Transcripts For FBC Varney Company 20240713

Sector, that is a slowdown. One hour from now, well know. Watch that market. Right about the same time, the president will begin his trip to florida, where he will make a speech, i think the title ought to be protecting health care from socialist disruption. Its probably not called that but im making free rein here. Usually when the president leaves the white house, he speaks to reporters. He may address the economy. Whatever he says, youll hear it and it will probably move the markets. Theres news on the president ial campaign. Bernie sanders is recovering from heart surgery and has canceled Campaign Events until further notice. Obviously, there are questions about a 78yearold facing another year of grueling campaigning. Joe biden is taking a hit in the latest polls from his son Hunter Bidens business dealings in ukraine and china. Heres my opinion. Its now Elizabeth Warrens nomination to lose. Heres another opinion. That should worry wall street and it should really worry moderate democrats, too. Watch the day unfold with us. Varney company is about to begin. Stuart weve got some stocks which really should be watched today, very active market coming up. We are going to start with tesla. Premarket its down 4. 5 . Ashley delivered 97,000 vehicles in the third quarter, thats pretty good, but falling short of those estimates stu loves so much. Wall street looking for 99,000. By the way, tesla needs to deliver 105,000 vehicles in the Fourth Quarter to hit elon musks goal of 360,000 to 400,000 vehicles in 2019. But they didnt like the slight miss. Stuart down ten bucks. 232 is where we are. Gopro, falling out of bed, down 18 . Theres a company and a stock we all know. Whats the problem . Susan they lowered their financial targets for the latter half of the year because of production delays in its new hero 8 black camera they just unveiled this week. Stuart they just came out with it. Susan thats right, but they said they cant make them in time and they say its not because they shifted their factories from china to mexico, either. But it will impact their revenue by a few percentage points. So originally they had penciled in 9 to 12 growth in revenue and sales. 6 to 9 . Stuart bed, bath beyond, did you like everybody else receive those blue cards . Ashley yes. Stuart 20 off . Susan everybody gets them. Stuart they do . I thought i was special. Whats the problem . Ashley they are closing more stores. Going to close 60 stores now. After the Holiday Season, into early 2020. They have about 1500 Stores Nationwide and in canada. By the way, the number of announced store closures now stands at 8,600 this year. Analysts say it could hit 12,000 by the end of the year. Last year there were 5900 closings. You can really see the impact. Stuart lets get the big picture here. Its been a really wild week for the dow already. Its off more than 800 points in the last couple of days. That wiped out the summers gains. Theres your chart, up 96 monday, tuesday down 343, wednesday, yesterday, down 494. A look at futures as we head into the opening of the market. We are virtually dead flat. Of course, that may change at 10 00 this morning. There you go. Former reagan economist art laffer joins us now. Give us the big picture. If we are worried about the economy, you tell us, are we going into recession . Your opening monologue exhausted me, stuart. I dont know how i will make it through the day without two or three naps. Oh, my goodness. The economy is in fine shape. Theres nothing wrong with the economy. The policies are all working. Im not worried about the economy. The rest of the world is pulling us down. Thats for sure. But we are the bright light in this world. What really does bother me, i have to tell you because i have been through it so many times personally, is the impeachment process. That is not a good process for economics, thats not a good process for politics, thats not a good process for anything thats american, to be honest with you. I was there in the white house with nixon, i watched with reagan, what happened with the iran contra, i watched what happened with bill clinton. These things are not good for the country. That worries me a lot. Its not economics, i know, but the economy is just fine the way it is if we just leave it out of the politics and get on with the show. Stuart the economy is just fine as it is, leave it as it is, but that was one really big decline or slowdown, i should say, in manufacturing reported on tuesday. What are we going to see about the Services Sector today . If that confirms the manufacturing slowdown, clearly weve got a very much slowing economy. Well, we do have a slower economy, stuart. As i said, the rest of the world is in really deep trouble. The u. S. Is rising above the rest of the world by substantial amounts and thats all you can hope for with good economic policy. You know, we are part of the world. We cant stop that. When china goes down, when europe goes down and all those exports go down, that does hurt the u. S. But as far as economic policies are concerned, as far as the u. S. Performance relative to the rest of the world, we are in fine shape. We are in as good shape as i can imagine us being in. Its just been a great set of policies from this administration and they have kept us from major downturns of the rest of the world. Stuart you can take that nap right now. I hope that answers what can i tell you . We have done a great job here in this country compared to every other country. Stuart that is definitely true. Art, naptime. I will deal with another Economic Indicator right now. Art laffer, thank you very much. Im talking now about the firing rate, the layoff rate. Now, thats normally technically called the firsttime jobless claims. I call it the firing rate. What is it . Ashley just up very marginally at 219,000. I think it shows that the labor markets still very strong even though we know that employers out there are being a lot more cautious with more, you know, i would say uncertainty surrounding trade, et cetera, and as we have seen the slowing economy. But thats not a bad number. Stuart a very low firing and layoff rate which means they are holding on to the workers theyve got, largely speaking. Tomorrow, of course, the big jobs numbers come in. That will be 8 30 eastern time. We have a big name guest to respond directly to it. Larry kudlow, the president s top economic guy. He will be right there on the show 9 00 eastern time, first thing tomorrow morning. Now lets get back to today. At 10 00 eastern this morning, big news coming. The read on the Services Sector. Market watcher scott martin joins us now. All right, why is this number, services, so important . Why are all eyes focused on this today . Well, unlike manufacturing, which certainly was significant, especially if you consider the trend manufacturing has been in for several months now which is downturning, services are the biggest part of the economy. This is a service economy. So when you look at the ism Services Number as it plays right into the jobs number tomorrow that you highlighted, this is a bigtime indicator of what we are going to see tomorrow in the nonfarm payrolls report. Stuart real fast, when im thinking about services, i dont think the Service Sector is as tuned in to tariffs and china trade as is manufacturing. That a factor today . Yeah, thats true, but if you think about it, its kind of funny how everything gets kind of tied in, in the sense of yeah, youre right, its retail, its hospitality, things like that, but think about the tariffs and how they have impacted say supply chains and how some companies as we are going to start learning, too, i think in q3, thats one thing markets are worried about here is that when q3 earnings start to develop in the next couple weeks, companies are starting to talk about increased prices, increased prices to consumers, because they have to pay higher prices for things that they are providing people in those Service Sectors. Thats what we will start seeing in the Services Indicators starting today. Thats why i think the market has been a little nervous this week. Stuart we will be watching. So will everybody else. Thanks very much indeed. I will turn now to Constellation Brands. If you didnt know it, its one of the Biggest Alcohol Companies in the whole world. They just reported. Wine and liquor sales, this surprises me, down 15 . But sales of beer are up. The stock is taking it on the chin, down 3 . Look at pepsi. Revenue up and the company says they are going to hit their 4 growth for this year. The stock is up over 2 . Then weve got the Grocery Store chain kroger. Reportedly, planning layoffs. Im interested in this company because they are always innovating to try and stay competitive. They have selfdriving cars, they have delivery, they have pickup services. Why are they cutting jobs . Susan they are trying to compete with larger competitors. Walmart is now the largest grocer in the country, more foot traffic than the likes of kroger. Kroger is probably synonymous with groceries and they employ about half a Million People across the country, parttime, fulltime. They are going to be cutting hundreds of jobs and thats because they cant reconfirm their threeyear projection of 400 million in incremental operating profit because of this intense competition. Selfdriving cars i should point out is for the future. But we do have pickup and they are trying to get more online as well. Stuart good luck to them. Thats the way you meet your competition. Check futures, please. Pretty much dead flat after an 800 point drop in the last couple of days. This changes at 10 00 this morning. Troubling new developments in the vaping business, vaping related illnesses, i should say. The mayo clinic researchers looked at lung tissue samples and they say the damage looks like severe chemical burns. They compared it to lung tissue of people who inhaled mustard gas in world war i. Doc siegel coming up on that one. Also coming up, President Trump heading to florida. He will sign an executive order protecting medicare for seniors. He may stop and talk to reporters on his way out of town and if he does, you will hear what hes got to say. And with joe bidens dealing with the ukraine mess, as Bernie Sanders health issues, looks to me like nows the time for Elizabeth Warren to shine. Problem is, my opinion is, shes not electable. Pete hegseth live from a diner in americas heartland coming up next on that one. The world is built for you. So why isnt it all about you when it comes to your money . So. Whats on your mind . We are a 97yearold firm built for right now. Edward jones. Its time for investing to feel individual. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. this is the family who wanted to connect. The day well finally get something done. 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All right, pete, i say how you doing . Stuart i believe its Elizabeth Warrens nomination to lose. I also think she is unelectable. Im coming right out with it. What are the customers saying there . Well, we will talk to a few of them. He with in hampton, minnesota. Not the hamptons. Hampton, minnesota, talking to great voters out here, farmers, others, hardworking folks who are watching all this very closely, all this talk of impeachment and who on the democrat side will come out in front. We have a couple workers here willing to talk to us about the economy but first we will talk to a couple of our democrats here, they have been waiting very patiently with us this morning. You are a scheduler at an eye clinic, wife of a farmer. You are a democrat. You say you would support Elizabeth Warren but some people think she might not be electable. Are you concerned she might be too progressive to win a general election . I dont think so. I think shes hardworking, very thoughtful, very stable, and i dont think shes too far progressive that shes not willing to listen to more central democrats and also whats best for the American People in general. You dont feel like some of the plans shes talking about, trillion dollars on green new deal, medicare for all, ultimately, those have to be paid for, shes talked about middle class tax increases . Well, shes actually thought through things. Thats one of the things i like about her. She has plans in how shes going to pay for them which some of the candidates have not. But thats one thing i like about her. I dont feel that any of her ideas are too extreme. Okay. Quickly, your thoughts on Elizabeth Warren. Look, warren is being criticized on the right as being too far to the left but i got to be honest, shes also been criticized by activists on the far left as being a centrist for democrats. That tells me shes right in the middle. I think thats a large reason why shes going to have a strong showing in our primary. You have seen resistance from the left to Elizabeth Warren . I have seen a lot of criticism of her as painting her as a corporate democrat. Again, to me that just says shes going right down the middle and i think shes going to have a strong showing in our primary. Are either of you concerned that President Trump will run a formidable enough campaign to beat whoever the democrats put up . No. No. No . Confidence here, stuart, on the democrat side. Although talking to other democrats here, they are still saying too early to decide. We dont know who our candidate will be. Believing its still wide open. Thats the thoughts on democrats. If you want to talk to folks on the economy, we can as well. Its your show. Whatever you want. Stuart i was intrigued at the way you suppressed your own point of view when the ladies said Elizabeth Warren is straight down the middle and she thought things through. Admirable restraint, hegseth. Unlike you. Not often, you know, you got to give the guests a little time to give their perspective. We hold back a little bit there. Stuart well done. Well done. Come on back to new york. You got it. Stuart see you soon. The futures market, we open the market in 11 minutes time and we will be up ever so slightly across the board but again, thats probably going to change at 10 00. Big numbers on the economy coming out. Lets get to hong kong. The authorities there plan to invoke Emergency Powers. First time in 50 years thats happened, amongst other things these Emergency Powers would ban protesters from wearing masks. A lot more involved than that. First time we have seen it in 50 years in hong kong. This comes after attack on Police Officers and a protester getting shot. Whats the end game here . Its very hard to tell. We will certainly deal with it after this. Going back to the doctor just for a shot. With neulasta onpro. Patients get their day back. 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Stuart now, the real market mover happens at 10 00 this morning. What youre seeing is whats likely to happen at 9 30, flat to slightly higher. But i keep saying it, we get the Service Sector indicator at 10 00 and that could really change things. Lets get back to hong kong. Reportedly invoking Emergency Powers that would give the authorities there all kinds of extra power. What extra power . Susan they could impose curfews, censor the media, search premises, take control of ports, all transport, and the first time it would be invoked in 50 years. You have to go back to 1967 with the leftist riots back then. Basically, they want the first step they do invoke is they want to unmask the protesters because a lot of people believe in hong kong that if you unmask protesters, you take away their strength, because how they behave when theyre arrested is usually they are very docile students. Yes, sir, im sorry, sir, and once you unmask them, you take away i guess their defiance and this vigor to defend themselves. Stuart would it also allow beijing to roll in the tanks . If you have Emergency Powers, could they just say here come the tanks . Susan thats right. Basically beijing has to be invited in by the chief executive and if you invoke these emergency measures, then that does open the door for carrie lam to say basically we need some help, can you roll in the tanks. Stuart this clearly looks like escalation when you get these Emergency Powers. That is escalation. Susan absolutely. Well, i mean, the government, they feel they dont have any other solution at this point. How do you contain this with the worst rioting and chaos you have seen in 50 years on october the 1st and beijing, by the way, given that they had such a loss of face on the 70th anniversary of the peoples republic founding, they might be losing patience, too. What is the end game here . 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The new aag advantage jumbo is changing the way people use reverse mortgages, and another way aag is working to make your retirement. Better. Call stuart well, just a few moments ago i said it was Elizabeth Warrens nomination to lose. Well, moments ago, she released her plan to empower American Workers and raise wages, actually. Ashley she says American Workers do not have enough power. In fact, she says unionized workers have plummeted from roughly 35 all the way down to just over 10 since the 1950s. Her plan would extend labor rights to all workers, protecting pensions, strengthening workers rights to organize, bargain collectively and oh, yes, strike. Stuart i heard a big sigh from susan. Susan theres a lot in this plan that includes 15 an hour, by the way, for all workers, including tip workers as well. Lot of people on wall street actually, when i went down there after the selloff, part of the selloff was because of concerns over Bernie Sanders health. Does that hand essentially the nomination over to Elizabeth Warren who is not seen as probusiness, mind you. She will tax every stock and bond trade, break up big tech. Wall streets a bit scared here. Stuart it should also be pointed out that people are leaving unions out of choice. Their own choice. Ashley right. Instead of having to, you know, close shops, where you have to join or else. Stuart the moment they are given the choice, a lot of workers leave the unions. Susan look what happened to uaw. We are in our third week of strikes for gm and its not like theyre not being paid well compared to other industries. Theyre not being paid right now, and some people look at that case thinking why should we unionize. Stuart 63 an hour for gm workers if you include benefits and all the rest of it. Here we go. This is going to be a big day, sports fans. We are now starting the trading session. Its thursday morning. Here we go. Bottom righthand corner of your screen, you will see what is happening to the dow industrials right now. We have opened ever so slightly lower. I keep saying it, that will change at 10 00 when we get the Service Sector numbers. Im also going to show you some of the big stocks that are in the news and moving. First off, tesla. Look at the way it opened, down 11 bucks, 4. 7 . Tesla is back to 231. Look at gopro. I believe they introduced a new product this week. What was it . Susan zero 8 black camera. Stuart more on that coming up. The stock is down 17 . Look at bed, bath beyond. How about that one. I think that stock is down just 3 now. Its back to 9 a share. As for kroger, theyve got some layoffs coming. They tried everything to be competitive. They are down this morning. More on all of those stocks in the news a little bit later on. Here we go. Michelle mckinnon joins us, susan li, Ashley Webster all here. All right, michelle. Its been a rotten week, down 800 the last couple days. You are the perpetual optimist. You have always said we will bounce back, every time we got a selloff you say jump in and buy because its a buying opportunity. What do you say now . I do, because remember, right, the majority of my clients are longTerm Investors. I look at the market, i look at valuations, i dont think we are absurdly valued. This is probably an opportunity. However, i continue to be bullish because of the strength of the consumer. If we see really continuous weak job numbers and if we see a Lower Services, continuously Lower Services pmi, then i think maybe we need to reconsider. Stuart you will change your mind . I would. But keep in mind, im a longTerm Investor. All my clients are longTerm Investors. Small pullbacks dont make a difference to me. I hate to say it but eventually when we see a slowdown in growth here in the United States, we are going to look comparable to the rest of the world and there might be an opportunity for International Markets to outperform. I think now more than ever, i think its important to be diversified. Stuart okay. Look, we keep pointing towards the 10 00 Service Sector numbers that are going to come out. Its all eyes on it. It is. Susan make or break. Here we are. Because manufacturing only makes up around 10 to 12 of the u. S. Economy. I know we kind of freaked out on the ism Manufacturing Index and it was at its worst since 2009. Services make up 70 of the u. S. Economy. It better be growing or youre in some trouble. Stuart if it confirms the slowdown in manufacturing, slowdown in services, bad news for the market. 10 00, you get the numbers. Lets take a look at Interest Rates this morning. Specifically, the yield on the tenyear treasury. Look at that. 1. 57 . You get red arrows on the stock market and money pours into american Treasury Bonds as a safe haven. We are down to 157. Does that bother you . I wouldnt be surprised if it goes lower but i think my rationale for why people should invest is you look at the alternative. You look at bonds. The treasury at 1. 57 . Thats insane. You look at equity markets, they are relatively attractive, 2 yielding s p, and in theory, they are going to rise, right, so its like you are almost forced into equity markets because you certainly cant touch the tenyear treasury right now. Susan rotation into bond markets. Ashley you look at the other countries, i have a live st of tenyear yields, theyre all negative. France, germany, japan. Youre not even getting any money back. You are paying for the privilege of parking your money. Even though its down 1. 58, its the only game in town. Susan because of concerns over the stock market, there are now heightened expectations of another rate cut in october. A week ago the probability was 50 . Now its up to 75 that we need another one in october. Stuart guess what . Ubs says if the fed cuts rates, it will not save the stock market. I dont know what kind of rate cut theyre talking about. Ashley quarter or half percent . Half percent, i think thats a whole different question. Stuart you think it would help the stock market . I think it would hurt the market more. Cutting a half percent means the economy is really in rough shape. Stuart oh, so a rate cut would hurt the market . At 50 basis points . That means theyre afraid. What the numbers are showing. Stuart the world turned upside down. I thought when the fed cut rates the market went up but no. Susan different times, stuart. Different times. We are below 2 , youre going to cut even further and think the Interest Rate cut is going to help the markets . We keep talking about the days when we had 5 Interest Rates. You cut then, that would help the market. Not now. Stuart in my day, it was 12 and 13 . I remember the day, the early 1980s, when the yield on the threemonth Treasury Bill went to 12 and 13 . Ashley wow. That was the day. Stuart we thought the world was coming to an end. Ashley we survived. Stuart im still working. We will check the big board for you. Why not. You dont expect much action really until 10 00 when we get the Services Sector number. All right. Lets move on. Constellation brands, a huge alcohol company, operates all round the world. Okay. They have reported their earnings. The stock is down 3 . Heres what intrigues me. Sales of wine and liquor, down 15 . But sales of beer actually up. Isnt that contrary to the trend, the alcohol use ashley yes. Certainly with millenials. Beer was not particularly liked. Stuart say that again . Susan also hard seltzer, right . Low carb, low calorie but you still get the alcohol content. Stuart our producer points out they did post a loss. Okay. Fair enough. They are down 3 . Pepsi, take a look at that. Revenue up. The company says they will hit 4 , what was the word, organic growth. The stocks up 2 . Apparently their Beverage Division did nicely. They got three new drinks which include real juice and that helped the beverage department. Okay. Price of gold, 1506. Not Much Movement there. The price of oil, where is it . Ashley down under 62. Susan that helps the consumer. Stuart in the sense you will get lower gas prices. But it certainly hurts exxonmobil yeah, but at the end of the day they have done a really great job of being able to operate at reasonable prices. Stuart all im saying is when you have oil at 51 a barrel, thats a negative for the overall stock market because the overall stock market includes so many oil companies. Susan small percent of s p now. Stuart 51. 87 on oil. Im looking for cheap gas. Thank you very much indeed. Lets get back to stocks in the news. First off, tesla. Yes, record deliveries, i think it was 97,000 in the quarter. But theres no pleasing wall street, you know, because wall street wanted more. Right . We are down look at tesla, down 12 bucks. Susan they were looking for 99,000 deliveries instead of 97,000 is a pretty good number given that they topped 92,000 in their previous record quarter. Look, if they are going to get to the full year goal they need to produce 104,000 vehicles. As we know, theres been some questions in terms of how reliable the production has been from tesla. Stuart by the way, tesla this calendar year is down 26 . Its now at 230. Lets have a look at microsoft. Ive got a little bit of it. Okay. Got that. Its introducing some new gadgets. Whats the big new gadget . Susan called the new surface duo. It runs on android. Basically its a folding phone that features two sidebyside 5. 6 inch displays but its not seamless. Once you open it, you can still see the fold. However, they are using it for gaming. Its useful for gaming because we know microsoft has the xbox, right . One side could be actually used as one of the gaming controls in the future. This will be just in time for the 2020 christmas season. They havent given us a price just yet but we knew they were working on this, and theres been a run on the new windows 10x which is the new version of their windows operating system. Stuart i havent a clue what youre talking about there. Its at 134 a share. Gopro delayed shipments for its new hero 8 black cameras. Thats hurting the stock. Its now down 20 at 4 a share, down 20 since last october. Are you bargain hunting . Im certainly not. I think if youre a speculator, you can jump in at these lower prices but i think the stock might be in trouble. Stuart might be in trouble . I think we can conclusively say its in trouble. Thank you very much. We are going to close out the discussion of the market right now, because there will be a lot more market discussion coming up at 10 00. Okay. Our thanks to michelle. Thank you very much. All right. At least four Police Officers are dead, its in paris, after a man wielding a knife attacked them. The assailant was shot dead. Do we know anything more . Ashley we understand reports that he was a disgruntled i. T. Worker that worked at the Paris Police Headquarters just across from Notre Dame Cathedral for about 20 years. He had a longrunning conflict with his supervisor. Apparently he snapped this morning, took a ceramic knife, killed his supervisor, a woman, then went on a rampage. At some point he may have also got hold of a gun. Four people killed, he was shot dead. Unfortunately, not until he had taken the lives of four people. As it stands now, a conflict with a supervisor and just a horrible outcome. Stuart got it. Thank you, ash. Check the big board. Weve got about 20 minutes to go before we get the Service Sector number. Thats when the market may really move. Right now we are down 39 on the dow. Big tech stocks, got to check them all the time. We are checking them now. Mixed bag there. Not Much Movement. We will talk to a market watcher who says forget those stocks, forget big tech. Lot of other companies, lot of other stocks out there that are much better deals. She will make her case, next hour. And with bidens ukraine problems and bernies health issues, seems to me like Elizabeth Warren is poised to lock up the democrat nomination. Thats my opinion. I think thats good news for President Trump. My take and reaction to it from steve forbes, coming up at 11 00. Look at the white house. President trump scheduled to leave for florida next hour. If he talks to reporters, you will see it right here. This is Varney Company. Invested in you. To the outside world, you look good, but you dont feel good. With polycythemia vera, pv, symptoms can change so slowly over time you might not notice. But new or changing symptoms can mean your pv is changing. Lets change the way we see pv. You track and discuss blood counts with your doctor. But its just as vital to discuss changing symptoms as well. Take notice and take action. Discuss counts and symptoms with your doctor. Visit takeactionpv. Com stuart this number is going to change, okay. Were slightly lower for the dow industrials. It changes at 10 00, when we get the Service Sector number. Im confident it will change. Stay tuned and well see. Crowdstrike, now, that was the firm named in the ukraine call transcript. They are now up 3. 5 . Suntrust raised that stock to a buy. Am i right in saying that crowdstrike is up since . Susan up more than 70 since its very successful ipo this year. Stuart okay. The ceo of google pledging to help small businesses. Hes at a roundtable with ivanka trump today. Hillary vaughn is there. Whats going on, hillary . Reporter hey, stuart. Google will sign the pledge to the American Worker today. Thats something that apple and microsoft already signed on to. Well, today, googles ceo Sandar Pichai will join ivanka trump and sign that pledge. They are also announcing a big expansion to their i. T. Support Certificate Program that trains people within six months to train support jobs. You dont need a College Degree to do it. They are expanding that with a 3. 5 million grant that will be available in over 100 Community Colleges around the country, so that is a major announcement happening today. And really, this is part of googles initiative called grow with google that is to help invest in workers and train them to fill a lot of vacant positions that remain open because people just arent trained to fill them. Stuart i just wonder if ivanka will one day run for the presidency. We shall see. Thank you very much. Good to see you. Thank you. A programming note. Big guest on fox business tomorrow. Ivanka trump will sit down with trish regan tomorrow night, 8 00 p. M. Eastern. We talk a lot on this program about the grocery chain, kroger. They are doing all kinds of things to innovate and try to stay competitive. They expanded their grocery delivery, they are partnering with instacart, they are going to use selfdriving delivery cars, and now we hear that the companys laying off workers. The stock is down just a fraction on that. Flickinger retail watcher with us now. Kroger is trying hard but its not really going anywhere, is it . Its about to break through. Layoff announcements today, kroger closed two dozen different kingdoms called kroger marketing areas, each with its own management infrastructure. They are centralizing more in corporate, going after additional income, more sustainability to catch up to the leaders, amazon, costco, target, walmart, and so this is the beginning of a really big breakout for kroger, and they will wind up creating new jobs, adding stores. They worked on their collective bargaining between the neutral force person between the Union President s and the companies in california and colorado, and they had labor peace and are reinvesting in the company so these are redundancieredundanci. Stuart they are a grocery chain. Is there room for numerous grocery chains in the United States of america when walmart is on the block . Same as uk, where one store was very strong in checkmating one coming over from germany as well as krogers got an exclusive in the u. S. , working with instacart for delivery stuart you think this is the Takeoff Point for kroger . If they follow the Sunrise Movement for gen x, y, z baby boomers and go sustainable in solar because people who sell food, their stocks up 30 , amazon, costco, bjs, target, who are the sustainable leaders. The companies who are not are down 5 . Stuart what happened to bed, bath beyond . Im used to getting the coupons, the blue slips that come by mail. They come by email. I used to get them in the mail. The stock is actually up this morning. Whats the problem with bed, bath beyond . Stock is down 50 in six months, three quarters, 75 in three years. People can shop byebye baby every day but they cant shop Christmas Tree shoppes every day. Bed, bath beyond is in the proverbial stone ages in terms of sustainability. Its really important for shoppers so they are going from bed, bath to target and whin target, loss bed, bath. Stuart okay, thank you. See you soon. We are not going to see Much Movement on the dow industrials until 10 00, which is about, what, 12 minutes away. Stay tuned. We will get some movement then, i do declare. At the mayo clinic, that clinic says the mystery vaping illness could be much worse than thought. They say the lung damage theyre seeing in patients looks a lot like burns from mustard gas, get that. Marc siegel, the doctor, after this. Car like i treat mine. Adp helps airtech automotive streamline payroll and hr, so welby torres can achieve what hes working for. Yourethats why at aetna,sing what matters. Were committed to taking care of the whole you. With Medicare Advantage plans that offer Health Coaching and fitness memberships. Plus hospital, medical and Prescription Drug coverage in one simple plan. With monthly plan premiums starting at 0. Aetna Medicare Advantage plans call today to learn more and well send you a 10 visa reward card with no obligation to enroll. Or visit us online at aetnamedicare. Com tv but shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Sometand with theall screen Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Keep what you watch with you. Download the Xfinity Stream app today and get ready for Xfinity Stream tv week. Watch shows like south park and the walking dead october 7th through 13th. Stuart ive got to say this sounds like a very disturbing report on vaping. Lo lung damage from vaping resembles chemical burns in the lungs, the kind of thing that people got in world war i from mustard gas. It sounds real bad. Lets see how bad it is. Doc siegel is with us. Is it i mean, when you say chemical burns in your lungs from vaping, like mustard gas in world war i, that sounds awful, doctor. Its bad. Its damaging the linings of the lungs which are like vacuum cleaners cleaning out debris, damaging cells in the lungs and creating fluid in the gaps. So fluid is building up. Heres why this is happening. Heres why this is a step forward. Mayo clinic did a study on 17 of the people who have been victimized by this vaping, and they are not saying its not the thc, theyre not saying its not the cannabis product. They found that in 70 of them. But they found that the damage done to the lungs wasnt from the oil itself in cannabis oil, but some associated chemical that was laced in there. You know, these are dark vapes for the most part, meaning black market, meaning illicit, meaning somebody is playing games here, somebody is sticking some chemical in there. Stuart so it is not vaping in and of itself, it is what you vape that is responsible for these chemical burns . Thats correct, isnt it . Correct. And its emphasizing its what you put in this cartridge. Whos putting this stuff in . This is not regulated, theres no quality control, theres no science. Stuart okay. Very important stuff, actually. Because vaping is very much in the news here. Lot of people very worried about it. Great point. Vaping itself has got to be safer than cigarette smoking by far, in my opinion. Stuart i want to move on to Bernie Sanders. Can you tell us anything more about his medical condition right now . Yes. A stent opens an artery that feeds the heart. These are tiny coronary arteries that feed the heart. He had blockages in one of them. They had to open two blockages. He came in with chest pain, they discovered he had angina, he had a compromised blood flow to the heart and they stuck in two stents. What we heard at the time from a spokesperson that talked to the wall street journal and said there was no heart attack. Thats key. But later on in the day, that spokesperson withdrew that statement to the wall street journal and said further tests will determine if there is heart damage. There is a huge difference there. Stuart let me take you back to chest pains. Most people have had chest pains, especially later in life. At what point do we say this is serious, go to the hospital . I mean, how do you tell . How do you tell how bad it is . Its a great question, stuart. I always err on the side of sending someone to the hospital, especially if they are 78 years old, especially if they have a history of high cholesterol gout. Stuart does he have a history . Yes, he documented that in 2016. Also, its the nature of the chest pain. What he described from what were hearing was a squeezing chest pain, chest pressure, shortness of breath. Thats classic for heart symptoms. That person goes right to the hospital. Here in the United States, i might add with private insurance, we intervene very rapidly and we can usually prevent sometimes prevent a heart attack. But it depends. So thats the key question, was heart tissue damaged because if heart tissue was damaged, then the longterm prognosis is worse and he may not return as quickly to the campaign trail, or at all. We dont know. Stuart its an open question . Right. When the Campaign Spokesperson says that hes looking theyre looking to determine it, it probably means that theyre going to be doing an echocardiogram of the heart to see if the walls are functioning properly, a stress test. They have many ways to determine if the heart is perfectly fine after the stents are put in. Stuart fascinating, because that directly affects the campaign. Directly. You bet. Stuart doc siegel, you were needed today. Were thankful that youre here. Thank you. Good stuff. Moments, i say minutes away from the latest read on the Services Sector. The number i think will move the markets. Certainly all eyes are on it. Weve got that number for you prompt at 10 00. Connecticut, whoa, have they got a slew of new taxes and guess what . They hit today. They are pretty much taxing everything. You name it, they tax it. We have the list for you. And the president is about to depart the white house for a Health Care Event in florida. He often stops and talks to reporters and when he does, hes got a lot to say. We are keeping an eye out for you. We will show you anything he has to say. This is Varney Company and the second hour approaches. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. Stuart coming up in the 10 00 hour, President Trump leaves for florida. He will talk medicare. He may talk to reporters on the way. Now here we go. It is 10 00 eastern time. Im looking for this number on the Services Sector. Have we got it yet, ladies and gentlemen . What is the number . Ashley looks like 52. 6. Stuart immediate drop in the dow industrials. Ashley looking for around 55. So that shows even though were not below 50, the pace of growth in the Service Sector is slowing down. It was 56. 4 in august. Another sign that the economy is slowing down. Stuart look at us go down. Ashley look at that. Stuart Service Sector in some perspective here. Services make up a big chunk of the economy. Susan 70 . Stuart that is why the sector is important to overall outlook. Gets a lot of attention because the economy is slowing. We want to know by how much. Decline in manufacturing was due in part to tariffs and china trade. Services rely more on Consumer Spending which has been strong. Bear that in mind when you try to figure out the significance of todays number. Ashley other number you look at deep in the report is business activity. Estimate was for 59. It came in at 55. 2. That is another weaker result. Stuart come on in Scott Shellady. What is your response to this number on the Service Sector . Well, the Positive Side is were growing but slower. I said that before. Remember were growing slower. That is okay. Number two is this. You talk about the algos, High Frequency trading. Sentiment is trading theyre looking for negative numbers to settle market. That is all theyre doing. We had some okay numbers before this number but looking at this number which everybody was, it if it doesnt come in as expected the algos hit it and hit it quickly. Stuart do you think there might be a shift later in the day when algos finish reading headlines and longer Term Investors move in . Im looking at a dow down 230. The only issue i have right now this market is a living breathing thing, sometimes it gets in a bad mood, right . It has some negative sentiment. Well overexaggerate negative news regardless of a long Term Investor coming in later today. The technical guys are looking for the market to sell off a little bit, go down to Technical Levels that make everybodys eyes glaze over. Remember were growing but it is slower. Thats fine. As long as the consumer still healthy, im not nervous. Stuart scott, stay there for a second. Make sure you agree with my summary here. The Service Sector slowing a little, still expanding, but the expansion is slowing. Business activity also slowing a little. Still expanding in this survey, but still slowing a little. Doesnt quite confirm the rather dramatic slowdown in manufacturing reported on tuesday. Scott, have i got it right . Stuart, i will give you an aplus for that one. You can come back again tomorrow. Stuart and i probably will. Scott, thank you very much indeed. Lets go straight to the market. Lets see how this is being responded to. At the moment were down 223. This means that were down 1000 points since, what would it be . On tuesday. Susan three days. Stuart wednesday. Susan three days, were down 1000 points. Stuart were down 1000 points. Were back down to the 25,000 level. Lets deal with mortgage rates. It is 10 00 eastern on a thursday. Mortgage rates . Susan 3. 65 . Up one basis point from last week which was at 3. 64 but there are positives in this report. Mortgage applications up 50 from a year ago because of the cheaper rates. A year ago you were paying 4. 71 for 30year fixed mortgage rate. Stuart i was. Susan youre down one full percentage point. That is driving consumers to maybe look at housing. Stuart no impact on the market whatsoever, i do find that interesting. I love to see resurgence in housing. Looking for a mortgage, you find it interesting indeed. Susan one of the worst starts to a quart since 2018 and 2009, down 1000 points for the dow for the past three sessions. Weve seen the best three quarters for the s p since 1997. Ashley down below the 200day moving average. It Means Nothing to anyone but it does the algorithms that pick up on that as well. Stuart Scott Shellady still with us. I hate being technical, but if we move below the 200 day moving average, what does that mean, how significant is it scott . Ashley is exactly right. Programmers programmed into the algorithms a Artificial Intelligence to sell below those levels. Going to a computer program. When we start to see the things degrade, we go through the milestones or flags, they will start to sell right away. That is what were seeing happening a lot. This is quickly a sentiment change. Doesnt mean it cant change back again. It is a living breathing thing. Well have to go through this. Thats okay. Susan lees numb before seen a great resurgence. Dont you think the market is taking 1000 point very well. Stuart i guess youre right, when you say 1000 points in three days as a catastrophe, but it has taken it really well. Session lows 264 points down. Ashley flight to safety. Gold up 16 bucks. Stuart scott, stay with us. I want to talk about Interest Rates. Were talking about a flight to safety. Ash, tell me the 10year. Ashley it was 1. 58. Stuart 1. 57. Ashley 1. 55. Stuart how about that, scott, that is an indicator me, 1. 55 . It is not just a flight to safety. Ashley actually now it is down to 1. 51. Stuart it is now 1. 51. That is significant to me, scott, that suggests to me the treasury market is responding not just to a flight to safety by a slowing economy. What say you, scott . Exactly right, stuart. Well go lower than that. Interest rate cuts will be on everybodys mind now. Number two, how much can the u. S. Economy stand bashing from europe and asia and negative Interest Rates all the things theyre doing with their economies and Central Banks . How strong does the u. S. Economy have to be to weather that storm. That is what jay powell has to figure out. Half the reason youre seeing how low Interest Rates are, how bad things are in europe and asia and how long can we withstand that. That is what we need to see the next 18 months. That is what powell has on his plate. Stuart to the new york stock exchange, gerri willis is there. What are people saying on the floor with the new number . Reporter they do not like it, one little bit. Average is down 285 points. The manufacturing number we got so hard on the averages for two days, they didnt want to be surprised again like this. This is lower than they expected. They are surprised twice in one week on economic numbers. It is all about the economy here. That is what these guys are really focused on. You may hear it is political. That were worried about this or that going on in washington . Not true. They are focused as closely as they can be on economic numbers. Back to you. Stuart thanks very much, gerri. We have another low of the day. Weve been in business seven minutes after the release of that Service Sector number. Were down 319. Ash . Ashley National Retail federation coming out on the heels of the negative news and the consumer sector. The consumers are in good financial shape. Retailers are expecting a strong Holiday Season. We can expect a much stronger Holiday Season even though there is some unease with the current data. Stuart i cant work that out. People are spending that money. See it in restaurant billings. Theyre strong. Yet the Service Sector is slowing down. Susan there is all the talk about tariffs impacting consumer sentiment. National Retail Federation says remains to be seen whether it has impact on Holiday Spending or directly through consumer confidence. Consumers are still spending. Were looking close to 1. 8 growth i believe for the Fourth Quarter. Stuart ash, check at the yield for 10year treasury. As we do that, can we get Top Tech Companies on the screen, please . I think theyre down. Microsoft is down a buck 30. Back to 133 at the moment. So big tech, there you have it. Apple is down three bucks, 215. Apple is down 26 bucks at 1686. Google is down 13 bucks at 1164. Facebook is down 174. Microsoft is down 133. What you got . Ashley hanging in there 1. 51 on the 10year. Stuart here is a developing story. Nine minutes ago we got the Service Sector indicator, it shows the Service Sector, 70 of the economy is slowing down. Not as much as the Manufacturing Sector but slowing down. Immediately the market started to sell off. In part that is because of algorithms which read the headlines and buy or sell depending on words used in those headlines. Evidently the word was sell because we sold immediately. There is flight to safety. 1. 51 on treasury yield. That reflect as slowing economy. What have you got, susan . Susan it is globalized world. There is no growth happening in europe. As i mentioned to you, i would say europe has been feeling the brunt of this trade war given that china slowing down because of it. So theyre not giving as many orders to germany. Germany slowing down taking the rest of europe along with it. That is having domino effect on the rest of the world including here in the u. S. Stuart youre so right, susan. We focus exclusively on the part of the United States economy. We are part of a global economy. We are still today doing better than almost any other industrial democracy on the planet. On your screens now, a chart, we call it intraday chart. You can clearly see impact of that Service Sector number. It is slowing down. The market went straight down. Right now were down 318 points. Look at that graphic, bottom righthand corner of the screen, it will be there throughout the show. Scott shellady, back to you. Were ten minutes after the Service Sector indicator. Anything to add . Lets not get over our skis too much and be too negative nancy here. The market is punishing bad numbers. It will not reward good numbers right now. That is just the sentiment. Remind yourselves were off 1. 25 . These numbers look big but 1. 25 we should be able to handle and we handled the last three days very well. Stuart do you think it makes any difference to the market, if the Federal Reserve looked at these numbers, well cutrates dramatically . Would the market recover . Not one one 100 . The market is not willing to reward bad news. You might get a little bump out of good news but not as much as the number we saw. Stuart i want to bring in former arkansas governor mike huckabee. Welcome to the program. Were looking at a slowing economy and downside move in the stock market. What impact do you think that might have on President Trump and the 2020 election . Were still a year away so we dont know. If it continues and, lets say it continues moving south i think it could have an impact. People ultimately before they vote anything else, before impeachment, before they care whether the president tweets, before anything, they vote their own personal pocketbook. And that is what is going to drive the election when it gets down to it as much as any other issue. It could have an impact. We have to be honest about that. Stuart do you think that might push the president making a deal with china on trade, any kind of deal . I dont think the president is just going to make a deal to make a deal. He is too far invested in making a deal that is good for america. And i think one of the things he has got to do is do a better job, and a more thorough job of explaining to the American Public that it is critical we hold the line against china. Frankly theyre suffer more than we are. It is in their best interests, far more, say urgently to get this resolved even than it is for us but it is an issue for america to resolve. If we dont resolve it. Well be continued to be treated like chumps. Were going to get pushed around. Well see more intellectual property theft and america ultimately suffers, not just in consumer goods. Stuart, weve seen this last week, were suffering militarily. The reason we are, the globalists, all wall street people who made bunch of money off china, given them resources to build a military that ought to scare the daylights out of us. Stuart earlier on the program, governor, i will change the subject, earlier on the program i said it is Elizabeth Warrens democrat nomination to lose. I say that because of the Health Problems for Bernie Sanders and ukraine problems for hunter biden. I think Elizabeth Warren is now the clearcut leader. I think it is her nomination to lose and i think everybody, especially moderate democrats should be worried about that. What say you . I think they should be more than worried. They ought to be in a panic. If there is a person such a thing as moderate democrat more, they arent many, and there is, they think anything at all about a economy that rewards hard work, capitalism, recognizes the foundation of a strong economy, people having jobs, paychecks, ability to invest in their own retirement, live a decent life, yeah they ought to be scared about Elizabeth Warren. She has a right of the right diagnosis in terms of a mismanaged and imbalanced economy but her prescription is worse than snake oil. Its horrible. It would destroy our economy and our place in the world. Stuart do you mind if i ask you if youre an investor governor . You dont have to answer, but if you are, i wonder if you do any selling today . No. I dont, i am an investor. You know i have got 401 k and got other stock funds. You know, but heres the thing i look at. I never look at this daytoday. I look at it year to year. I think the biggest mistake people make they get all emotionally invested in the ups and downs of the market, even hour by hour. That is ridiculous. The stock market is no place to be if youre a nervous nelly. It is a place to be if you look at it over the long haul and over the long haul the stock market is a good place to be. It is not a good place if youre constantly buying, selling, buying, always in a panic. You get your panties in a wad about the stock market going up and down, it will take years off your life. You wont have as much to retire with because you will be dead before you retire. Stuart how nicely put, governor, how nicely put indeed. Governor huckabee, thank you very much indeed. We appreciate it. I want to point out the market is back a little bit. We were down over 300. Now were down 277. Some people may buy what they consider Bargain Basement prices. Do you have something for us, susan . Susan context of disappointing ism Services Number, worst read in three years. Services make up 70 of the economy. Much more important than the manufacturing ism that we got a few days ago. Worst in 10 years. Youre looking at the worst manufacturing number in a decade, worst Services Number in three years, worst day for european stock indices since 2016 as well. There is a turn in sentiments to the negative. Stuart thank you, susan. Is Scott Shellady still with us . Yes he is. Im still with you. Stuart im fascinated by governor huckabee, who said dont get involved in the daytoday movements of the stock market. Most people are long Term Investors and book their money in and dont change daytoday. That sounds like good advice to me, scott . There is a lot of books been written exactly that advice. If you want to start shopping, changing on a daytoday basis like the governor just said, number one you will eat yourself alive when it comes to fees that is very aggressive buying and selling and number two, you know what . You will go up against some of the most Sophisticated Technology in the world. I tell you who will win. A tax you dont have to pay i would say. Stay away from the daytoday. Go long term and look at it year to year what governor huckabee said, that is what you have to judge on going forward. If youre looking towards the end, looking to retire, it is dicier but look more towards bonds than you would be stocks at older age. Stuart at my age, stock. Thank you very much indeed. Lets not bring that up, stu. Gerri willis at new york stock exchange. I think, gerri, you have a list of the biggest losers here, what have you got . Reporter were looking at sectors, they are all losers. All 11 s p 500 sectors have down. Talk about the industrials down 1. 8 . Financials down over a percent. Energy now down 1. 2 . There is a lot of change in this today. Moments ago it was info tech that was trading lower by, in the number three position. Then materials. Lots of changes in this. You can see the banking sector. Showing right you no, bank of america, wells fargo, Jpmorgan Chase doing badly. Not a single subpoena 500 sector doing bet today it is a tough day for stocks. The pain is across the board. Back to you. Stuart the pain is across the board, back to you. Thank you very much indeed, gerri. Fine, fine thing right there, got it. Left hashed side of your screen, Constellation Brands is a big loser. It is down nearly 6 that would be 14 lower. They lost money. They reported astonishly a decline in wine and liquor sales. Ashley and beer up. Stuart i would have thought the other way. Susan give you more information of the disappointment in the ism Services Number. Rate cud odds jumped to 87 this month. It was at 75 yesterday after the selloff. Now up to 87 of the market. A week ago the probability was at 50 . Stuart okay. Thats fascinating. Ubs says if it drops rates it wont help the market. Very interesting. Ashley great. Stuart keith fitz joins us as he often does in moments of crisis. You were on the air with us yesterday. You said you were looking for buying opportunities. If the big selloff continued you would be out there looking to buy something. Well the selloff continues. Were down 240. Are you buying anything . Tell you what, stuart, i will eat my own words a little bit but not my much. The sell something indiscriminate, no place to hide. This is classic danger sign. Im watching names to talk about very keenly because the market wants to go higher, if it can get behind itself or off the headlines but today is no day to rush in. Stuart someone told me, i think it was on the air, you dont want to be the last person who panics, if anything you want to be the first person to panic because you get out before the price drops really significantly. What do you say to that, keith . I tell you what, there is an old analogy, i dont know how it was in the British School system, but it is true in the American University system. People would have the wild parties, when the cops got coming everybody in the know would go out the backdoor, leaving everybody in the front door to answer. That is very much what the markets are. People are out early, they are ones run all the way to the hills, people caught late, caught by surprise, who werent paying attention, dont use appropriate risk management. They pay the price. Stuart what do you say to someone like me, im in my 70s, i dont hide it. Im a long Term Investor. Im still working, shouldnt someone like me start to change just a little bit when you see these signs market is coming down . Why not just edge out a little bit and sleep better at night . Youre going to be safe, whats wrong with that . There is nothing wrong with that if thats why youre doing it, stuart. If youre deliberately edging out because youre concerned about the preservation of your safety, capital, money you need to live on, there is absolutely nothing wrong with doing that, however, that is not what most people do. Most people in your position, see headline, panic, make a kneejerk decision that usually costs them significantly both in terms of money they actually lose but in terms of potential they throw away. You got to be very careful about why you actually sell. Stuart yep. But we do hear that the very wealthy people have already started to move away from stocks, a little bit, and move towards cash a little bit. Maybe theyre ahead of the game here . I want to know what you think about that . Well i would disagree. I know plenty of stupid wealthy people who stay in way too long just because they can. I would suggest common sense were all born with is bred out of us as adults. That means focus on quality stuart hold on a second, keith. Producer, keep talking in my ear. Were getting headlines from President Trump. He says the chinese delegation is coming next week for talks on trade i dont know whether that brought the market back. The market came back a bit. We were down 300. Ashley he says if china doesnt do what the u. S. Wants the u. S. Has a lot of options. Stuart we have a lot of options. Susan was asked about delisting chinese firms. Those are still on the table. We have a lot of options to deal with china. Stuart keith well get more from the president in a moment. Im seeing we were down 300. Now were down 200. Do you think that some people coming in buying what they think are bargains . Absolutely that is. Because that is traders getting ahead of the headline. They know when china comes to the table, regardless what the deal actually looks like, stuart, it is going to be good for the global economy. This is the kind of potential talking about going away if you make a kneejerk decision. One thing if you want to sleep at night. If you are just going to panic this action you will miss. When china comes back, the growth will come online. Stuart keith, hold on for one second. I will ask our producers to put up as many stocks as we possibly can. We have a lot of them. These are the dow stocks big losers. Apple down a couple bucks, 260. Theyre down to 216 a share. Theyre no longer a trillion dollar company. Ashley now it is back up to 152 as the market tries to come back a little bit. Stuart directly opposite. The market false, as does the yield on 10year treasury. The market comes back a little bit and the yield on the 10year treasury goes up a little bit. Quite a relationship going here. Facebook look at that, its up. Facebook is up close to a buck at 175 in overall way down market. However it was 175. It was a lot higher than that before the big selloff began. Google down five bucks. Amazon down 14. It had been down a lot more. Microsoft was down 27 cents. It had been down more than a buck. Many some stocks are coming back. Not big time, but evidence of some buying on extreme dip. When i say the extreme dip, 1000 pointdown for the dow in what, 2 1 2 days. Sorry, susan. Susan there has not been a lot of breadth in the rotation for this rally, the best three quarters of the s p since 1997. People gone to cash or bluechip names. Not really that much rotation. There has been slight buying in the russell 2000 and small caps heading into yearend. This is the same scenario we had last year, in the Fourth Quarter and wheels came off in 2018. Ashley probability of a fed rate cut, up to 92point a percent, that is a very strong probability i do declare. Lets not forget. Ashley it was 77 yesterday. Stuart i want to bring in someone who has alternative, not alternative invests but some stocks are worth looking outside of the technology sector. He is Ariel Investments cio. Welcome to the program. Happy to be here. Stuart are you . On a day like this . Good luck. Now then, you dont, youre saying, look forget big tech. They have had a wonderful run. Maybe forget them for a bit. But youre suggesting stocks like merck lynn, right . Michelin to me is a industrial company, make tires and review restaurants. What is so good about michelin . Im a nonconsensus thinker, that is what you want to be if you want to beat the market not at the market. I think best days of fang are behind it. The ways of mang, the first stock michelin you mentioned. Stuart hold on a second. Tell me about michelin. All right. Stuart tires, when have they been a big deal . Theyre viewed as Consumer Discretionary because the auto sector as you but think about it. Tire is consumer staple, every couple years and couple thousand miles you have to replace them n that sense theyre consumer staple. Consumer staples trade 20 earnings, 2 dividend. Michelin is 10 times and 4 1 2 dividend. Stuart if i buy michelin 24 a share i get 3 1 2 dividend . Yes. Stuart i might get a capital gain. Exactly. Stuart nokia is also on the list. That is the n in the mang. If you wanted to skip the a, that is fine. Nokia, nintendo. Largest holdings in mutual funds that i manage. Nokia is misunderstood as a Handset Company. It is actually a intellectual property company. When you hit your smartphone screen and press on character alphabet character and you see it pop up, that ip, that patent is owned by nokia. Any company that uses that feature pays royalties to nokia. Earnings are coming from intellectual Property Rights as opposed to think about nokia as Handset Company of yesteryear. Stuart it is utility. Royalty revenue stream. They have a play on 5g, Nextgen Technology in telecom. One of two players in the world. Huawei is getting quite marginalized in terms of the opportunities abroad. Stuart look what you did. Dow was down when you started talking. Now it is up. How about that . I want to point out to everyone, that the market has turned. Not completely by any means. It turned a lot. We were down 300. Now were down 120. More a moment we were down 90 points. Susan what is the a in mang. Stuart nobody knows what ahold is. They are a european, own stop and shop. All across the east coast. Stuart sorry about that, folks im sorry. Amazon showed its hand and bought whole foods and went into brickandmortar. Grocery retailing dont share the same supply chain because of nongrocery. You need distinct supply chain. You cannot use distinct warehouses. Whole foods hat not made a market share or economics in retailers. They sold. Stuart spell ahold. Ahold. Its a dutch company. Stuart i have to go on to the new york stock exchange. Hold still for a second. Gerri, what you got . Reporter want to talk about united rentals, uri is the ticker. What the company does is they rent out equipment for contractors, people building things. Everything from caterpillar equipment, to scaffolding you name it. When the economy is going great guns they are going great guns. Not so much today, theyre down 2 . If the economy were to contract, this is a company that would get hurt. They are a bellwether of the economy. As you can see theyre down 2 today. So this is an important stock to watch as we try to consider whether u. S. Economy is or is not going into recession. As you see some of this flight we saw earlier in the market, the dow down only 127 points. Back to you. Stuart gerri, that was very good stuff. United rental. That is good indicator. Ashley moving across the u. S. A lot of people look to uri they rent out to everybody. Think of all the Big Industrial stocks. That is what they do. Stuart art laffer returned to us by popular demand. I believe youre there, show yourself. Your nap is over. Hello . Stuart we got the news that the Manufacturing Sector is slowing clearly. We got the news 30 minutes ago that the Service Sector is slowing. Still expanding but is slowing. You have to admit art, we have a slowing economy, and it will be very difficult to see it bounce back. Tell me. I think youre right, it is a slowing economy. Were in a world slowing a lot faster than we are, stuart. Stuart tell me how we bounce back. Tell me how we bounce back. Well bounce back to what . Were way outperforming the rest of the world and that rest of the world is pulling us down. I think we have to wait until the rest of the world starts coming back but you know, the u. S. Is way outperforming the rest of the world. You cant forget that. The question what would you like to have us do . That is a policy prescription and with this impeachment stuff going on, nothing, absolutely nothing will be done. Stuart suppose we get some kind of a trade deal with china, will that help . That would help enormously, stuart. That would be really positive. And there again we need to have china and the u. S. Agree to a trade deal. Take a look at china right now. What do you think china thinks of the u. S. Right now when trump is being impeached for doing great policies . How is china being pushed to really want and make a deal when all of this political stuff is going on . If i were chinese i would think i could wait. That is not good for us at all. Stuart so you agree with the president , yes, the impeachment drive is affecting the economy and is affecting the market, the market in particular . Of course. He is completely correct on that. If you look at what happened to nixon in the 70s, the market fell by over 50 , stuart. If you look at some of the other political stuff as well, all of these impeachment things hurt and they hurt the economy, they hurt all of that. They may be trying to get trump but what theyre doing is getting the rest of us as well, all of us, republicans, democrats, liberals, conservatives. Stuart look, let me get back to this bounceback idea. Earth they are scorching is their earth too. Stuart let me get back to the bounceback idea. We had 3 growth. We got 2 growth. I hear we may well get 1 growth in the third quarter. That is what im talking about, a bounceback from that. When are we going to get back to two or 3 growth because thats what we want to see . Well some, we would like to see that. I think the u. S. Is sitting in a pretty good position frankly from the standpoint of economic policies. I think we should be just steady as she goes, not try to do something radical except for a trade deal with china and a trade deal with japan would really help us a lot. That would be a great plus for us but right now i dont think the there is anything the u. S. Should do. Were outperforming the rest of the world. We should have steady as you go, they will pull back and we continue to outperforming the rest of the world. You cant swim upstream and go as fast as you can downstream. That is what were having happen in the rest of the world. The impeachment stuff is we can change. There is something that can be done. It should be stopped right now. Just locked together. Let the election determine what happens. Stuart just one second art if people want Elizabeth Warren, god bless them. Stuart lets them get into that. People deserve the government they stuart you dont care about china trade deal when you pick stocks, you dont care about trump or impeachment, you only look at the stocks, dont you . I think macro effects, to be dismissive of all the developments is foolhardy. That said i think a lot of the news is in the price for many, many stocks. Continued uncertainty is more about the slowdown happening globally, less about a trade war specifically. We are overindexing on issue of trade. We talk to companies all the time. Stuart were the best performing economy of the industrial world, arent we . Cant we say that . Absolutely. Stuart america is a standout . I have one last question. You said walk away from big tech. You may not know it, a lot of viewers know it i have a little sliver of microsoft, i hold it for years. Should i sell it . The mm could be stand for microsoft as well as michelin. It is our largest holding. Stuart why didnt you tell us that . I like to give you nonconsensus ideas, not mainstream ideas. I think that is where you stand out. If you want to outperform the markets you need something youre overlooking. To add spice to the show. Stuart president walking to the microphone. This is on tape. You will hear him speak now. We have a big crowd. Well be talking about health care. Were doing a lot of work on health care. Were very successful at it. Well speak to the great people of florida and theyre very happy with the job were doing. [reporters shouting questions] reporter [inaudible]. Well if you look at the whistleblowers complaint, it is totally inaccurate because the conversation i had was absolutely perfect and most people that have read it say the same thing. Whistleblower never saw the conversation. He got his information i guess second or third hand. He wrote something that was total fiction and now when people see that, theyre not happy. [reporters shouting questions] reporter [inaudible] were looking at a lot of different things. China is coming in next week. Well have a meeting with them. Well see. Were doing very well. Some of the numbers i think are being affected by all of the nonsense, all of the politics going on in this country by the democrats. I call them the donothings. They do nothing for this country. They dont care about this country but the numbers really are looking very good going into the future. So well see. I have a lot of options on china but if they dont do what we want we have tremendous, tremendous power. Reporter what exactly did you help zelensky would do with biden after the phone call . I would think that if they were honest about it, they would start a Major Investigation into the bidens. Very simple answer. They should investigate the bidens because how does a company that is newly formed, all these companies, by the way, likewise, china should start an investigation into the bidens because what happened to china is just about as bad as what happened with, with ukraine. So i would say that president zelensky, if it were me, would i recommend that they start an investigation into the bidens, because nobody has any doubt that they werent crooked. That was a crooked deal 100 . He had no knowledge of energy. Didnt know the first thing about it. All of sudden he is getting 50,000 a month plus a lot of other things. Nobody has any doubt and they got rid of a prosecutor who was a very tough prosecutor. They got rid of him. Now theyre trying to make it the opposite way but they got rid so if i were the president i would certainly recommend that of ukraine. [reporters shouting questions] reporter [inaudible]. I havent but certainly something we can start thinking about because im sure that president xi does not like being under that kind of scrutiny where billions of dollars is taken out of his country by a guy that just kicked out of the navy. He got kicked out of the navy. All of sudden he is getting billions of dollars. You know what that call that . They call that a payoff. [reporters shouting questions] reporter [inaudible]. Well i leave that to the lawyers. I can say that schiff has now been proven to be a liar. Weve known it for three years because they have been trying to impeach for three years. He is a stonecold liar. I leave that to the lawyers. It is up to them to decide. The whole investigation is crumbling. Yeah . Reporter [inaudible]. I can, yeah, i can. I can. Reporter [inaudible]. Well, we have a real problem. Weve been hitting the taliban very, very hard. And as far as im concerned they still havent recovered from killing 12 people, one happened to be a Great American soldier from puerto rico. They still have not recovered, and they probably never will. [reporters shouting questions] port [inaudible] no, but i read Mitch Mcconnells statement yesterday. He read my phone call. He put out a statement that says that was the most innocent phone call he has read. I spoke to him about it too. He read my phone call with the president of ukraine, mitch mcconnell. He said, that was the most innocent phone call that i have read. I mean, give me a break. Anybody that reads it says the same thing. And only people that dont understand it is when they look at these fabricated, fraudulent statements made by shifty schiff [reporters shouting] reporter i think biden is going down, and i think his whole situation because now you may very well find that there are many other countries that they scammed just like they scammed china and ukraine and basically, who are they really scamming . The usa. And it is not good. And that is probably why china for some years has had a sweetheart deal with china rips off the usa because they deal with people like biden where they give the son a billion 1 2 dollars, that is problem why china has sweetheart deal, for some years they have been ripping off our country. Reporter do you support sb 260, College Athletes getting paid or side with with the ncaa or shoue more after federal law. Were looking at it very closely. It is under study. Reporter [inaudible]. Well see. They want to talk and well be talking to them soon. Well see. Yes . Reporter mr. President why did you recall the u. S. Ambassador to ukraine . Was she a problem . Why did you recall her . I heard very bad things about her. I dont know if i recalled her or somebody recalled her but i heard very, very bad things about her for some time. Not good. Going to florida. See you all stuart that is how the president ends impromptu news conferences. See you in florida. He walks to marine one. Off he goes. Let me recap. Two important subjects broached by the president there. Number one, the bidens. The president said the bidens are scamming and that the bidens are going down. He suggested that the china should investigate the bidens. Remember, hunter biden did reseven 1 1 2 billion dollars, not personally but put into a hedge fund i believe in china as the Vice President , as his father was the Vice President of the United States. The other thing he said was, look, china, china, if it doesnt work out, we have options. I want to bring in former reagan economist art laffer with us. Art, what do you make of that . If china doesnt work out we have options, does sound ominous, doesnt it . It sounds ominous but may be innocent as well. One of the options we have to withdraw some tariffs on china, to see if we cant pull them along with sugar rather than vinegar. I dont know what the options are he is talking about. I hope we get a deal with china. It would be huge for china and the u. S. T would be a major breakthrough for the world economy. Stuart Scott Shellady still with us, still listening to what the president had to say moments ago. Scott, the market came back. We were down 300. I think we have scott hello slade did i. Im here. Stuart the market came back, was down 300 down 125. Did the president have anything to do with that or the algorithm headliners done their work and bargain hunters coming in. What Keith Fitzgerald said, definitely bargain hunters came in there. We saw sentiment change, al goes stopped selling and started buying. I think we had hightech buying people covering shorts. We come back almost a full percentage point since i was last on 15 minutes ago. The market is very volatile and something you have to be careful of. Stuart as you sit in the trading post, can you see the big trades . Can you see the algorithms at work . No, i cant see them at work. I would have to have a different system for that, you know what, having done it for 31 years you can feel them at work. You can see sometimes algos change sentiment and we see markets react to them. You see typical telltale signs you talk about it, yeah, those are algos. Stuart do you think we have a shot closing the day higher . Is that possible, scott . After we just rally ad percent in 15 minutes, we have a shot at doing anything. All it takes a little bit, another tweet or something from the president , when he gets off the plane in florida, that could do it too. You know what . The news, even though that number wasnt what the market wanted, were looking to punish bad news, not reward good news, if there is Something Else with regard to china, market is quiet, it will take off. You have every possibility of being higher. Again it is so volatile it is anybodys game. Stuart scott, thank you so much. I want to get back to the market just a second. Look at yield on 10year treasury. Ashley coming back, 1. 52. Stuart 1. 52. So there was a flight into treasurys. Took yield down to 1. 51. Came back a little bit to 1. 52. That is not a marketmoving event at this point. Market moving took place earlier. We have Market Movement for the dow industrials. Down 300. Down 200. At one stage we were down 80 odd points. We were down 124 points. Let me do the math. In the last 2 1 2 trading sessions weve come down approximately 900 points. Maybe 940, maybe 950. Were coming back a bit more. Down 113 points. Were going to break but well have more for you after this. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. Stuart back down now, 154 points lower. That is. 6 . Were back to 25,151. Bob is here from the investment bank. Good to see you again. Give some advice to some of our investors. Our viewers, our investors, sitting here looking at 1000 point drop for the dow in 2 1 2 days. Give us some advice. What have you got . Im not an expert on the stock market, stuart. My buddy art laffer who you had on probably is good. You have to look at long term demographics there. There is not a lot of flexibility. There is reason for your concern stuart i know you ran for governor in connecticut. There is a slew of new taxes that take effect into connecticut. For example, new taxes on digital purposes, prepared meals. Shortterm rentals. Alcohol, not beer. Theyre taxing just about anything and everything. I want to know why. I wish i could tell you, connecticut even before these taxes is the second highest taxed state in the country. Our tax Independence Day is may 21st. You have to work from january 21st to may 21st just to pay off the tax bill. We had 40 years staffingnant economic growth. What is the solution of this new governor . Tax them again. It is beyond prescription here. Stuart itisnt the story state of connecticut desperately needs money to pay retired government workers . They have lavish pensions that the state cant afford to pay, that is the at the heart of the problem here, isnt it . It is. Tens of billions of dollars. As high as 100 billion. A variety of government didnt fund it. We need to structure that plan. It is not fair to the retirees. The money will not be about there. One in three retirees in the state pension plan, there will be nothing in the pension plan by the time they retire. This starts with fundamental tax reform. Art laffer, my buddy says it all the time. You cant tax your way to prosperity. Our last governor tried it, governor lamont. This is more of the same. He hides better, between grocery taxes expansion of sales taxes. You put it all together, this new governor is introducing one of the largest tax increases of the history of the state of connecticut, at the absolute worst time for us. Stuart why is the state of connecticut so consistently these days democrat . Well, we struggle in the big cities, stuart. You know there is a very democratic, you know, concentration there. I think we need to do a better job of articulating the message because if you look at bridgeport, the Poverty Level is still over 20 . Over 70 of the kids in bridgeport, connecticut dont test at age appropriate level in math. These economic policies that democrats say help the cities is actually hurting them. Connecticut was the only state in the entire country last year where the poverty rate actually went up. So you know, i just dont understand. I think a lot of cases these democrats are pandering for votes. They raise taxes, and we need more ways out of this. That is what we need in connecticut. Were not seeing it with this new governor unfortunately. Stuart before we to, give the forecast for the economy for the state of connecticut, as these new taxes, raft of new taxes go into place today . We already see it. We see businesses moving out. There is rise of minimum wage by 50 over the next few years. Businesses are moving out. People are moving out. Unless we change fundamental policy, if we have a downturn in the economy, it will be even worse. Weve underperformed one of the most vibe brand economies over the last two years. If there is change in the economy, it will be stuff for connecticut. Stuart bob, thank you very much for being with us. We appreciate it. Thank you very much. Thank you, stuart. Stuart were all about were all about success, american success stories. This is you. Our own susan li step sat down with mark cuban to talk about his personal success story. Susan 179th richest person on planet. Selfmade. His father never made 40,000 a year. I asked him what advice would you give those wanting to be the next mark cuban. Listen. I was as scared as everybody else. I had as much uncertainty. As much i was confident in one respect i knew i could sell, i knew i knew technology. It didnt mean i knew it would work. My First Company thinking, i have 15,000 in sales. Oh, my god will i last the second month. Getting to eight months in business. My goodness ive been in business eight months. It is terrifying. That fear also motivated me. It is natural to have fear and natural to have uncertainty. Not a reason to stop. Susan not bad with a man sleeping on the floor of a dallas apartment with six other people and using Credit Card Debt and teaching disco lessons to girls for 25. Before the dotcom crash in the late 1990s. Stuart he did well. He is a success story. Thank you, susan. Bernie sanders is taking a break from campaigning for health reasons. Joe biden will continue to deal with the fallout from the ukraine phone call. I say, this is my opinion. That means the democrat nomination is going to Elizabeth Warren. It is hers to lose. I will explain why that is good news for the president. My take on that is next. Pretty wild week on wall street for stocks. We do have some positive news on the economy. Jeffrey cleveland is here to calm down those recession fears. Back in a moment. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. 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The call is free and theres no obligation. You know medicare wont cover all your medical costs, so call now and see why a Medicare Supplement plan from a company like humana, just might be the answer. Stuart maybe im jumping the gun but it sure seems to me like Elizabeth Warren is real close to locking up the democrat nomination. Okay. I understand we havent even gotten to the third debate yet and the Iowa Caucuses are not until february, but look at whats happened just in the last few days. Bernie sanders has had heart surgery for a blocked artery. Hes still in the hospital. All Campaign Events, canceled until further notice. There are now obvious questions about whether a 78yearold can endure months of exhausting campaigning. Early this week, he held seven backtoback events in new hampshire. Tuesday night, the chest pains began. Another obvious question is whether voters will accept him as a potential president. The other frontrunner is joe biden and he may be the First Casualty of impeachment. He is collateral damage. All the attention given to the ukraine call has brought back the questions about hunter biden and the money he received in ukraine and china. This is already showing up in the latest polls. A plurality of voters believes mr. Trumps allegations against biden and biden has slipped to second place in some key states. It all happened so quickly, didnt it . But as of now, its Elizabeth Warrens nomination to lose. Thats my opinion. Next question, could she win a president ial election . My opinion, no. For two reasons. First, policy. I just dont believe america will elect a president , someone who wants to destroy our economic system. Elizabeth warren is a socialist. Her proposals would destroy capitalism and with it, the prosperity we enjoy today. Second, her demeanor, the way she comes across, anger is senator warrens frequent theme. Hating capitalism, the rich, the billionaires, wall street. It plays well to socialists but on your screens, every day for four years, anger is not so attractive. You have to be good on tv to win these days. Of course its very early but theres not much time left for moderate democrats to make much of a showing. Far left warren is now very likely to be the nominee and outside california and new york, democrats again, my opinion, should be very worried. The third hour of Varney Company is about to begin. Stuart all right, ladies and gentlemen. Pay attention, bottom right hand of the screens. We were down 300. Now were down 42 points. I would call that a bit of a comeback. Its a long day ahead, though. Theres still five hours of trading. Lets be clear about that. I want reaction to my rant there at the top of the hour. Who better than steve forbes, chairman and editor in chief of forbes media. First of all, do you agree with my premise that its Elizabeth Warrens nomination to lose . It is hers to lose and she could lose it. You may find somebody like bloomberg end up coming into the race or Something Like that. Stuart really . But in terms of the election, in terms of the election, i dont think most voters are going to want nurse rachet in the white house. Stuart thats harsh. No, it isnt. She reminds, that angry demeanor you hit in your editorial, people she reminds people of the teacher you didnt like, the one who was always scolding you, after you and as you say, that may appeal to the far left but voters dont want that. They want somebody who uplifts, looks to the future, is aspirational. Thats what obama did. Didnt live up to it. Thats what trump did. And hes trying to live up to it despite the mainstream media. People want to look to the future. She is always angry and she would do what she would put us on the road to serfdom. Stuart hold on for a second. Let me play you one or two sound bites from senator warren where i want to show, i think shes always angry. Have a look at this. We are going to tell the billionaire class in this country that not only are they going to pay more in taxes, they are going to pay significantly more in taxes. When you make it so big that you are in the top onetenth of 1 , pitch in two cents so everybody else gets a chance to make it in this country. Stuart i didnt mean to include senator sanders in that but he is also frequently angry, but hes sidelined at the moment for medical reasons. But i think that demonstrated Elizabeth Warren always angry, always hitting at people. I dont think americans want that on their screens every day. You have to know how to hit. Just contrast that clip with Ronald Reagan in his debate with jimmy carter. Knew how to land a punch but in a way you were with him, you laughed with him, you understood what he was saying, you understood his criticism and he always did it in a way in which he left you feeling we can do better. Thats what the voters want. Stuart you are a former president ial candidate. How do you feel about the republicans and President Trump getting the message out about the economy . Because thats their strong suit. We are still prosperous. Are they getting the message out in the right way . No. Theyre not getting the message out on health care which is why we got clobbered in 2018. We left that wide open to the democrats. Grandmas going to be thrown off a cliff. And on taxes. 2017, they talked about tax reform. What does that tell people . Nothing. Stick to tax cuts. Put bold new proposals, hes got the state of the union coming up, this impeachment thing i think is going to bomb. Already we are finding out about adam schiff. Also, barr is going to make his revelation, attorney general barr. I think thats one reason why we are getting all this stuff now. Some of those democrats know whats coming and its not going to be good for them. Stuart nice summation there. Steve, thanks for joining us. Good to be with you. Thank you. Stuart thank you very much indeed. Lets get back to your money. The loss on the dow has been cut from over 300 to now minus 20 points. Thats where we are. Jeffrey cleveland with us, chief economist at payden rygel. Lets get right at it. Everybody is worried about a recession. The slowing economy equals recession. So they say. What do you say . Well, stuart, its time i love times like this, because people, there are a lot of different views. Theres volatility, thats an opportunity for investors. The story really is driven by the manufacturing data that we saw early this week. I think investors should remain calm. The manufacturing data is not the most reliable indicator of the business cycle. Thats what you should keep in mind. Twice already, during this particular economic cycle, we have seen the ism manufacturing data dip below that 50 threshold without a recession following. So that was two false alarms. We have had dozens of false alarms from the manufacturing data since world war ii. Keep that in mind for investors. The weaker data we saw, too, its consistent with 1. 5 to 2 growth. Not a recession. Still positive growth. Stuart okay. Jeffrey, before we close this, i do want to by the way, the dow has just turned positive. Maybe they were listening to you. I dont know. But you just turned positive. Look at that. Market mover, jeffrey cleveland. Lets get serious for a second. Hong kong, city officials meet tomorrow, they may impose Emergency Powers which would give them vast authority to do all kinds of things, that would be china do all kinds of things in hong kong. Jeffrey, is the hong kong situation at all germane, does it have any effect on my money . Well, i would turn it around a little bit. Whats driving some of the social unrest in hong kong . I think you look at it, the hong kong dollar is pegged to the u. S. Dollar so they are importing u. S. Monetary policy, probably not appropriate for the conditions there on the ground over time so thats something to keep in mind. If you look at the cost of securing housing for a regular person in hong kong, a Service Sector employee, it takes years, decades, even, to get enough money to afford a flat, an apartment, in hong kong. I think Housing Affordability which is completely outrageous in hong kong has weighed on sentiment, will continue to, you know, push some of the social unrest. Thats the story going on. I dont think that affects the u. S. Business cycle, you know. I think the story for the u. S. Is fundamentals and well be fine here. Stuart okay. Jeffrey, thanks for joining us. Very important day and what you had to say may have had some influence on investors worldwide. You never know. Dont discount yourself. Dow positive. We are now up 30 points. 31 points. Its now positive. What a turnaround, right after 10 00 when we got that Service Sector indicator, we plunged. We were down over 300 points. We have come all the way back to a plus 20 as we speak. President trump says he wants ukraine and china to investigate the bidens. Will that strategy work for him . We are asking trump 2020 press secretary Kayleigh Mcenany on that. Stay with us. This is the third hour of this marathon. We are just getting warmed up. Limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Stuart what youre looking at is a reversal. On the lefthand side of the screen, corner there, can you see the red . Straight down, down 300 points at one stage, and now straight back up again, lefthand corner at the top of the screen, were up 11 points. Now then, weve got news on free trading, not in terms of international trade, no, but with the brokerage business. Another brokerage has followed in the footsteps of Charles Schwab and Td Ameritrade. Who is it . Susan etrade. They were forced to do it. Their competitors have done it and there have been smaller competitors that have been coming for all of these more Traditional Companies for awhile. Robin hood is the first that comes to mind. Etrade saying in fact that by eliminating this is actually the fees, its going to obviously cut into their profit so 75 million per the quarter is what they are not going to be getting but there were angry etrade customers on twitter complaining like listen, etrade, if you dont match Td Ameritrade or Charles Schwab, i will take my business to them. So they decided stuart heres my opinion. This is what happens when youve got zero cost of making a trade. You can buy a stock at 10, at 10 30, and you could sell it at 10. 01 or 10. 10 at 10 31 and you still make money because your transaction cost is zero. Deirdre sort of separate but related, the entire finance industry will be cutting Something Like 200,000 jobs in the next decade. Most banks now spending 150 billion per year right now on technology. Just this whole industry is compressing, compressing, compressing. Its all about tech and all of these Companies Either need to reinvent or reinvest. Stuart now, we just heard the president speak. He was outside the white house. He went right after joe biden and his son, hunter. This is all about their dealings in ukraine and china. Roll tape, please. Well, i would think that if they were honest about it, they would start a Major Investigation into the bidens. Its a very simple answer. They should investigate the bidens because how did that company [ inaudible ] if you look at it and by the way, likewise, china should start an investigation into the bidens, because what happened in china is just about as bad as what happened with ukraine. Stuart i do apologize for the background noise there. It made it a little difficult to hear the president. The bottom line is hes going after the bidens bigtime. The lady on the righthand side of your screen is Kayleigh Mcenany, 2020 National Press secretary. All right, kayleigh, hes chasing down the bidens, hes going right after them. What do you make of that . Yeah, hes going right after joe biden because joe biden is at the center of two really Big Questions dealing with corruption. I mean, how does ones son get these lucrative deals in fossil fuel over in ukraine when you have no experience in fossil fuels. In china, in private equity, when all the experience you have in private equity is working with your uncles fund that became the subject of many lawsuits. There are real questions here, as your dad, Vice President , is leading diplomatic relations with these two countries. We have to get to the bottom of this. Stuart yeah, but do you think this is a serious enough issue which the people feel seriously enough about to knock joe biden out of the race . Could it go that far . Yes. I think that this could be the end of joe bidens candidacy within the democratic field because you have a base in that field that really is averse to corruption in both parties, really, but certainly in the Democrat Field where they are trying to uplift people like Elizabeth Warren and Bernie Sanders and these antiindustry, anticapitalist candidates. I dont think they have much tolerance for that kind of favor doing from a former Vice President. I think it could be the end of his candidacy and the uplifting of Elizabeth Warren. No doubt. Stuart if you couple that, the difficulties of joe biden, and you couple that with the medical problems of 78yearold Bernie Sanders, my position is my forecast is that Elizabeth Warren will win the democrat nomination. What do you think about that analysis and am i right or what . I think your assessment is right. I think Elizabeth Warren is very close to becoming the nominee but i wouldnt count Bernie Sanders out. Look, first of all, our prayers and our thoughts go out to him as hes recovering, but if Elizabeth Warren stumbles and she has before with that dna test where she fraudulently claimed to be native american, if she stumbles like that again, you have Bernie Sanders waiting in the wing with the exact same ideology and a lot of momentum. So one of those two, but i think youre right, Elizabeth Warren seems to be the almost inevitable nominee. Stuart i hate to be pejorative here but i dont think americans will appreciate Elizabeth Warren, who is permanently angry whenever she appears on any screen. I dont think americans really like that. I dont think americans want that every day of their lives for four years. Look, im obviously feeding you good stuff here, kayleigh, but go ahead. Yeah, i think youre exactly right. Look, Elizabeth Warrens message might be more ripe when were in an economic downturn or coming out of the obama recession and that lag that we had there, but its not ripe now when you have the hottest economy in modern history. We learned paychecks going up, disposable income going up for millions of americans, the economy is good. Now is not the time to be Elizabeth Warren griping about the economy and in some cases, it seems actively rooting for a recession. Stuart i should be honest and fair here. Theres a lot of americans who dont want to see President Trump on their screens every day for the next four years. Lets be clear about that. Kayleigh mcenany, thanks as always for joining us. We appreciate it. Thank you. Thank you, stuart. Stuart a settlement will be funded for the victims of the vegas shooting. It will be worth between 735 million and 800 million. The stock is down only a fraction because its the insurers who will fund that payout. Netflix, down big. Analyst at needham says netflix needs to lower prices or risk losing subscribers, millions of them. Its the fourth worst performing stock in the nasdaq 100. Netflix down four bucks, down 1. 7 . Gopro, they make the small portable cameras, they have been plagued with shipping issues, specifically with their new hero 8 black camera. They cut their forecast for the rest of the year. The stock down 20 . Then we have tesla. Down after missing a delivery target, and down big, down 5. 6 . Tesla is back to 229. Its lost, what, 26 already this calendar year. More on elon musks ventures. Earlier this week, spacex unveiled their starship they say will take humans to the moon and beyond. Wondering what it looks like inside . We will show you in a moment. We are also going to be joined by Dan Henninger. A new piece from him all about the democrats obsession with impeachment and that one phone call with ukraines president. Dan henninger coming up next. This is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. With truecar, to sell just enter your license plate and see your cars value in real time. Sports package and low mileage . Nice. Within minutes, youll have a true cash offer, and you can head to a dealership and get paid, today, right now. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Sleep number 360 smart bed. You can adjust your comfort on both sides your sleep number setting. Can it help us fall asleep faster . Yes, by gently warming your feet. But can it help keep us asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. So you can really promise better sleep. Not promise, prove. And now, the queen sleep number 360 c4 smart bed is only 1,399, save 300. Plus 0 interest for 24 months on all smart beds. Only for a limited time. Stuart live pictures from hong kong. Its heating up again. Its 11 20 there at night. The authorities have been screaming at the people with the camera, get out, get out, but theyve not gotten out. They are still keeping going, all good. The important point to remember here is that tomorrow, hong kong authorities vote on taking Emergency Powers. It will be the first time in 50 years that theyve used them. Again, the important point here is that under Emergency Powers, china could deport people from hong kong, take them back to china, in secret, and try them. Ashley and search homes. Stuart and search homes. No masks. Ashley not allowed to wear a mask. Stuart nothing wrong with that, perhaps, but this would give them the kind of powers which were taken from them by the british when deirdre its about identifying organizers, about identifying who are these sort of Group Leaders who are fighting for democracy, so no mask, obviously brings that in. But then if they are allowed to enter your home, they obviously know who you are and where you live. Stuart bottom corner of the screen, hong kong protests start again. Oh, so true. Thats exactly what is happening. Longterm unrest, looks like it. All right. Check the dow industrials, please. Bottom corner of your screen. We are now up 11 points. There you have it. We are back to 26,000. Some new tariffs being levied. Chinesemade cabinets affected. Didnt know that. Edward, this is new. Tell me all about it, please. Reporter this is part of an antidumping investigation. The Commerce Department has found the cabinets are dumped on to the u. S. Market so they are imposing additional duty on cabinet makers. A select few are getting a 39. 25 tariff on their cabinets coming in. The rest are getting, get this, 262 tariff on those cabinets coming into the United States. The greater issue here, interestingly enough, is the administration pointing out that this administration has done more than 180 antidumping investigations and they say that is a 231 increase in the same time frame from the beginning of the administration to now as there was in the obama administration. Back to you. Stuart good stuff. Right at it there. Good stuff indeed. Now, let me update the china trade situation, because the president did talk about that this morning. As he left the white house on his way to florida for a health care speech, he addressed reporters and china came up, specifically he said if things dont work out with china, we have options. That sounded rather ominous to me. The stock market did not react. Normally if you get something negative about china trade, then you would expect to see the market go down. It didnt. It was reacting to something entirely different. But thats what the president said this morning. Tariffs are still with us. China trade talks will take place next week. Got that. By the way, the president also said the chinese should investigate hunter biden. What was he doing in china when he has no experience of hedge funds, which he was running in china . Next one, an inside look at spacexs new starship, built to transport humans to mars eventually. Deirdre . Deirdre i should say round trip to mars, because it doesnt just go in one direction, it has to come back and land as a spaceship, upright. This is the first time so our viewers are watching it now, that elon musk has released details of the interior. It can carry about 220,000 pounds of gear because as you know, to get to mars, it takes, you know, quite a long time. Its not just the moon in three days, not that that was easy. You need to have a lot of gear, you need to figure out how to recycle oxygen. To actually put people in mars orbit and come back is a really big undertaking. Elon musk, ever the idealist, says it can be done within this decade. Most Scientists Say with respect, im sure, that that is a complete fantasy. But elon musk, there he is, hes psyched about it. Its the first time he released the internal video. Stuart isnt that the rocket, the capsule that goes up . Ashley yes. Stuart does whatever it does and comes back again and you use it all over again . Deirdre yes. The whole key is to actually, whats difficult to stick is the perpendicular landing. Ashley stick the landing. Stuart we like to keep you up to speed with whats happening all over the world. Back to hong kong. Its heating up as we said. What youre seeing there is iron gates, i dont know what theyre across. Deirdre subway. Stuart protesters made a habit of demonstrating in subway stations. Thats because they want to really foul up traffic in hong kong, and because a subway station was the site of an attack by thugs employed on behalf of china to beat up the demonstrators. They have never forgotten it. Thats why they go back to these train stations to disrupt and protest. Thats what theyre doing right now. Riot police, right behind that barricade. Earlier today, we saw the Police Standing around but theyve got guns on them, as they do, and we believe they have got live rounds of ammunition in those guns. Deirdre i think the fact also, this is i think by my count, we are around the 17th week of this. So its just not settling down and it ebbs and it flows, but it is certainly not going away. Stuart the height of the violence was on the night of october 1st. Ashley yes. Stuart 70th anniversary of the founding of the peoples republic of china. That was the height of the violence. That was the night when a demonstrator, i think it was the night when a demonstrator was shot. Deirdre an 18yearold. Stuart 18 years old. Ashley survived. Stuart he did indeed survive. But thats a nasty shot for hong kong when they are shooting people and ashley if they vote for these emergency orders, then it really cranks it up. Stuart we have news for you. It is 11 30. New details on that roundtable discussion between ivanka trump and googles chief Sandar Pichai. Deirdre google is working with the u. S. Government, it is pledged to americas workers and essentially, what this is is a program so they are pairing with between 30 and 100 Community Colleges and you can go online and you can be trained to be an i. T. Professional. It is essentially the goal is to provide 250,000 people with training and you dont need a fouryear degree but in six months or less, you will have the skills to go and get an i. T. Job. Just as a point worth making, even in the last labor department, i know we will be looking for that jobs report tomorrow, theres still about 7. 5 million jobs that go unfilled in the u. S. , so this is googles way of wanting to work, i feel like quite cleverly as well, with the administration. It kind of keeps them maybe a little bit out of the crosshairs. Its seen as more cooperative and contributing to the u. S. Economy. Ashley the relationship between President Trump and google has been a little awkward on occasion because some google employees object to working for the american military, that was a nasty episode not too long ago. But now, ivanka, who may be a future president ial candidate, i dont know that for a fact but im speculating, getting together with Sandar Pichai from google. Deirdre there are open i. T. Jobs in all 50 states and they will try with americas pledge to workers stuart 250,000 open i. T. Jobs. Deirdre across 50 states. Stuart in america. 250,000. Ashley thats a goodpaying job. Stuart wellpaid jobs. Thats right. Were not pumping out enough computer scientists out of our colleges. Ashley apparently not. Stuart too many art historians. Ashley French Literature. Deirdre im going to take that personally. Ashley im sorry. Stuart you will get emails. Wait a minute, did you study French Literature . Deirdre i studied english, french, yes. Stuart we didnt know that. Attention, alphabet investors. Your stock is up a little bit this morning. Im going to move on. By the way, big guest on the show tomorrow. Not this show. On fox business tomorrow. Ivanka trump will sit down with trish regan tomorrow night, 8 00 p. M. Eastern. All right. Take a look at the tenyear treasury yield. Moving lower this week. Look at it now. Its been up and down. Extraordinary stuff. Now its 1. 57 . A few minutes ago, it was 1. 51 . Look, that doesnt seem like much of a move to laypeople, but if you know anything about the bond market, that is an astronomical move with all kinds of money made and lost. By the way, ubs says the fed, if the fed cuts rates, it wont save the stock market. Okay. Market watcher Heather Zumarraga is with us now. Heather, welcome back. Obvious question, are we if we lower Interest Rates, if the Federal Reserve cuts rates, lets suppose its dramatic, 50 basis points, if they do that, what do you think the impact is on the stock market . Well, look, ill have to piggyback off ubs and what theyre saying, that the recent two Interest Rate cuts we have had this year, which are the first Interest Rate cuts we have actually had since the 2008 recession, have actually not had a positive impact on the market. The market continued declining. As you rightfully just pointed out, the treasury, the tenyear treasury is also following market direction or vice versa, meaning every time bond yields go down, as does the market. As bond yields go up, as does the market. Stuart you are almost always optimistic for the market on this program. I have to be. Stuart you dont have to be. Somebody has to be. Stuart you dont have to be. I want your honest opinion here. Are you still bullish about the market . By that i mean do you think we might hit new highs this year . Oh, my gosh, i dont think well hit new highs this year. But i dont think we are going into recession. I know that theres a lot of negative Media Attention on the markets right now, saying that the trade tariffs are turning the economy, pushing us into recession, and im not denying that it has an impact on the economy. The ism data was weak in the Manufacturing Sector as well as the Service Sector this morning, and that does matter, but it doesnt indicate a recession. If the consumer is still strong, the National Retail federation saying they expect strong holiday sales and the consumer is still showing signs of life, and if the labor market is still strong, then i dont see any recession on the horizon. Stuart okay. A lot of our viewers want advice at this point. We have lived through all kinds of downturns on this program. Give them some advice. Most of our viewers, i think, are longTerm Investors. Theyre not shortterm traders. Theyre not in and out at a moments notice. They will buy something and hold it for a long time. You think they should do any selling at all . I guess you are specifically asking about your microsoft stock. Stuart no, no, no. Certainly not. Look, supposing youre in your 70s. Im in my 70s, okay . Supposing other people are like that you dont look it. Stuart thank you. Youve got some money stashed away. You made a nice profit. Why not sell a little bit of your Stock Holding and sleep well at night . Whats wrong with that . I completely understand, if you are up a lot. If you look at the s p and the dow that are up substantially year to date, then it may be prudent to take some profit if youre in your 70s or a baby boomer but again, i do not think we are going into recession and the key sector to watch is consumer staples. You look at what the Retail Sector is doing, and the jobs data. If the jobs data is holding up okay, the pace of hiring may slow down but thats because you have a very tight labor market. People are employed. More people than ever. You have unemployment rates at 50year lows so it still pays to hold dividendpaying stocks. Youre not going to get any type of return in bonds or tenyear treasury. But yes, okay, you might be prudent to take some profit from your microsoft. Stuart no, im not going to. Okay. Heather, thanks very much. Fair enough. Stuart look, the jobs report comes out at 8 30 eastern time tomorrow morning. I want to alert our viewers, very special guest coming at 9 00 tomorrow. That man on the screen, larry kudlow. National Economic Council director, top economic adviser to the president , and he will be on the show right there, 9 00 tomorrow morning, to comment on those numbers which we get at 8 30. Larry kudlow, everyone. Next one. Airbnb, set to go public next year and they are hiring some big name backers. Deirdre sources say Goldman Sachs and Morgan Stanley and i just want to note that airbnb according to our sources are going to do a direct listing. So we saw slack do this, we saw spotify do this. Actually, what this means is fewer fees for the Investment Bankers who more or less are middlemen. Were not going to cry for them. Spotify still paid about 85 million in fees at the time, slack paid about 22 million. But when Companies Used to go public it used to be over 100 million easily in fees. Thats on the low end. Airbnb worth about 31 billion. If that doesnt mean anything, i understand contextually, marriott was about 40 billion. Its right in between and for people who dont know, you go online, find a place, rent it. Stuart i think airbnb is the most eagerly awaited ipo in a long time, because its a brand new industry. They lead the field. Deirdre creative idea. Stuart yes. Creative idea. Ashley facing some regulations in the biggest city in the world. Deirdre new york city. Ashley oh, boy. Deirdre the company sold 1 billion in rev mu fenue for the Second Quarter but dont release whether or not theyre profitable. Stuart they have regulatory hurdles but i still like the idea. Check peloton. They are below their ipo price, way below it. Down 4. 5 today. It went out at 29 and now they are at 21. 58. Thats peloton. How about uber . They are launching a new platform that will help match temporary workers like chefs and cleaners with businesses who need them. Its called uber works. Its out in chicago tomorrow. They are rolling out something new in new york city . Have we got that . Ashley we do. Its the uber chopper. Now, it has been available for a number of months but only to the top tier uber customers. Not sure who they are. Now we can all join in, apparently. We are allowed to book a helicopter from downtown manhattan, you put in, literally like you are ordering an uber on your phone, you get an app for it. They dont give you a license number. They give you the number on the tail of the helicopter. You go there, its right around 200. 199. It will get you to jfk, by the way, anyone who has lived in new york and tried to get to any airport, its a nightmare. Surge pricing, if you take an uber car, could be up to a hundred bucks to get to jfk. Think about it, it will take you eight minutes to get stuart 200 . Ashley eight minutes or thereabouts to get from the southern tip of manhattan all the way to jfk and they pick you up and take you to the terminal. Very good indeed. For an extra hundred bucks it seems almost worth it. Downside, cant take a load of luggage. Maybe one, for the ladies, one purse and one carry bag actually fits in the overhead bin. Otherwise stuart i love that story. Apples chief tim cook sending a brief to the Supreme Court in defense of the dreamers. In other words, tim cooks getting into the Political Action on immigration. We will tell you exactly what hes saying in a moment. Thursday, that means wall street journal guy Dan Henninger is on the show. Hes got a new piece. This week its all about the democrats obsession with impeachment. And that one phone call with ukraines president. Mr. Henninger is next. Cologuard colon Cancer Screening for people 50 and older at average risk. Ive heard a lot of excuses to avoid screening for colon cancer. Im not worried. It doesnt run in my family. I can do it next year. No rush. Cologuard is the noninvasive option that finds 92 of colon cancers. 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And if you call us today, youll only pay 149 an over 50 savings. When i came in, they thanked me for my service. I said thank you for yours. Life line screening. The power of prevention. Call now to learn more. Stuart apples chief tim cook, hes getting back into politics, specifically the immigration debate. What is he saying . Ashley tim cook and the dreamers. A 50s act. Tim cook and the dreamers. He sent a very passionate letter to the administration, basically going to bat for the dreamers. He says, tim cook, there are 443 dreamers working at apple. They come from 25 Different Countries on four continents. Hes making the appeal saying we did this statement, we are making this move because dreamers embody apples innovation. He also goes on to say it is the moral thing to do. What does it say about us as people to turn our backs on the dreamers now . Hes making that appeal with apples senior vp. Making a strong case. He has kind of an in with mr. Trump at the white house. Hes had dinner there before, hes well connected. Stuart okay. I just want to read the audience a quick headline from the New York Times. Bear with me, please. As you may know, President Trump earlier today urged china to investigate the bidens. The headline in the New York Times reads trump publicly urges china to investigate the bidens. As if theres something wrong with that. Im not sure there is. But it looks like theres something wrong when you read the New York Times, of course. All right. It is thursday. That means Dan Henninger is here. Hes got a new article in the wall street journal called on your screens, democrats loss in ukraina. The democrats obsession with impeachment and the one phone call to ukraine. How did we get there . We thought we were in ukraine. It was only about ten days ago, stuart, that nancy pelosi announced she was going to commence an impeachment inquiry and the reporting then was that the democrats were moving forward because they felt what was going on here with ukraine was, in their words, understandable. According to the transcript, President Trump called the president of ukraine, volodymyr zelensky, had a conversation in which he urged him to investigate a political rival, joe biden, which in their minds, was an impeachable offense. Okay. We get it. We understand it. In the time since, what has happened . We have gone from ukraine, a real place, into what i call ukraina. Same place we were with russian collusion. You have adam schiff carpetbombing the administration with subpoenas for all sorts of things. Youve got the press down in washington running day after day of microscopic stories about details about this and that, people like this comeback with carter page and george papadopolous, that sort of thing, and the public sits out there dazed and confused saying whoa, i thought this was just about that conversation with the president of ukraine and now it is morphed into what i call ukraina. Stuart no one can follow the intricate day to day movement. Who spoke to spoke and when and what did they say. Did they really say that . Wheres the transcript . Is there a full transcript . Who could possibly follow this . It is exactly like russia, russia, russia. We went through it with russia. Then there was obstruction of justice. We went through it with trumps taxes, even stormy daniels. The public gets beaten down by these constant projects to try to bring down donald trump. This one which was supposed to be simple and quick, impeach him, vote in the house, send it to the senate for trial, put pressure on the republicans over there, is now become this sort of morass. Stuart i think it reflects badly on all democrats and in particular joe biden because we opened up that can of worms of what hunter was doing in ukraine and china. Exactly right. There are elements of what hunter biden was doing in ukraine or china that are real and no doubt, joe biden does not want to have in the news regularly. But theres no way to avoid that now. Stuart Dan Henninger, ukraina, thats a word that will live forever. Dan, thank you very much. I will read that article. Its good. Pepsi, earnings released this morning. Their pricey boosted advertising has paid off. Sales are up 4 . Revenue from snacks up more than 5 . The stoick is up 3 . Pepsis got a winner right there. Different story at Constellation Brands. Huge laiquor and beer company. They just posted 525 million loss on their investment in cannabis. Deirdre they have a 38 stake in Canopy Growth and apparently sales in canada, they are off to a slower start. Its a more difficult rampup than many had believed and that 38 stake in Canopy Growth is really hurting constellation. You mentioned that 500 million plus loss for the Second Quarter. They also cut the companys full year earnings by ninefold. Thats why the stock is really being hurt. Stuart its the weed business, the marijuana business, that did in a liquor business. Deirdre which is odd because a lot of people were looking to this particular liquor business to diversify, and saying marijuana would be the next step for people for recreational use, so there were a lot of analysts who i would say sort of cheered the acquisition. The stock did pretty well during that time. Actually, its been up in canada. Ashley they let their ceo go, because they felt administratively they werent headed in the right direction. To deirdres point, its been hard. Canada legalized Recreational Marijuana use across the country, but getting supplies to the stores that sell it has been harder than they anticipated. Stuart we havent even discussed the vaping problem. Ashley yes. Stuart a lot of people in america and in canada vape marijuana. Deirdre right now. Stuart but now weve got this report that vaping can result in chemical burns on your lungs like mustard gas from world war i. Ashley because you put other things in it. Deirdre i was going to say, ecigarette makers have never said you should put marijuana in this. I mean, thats peoples choice. Stuart but its related to marijuana but we havent seen the full impact of that yet on companies. 193 on Constellation Brands, down 13 bucks. Got a new report, according to it, america spent more money on taxes last year than on food, clothing and health care combined. We will break it down for you, thats a promise. We are big on taxes here. Back after this. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. Stuart look at that. The lefthand corner, thats the dow intraday, means its Movement Just this day, way down at 10 00 when we got the Service Sector indicator. Straight back up again in the green, now ever so slightly in the red. Were down 43 points. Lets get to that story on taxes, shall we . We spend more on taxes than food, clothing and health care combined. I knew it but i want ash to break it down. Ashley okay. Here it goes. Your average tax payment would be 18,617. Stuart income tax. Ashley social security, state and local income taxes, property taxes. Thats what you spend right there on your basic necessities as you said, food, clothing, health care. That comes in at 14,758. Should this come as any big surprise . No. Its been like this that you are spending more on taxes than your basic needs for at least the last six years. Stuart i have been told that for each of the last six years. Ashley is this ever going to come back again . No, its always going to be that way because thats what the government does. It imposes a tax, says its only temporary and before you know it, its permanent and its rising all the time. Thats the way it goes. Stuart you might think the 1 would be paying less after President Trumps tax cut. Ashley no. Stuart in many cases, if you live in new york, new jersey, connecticut, illinois, california, a couple of other states, 1 ers actually pay more because of salt. Did you know we pay more in taxes than health care, food and what was the other one . Clothing. Deirdre i think electricity, telephone, they added in a bunch of things. I had no idea. No. Stuart you chuck all that lot in, we still pay more in taxes. Deirdre still pay more. Stuart can you imagine . We just did a story today on connecticut where they introduced taxes today on everything. Ashley everything. Stuart including, whats that, the Radio Service . The music . Ashley npr . Stuart spotify. A tax on spotify in connecticut. Prepared meals. You get a prepared salad, tax it. Deirdre people are leaving that state in droves. All you have to do is look at the Real Estate Market even in upscale towns, people are really leaving there. Ashley dont breathe in connecticut. They will tax you for it. Stuart connecticut used to have no income tax. Only came a republican who imposed the first income tax in connecticut and its been there ever since, and it keeps going up. As the saying goes, there are only two things certain in life, death and taxes. More varney after this. Announcer fidelity is redefining value with zero account fees for brokerage accounts. And zero minimums to open an account. At fidelity those zeros really add up. Maybe ill win saved by zero. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Stuart there is a fight over money between a couple of the streepers. I do not understand this but deirdre does and she will explain it. Amazon and disney are at a standoff. Amazon wants some of the ad revenue from disney apps, especially fur accessing whatever screen that you are on through a product that amazon makes. I will put fire stick as one of them for example. Stuart okay. Essentially the Bigger Picture all of them are fighting over hardware, all of them are fighting over content. If i am disney i produce content, what you have have a bunch of amazon devices you want to watch disney content. Disney says well knot give you any revenue. If youre a amazon hardware person, you are annoyed. You want to watch what you want to watch on the device you want. Stuart neil, it is yours now. I didnt wrap up the day. Neil the happiest mace on earth, they can be nasty. Stuart oh, yeah. Neil get in a battle with mickey. No. We warned you around here about a scary october, that is what weve got. Weakness in the Services Industry fueling something weve seen in the manufacturing side of the economy. That had a lot of folks worried, the worried that the dow was off better than 300 points. We sliced that mightily. The stocks are off. Financials and industrials are