Transcripts For FBC Varney Company 20180208

Let us seek to build a more just and Peaceful World where every child can grow up without violence, worship without fear and reach their godgiving potential. As long as we are true to americas founding and the example that all of these great founders have set, we can all be heros to everybody and they can be heros to us as long as we open our eyes to gods grace and open our hearts to gods love, then america will be the land of the free and the home of the brave and the light onto all nations. [applause] thank you for this incredible event and to our wonderful hosts and thank you to all of our heros for serving, protecting and inspiring america each and every day, god bless you and god bless america. Thank you very much. Thank you. [applause] stuart President Trump right there, a religious speech, he quoted matthew in speaking to steve scalise, he used jesus name and the theme of short speech was faith is central to American Life and liberty. Now this, lets get on with the show, lets get on with whats happening in the markets, could it be calming down . Wouldnt that be nice. You cant yet say its back to normal but you can say the panic level has come down several notches and so to of the wild swing. We will open in the morning flat to higher, maybe sharply higher. Thats a fairly strong move, up in the very early going. So relax, although we have to say we have no idea how this market will close at 4 00 oclock eastern. Now the government, they are going to be spending a whole lot more money, the senate agrees to budget deal that raise military spending and social spending by 131 billion and theyve raised the Borrowing Limit for a whole year, say goodbye to any thought of austerity, in the house nancy pelosi took the hour for eight years, she wanted the dreamers to be part of the budget deal. It did not happen. Two points here, the economy is about to get another dose of stimulus from all the extra Government Spending, from the tax cuts and maybe from infrastructure too, growth should very strong, but the deficit is going straight up. It may be a trillion dollars a year by 2019, the words death bomb will return. Lots to cover today. Wait till you see twitter stock and wait till you hear the latest on hillary and uranium and obama and the fbi. Varney company is about to begin. All night as i was saying blessed by the pope in honor of my mother, i thought, should we say the rosary on the floor . Im reminded of my own grandson, his name is antonio from guatemala,i wish i had brown skin like antonio. Stuart protest the lack of protection for young undocumented immigrants. Come on in republican from utah, congressman, that was impassion speech, whats your take away . Gosh, you know, it turns out that if you talk for eight hours not everything that you say is brilliant. I guess any time nancy pelosi is out representing the Democratic Party to america i think thats good for republicans, i really do. I hope she does it every week. Stuart youre terrible, sir, you really are terrible. Look, youve got march the fifth, thats the deadline for a deal on daca, i dont know whether we get a deal or not but what happens if we dont . Well, i think that we will which is a little bit ironic about mrs. Pelosis actions yesterday. She spent the entire time on daca. We we wanted to solve that for months, frankly longer than that. I think we are going to get a deal probably next week in the senate and in the house shortly after that and its a very generous deal. We go from 700,000 kids young adult that is we protect, the president has supported 1. 8 million but you cant do that and not say, well, we are not going to protect our southern border, we are not going to look at visa lottery. Makes no sense who is coming to our country and they said abilities rather than lottery and frankly the chain migration where you bring aunts, uncles, let us only be immediate family. Stuart we will be back to you in just a second. Now, the market, again, dare i say this, seems to be calming down, dangerous ground. Very dangerous ground. Brian brendberg business profess ohor professor at Kings College is with us. I dont think this is going to calm down. 2018 is going to be a choppy year because we are trying to unwind low Interest Rates for nine years, thats going to be hard for investors to swallow. I think its going to chop up, i think its still going to be a bullish market but its going to be volatile this year, nobody in the history of the world has ever done this before, this Monetary Policy trying to unwind here in europe and asia, thats a huge experiment, very unknown. Stuart you say we are going to chop up, that means we could continue to go up and establish new highs beyond the 26,600 we reached . Yeah, i think we are going to chop up, but, look, its uncertain, stuart, its uncertain. Ashley foundation isnt it there . We have a good economy in the United States, a good global economy, tax cuts in this country, Companies Spending more money, all of that its going to be tough on the market, unpredictable but the economy and foundation is strong. Stuart you think that the stock market could accommodate a 3 or better yield on the 10year treasury, you do . We are talking about 3 here, people. I understand weve had several years where that has been sort of that is not particularly high Interest Rate for a healthy market, lets think longer term. Stuart i said we are calming down, brendberg says relax, we are going to be up about 180 points at the opening bell. Now this, weve got the twoyear budget deal from the senate an includes an extra 300 billion in Government Spending, congressman Chris Stewart still with us. We will be back to trillion dollar a year deficits by 2019, 2020, you republicans, you are now big spenders, sir. Yeah, you know, this isnt good. The reason i ran in 2012 was because of our debt and our spending and its interesting, i hold a town hall then and everybody knew the answer, 1. 4, we cant go back to those days and yet at the same time im so conflicted, you know, i was an air force pilot. When i was flying we had 156 fighter pilots, we have 57 today. Protecting our military, protecting our National Security but balance that you cant ignore the fact that this debt bomb that youre talking about, we have to do better than that. Stuart i have to say that republicans have abandoned austerity. At this point i have to wonder. We are not going to get everything that we want, we get that, i understand that. But you cant turn away from a trillion dollar deficit and just say thats okay. We are going to have a trillion dollar deficit next year and say thats okay too. We have to do better than that. The key is what paul wants to do. You have to look at entitlement reform. You dont fix the problem if you dont look at entitlement reform. Stuart you, sir, are going to step on third rail of american politics and that, sir, is the true. Always a pleasure. Thank you, stuart. Stuart lets get back to that market, how are we going to open up thursday morning, 30 minutes to go and we will be up today up over 100 points in dow industrials. Now this, we have twitters financial results, 12 increase in daily users from a year ago, watch that stock go up 25 premarket, that could be the stock of the day. Tesla says its making progress, making progress in overcoming production trouble with model 3. Okay, the stock down premarket. Whats the story here, emac, why is it down . They are still having problems with model 3, they havent posted a profit yet. They posted a loss this year that was three times the prior year loss but here is elon musk to your point, remember, he sent a roadster on the rocket ship and you were saying is this a setup for whats coming. If we can send a roadster we can probably solve model 3 production. Ashley i dont know. Liz dont look at the losses behind the curtain, look at what theyre doing. The cash flow is pulling him back to earth. Model 3 production, he wants 5,000 model 3s by the end of the second quarter, they only made 1500. He wants 5,000 a week, they only made 1500 last year. Thats the issue. Stuart the market does not reflect what looks like a string of negative. We will track it when it opens. New plan from ll bean, they want to start selling you their clothes at a big discount, there is a catch, the clothes will have sensors sown into them so they can track. [laughter] stuart now serious stuff, fbi informant telling senate that russians paid millions, thats the uranium one deal. Judge napolitano coming right after. I think there are some ways to help keep you on track. And closer to home. Im all ears. How did edward jones grow to a trillion dollars in assets under care . Thanks. By thinking about your goals as much as you do. Stuart as i said, relax, we are going to open higher, triple digit higher on the dow industrials this thursday morning, relax. Okay. An fbi informant connected to the uranium one controversy made allegations against the clintons in written testimony to congress all rise judge napolitano is here. Sort it out for us, tell us a timeline and a plot line . So theres an application before the federal government to permit a Company Owned by the kremlin to acquire substantial portion of uranium mine in utah, the application requires the approval of certain government officials among whom is foremost among whom is the secretary of state. The secretary of state was Hillary Clinton, at the same time this application was made, the russians in the kremlin who tried to acquire and succeeded in acquiring uranium mine played 3 million to a pr firm that gave 3 million worth of free pr to the Clinton Foundation. Stuart so its russian money, goes to an american lobbying firm. Correct. Stuart goes to Clinton Foundation. Not cash because that would be too obvious. Stuart Clinton Foundation, substance subsequently the uranium one, they are giving 20 of americas uranium that russians went through, thats it. Correct, was that a bribe is the question . Has the fbi with Law Enforcement mentality, stuart, not political mentality, not a hillary is better trump for president mentality but here is the law, was it broken invested this, we dont know the answer to that. Stuart okay, but we raised the question, yes, we will. Yes. Stuart newly released text message several of them between peter strzok and lisa page, this raises questions about president obamas statement that he was not involved in discussing fbi and Justice Department investigations, watch this. Check out my 9 30 meeting on the seventh peter strzok text today page, i can tell you why youre having the meeting, its not what you think, said page, talking points for comey, question mark, that was what peter strzok asked, then page says, yes, because potus, president of the United States wants to know everything we are doing. So wait a second, president obama says no, he never asked the fbi about any investigation, later page says the president , obama wants to know everything. This says more about the character of obama than unlawfullness because he told Chris Wallace in no uncertain terms, i do not speak to the attorney general, i do not speak to the director of the fbi, i do not speak to anyone about individual investigations, now we have two fbi people, a lawyer and an agent and says the potus wants to know everything. Is it a crime that potus wants to know everything, no, hes entitled to know everything. Is it a crime for him to lie to Chris Wallace, no, thats why it says more about his character than it does about any lawfullness, he we wanted to mislead chris, which maybe he didnt because chris is so smart, misled everybody that was listening to the conversation, so at the time he says to chris, i dont talk to them, he knew everything that was going on. Why . Stuart you answer the question. This was during the campaign that these events happened. Stuart would you agree that a year ago it was trump and russia, today its clinton, uranium, russia, obama and the fbi . Yes, its even worse, we now know that president obama communicated with mrs. Clinton on her private server. How could he have not have known it was private server, the email address that he typed in did not show a state department or government email address, if they exchanged classified materials, hes exposed to the same prosecution for espionage that she was exonerated for and should be reexamined about. Stuart is this whole thing exploding . It truly is, stuart, in a way that we could never have imagined. Stuart if hillary had won he wouldnt know anything about this, nothing. Correct, the lawlessness in the government, the staggering, the way people in the government violate the laws, they have sworn to uphold, you know i have been talking about this for years, now its its available for anybody to see. Stuart all right, judge, calm down, we will see you at the 11 00 oclock hour. [laughter] stuart good stuff, appreciate it. How about this one . New study published in the journal, Wealth Redistribution is the key to solving Global Warming. More varney after this. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. He gets the best deal on the Perfect Hotel by using. Tripadvisor thats because tripadvisor lets you start your trip on the right foot. By comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. Saving you up to 30 youll be bathing in savings tripadvisor. Check the latest reviews and lowest prices. Stuart well, look at this, cvs, they have a store in every corner in florida and they will get a big nice increase in profits because of the tax overhaul, the stock reflects that, up nearly 3 premarket, its going up. Paper published in the journal, science calls for the journal nature, i think its called nature, got it. They call for global Wealth Redistribution, thats their way to fight Global Warming, what do you have to say brendberg . Classic arrogance of the environmental left. What they say in the article between the lines is the developing world wont be able to develop the level that we are at where they can create technologies and innovation that is provide for clean energy, its actually a slam against the developing world. You can want do what we have done, here is our answer, we are going to take our money and giver it to you. Stuart if we did give them hundreds and billions of dollars, trillions, in fact, would it help . It would do the same thing that redistribution always does, does not create world or cleaner world. Look, the best Clean Technologies are coming from the wealthiest places because you have the knowledge and the resources to advance. Thats the answer, but the experts on the environmental left dont like that. It takes them out of the equation. The Global Warming scientists, they want to keep getting federal government grants. Thats what i think. Completely selfserving. Ashley a lot of money is being spent of areas that need help but goes into the pockets of corrupt people, look at the countries in africa, its so frustrating. Let growth and opportunity rule the way and to brians point, if you do that you can come up with a solution that benefit it is entire world. Stuart i think we nailed that one. Liz i think we did. Moving on. Stuart market opens in four minutes time, we will be there, meantime i tell you we are going up, maybe triple digits, but not the up and downs and seesaw in the last couple of days, we will be back. female vo breaking news from washington as lawmakers; male vo raging wildfires continue to scorch parts; male vo allegations of misconduct; oh, why you look so sad, the tears are in your eyes, mvo how hard is it just to take some time out of your day to give him a ride to school and show him you support him. And dont be ashamed to cry, let me see you through, cause ive seen the dark side too. When the night falls on you, you dont know what to do, mvo when disaster strikes to one, we all get together and support each other. Thats the nature of humanity. Ill stand by you, wont let nobody hurt you. Ill stand by you, so if youre mad, get mad, dont hold it all inside, come on and talk to me now. Hey, what you got to hide . Mvo its a calling to the nation of how great we are and how great we can be. Im alive like you. When youre standing at the cross roads, and dont know which path to choose, let me come along, cause even if youre wrong ill stand by you. Ill stand by you. Wont let nobody hurt you. Ill stand by you. Even in your darkest hour, and i will never desert you. Ill stand by you. Stuart you know, ive been telling people to relax, we are not going to have the ups and downs. Ashley tell yourself to relax. Stuart i should struck myself out because i dont know whats going to happen in the market today, it could return to ups and downs wild swings. At the opening bell it looks like a pretty good gain. We will find out now because it is 9 30 eastern time, the market just opened and we are off running and we are up 4 points. Now we are down 8 points. Down 7 points. Down 5 points. Down dead flat. So we have opened pretty much flat, the futures suggested a gain of 100 points. Now give it time, after 30 seconds of business we are down 30 points. 24,854. That is not a wild swing, im defending myself here. Ashley yes, you are. Stuart step in and help me. We are down 23 points,. 1 . How about the s p . Where is that going this morning . Let me tell you, it is up. 02 . I mean, thats virtually dead flat absolutely. Now, the nasdaq, thats a different story, the nasdaq is up nearly a quarter percent, 15 points. Well above 7,000. Okay, here is another important mark that has been very important for the week, thats that one. 2. 87 on the tenyear treasury, yield is up. That caused the problem earlier in the week, we are higher now at 287, lets see how the market moves on. Tesla, elon musk says, they are making progress building the model 3. The stock is down a buck, down 70 cents, 344. Now twitter, now theres a story, they reported i dont know did they report the first net profit . Thats right. But year over year their daily active user rate went up 12 , thats why the stock is way up this morning. Look at that. Thats a breakout. Who is with me . Who wants to do ashley webster, Elizabeth Mcdonald and Brian Brendberg and scott martin, scott, would you say the worst is over . For the next few days probably, stuart, unfortunately theres still a lot of things unwinding under the surface, we talked a lot about volatility et if he recollects that are etfs that are out there and got exposed to some volatility crash and meltdown that we have seen. For the next few days i think the market will calm down, i still feel that theres a tremor or two out there because of the unwind that needs to happen. Stuart hold on a second. You told me that you expect market to break out and establish new high this is year, say it again. Brian underlying economy is so strong, i think we will continue to move up unless the fed blows it. If the fed blows it and i know thats a buzzard word, but you will see more volatility like we have seen in the last few days. Stuart scott, you dont intend to buy anything given outlook for unwinding of difficult positions, youre not buying anything at the moment . So what we have done, stuart, we bought some stuff on tuesday, we bought stuff on monday frankly as well on the close and right now we are kind of just hanging tight because as more research as we have done we looked deeper into the volatility trades and some of the funds that are out there, stuart, frankly are not being talked loudly right now, i just want to wait. I agree with superman, i mean, brendberg that we will see the chopup over the year because we have so many tail wins in the market. Stuart down 50, 60 points on 24,800, thats where we are. I have to refer to budget deal thats moving through congress, a, it is highly stimulative. That raises concerns about the deficit. Scott, you have to be worried about trillion dollar deficit two years down the road because thats where we are headed. Yes, i tell you this much, i was more worried about these deficits when the economy wasnt growing, when wages werent growing, oh, my goodness, we had the great economy on our doorstep and everybody was freaking out. That was the time frankly to worry about debt, you know, debt is not a great four letter word to say on tv, i can think of a lot worse ones but debt is only bad if the economy doesnt grow, a lot of way that is we are going to see, i think, the economy develop in the next few years with policy and momentum we have here are going to help alleviate some of the pressure that is the pileon debt would typically provide us. Stuart okay. Down 100. There we are down 109, 115, 116. Okay. Ashley youre out on a limb, arent you . [laughter] was it something i said . Stuart down 120 points. Look, thats half percentage point down. Look at some individual stocks, start up with tesla, are they going to be profitable this year . Liz well, thats what musk keeps saying, they have never been profitable in annual basis. We are in a deeper level of hell than we expected, we got overconfident about the need to ramp up battery production. You have to get more lowerend, lowercost model 3s out on the road. Hes got a lot of ideas, he needs to execute. Ashley dont we all. Stuart 347 on tesla. Liz cash flow is coming in. Im just looking at it right now. Stuart look at twitter, first net profit and as i said many times this morning, the year on year growth for daily active users is 12 , very solid number. Scott, this is a real turnaround, isnt it . Finally. I mean, gosh, twitter what took you so long, they had so many opportunities in the last several quarters and what was the boom for social media to turn things around and they havent. If you look at twitter today, it looks great, if you look at it over the last couple of years, it hasnt been so good. This is an opportunity for folks if theyve in the name, get out. Brian i agree with scott, twitter has been down for so long, they get a little bit of news, you see the stock pop. I dont see the longterm story like facebook. Do i think scott is probably right, this is the time to take your gains. Ashley monthly user, they lost a million, the good news to that is internationally its starting to rise and huge market out there around the world and if they can tap into that and get that going, who knows. Stuart they have a pretty good spokesperson as in President Trump. Liz longer character tweets. Stuart we are down 104 points as we speak. Almost half percentage point. Then we have cvs, profit getting nice boost from tax overhaul. Actually down 30 cents. Sales ot yum brands falling short, they also own kfc, the stock is down 30 cents at 79. Kellogg better sales, up nearly 2 . Tyson foods nearly tripled this because of tax overhaul. The tax is up 4, 5 . Big gains. Digital subscriptions continue to grow. 24 bucks a share, viacomm cut costs, its making money, exploring a merger with cbs. Owns paramount pictures, mtv, viacomm up 11 this morning. Cabled tv networks, parent of this network, higher costs relate today sports programming and releases that weighed on the operating profit and the stock is virtually unchanged at 36. Amazon introducing free twohour delivery from whole food stores to prime members in four cities, austin, dallas, cincinnati and virginia beach. Is that big news . They are taking on walmart, getting more data on what the highend neighborhoods spend on. Ashley uber drivers for amazon, take it to homes over the people who place the orders, fascinating. Brian you get it in two hours, no cost, two hours. Salmon and cucumber sandwiches in two hours. Stuart this was a real shock when i read this, the United Arab Emirates from texas. This is the world turned upside down. Brian by 2029 net exporter to the world, more exports than imports. This is historically significant for the United States, a sign of strength in the u. S. Economy and by the way we talk about cleaner forms of energy, back to the nature story, fracking technology. Liz its fracking technology. Watch what exxon mobile is now saying, its exciting stuff. You know how they are going to spend 50 billion in the u. S. , twothirds of that is towards fracking wells, oil and gas development, so twothirds is going to be spent finding the you know, high hydrolic fracking. Its a Technology Story which cracked open the u. S. Oil boom. Stuart political story, american dominance in the Worlds Energy market. Ashley less reliance on a troubled part of the world. Stuart america produces more oil than saudi arabia. I think we should note that and delighting it. [laughter] stuart look at gold, relatively flat despite market, its 13. 18 per ounce right now. Scott, you wouldnt touch gold with tenfoot pole, would you . No, gold is not behaving right. Its supposed to be the safe haven. Risk of a buzzard here. There you go. Thank you very much, predicted. Its supposed i asked for it. Its suppose today act like things in your portfolio, not suppose to act like bonds or stocks, guess what investors its acting like both therefore not valuable right now. Stuart we have to be careful with the buzzard, a lot of viewers in california that are just getting up. Ashley now they are up. Stuart in hawaii they are still asleep. [laughter] stuart i have to say thank you to brian and scott, thank you very much, indeed. Where are we now . We are ten minutes, 11 minutes into the session and we are down exactly 100 points. Seattle, its got a plan to fix its homelessness problem. It is installing spike topped chainlinked fences to keep the home lus homeless out. Former governor Mike Huckabee reacts to breakfast speech this morning, how is President Trump doing from a spiritual standpoint, we will ask the governor next. Today were out here to test peoples knowledge about type 2 diabetes. So you have type 2 diabetes . Yes i do. True or false. Type 2 diabetes more than doubles your chance of dying from a cardiovascular event, like a heart attack or a stroke. That cant be true, can it . Actually, it is true. And with Heart Disease, your risk is even higher. In fact, cardiovascular disease is the 1 cause of death for adults with type 2 diabetes and Heart Disease. But there is good news. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease and lower your a1c. Thats good to know. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. Isnt it time to talk to your doctor about jardiance . Absolutely. Ask your doctor about jardiance. And get to the heart of what matters. 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 are down 13 minutes into the session, we are down almost exactly a half percentage point. Not quite the panic ups an downs in the last few days but down triple digits, nonetheless. Dunkin donuts getting rid of foam cup. Nicole your foam cup from today will be in the landfill 500 years from now, so it is a move obviously to be more efficient and they are moving to paper cups, will keep hot drink just as hot as this goes from the theme from Dunkin Donuts and other companies and no artificial dies and being more energy efficient. Stuart its still good coffee. Good stuff. President trump he kind of reached out to iran trying to negotiate to release of prisoners, what happened . Ashley well, thats the basis of a report out there saying at least two or maybe three occasions now the administration has reached out to tehran to talk about a potential prisoner swap, at least four americans are in iranian detention by some accounts a dozen iranians in u. S. Detention, so the idea of a prisoner swap thats been put out there but reportedly iran has not even responded to one of those approaches. They dont like President Trump because President Trump has been very critical of the Uranium Nuclear deal, dont forget that president obama swapped 7 iranians for 4 dual National Americans plus 400 million in cash remember that back in 2016, mr. Trump was very critical of that and hes being, of course, a big critic of the nuclear deal. So bottom line is, behind the scenes, they are trying to get prisoner swap done and twhirran saying, not interested. Stuart got it. The president speaking at National Prayer breakfast, roll tape. Faith is central to American Life and to liberty. Stuart he said it right in front of speech, former arkansas governor and 2016 president ial candidate Mike Huckabee is with us now. Whats your take on this president s i hate to use performance, but that was a spiritual speech, how do you rank it . Well, i think he recognizes that at the heart of true liberty is religious liberty. If people arent free to believe what they want to believe and if the government can put a limit on what we believe or how we believe or how we practice, then we are not free at all. We are not free in any area. Freedom of speech is taken away, freedom of association is taken away and thats why when the founders created the bill of rights, the first thing they mention was the freedom of religion, not freedom from, but the freedom of and thats very important and this president recognizes that and he campaigned on it and delivered on it and thats why you see such strong support from the Spiritual Community for President Trump. Stuart governor, i know many christians who believe that President Trump is direct instrument of god to fix america and fix the world, flu that camp, sir . Im a little hesitant to ever try to equate a political leader with god. I think thats a dangers place to go to be honest with you. I think god uses people, he uses people that love him and he uses people that dont. God is a pastor friend of mine said years ago, god can hit a straight lick with a crooked stick, god is not dependent upon us, we are dependent upon him. Im hesitant to say, well, this human person is the instrument. He may be an instrument, one of many, but never the only one, thats a dangerous place to go for any of us. Stuart i did notice right up front of his presentation this morning he quoted from the book of mark when he was speaking to mr. Scalise and he also used jesus name and its been a long time since i heard a president of the United States use that word jesus. Well, thats refreshing, this is a president who is unafraid to speak very clearly and boldly. I think its one of the reasons that a lot of evangelicals and frankly catholics have appreciated him for his prolife position. Prayer breakfasts, lets face it, they are not typically i guess memorable for what someone says. I can think of two examples where that where that wasnt true, mother theresa looked at clinton and spoke about santity of life and the other was not so pleasant, when president obama told christians to get off their high horse, whatever thats supposed to mean, im thinking, gee, i know christians who are going out and delivering water to people who dont have it. I know christians who are doing extraordinary things of sacrifice and service, thats not a high horse. I didnt have a clue what he was talking about. I thought it was ridiculous and condescending statement. Stuart governor, we appreciate your perspective. Thanks for being with us this morning. Always, thank you, stu. Ashley down 200 points. Stuart we are down 200 points on the big board. 206 to be precise. Now, i said at the beginning to have show, relax, maybe the worst is over, well, we are down significantly. Ive got 26 of the dow 30 on the downside, ive got three winners among the dow 30 stocks. Got it. We are down. Would you give up some of your privacy for cheaper pair of duck boots . Im not entirely joking here. Ll bean comes the answer to that is yes, we will explain it in full after this. If youve been diagnosed with cancer, searching for answers may feel overwhelming. So start your search with our teams of specialists at Cancer Treatment centers of america. The evolution of cancer care is here. Learn more at cancercenter. Com experts 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. Stuart Big Technology stocks, mixed picture, most of them are down, only apple is up and they are only a fraction. Facebook, amazon, microsoft, alphabet on the downside, not much but down. Look at makeup, higher profit, Strong Demand on makeup, the stock is up 12 . Ll bean considering selling clothe that is can track you, they will offer you a discount if you buy these clothes but you buy them and they can track you. Come on in steve hilton, here he is. Steve, im beginning to get a little concern here. You buy clothes from ll bean and they track you where you are. You have a phone from google. They know where you are and what youre buying, im getting big brotherrish, dont you think . You are completely right. By the way, thanks very much by the buzzard, out in california that really did wake me up. [laughter] we appreciate that. Stuart okay. So youre completely right about this. When i first saw the story, i assumed that this was they were doing something to try to help you, maybe track your fitness, how far you walk, no, its about helping them. They want to be able to sell you more stuff and the problem with all of this is that its just yet another thing that can be hacked whether thats by the chinese government, our own government or russians or whoever else, literally everyone these days get hacked. They can give you whatever promise they want about privacy but you know they cant keep it because everything gets hacked. Stuart its not just the possibility of being hacked, its the knowledge that somewhere theres every single thing about you on some computer all brought together with a total picture of who you are and what youre doing. It is big brother, whether you argue or not, you have the sense of being looked that and i dont like that. I completely agree with you. People call it surveillance capitalism and thats a really good term. Thats what it is, its everywhere, theres really no good reason for it. Thats the underlying point. If there was some massive benefit that you could trade off against this creepy surveillance, maybe we will consider it. Stuart i dont see what you can do about it either. I have to have this thing, i just have to have it, i dont see how you cannot be tracked by somebody everywhere you go. Last word to you. Exactly right. I think well, here is one way of avoiding some of the tracking, i dont have a phone, stuart, i havent had a phone for six years, google with creepy phone tracking, they cant get ahold of me, im not going to be buying anything from ll bean if they will track me all over the place. Consumers can actually start revolt against, this consumer revolution against surveillance capitalism, thats what we need. Stuart thats news steve hilton, steve hilton almost off the grid. [laughter] stuart okay, steve hilton, you are all right, we watch your show which is called the next revolution can steve hilton, 9 00 p. M. Eastern on the fox news channel. Steve, thank you very much, indeed. All right, we have two evolving scandals, one involving president obama, the other involving the Clinton Foundation, we will deal with both of them at the top of the coming hour. Look at market, we are down just 96 points, relax. [laughter] stuart we will be back. Stuart the democrats were sure hillary would win but she lost and some of the things that were never supposed to see the light of day are now seeing the light of day. An fbi informant, douglas campbell, told three congressional committees the russians paid 3 million to ininfluence Hillary Clinton on uranium deal. This is the alleged chain. Russian money goes to american lobbying firm which provides help to the Clinton Foundation which pushes the uranium deal, which is signed and gives russia 20 of americas uranium. This story broke overnight. Hillary clinton says its a distraction. There is a separate development in the scandal at fbi. President obamas name has now been brought into it. Before the election the former president told fox, categorically, that he had not talked to the fbi or the Justice Department about any investigation. But now, another text has emerged from fbis lisa page. Here it is. Potus, that is potus wants to know everything were doing. That is the president of the United States wants to know everything were doing. That would be president barack obama. A year ago, if hillary had won, it would have been all about trump and russia. You wouldnt have heard a word about the Clinton Foundation or the fbi. But she lost and yes, a year ago it was still all about trump and russia but now its hillary and russians and president obama and the fbi. Politics really is an ugly business these days. The second hour of Varney Company is about to begin. Stuart i want to know what is the latest on mortgage rates. They have been going up. Ashley they continue to do so. Standing at 4. 32 on a 30year freddie mac. Stuart a big jump. Ashley in house of industry, lack of inventory, prices are going up. Harder for firsttime home buyers to get in. Ashley it was 4. 22 last week. Up a 10th of a percent. 4. 32. Stuart couple weeks we were down about 3. 9. Ashley he were. Rising Interest Rates. Great for the banks. Stuart the big tech stocks, same story we brought you ten minutes ago, facebook, amazon, microsoft, alphabet down. Apple is up just a fraction just there at 160. Stock of the day, twitter reports first profit and 12 increase in daily active users from a year ago. That thing is up 23 . Grubhub, food delivery service, record high. Announcing a partnership with yum brands. Investors really like that. Grubhub is up 27 . That is a nice move. Viacom, cutting costs, making money. Exploring a merger with cvs. Viacom owns paramount pictures, nickelodeon, mtv. Investors love this one. Tesla, more production troubles with model 3. Well get into it a little bit later. The stock is down 2 . 338 on tesla. Here is david dietze, chief investment strategist for point view wealth management. Can we relax . Is it over . The panic is gone and done . Every time people tell me a little correction is healthy i am so skeptical. No one a longer term bull on the product activity of the American Economy and what our country was going to do, any pullback is healthy was not enough to get rid of that speculative froth. Some people went through the windshield. We know there is a lot of speculation out there. Are we done with inflationary scares, are we done with higher Interest Rates . I dont think so. Stuart were not done with some of the panic selling. Well not go back to new highs, is that what youre saying . Of course well go back to new highs. Well have to retest the new lows. I want someone to say that was unhealthy correction. Then im full bore in. Stuart you think we to down to 23,000, 22,000 at some point . We wont go down to 10,000. Stuart this expression, we have to explain to our viewers. Test the low. Okay, the low i think was what, 23,000 and change. Exactly. Stuart you think well go back below that . Yeah, because we havent had a real correction if we go back to that low. Weve had a nine year bull market. It ends and there is 8 interruption and now back to another nine year bull market . Stocks dont work that way. The economy is great. We have a lot of valuation in these stocks. Well have higher Interest Rates. Inflationary scares, keep the seatbelts fastened. Stuart youre killing me, dietz. I went own the air this morning relax everybody, were done with the up and downswings. Dietz says no were not. You expect to go down in the immediate future what are you buying . Anything . Absolutely. My top pick right here, i know it is contrarian, general electric. Stuart what . 13th Largest Company in the forbes 500. It is bigger than microsoft in terms of revenue. Twice as high as facebook. If it was accorded same valuation as peer 3m you would have to 70dollar stock. Stuart an analyst in my ear, Deutsche Bank says it will go down to 13 a share. You want to change your mind . No, i dont. That makes me more bullish. All analysts have been wrong on this stock for years now. Stuart okay. Shall i move on to tesla . Yes. Stuart elon musk says theyre making progress with the model 3, production thereof. He says tesla will be profitable sometime this year. Are you buying that . I am not buying that. Im so tired of those speculative dreams and losing money year in, year out. The new field will not be electric cars but Autonomous Cars. Recent studies show tesla is way behind the field. Ford, gm, google in terms of developing the autonomous car. That is what you have to be looking for. Tesla doesnt rank up. Stuart is, deets, well test the lows, you love ge and you hate tesla. Can i sum it up like that . That was a fine interview, young man. Much obliged to you. Knew this this is fascinating. Goldman sachs says most of these cryptocurrencies like about it coin to be worthless havently, however our next guest is into the Technology Behind bitcoin. That technology is blockchain. Special guest on the program today. Bridget van colington right pronunciation . Senior Vice President of ibm. You are involved in ibms blockchain project. As i understand it you will create a lab for Blockchain Technology and how you can apply blockchain for real life. Is that what youre up to . 18 months ago we stood up business driving blockchain for our clients. Ibm if you think about our company, helps our clients use innovative economy to make business work better. The Technology Behind brit coin basically is shared ledger where multiple patients in an exchange have an immutable record which is able to change over time with the contract t can be seen instantly. Because it is immutable it can be trusted between many parties and also permission so only people see what you want them to see. The Business Model implications are huge. Stuart give me an example how you at ibm could use Blockchain Technology, nothing to do with crypt toe currencies. How do you apply it to real life so i can understand this. There are many, many use cases and investments we stood up for blockchain but some fantastically powerful once, for instance the joint venture we announced a couple weeksing a with maersk. Global shipping supply chain, 9 of the foods we use come through that. It is 8 trillion a year. 15 of costs are paperwork that go between individual parties which put in a blockchain can essentially be eliminated. Which means we can accelerate trade an many more can participate. Stuart hold on. Ill trying to get to grips with this. You have a partnership with mersk. Theyre a big shipping company. Yes. Stuart some you merge blockchain into the supply chain is not the word to oust, put it on blockchain, totally private, nobody can hack it . Permission to see it we at ibm recognize part of this is Building Technology that enterprises can run on. Permissioned only those in the blockchain can see it. It is secure because we put it on ibm secure cloud. That sort pa of the investment were making so an enterprise can count on the technology. Stuart how much money are you putting into the blockchain venture, not with maersk . You know about our Strategic Imperatives we transform ibm for the new era. It is one of our major investments. Stuart how much . Can you tell me . A large amount of money. Investment were making for maersk. Stuart is it billions . Ibm spends 6 billion every year on research. Were pulling our research. Youre pulling our Software Development into it. It is one of our major ccs for investment. If you think about it, impact for the world is huge. Food safety, food trust. It take as week to recall a food product. Blockchain with the work that weve done with wall mart and group of Consumer Companies they can get a recall and track the food in two seconds. Half a Million People get sick a year. 460,000 people die, sorry. Stuart i am impressed. I think were all impressed. Well listen very carefully. Would you be insulted if i were to say ibm is ibm is old tech and you are not going to take that personally. [laughter] stuart ibm is old tech and you and your blockchain division, youre doing your best to make it new tech, that rue . I would say that ibm is absolutely not old tech. We have been transforming for every era of technology for the last 100 years. This is the newest one. What is the transformation . Mobile, big data, Artificial Intelligence and cloud, all of those are part of portfolio transformation that is driven for ibm. That is very new tech. Stuart you have a slight accent. Mind if i guess. Youre absolutely brilliant. Glad you didnt say i was australian. Stuart bridget, thank you very much. We enjoyed it. Hope you come back. Thanks very much, maam. Thank you. Stuart Senate Leaders reach a budget deal. It would mean a trillion dollar deficit within a couple of years. How does Newt Gingrich feel about that . Remember he balanced the budget back in the 199s. He got some help doing it of course. Nancy pelosis eighthour marathon on the floor of the house. She wants the dreamers to stay. Did she make any difference . Were asking that question. Youre watching the second hour of Varney Company. And this, the Philadelphia Eagles victory parade starts in less than an hour i believe. More than two Million People expected to attend. The five hour, five mile extravaganza. Philly fans known to be a little rowdy. Were watching it for you. You dont have to be there. Well be there for you. Ecurities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with td ameritrade. Stuart breaking news, nancy pelosi, top democrat in the house says she is going to vote no on the budget deal. She liked the product, the budget. She didnt like the process, how you got to yes. Got it. Lets check the big board. Still down a little over triple digits, down 124 points, 24,700. Some individual stocks are moving. Strangely cvs is down a buck despite the fact they got a lot of cash because of the tack overhaul. That is cvs. A lot of individual stocks really moving today. There is clearly a deep state. An fbi informant connected to the iranian deal made written allegations to congress that the russians paid 3 million to influence hillary and the deal. Those Text Messages between fbi lovers suggest president obama wanted to be in the know in the russia investigation. Newt gingrich is with us. The author of that book, gnatting trump. Newt, welcome to the program. Understanding trump. The uranium one deal, douglas campbell, take me through it. What are the implications here . The implications are very real. This was also a deal where millions of dollars going to the Clinton Foundation. Bill clinton was going to moscow to give a speech for 500,000. The whole thing from the beginning looked really terrible and was terrible. All this is unraveling. The things youre describing, my First Campaign was during watergate. Every day i get up and something new would unravel. Could you never figure out what was going to happen next. So if we had sat around a year ago and said, it is going to turn out that comey was developing a briefing for president obama because he wanted to quote, know everything . We would have thought that was inconceivable. And i went back and i got howard bakers quote from 1973, what did the president know and when did know it . This whole thing is just going to keep opening up into more and more pieces. Stuart it is watergate style, isnt it . I hate to make a comparison is it bigger than watergate . It is different than watergate. Look, watergate was a handful of people who did some really dumb things centered around president nixon and, in the end they all left office. A number of them went to jail. This starts with senior people in the fbi, senior people in the Justice Department. Apparently some people in the state department based on what story yesterday. I mean, this is the deep state. This is not a handful of people in politics in the white house. This is the deep state but what were now beginning to be told is that maybe president obama knew about it, supported it, sent signals it was okay, maybe it puts back into a new question what attorney general lynch was saying on the airplane to former president bill clinton when they met the week that his wife was going to be interviewed which now looks more and more phony. Since apparently comey began writing the explanation why they werent going to prosecute her two months before he interviewed her . All of this just looks like the fix was in and the bureaucracy had frankly been corrupted. Stuart i think you used the right word, newt, that is unraveling before our very eyes. I want to talk to but the budget deal that has gone through the senate t would vastly increase Government Spending. Virtually no Government Spending cuts. It will lead us towards trillion dollar deficits again in a couple of years. Seems like the Republican Party has abandoned austerity. What do you say . Well, first of all i hope we have abandoned austerity. I was a reagankemp republican. Our model in the 1980sas masse Economic Growth, not austerity. 1990s i helped largest mpany tall gain tax cut in histor we had a huge boom you remember in the late 90s. We combined that with real reform. It was combination of reforming welfare, reforming medicare, opening up the communication system, reforming the food and drug administration. Plus the huge tax cut which led to dramatic increase in revenue and stable stabilization not a big decline but stabilization in spending. What republican want to do to get to a balanced budget number one is Economic Growth. Put enough people to work, number of Companies Making a profit, enough people incomes growing with greater productivity, you get a big stream of extra revenue. We need large reforms. Stuart yes. For example, workforce improvement which will save tens of billions. Stuart you have to have Social Security reform. You have got to have medicare reform. That training the treasury as we speak but that is the third rail of american politics. And i dont know i want stuart go ahead, sir. Let me just disagree with you. If i were the Republican Party, i would say well not touch Social Security which is earned entitlement. Were not going to touch veterans which is earned entitlement. Well not touch medicare which people paid into the whole life. That means you can reform disabilities you can reform medicaid. You can certainly go after fraud in medicare which may yield 100 billion a year. I mean there is, there is smart things you could do and as you point out earlier, i did help balance la the budget for four straight years. I think we could have a smart approach over next two years to getting to a balanced budget. Just look what happened with the launch of the falcon heavy which was a remarkable rocket launch and recovery by a private sector entrepreneur who did it for about 1 20th of what people thought it would cost the government to do it. There are lots of ways we can take cost out of system. Stuart okay. I think that ought to be our approach. Stuart we should talk more about that. Newt gingrich. Come back and see us some time. That is very important point. Appreciate it, newt. Good stuff. Now we can all disappoint our parents at some point, yes, we can. Yes, we have. But not always caught on camera. Well going to explain the Details Behind the video you are watching. Oh. Well be back. Hi, im the internet you know whats difficult . Armless bowling. Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Stuart were down triple digits seesaw were used to. 24,737. Look at this, one of the countrys Top High School Football Players seemed to go against his moms wishes when he announced his College Decision at a news conference. It is jacob copeland. His mother was wearing a alabama sweatshirt, but copeland picked university of florida. She walked out of the news consequence. Ashley see ya. Stuart copeland wanted to go with his heart and not with his mom. She later came back. Ashley he said that is my mom. She is one of they hugged. Stuart embarrassed the poor kid. Liz he said i never been as stressed about this i cried and cried about my decision. I felt badly about the mom. She came back and hugged. Stuart she did. Fans lining streets of philadelphia. Waiting the start of eagles victory parade. They expect two Million People to attend. The parade starts near the team stadium. It ends after five miles at famous rocky steps. You know the movie. Eagles brought home the championship for the first time ever. Looked like you want to say something, liz . Liz you did. Ashley i rather watch it at home. I dont want to be where there are two Million People. God bless them. Hopefully they dont break anything. Stuart next case, more varney after this. Stuart 24,600. That is a sudden drop. Just in the last after hour. Down 239. The big tech names, all of them down except apple which is up just a fraction. Still shy of 160 a share. Better sales at kellogg, the cereal company. Tyson foods, profits nearly tripled because of tax cuts. Really helped them. Tyson foods up 10 . How about ge, down again today. Deutsche bank says it will go down to 13 a share. Earlier david dietze said buy it. Deutsche bank says it is going down. Boeing reportedly in talks to buy Aerospace Partsmaker woodward. Woodward is up. Boeing is down. Not much. 343 on boeing right now. Still on market. Jim ricketts is with us. Is this the correction pace, the panic phase, we saw earlier this week, is it over . No. There is major headwind, stuart, which is the debt situation. Not all debt is created equal. Were at 105 debttogdp ratio. Stuart youre talking about the National Debt . U. S. National debt. Another trillion of debt because of tax cuts. You will not get growth, gang of four, steve forbes, steve moore, art laffer, larry kudlow, good guys. I know three out of four of them. Were to the getting that kind of growth. Were past diminishing marginal returns. Stuart what youre saying is, the deficit is going up, maybe a trillion dollars in a couple of years. More like two. Stuart in two years. That is a debt bomb. It explodes at some point and market realizes that, before we get there and well selloff is that your bond market is very forward leaning. The bond market already sees this. The stock market is going down because Interest Rates are going up. Theyre not going up because of inflatio there is not much inflati on the landscape. Concn about debt, more isance. Theed is burning money. Thk of the furce in fed, theyr destroying money reducing Balance Sheet. Impact of balance she had reduction is greater than rate hikes. Theyre both both. This is unprecedented. Stuart that is real problem for the market. The market will sell off when that hits. Gold, has not done much despite the turmoil but you say . This is the third gold bull market in my lifetime. 1971 to 1980. Gold went up 2,000 . 1999 to 2011. Gold went up 650 . We had terrible bear market from 2011 to 2015. The new bull market started decent 2015. It is up 30 . It has a long way to go. Daily volatility up and down but fold goes up a lot higher. Stuart what is the single big reason gold goes a lot higher from 1315 where it is now . The thing we talked about which is the debt bomb. The debt will cause people to lose confidence in the u. S. Dollar. U. S. Will never default. Well print the money. Has implications for inflation. That takes gold up. This is two sides of the same coin. Stuart what about bitcoin . That would be, youre laughing, i dont know why youre laughing. Goldman sachs says crip cocurrencies going to zeros. Bitcoin has a case for 200 a coin. Bitcoin going to 200, staying there. That is where it was before the bubble started. Stuart i would have thought if youre saying we have a debt crisis coming, stock market goes down, gold will go up, i would have thought you say say things like bitcoin would be nice alternative investment. Things like bitcoin but not bitcoin. Like your prior guest, Vice President of ibm. They will own the space. These will dominate the block chains. Forget the coins. Forget ether. Watch the blockchain permission. That is the key word your guest used permission. That is how you get trust. Instead of clunky math problems. Costs me 50 to send you 60 of bitcoin not a good deal for me. Bitcoin is dead end as currency. Speculative bubble, were off the top. Going down to 200. Blockchain, ledger technology, that is the future. Stuart fascinating stuff. You covered a lot of ground in about three minutes. We kind of like that. Jim, thanks a lot. We appreciate it. Very interesting. Liz really interesting. Stuart former Vice President joe biden says the democrats will take the house back. Roll tape. I tell you what, tell you what though, i have committed and i mean it, i will, i plan on spending all the time any one of you want me to making sure we win back the house. [cheers and applause] not a joke. Not a joke. Stuart look who is here, david bossie, Citizens United president. Gop kind of guy and a trump supporter to boot. Now, joe biden says the democrats will retake the house. If you look at current polls, they got really good shot at doing exactly that. Are you going to take offense at that . Oh i dont think theyre going to be able to take back the house because the economy is on the rise. Stuart, i think we all know with the president s tax cut and tax growth plan he is just implemented well see by november allamericans being more prosperous than they are today, more money in their pocket, and a future that is brighter for all americans. I think thats what theyre going to be seeing when theyre going into the ballot box. I think we have a very good chance. Dont get me wrong, there is lot of historical trend that go in the direction of democrats but they still offer no, no plan for the economy. Our National Defense or any other issue the American People care about, youre basing whole theory here on its the economy, stupid. Thats what this is all about. Youre saying that the economy and its success will sort of outmanuever mr. Trumps unpopularity and go ahead. Stuart, its a couple of things. One, i put a lot on the economy and i believe that in the cycle that were about to enter with a gdp that is strong, with unemployment low, with the tax cuts coming into effect. Now over 300 Companies Giving their employees raises, bonuses, matching to their 401 k s. I think that is going to explode over this year but we also see a strong forwardleaning Foreign Policy that the American People want. The rebuilding of our military, to keep america safe and secure at home and abroad. I think that is another issue. Look the democrats offer nothing but hate. They only hate this president. Quite honestly they hate this president more than they love this country and thats fundamental flaw that i think will catch up to them in november. Stuart david bossie, forcefully putting his opinion right there. We appreciate that. David, much obliged. Thanks, stuart. Stuart Germanys Angela Merkel has reached a deal on a Coalition Government but theres a lot of skepticism about her future and the future of the very weak and Shaky Coalition she has put together. John bolton is with us, former u. N. Ambassador to the united nations. John, this is all because Angela Merkel opened the doors to a million socalled refugees and changed europe forever. She is paying the price, isnt she . Well she is, but dont count her out. She is amazing political survivor. To me what is fascinating about this coalition i see no reason whatever why the social democrats agreed to go into it. I think this is the path to a real defeat for their party in the next election. Merkel may benefit because of this miscalculation by the socialists but the underlying problems caused by some of merkels immigration decisions arent going away. In fact across europe reaction against this unchecked influx of immigrants i think continues to rise. Stuart might see that in the italian elections coming up soon as well. Possibly. Stuart i have to turn to north korea. Held a big military parade on eve of the wint olympics held in the south korea. Kim jonguns younger sister is going. She will not talk with Vice President pence. Do you believe in it . Not a bit of it. This is pure propaganda by the north koreans. They played this very well. Theyre good at it. The idea of a joint north and south korean team, maybes our heartthrob. I think Vice President pence actually just arrived in south korea to head the u. S. Delegation for the opening ceremony. Has a very did he cat, difficult diplomatic path to show were sticking with south korea and japan but not let north korean propaganda effort dominate. Kim jonguns sister versus mike pence, i vote on mike pence. Stuart the whole thing could blow up easily, couldnt it . Incident like whole bunch of north korean athletes defect, for example or kim jongun test as rocket in the middle of the olympics. All kind of things could really erupt in the next three weeks i think . Possibly but remember north korea has done this before. It is possible some of the athletes will defect. Their families will die if they do. You can count on that. I think what the north is doing here, is trying to throw up a smokes screen as they continue to get ever closer to thible to hit targets in the United States with thermonuclear weapons. They are counting on getting across that finish line before were able to take effective action and this, the olympics is a very convenientlytimed excuse for them to throw up this wave of propaganda. Stuart very interesting. John, thanks for joining us. Glad to be here. Stuart yes, sir. Amazon, there is always a story about amazon. Here is todays. Launching free Grocery Delivery Service from whole foods. What are they doing . Ashley what you can do, basically use the app from home, you place an order. They will be a picker, a staff member who picks up your order, takes it out and drops it off to a flex driver, an amazon flex driver, essentially like a uber driver, who brings it to your home within two hours. Almost all the food within whole foods will be available for this, not all of it but test starting it in four cities including austin, virginia beach, cincinnati. If this goes successfully, which they expect it will, then it will go nationwide. Already amazon has 18 of the Online Grocery business, just by buying whole foods, theyre already 1 5 of their way into this thing. So they continue to spread their tentacles everywhere. Stuart astonishing. Thanks for the story. Ashley yeah, sure. Stuart california congressman john geir menddy, he told me garamendi, he told me yesterday, illegals can not register to vote after getting a drivers license but we heard a chorus of people saying the exact opposite. One of them, a California Republican gubernatorial candidate, will join us in the next hour. First though, nancy pelosi, eighthour marathon on the floor of the house, trying to get daca legislation into the budget deal but did anything actually come of it . Were asking the question. 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Which is a little bit ironic about miss pelosis actions yesterday. She spent entire time talking about daca, a bill she is likely to vote against. There are republicans and democrats who want to solve that. We wanted to solve that for months, frankly longer than that. I think well get a deal probably next week in the senate and in the house shortly after that. It is very generous deal. We go from 700,000 kids or young adults we protect, president has afforded 1. 8 million. But you cant do that not say well not protect the southern border. Well not look at visa lottery. Well make no sense not knowing who will come into our country. Zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. 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 low of the day, i said relax, maybe you shouldnt. Were down 250 at 24,644. 28 of the dow 30 are down. Only two of them, apple and merck, are up. Minority leader nancy pelosi spent eight hours on the floor of the house trying to get the the dreamers included in the budget deal. Didnt work. Roll tape. All night, as i was seeing my blessed by the pope, in honor of my mother, i thought, say rosary on the floor. Im reminded of my own grandson. Had a very close friend, his name is antonio, from guatemala. I wish i had brown skin and brown eyes like antonio. Stuart it was kind of a house version of a filibuster i guess. Oregon congressman greg walden joins us now. Congressman, your reaction to the eighthour speech . I havent checked i bet cspan ratings are down. I know republican numbers are up. She was the at table negotiating the agreement with the other three leaders in the house and senate. You know, well hear from Chris Stewart. Were all committed to resolving security on the border, dealing with the daca issue. I think there is a way to get through there. I was kind of perplexed by it all. It is called the magic minute, went on eight hours. You have to give her her due. She remained on her feet eight hours. Quite impressive. Stuart i dont think i could do it. I know i couldnt. Stuart this morning, nancy pelosi says she is not going to vote for this budget deal. What are the implications of that . The implications are evident to americans when they look why washington is so dysfunctional they now know where to look. We said it for a long time. We want to get things done. Even Chuck Schumer and Mitch Mcconnell got together with paul ryan. Nancy pelosi was at the bargaining table this is a bipartisan, bicameral agreement. Solves a lot of countrys problems. Moves us forward. Not perfect. Clearly other things that should be in or out. We can all argue about that. But this is the same group that voted against Childrens Health insurance. Voted against Community Health centers. All the things they came theyre for, when they get a chance to vote they vote to shut down the government and things that matter. This is coming together. There are things i dont want to swallow, i dont want to but i want to move our country forward. I want to get our work done. That is it what were elected to do. Stuart congressman, hundreds of people protested President Trumps offshore drilling plan, protesting in oregon. The plan to allow drilling all around the coastline. What do you say to that . Bearing in mind that florida objected to offshore drilling and they got their way . There will be no offshore drilling off florida. You know, im, frankly i would say it is a much ado abouting nothing because when you look at the data on the geology, there is probably nothing north of San Francisco for oil and Gas Exploration anyway. I know ryan zinke well. I talked to him. Think oregon es issues will be well understood i bet secretary. When their draft report comes out that will be reflected. People got spun up. Stuart, i try to get the to the facts. That is old journalism to me. Any gas or oil three miles off the coast of oregon or 3 moo miles. Stuart you started off as a journalist. I got a journalism degree from university of oregon and was in radio for 20 years. Stuart you have a great voice. My colleagues say i have a face for radio. Theyre not nice. Stuart makeup is a wonderful thing. Thank you very much for joining us. Thanks, stuart. Stuart you study, lazy and distracted drivers are more dangerous than we thought. Question, does that make the case for selfdriving cars . More varney after this. How do you win at business . Stay at la quinta. Where were changing with stylish makeovers. Then at your next meeting, set your seat height to its maximum level. Bravo, tall meeting man. Start winning today. Book now at lq. Com start winning today. 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. Stuart rain, this is the low of the day down 314 points, one 1 4 . Maybe it is the debt bomb story coming out of this budget deal upsetting the market. Now were down 326. Were on it. Keep an eye on the bottom righthand corner of the screen. Now this, aaa says drowsy drivers play a big role in accidents. Jeff flock is on the road. How big of a deal is this . Its a big deal, stuart, in terms of what aaa did, because the government had said maybe one or 2 of accidents is result of Drowsy Driving. Aaa did a real study where they actually put a camera on the dashboard of the car. They got 3500 people to agree to this. Over threeyear period they looked at peoples faces. They had 700 accidents recorded during that time. Of those 700 accidents, almost 10 of all the accidents the person by looking at their face actually was falling asleep, had their eyes closed. When it came to severe accidents, it was even a higher percentage. This suggests there is a lot more Drowsy Driving out there than we thought, which i dont know, what it makes you think of, but it makes me think of Autonomous Cars. Stuart exactly. People may continue to poopoo the idea, this will never work. If you could hit a button when you get drowsy and somebody else takes over, i mean, Autonomous Cars do not get drowsy. Stuart jeffs youre on to something there. Makes the case for selfdriving cars. Got it. Hold on, jeff, i have to get back to the market. We have another low of the day. Now were down 380 points, falling quite rapidly just in the last hour. Im sorry folks. I went on the air this morning, said relax, maybe the worst is over, maybe calm is turn. I was wrong. Were down 380 points. Liz apple and merck are only ones in the green or in the black right now. Ashley it kind of feeds on itself once it goes past a certain point. Stuart seems like it. Were down 379. There you have it. Republicans who railed against president obama and the debt now running up the debt more. Democrats who doubled the debt encouraging more debt. My take on the Senate Budget deal. More after this. Stuart not quite the low of the day but still way down there. Were off 324 points at 24,566. Its been a down day right from the get go. So there is a budget deal. Two hungs stand out. Two things stand out. Number one, this deal gives the economy a whole lot more juice. It is what we used to call stimulus. It will stimulate the economy to produce even more growth. Got it. Number two, this deal means trillion dollar deficits within a couple of years. You are going to be hearing those words, debt bomb. Thats not good. Lets go through this. The budget deal would raise spending on the mill dare by 165 militarity 165 billion. Thats an extra 300 billion worth of stimulus. Throw in the tax cuts, wage increases and the infrastructure plan and we are chucking a lot of money at an alreadygrowing economy. It is a spending bonanza and will probably produce the kind of boom weve not seen in a generation. But the debt will skyrocket. There is no plan to reform medicare or Social Security, and both are pumping out more money than theyre bringing in. As a nation, we are overspending to the tune of almost 3 billion a day every day. Strong growth will brung more revenue, concern bring more revenue, but were still looking at to mom call debt as far as the eye can see. It is ironic that republicans are running up the debt and ironic, too, that democrats who doubled the debt are encouraging another increase. Truth is there are no votes for austerity. Neither party wants the gravy train to halt. Thats why youll hear those words debt bomb, and at some point it will bite. The third hour of Varney Company is about to begin. Stuart all right. Im sure you heard my commentary on the budget deal and the deficit. I want some more perspective on this. Liz peek is with us, foxnews. Com columnist along with gary caught balm. I know for a fact that you really hate this runup in the deficit. How badly do you hate it . How deep is the ocean and how high is the sky, stuart . Thats the best way i can put it. Let me give you some facts. Schumers bn in washington since 81, mcconne since 8 since that teur debt gone om nrly zero t 21 trillion, headed to 25 trillion, 30 trillion very soon, and thousand theyre running things. And let me give you my laundry list. I know schumer gave his yesterday about this program for two billion net. Listen to these two numbers. Next year the first 400 billion of tax dollars is going towards the interest on the debt that theyve created throughout the years. Not for the poor or the indigent or the highways and the byways and the bridges and the roads, but interest. It goes nowhere, into the toilet. And four years from now that numbers going to be 700 billion. If we continue this trajectory, all they are doing is taunting the economy, taunting markets, taunting the future of not only us, but our kids and our kids kids, and all i can tell you is when i was hearing schumer yesterday say this is a win for the American People, two words came to mind con artist. This is a con game, and nobodys doing anything about it, nobody on the left and, amazingly, nobody on the right. And if anybody on the right does shout, they are shouted down and cant talk anymore. Stuart gary, hold on for one second. Ill be back to you in a moment. Liz peek, were looking at trillion dollar deficits within a couple of years. Thats got to worry you. Yeah. I mean, really what weve seen is a complete reversal of the Investment Climate of the last seven or eight years. We now are looking at rising Interest Rates, an accelerating economy. Not all of that is bad, but certainly the implications for debt and debt service, as gary pointed out, are extremely bad. I mean, we basically went under obama from 12 trillion amazing numbers to 20 trillion in debt, but the debt servicing, the amount of interest paid only bumped up from about 431 billion to 430. So the answer is we didnt see it. No one was really aware of this gigantic increase in the debt. Now that has changed. Yes, were going to be crowding out important programs. Stuart and right now we are down 270 points on the dow industrials, weve only come back a little bit. We were down 330, now were down 270. Do you think thats got something rates are rising, gary, do you think this debt bomb that were talking about, huge deficits, is that a factor in todays market . A little bit. Its been the trajectory of rates going higher, but also the fact we were up 8400 dow points since the election without any correction. So you combine the two and thats why were in the soup right now. And the one thing im watching for is the lows of tuesdays reversal, big reversal day. If they get taken out, this is going to turn into a 1520 drop, and then well reevaluate it from here. And watching the market today and at the close yesterday does not give me any solace right now. Stuart lizzie . Bank of america is warning that the Senate Spending deal will contribute to higher yields on that tenyear. Why . Of course. When you unload a lot of government paper into the markets, youve got to raise yields to get more buyers to buy those government bonds. So the question is at what point when that tenyear hits, is it 4 , 5 , will you not only see a dramatic downturn in the market, but will it wipe out the president s tax cut stimulus . I think another way of saying it is everything that seems good news is, in fact, turning out to be bad news. One of the reasons the market spiked lower is unemployment claims came out at a 45year low which signals an incredibly Strong Economy finish. I just add one thing . Stuart gary, go. I want to add one hinge. The private economy is sizzling, is doing great. The people of this country are working their tails off to do better fun themselves and their families for themselves and their families. The problem is washington d. C. They cant stop raising the bar on how Big Government is and how Big Government intrudes into our lives every day. And the fact that im seeing Mitch Mcconnell yelping and all happy about the fact that theyre raising it again, i dont even know where to begin. Im looking for anybody on the right to do something about it, and they refuse to. Stuart liz peek, a sizzling private sector, a sizzling economy, will that pull the market up at some point . Well, and weve seen that. I mean, thats what the markets been responding to. Earnings are, you know, gangbusters. 20 increase likely in the first quarter, but obviously there is this other side which is that Interest Rates are going up, and that competes with stocks. Now bonds are going to start looking more interesting, etc. Look, theres the only Silver Lining may be if, indeed, the economy continues to accelerate, tax receipts are going to be higher than expected. And, you know, that was a number that a lot of us argued about when the tax bill went through. The democrats, ironically, were talking about how that was too stimulative. But the is the tax the is the tax receipts may be better than expected, so maybe the deficit wont be quite as big as expected. Its a minor Silver Lining, but but they will not keep up with what theyre doing in washington d. C. I agree. 100 certainty tax receipts are going up, plus coming out of the market thats been so strong, the capital gains. But they just cant keep up with what they are doing there. They continue to expand their power base, theyre drunk with our taxpayer dollars, and again, there needs to be some sort of movement to stop them. And i dont know where to start. Stuart before you go completely apoplectic, gary [laughter] im going to thank you, very much. Serenity now. Stuart no, no, im getting back to you. Youre not off the hook yet. Talk to me about goldman sachs. They say cryptocurrencies like bitcoin will eventually be utterly worthless. Now, i know you agree with that, so vent some more, gary. Well, i just think this has been a big bubble, and the coin people went crazy. Theres over 1500 different coins now and counting. And i just ask one simple question, what is the economic value of somebody making up a coin, and i still cant come up with the answer. I think youre seeing the comeuppance. Prices as good as what somebodys willing to pay. Maybe it goes back up a little bit, maybe even a lot, but i just think when all is said and done dust, thats what i think these coins will be. [laughter] stuart gary, thank you very much, indeed. Im sure you had fun today. Thanks, gary. Now this, more people are giving credit to President Trump for the economy. New poll from quinnipiac says 48 credit trump, 41 president obama. This is the first time in this monthly poll that trump has surpassed president obama. All right. Positive economic sign, the number of people filing for Unemployment Benefits dropped last week all the way down to 221,000. Thats it. Thats the lowest level in about 45 years. The number bolstering expectations of faster wage growth this year. Cvs, their profits got a nice boost from the tax overhaul. The stock is down 2. Gotta look into that story. Theyre getting so much more money from the tax break, why is the stock down . Dont know. Sales fall short at yum brands on weak demand for taco bell and pizza chain stuff. They also own kfc. That stock is down but not very much, 60 cents. Boeing in talks, reportedly, to buy the Aerospace Parts maker woodward. Woodward up, boeing down 6. The parade for the philly eagles starting now. Two Million People will be part of a fivehour, fivemile extravaganza. Theyre celebrating phillys first nfl championship since 1960. First super bowl ever, wasnt it . I think so. Yeah. First parade. Stuart they won a championship in 1960. Ill get it. Dont to worry, folks, i know what im talking about. [laughter] thats a live shot of the crowd the parade route. Stuart thank you, the parade route. Oh, its fantastic. Stuart were not going to let the California Voting story out of our sights. The gentleman on your screen, doug, ose, says a new law will allow illegals to register to vote. He will join that intense debate. President trump going to unveil his infrastructure plan on monday. Next up, the held of a Construction Company in the new york area behind the projects were showing on your screen. He says our crumbling infrastructure is bad for business, and this plan is long overdue. Speaker ryan will take the podium in about 20 minutes. We could get news on that Infrastructure Program or the budget deal or the shutdown. All of it. If he brings a headline to us, youll hear it first. [laughter] stuart were pretty close to the low oe day, down 344 points right now. Interest rates appear to be the problem, and this budget deal thats been agreed in the senate will probably raise Interest Rates down the road. The market doesnt like that. Were down 345 as we peek. Now, President Trumps going to unveil the big 1. 5 trillion infrastructure plan on monday, and our next guest is head of a big Construction Company in new york. His name is anthony rinaldi, ceo of the rinaldi group, and he says the current state of infrastructure is bad for business. Give me an example. Well, ill give you an example here in new york alone. Im a member of the American Society of civil engineers, and in 2015 they did a study of the infrastructure in new york state which comprises new york city as well. In new york state, there are 17,450 bridges of which over 50 are 75 years or older stuart well, is that why is that bad for business if the bridges are still functioning . I mean theyre barely functioning. So heres what happens, your bridges start to go, your roadways start to go, theyre in disrepair. All of what we do, all right, we build buildings. Or i have products i have products and deliveries of materials each and every day. If i cant get my materials and cant get my workers to my job sites, my jobs start to go longer, and we dont get the job done when we need to get it done. Stuart does that actually happen . I mean, do you have projects that are delayed because you cant get your workers there on time and you cant get deliveries on time . Is that actually happening . Absolutely. We constantly deal with having to lay out our directions and roads that were traveling to get deliveries. For example, one of the projects that were doing we were getting products from poland. Those were being delivered to the ports in newark, okay . Sizable oversized loads. Those loads gotta go through the highways, roadways, bridges and make their way to the streets of new york city and get to our job site on time and under budget to mountain the schedule and to maintain to maintain the schedule and to maintain our budget with our clients. So if all of those means and methods of getting to our job sites are starting to deteriorate, so shall our projects. Stuart okay. Last time you were on the show you told us how much youve got to pay to licensed crane operators to get them to go to work [laughter] and i think you came in and said it was a half Million Dollars a year for a qualified crane operator to work in new york city. Half million . And i said to you minimum. I said 400,000 minimum. I have a crane operator on a job that i just recently paid over a Million Dollars in a year. Stuart okay. 1 million. Stuart okay. Ill take my breath back. Wow. Stuart listen to this. Nancy pelosi had this to say about the trump infrastructure plan this morning. Roll tape, please. Now, Public Private partnerships were receptive to but not when the goal of the bill is to transfer the taxpayer dollar to the private sector, rejecting a plan that truly invests. What a disappointment, what the president put fort. I would just characterize it as something that privatizes our roads, air Traffic Control and essential infrastructure, creates more costly tolls for commuters and shifts the burdens on to cities and states budget. Stuart she doesnt like privatization. Do you. This is you. Yeah. Stuart do ya . [laughter] listen, i live on it. [laughter] stuart well, i think ms. Pelosi was getting at the idea of you build a road with a Public Private project, and you toll road it. Thats how you pay for it. Right. Stuart you got a problem with that . You know what . I think if they were to privatize infrastructure which they dont i think youd see a lot of changes, and i think youd see a lot of projects come in under budget and on time which doesnt happen at least in our metropolitan area. Stuart thats for sure. Anthony, thanks for joining us. Can i be a crane operator . [laughter] anthony, thank you so much. We appreciate it. Thank you. Thank you, stuart. Stuart all right. Now, weve got a dow thats down 348 points, that is a problem for Interest Rates. Thats the problem there. Were going down, down 350 now. Yeah. Stuart kellogg on your screen right now, better sales at the cereal company, that stock is up nearly 3 . Tyson foods, their profit nearly tripled because of an infusion of extra money from the tax deal, but theyre only up 80 cents at 74 per share. How about this, Sports Illustrated honoring the Metoo Movement in its annual swim suit issue. The photo series called in her own words features models with various words written across their bodies in black marker. The words include natural, human and truth. Mcdonalds releasing an 18carat gold ring called the bling mac. Up next, well tell you how you can possibly get your hands on one of these things. [laughter] but first, youve bot to see this. Got to see this. Instruments made from ice carved from a frozen lake in norway. Up next youll hear them play. You get it all on Varney Company. I dont think they play the beatles. Norwegian ice. Hi, im the internet you know whats difficult . Armless bowling. You got this, jimmy you know whats easy . Building your website with godaddy. Pick a domain name. Choose a design. You can build a website in under an hour. Now thats a strike get your domain today and get a free trial of gocentral. Build a better website in under an hour. I love you. Stuart stock market alert, please. Were down 426 points. Now, were not seeing volatility in the classic sense of up, down, down, up, down, big moves like that. Thats not what were seeing. In fact, what weve seen so far today and the markets been open nearly two hours is pretty much straight down. Its been a gradual straight down movement, and were now down 430 points, 24,450. And thats a one and threequarters percent drop, 3. 74 drop 1. 74 drop. We also have significant drops in the nasdaq composite index, the s p 500, all of them down about 1 or a bit more. So this is a broadbased, continuing selloff. 24,469. Yeah. The vix is now up 9 above 30 again, which the volatility has returned. Youve got a lot of itchy, twitchy investors, and they push the sell button pretty quickly. Stuart okay. I think Interest Rates are the problem. It is. They are, yes. Stuart the twoyear treasury is 2. 8 6. This is the same action we saw happening friday. So, you know, its going to be a rocky ride, i i think, into the close. Stuart could be. We also have weve been talking a lot this morning about this budget deal which will inject an extra 300 billion of Government Spending into the economy in the next two years. That will raise the deficit. Weve been talking today, and weve got experts to confirm it, that we will have a deficit in the neighborhood of a trillion dollars a year starting, what, about two years from now, maybe 2019, maybe 2020. Right. Stuart but that magic number, a trillion dollars worth of spending extra, overspending if you like, at a time when the economys going 3 . Yeah, this stuart trillion dollar deficits in 2008 coming out of crash. Its interesting, the story was last year deflation. Its inflation now. The story is inflation and Interest Rates going up. Stuart but gold is not up. No, not much. Stuart still around 100 an hundreds 1300 an ounce. Yeah. I think youre seeing a rotation out of some of those equities into bonds which actually has the impact of bringing down the yield on the tenyear because money is seeking a safe haven, thats why the yield goes down. Its ironic, really. Stuart thats a good point, because you sell stock, you liberate the cash correct. Stuart you put it, you buy the tenyear treasury, that pushes the price down. Correct. Stuart so the yield goes up. But its the other way around. Stuart its the other way around. Im sorry, i didnt mean to confuse anybody. You sell stock, you liberate the cash, you put it into the tenyear treasury right. Stuart the price goes down no, the price goes up and the yield goes down. The demand is there, the price goes up. Stuart seesaw movement between stocks down and yields down a fraction momentarily thats where the equity moneys going. You dont have to attract money with higher yields if the money is pouring out of stocks. Were still coming to grips stuart were down 453 points now. On your screens, some of the dows biggest losers; walmart down 2 at 100 a share, Johnson Johnson down 2 , cocacola is down 1. 5 , nike down nearly 2 and american express, 1. 7 . Moments ago we had on our screens the Big Technology companies. We focus on them because theyre so important to this economy and for this market. Yeah. Stuart all of them are now down, every single one of them lower. All right, we dare i say stabilize, no, i shouldnt say that because were still down 450 points. A big tech, facebook is back to 176. Its down 3. Amazon is down 27 a share at 1388. Microsoft is down nearly 2 at 87. 74. Alphabet down 22, barely above 1,000, its at 1,033. Apple is just a winner up five cents, up three cents now, maybe itll turn negative. 159 is the price on apple as we speak. And the economy the markets 447 points. Im going to try and bring you as many stocks as we can. Almost all of them are down. Again, apple is the only winner. Not much of a winner at that amongst the Big Technology stocks. And is were now down 442 im sorry, points on the dow. Yep. Stuart i want to bring in russell price, senior economist with ameriprise. Welcome to the show, russell, good to see you, sir. Good morning, stuart. Thanks for having me. Stuart now, im trying to explain this sudden, this decline today in terms of rising Interest Rates. What do you say . Well, certainly the points lost are very large, but on a percentage basis were still within that range of about 510 off of the recent highs, so this is a normal correction. It is right to be a little bit worried about higher Interest Rates. Higher Interest Rates make borrowing costs of consumers and corporations more problematic. They take away some purchasing power. And they take away some of the attractiveness of stocks. So higher Interest Rates and wed expected Interest Rates to be higher this year somewhat, but recent activity as youve been talking about with the budget spending agreement implies that the governments going to be borrowing more, and that should push Interest Rates or pull Interest Rates up a little bit more. Stuart now, do you think that that rise in Interest Rates that we are expecting and youre expecting it, is that going to put a top on the stock is market . In other words, is it not going to recover to its previous highs . Well, by the end of the year we still think its somewhat reasonable to see the stock markets generally higher than where they started the year. We still think its going to be a positive year primarily because corporate profits should continue to do very well, and the Economic Outlook is quite solid also. It really is a story of just how high Interest Rates go and how much pressure we get from inflation. Again, how much of Economic Growth potential is shaved away by just being lost to higher prices in the form of inflation. Stuart well, if thats your brief, that well end the year the market, that is, the stock market higher than the way we started the year, if thats your contention, are you advising people to buy some stock at bargain prices now . Well, we, from our perspective we maintain balanced portfolios. We think in the long run that is really what is the best strategy for longterm investors. And so during these periods we advise investors not to really change their strategies. If they do have Additional Capital on the sideline, maybe they did get a little bit of a bonus from the tax cut that was passed for corporations and maybe their particular company passed on a little additional bonus, then we do think its still appropriate to and reasonable there a risk perspective to add it to the market. Stuart well, apart other than investing in a balanced portfolio as you do, whats your advice to viewers at the moment . Well, we still think that this period of volatility will pass. Right now the market is incorporating the expectation of higher Interest Rates, and i think at the gunning of the year the beginning of the year the market did expect higher Interest Rates, but the speed at which they did jump over, say, the last two weeks took the market off guard a little bit. And certainly the news over the last few days that the government will be seeking to borrow an additional 300 billion over the next two years, thats adding to that fear. Somewhat of a cushion to the Interest Rate outlook, however, though i think is important to note that right now usually Corporate America would be looking to borrow also. And that is still likely to be the case, but corporate Balance Sheets are in such strong condition today that there is less likelihood that theyre going to be pushing the rates higher than they normally would. Stuart all right. So russell price expects the dow the stock prices to be higher at the end of the year than the way they began the year. The voice of calm. All right, russelling thanks for joining us, sir. We appreciate it. On the phone, d. R. Barton, are you also a voice of calm . I mean, were down 466 points now. Whats your advice to viewers . Well, i think there is a very important thing for everyone to understand right now, and that is that we have a period of jittery markets. We would use something that could get a buzzer of the word volatility in the trade, but the markets are just bouncing up and down a bit right now because of some uncertainty. Weve had this 15month run without a 3 pullback, stuart, and now a little bit of downdraft. We are in no danger until we get near tuesdays lows. So nothing to do unless we get near tuesdays lows. Stuart okay. So sit tight, dont move a muscle, dont sell or dont buy whatever it is keep calm, carry on. Stuart keep calm. But a lot of people have told us this market is going to test the low that it hit on tuesday which i believe was somewhere in the 23,000 area. Do you think thats going to happen . I think that is, that is a possibility, but i believe that if we do, stuart, that that will be a bouncing point. You know, right now were getting a lot of people worried about several different things; the Interest Rates which you folks have covered so well and whats going on there. But i believe that some of the calm thats coming from washington and just [audio difficulty] for a second and look at the fundamental picture, how well tax reform is going to be reflected in this market, how well global economies are doing that this is by no means a panic state. Its just the first [audio difficulty] weve had in forever, so everybodys a little spooked. Stuart thanks, d. R. Barton, for joining us on the phone. Mike murphy is with us, i believe, usually whats so nervewracking is when do you buy the dip. Thats the anxiety. When do you step this . Nobody can call a bottom, but a number of names [audio difficulty] stuart were still down about 1. 5 . Mike murphy on the phone. Advice to viewers right now. Let me go further than that. Would you buy the dip . This is a dip, would you buy it . Like we discussed earlier in the week, the advice to viewers is not to panic. There are no good decisions being made by panicking in the market right now. Let the news settle in, but if you see Quality Companies that are trading at a discount due to volatility, you absolutely step in and you buy. Stuart okay. Youve always been a big champion of facebook. Its dropped, i think its down to about 170 and change now, 176 at the moment. Do you buy facebook at 176 . Well, if you remember, i bought it earlier this week. I wouldnt buy here because its only having a pullback of just under 2 on the day, but im watching all the quality names, facebook being right at the top of the list. Im also watching your microsoft. I have all of the banks on a watch list also. The Quality Companies i want to buy because i believe this volatility will settle in. And, remember, nothing fundamentally has changed on these companies in the last week. You have volatility in the market which is bringing some sellers in, but thats creating opportunity. Stuart mike murphy, thanks very much for joining us this morning. Thank you. Stuart the dow industrials are down 361 points. We were down 450 just about ten minutes ago. Im telling you, look at the blue chip names now in correction territory. Were talking stuart thats down 10 . Correct. Chevron, Johnson Johnson, intel, caterpillar. So you talk about buying the dip when, you know, these are some of the names that people i would think would look at. Stuart okay. I want to leave the big board on the screen and bring in Dan Henninger who just happens to be with us at a very opportune moment [laughter] and i say that because the title of his piece today in the wall street journal is the trump panic. But you are not referring [audio difficulty] panic does seem to be in the air, doesnt it . Stuart is subheadline is the elected president was unacceptable and had to be stopped, so they panicked to try to stop him. The fbi. Well, what im writing about, stuart, is in the context of what we now have in washington, dueling memos over the fbis fisa warrant. Ing you had the republican memo last week, question is whether the democratic memo will get released this week. At the center of it is the fbi and the steele dossier they submitted to the fisa court. Why did they submit something as dodgy is as the steele dossier. And i think the explanation is what happened on november 8th, 2016. Two things happened. Donald trump won the election and, secondly, the trump panic began. We all remember the reaction when the runup to the presidency and when trump won, we had friends who thought the world was a totally unacceptable person had become president of the United States. Stuart true. And this view was held remember all those lists of Foreign Policy who said they would never serve in a Trump Administration . The never drum pers, Foreign Policy drum pers, Foreign Policy leaders, they thought trump was unaccepting. And this infected the fbi. Im absolutely convinced it caused them to break professional discipline. All the rest of us can have our opinions about donald trump, but if youre in the fbi, the cia or the military, you separate your politics. And the fbi, at least some of the people in the Washington Headquarters such as peter strzok, andrew mccabe, bruce orr, i think, broke sally yates. Remember when sally yates was the attorney general . She refused to enforce the travel order. She said as long as im attorney general, we are not going to enforce this travel order. What is she talking about . Elliott richardson resigned during watergate rather than enforce a directive from richard nixon. You dont simply say youre refusing to do Something Like that. That was part of the trump panic that had spread through washington among all of these bureaucrats, and thats what caused the fbi to go off the rails with the fisa warrant. Stuart they panicked, and now theyre finding out what they did yeah. Stuart to back up their political opinion. A lot of its emails or texts between peter strzok and liza page. Liza page sent a text to peter the day of the election saying, oh, my god, i am freaking terrified about this election. Or he writes back to her later, oh, my god, im depressed. He was the head of counterintelligence for the fbi involved in the clinton email investigation and then with mueller for the russian meddling. Stuart and she said in a text potus wants to know everything were doing. Yeah. Stuart and the president had previously said hed never talked to the fbi or the Justice Department about investigations. So hes now caught up in this, as you call it, the panic the trump panic. And i think fbi director Christopher Wray has a big job restoring the sense of professional responsibility and discipline inside fbi headquarters. Stuart thanks for being with us, dan, very timely piece right in the middle of a market more panic. Stuart not quite a panic opportunities. Stuart thats interesting. Opportunities. When youve got a selloff like this, were down 348 points, we turn to a guy like Charles Payne who in the past has said, hes salivating at these lower prices because he wants to get in, into a panic, and buy. Yes . Absolutely. Absolutely. I heard you had kevin kelly, i think, a moment ago mike murphy. Mike murphy, rather, and before that d. R. Barton. They both were calm about everything. Barton, i like that he pointed out to the weeks lows. I think thats going to be a number a lot of technicians will watch to see if that holds. I was in transit, unfortunately, from jersey city to here, so i missed a lot of the action. Stuart the bottom line here is that you are not concerned about this dramatic selloff of this week, youre not concerned, you regard it as an opportunity to pick something thats of value thats gone down too far. Absolutely. Absolutely. I went and talked to my office today and said im going to put out a piece called today is yesterday. Stuart okay. Do you know what the premise of that is . Stuart no. How often have people looked at the market and said, oh, man, twitters up 25 , i was going to buy that yesterday. Well, guess what . Yesterday is coming. [laughter] thats the message i want to echo to folks. Yesterday is coming. You missed it. Guess what . Now you have a chance. I do understand the anxiety, and my first full year as a broker was 1987. So imagine this [laughter] this is a lifelong dream. October 19th. And im working hard, im cold calling people, they never heard of me, theyre slamming their phones, im building a little book, and the market crashes. The market crashes. And there dose my lifelong dreams up in smoke in my first year, or so is i thought. Stuart but but . The next month was better, the next month was better than that, and i went on with the markets, and i enjoyed it, a 13year run. So, you know, the problem right now is a lot of people got into this market late. Right. And those are the folks who are getting whip sawed right now because how many people always say im not get anything the market because as soon as i get in guess what . [laughter] goes down. Right. Dont make it a selffulfilling prophesy. If you took a shot on something, well, thats something different. Hes a good man. Hes a great man. Not bad at all. Stuart ill watch your show tonight. Watch it with some notes, bring a pen. [laughter] im going to give a coupling names out tonight. Great. Stuart were going to leave on your screen whats going on with the dow industrials because this is a very sharp decline. Were down 1. 5 , almost 400 points to the downside. Whilst you watch that, lets deal with this the congressman congressman, john gaer moonty, yesterday on this program said illegal aliens, Illegal Immigrants will not be registered to vote under a new law in california. Roll tape. They cannot register to vote. Theres a different system for registering to vote for those who are citizens versus those who get a drivers license that are not citizens, legal or illegal. Thats a fact. Stuart okay. Dramatic statement there from john. I had gone to him saying that a new policy, a new rule in california would allow illegals Voting Rights because they registered to vote as soon as they register to drive a car. Come on in california gubernatorial candidate doug ose. Doug, youve got to get into this discussion here. Can will illegals be able to vote in california under this new proposal . So congressman garamendi needs to come back to california every now and then. The form that is used at the dmv requires selfselection. You have to check a box to say youre an illegal alien. If you dont check that box, you go on the voter rolls, and nobodys allowed to ask you for identification to prove who you are. So congressman garamendi needs to check out how the system works, because we are subject to illegal voting as it stands today. Stuart thank you, sir. Thank you, doug, because i, i missed that interview i did not handle properly because i didnt know the facts. I didnt realize what youve just said. The bottom line im available, im available to come work for you. [laughter] stuart the bottom line is that its not that difficult for illegals to vote in california. To cheat the system. Stuart to cheat the system. In fact, its extremely easy. And at the voting booth, you cant check. Thats correct. And the system was set up this way on purpose by the democrats. Stuart and that will insure a permanent democrat majority in the state of california and will interfere in federal elections like the president ial election where california has 55 Electoral College votes. This, sir, is a disgrace. Go ahead. Thats correct. We have a system here that the democrats put in place, the secretary of state a guy named alex padilla refuses to clear the rolls of ineligible voters or people who have passed away. In some instances we have communities with 140 of registered voters who are on the rolls. This is a mess, it needs to be cleaned up. The democrats own it, were trying to change it. Stuart okay. One more for you. Free education in california. There seems to be a movement to make a serious push for free college. Is it Free Community college for a couple of years paid for by the taxpayer in california . Is that what youre going for . So lets be clear, there is no such thing as free when youre talking about a government program. Somebody has to pay for that. And in this case, what theyre trying to do is shift the cost from themselves to the taxpayers. Theyre missing the point. If you make something free, it loses value. It undermines the interest of children who are in k12 to excel at what theyre doing so that they get admitted into university on merit. There are lots of scholarships available. This is a, this is a very bad policy move. It will undermine the ability to deliver Higher Education for engineers and scientists and doctors. It just this is terrible policy. Stuart okay. Terrible policy. Stuart doug, im almost out of time, and i do apologize for that. Weve got a very active and busy marketplace right now. Thanks for the information, come back and visit soon. Always a pleasure, stuart. Stuart yes, sir. Thank you very much. We have christian mcgoon on the phone commenting on the market. Advice to viewers right now, christian. Yeah, hi, stuart. I think viewers who are longterm investors probably need to stay put. If you have some cash on the sidelines, i think you wait another day or two to potentially deploy that. I think we could see a dow can point drop thats larger than the largest one we saw in history several days ago. Watching the 0year treasury bond here 30year treasury bond here, and as long as that continues to be red, i dont know if weve seen the bottom in equity markets. I think were going to second test here of the bottom in the coming days. For investors, again, who are long term i dont think it makes a huge amount of difference over the next 35 years, but those who are tactical or have cash on the sidelines, i think theres some more bargains to come. Stuart we hear you. I think were getting advice similar to what charles gave us, look for the bargains. And if youre long term, stay in, dont panic. Thats right. Stuart thats the advice, right, charles . Thats it. Stuart all right. Lets get back to politics. This is hard core, actually. Bombshell report on the uranium one deal. An fbi informant gave written testimony to congress that the russians paid 3 million to influence Hillary Clinton on the uranium deal. The money went from russia to an american lobbying firm that provided help to the Clinton Foundation and then the uranium deal was signed. Russia got 20 of our uranium. Doug schoen is with us now, hes a former clinton pollster thats right. Stuart and you worked right in the middle of the Clinton White house. I was. That was 20 years ago. I wasnt involved, mercifully, in this scandal. Stuart does this sound like something that the clintons would be behind . No, the clintons arent behind this. The russians are behind this, and thats the point in this story. Look, the russians felt they could effectively launder 3 million through a Public Affairs firm in washington to influence the Clinton Foundation. Theres no evidence that the influence itself they sought was achieved, but it is clear they had a plot and a plan, and i think that it merits further investigation. Stuart but the clinton the uranium deal was signed. It was. But the nexus that youre hypothesizing has not been shown or proved which is not to say we shouldnt ebbs mother what mr. Campbell explore, what mr. Camp dell, the source, has said, we shouldnt investigate, but so far we dont have evidence that the money that was paid by the russians to the Clinton Foundation influenced hillarys position on uranium one. Stuart the money went from russia to an american lobbying firm, i think its called apco. Thats correct, yes. Stuart they provided not money to the Clinton Foundation, but free services. Correct. Stuart free labor with a view to getting the foundation and the future secretary of state, Hillary Clinton, to giving a nice, favorable view of the uranium deal and other im not sure that last point has been established. But certainly, that was the russians goal stuart you were involved in plausible deniability. No, i think what im trying to do stuart this is plausibly denial. There are no facts to support your final assertion, but it is clear the russians were doing something malevolent, evil and dishonest. Its clear there was complicity of a lobbying firm in activity they shouldnt have been and all im saying is lets investigate, stuart. Lets get to the bottom of it. Lets not rush to judgment. [laughter] im not defending hillary, i didnt support her, the clubtops are not happy with me clintons are not happy with me, but the evidence doesnt support your position. Stuart wait. Why did the Clinton Foundation take so easily this help that came from russia. Because they were taking help from everybody. Stuart and they shouldnt have been suspicious . She was about to become the secretary of state, and shes taking help from the russians . She took the help, come on. No, the foundation did. She was not part of it then. Stuart oh, yes. Plausible deniability. You keep throwing that phrase around, and i dont quite know what it means [laughter] stuart wait a minute. Doug schoen knows the meaning of in this context, i must confess i dont know, but i do know that theres plenty to investigate and that you as a naturalizedded american should [laughter] give the clintons the presumption of innocence in the absence of any facts that show stuart and i will. But im just asking how many times have i had to give the presumption of innocence a lot. Stuart to bill and Hillary Clinton . I could list them. You could. But, again, lets prove it. And if it is proven, i hope there are prosecutions. If, and thats a big if. [laughter] stuart okay. Youre funny, doug. You really are. Im going to florida too. [laughter] stuart there you go. Doug schoen take care. Stuart thank you. Back to the markets. Lets not forget where we are. This is a serious downside move. Were up 330 points now, have been down 450 just moments ago. David barnes on the phone, hes one of our market watchers. Advice to viewers right now, please, david. Well, let me tell you something, stuart, the dow is now down a whopping. 6 on the year. So in the midst of this just kind of crazy week of volatility, you basically have a flat market in the last five weeks. So we have to take it in perspective. The volatility right now is not being driven by fundamentals, nobody thinks it is. A lot of technical factors and pressures that would bore people to pieces to hear about, but ill give you the big fundamental encouragement. Right now Corporate Bond spreads have come in meaning people are so afraid of risk out there that theyre actually taking less compensation on Corporate Strategies than they were a week ago. That doesnt sound to me like a fundamental risk off. Stuart do we have a problem with the debt bomb . This new budget deal in the senate add 300 billion to Government Spending in the next two years, and weve been talking about trillion dollar deficits within two years. Surely that is a factor in the market today. Well, its a factor in the bond market in that the bond yields pushed up to 2. 85 on the tenyear, and as that happens it reallocates and reprices more income or more assets out of equities. Now, is it a real fundamental problem . I think its a political problem. But, of course, we have had these deficits before. Theyre brutal, they have to be dealt with, but we have to have the growth to be able to offset it. Ive said it on your show before and ill repeat, the 300 billion i dont like. I like the military spending, i dont like the rest. But the real issue is entitlements, and we havent been willing to address those for some time. The bond market, look, if the bond market was really, really ready to kind of throw up on all of this, we would not have a tenyear at 2. 85. Good point. Stuart okay. I help you. I dont know about the bond market throwing up, but well leave it at that. David, thank you very much for joining us at short notice. Weve had a modest bounce off the lows, but were still down 320 points as we speak. Headlines from paul ryan. He just said he supports the Senate Budget plan. When asked about the debt he said Economic Growth will help pay for it. He also said an immigration deal will be done separately. Chad pergram, fox news senior capitol hill producer, chad joins us now. Chad, i heard earlier this morning that nancy pelosi will not support the budge thats come out of the the budget thats come out of the senate. Does that make a difference to the progress of the budget in the house . Very possible because the vote mixture in the house of representatives is going to be crucial to get this across the finish line. They dont think thats going to be a problem when they move this in the senate later this afternoon or in the early evening. But youre going to have a number of defections on the republican side of the aisle, members of the conservative Freedom Caucus dont like how this is exploding the debt. This also suspends the debt ceiling through march of 2019. So in order to make up the difference, they have to get democrats onboard and, again, democrats dont want to vote for this, especially liberals, because this doesnt do anything for daca. So pelosi making her stand literally on the house floor for eight hours and seven minutes yesterday, you know, that was her sort of whipping against this bill and indicating that she wasnt going to support it. Kevin mccarthy, the majority leader, however, points out, you know, that she was part of the big four, the negotiation here, so why, if she was at the table, is she working against immaterial. Thats a lot about internal politics with her trying to solidify her position inside the caucus because, you know, people might say, wait a minute, shes going to be 78 years old next month, theres been some push from younger members to get her out. That shows that you have the stamina to still be the leader. Stuart ah, show youve got the stamina when youre 79 years old. I certainly admire that. Chad, thank you very much, indeed. Good stuff, sir. Were down 324 points. Bouncing off the low a little bit around 318. You know, charles, a lot of our market commentators have said the same thing as youve been saying right, right. Stuart 2k0e7b9 panic, were not going to go all the way down to 15,000 or whatever. Stay in there and look for bargains. Repeat that. I do agree 100 . The only thing that im doing right now is trying to see if this is a smoke screen, if theres Something Else we should be looking at, if our attention is being diverted because everyones saying the same thing, right . Maybe. The debt bomb didnt mushroom overnight. We added 10 trillion to the debt stuart hold on a second, hold on, charles. Look, weve been talking on this program this morning i dont know whether anybody else has, but we certainly have about trillion dollar deficits within a couple of years. Now, thats a scary number. Its a scary number, but it didnt emerge last night. All im saying is that we came into President Trumps presidency with 20 trillion in debt. So, you know, everyone knew when Interest Rates went up, servicing that debt would be a problem, perhaps a trillion dollars a year just to service it. But as someone who watches the markets very closely, i get worried when everyones echoing the same reason why its gone down. Of course, we keep hearing bond yields, right . I keep reminding people in 1980 when the market peaked, the yields were 12 . In 2000 the yield was 6 , 2007 yields were 4. A 5 and coming down at that moment, not going up. Historically, 3 yield on a ten tenyear bond should not crush a stock market. Been so low for so long, thats the problem. Theres a complacency issue. Yes. Stuart im worried stiff with an economy on fire, 3, maybe 4 growth, and youve still got a trillion dollar deficit. Well, you need a strong listen to what paul ryan said. You justed had the there. Hes saying that were going to have a strong supply side economics means that you have an amazing economy. That amazing economy grows receipts at the treasury department. Stuart it does. Right. And thats how you pay off the debt rather than kneecapping the economy with higher taxes. In other words stuart im with you. In this scenario, the American Public and corporations come first. They generate the economic opportunities, and that money comes in to this treasury. They make more money in the long run because youre generating greater economic activity. Stuart growth will not balance the budget. Lizzie, youve got dow stocks which are in correction territory, that means down 10 from their high. From their high. Chevron, ge, ibm, merck, exxon, p g, intel, pfizer, caterpillar, 3m, unitedhealth. The sector really getting hit is industrials, so theyre capitalintensive. In a raterise environment, that kind of stings their Balance Sheet and their cash flow. But, you know, ill tell you something, we are back at where we were in mid december, so weve lost about a month and a half of gains. Stuart now, can you tell me the yield on the tenyear treasury . 2. 853. Stuart and actually falling. Yeah. Stuart thats interesting. Again money coming out of equities, going into the bond market. Bond prices go up, yield comes down. To charles point,. Were it trouble. You know, very low. Were in a lot of trouble. Liz it feels like a technical comedown from markets, excuse me, stocks being overvalued. Taking some you could argue last year was the most complacent year ever for the market. Liz no kidding, it doesnt go down 3 . Volatility emerges. Dow down 1100 points. A lot of people not seen that anymore. Regular investors and people on wall street. Liz stay on that just a second. The s p never went down by more than 3 . Anytime last year. We never seen that in the history of markets. Stuart now we are. Making history again, stuart. Stuart im afraid we are. Down 370 points, 4,522. Neil, u. S. Neil were following what is on stocks and bonds and 10year note. At what point would you see and look at relative safety of a 10year treasury note . What would be the trigger point for you . It might have been 2. 87, 278 , from home mortgages to a lot of car loans. Now in that is something that holds here, in order words buying a 10year note at 2. 88, enough to bring it down to 2. 86, you know the the