Transcripts For FBC Varney Company 20180116

Outlook for the future is looking strong. This is remarkable in itself especially considering the news background. The government may shut down the end of this week in the president is talking about withdrawing from nafta. Investors do not care. A little history if i may. The dow first crossed 1000 in 1972. Hello in the seven hundreds in the early 80s. Today, 26,000. Very glad you are along for the ride. Varney company is about to begin. Another historic day for the market at the opening. First of all, the big tech names. Look at them though. These are premarket quote. This is the price now. Apple, amazon, every single one of them that. Amazon for heaven sakes up 15 backs premarket. The big banks this morning, some of them reporting profit, all of them up with the sole exception of jpmorgan. The rest they gain especially citigroup up to. 5 premarket. Profits more than doubled at United Health driven by a onetime tax gain at the tax code overhaul. That could echo up two bucks. Boeing, Caterpillar Company united technologies. The biggest dow winter since the dow crossed 20 5k january 4th look at them go sent ben. Though we missed up 13 . We better be joined by a professional. Steve cortez market watcher. Looks like we are in for more records today. My point is this is all about strong corporate profits in the future. Show me where im going wrong. Youre not going wrong, youre going right. Main street is an important here. Small business surveys at an alltime high according to the nfib. Regular consumers, quinnipiac polling come a record 66 of consumers say the economy is good or great. Highest number ever. Optimism in the land, the growth is real in the confidence is tangible right now. Under the last administration, we have which you collect clark kent economy. Now we have a superman economy. This economy went into the phone booth which is tax cuts deregulation coming out of the booth ready to soar as a superhero. Stuart at some point you have to discuss why its on the front page of the New York Times or the top of news broadcasts because its not even mention on the front page of the New York Times. Ive got to move on to politics. A Government Shutdown looming at the end of the week. Do you think if the government were shut down it would hurt the market . I dont think so, stuart. What a lot of americans find out is frankly what government does isnt all that essential and what is essential, courts in the military will go on if its a shut down. I dont think its a big deal. Its a big deal for Daca Recipients and democrats need to get honest and make a deal with President Trump who is willing to deal. Terms of market there wont be much. Stuart nafta, the president talking about what leavitt, withdraw from it. Would that hurt the market . That is more consequential, particularly from mexico, but the United States as well. Donald trump was very clear with candidate tom bennis following through is president every so often has done. We made some bad trade deals. Some are antiquated, some unfair in the first place. A trade deal from a long time ago, mostly stacked against the United States. Lets renegotiate. To me this is common sense thats come to the table and come up with terms that make sense. Great news on that score. Chrysler spending a bill [inaudible] tree into it really is. It shipped more than five 1400, 1500. Stuart really, in short order. Laid waste and they are really unstoppable at this point and when you have most of america 50 consecutive days of below freezing windchill and 240 americans today below freezing at some point during the day, they will order on amazon rather than go out to retail for the under capitalized. Stuart the weather extremely cold has been a shot into the arm. The cold weather has coincided with a runup for amazon. As it should. Going long on the restaurant wholesalers. They should be going long on the Food Retailers because the only thing people go out for a sued because they are home all the time coming out of the cold and needed more. Stuart its awfully difficult to tell an audience dont worry. Puts more money into amazon. 1321 per share. Tough stomach now, back to you and steve cortez really good point, americans see on all cylinders in terms of growth, so everything from tiffany to Tractor Supply to walmart and amazon are all growing because Consumer Confidence and Small Business confidence or alltime highs. Up 16 backs. Varney regular Scott Galloway has an opinion. Training to show him and not only power or restraint of competition i would argue basically every consumer stock in the world now train and Fund Performance in the stock from a macro environment and what amazon is arisen during an effectively a monopoly power restraining competition. There is license for doj intervention. Stuart do you think amazon should be broken up . In mecca should be broke and im because its stronger than what john d. Rockefeller did over 100 years ago. Ultimately it is not for competition, bad for vendors. Weve done a lot of federal trade Commission Antitrust work over the last 20 years an interview, more than anything else, amazon should be broken up and divested. Stuart bert, thank you for joining us we appreciate it. It will keep going up. Power to prosper. Stuart the wall street journal reported the pentagon is planning to have to seebased nuclear weapons. Why . Ashley because to respond to the growing military capabilities, supporters that they say we need to revamp to yield warhead from a triton missile any new nuclear two things are looking not to add to the arsenal. Stuart thank you indeed. Look at the market and how it is likely to vote entry will witness history together less than 20 minutes. You have a front row seat to prosperity and Varney Company up a couple hundred points at 9 30 eastern. Big guests coming up next hour. Fred smith, ceo of fedex. I want to know, what is this Company Going to do with all that money from the tax cuts. I will ask about 10 45 eastern. A veteran suing the va hospital because they left a scalpel inside him for four years after his surgery. That is an actual xray. A Government Shutdown is looming. Midnight friday. I say if republicans cant get the democrat to budge on military spending and immigration, they should force a shutdown. What will judge napolitano say about that next. Stuart this is an historic day. 200 points at the opening bell which would put us right at 26,000. Take a look at ge. A 6 billion take from its insurance portfolio and ge capital is eliminating it dividend. That is why it is down on an otherwise update. Viacom stock down friday. The reports of merger talks with cbs and cbs is up a little in viacom is down. Now this. President trump also releasing a treat. We must have security at a very dangerous southern border in a great while to help stop the massive inflow of drugs pouring into our country. I believe it goes on to the democrats shut down the government over amnesty and Border Security, et cetera. The president taking a strong wind this morning. Next one, an army that suing because the scalpel was left in him for four years. 61yard glen turner had surgery in 2013 at the Veterans Hospital in west haven, connecticut it wasnt until last year he went back to the same hospital saying ive been feeling dizzy. Ordered an mri for us had. During that examination he started complaining of stomach injury or senate enemy taken extra and thats what they saw. He suing the u. S. Department of Veterans Affairs and if they cannot testify damages. What is really disturbing when you get into the stories the National Institute of health estimates Something Like this happens across the country not just that hospitals about 1500 times a year. The old joke when a surgeon says anyone in my watch. It happens more often than you believe. He had a scalpel in his stomach for four years. Stuart youve livened up an otherwise dull day. How did you do that . If scalpel in the stomach. There is a looming government shut down. As of friday night midnight, judge napolitano is here. Strata with opinion. I say we should shut it down because the National Interest is fixing immigration and fixing military spending. Most people who believe in small government as i do when you do sometimes agree with you because it really shows how well the country will be protect data and how happy everyone will be without government everywhere all the time consuming more money than it takes in. Heres the problem. Depends how it is sold to the american people. The last time there is one of the shutdown of the republicans got blamed and they suffered mightily at the polls. If the president sells the shut down properly, if a shutdown happens, he can enhance his negotiating strategy and his political base. If democrats capture the 10 say they run the congress, they shut it down its going to be very bad for republicans. Stuart it always goes to republicans always blaming this thing. Stuart democrats are better at blaming republicans than democrats. I dont know why that is. The National Interest at stake here more than the interest of democrats and republicans are president. Our National Interest is fixed that immigration. You are seeking as an idealist. To get it. They are more highminded than members of the congress. Me, highminded . Youre interested in whats good for the country today in longterm. Theyre interested in what what i can do to get reelected. Stuart but if you shut it down, the pressure would be astronomical. He will bring people back to the white house who stormed out the other day after they say what they said they heard because they will need to negotiate in order to save their own political careers. So i am happy when the government loses money because could you imagine a business making money by closing its doors for the government saves money by closing its doors. That makes me happy. That probably makes you happy, too. Stuart we repay all the government workers. Stuart deal at this quickly. Last week the house voted for searches of phones, phone calls and emails. But the cia, fbi and nsa the senate goes today on this. The senate votes to cut off debate. There have been 30 hours of debate after what we have seen, the political use of intelligence data, politicization of the cia, nsa and fbi is beyond me how anybody could vote in favor of this. Stuart it is what is going to happen. Thank you, appreciated. Back to the market, look at the future is holding with the 200point gain. January 4th we had 20 5k. Seven trading days later staring down about 26 k. This will be a suspect the fastest thousand point gain in history. You want to smile . Just checked your 401 k . More varney after this. Hi im joan lunden. Todays Senior Living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. And theres never been an easier way to get great advice. A place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. A place for mom. You know your family we know Senior Living. Together well make the right choice. Stuart take a look at Facebook Free markets of today just over 1 . They were down significantly last week because of the changes they were making to their news feed which might take a bite out of their future ad revenue. Mike murphy with us, the man who said facebook, the stock that will go to a trillion dollars value. I stand by it. Last week about the ad revenue, that is over, correct. Over, onward and upward. Advertisers will still spend money on the platform. Its the best platform. We run a Venture Capital platform. The best ways for these new companies to advertise is on facebook and they are all using it so people continue to go to facebook. This is a hiccup for the company. Stuart within the next few weeks they will have their greater profits and outlook for the future. A full report to keep the stock price up of 180. Will they get it . I think they will. As the economy improves, more businesses are being started good more people spending money to advertise. That plays right into facebook hands. Train to facebook has a lot of upside. Explain citigroup to me. As i understand it, they just reported their financial position and lost 20 billion. But that was because of a tax charge. A onetime tax charge they announced a wall street a few weeks ago that this was going to happen with a onetime massive hit to their earnings up over 2 this morning to a new 52 week high because they are looking forward and the tax cut, each dollar city earns instead of losing 35 cents they are now losing 21 cents on it to the bottom line of stronger earnings, lower price earnings and upside for the financials. Stuart for the benefit of our viewers come in the key here is what the ceo says about the future. Not necessarily the prophet they just reported for the last quarter, the previous quarter. What are we going from here. Thats what you have to look at. For the viewers at home, they understand the fact whether their Business Owners or workers, for each dollar you make a few now are keeping 79 cents instead of 65 cents, you get it. That adds up quickly. When people say the market is high, the market can go higher, they are making a major mistake because as earnings improve, the market has a lot more upside. Stuart you are a brave guy. Up 40 on the dow industrial says the election. 40 now and you say its going to go up some more. So many analysts feel like its time to say that we need a 4 to 5 pullback within the next month or so because that is healthy. It stops the over exuberance to quote Alan Greenspan will maintain the momentum. If we ever get, like when we talk bitcoin, getting overstretched in the marketplace, the market will correct itself in any to be corrected. When you look at earnings coming out right now, companies in the u. S. Keep more of each dollar they make. We move higher, not lower. Us confidently say in the dow would hit 26,000 in the opening bell. It might not actually hit 26,000 because we are now showing a gain of about 180, 190 points on the dow. We need to go up to 197 points. Just a tad short, that you know, we want to keep the drama going as we approach the 9 30 hour. That is when the market opens three minutes from now. It will be up. It will be up and we will be close. We could to get a thousand points, 140point gain today. Stuart 25,000 on january 4th. Seven trading sessions ago. That is all it took, seven trading sessions to go up. I remember it, you dont. Back in 1972. The year i was born. Stuart an auspicious year. The dow first 1000 good i believe it. Stuart the 1970s were terrible for the stock market, going sideways and down. Either early 1980s, we had 700 on the dow industrials. 30 years ago roughly 35 years ago we were at 700 now we are on the cusp of hitting 26,000. Rightfully so. Stuart youve been with us throughout this market rally and youve always said the way to go, thats where you put your money. This market will keep on going out. Youve got 90 seconds to go. So yes, luckily ive been right so far. Theyre really the big change here is youre not looking for price earnings. Thats a lot of times how you price the market. That number is increasing not only because we have new technology helping companies to perform better and faster, but now we have a tax cut for companies that they dont improve, they are getting an improvement because of a lower tax rate. When you factor that in, the big mistake is we have to pull back. Ive been doing this for 22 years. There are no rules. We do not have to pull back or the market will pullback and i dont think its ready. Ashley buildings as more and more people see their 401 k s improving, they are buying more and putting more money in so i think its true. This is be open to the market on the left of your screen. You will see the same thing happened for the ballots about to be round. A very exciting day. We are going to be very close to the 26,000 above. The bell starts ringing, and they start trading. This, ladies and gentlemen. Here we go. Lets see what happened. Up 190. We had it. Ladies and gentlemen. Stuart quiet for the trumpets, ladies and gentlemen. Right there at 26,000. That is exactly where we open. That is a gain of. 70 . A substantial gain. The s p 500 im sure is also open at an alltime high up half a percentage point. Not quite the same game as we saw with the dow. S p on the cusp of 2800. Tech heavy of course is up 44 points,. 6 with the nasdaq composite crossed to a new record high 7300. It is astonishing. Thats what it is in its still not on the front page of the New York Times, ladies and gentlemen. I need help. Stuart mike murphy and scott shellady. This is the explosive phase of the rally. Youre not going to contradict me, are you . Explosives can be a big word. Its big for the markets. But is there not to like. Obviously the tax cuts. That is one of the biggest ones. One more wish for the whole thing and that would be to see wages. Bonuses and tax cuts are fine, but i would like to see something more sustainable. This is great. It comes back down to it. Where else will you put your money . This is the place to put it. We cant complain what weve got in her hands right now so should be on the front pages. Stuart mike murphy, we are going to get these donuts says. Scott shellady, dont think that much to it. When we think about tax cut, a lot of people say this is only for the Big Companies going to the rich to get richer. In the last few weeks weve seen 25 different companies, maybe more announcing bonuses of 2000. Absolutely what the economy needs. The average person out there, the average worker. Stuart on your screens right now, look at those gains. Boeing is a stock thats more than doubled in the last 12 months. 342 per share. Visa is another one thats led the charge up again. A dow stock up 2. 45. Thats 172 points higher. Let me just talk politics for a second. Weve got a looming Government Shutdown. If this thing shuts down, scott shellady, does that hurt the market . The u. S. Government shut down for a few days. I agree. It doesnt hurt. Talked about so many times a day does shut down it will be fit in a few days. Stuart looking at the Technology Stocks on the screen right now. Amazon, up 21 per share. Amazon is down at 1330. 1327 a share. 90. 37 a share. Facebook at 181. 1142. Apple 177. How about that. Across the board. Oppenheimer has raised its price to 1450 per share. I think its great and a lot of analysts trying to play catchup. Big tech is where you see the growth. They have reinvented it sells nec real growth there. Investors looking for growth and not the place you can get it. Stuart microsoft 15 per share. March 2009. Nine years later its ashley no wonder you smile. Stuart lets move on. On the screen right now the big tech stocks. I want to see all of your viewers want to know where their stocks are. We are going to tell you. Thats a promise. But also i have coming up. The dow up 220 points right now. 26,023. Give me stocks. Just put them on the screen. All winners. Our viewers want to know where are their stocks. Changing it to dow winners. United health is up 2 . Knowing is up another 2 . Visa up almost 1 . Nasdaq winners way up. I dont know that one is out. 123 per share. Sending a letter to Business Leaders say their Companies Need to do more than just make money, just make off it. They need to contribute to society. Thats an interesting message. He is saying youve got everything you wanted. Passive through. Give it back to your employees and the people. I couldnt agree more. Spread it around, give it to the employees. Some people im not alluding in saying that people of different opinions. When you make money, you may choose to spend it in a different way than when i make money, which i dont think you know i want anybody telling us how to spend our hardearned money. Perhaps they dont want to do when i dont like that at all. Do what you want with your money. Train to take a look at ge. That is a loser today. Everything else is going on. Just about everything else. General electric is down about 49 cents. Ge capital has dropped it dividend for the foreseeable future and i think what else did they do . They are taking a charge and they have unfunded pension liabilities also back is part of the six plus 11 charter. But careful here because they think ge has had so much bad news stock has underperformed so much. We actually bought some of the stock around 21 a share. Now it is underwater. This to me looks like the board for all the negative news out there. While you have the opportunity of want to see how they respond in the next few weeks. Stuart scott shellady, dont mean to leave you out, but why dont you tell us what stocks, which stocks if any you are buying right now. You have to be careful. I love the text youre in mr. Murphy is correct. The American Ingenuity is going to lead the way Going Forward and i can feel that from over here. Even though it is now stretching the text or because that is going to be where we are going to create wealth over the next five to seven years. That is the place we innovate and show the world we can make a difference. I did a radio show last weekend. Take about where we were. And about the last year, how stupendous these gains are, how much the sentiment has changed. 0 Interest Rate and Home Ownership of a fit your lowest end of the last administration. More people on food stamps at the end of the last administration before he got started. We came from such a bad place and now we see so many great games and we cant get any good news on the newspapers . I find it amazing the gains that we are seeing and nobody wants to talk about it compared to where we were. Absolutely crazy. Stuart so glad you raised that issue again because i got a copy of todays New York Times in front of me. They are leaving their front pages trumps language a headline on that, had nine other republican bill decker tales to of bank rules, the seven letter grades. Can a lawyer of your wishes that his client . We writing the alphabet, cosmic waiter looks to leave his mark. Not a single mention of this extraordinary performance. Let the New York Times keep reporting what they want to report on a month to market keep doing it. Earnings are performing. This is Companies Moving higher because they deserve to based on the earnings they are putting out. You cover them off then it dont perform like general lack drink. But the Companies Performing are winning and people are making money. Stuart do you want to come back and im not one . I want to drive home to the viewers the point of where we come in where we are at today. That is so amazing and you mentioned the stock market over a certain amount of days. Think about how bad Small Business have it. Just think about how that mom and pop habit about all those folks that have felt left behind. Its just amazing the alltime highs this morning since weve been open. Visa, microsoft come american express, apple, United Health, 3m, Johnson Johnson, all of them in the first 10 minutes. I really love it. I love to see money being made. Capitalism, life, great dust. For the benefit of our radio listeners coming dow industrials up 228 points at 26,029. Lets get that right. Trump has more than doubled at united palace. That was driven by a onetime tax gain because of the tax overhaul. That is huge. Then weve got citigroup. They were poor profits this morning before the bell. As you were saying, they took a whopping 120 billion charge and then your stock goes up here tell me why. The forecast Going Forward each dollar citigroup makes will take a much larger percentage than under the previous tax code. That is the positive end by the stock hit new highs. Stuart remember comerica, considered a regional lender, Regional Bank doing very well hauled in part by a series of Interest Rate hikes by the fed, comerica doing well and not up over 2 , to backfire and 95. Ge again as we said would take a 6 billion paid for insurance portfolio. The stocks had 18 hits down in a huge update. Merck report positive surprise in its long cancer study. That is up nearly five points 7 , huge gains. That accounts for 20 points for the dow industrials. Canadas chief in america, chin length tells fox Business Tax Reform will out 200,000 vehicles and vehicle sales here in the United States. Thats a big number. At the huge number but its funny because we talk about Autonomous Cars and how thats going to be the wave of the future, cars that people wont need to go out and buy cars and drive them. That is a bit ahead of us. Again, tax cut are helping on the makers. People feel better, have more money in their pocket. Stuart blackberry has a new product that helps carmakers detect security flaws in software before it goes into their vehicles. Do you remember when blackberry whizz email device . Thats all it was. Now they are focusing on the auto industry. Ashley this is interesting. More and more they are now connected to the internet. The hacking of course about blackberry has done is the new program that scans all of the code looking for new vulnerabilities to the hacking. I was just looking at this, qualcomm, theyve reinvented themselves very, very well and the stock rices out at a fouryear high now. Youve got to hand it to blackberry. The crack very with the great keyboard has no reinvented it out. And its doing very well. Stuart by the way, nvidia is up 2. 20. Airbus, and they may have to run production at the doubledecker gigantic 380 super jumbo jet. Airbus has invoked any in two years. Your international kind of guy there. Scott, since you are over in london, would you say about that . They might not make any more of them. Thats a simple question and i think its smart if they cant sell anymore, about dont make any more. The only thing i would complain about and thats my complaint across all the airlines has the seats are getting smaller or im getting a little bit bigger a little bit of both. But its a little bit uncomfortable for eight hours. Stuart i agree with you. I sometimes flied to new zealand with the 16, 17 hour flight. And im a little guy. Sites a day, 165 pounds on a good day. Shell oil getting real small. This is all about drill baby girl in the United States. Is that right, scott . Yeah, it is. We are not going to be Energy Independent. We are Energy Independent and then energy dominate. Think about where weve come. Think about 150 a barrel on oil. I just cant impress upon you enough the power of positive thinking. These types of good ideas. The tech stock, text or, how they can trickle down on Companies Like this is all good and this is what you can do when you get everybody pointed in the right direction. Its called leadership. Stuart theyve already ramped up their operations. The problem with iraq is its very expensive to do business there. Also the political instability is a factor. Iraq used to be the secondbiggest producer and oil is now fading a little bit. Stuart if you can get it in texas when you talk to oil drilling, and drilling, and this is no longer drilling deep into the ground that the big machines on television. This is technology, new technology making it easier and cheaper for u. S. Companies to get the oil out of the ground. Stuart newsflash, weve had 26,000. Does that mean Nicole Petallides on the New York Stock Exchange has a new ad . What are you saying . Yes of course i am. I tricked you almost. What is interesting is is interesting to see her as the dow up 26,000. See this one coming dow almost 30,000. For a brief moment i thought we skip because it was only seven days for this 1000point milestone. 71,000point milestone and now youve got almost 3000 to look forward to as well. Stuart i do look forward to it. By the way, the dow has just hit its high of the day. We are up 253 points now. 26,056. That is where we are. Bottom right is that right is with us, former chief of nbc universal. You know about the media. Dont hide. Why is the media ignoring this extraordinary stock market rally . Its not on the front page of the New York Times anywhere. Most media doesnt report business. They dont have the interest. They feel that their broad range of people are not interested in the details of it. I will tell you one thing. 26,000, we really havent gone anywhere near where we are going to go. The tax program is so strong its impact is going to be found over the next eight or 10 or 15 months. I predict 2018 will be the most outstanding year since 1996 or 1997 in terms of productivity, in terms of getting close to 4 on gdp and the following years are going to have a tremendous opportunity to die. If you do this on a 10 year cycle, they create 10 million jobs. Gdp is like 300 million a year. Stuart it is great stuff, but lets be honest about the media here. They hate President Trump. They dont want to know anything about the term about the trump rally, so they are not covering it. One of the most extraordinary developments in financial history and its work to be found in the New York Times, even the Financial Times does not have it on the front page. That is a disgrace. You cant deny what is happening. People can argue that this isnt real, but you havent even seen half of it yet. Stuart have you got any clout still a nbc . Cnbc follows it very well. They are out there. Stuart they are nowhere near and you know it. You should have hired me all those years ago. I wanted to tell you one thing. During a time when i was head of ge capital in the early 80s, when reagan had accelerated depreciation for our goods, we went through the roof with our commercial Industrial Leasing businesses. We split the benefit with the cost to ourselves and doubt was spectacular. You havent even seen that yet. Thats a whole another game. Stuart i just want you to repeat you are an important guy and he just told us that you made the nothing yet. Tell me again, where does this market go in the year 2018. The economy in the market can maybe not grow as fast, but the economy will be so strong that youll see all kinds of things. Real estate, Small Business, Large Business and a lot of that cash is going right into the economy. People say its going to get wasted. Business analysts will track every company that they look at, demanding to know where that money has gone to savings. We dont have to worry about the government checking in on them. Plenty of analysts checking in on every company. Stuart bob wright, you have seen the light. Thank you for what you sent me. Give me one second. Code purple for cancer. We are fighting a huge bureaucracy and we are in the white house now and maybe this week we will have some opportunity to getting the state of the Union Message and into the budget, so that is a big thing for pancreatic cancer. Stuart you are a champion on that. Youre a good man we thank you indeed did you still should have hired me. Look at the market now. Will you look at it, please. The dow industrial new high of the day up 1 . That means 257 points higher. The dow was at 26,060, just 61. This is really extraordinary. You are all right. Thank you. I think theres a lot more to it because the market is still not fully priced. Stuart not fully priced. You agree with bob wright and scott shellady. Stuart remarkable. Ashley 940 points now. Stuart what a day it is. Im going to take a cause from our market coverage because they want to get to a completely different story, but a very important story about apple. A lot of hate on apple for letting your kids use smartphones as they wish to. What about being a parent . We will have more transcendent dealing with not after this. We will have more varney dealing with that after this. No. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade thats why feeling safe is priceless. With adt, you can feel safe with an adt starter kit professionally installed for only 49. 00. Call today, and install an adt starter kit that includes security panel, keypad, key fob, entry and motion sensors and for a limited time, get a camera included and installed at no additional cost. Thats a 449. 00 value, installed, for just 49. 00. Adt has over 140 years of security experience, with our commitment to customer service, and roundthe clock professional monitoring, you have the comfort of knowing that adt is helping to protect what matters most. Call today, or visit adt. Com to get your adt starter kit installed for just 49. 00. Adt. We help keep you safe, so you can feel secure. Call 1888337safe or visit adt. Com and get your adt starter kit for just 49. 00. Stuart dow industrials down 274 points. Timeout on the financial excitement to ask the following question, when should children get a smartphone . We have an answer from the author of this book. Be that parent, please. The author is a friend of the family im sorry, a friend of the show. When should your child get a smartphone. I would do before high school and even then i would consider a flip phone. The only reason is they need a way to meet them after pratt is thirdparty. It is just for communication they do not need a smartphone. Stuart but they need to be with their peers. The whole point is you are the parent. You are the one who is the primary influence over their lives. If you think about the things kids can access on the internet, tennessee average age kids are exposed to internet porn. Cyberbullying, the constant ringing of the phone that is making them more anxious and more depressed. Stuart you can put up a wall and say im not going to be part of this new world, this new technology world. I will keep it as a distance. Stuart it is our job as parents to make sure kids are prepared for the world and part of that is making sure they have appropriate ages. We monitor when they get to drink, when they get to drive, all sorts of things are their diet, exercise. We need to monitor this as well. If you are not a parent who wants to be constantly checking on that device and see what your kids are up to 24 hours a day and i do not have time to do that, you should not be getting on the phone. Stuart 50 years ago come you dont remember, but i do, make it 60 years ago, we were told to let them watch television. Its bad for your eyes and will correct your mind. You are being no different now with smartphones. Stuart thats absolutely not true. You cant take the television with you everywhere. Parents believe they must constantly keep kids entertained that never bored and when youre in line for anything, waiting for anything come when your kids are at home in game board, everybody can send the screen. Bad for intellectual development, social development and emily. Stuart my grandchildren will turn three years of age in april. Twin granddaughters. Am i a bad granddad if i get them an ipaq h. Stuart you are a great granddad, but youd be a terrible father to them. [laughter] stuart they happen to be watching. Youre all right. We thank you for joining us. Youd have more time if there wasnt such an exciting day. Unhappy about the excitement. Stuart 10 00 eastern, almost 10 00 eastern here in the easter at 7 00 on the west coast. A very big day for your money. Records for the dow, s p, nasdaq, the dow hit 26,000. It only took seven trading sessions to get from 25,000 at 26,000. We are all over this market and the excitement that it brings, but we also have big political news as well. Midnight friday, four days away, that is the deadline for an agreement on funding the government. If theres no deal, the government will shut down. My opinion . Shut it down. The National Interest demands we settled two issues. Immigration in military spending. They are the sticking points. A Government Shutdown will force a resolution. Look at immigration first of all print the left wants the dreamers to stay, but they dont want the wall or any other Immigration Reform that would keep illegals out. A return to an open border is not in the nations interests. Build the wall, change the rules to let the dreamers stay. Its worth letting the Government Shutdown to get the deal. The republicans want an increase. Democrats say okay, but there must be an increase in social spending to match it. That is ridiculous. You dont buy National Security with more nonmilitary spending. In every previous shutdown, republicans got the blame and democrats do politics very well. Pressure and now vulnerable gop. There is shock value to a shutdown. There would be intense pressure on congress to go up and do your job. Fix immigration and keep america safe. If that is what it takes. Shut it down. The National Interest is at stake. The second hour of Varney Company is about to begin. Stuart look at that rally. Look at it go. Were up 269 points at 26,000 and 71. Were what, 930 points away from dow 27,000. Just joking. Check the big tech names. Look at them go. Microsoft, apple, both hitting alltime highs. Theyre all in the green. All five of them toc the upside yet again. There are nine other dow stocks that hit alltime highs as well as of this morning. Caterpillar, you united technologies, visa, bowing, jpmorgan, american express, United Health, 3m, Johnson Johnson, all of them at record highs as of right now. All of them are part of the dow 30 stocks. Now look at ge. It is down on an up day. It will take a 6 billion hit from its insurance portfolio. Ge capital is eliminating the dividend. The stock is down at at 18 a share. We need more information. Peter morici, pay attention, you are now on. Professor of economics at the university of maryland. I say this latest rally is because corporations are looking forward to a huge increase in profitability. That is why were up. What say you. Absolutely. This rally has been paid for with bigger profits in 2017. c the price earnings ratio in s p said over and over again is no higher than a year ago and still below the 25year average. Well see more profits with the tax cut. With the tax cut we know what that does. This rally will go on. I told you last november, i see the market going to 30,000 by the time mr. Trump finishes his first term. Barring calamity nobody knows like a war or Something Like. Stuart that is rally coverage weve been looking forward to a long time. I want to get back to my take, my editorial, at the top of the hour. What i think is looming Government Shutdown. Here is the president s tweet. The democrats want to shut down the government for amnesty for all. The biggest loser is the military. We need merit based immigration and need it now. No more dangerous lottery. Katie pavlich,c Fox News Contributor. I said shut it down, it is in the National Interest to shut down the government to make sure we get military spending and immigration now. Do you agree with me. I dont know that i agree with you. The essential employees are kept here. Military still functions. Social security checks still go out. Those who dont go to work, federal Government Employees still get their back pay once the government reopens. When it comes to the specific deal democrats need to be called on their bluff here. I wrote a column for the hill last week. Everything the president is asking for in exchange for daca deal, chain migration, end to visa lottery program, end to border wall are all things democrats roundly and strongly supported last 30 years, going back to bill clinton and ending at barack obama. Chuck schumer, for example, voted for a fence on the southern border. This idea they think they are extreme asks in response to daca it is ridiculous and goes counter to their own word and statements on thec issue. Stuart theyre going to call the president a racist. Well, yes. Stuart they will say he is bigot. Because of that you cant do a deal on immigration. That is what theyre going to say. I would say democrats who are holding hostage the 800,000 plus Daca Recipients they to care about because they refuse to vote for very things they supported in the past this is strategic. Democrats want to use this as a hammer against republicans politically to call them racists as you mentioned. They also want to make sure that they dont do a daca deal so people keep coming in and eventually those people will get amnesty. They will be democratic voters. Stuart wellsaid, katy. More on politics in a moment. Go back to peter morici. What is the Economic Impact of a Government Shutdown in your opinion . As long as you handle it properly, get Social Security checks out, military funded, so forth, not very large. What are the consequences for americas business, for example, all the regulators taking a vacation for a few weeks . c it doesnt bother me very much at all. But you have to handle it right. Barack obama used the shutdown punitively to punish republicans. I mean he put barriers up by scenic overlooks on parkways. He closed the mall to visitors in washington even though there is no need to do that as long as you keep things functioning reasonably a shut downis really not all that pervasive. We have the money coming in. There is difference between a shutdown because you didnt get a funding bill and a shutdown because you didnt extend the debt ceiling. My feeling this can be managed. Mr. Trump today finally gave us a very cogent tweet that summarizes it all. If he stays on message and resists the temptation to say you know, inflammatory things, market confidence can be sustained. The economy can keep on moving. I dont see this as a problem. It is time to call the democrats out for what they are, demagogues and opportunists for trying to hold americas military and economy hostage so they can harvest more votes with openc border. Stuart astonishing to me you still have a job in american university. I am retired for a reason. If i tweet the wrong things i get called in. Stuart youre kidding me. Really . I have been called in, yes. Stuart it saying what . Well, for example, we had a situation where a congresswoman said something very emotive about the Health Care Act i responded. A bunch of female doctors complained that i was sexist. Stuart lord. So i got called in, peter, by the way, the university no longer publishes my articles in the press clips. Im just a, im just a subversive. Stuart no youre not. We want you on this program. You come back soon, fellow. Do you believe that if. Ashley yes i do. Terrible. Stuart thank you, peter. Still on there. See you around next week whether i get shot. Stuart several democrats say theyre not going, they are going to boycott the state of the Union Message at the end of this month. They arec. Earl blumenauer, john lewis, Maxine Waters, frederica wilson. What is your reaction if they wont show up to the state of the union . If they wont show up to basic things, having to do with the they dont deserve a seat when it comes to big issues. They have taken themselves out of conversation. That is the choice they made. The president should move on with proamerica, progrowth agenda without them. Pretty simple. Stuart wellsaid, katy. Thank you very much indeed. We appreciate you being with us today. Thanks. Stuart the dow industrials up 260 points, well above 26,000. We have news on shell, the oil company. They are just about out of the mideast. Ashley couple of oil fields left. Theyre getting it, selling their stakes in those. Interesting, royal dutch shell, made this part of the world, middle east, the petroleum powerhouse. Now their footprint is dwindling. No surprise when we see shale oilc producers ramp it up. Shell has natgas operation in the middle east. They are getting out of iraq. Ex on is doing the same thing. Stuart if you can frack until cows come home. Ashley why being in the middle east. Stuart why go over there. Got it. Check this out, one of the biggest diamond you have ever seen, 9 120 carats. 910 carats. It is estimated to be around 40 million. Wow, serious ice. Stuart back to the markets, alltime highs. All across the board. Check your 401 k around break out into a big tooth think grain because youre doing well. Including a big name in money including a 20 correction is coming. Fedex chief fred smith. Joins us in the studio in new york. He is big champion of the president s tax plan, well ask him will you invest in yourc workers and businesses with all the extra money youre getting . How amazon changed the game for fedex. You are watching the second hour of Varney Company. And reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. Stuart Still Holding at really huge gain. Were up over 1 . That translates to 263 points at the moment, 26,067. Citigroup reported their profits after the bell this morning, market liked what it saw, up 1 on citi. Merck, the drug company, reports a positive surprise in the long cancer study. It is up . That is a big gain for a company like that. Airbnb are trying to make money a profit, off the president s alleged vulgar comments. Ashley yeah they are. They have launched a 100,000dollar digital ad campaign, promoting listings in places that the president referred to as reportedly, you know what . Here is a beautiful home you can stay in haiti. We have another one. It says another magical place to stay in the beautiful country of ghana. So there is a couple of countries there. This is brian cheske, 2. 7 million guests of airbnb decided countries in africa, el salavador and hate beautiful enough to visit. Bottom line they are generating it to use for business. No other word for it. Stuart all right. Kentucky is first state to approve work requirements for medicaid recipients. Here is what an author had to say to it. You have a mother, three children, got to say home, take care of kids, youre a single parent, you get medicaid, would you be kicked off, you can get a job with three kids available. If day care is available. If day care is available, she should go to work. That is what we did in 1996. That is why the rolls went down. People went to work, no one went starving. Stuart joining us someone who necessary all about this, star parker, founder and president of center for urban renewal and education. Are you okay with the safeguards for Single Parents who do have to look after Young Children and would find it very difficult to get a job part time or training for a job . Well one of the things that these lax rules allowing for the states to do to be for moms like that one in your hypothetical to open a daycare if what she needs to get to work. What is happening here, varney, is that the under the trump administration, with the gop leadership in the congress, were starting to see a much more flexibility in the rules that govern over the states so that they can start trying new experiments to really help people, help people get their dignity, help people get work experience, help people get good health. With the centers for Medicare Medicaid services were starting to see a little lax, where the great governor of kentucky, matt bevin, let me take advantage of this new opportunity to see if we can include work and training and other mechanisms so that people will move from sitting on their couch as theyre getting their medicaid and maybe start getting more involved and participating in their open lives and in our society. Stuart well, star, does this amount to wholesale welfare reform . Bill clinton brought us that in the late 1990s, in a sense it worked reducing roles on welfare. Is this is bigger deal . It wit be a bigger deal, look at Antipoverty Programs run out of washington, d. C. , 900 billion a year, a quarter of the budget. Medicaid is significant part of that. It is probably a little more an than half of that. Medicaid is Antipoverty Program shared expenses with the states. Theyre shared in this. Of course it is touching welfare reform but a necessary touch. When people are in good health they feel better about themselves. When people work they feel better about themselves. To combine the two elements in the different states, allowing for them to make changes where they need to is a good idea. Healthy for discussions that will come on welfare reform which well get to very soon here. Stuart when i introduced you know what youre talking about here. I should let our viewers know you were once on welfare. I will will not say you were a welfare queen. You came pretty close. I took advantage of the system. Stuart you played the system. When you got off of the system out of the system, how do you feel . Well of course you feel much better about work but it is very risky. Here is the real issue at hand. I was on welfare over 30 years ago. There is little requirement for people to get people back into society. Little requirement for folks sitting there taking advantage of somebody elses work. This is a good move to start getting much more creative how we distribute antipoverty monies, tax monies to the states for them to help those that are most vulnerable. One thing that we can surely do help the most vulnerable in all the distressed zip codes allow them to participate in their own lives. That is what they do in kentucky and many other states across the country now that these laws have been laxed. Stuart all right, parker, since you called me varney i call parker. That is your show. Happy new year. Stuart i do think youre all right an comebacks on the show soon. I will. I missed you. Stuart this is intriguing coming now. Another false warning of an incoming missile. Japan, the public broadcaster there, nhk sending an alert that north korea appears to have launched a missile. The government urging people to take health irinside of buildings or go underground. Unlike hawaii, however, japan corrected the error in minutes. Not known what caused that mistake as of now. More varney after this. Stuart a lot of movement in bitcoin and Blockchain Technology today. Youre looking at eastman kodak. That stock is down. They jumped into the Blockchain Market last week, down this morning. Long blockchain, that is the name of a company, long blockchain, they have agreed to be acquired by stata blockchain, allstock deal. You remember long blockchain used to be known as long island iced tea, got it . Ibm, theyre up a little bit this morning, 1 . That is not a big gain in this market. They jumped into the blockchain deal last week. Theyre at 164 this morning. How about the price of bitcoin, where is it now . 12,000 per ounce. That is down 1hundred dollars. Because the South Koreans want to ban it . Ashley they said this over the weaken and they reemphasized looking at that option very much alive. This is important because the south korea is the Third Largest trading of cryptocurrency in the world. It has a big impact. Were seeing a report that china too is clamming down. That there at some point there will be a regulatory crunch for cryptocurrency. All of that pushing the press down. Stuart conventional stocks straight up. Bitcoin straight down. I wonder if there is a connection . I dont know. I just dont know. The clock is ticking for the government to avoid a shutdown. In my opinion i think we should shut it down. That is the big political story of the day. The rally in the stock market is the huge financial story of the day. That is what were following over the next 90 minutes. You better stay right there. Because this is exciting stuff. Stuart not my favorite beatles song, i will take it. 10 30, 10 28 eastern time. Were holding at a solid rally, well above 26,000. We hit the mark first thing this morning, seven trading days after we hit 25,000. Were up nearly 1 . The big tech names, all of them on the upside. Look at amazon go. Up 24 at 1329 a share. New high for microsoft. Above 90 bucks. Facebook at 180. On and on it goes. The about lieser is ge. Ge capital will suspend the dividend. The market doesnt like that. Energizer ads rayovac batteries to its lineup in a 2 billiondollar cash deal. Energizer is up 14 . If youre not watching us youre probably not hearing about the market rally. Even President Trump notices lack of coverage in the Mainstream Media. Here is his tweet. You notice the fake Mainstream Media doesnt like covering the Economic News but rather would talk anything negative or anything that can be turned into the negative. The russian collusion hoax is dead except as it pertains to the dems. Public gets it. Mediabuzz host howard kurtz joins us now. Howard, i am astonished by this, frankly, here i am, sitting as a commentator on the most extraordinarily stock market rally weve seen in my generation and not on the front page of the New York Times, check the washington post, not on the New York Times, it is not in the news broadcast. Im watching msnbc right now, theyre talking about trumps language. What is going on here . What the h is going on here. Stuart yes, please the fact that the stock market is soaring is getting some coverage but mostly it is not being tied to President Trump. I always say that president s get a little more credit than they deserve when the market goes up and a little more blame than they deserve when the market goes down, but the last 1000 point gain the last seven days powered by the tax cut pushed through by trump. If the market had gone down 8,000 points since the election every story would virtually caused by trump, crisis what he is going to do. You know paul krugman, nobel prizewinning New York Times market columnists said the markets would never recover. Wrote that the day after the election. Stuart youre our media guy. You watch the media for us. I think the medias performance on the economy and the stork market is a flatout disgrace. You think im too strong . I wouldnt use the word disgrace but i would say this in addition to the recordbreaking wall street figures there has been a spate of stories in recent days about the economy essentially being at full employment. How hard it is for some employers to fill jobs, they have to raise wages that sort of thing. There might be a mention of trump somewhere, but not being told as a trump story. That has to do with antipathy toward this is president. Stuart there is another negative. The elites see the stock market go up and their reporting of it is, only the rich benefit. That is ridiculous. Again it is a disgrace that they would come out with that kind nonsense. With some americans invested in the markets through 401 k s through employment plans, the idea this is just a bunch of rich people playing the market that is way outdated notion. Stuart im sorry, howard, i am angry about this. I think america is being misinformed for political reasons and im mad as hell. However i will not drag you into my anger. Im celebrating a whopping great Big Stock Market gain. Here is another one for you. Pest secretary Sarah Huckabee sanders called out amazon on twitter. Alexa, we have a problem if my 2yearold can order batman toy ordering batman again and again. Got criticism for using officially press secretary handle for this. Any attempt you throw at the member of the administration you they it at them. Disgrace. Maybe not unrelated to the fax that President Trump doesnt like jeff bezos and. Nice human moment, for Sarah Huckabee sanders has three young kid and talk about the machine and batman toy thing. I saw people attacking her. You cant say everything without drawing flak even talking about your 2yearold child and that is just said. Stuart im mad as hell, howard, i want you to get fired up like me. Im working on it. Im working on it. What else you got . Stuart listen to this. Cnns chris cuomo taking some heat for saying this. Roll tape. Went to the white house when it happened and raj, whatever his name is, didnt back off the word. Stuart raj, whatever his name is. He is a senior white house official but dismissed as rage, whatever his name is. That is a disgrace. You may get mad at me on this one but do 15 hours of television a week sometimes blank on a name. Raj shah, not one of those long indian names. He apologized on the air. Sarah Huckabee Sanders sanders taken a whack at cuomo said it was classy thing to do. Stuart howard at my age you can be forgiven forgetting a name. Chris cuomo is young enough to be my son. I got alaugh out of it. You calmed me down. Thank you, howard. Blackberry, Extraordinary Company continuing its push into, the car industry. That is blackberry. Ashley they are, a number of ways basically putting out a Software Program that tries to thwart hackers. We know that cars, use software but theyre now becoming even more connected to the internet which raises the specter of people being able to hack into cars, steal information, even take over a car. Blackberry came up with the Computer Program called jarvis that will scan all the code within the cars to see any vulnerabilities in there that hackers could use. They have signed partnership deals with nvidia, qualcomm. This is company, blackberry as we know started off in the smartphone business as completely done a 180, has now put all of its eggs in the car Software Business and doing very well. The stock is at a fouryear high. Tough be impressed with the way they have pivoted. Stuart look at it, 14 a share, up 4 1 2 today. We had written it off. Ashley we had. Stuart the crackberry was gone. Ashley not so fast. Stuart some genius turned them around. That is a fact. Ashley good story. Stuart were holding on to a 200point gain for the Dow Jones Industrial average. For the benefit of our radio listeners, right at 26,000 right now. 26,003. 26,004. Were holding 26k. By the way we hit it only seven trading days after we hit dow 25,000. Ashley 140 points a day, based on seven trading days. Stuart youre good at math. Ashley no, i cheated, used my calculator. Stuart stop showing off. As we go to Brian Kilmeade, were up 204 points at 26,008. Brian, come on in, host of the Brian Kilmeade show. I want to ask you this, i at the top of the hour i gave an editorial saying we should shut this government down. It is in the National Interest to shut it down to get a deal on immigration and military spending. What say you . I dont see any indication they will go back and do something bipartisan. On tuesday it was three and three. There they were meeting in bipartisan way, we were talking about the tax cuts, this group on bipartisan level was talking about daca, some type of twophase Immigration Reform. At 10 30 the president was reportedly for it. By 12 he wasnt. Now we got the personal snapping between dick durbin and president. If we shut it down, stuart, what indication are they going to work on anything . Stuart the enormous pressure to go to work on something. I mean there will be pressure on the republicans maybe to cave. There will be pressure on the democrats, are you really shutting the government down because of the dreamers . Theyre going to knock heads. The only way to get a deal is for it to hurt, shut the government, make it hurt, and then you will get a deal. It is in the National Interest to do it. They wont getting hurt. Not like they wont get paid. A bunch of government workers well find out theyre nonessential great for the selfesteem. Anthony robbins will have to lift them up with personal power. Stuart im perfectly happy with a Government Shutdown. Nobody wont get hurt. Economy will not get hurt. Stock market rally will not get hurt. We dont need this, do we . Stuart i feel, i hate disagreeing with you because youre so powerful and make me have retribution, retribution, but i disagree. But also the international perception, the country fighting with each other nonstop, whose economy finally getting on track, pushing back since the election with nonstop investigations now cant even fund the government even though they have record revenue . That to me is embarassment for the president who billed himself as negotiator. I think a shutdown shows a failure, personally. Stuart okay. Were totally out of time for that issue. So i will move on to something more positive for you, kilmeade. Showing maturity. Stuart very good. 99yearold lady, minnesota viking soup fan, she was at the vikings game, given tickets it the super bowl as early 100th birthday president from the team. Brian, if im not mistaken the super bowl will be played in minnesota with the vikings stadium, correct. With or without the vikings there, neutral site. Second time, unlike in new york, have indoor facility. A lot of tunnels in minnesota. This is fine. This is the pr the nfl needed. Commissioner who heard the story about the 99yearold who has never been to a playoff game even though the vikings were great in the 70s, part of the 80s, in the 90s reached it once. Great move for the team. Now there is gofundme page to get her to the vikings eagles game. Maybe people respond, sender her to philadelphia. She will be in minneapolis. This is maybe First Time Ever the nfl will have a team play at home with the super bowl which traditionally is neutral site. An amazing weekend. However, fascinating to see the ratings were off everywhere except the minnesota game again last week in the playoffs. Paying the price for taking a knee. I really think the nfl cant wait for the season on some level to be over. Stuart to be over, wellsaid. Brian, got to leave you. Well see you again real soon. Brian kilmeade. Great seeing you stuart. Stuart thank you. First on fox business, fedex ceo fred smith, big champion of the president s tax plan, were going to ask him how is he going to invest in his workers and business . Is he going to pass the money through . He is next. Ashley the market is are breaking records. Your retirement accounts are booming, and the Mainstream Media . Ignoring it. Former nbc chairman bob wright, 2018 ignore it or not will be an outstanding year. Roll tape. Most media doesnt report business. They dont have that interest. They feel their prod range of people are not interested in the details of it. I tell you one thing, 26,000, i dont think, weve really havent gone anywhere near where were going to go. This tax program is so strong it is, it is impact will be found over the next eight or 10 or 15 months. I predict that 2018 will be the most outstanding year since probably 1996 or 7 in terms of productivity, in terms of probably getting close to 4 on gdp. Ooooooh snap every truck guy has their own way of conveying powerful. Yeeaaahhh boy. Kind of looks like a monster coming to eat ya. Holy smokes. That is awesome. Strong. You got the basic, and you got the beefy. I just think it looks mean. Incredible. No way. Start your year off strong a new chevy truck. Get a total value of over 9,600 on this silverado all star when you finance with gm financial. Find new roads at your local chevy dealer. And butch. Aura. And tank. And tiny. And this is lauras mobile dog grooming palace. Laura can clean up a retriever that rolled in foxtails, but shes not much on articles of organization. Articles of what . So, she turned to legalzoom. They helped me out. She means we helped with her llc, trademark, and a lot of other legal stuff thats a part of running a business. So laura can get back to the dogs. Would you sit still . This is lauras mobile dog grooming palace and this is where life meets legal. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Stuart lost a little steam but not that much. Ashley still 26,000. Stuart well take it. We were well up over 200. Now were up 199 and change. 26,003 is where we are. Now this. Many Companies Give back or are giving back sult of the tax bill. Fed exsays it will deliver 1. 5 billion worth of higher earnings, better profits. Look who is here the man himself, fred smith, the fedex ceo. Honor to have you on the show. Thank you, stuart. Glad to be here. Stuart what are you going to do with the extra cash . Are you going to give bonuses . We have a Board Meeting next week. We tell the board what the tax bill means to us. It passed in between Board Meetings. Im sure well do a lot of things as a result of this tax bill because it was very, very good policy. Stuart that is very smart avoidance of the question. I cant make any news until our board approves the things were going to do but obviously the tax bill means businesses like fedex, which is already a major investor, our capex budget this year will be 5. 9 billion. But it means that we can increase it in the future because of the new provisions of the tax bill. Stuart top guy at blackrock out this morning saying companies should be responsible, and they should contribute to society. I think he is talking about the bonuses and wage increases. So kind of prod you a bit more, if walmart can give bonuses to a million employees why cant fedex do something similar . My guess is we will be responsive to the tax bill. Stuart can i say that as a probably, fred smith, fedex you can say that is probably. I dont know it will be bonuses. Might be increased wages which we do every year anywhere stuart but will you increase more because of the tax bill. It could well be, stuart, because the tax bill corrects something that has been a real problem for American Business for years and that is the punitive tax code that we used to have that dissuaded investment. And investment is the only way to make bluecollar workers, people that dont have college degrees, more productive and have more income. So you can hire six people to move a pile of dirt. You can hire one person with a bulldozer. The difference is the bulldozer. Bulldozer driver makes a lot more money than people with a shovel. Stuart if you buy new bulldozer it is immediately compensable. That is the difference right there. It reduces the risk and improves the future returns of that capital asset. So it will increase Business Investment in this country. And that is the biggest single problem that we had prior to this tax reform. Stuart so you will commit to investing more in your business, because of the tax money that you get . Well i dont think there is any question well invest more because you can expense it. The reason i hesitate is for the simple reason that were already in a enormous investor, 9. 5 billion capex this year. Boeing airplanes, ge engines, freightliner trucks, computer systems, i could go on and on. What it means in the future rick of investment is lower. Almost certainly American Business, including fedex will respond to it with higher investment. Stuart you deliver some of amazons stuff. We do. Stuart a lot of it actually. Well weve got news today that amazon shipped five billion items just to its prime members. Right. Stuart that was last year. Five billion items. Can you keep up with that because theyre growing like topsyturvy . We can keep up with any growth as long as it is compensatory, things we were just talking about. When you make Big Investments you have to get a return on those investments. So assuming that the rates paid are compensatory of course we can keep up with it. The expensing makes it that much easier. Stuart the word is amazon might invest in its own Delivery Service, its own trucking fleet or airline fleet, which some of it has already. That has got to worry you . Well let me put a couple of things in perspective here. Fedex today on average will deliver about 13 million shipments. Well deliver those 13 million shipments with 650 planes, 5000 facilities, 150,000 vehicles, and almost half a Million People serving 220 countries. Stuart that is per day . Per day. Stuart 13 million per day. Per day. Stuart have you got excess capacity . Well stuart will your current planes and ships and freightliners, can you deliver 15 million a day . No well we, we can easily deliver is a million a day but you have to invest in the capacity to be able to do that. Thats why the tax bill is so positive. Stuart okay. So going to put the money back into the company, arent you . We have been for years but it will allow to us put more money into the business with less risk, and thats the big issue that was solved with the tax bill. That and the ability to bring money that was locked overseas back to the United States. Stuart are you experimenting or doing anything with drones . We do have a lot of efforts underway for Autonomous Vehicles and aircraft. Stuart so youre into it . No oh, big time. Stuart that is the future. Yes. I have to tell you, we dont really like to do vaporware, make announcements then arent seen in the operations so i think some of these things in the next couple years you will see a lot of announcements from fedex. Stuart i spent the last five minutes pressing you to say something. [laughter]. Up on that monitor i see the dow jones average at almost 26,000. That is a riproaring rally. Sure. Stuart what does fred smith of fedex say about that . I think the stock market represents the future expectations on cash flows and profitability. You were talking about amazon. We love to have their pe. Our trailing pe is 22 and were highly Profitable Company and their trailing pe is 266. So at any rate, the market is reflecting growth around the world which of course we see. We serve 220 countries. Nobody sees the Global Economy the way we do. And its pretty wellsynced up and you have better situation for business with the reduction in regulations and most importantly this tax bill. This was a long time coming. It was directed where the u. S. Had the biggest problems which was lack of corporate investment, and Government Investment for that matter. And that will have a big effect on gdp growth and wage growth. Stuart you went to Harvard Business school, was it . No, i went to yale undergraduate. My graduate school was usmc, four years in the marine corps. At yale you submit ad Business Plan for a overnight Delivery Service and they rejected it, correct. That is direction alley correct. But i think the story is i wrote a paper and i got a c on it and everybody thought that was such a good thing. I was quit happy with that c. Good grade for me. Stuart there was a time you didnt have enough money to pay for jet fuel for your planes and your pilots chipped in with their own credit cards, that is accurate . Maybe one of them did. They were a great bunch people and helped carry the company on their backs many ways, not just paying for a load of gas. Stuart you have never forgotten them, have you . No, no. The whole thing about fedex that sets us apart our culture and our people and our dead kegs to the what we call the purple promise. I will make every fedex experience outstanding. That is how we became a 65 approximately billion dollar company, because of teammates that deliver 13 million shipments every day. Stuart forget me asking you a personal question, youre a wealthy man, extremely wealthy man, what do you do with your money. Well i have lots of kids, lots of grandkids. I have a lot of, a lot of charities and causes that i am passionate about and, so its one of those things where fortune has obviously smiled on me but i have seen a lot of tragedy too, i keep that in perspective. Stuart such a diplomat. Youre telling me it is none of your business. Yes you are. You are an american icon. Thank you, stuart. Stuart fred smith, what an honor and pleasure to have you on the show. Thank you very much for having me. Stuart much obliged to you. I will shake that hand. Thank you, sir. Press secretary Sarah Huckabee sanders, she had some strong words for senator Chuck Schumer. Blake burman standing by with what exactly she said. Go, blake. Reporter hi, there, stuart. Sarah sanders from the north lawn driveway, defended the president from those who feel his comments last week prove he is a racist. As Chuck Schumer said last night on Stephen Colberts show the following. You want to begin, just begin that long road back to proving youre not a racist, youre not bigoted, support the bipartisan compromise. I think if the critics of the president were who he said he was, why did nbc give him a show for a decade on tv . Why did Chuck Schumer and all of his colleagues come and beg donald trump for money . Reporter that bipartisan compromise schumer was referring to there, daca deal democrats want to see attached to a spending measure that needs to get passed by end of this week by friday night. Sanders reiterating the white house does not see that as an attachable issue. They believe it is separate. President trump, to that end is trying to preemptively shift the blame on to democrats. A little while ago he sent out this tweet, writing quote, the democrats want to shut down the government over amnesty for all and Border Security. He goes on to write in the tweet, we need a married based system of immigration and we need it now. The democratic senator dick durbin who has been a target of President Trump in the recent days said earlier today he thinks a shutdown is preventable. In any event the heat is ratcheted up here as the friday night deadline nears, stuart. Stuart as you might expect. Blake burman at the white house. Blake. Stuart thank you very much. The rally holds, close to 26k. More varney after this. Retirement. I get that voya is with me through retirement, im just surprised it means in my kitchen. So that means no breakfast . Voya. Helping you to and through retirement. I can do more to lower my a1c. Because my body can still make its own insulin. And i take trulicity once a week to activate my body to release it, like its supposed to. Trulicity is not insulin. It comes in a onceweekly, truly easytouse pen. The pen where you dont have to see or handle a needle. And it works 24 7. Trulicity is a onceweekly injectable medicine to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. It should not be the first medicine to treat diabetes, or for people with type 1 diabetes or diabetic ketoacidosis. Do not take trulicity if you have a personal or Family History of medullary thyroid cancer, if you have multiple endocrine neoplasia syndrome type 2, or if youre allergic to trulicity. Stop trulicity and call your doctor right away if you have a lump or swelling in your neck, severe stomach pain, or symptoms like itching, rash, or trouble breathing. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases your risk for low blood sugar. Common side effects include nausea, diarrhea, vomiting, decreased appetite, and indigestion. Some side effects can lead to dehydration, which may worsen kidney problems. To help lower my a1c i choose trulicity to activate my within. Ask your doctor if onceweekly trulicity is right for you. Stuart welcome, everyone, and welcome, indeed, to the third hour of Varney Company. Weve said it before, and we will say it again, you are watching financial history. This is the most explosive stock market rally that i personally can remember. Think of it this way, on january the 4th the dow crossed 25,000. That was just seven trading sessions ago. Weve gained a thousand points in a weeks worth of trading. That is stunning. Heres Something Else that is very hard to believe, but it is true, the five big Technology Stocks all American Companies have gone straight up and added a trillion dollars to their value since the election. Apple, amazon, alphabet, microsoft, facebook, they are leading the world towards a new technology economy. Again, that is stunning. This program has tracked the trump rally right from the get go as the market kept going up, more and more people got worried. What shall we do . Should we get out before the inevitable selloff . Well, heres a couple of strategies for those who may be anxious. Number one, you sell everything now, you take your profit, you sleep well at night, you wont have to pay the profits tax until april of 2019. Option two, sell half your stock. That way you lock in your original investment so youre not going to lose. Let the rest of it ride. Number three, put in a stop loss. That means if say you own apple and its now, say, 176 a share, you order the sale of all of it if it hits 160. You have stopped your loss. In all three of those, you have the problem of what to do with the money now that youve got tons of it. That is not exactly a huge problem now, is it . We are very glad that youve been with us all this time. Its been a wonderful ride. I dont know where this markets going, but ill tell you this this is financial history. You can tell the grandchildren that you were there when the trump rally made wall street great again. The third hour of Varney Company is about to begin. Stuart now, having said that youre watching financial history yes . Stuart we are pulling back a little from historical markets. Still a half percentage point, still a very solid rally, but were back below 26,000. The dow broke 26k first thing this morning. Weve lost some ground, but the s p, the nasdaq, the russell, all three of those other indicators as well as the dow, all of them hit record highs earlier this morning. Still on the markets, our guest this morning says you should take your profit. Take your profit now because a correction could be coming. Is coming, i think hes saying. Joining us is Craig Johnson, managing director at piper jaffray, very senior guy. All right, craig, are you saying, yes, a 20 correction is on the immediate horizon . Is that what youre saying . Yeah, stuart. Lets take a look at the weight of the evidence and, yes, we are seeing that we think a correction is certainly very possible at these levels. And let me say why. So if we go back and look at some of the names you had just mentioned a few moments ago, if you look at the chart of caterpillar, boeing, if you look at a chart of microsoft, intel, united technologies, stuart, all these charts are basically parabolic in nature. Theyve gone straight up, and theyre almost bending over backwards. As a technician looking at the market in a parabolic advance like this, typically these advances dont end well. They typically end up in some sort of correction. And if you look at the fact that seven out of the thirty names in the dow are parabolic, you also take note that youve got probably about 20 of the names in the dow that are more than 20 above their 40week moving average, and a third are 15 above their moving average. For all these reasons, theres a lot of great companies, but now is probably the time to take some off the table, and, in fact, youve done that. Stuart okay. I like your expression, take some off the table. I was just saying at the top of the hour one strategy would be you sell half of your stock. You know, if youve made a lot of money in apple, for example, you sell half of it, so you keep your money safe, your original investment, you let the rest of it ride. Is there something wrong with that strategy . I think that strategy makes some sense, and it just depends how far you think this setback in the market could ultimately go. If you think about the fact that you correct 110 of a parabolic advance, you could see some Pretty Healthy corrections in some of those names, you know, such as boeing and caterpillar and some of those names. Id also just mention though for the long term, right, this is more short, intermediateterm thinking. For the longer term, weve always said weve been on this show since 2012 talking about the great rotation in the secular bull market. If we get this setback, this is a setback correction within the context of that secular bull, and we think this bull market works until you have a 5 or 6 tenyear bond yield. Thats years from now. Gotta be careful in the near term, stuart. Stuart thats very interesting. Youre a little technical for us. We avoided giving you the buzzer, were very generous today but, nonetheless, craig, thanks for joining us. We do appreciate it. And were looking for that correction. I want to bring in Fox News Contributor now scott martin. Scott, you heard Craig Johnson there, the likelihood, the expectation of a 20 pullback sort of correction. Whats your reaction to what he said . Been there, heard that. I guess this is what makes a market though, doesnt it, stuart . Were both craig and i are kind of on opposite sides. I do respect their research, but ill tell you, havent we heard this story for the last, i dont know, two, three, four, five, six, seven, eight years, you know what i mean . There was supposed to be a doubledip recession after the first one back in 08, and that never happened. Heres the reality, craigs partly right. Parabolic . I dont know. Look at bitcoin prices, thats a parabola. To me, its Aggressive Growth in a lot of these stocks that he mentioned. But my goodness, guys, if you look at this historic tax package that we just had which, to craigs point, this is not a normal market. This is a market thats going to be really juiced. So the fact that companies can trade on these higher earning multiples makes sense to me. The fact we have gdp consistently over 3 this year, maybe even pushing 4, is a reason you should still be excited about stocks. Yes, the higher we go, the farther we could fall, but i dont think its anytime soon. Stuart all right, scott, we asked you to tell us, tell our viewers what are you buying. And i know youre going to start with paypal. Make the case to buy paypal now because im pretty sure its close to a high. I dont follow it, but its at 80 a share. Youd buy it at 80, why . Yes. And weve owned it since the 60s. Its this old saying of cash was kind of so 2016. And those credit cards, you know, the plastic stuff in your wallet was kind of 2017. Paypal and some of these other electronic pay systems are 2018, stuart. And if you look, paypals behind a lot of the Online Transactions that you do whether you know it or not, and theyve got amazing earnings power. Theyre getting that growth both in and internationally, and thats why we like them here. Stuart okay. Now, you also like the big tech stocks. We always put up the five big techings. We put them up all the time, and you like four of them, as i understand it. The only one you dont like is apple. So tell me why lets start with top of the list there is facebook. Now at 179. Why buy it at 179 . Ill tell ya, i was really excited about what happened last week with facebook and their talking about how they were chasing the news feed ads and items that come up on your screen because that was an opportunity for those who missed this run in facebook which you and i have talked about a lot, stuart. You look at the mobile ad growth alone, its a reason to buy it. Besides the fact that zuckerberg and some of the crew are taking steps to improve their business model, theyre addressing concerns which a lot of Tech Companies back in the day used to not do that. Theyre being responsive. The only reason i dont like apple, its a little overowned here. Their ecosystem is getting breached here and there, we see spotify coming out with an ipo which i do like in a couple months, by the way. I think apples one of those big names i would avoid here. Stuart the other one, i want to concentrate on amazon. 1330 a share. You like it, you would buy it at that price . I would. And i saw you talking with berth flickinger, i think it was, earlier on the show around nine a. M. Eastern about amazon getting investigated for the antitrust, doj stuff. Heres the problem with that, i feel like amazon just in their Earnings Growth alone and the fact that theyre such a big part of our lives, amazon prime is the gateway drug to internet spending, and thats why theyre really good. Ill tell you why i dont believe the antitrust deal. If you look at history, its companies that take advantage in, say, price pressure consumers which is not happening. Amazon is bringing down prices, and theyre making things so much easier for the consumer to buy which is not antitrust as weve seen in the past. Stuart im going to throw two bitcoin stories at you. South korea says its still considering a ban on bitcoin, and 80 of all available bitcoins have already been mined, so to speak. Why are prices down this morning 1600 a share a coin, i should say . Yeah. Ill tell ya, its kind of that opposite side of the parabola we touched on. It kind of took the elevator up, as the saying kind of goes, or the escalator, it really took the elevator up, and its jumping out the window here. A lot of investors that i know, im a recovering bitcoin holder, so we dont own it. We are buying it here. A lot of investors are getting out of bitcoin and getting in some of the other cryptos, stuart. Thats why i think a lot of those prices are getting pressured and the fact that i think people are realizing maybe bitcoin isnt that true alternative like gold or some of the alternatives people have bought in the past. Stuart tell me about ge. Its down today. The ceo is maybe considering breaking the company apart, breaking it up, i should say. Is this the time to get into ge at 18. 26 . Its really close. Its feverishly close, i can feel it. John layfield and i talk about it a lot, who i think hes a good longstanding ge owner. Im not quite ready yet, but things in ge just like in retail, and we talked about this on the show on tape in december [laughter] things were getting so bad, they were talking about breaking it up, cutting thetive tend, and its going to go to 15, its just not quite here yet, but were searching for a spot to get into ge. Stuart we hear you, scott martin. Thanks for joining us on an historic bay day. See you again soon. Now this, last week we shared the story of a couple of High School Students who made a hundred thousand bucks mowing lawns. They own green works landscaping in colorado. Today were joined by the founder, he is 17 years old. Kelly ward will be with us. Shes running for jeff Flakes Senate seat in arizona, and shes taking on senator flake for comparing President Trump to joe stalin. Shes with us shortly. And with the possibility of a Government Shutdown looming, President Trump calling out the democrats. More on that in a minute. And, of course, were following the big story of the day, your money. The third hour of Varney Company is only just getting started. Its great to finally meet you. Your parents have been talking about you for years. Theyre all about me saving for a house, or starting a college fund for my son. Actually, i want to know what youre thinking. Knowing that the most important goals are yours, is how edward jones makes sense of investing. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Stuart we were up well over 200, but well take up 143. That puts us just shy of 26,000 which we did hit earlier. Invidia, record high. One Investment Firm raised its price target the 240 a share. Right now its 224. Casino stocks, wynn and mgm, theyre up. Morgan stanley says wynn remains its top casino pick, mgm is its next favorite. Both of them up. Politics. President trump tweeting about a possible Government Shutdown. Heres what he has to say. The democrats want to shut down the government over amnesty for all and Border Security. The biggest loser will be our rapidly rebuilding military at a time we need it more than ever. We need a meritbased system of immigration, and we need it now. No more dangerous lottery. Hes here again, herb london, president of the London Center for policy research. I say shut it down, because that way youll apply pressure to get an immigration fix and a military spending fix. What say you . I say the military spending is critical. The president has asked for an additional 56 billion of spending. In order for us to reinforce the triad and do whatever is necessary in the way of antimissile defense, we must have this money. Whatever pressure can be applied on the democrats must be applied. Stuart well, the democrats are saying, okay, you can have your increase if you increase social spending by the same amount. This is absurd. It is absurd this large part because there are issues that transcend the normal discussion in the political arena. This is one of them. If we are talking about the future of the United States, to some degree the security of america is critical. And that security is very much dependent on our having the requisite military strength to deal with our enemies. Stuart and youve got to stand firm on the dreamers. Sure, let em stay, but in return youve got to build a wall, youve got to get rid of chain migration, youve got to get rid of the lottery. That would be a reasonable deal. You made reference to a meritbased immigration system. This is what we must have. The canadians have it, the australians have it. This is what makes sense in the United States. Its not a question of whether we will have pourous borders, its a question of whether the people coming into the United States want to be an american, want to share our values, want to contribute to the United States, are capable of contributing to this country. Stuart sure. Thats the issue. Stuart right 100 . But you know if that Government Shutdown takes place, the republicans will get the blame. Of course. Stuart the media will be all its your fault, and theyll take aim right at our president. There is no question. And they will say that President Trump is responsible. And i assure you, schumer will be on tv tonight saying that the president wants to shut down the government. But its the democrats that are largely responsible. To onus has to be put on the democratic party. The president has to turn the tables on them, and i think hes capable of doing that. Stuart okay. Homeland security chief, kirsten nielsen, as you know, shes been testifying on capitol hill this morning. She was asked about the president s alleged vulgar comment. She said he didnt use that vulgarity. Can you believe that thats what theyre still talking about whilest weve got the Government Shutdown coming up, weve got a whopping great stock market rally, weve got an economy thats booming, and theyre talking about a weekago event about a vulgarity. Look, stuart, if someone would have said to me when this president took office that we would have a dow at 26,000, id say youre smoking hallucinogens. [laughter] if you would have said to me that the Unemployment Rate is the lowest in 17 years yep. Id say i dont know where youre dreaming. If you would have said [audio difficulty] to me that even among black youth weve had lowest Unemployment Rate in recorded history, i would say [audio difficulty] and yet interestingly, were dealing with some foul language that may or may not have been said by the president. Just absurd. Stuart its absurd. Its absurd. Stuart absolutely absurd. It demonstrates something about the relentless attacks from the left on this president. Stuart youve got that right. Herb london, youre all right. [laughter] thanks for joining us, sir. Hbo doing some cost cutting. They say, look, theyre going to reduce the number of shows that they develop. Also theyre not going to spend a ton of money to land the big stars. Netflix says it spent 6 billion to launch 30 original shows last year. Theyre going to do some cost cutting. That was, by the way, hbo. Theyre doing the cost cutting. Right. Stuart now this, u. S. Oil output is booming, we hear, thanks to a jump in shale production. Its now on track to top more than 10 billion gallons of oil per year per day, i should say. Well hit that in the next couple of days, i believe. Thatll break a record set back in 1970. Thats stuart yes, absolutely. Drill, baby, drill. That is energy dominance. It is. Stuart good stuff. Very soon were going to be joined by Arizona Senate decade kelly ward. Shes releasing an ad hitting back at jeff flake and martha mcsally. Youll see the ad here first. Check this out, thad hoyer, is that the right pronunciation . Yes. Stuart all right. [laughter] a watch company. Unveiling its shiny new smart watch. 589 diamonds. Guess how much it is. Too much. Stuart well take a break and youll find that out, i promise. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Profanity . No, sir. Neither did i. Did you hear senator graham use profanity . I did hear tough language, yes, sir. What did he say . He used tough language. He was impassioned, i think he was feeling very strongly about the issue, as was everyone in the room. And to underscore a point, i think he wasc using some Strong Language. Do you recall that the Strong Language he used repeated exactly what the president had said prior to that . I remember specific cuts words being used by cuss words being used by a variety of members. Im not going to ask you to say those words here, but i will just say for the record senator graham spoke up in a way that i respect very much, countering what the president had said about countries in africa, reminding the president that his family did not come to america with great skills or wealth, but they came here as most families do, looking for a chance to prove themselves and make this a better nation. And in defense of senator graham, his strong words repeated exactly the words used by the president which you cannot remember. Let me ask another question if i just could, sir, i do want to say that i greatly appreciate not only senator grahams leadership, but yours as well. I know youre both very passionate about this. As you know, afterwards i approached this and asked that im happy to come talk to you anytime. I do think that senator graham very passionately described what he believes americas aboutc ad what we should move towards. Yes, i agree with that. Do you support a path to citizenship for Daca Recipients and those in the dream act . I think we have to find a permanent solution, yes, sir. I hate that phrase, permanent solution. Do you support a path to citizenship . I believe that is part of discussion and to make sure that we dont continue temporary populations that continue to exist, we should talk about that. Im not here to get in front of the president or any final decisions on that particular issue, but, yes, im happy to discuss it. Do you recall the president saying he wanted 20 billion now, and he would build this wall within one year . I do remember him saying that. He was concerned that given the appropriations cycle that any teal that we made now would be limited to this years appropriation. I remember him asking is there a way to authorize the full down payment of the law such that we could have assurances that we could, in fact, build it. So lets take a look at what your department has done when it comes to building walls. As of december 6, 2017, less than 1 of the 341 millionc appropriated for 40 miles of replacement funding had been expended. Actual construction has yet to begin on money appropriated in the last fiscal year. So is the president realistic when he says he wants 20 billion so he can build the wall in one year . I think the president is encouraging us to go as quickly as we can. [laughter] as you know, its a very complicated issue, building the wall, for a whole variety of reasons. What were doing right now is we are testing and evaluating those prototypes, and well continue to determine not only the design, but whats best per some of the other sticular part of te border, because it will be different. We need a full tool kit. Madam secretary, the president made it clear in that meeting that one of the conditions for his assent or agreement to protect daca was 20 billion so he could build this wall in one year. The fate of john and alejandra lies in the balance here. The president is insisting on something that is physically, legally impossible as a conditrtju him to give them a chance to be here in the United States legally. Now, youve seen because you commented on it on fox news the proposal which senator graham and i as well as four other senators have made on a bipartisan basis, and youve rejected it. You said at one point, i believe, that let me see the quote here theres nothing here that would prevent us from getting here again. Are you aware the fact that included in this proposal is the entire request of the administration for Border Security in this fiscal year, 1. 6 billion for fences and another billion dollars for technology, exactly what you asked for . If you dont believe this is going to solve the problem, which is what you said on fox news, why did the administration request it in the first place . Well, sir, thats not all we requested, as you know. We also requested to close the loopholes that serve as the pull factors that continue to exacerbate the problem. I cannot apprehend if i cannot remove. Thats not Border Security. Let me add, the first meeting we had last week we agreed and greed there would be two phases to this conversation. The first immediately to deal with the daca challenge and the three other elements the including Border Security, sir. Including Border Security. Every penny that you asked for. And then the president said phase two goes into comprehensive Immigration Reform, many of the issues which you described as musthaves. We understand that. To put the entire burden of Immigration Reform on the shoulders of these Daca Recipients is fundamentally unfair, not practical and jeopardizes their future and their lives. What were trying to do is an honest, bipartisan approach to deal with the first phase of this, and you have rejected it. I thank you for your passion. I hope you understand mine. I cannot agree to a deal that does not give the tools and resources to the men and women of department of Homeland Security to do the job you have asked them to do. We gave you every penny you asked for sir, its not the pennies, it is closing the loopholes. Can we cut back on some of this money . We could sure use it. We need the wall too. The wall works. As you know, its part of bnrder security. Thank you, mr. Chairman. Senator stuart that was a very enlightening appearance by kirsten nielsen, the Homeland Security secretary, being questioned by senator dick durbin. At issue to start with was the language which the president had used in that immigration meeting, which is close on a week ago. Let me sum it up. Ms. Nielsens response was i did not hear that word used. That word being shole, i guess right, right. Stuart thats the vulgarity. I repeat. As nielsen said, i did not hear that word used. Then they went on to a discussion of the wall. Pretty good, ive got to say. She pushed back very well. Stuart i think ms. Nielsen pushed back extremely well against a somewhat angry dick durbin. All right, thats politics. Now money. Still looking good. The dow industrials are up 153 points. Okay, we had been well up over 200 points, but we did hit 26k. We have come down just a little. Oh, look whos here, the man of the hour. c [laughter] hes actually been forecasting this. His name is charles payne. He has a show on this network called making money with charles payne. You know, everyones tweeting they want me to sing. [laughter] ill wait until dow 30,000. We did the singing bit, and weve been taking off ever since. Stuart it was on tape, by the way. Now, several people on this show this morning have said this is the start of another leg up, that 2018 will see us move even higher than 26k. Youre in line with that. I am. Stuart okay. How high are we going . I dont know. I dont know. But as long as the fundamentals continue to improve, it justifies the market going higher, and im convinced that the fundamentals will continue to improve for this year, next year and possibly longer. General motors said as much, by the way, this morning. They gave their guidance for two years out. Very rare. Stuart yeah, that is rare. And looking good for two years out. Right. Stuart a hot of our viewers are going to be nervous because you think you cant keep on like this. So selling half your investment, so you still let some of it ride, but yo]c protected your initial investment. Is there something wrong with that . Yeah, theres a couple things wrong with that. I always say you sell based on why you bought. If you bought to be a trader, sell like a trader. If you bought to be a longterm investor, be a longterm investor. Also my biggesten concern is when people sell, they dont know when to get in. So youll sell ibm at 160, and a year or six months from now its 188 or 190, you dont know, they get stuck. And thats what happens. If they just ride it out, understanding there will be some volatility, therell be a few bumps in the road, i think thats a better strategy for most of our viewers. Stuart still going up, right . Absolutely. Stuart youve been there right from the get go. Thanks a lot. Stuart thank you, charles, good stuff. I want to stay on the markets and bring in deroy murdock, National Review online editor. Now, this is a political kind of guy [laughter] but im going to ask you a market question. Guilty as charged. Stuart youre a politician. [laughter] you see that rally . Thats a gung ho rally. Wonderful. Stuart why does donald trump, our president , why doesnt he get any credit . Why isnt the media covering it . Nowhere in the new yorkc times on the front page at least is there any mention of whats going on . He doesnt get credit for the good things which is increasing 401 k values, increasing bonuses, increasing human happiness. If people can pay their bills, theyre usually happy and not grumbling. And yet he takes the blame when you had this false report of this incoming Nuclear Missile in hawaii. People saying its Donald Trumps fault. He gets blamed for things for which he has no connection and gets no credit for which he deserves a lot of credit. Stuart it makes me angry, quite frankly. Makes me angry too. Stuart i come on the show this morning, we know were going to get 26,000 on the dow, we know its history, and i pick up the papers, even the Financial Times does not mention it on the front page. Its remarkable. And, look, there are both palpable and ethereal reasons. Stuart what are you, some kind of intellectual here . [laughter] from time to time, occasionally. Sometimes even in the mornings. [laughter] things like the tax cuts and deregulation, of course, but i think one of the things that really has hoped this market is tone. We heard from barack obama you didnt build that, youre onecf those wealthy 1 , capitalists are ruining this place. Donald trump comes in and all of a sudden hes saying we look to you to lead our country, please build jobs, were proud of you, do a great job, and suddenly people dont feel as be their moneys jeopardized, they feel more comfortable investing and expanding operations, and that improved tone is one of the reasons the economys booming right now. Stuart real fast, you say the president the democrats are not the president s friend. Yes. Stuart but he needs them to get 60 votes in the senate. He can negotiate with them, but i think he needs to remember all the time, i describe them as basically human wiretaps. If theres a democrat in the room, he better assume theyre going to run out and say anything off color, unusual, mildly inappropriate. He has to assume if he sees a democrat in the room, its like having cspan or a fox news camera in there. Stuart nice touch. [laughter] delaware roy more box deroy murdock, thanks for joining us. A Government Shutdown may come at midnight friday. Joining us now, chris stirewalt, fox News Politics editor. Chris, i issued forth a rant at the top of the hour uhoh. Stuart yeah, i did, ic did. I went there, i did it. [laughter] i said, look, shut the government down. Thats the only way youre going to get a deal on immigration and pentagon spending, shut it down. Crack some heads together. Make get a resolution here. What say you . Government shutdown is sort of like renting a lake house. [laughter] you dont know what its going to be like until you get there. You dont know whos going to get along. You dont know whether its going to be a good trip or not. In every case, every president since current modern budgeting era began in the 1970s, every president has had Government Shutdowns to deal with, and you dont quite know how its going to play until you get there. Democrats believe they will be the least disadvantaged, republicans believe they might be the least disadvantaged, and i just think this is one of those moments where theyre going to have to touch the hot stove to figure out before they believe what the consequences might be. Stuart exactly. I dont know how it plays out. I dont know who gets the blame, whether its democrats or republicans or the president. And you know what . I dont care. Because in the National Interest, fixing immigration anc fixing military spending are the two key issues which we have really got to get resolved. What do you say . Well, and also theres just this, this is a hideous way to run a government. We have been falling apart in terms of the regular order of the boring things that the government must execute each year. Its really been since 2007 since weve had a real budget or any sort of a normal process. So weve had a lost decade when it comes to doing whats supposed to be the ordinary work. And its not just the budget, and its not just the military, but its also patching obamacare. This relates to Childrens Health insurance, this relates all of these other things that have to get done, and what a nincompoop government that cant do ordinary work in an ordinary fashion. Stuart well said. Chris, sorry to cut this short, but weve got a huge day in money i feel it. Stuart stirewalt, youre all right. Thanks for joining us, sir. You bet. Stuart look at general motors. Theyre looking down the road, two years down the road, actually, and they forecast higher profits next year when its rebound its rebound line of highc pickup trucks hit the market. Up 7 this calendar year. Profit more than doubled at United Health, driven by a onetime tax gain because of the tax code overhaul. The stock is up over 2 . Now this, last week we shared the story of a couple High School Students making 100,000 mowing lawns. In a few minutes, were joined by the founder of that company. He is 17 years old. But first, Arizona Senate candidate kelly ward, shes releasing an ad hitting back at jeff flake and martha mcsally, youll see the ad right here, and shes next. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. 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Its important to learn all you can. To help protect yourself from a stroke. Talk to your doctor about xarelto®. Theres more to know™. Stuart four democrats say they plan to boycott President Trumps state of the union address. John lewis, Maxine Waters and frederica wilson. Wilson says she will skip the speech because of the president s reported vulgar comments last week. Senator jeff flake plans to compare the president to josef stalin. In a peach on the Senate Floor Speech on the senate floor tomorrow. Roll tape. He borrowed that phrase, it was popularized by josef stalin, used by mao as well, enemy of the people. It should be noted that nikita khrushchev, who folloge stalin, forbade its use saying that was too loaded, that it maligned a whole group or class of people, and it shouldnt be done. I dont think that we should be using a phrase thats been rejected as too loaded by a soviet dictator. Stuart well, kelly ward, who is running for jeff flakes seat, shes released a campaign ad on the subject. Roll tape. The number continues to rise. Heinous crimes committed by illegals who were protected by obamas daca program. Rape, murder, two young girls killed in a deadly hit and run. This is why President Trump has demanded congressional action. So how are some arizona leaders planning to protect us . By rewarding illegal behavior. Martha mcsally and jeff flake both supported obamas illegal daca program. Both are ready to grant amnesty to nearly 800,000 illegals. Stuart all right. Senate candidate for arizona kelly ward joins us now. Are you fully onboard with the line on all the issues . Well, you know, i am onboard for the America First agenda which is stopping illegal immigration, building the wall, securing our border, getting rid of obamacare, lowering taxes, making America First trade policies, decreasing spending, government. So as long as donald trump is onboard with that agenda, i, of course, am 100 behind him. Stuart whats senator flakes standing in arizona at the moment . Hes made a strong stand. He doesnt get along with president , doesnt agree with his policies. Whats his standing in your state . Last count he was at about 18 approval. So his brand of politics, the brand of politics of never trump and attacking the president and supporting daca and ill legal immigration, is not flying with arizonans. Martha mcsally is jeff flake 2. 0. Say one thing on the campaign trail, do Something Else in washington d. C. Stuart Stuart Martha mcsally sang the national anthemc just the other night, i think it was. Turned in a pretty good performance s. That a campaign plus for her . Im not going to share the audio, but go ahead, comment on her singing talent, because it looked pretty good. Yeah, i mean, good for her. We dont need a good singer, we dont need a past Fighter Pilot in washington, we need problem solvers or in washington d. C. We need trained healers in washington d. C. And as a physician, you know, my entire life has been about taking complex issues, breaking them down into manageable parts and then putting them forward to get good outcomes. Thats what i did in the Arizona State senate, thats what ill do in the United States senate. Stuart okay. What the president wants is build the wall, stop chain migration and stop the lottery. In return, i believe hes prepared to accept that dreamers stay. You comfortable with that deal if that was the deal that emerged . Well, first and foremost, we must secure the border. We have to learn from our past mistakes. President reagan said that his biggest regret was granting amnesty and then Trusting Congress to deliver on Border Security. c it didnt happen then, and it wont happen now, so we have to, first, fund and build the wall before we start any permanent discussion, you know, discussion of a permanent solution for the daca population that barack obama created with his unconstitutional executive order. Stuart but you cant get that without democrat support. Well, i mean, i think you can, and i think that democrats have to admit that Border Security is very important. Weve seen statistic after statistic released recently about illegal alien crime. Weve got to stop it. Stater stuart theyre not going to accept, so would you shut the government down . Everything has to be on the table. Of course, i want to shrink government altogether, which is one of the reasons im running. Not just respond to these democratcreated crises that they tend to bring up again and again and again when they try to force their liberal Progressive Agenda down our throats. We are going to fund our military, fund our essential government services, and, you know, were not going to exchange it for amnesty for a population of;h sjut to a milln people. Stuart all right, we hear you. Kelli ward, thanks for being on the show. Thanks, stu. Stuart okay. Boeing, oh, that stocks on a tear. Its up another 4 today, that addsto the dow industrials because boeing is a dow stock. How about casino stocks . Wynn and mgm, both of them up. Morgan stanley says wynn is its top casino pick and mgm is its second pick. As i said, both up. Next, the teen who started a lawn mowing business and made 100,000 in a year doing it. He is next, and hes 17 years old. Love that guy. [laughter] my business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. Personalize it with beautiful images. And. Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. Stuart our next guest is a high school student, and hes making, i mean, big money with a lawn mowing business. Which he started with a friend. Come on in, r. J. Duart, the ceo and founder of green works. Okay, r. J. , we just told our viewers that you made 100,000 in one year. Is that true . Thats, like, a gross number. We worked kind of all summer and all year to make that, but, yeah. Stuart okay. So that was your gross revenues. How many other High School Kids did you employ for your business . At one point during the summer when we were at our peak we had 14 kids on one day, but typically we run about five or six full time. Stuart when did you start this . I started mowing lawns when i was 8 years old. Stuart and . And i just kindc of grew it from there, you know, as i kept going, it turned into more and more and then, you know, in 2012 i brought on a business partner, owen johnson, and then in 2015 we won the Young Americans Bank Business award, and its just kind of gone up and up from there ever since. Stuart would you describe yourself as a capitalist . I, i would describe myself more as an opportunist. [laughter] stuart excellent. There were really no other kids in my neighborhood mowing lawns, so i kind of looked where no one was going, and i did that. Stuart oh, so you are a monopolist as well. [laughter] what do you think about politics now . Im not going to ask you who you might vote for. Do you believe in spreading it around, fairness, fair shares paid by all, or do you believe in profit, make it, accumulate it, keep it, use it, make your money grow . Which side of the fence are you on . Really, you know, were out there to make money for everybody, and theres never been, like, a bottomc line wee looking to get to. Its always just were out there to go out and help people and try to do better in our community and show the community that, you know, we as young people can work really hard. Stuart okay. But, look, accumulate wealth [laughter] make it and keep it, and then its liquid freedom. Youre sitting on capital, liquid freedom. Its good. Liquid freedom. Stuart liquid freedom come on. Which college are you going to go to . Im looking at Colorado State university in fort collins. Stuart thats okay. As long as you dont tell me its berkeley, im fine with that. [laughter] its not berkeley. Stuart you come on back, because we like youngsters like you. Youve got a brain on your head. Well done, r. J. , well see you again spoon. Thank you, sir. Thank you. Good man. Good young man. Stuart hell get there. [laughter] amazon, hiring 2,500 fulltime employees at a new Fulfillment Center in dallas, texas. Amazon has about a dozen warehouses in texas, four in the dallas area alone. Dallas and austin are among the cities trying tc land amazons second headquarters. Look at that stock, up 14. More varney after this. Stuart happening shortly, the president meets, President Trump meets the president of kazakhstan. They have a meeting in oaf office. What is the capital of kazakhstan . That would be astana. Put that in your pipe and smoke it. Stuart he is right. 15 seconds to neil cavuto. I will tell you this, the market rally stand. Were up 155 points. See what im giving you neil, it is yours. Neil im giving awe new new jersey governor sworn in a few minutes. Phil murphy going after your wallet. Wants to impose a tax on rich guys like you. He plans to detail that in his inaugural address. Chris christie is history after eight years. The garden state has democrat in charge, full run of the table, controlling both houses phil murphy sees no indication that he has to slow down on a plan that might be damagingn