippopotamus. all of a sudden it feels warm and cozy, you're with the
government, yes, but then they roll over and crush you with even more regulations, more taxes. i mean, it's smother iing. where is france's silicon valley? stuart: that was a pretty good analogy. liz: little bit of a stretch. stuart: liz, you're on fire. i like it. good stuff. amazon's big prime day, actually days, plural, coming up monday and tuesday next week. expanding to two days by popular demand, apparently. scott martin, kings view asset management guy, is with us now. scott, i'm sure you saw this. amazon hit a trillion dollars in value again just a few moments ago on this program. would you buy it here? would you shell out good money, $2,030 per share now? >> i would shell out bad money for it, stuart. because to take a lead from e.mac there, amazon is the hippopotamus of retail. they can pretty much do whatever
they want to do. you mention the fact they hit $1 trillion. they had done that before and obviously pulled back which was a buying opportunity. we own it just because the dominance they are showing in retail. e-commerce is expanding like crazy. we got another great holiday season coming up besides the prime days now that are out there. i love amazon. stuart: okay. you're with it. got it. now tell me about netflix. they are losing their two most popular shows, "friends" and "the office." they're leaving the network within the next two years. you think that's a big deal for netflix or would you buy at $380? >> yeah, i would buy them. maybe not as aggressively as i would amazon, because there's definitely more competition in that space, stuart. but i don't worry that much about them losing say "the office" or "friends" because i believe the real key to netflix going forward continues to be their original content. they've got some great comedy shows on there as well as some great movies that are coming out and ones that you know i love, say like "the babysitter" which i will keep mentioning.
it's a dare i say killer flick but there's great original content on netflix that nobody can duplicate. stuart: but that's what netflix is going to be. all original content. self-produced. >> exactly. stuart: that's what they have to do. >> right. they do. but give them credit for adjusting to that before, say, all these films or not films, all these series got taken away from them. they started to do that change a couple years ago and that's really starting to ramp up. stuart: you know, i know technical technically, a lot of people look at netflix and look at the content, good or bad, to buy the stock. i tend to look at the subscriber base. seems to me that netflix has an enormous amount of -- they can pull in a lot more subscribers from places like india. i think that's an untapped resource yet. >> yeah. big mefemerging markets growth. one concern i have, you could look at two sides of the coin there. a lot of subscribers, but they are still losing money somehow.
that's the weird thing. like how can you have so many subscribers and not make money on them. they also have pricing power similar to our friends at amazon. amazon when they raised the price of prime about a year, year and a half ago by 20 bucks, nobody batted an eye. netflix did the same thing. i paid more for my netflix subscription. they have pricing power. that's why i like the stock. stuart: do you think the federal reserve will lower interest rates this year, say two times or three times? we've got the ten-year treasury yield down to 2.08 this morning. >> yeah. i think at least two, maybe three, and stuart, we got some crazy news yesterday, i believe, from powell in the sense that the market totally led him down the primrose path, if you will, of rate cuts and chairman powell was very dovish, as he's been hawkish in the past but he was always kind of say a dove in hawk's clothing, so the market loves what he said. but i think an interesting thing going forward just for those bond lovers out there, watch interest rates here. open market interest rates may actually start hiking up even
though the fed is starting to cut. keep an eye on your bond position. stuart: that will be fascinating. scott martin, thank you very much, sir. appreciate it. better get back to that market. check it again. we are well above 27,000 now. it's been quite a day, i've got to say. we are up 191 points on the dow, 27,051. a lesser gain in percentage terms for the nasdaq. that's up 13 points, .17%. the big rally this morning, definitely in the dow. got a wild scene to show you on a highway in atlanta, georgia. an armored truck door swings open, $175,000 worth of cash just pours out. drivers pull over, they take away armfuls of money. the cops are telling anyone that took the cash hey, get it back, return it, or you will face criminal charges. they say they are reviewing video of the event. identifying the drivers of the cars that pulled over to grab the cash. wouldn't you? liz: why doesn't that happen near us?
stuart: in new york? they would go wild. tensions reaching boiling point with iran. the latest incident. iranian gun boats tried to block a british oil tanker in the gulf. what's our next move against iran? we've got the story for you after this. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please...
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your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. stuart: we're up 200 on the dow, in case you're watching. they've got maybe another act of aggression by iran, this time five of their gun boats tried to overtake a british oil tanker in the gulf. that's before the uk's navy, the royal navy, stepped in to stop them. christian whiton is with us, former state department official. christian, i get the impression the president does not want to fire in anger at iran, but at the same time, he doesn't want to allow these kind of
challenges to go unmet and unchallenged. what do you say? >> yeah, this was another incident where frankly, there was a lot of luck involved in the fact that the ship was close to this bp-owned oil tanker and was able to stop what could have been, you know, led to a significant hot situation. iran says this is in response to britain's containment, if you will, of an iranian tanker that was illegally shipping oil to syria. the brits have her laid up in gibraltar. the administration i think is still hesitant to go to full-on combat with iran, but is putting together a coalition that should at least take better care of these tankers and have a little bit more security in the area. stuart: the europeans, france, britain, germany, they continue to believe in the nuclear pact with iran, and they have not withdrawn from it at this point. i don't understand why the iranians are now attacking
british assets. that would seem to be counterproductive, wouldn't it? >> in many ways, they are fulfilling their threat, the iranians. they said they were going to disrupt tanking in the strait of hormuz, and that's what they're doing. yeah, the europeans continue to have this mistaken belief that they can sort of continue paying tribute to iran which is what the nuclear deal was, and get away with it. iran has violated that agreement without ambiguity at this point with the amount of uranium enrichment they have done. that should lead to snap-back sanctions, not just u.s. sanctions but the u.n. sanctions that were alleviated for the nuclear deal, should be back in place. for some reason, they are not. the important allies i would point out, our gulf allies, saudi arabia, uae, qatar, others, the bahrainis, are the ones with military force. stuart: is there a red line here which the iranians could cross? i'm thinking of if the iranians attacked an american military
asset and injured or killed an american serviceman, that would be a red line and iran would have crossed it demanding a response from us. is this about where we stand? that's where the red line is? >> that is. iran is very good at sort of understanding the red line and going just up to it or around it. of course, they have killed a whole lot of americans over the years, but yes, i think when that happens, if that happens, and frankly, even if something not quite like that but similar happens, we need -- iran is going to keep misbehavining unt it faces a military consequence. that doesn't need to be full-blown war or nation building or making the world safe for democracy, but something that limits iranian activity. we should look at striking their nuclear targets. we are terrible at predicting when nuclear breakouts will actually happen. frankly, we need to take away their ability to make a bomb. stuart: whoa. christian whiton, you are a hawk indeed, aren't you. >> i was at the state department when north korea had its
breakout. we could wake up one morning and you know, the situation will have changed very dramatically. i don't think you want to respond symmetrically. you want to go above and beyond and have escalation dominance. taking out their centrifuges and disabling their plutonium producing reactor, you know. that will buy time for sanctions to work and hopefully create a different political outcome in iran. stuart: okay. the hawk himself. that's your new nickname. thanks for joining us. see you again soon. we are now up about 200 points on the dow industrials. want to keep you in touch with this. everything's going in the market's way. fed on interest rates, strong economy, profits coming up, looking good. now we're up 201. 27,060. how about that. frank baez came to america from the dominican republic, couldn't speak english. got a job as a janitor at nyu medical center. after more than a decade of work as a janitor, he graduated from nyu's nursing program with honors. he's on the show.
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stuart: politics has been injected into sports recently. national anthem kneeling. look, i say just let me watch the game in peace, please. can i just do that? however, we've got a hockey coach from connecticut who took a very different approach. roll that tape. >> we're not women's soccer. we're not the nfl. if there's anybody here that's going to be disrespectful to either the american or the canadian national anthem, grab your gear and get the [ bleep ] out now because you'll never see the ice in this arena. stuart: well, that's saying it, isn't it. liz: you know, free speech, women's soccer team, say whatever you want, that's fine. i support free speech. what he said probably popped nhl ticket sales higher and it showed roger goodell that what matters to americans is they're aspirational, patriotic, they want to look up to, you know, their sports heroes. they don't want politics in
sports, period. so i think there's a reason why this is now going viral all over social media and this coach is getting cheered. he mentioned canadian hockey as well, not just american. covered all the bases. stuart: stand up and respect it. good stuff. thank you, liz. i want to get to the success story which we have been broadcasting all morning. our next guest is an immigrant, came to america from the dominican republic, started work -- didn't speak english, by the way -- came to and started working as a janitor at nyulangone hospital in new york city, worked hard, put himself through nyu's nursing school and now is a nurse at the very same hospital. graduated with honors. look at him. this is frank baez, who is with me today, a success -- big smile, come on. you're doing all right. take me through this. you came to america, you spoke no english at all. >> no, i didn't speak english. stuart: where did you learn it? >> i learned in school, high school, then i went to community
school and after that, i went to a four-year school, then while working at the same time, and then i went to nyu college of nursing. stuart: you supported yourself as a janitor at nyu. >> yeah. stuart: you were there for ten years? >> i was there as a janitor, i did it for three years, then i transferred to become a patient transporter because i wanted to be close to that environment of patient care, then i went to finish my bachelors and then i came back as a unit clerk because i wanted to work in a unit and see on a daily basis the work of a nurse. stuart: so you are now a nurse in the cardio icu unit of langone medical center. you came to this country not that long ago speaking no english at all. >> true. i was offered the job, i will start next month. stuart: that's pretty good, isn't it. you a happy guy? >> yeah. stuart: making some real money? >> well, for a nurse, for the
average nurse who graduates from nyu school of nursing, the average salary is about $84,000. stuart: $84,000. >> um-hum. stuart: that's pretty good, i would say. do you regard yourself as american? >> of course. i'm an immigrant american. i feel like i am the american dream. i came to this country, didn't have nothing, built my own fate, worked really hard and that's why i'm here today because of my hard work. stuart: so many of our viewers don't hear things like this from immigrants. what they hear is criticism of america. you are on the other side of the coin. you like it here, you are an american and you are climbing the food chain. so what's after a nurse in the cardio icu unit? going to be a doctor? >> i am going to be a nurse practitioner and i hope to go back to school for my ph.d. some day soon, i hope, because i feel that education doesn't stop here. it's something that has to continue to evolve and to grow. and i hope to -- the more
educated i get, the more lives i can touch and the more people i can inspire to accomplish their dreams. stuart: you know, you are all right. that's an english expression meaning we really like you. you are a success and we love that. congratulations, frank baez. you can come back and tell us how you're doing any time you like. >> thank you very much. thank you. stuart: more "varney" after this. ♪ . .
stuart: two big stories, politics and money. we'll start with money. look at that, 27,000 on the dow. we're up 207 points. that is rally 1/2 all across the board. the second story the ongoing feud between speaker pelosi and young radicals in the house. at a news conference in the this morning, speaker pelosi tried to put a lid on it, i should say, i
don't think it will work. >> the story has legs. aoc says pelosi is singling out women of color. there is the story about the i.c.e. raids. stuart: chucked gender, race into this extraordinary discussion. what a day. i'm done. connell mcshane, good to see you. it is yours. connell: welcome to "cavuto: coast to coast." i'm connell mcshane filling in for neil. first of all president trump is likely to take some sort of executive action today over the census question. fox news has learned about that. alexandria ocasio-cortez says nancy pelosi is sing -- singling out certain members. we'll have the