Arizona man missing since flash floods hit a popular swimming pool. Even the research and rescue people could tell they were just in awe. They were caught very off guard. They dont know what to do. So everybody was just surprised. It was horrible. The latest on the intensifying search. The companys stock is surging after subscriber growth was 2 million more than it. Breaking down the numbers as the stock trades at 10 right now. But as the they will set features indicating a higher opening but a big day in terms of secondquarter earnings. We will have all the numbers for you. Health care coming out as we speak. In europe this morning, indices look like this. Really a mixed market this morning. Ft 100 up this morning. Dax index down half of 1 . In asia, mixed market to report. The shanghai composite up a third of a percent. And he came japan down two thirds of 1 . Winter has come and things are heating up for hbo. The game of thrones season premiere broadband coming up. Joining me to talk all about it, Dagen Mcdowell. Former home depot ceo, bob nardelli with us and political analyst kirsten hoglund is with us. Good morning. Dagen seven years and then maria nothing. So now it looks like Mitch Mcconnell is going to move ahead with repeal. Republicans voted on the repeal in 2015. If you cant get a replacement together today, can you get one together in six months . Rand paul came on the show and said this is not a repeal. It looks too much like obamacare. Taxes therein there, subsidies and there. Dagen senator michael is one of those that fell away and said im not going to vote for this. He indicated it was because in part by tax increases were not repealed in the bill sitting in front of the senators as it is now. Even talking about this for weeks. Dagen i dont understand conservatives who can basically vote for president obamas tax increases. I dont care if it on the wealthy or not. I cannot imagine a conservative who does that. Dagen they were all willing to do it. Is this a situation where the politicians are worried about the next election to fall away from their commitments and are they now thinking about constituents in how they vote and how theyll be of the other unelected or is the real content issues says you are saying . Dagen people were expecting dean heller who is up for reelection. The senator from nevada say it was won by Hillary Clinton to be one of those senators who said yesterday, im not voting for this, but it wasnt him. It was moran and mike lee. I was kind of a surprise because senator moran has voted with the more traditional republicans. He voted in line with them in mike lee has voted with ted cruz. But those two senators say and that took some people caught by surprise. The top story of the morning, alabama senator but press secretary under george w. Bush fleischer is here. Herman kaine is your Property CapitalResearch Analyst bove i said you will not make any money. Itll saw this perspective. Anyway, we will get into that. Our top story right now closing the deal. Mitch mcconnell now says republicans will repeal obamacare with the delayed replacement. The move after two more republican senators come unlikely if you taught in jerry moran of kansas said last night they could not support legislation. The total number of no votes to four and not fall short of the number needed to pass it. President trump urged lawmakers to move forward and republicans should just repeal failing obamacare now, work on a Health Care Plan from a clean slate. Dems will join in. Thats the question now. If they were to start fresh, how to clean slate, do democrats participate in governing . What do you think . I think they have to. I would like to see the Republican Party get their act together and be more unified. If the content is not exactly right, they get it right. You were talking earlier about the Health Care Bill affects people as opposed to taxes. If you repeal it and you are leaving people vulnerable, there will be people more angst about repealing something and not knowing whats going down the road if you get the delay six to seven months. As a citizen i would be worried about that. Thats a political calculation. 2018 approaching quickly and if conservative senators vote for a full repeal, theyve got to go back to remember the angry town halls . Now that grassroots impossibly from the last. By pressing the gop. Real conservative grassroots are the liberal left, we have nothing to replace it with and its already very unpopular bill that holds very poorly with one of the reasons they couldnt unify the gop. Dagen they couldnt explain it to anybody. It was totally off message. They repeal about his solid play in good messaging. Dagen a headline in the New York Times today absolutely wholly agree with that or news analysis. The old truth trips at the gop. The benefit is hard to retract. This is a giant expansion of medicaid. You have these republican senators in the biggest voice in the nation has been john kasich, the governor of ohio. He does not want to give back the money, the expansion money in any way, shape or form quite frankly that was given to the states by obamacare. Even though its not equitable. There has been a fundamental shift about how health care should be delivered to people. And so, we are now approaching a truly fundamental shift in our health care. Our entire health care system. This is helping maria is never health care reform. Of you want to reduce cost, no matter what the Insurance Market does come youve got to address the technology innovation. You got to address all of these things which know its even talked about. The other thing is 222,000 jobs. If you look at the last six, seven months, people are getting employed. Dont know how much is being covered with health care as they get employment opportunities, but that has to affect the whole issue when they talk about 10 Million People unemployed or Insurance Coverage as jobs are created to put people back to work again. Some of those will be covered by insurance. Maria as a businessman, bob, when you are running chrysler car running home depot, general electric, you saw the effect of the cost of health care. Characterize for us obamacare on a businessperson and what that will dictate, how that will dictate your behavior. No question it added tremendous. Before obamacare, corporations across the country were looking at how you get more employee participation. In other words, copay. How do we look at reducing, the cost of the drugs and whats delivered out there. You are exactly right when you talk about once you get it, its hard to take it away. Youre always looking for tradeoffs. If we reduce this, what can we give you over here kind of an off day. Its really critical part. Maria and if youve got x number of dollars on health care, maybe youre going to hire less, invest last input those Big Decisions off. One company we were looking up from a priority equity standpoint. 40 million in workers comp being covered by this insurance, either through the company or outside. It is a big factor in running the corporation today. You have to be thoughtful about your delivery. Just like you said, once you put that out there, nobody wants to take it back. Maria the thing about medicaid if they have grown so much over the last eight years. You say once you get it, you dont want to take it back. The truth is many people in the medicaid Entitlement Program that shouldnt be there. Maria that was the old strategy of obamacare that you make medicaid available to a much larger part of the american population. So it isnt just for the disabled and the very poor and impoverished women. It is the largest single insurer in the world. It is bigger than the National Health service in britain number one. It is grown to like 75 Million People in the United States. So essentially what this republican bill in the senate was doing was raising taxes, standing by obamacare taxes to help pay for insurance for ablebodied working adults. Rather than changing the Health Insurance system so Health Insurance becomes more affordable for the very people in putting the burden on them to buy Health Insurance for themselves, they provide them with government Health Insurance. Thats the kind of ideological divide you saw develop with rand paul. So divided. Permanently and ideologically, not a lot of shared values in the gop right now. Maria a dagen is saying is to be messaged out. Someone needs to ask when we are not cutting medicaid for the impoverished, blind, pregnant did this program has expanded that we are trying to get it back to size. In fact, the idea was the states are reimbursed for the traditional medicaid recipient. They are reimbursed at a 50 , 52 , but with the new enrollees can ablebodied adults, they were being reimbursed at close to 100 . So they were trying to create some equitable divide between enforce the governors to make hard decisions about how you are going to comfort individuals and provide the most needy. The most needy get in the short end of the stick. To make you see this all the time. Its called creep or sour cream, benefits, you never go back to zero days. Theres got to give a little bit more. Theres an entitlement culture out there. You not change that in Corporate America . The financial crisis and to designate. You saw a lot of companies rates as their business. That was a crisis. This is a crisis in terms of Health Care Costs in this country and the loss of access images shows the difference between private business and government. Government doesnt treat it that way. What did you say last week to one of our guests . Get on this day. You had all the numbers when medicaid goes broke, medicare and social security. Dagen they will pay out less than 90 cents on the dollar and they can even fix medicaid. Maria there you go. A lot to talk about this morning. Passengers nationwide, how the writing of a nap will come pete with less. Now you can give your driver. Game of thrones is he not yours smashing ratings from the season. A short break. Back in a moment. When i received the diagnosis, i knew at that exact moment, whatever it takes, wherever i have to go. Im beating this. My main focus was to find a team of doctors that work together. When a patient comes to ctca, theyre meeting a team of physicians that specialize in the management of cancer. Breast Cancer Treatment is continuing to evolve. And i would say that ctca is definitely on the cusp of those changes. Patients can be overwhelmed. We really focus on taking the time with each individual patient so they can choose the treatment appropriate for them. The care that ctca brings is the kind of care ive wanted for my patients. Being able to spend time with them, have a whole team to look after them is fantastic. I empower women with choices. Its not just picking a surgeon. Its picking the care team, and feeling secure where you are. Surround yourself with the team of Breast Cancer experts at Cancer Treatment centers of america. Visit cancercenter. Com breast Appointments Available now. Maria welcome back of the hunt is on for one man still missing. Show for some the story now. Good morning, maria. Its being called one of the deadliest wash floods in history. The family gathered in a popular swimming area in the forest just looking to cool off and celebrate swept up by nine of the Family Members now dead. One man, father remains missing. They give the family no chance. More storms expected in the area later on this week. Uber rolling out its end up Tipping Service and they will do it nationwide as well. The move after uber launched the future in minneapolis, seattle and houston. This is something uber drivers have wanted for some time. Writers can take the preset amount. One, two, 5 for us will choose any amount you want. We have this for you. Weve seen the making. Hes coming for us. For all of us. According to preliminary nielsen figures, 16. 1 Million People watched the show sunday night. A 50 jump from last year. Hp is saying that sunday show was the much buzzed premier and the entire network history. Our reappeared game of thrones. Maria unstoppable. Thank you, cheryl. Netflix is blasting expectations as well. The biggest trimming services next. On fire again. A trip to space without leaving the couch. Spectacular video from nasas flight over pluto. That is up next. Back in a moment. [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Maria welcome back to netflix rose after the latest report. The key number of subscriber growth came in at 5. 2 million. Nearly 2 million more actually expected your joining us to talk about that, create Capital Management in cio mark use code. Surprised by netflix . Not really surprised. Talking other internal meeting about it nations than they really need to have subscriber growth and they really hit it out of the park. Trinkets of stock in terms of valuations when you look at the other names up there, even though attack has come off of the highest, which used to commit new money to the area . Its tough. The valuation of netflix in particular is extremely high. 50 times enterprise value. Really, really high. As long as they keep executing and disrupting their competition, we think its very attractive. Netflix is almost on deaths door. They fought this and they just upgrade their facilities, move to a bigger enterprise. My experience that this is whether its is netflix, hbo, others with the distributor. The big films are still going that way, but a lot are being produced going directly in bypassing distributors and therefore getting more financials back into the projects. A little bit like amazon. Time management. When i grow up you had to be in your chair at 8 00 tuesday night to watch happy days. You dont do that anymore. You watch tv when you want chemistry when you want. The flexibility in the freedom plus the content quality is so high. Billions on showtime, really great content. They make sure they get the content. That actually does raise a central issue for netflix in all of these content providers is that the quality go down as theres more players competing for the content or you end up having to overpay for mediocre content. They canceled some shows, but they are going to spend 6 billion on original content this year. So far in the subscriber numbers can afford million overseas, 1 million in north america for the quarter. They been able to deliver content to attract a new subscribers. At what point could that change . The central question. Maria they are writing big checks for content, producers. The traditional guys are worried. Dagen in your face but getting into original content. Anticipate either apple by something or billions and billions upon content. Rumor is going to buy disney. What do you think . That is a great anchor tenant if youre going to build a media empire. Theres a lot of companies been part of the cash will eventually find its way into the market and thats a good place to start. I just took my sixyearold to disney and i could not believe how crowded it was. Maria for a lot of years actually. You talk about other earnings. But god bank of america, Goldman Sachs and second order. What do you think . It will be slightly disappointing. A lot of people got really excited. Doubledigit growth. Probably not going to happen were spectacular firstquarter numbers, probably less spectacular. 15 on profit. So far tracking up 15 . Single digits, maybe even 54 . Maria when you look at facebook and amazon. Everybody loves them. I like the second a few added in etouffee and i like apple. Ultimately, profits matter. Apple for example made more in the Fourth Quarter last year that amazon never made. The relative valuation i like those. New phone coming out will be a disappointment for apple. Thats certainly possible. They tend to be onagain and offagain. Its this will be a major redesign. Apple historically if you look at the history, people poohpoohed the amount spent in the changes and upgrades and somehow when they release, say ive got to have it. Ive got my seven plus, so im pretty excited. They agree with you the incremental changes in the rds are the even numbers, i dont know. Thousand dollars copy is a big number. It used to not hate your pocket book because it was in your subsidized phone bill. Now suddenly you have to pay that. There is an interesting head get a onetime boost to verizon and at t. Those stocks went way up high. People are realizing the onetime earnings boost unsustainable. Is there reason to say i will sit on the sidelines for the summertime and technology . Not more money can be made over the near terms. Our view is that my time would be the last cathartic move up into the fall. We actually get very nervous coming in to the fall. You get historical patterns, salad go away, come back on ledgers day. That usually plays out. This time will play out a little different in that there is a low volume output happening with all the good news for perceived good news. We think it could rally through july and august and have people come back for valuations and say i think i need to sell. We are worried about a downturn in the fall. Train to well be watching now coming up, tension venezuela. Donald trump threatening to take economic action of president maduro creates an assembly to rewrite the countrys constitution. He suggested sanctions. Subway gets a makeover. The items straight ahead. Back in a moment. I needed something more to help control my type 2 diabetes. My a1c wasnt were it needed to be. So i liked when my doctor told me that i may reach my blood sugar and a1c goals by activating whats within me with onceweekly trulicity. Trulicity is not insulin. It helps activate my body to do what its suppose to do, release its own insulin. I take it once a week, and it works 24 7. It comes in an easytouse pen and i may even lose a little weight. Trulicity is a onceweekly injectable prescription medicine to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. Trulicity is not insulin. 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No. You can leave worry behind when liberty stands with you™. Liberty mutual insurance. Maria welcome back, happy tuesday. Good Tuesday Morning to you. Im maria bartiromo, it is tuesday july 18th, top stories right now 6 30 a. M. On the east coast. Standing up for democracy. The u. S. Is threatening venezuela over the socialist governments plans to rewrite the constitution. The United States will not standby as venezuela crumbles. Strong warning to the nations government coming up. The last top ban lifted to protect passengers on middle eastern flights. Subway look chain. Getting hightech makeover amid slows sales. New feature coming to a store new year. Accidental loan business, how an error could wipe away 5 million worth of debt for thousands of College Students and futures indicating a mixed opening for the broader averages today. We are all about earnings today. Secondquarter earnings flowing. S p 500 exactly where it closed on friday. In europe up the board even if its just fractional. In asia overnight, markets were mixed as well. Fractional moves. Plutos moment in the sub. Nas as nasa released pictures of planet like youve never seen before. The white house threatening the country with sanctions if the socialist government led by Nicolas Maduro rewrites the constitution and consolidate power. 7million venezuelans voted against on it. The vends wellan people made clear that they stand for democracy, freedom and rule of law, yet their strong and courageous actions continue to be ignored by a bad leader who dreams of becoming a dictator, the United States will not standby as venezuela crumbles. U. S. Will take strong and economic actions. Joining many me to talk about it general jack keane, general, always a pleasure. What kind of message does this send . First of all, we are not standing oddly by like the Previous Administration did. Weve had 18 years of socialist Big Government in venezuela and its really come crushing down on the people there. The economy is in the tank, inflation is out of control, currency devalued. Maria, they have significant Food Shortages and lack of medicine supplies is critical. Thats why the people have been in the streets now for weeks and months demonstrating against this regime. So the fact that we are taking the stand its a strong message and something that we should do. The moral voice of the United States is very powerful when we use it. Maria why is it that past president s were unwilling to get involved . Its fascinating to me. When you had a leftist government in south america, latin america we normally look the other way. Thats what took place here. Venezuelas closest ally is cuba. Second closest ally is iran. Maria trufer administration confirming late last night that the nation continues to meet the conditions of the nuclear deal ahead of midnight deadline but the u. S. Viewed for new sanctions and supporting unrisk in the region. Your thoughts there. Does this come to a head . Its going to eventually. Theres no secret that the administration is opposed to this deal. The president when he campaigned said it and said it sense that its a lousy deal and everybody that supports him on National Security team feel the same way, the problem is this, six other signatures on that deal and the fact is that iran is complying in the minds of all of those people who signed it and the investigative authorities that are supporting it that iran is adhering to the tenants of the deal. All that said, i do believe that this administration and that deal are on a collusion course. Iran is trampling on our interest in the region and those of our allies. When President Trump went to middle east and 55 leaders stood in the same room with him, the number one strategic threat in this region is iran and together we will stand against them. Ten days after he took office, iran fired a Ballistic Missile in violation of the un resolution. They were clearly testing the president. He sanctioned them as a result of that. He will continue to impose sanctions on them and hes going to have a gettough policy with iran as we go forward here. Maria yeah, he certainly seems that way. Unmasking probe. I want to ask you about. This half a dozen senior obama officials are facing scrutiny here according to fox news sources. Meanwhile former National Security adviser susan rice is expected to testify on unmasking allegations, do you expect anything to come from this investigation, general . Yeah, i think so. Listen, theres been so much talk here about people who came into the administration and took over from previous people that they fundamentally believe, i talked to them myself, that there was a conspiracy here to undermine the administration, uncover information about the administration and they were using process called reverse targeting where you want to find something about a persons activities but theyre not the official target. That person is talking to the official target but theyre really interested in the other person and the pattern of that behavior you can see it and thats what thats what is consuming the intelligence committee. So theres going to be people who are unmasked, people in the Trump Administration and theres no explicable reason for why they were targeting somebody to get that information so yes, i think there is something here and it should be pursued and lets get to the bottom of this. Maria they were using foreign interests perhaps to just spy on the Trump Campaign . Yeah, absolutely. Everybody who is close to this believes it and and the committee certainly understands. Ic they now have evidence of that and if thats the case, then that is certainly a very serious issue, its criminal and some of that some of that may not be criminal because theres a logical reason for why we are targeting somebody, if theres no explanation for it, i think the Nunes Committee is going to do good work here. Maria by the way, it wasnt just the Trump Campaign but around 2016 election, you also had people running for president spied on. Senator rand paul said he was spied on, senator Lindsey Graham said that he was spied on. Putting unmasking aside, something was going on with the administration looking at all of the candidates or many of the candidates during the selection. Yeah. Maria thats pretty extraordinary. I think its a pattern of behavior. Most people think that centers around National Security council and thats why theyre interesting in susan rice and her deputies that were involved in this. Im only speculating here. Thats where most people believe its centered. Maria all right, general, great to have you on the program, thank you so much. To you, general jack keane. Why the company was the last of nine carriers to be removed from that last. Straight ahead. Google fiber ceo stepping down after months on the job just five months actually, have highspeed internet performing right after this break. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Maria welcome back, getting Johnson Johnson on the tape. Take a look at the stock this morning. The company raising fullyear guidance. The guidance has the stock up 1 and a half percent. Earnings came in at 1. 33 versus estimate 1. 80. Nonetheless, stock is moving higher as the company is raising guidance. Couple of other names this morning we are watching alphabet, a name to watch as well. Ceo of the companys Fiber Division stepping down after just five months on the job, this is the second time in less than a year, google fiber has lost top executive, shares of alphabet up. Shakeup at the top happening at mattel, ceo will be stepping down. Shares are down 30 year over year as you can see from the chart. The truth is what we keep hearing on this program is that this market has been rallying not only on expectation of the economic agenda out of the Trump Administration but on fundamental strength, on earnings. Yeah, i think theres two things that we have talked about. Theres tremendous amount of optimism and now as things start to weigh, health care, taxes, the actual deployment of cap x, wait and see attitude. Maria again. For eight years. Wait and see attitude on cap x. Corporate america, you mentioned earlier, digging deep, figuring out ways to drive productivity, increase earnings and be able to deliver whether its share buybacks or acquisitions, we will talk a a little bit later. These are mega deals. Maria ive been optimistic that they will get something done on taxes but the latest health care setback, dagen, do you think they will get anything done in this legislative year . Dagen the white house and the individuals in the administration gary cohn, Steve Mnuchin have been focused on really putting together a tax reform plan. If you compare that to health care, you know what, taxes are actually easier to take care of in some way because you are not dealing with peoples actual health, you dont as i was saying earlier, the Bumper Sticker fright that the republicans encounter when they go home on a holiday. People are saying, youre cutting taxes for the rich and killing granny. Well, youre not going to get that with tax reform and thats a way if they message it right, they will message it to entrepreneurs and Small Business owners. Maria will they message it right . This is the point. For taxes there are still a couple of issues they are disagreeing on. Do you need revenue somewhere in the tax reform bill. They are not getting the messaging right if theyre not uniting and still throwing around border adjustment tax. If they do not decide how theyre going to pay for tax cuts and you add all the special interests who have invested interest in how this tax reform bill comes out in the wash, its going to be incredibly complicated but they have to get ahead of it which i think that we see sign that is they are doing it. They have been working on it a long time. Dagen we heard its not going to be the 15 Corporate Taxes, its going to be 20 to 25 . What theyre targeting in terms of cutting Corporate Tax. Maria for this reason. Hard argument to make that you can have 15 Corporate Tax rate when you have no revenue elsewhere and some corners in the party pushing for trillion dollar raise for border adjustment tax. 25 is a yawn. Maria no impact. I have been saying 22 . Split the baby. [laughter] dagen 25 is not a yawn if you pass maria compared to 35. Yeah. Maria we will see about that. Thats going to be the conversation on the table in the coming weeks. The u. S. Meanwhile is lifting the laptop ban on Saudi Arabian airlines, Cheryl Casone with the story now, cheryl. Cheryl thats right, maria. Latest carrier under restriction, back in march imposed the ban on airlines including egypt and qatar airways, the time trying to address the potential threat of hidden explosive but the Homeland Security department now ending the restrictions after issuing tougher new security measures with several airlines have now complied with. Subway making a big change in its pretty hightech, the company installing selfordered kiosks in some of their location, free wifi and charging stations for iphones, you will also be able to pay with apple pay or samsung pay, stores themselveses can have a broader look inside, emphasis on fresh ingredients being made. Finlty this, maria, astonishing new video lets you see pluto like weve never seen it before. Nasa used Data Collected by the new horizon spacecraft during 2015 flyby of pluto, they made the footage, you can see the ice eye plane icy plains. Maria fascinating pictures. Thank you. Loan debt could be reported be wiped away all because of missing paperwork. The shocking detail after the break. Back in a moment. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Maria welcome back, 5 billion in student loan debts eerased. Tracee carrasco. Tracee all of the people that took private loans to pay for college and have not been able to keep up with payments may get credits wiped away because critical paperwork is missing, now at the center of a legal battle because National Student loans trust has been unable to show in court that it owns the loans it says it does. They were granted to students and the banks bundled them together and sold the debt and the changing of the hands mean that in some cases its not clear from records who exactly owns the individual loan. So if the trust tries to demand the money from the former students but the paperwork is not right, the entire amount could be thrown out by a judge. The 5 billion accounts for 166,000 separate lopes but the debt owned by national colliagic is just a fraction of student debt in the country with average of 30,000 borrowed by students. Here in new york a judge wiped out a womans 31,000dollar debt last year after they took her to court. Maria what happened with that one . Tracee she went to court and she said she had had fallen back on the payment and they were unable to show which school she was going to and it was forgiven. Imagine that. Theres a real distinction there, i think, and honestly this is the fault of national collegic, who actually owns the mortgage or loan. Hopefully this will lead to something thats more beneficial to the consumer, lets be fair students way go to way too much school that they cant afford, there are loan that is are willing to take advantage of [laughter] maria get that money back. What are they going to do with it. Tracee, good stuff. Tracee carrasco. Still ahead winnie the pooh banned in china, why its been sensorred in the east asian country. We will tell you next right here. D smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. At the lexus golden opportunity sales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. Maria welcome back, good Tuesday Morning, everybody, thank you so much for joining us. Im maria bartiromo, it is tuesday july 18th, top stories right now 7 00 a. M. On the east coast. Chaos on capitol hill. Health care reform is off the table for now. Senate majority leader pulled republican bill after two more senators said they would not support it. The party will focus on straight obama repeal. President trump spoke on the importance of moving on from obamacare. We do have to repeal obamacare and we will end up replacing it with something that is going to be outstanding, far, far better than failing obamacare where premiums have gone up in some cases over 200 this year, where every single element of it is bad and the Insurance Companies, by the way, are fleeing, so people have in some states you have no Insurance Companies. Maria health care not the only focus of the administration, the white house is revealing blueprint for for nafta, major implications for trade coming up. General motors closing plant in michigan, as the company u. S. Invent other sits near tenyear high. That will set the tone for stock prices on wall street, among them bank of america just hitting the tape moments ago, earnings and revenue topped expectations and the stock that is trending down a third of a percent. We are awaiting earnings right now on Goldman Sachs later this year. Take a look a. Dow industrials up a fraction but the s p 500 and nasdaq in negative territory by a fraction. In europe the major indices look like this. Lower across the board with lower performer in germany. In asia overnight, markets closed mixwith best performer there, the hang seng in hong kong and the shanghai in china, nikkei average in japan down twothirds of a percent. Oh, brother, why winni the pooh has been victim of censorship in china. Joining me to talk all about it Dagen Mcdowell, home depot ceo and chrysler ceo bob and political analyst kristin is here. Good morning. Maria we want to see if conversations of tax reform have picked up speed. Theres a subcommittee hearing on tax reform. Can they do both even with the failure that we have seen on obamacare replacement . Dagen i think that they can and i think that they must. Maria yeah. Dagen do something on taxes at this point. They need a critical victory here and at least the white house does seem to be driving this and the details of the tax reform package a lot more than they were driving the health care overhaul. I would say they must and i hope they can. [laughter] they at least need to start getting the ball rolling. We have been talking about messaging this morning and thats what a lot of folks Pay Attention to. Thats what the American Voter pays attention to. They have an opportunity to correct messaging and present a united front, the gop does on tax reform much more than health care. Maria we will talk to herman cain and alabama senator luther is here and details from the senator on what we went on the senate bill. Capital market Research Analyst dick bove. He was right with his call on bank stocks earlier in the summer. First our top story for replacement of obamacare legislation off the table off Mitch Mcconnell pulled the legislation last night after two republican senators announced they they will not support the bill. One of the key issues was taxes. The president now proposing just a repeal of the legislation as he shifts his focus to tax reform. My administration is removing the burdens and regulations on your companies so that you can compete, thrive and grow to really prosper, we must lower the tax on business. One of the highest in the world and we must repeal jobkilling obamacare. We have to do that. [applause] maria President Trump tweeted this last night. Republicans should repeal obamacare and vote on obamacare that will start in clean sleight, dems will join in. Good to see you, the last part im not so sure. Dems i dont think are going to join in. Your reaction to what took place. They tried to do it using reconciliation which meant that they could have passed it in the senate with 51 votes. It didnt work. Now they are back to repeal in total with the safety net and then piece the other parts together over a period of time. Maria yeah. Now, maybe they will get a chance to do it right. Its not all lost. Its just that the media had the sense of urgency, you had to get it done. Maria elections are right around the corner. I know. Now repeal the whole package and then put the pieces together. Dagen herman, that was not the media youve got to get it done. These are republicans that have been promising this to the American People for seven years, so once they have the house and the senate and the white house i think it was legitimate and right for folks in america who wanted to fix obamacare to demand it and demand it quickly and even the white house saw that the republicans in congress were going to be be able to get it done in weeks and its been months and now weve got i agree with you partially. Here is the part that i dont agree with. For seven years they had a president that they knew was going to wasnt going to approve it. Im not trying to defend how long it took them to get to this point. All im trying to say is not the end of the world that they now have to go back to square one. But do you think that they are actually going to have votes for repeal. We have been talking about the division that you see amongst the coalitions and you have the moderate voices, senators that were against the gop version of the senate bill because of the cuts to medicaid and so many other things, do they actually have votes to repeal. They have votes of total repeal if they have a safety net. By going back and doing total repeal. The whole medicaid issue can be addressed appropriately. The ones that are pushing back the most are the ones who accepted medicaid expansion. Yes. Thats been the rub. And so when they tried to throw it into this massive bill, they said, no way, they are trying to look out for their constituents, even the senator from West Virginia hes concerned about all of the people that were on medicaid because of the expansion. I believe they will get the vote to do total repeal with safety net and then deal with medicaid. They are word about their constituents but i think they are more worried about reelection. Youre right. In my opinion, its become much more political than content in some cases, i think, so do you think that we were talking a lot about taxes, do you think that we will be able to get tax done in spite of not Getting Health Care issue resolved . As dagen said and i agree with on her this one, in some ways, its easier to get taxes done because number one it doesnt impact peoples health. It impacts their pocketbooks and so secondly, i believe that the appetite on the part of the American People is for tax simple occasion, tax cuts, we know that we have been talking that we have the highest in the world. Maria disagreements when it comes to taxes as well. We had peter king, congressman king from new york recently and he said, i will not support any bill that eliminate it is deduction for property taxes. Here we go. Maria there you go. One deduction thats supposed to go away. Peter king said im not going to support it if it goes away. Others that im not going to support anything that doesnt have any revenue because we are going to bust the deficit and there you go. So is it going to be revenue neutral, do you need Something Like border adjustment tax, you do have disagreement when it comes to tax reform. Its not going to be easy, its going to be debate because individual senators, individual congressmen, they are going to try to get their favorite piece in there and thats been part of the problem, however, i happen to believe because we have a president that understands the economic impact, hes going to be help to go drive the message, weve got to do this. The reason i say its not going to be easy, 535 people is like herding calfs and if we get anything, we will get lucky. Not only Corporate Tax but Small Business, the person that files on personal tax basis. Exactly. Cascade that down to help the Small Business, subchapter cs. That will get more Popular Support behind it, dont you . I believe that more people are starting to understand just what they are paying in taxes. Maria how do you make sure theres not fraud in that system. Im a limited partnership so that i can get the 15 . You to create one. Maria are you going to have everybody creating limited partnerships so they can get a 15 Corporate Tax rate. Theres a way to get around the system that they have to come up with ways that people wont be able to. Some people are always going to try to beat the system. Youre not going to totally eliminate it. Lets do what helps 95 of the individuals in the country. Theres been 30 years since tax Major Overhaul in the country. You talk about the president understanding the economic impact. Im wonder if you think that there will be, you know, there will be policy in potential tax reform that will allow businesses to have confidence, more than just a tenyear tax cut, longranging changes since they have the confidence as business to invest, stop sitting son so much cash to really drive economic change that youre talking about. I believe that the confidence that thats going to happen is reflected in the current stock market performance. Thats all betting bubblele . We are going to get simplicity, cuts, its going to be longterm. Its not going to be like the bush tax cuts. The democrats will go along with it if we do this much and we sunset it, no, i dont think this president is going to have a sunset clause in what we do because we need it for a long time. Dagen i think this president would sign just about anything. In hindsight the biggest victory is the gop in the house passing that Health Care Bill and then it went to nowhere still. Maria the senate should have voted on that bill. They should have voted on that bill. Dagen i cant believe that you have republican senators and at least allow debate on the Health Care Bill. By the way, the moderate, the republican moderate who is are im calling democrats from now on, they got what they want. I talked about this with herman yesterday, 45 billion in funding for opioid and heroin addiction treatment, 45 billion, thats 40 times more than president obama wanted and you have tripledigit increases in the spending and health and Human Services and in the Justice Department in these very addictions and thats still not enough money. This is more money than these republican senators even know how to spend. Maria why, to kowtow to those people who we wanted to keep obama taxes, they could use the money to go dagen thats where some of the money came from. The 172 billion in revenue raised by keeping those taxes. And to use it to apiece their insurance backers. Dagen yes. Lets not forget. A lot of people, dagen came up with a great metaphor yesterday, all of them, both sides are drinking from the trof and that part of the problem, they will come up with an excuse that might look good on tv but its really they dont want to offend some of their insurance backers. Herman, thats why i listen to your radio show, i love the straight talk. Thank you. Maria big fans here this morning. Let me ask you, do you think that this failure, setback on health care is going to mean a mail your for the entire economic agenda for 17 . No, i dont think so. Maria six or seven months to do health care after tax reform, they will reverse it, we have to get to tax reform right now . Lets put nit a perspective, remember, approximately 80 of the people have Health Insurance through their employer, thats not going to change this year, probably not going to change next year. Maybe change and then you have a group of people that dont get it through employer, individual market. Here is a statistic that senator gave me that nobody brought up. Do gloi that nearly 8 Million People chose not to buy obamacare. Maria she brought it up. Not to buy obamacare, okay, secondly, they paid the penalty. 1. 6trillion. Here is the shocker. Dagen some of them stopped baying their taxes. 50 of them make 50,000 a year or less of the people who said, i dont want obamacare and they are not factoring in that in and thats why cbo maria oh, my god, 20 people are not going to have Health Insurance, 20 Million People. [laughter] dagen where are you . Bob will tell you. Maria herman, good to see you. Great analysis from you. We appreciate your time, herman cain joining us there. Combats driving under the influence of electronics, details on the new measure straight ahead. Then china bans winnie the pooh how the internet played a part in the censorship of the animated bear. Back in a minute when you have something you love, you want to protect it. At legalzoom, our network of attorneys can help you every step of the way. With an estate plan including wills or a living trust that grows along with you and your family. Legalzoom. Legal help is here. Maria welcome back, House Republicans unveiling proposed budget for 2018. Cheryl casone the the story. Cheryl ambitious spending plan that could allow lawmakers to rewrite the tack code that you and the panel were talking about. It calls for 200 billion in cuts in decade and mandatory spending on programs like medicare and social security. The budget would also dramatically boost spending on the nations military. Now the House Budget Committee is set to vote on the plan tomorrow but that vote could be delayed by political infighting inside the Republican Party itself. Meanwhile on the other side of the country Washington State dui law is set to go into effect this sunday. This is driving under the influence of electronics, so under the law drivers cannot hold their cell phones while driving even checking text messages, even if you stop at a light, all of that is now illegal. Its the states response to 32 increase in deaths from distracted drivers between 2014 to 2015, a citation, first one 136,000, a second offense, 234dollar fine. And finally, who doesnt love winnie the pooh. Thats a very finelooking pot of honey youve got there. Im so remarkably gooey. Gooey, that happens to be my personal favorite. Cheryl apparently the Chinese Government doesnt like hoop. Government censored all references to the beloved Childrens Book character on chinas social media form. Its like their twitter. Apparently its as a result of comparisons made between the plump bear and the chinese president xi jinping as photograph walking than a trish regan taller senator, barack obama. Will get a miami alerting them that they are attempting to oppose, get this, maria, illegal content. Maria wow. [laughter] maria that is too much. I dont see the resemblance. Maria really, china . Dagen im all in. [laughter] maria all right, we will take a break. When we come back, is amazon getting too big and take a look at m a activity in 2017 as concerns grow over the commerce giant bid for whole foods, we will take a look at that. The more americans would rather take a trip to the beach than buy a new tv. People would rather go into debt for congresspersons than material goods, later this hour potsch you each drive a ford pickup, right . in unison russ, leland, gary yes. Gary i have a ford f150. Michael ive always been a ford guy. Potsch then i have a real treat for you today. Michael awesome. Potsch im going to show you a next generation pickup. Michael lets do this. Potsch this new truck now has a cornerstep built right into the bumper. Gary super cool. Potsch the bed is made of highstrength steel, which is less susceptible to punctures than aluminum. Jim aluminum is great for a lot of things, but maybe not the bed of a truck. Potsch and best of all, this new truck is actually maria welcome back, the power of amazon in focus in the wake of tackover of amazon and whole foods. Joining us right now managing director and industrials group jim lavelle. Every time you get to a company thats getting more dominant they get the target on their back, it happened with microsoft and google, now we are looking at amazon. Is there anything to worry about if youre an amazon shareholder or amazon supporter . I really do think its a beginning of new anal in that age in that technology is fundamental businesses as we know. We see in bricks and mortar and economy as well. Is is that a Technology Company or automotive company. We are in this bizarre period that theres transition going on. This is to be accepted, i think. Maria is it warranted to look at amazon and say, its like the amazon economy, you need to get smaller, you need to stop growing . Is that warranted, you think or is this just government gone wild again . Well, i actually think that what theyre doing is very exciting, very interesting and quite frankly permeating other businesses. I will give you an example. Of course, theres going to be shock and concern, wow, can they change the way i buy groceries, are they going to get all the stakes and become more powerful. I think we are migrating as part of new revolution. This is just being customer centric. It would be different if they were buying these things and manipulating prices. They are providing better service, better value, more gratification. I think they are doing good things and i think its part of this Industrial Revolution that we are seeing coming at us, jim. Every company thats not a tech Company Almost has to become one in order to deliver it services and products. They just dont have the Technological Infrastructure there to continue delivering their product. This is a very interesting point. I just came out from a week out west, i was out west in Silicon Valley in los angeles and i was meeting with a number of industrial executives and investors and what we are seeing a fusion of technology into the industrial space which is what i know best. So, for example, integrating software into products to make those products better, i was meeting with the leader of a business who makes very specialized cameras, the cameras are at a much lower price range and what they have been able to do is very Intelligent Software engineers is figure out how to create software that makes the image that much more focused and valuable but at a much lower price point. Is that a Technology Company, industrial company, youre seeing the real fusion and thats, i think, what whole foods amazon is all about, is this merging of different worlds. Maria of course. You live and breath m a activity. You guys have a stelar record. Maria value ls, deal values are down from a year ago even volume is slightly love last years pace. Thats right. What youre seeing is the midcap is doing well. Those are doing really well. Some indications are up 15, 20, even 25 . The mega deals, those are much lower right now in dollar value, certainly which is overall. And what we talked about just before, is this is a great way for ceos and leaders of companys to buy sustainable earnings, a lot comes down to earnings growth, you can do the buyback and theres been a lot over the years, but investing 700 million, has actually nice cash flows and new technology to the business, seems like a good formula. Maria sustained organic growth than buying back stocks. Much more sustainable, jim. Particularly if we see Interest Rates going up where money was attractive to be able to buy the big stockbacks, buying a company predictable. Dagen they buy something that they dont need and they dont think it doesnt integrate well, are you starting to see companies are reaching because they want to be part of the party, they think that they need some sort of like technological layin and its not a good fit . Itll take a little time to see those mistakes on the Technology Front but youre actually totally on point in terms of this has been a very good time for Public Companies to actually sell businesses that no longer, so maybe a mistake that was made five years ago, ten years, the Company Performed okay and maybe even well but now doesnt fit into the strategy. Youre starting to see those happening. Youre right on point there. Maria what sector is going to be poised to do the most deals in the coming couple of years, is there a sector thats poise today consolidate more than others in the midcap space . I know energy is one that people talk about. Sure. Industrials is what i know best and what we see is that theres still a very long cycle in the whole construction world that we are looking at, so commercial construction still long legs on that one. Quite frankly youre seeing fundamental changes going on in automotive, autonomous vehicles, trucks, who would have imagined this ten years ago but its reality now. So youre seeing a lot of things going on there. I think theres going to be maybe the volumes will come down at some point. A lot of consolidation. Maria thank you so much. Appreciate your insight very much, jim lavelle joining us there. Senate Mitch Mcconnell calling for a vote to only repeal obamacare. We hear from one senator about what and what is coming next. Chickfila taking on kfc, fastfood chain delivers familystyle meals. Brand new items back here. What are you supposed to do . Drive threequarters of a car . Now if you had Liberty Mutual new car replacement™, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. With Liberty Mutual new car replacement™, well replace the full value of your car. Liberty stands with you™. Liberty mutual insurance. Rays always been different. Last year, he said he was going to dig a hole to china. At t is working with farmers to improve irrigation techniques. Remote moisture sensors use a Reliable Network to tell them when and where to water. So that farmers like ray can compete in big ways. China. Oh. He got there. Thats the power of and. Casper makes one perfect supportive and comfortable. Premium foam layers. Breathable for airflow. Perfect rebound, plus perfect lift. Pick your size, you get 100 nights to test it out. Test the layers, be a layer, casper. Maria good Tuesday Morning. Welcome back. Thanks so much for joining us this morning. Im maria bartiromo. It its tuesday, july 18th your top stories right now, 7 30 a. M. On the east coast. The senate strikes out again on health care, the plan to repeal and replace obamacare stalling out, after losing support from two more republican senators, but he former president ial candidate hermann kane told us all hope is not lost. It is not all lost. It is agent you have the that the media has this sense of urgency you got to get it done got to get it done now repeal whole package then put pieces together. Very latest on Health Care Battle this morning, as President Trump, pushes for a full repeal of obamacare. China is spreading wings in arms market some American Allies turning to china to buy military drones what it means for u. S. Policy, the new way to save, how companies are helping their employees fill their Retirement Funds faster than ever, and futures this morning looking like a mixed open we are all about earnings today that is driving the action, dow industrials is exactly where it closed on friday, s p moon, rather s p 500, nasdaq negative territory by a fraction this morning, european indices like this, as you can see, we are looking at a downer this morning, the dax index now at lows of the morning down better than 1 , on the dax index cac quarante in paris down almost 1 ft 100 really in that on session, in about asia overnight, markets were mixed at the close nikkei average aefrj worst down twothirds of 1 will a Chicken Dinner be winner chickfila new strategy to convince families to flock to fast flood restaurants, capitol hill Mitch Mcconnell says republicans will fry to prepare a obamacare with dried replacement after two more republican senators mike lee of utah jerry moran of kansas said last night they could not support the legislation. Bringing the total number of no votes to four, that falls short of the number needed to pass it, for his part President Trump urged lawmaker move forward tweeting this, republicans should just repeal failing obamacare now, and work on a new Health Care Plan, that will start from a clean slate, dems will join in. Joins us right now to weigh in republican senator Luther Strange of alabama thanks so much for young is. Glad to be with you. Maria would you vote for a strictpeel of obamacare. Absolutely for president s tweet statement this morning, that is what we promised American People, i think we should do it, there is actually what we voted on in 2015. I was not here at that time i thought that was the plan. And i am glad to see us get to that point. Maria listen i dont want to go and cry spil. T. Milk why did not do you this from the beginning. A great question i have been in senate 4 1 2 months i thought original plan was to do what we did in 2015 repeal and replace over time bring democrats to the table they after all caused this disaster affecting my state so i think we are in the good position now, but i am strongly support this position. Can you characterize what is going on there in the senate . I mean you have been there 4 1 2 months fine 37 but a o lot of people today are scratching heads saying how is it had possible the republicans are in charge of the house the senate and the white house. And yet we cannot even get any legislative about victories whether health care or tax reform it has been search on months. Very frustrating i am incredibly are frustrated like people in my state are weve got to have results it is are going on 52 votes, we have a spectrum of views in the caucus that played out now we have no more excuses now we need to get back to where the president is promised us to go where we promised to go, that is repeal and replace we can do that maria i really believe we can. We need senator mccain back in the fight but i am looking forward to getting to work this morning. Lets talk about what is next here, what the timeline looks like then, what is next for you and colleagues in the senate, do you now move on to tax reform. Or what what is the process in terms of of the repeal . Well, we will have that debate today at our caucus launch at noon everyone digesting what the president said last night senator mcconnell said last night about the setting of the clock here, i am for taxes as you know, in the certainly i think this citizens know tax reform is most fundamental we can bring relief to citizens srn my state i am anxious to get there i think we can do more than one thing at a time i certainly hope we can that is what we will learn more about details this afternoon. What about tax reform . We are looking at Earnings Period right now, when seems driving markets Goldman Sachs just reported, betterthanexpected earnings this morning, 395 versus estimate of 340. That is one part of the growth story but people believe tax reform will actually move the needle on economic growth, do you think there is Common Ground within the senate, or are you going to have more fights over borderadjustment tax over the level of Corporate Tax rate. Or the deductions what stays gores . I actually think there is much more Common Ground on tax reform certainly what i hear i talk to business men and women small and large, they are optimistic, and they have been investing somewhat stories reports on the markets, indicate, that think about what can be unleashed if we actually address some fell on problems, i think we can get there. Maria all right, in terms of in terms of the the story on tax reform right here, what can you tell us your colleagues what is most important in terms of the sake roasted cow they want to keep in any tax reform package. Well, i am not well i am not looking to keep things i am looking to eliminate things and reduce things like Corporate Tax rate simplify for citizens there, in tax returns repatriate money from overseas critically necessary, all things that i think the white house and senate agree on, things that towards growth and the economy. I think there is a lot of agreement on that. Now, as you know maria when it comes to specifics everybody has a sacred cow, i dont know where they are as far as i am concerned everything should be on the table to get growth in this economy. Yeah, do you think this Division Within your party on health care spells trouble for some of the president s other priorities . I mean are you going to have real division when it comes to whether or not to do tax reform revenue neutral . I dont think so i hope not i think the sense of the caucus i cant speak for colleagues, of course, but the sense i have and my position is aim for growth aim for growth growing and any obviously benefits everyone whether revenue job growth wages across the board that is the side i am leaning on i think the majority of our caucus is, too. Let me ask you senator a lot of people in the house, congressmen are asking this question, and so i want to ask you. Can you tell us what was the thinking why the senate would not just vote on the houses bill . In terms of health care . Well dont think the house bill is as good speaking for myself as pure repeal and replace overtime 2015 teal we are just moving things around we are still spending a lot of money, i would rather see repeal then bring democrats to the table replace over about to years period what the president is for i support the president s position on that i think the right way to go. How will transition look . So you vote you said you are going today to vote on a repeal. Lets say, you all vote yes to a repeal what is the next two years look like in terms of of the transition for people who are depending on that insurance . Well, i think we have to be scleer we cant pull rug wont pull rule out from people existing plans the stabilizish in one assurances leave in place systems we have over a period of time make it clear there is urgency to go in, and fixing the failing problems, and there are problem things in there flats would like to see i support more marketbased get government out of our peels hair position give choices back to the states a before us debate, but we would have limited obamacare we would create that urgency by having a deadline, we can do that. And i think pg if tax reform i like to see us getting to Regulatory Reform other things as well, as promised 20 do. You and many colleagues were willing to leave that 3. 8 percent investment tax in there i mean as a republican, how how how do you talk to your constituents and respond to their worry that you were going to leave obamacare taxes in there . Are they going to be obamacare taxes in a new replacement. Not if i have anything to do with ittive we need to be reducing taxes, i you know i have a hard time convincing anyone a food idea to leave anything related to object kay in a bill. Maria right. That is why i like repealing state up get to debate and make the democrats put up or shut up come to the table see if they will work with us, of course, they are not doing there. That has got to be difficult you dont have any is for on the democratic side, so i mean have they indicated when they will participate in governing. I think they want us to fail, frankly. What i worried once this fails we will talk about it we have to bring in [no outside aio] i dont think so i think with if we dmem ability to govern conservative solutions in population we win have best message the problem is weve got to come together, and actually lead. Yeah youve got that message in fwaul articulate. Absolutely. People wonder if you actually are articulating tet moechg properly. I think to democrats are very good at messages their message everything the republicans burn the world down we are trying to find solutions not just talking points. Thank you so much. Thanks. Appreciate it senator Luther Strange joining us texts with china American Allies of playing drone orders with east asian christian straight ahead. Gm reportedly stepping a shutdown at michigan factory a major factory why automaker struggling with control of unsold inventory, next. E china a major dealer in drones, Cheryl Casone with the story. Cheryl yeah, pretty fascinating some u. S. Allies, in the middle east and africa reportedly buying Chinese Military drones, the wall street journal has the big article on it today says the allies include egypt, iraq jordan even saudi arabia. The pentagon has long refused to sell their own powerful drones to most countries they fear they might fall into hostile hands kwhooin has been filling that void military drones much lower cost, the country the worlds third biggest armies seller behind United States and russia. All right switching gears gm is extending a shutdown at michigan factory that builds Chevrolet Bolt electric car reviewed unsold vehicles gm inventory in u. S. Hit a 10year high in june 105 days supply. And, finally, this, you know i love food stories, chickfila is taking the shot at Kentucky Fried Chicken drufg family style meals up against the colonel bucket meals chickfila meals tested right now greensboro North Carolina 70s arizona san antonio, texas hoping to attract more customers for den, chickfila khmer feedback will help zie whether they should do this nation wide more chick the better. That kfc bucket a good idea. For the family just apply the bucket, marketing terrific. Thank you. Coming up forget millennials a study says baby boomers account for most Consumer Spending the results after the break stay with us, sfoet money, money money money money, money money money money money, money money fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. We were in a german dance group. I wore lederhosen. So i just started poking around on ancestry. Then, i decided to have my dna tested through ancestry dna. It turns out im scottish. So, i traded in my lederhosen for a kilt. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. You saw before heart is breaking. Welcome back are you worried about saving enough for retirement, now there is a possibility that your administrator could do more to help bankroll life after work a Vanguard Group survey finds average company krshgsdz to 401 k risen to 4. 7 of salaries last year up from 3. 9 in 2015 we bring in Ramsey Solutions financial expert author of retire inspired chris hogan good to see you. Good to see you, too. I like this story a lot. Because the 401 k is so important for retirement, and getting your money in order, Companies Like microsoft, Host Hotels Resorts say they are increasing 401 k contributions they want to spend more to retain motive motivate breast your thoughts. I think ab fantastic move as we start 20 look at this truly understand computerizes role their job is to try to educate people, to understand how monday works will the empower them to take steps to use their 401 k s or 403 bs i applaud Companies Taking steps to encourage people to really use these tools. What should the employee do . I mean lets face it a lot of employees they have 401 k know their company is matching it, they dont know what is in that 401 k should do employees have to get more active in terms of understanding, how to drive that fund . Maria i couldnt agree more, i think it is really realistically each swrid has to take on the onus themselves to truly take steps to help themselves so understanding what benefits are available, at the company, but also plugging it utilizing those we cant pass the buck all the way to the employer but i think each side shares role in this Employer Needs to offer benefits but employee has to take advantage of it. Create as Dagen Mcdowell, also one of the most critical things figuring out if you get a match in 401 k plan to you to maximize that match, because it is actually kind of tricky. It is. And when you start to talk about the match and 401 k you are essentially dagen talking about free money. It is free money, really compensation and by the way, if you want to get a down payment on first house, you can borrow from kw4r0ur 01k plan borrowing from yourself, one of the best resources to tap for young people. Chris. Hold on dagen talking about stealing money from future. I dont like that. Dont you do it. First time i am disagreeing you have to pay it back by law or panelist to have you pay taxes why not use your own money . Well, i would say this i would say as you put money aside the thing that is going to grow that money dagen is time and compound interest if you put money in the 401 k leave it alone but i would tell people save up for down payment on a home by taking a second job or a third job or even dont pull money out of 401 k you cause yourself issues. I agree with that second and third job . I mean, come on killing us over there 7 54 in the morning. 10 grand 401 k i can borrow pay back pay myself interest i am borrowing it not working a second job, okay . I will tell you this one of the things people dont understand dagen if you do pull money out of a 401 k and lose or leave that job, it is due payable 3wwithin 3 to 6 months more stress on individual thanropeing out. Chris i have a question, in whether or not this is actually going to work, to retain employees especially young people, some of the recent statistics show that 60 of millennials are open to new jobs to new work if it comes along, and that millennial turnover across u. S. About 30. 5 billion dollars annually so obviously, Employee Retention a big part of this, at the same time, millennials have historic distrust of regular institutions like large corporations microsoft being one of those examples so is this retention strategy actually going to work for young people who are they lost this generation to being one not necessarily going to trust large corporations the benefits they might offer. I would say this i think it is part of the process he of retaining when you look at it people ultimately want to feel like they are appreciated, and valued, and is there a path to grow in any career so i think, dealing benefits also engaging teammates proving to them you care, i say that leaders have to do three, i s say care connect communicate. Chris, maybe we can clear up one point that is kind of bantered around here, several years ago corporations moved away from deciding where 401 k money will go have very congressesly moved to employee to your point, so isnt that correct, so corporations you know mistrust so that is kind of an old an old era, because today, corporations at least my experience we have congressesly moved to employee, they make the decision out of a cafeteria menu where to select isnt that correct . Yes, sir you are absolutely right it is on the employee to make the selection of what they are going to invest in. What i was mentioned though that employer has incredible opportunity, to make this information available, by doing financial education. Yes. Providing programs seminars to help understand how it works the issue most americans dont know how money works, they dont know how to grow it, so if you dont ever understand it, it is impossible to manage it. Yeah, i mean, the for the employee should call the fidelity of the world whoever managing 401 k plan make sure they understand what is in in that 4 o 1k how much allocating not brain surgery they need to get a little more involved. They really do, and if companies will provide financial education, or Financial Wellness programs, we do one called smart dollar that just walks people through listen, it is just not matter of 401 k s it is a matter of saving. We leave it there great to see you, sir thanks so much. Thank you. We will be right back. Consciously. Maria well back good Tuesday Morning thanks so much for joining us. Im maria bartiromo. It is tuesday, jerusalem 18, top stories right now 8 00 a. M. On the east Coast Health Care reform off the table for the purpose now Senate Majority leader Mitch Mcconnell pulled republican bill last night, after two more senators said they would not support it. They are nos, the party will focus on a straight repeal of obamacare come up with a replacement within two years Luther Strange weighed in on where things stand in the last hour. And incredibly frustrated just like people of my state are weve got to have results. You know, it is governing within 52 votes we have a spectrum of views in the caucus that is played out now we have no more excuses now we need to get back to where the president promised us to go where we promised to go that is repeal and replace. President trump tweeted on the decision, this morning, he says this, we were let down by all democrats a few republicans most republicans loyal terrific worked really hard we will return. As i have always said let obamacare fail, and then come together, and do a great Health Care Plan. Stay tuned. Earnings driving action on wall street among them bank of america Goldman Sachs, both banks above expectations, both stocks lower this morning, futures indicating a flatline, for the broader averages at open you can see there dow nasdaq s p 500 all down a few points, in europe this morning, markets are also edging lower live picture what is going on right now cac quarante down 3 4 of a percent dax index at lows of the morning right here down better in an 1 , in asia overnight, markets mixed as you see there worst perform japan nikkei average down twothirds of 1 , grabbing a piece of the pie how mod pizza making a name for itself 40billiondollar a year pizza industry coming up this morning to talk about it fox business Dagen Mcdowell former criesis ced bab nardelli. Great to see you, good morning. A good morning to hear senator strange basically say this is what we should be doing we have to make sure stay loyal my question was why didnt you do that from the beginning why not just repeal it from the start. Yeah, they thought they could tweak it. Why not taxes first. Thank you. That is. Dagen that is what i we keep coming back to that. Maria yeah. Dagen people people will put up with a lot thank you put more money in pockets make it retroactive to the beginning of the year, people would know that by the end of 2017, when they like after 2017 when they went to file taxes would see huge benefit. Almost too late to do retro. It is you know you are right bob. Going into fall. Emotions so high election season and that was the mantra of not only the president ial campaign but also congress as well repeal and replace, repeal and replace once you get peoples emotions that high youve got to at least try to deliver so i think that is why they made that decision, as miscalculated as probably with those. Joining conversation to talk all about that this morning former White House Press secretary under president bush Ari Fleischer with us a couple markets Research Analyst talking about earnings, Stuart Varney will weigh in dont miss a moment i go big mower kick of right now with in top story, overhauling obamacare has impend stalled, Mitch Mcconnell pulled the republican bill late last night, blake burman at the white house right now works details. Good morning to you. Maria, good morning to you as well this morning President Trump is up and tweeting with fresh reaction to the fallout from last night two tweets within the last few minutes here go as follows from the president , quote, we were let down by all of the democrats and few republicans, most republicans were loyal terrific worked really hard. We will return. He goes on to write as i have always said, let obamacare fail and then come together, and do a great Health Care Plan. Stay tuned. Make no bones about it republicans the white house, the president , republicans on capitol hill first tried this repeal and replace all at one concept, and that appeared to die last night with single tweet 8 30 in the night here in washington, with senator mike lee announcing that he and senator jerry moran would not spof latest iteration of the senate Health Care Plan meant at least four Senate Republicans no votes, and unworkable path to get to 50, that appeared to catch the president a bit off guard yesterday as he happened to be dining at the time here at the white house, with half a dozen or so republican senators yes votes earlier in the day at event he appeared to be optimistic. I will tell you it is a very, very hard time they are having with the obamacare situation, so were going to get that done and i think of we are going to surprise a lot of people. Reporter aftermath last night president tweeted the following quote republicans should just he repeal failing obamacare now, and work on a new Health Care Plan, that will start from a clean slate dems will join in. That is exactly what Senate Majority leader Mitch Mcconnell announced would he do saying he will hold a vote later in the week, to repeal obamacare, and replace it two years down the line, however, that the thinking goes is unlikely to pass the moment meaning republicans might have to indeed work with democrats. Last night, the Senate Majority leader Chuck Schumer put out statement, quote rather than repeating same pailed partner process yet again republicans should start from scratch and work with democrats on a bill that lowers premiums, provides long term stability to the markets, and improves our health care system, maria as you know what we have heard from this white house, and republicans, is that Health Care Needs to go first, tax reform second, and that remains the plan. The way the republicans are trying to go about tax reform is through this reconciliation process similar to health care lets go it alone simple majority 50 votes plus one in senate in order to do that there needs a budget a budget process budget reconciliation process future forward this morning, the house put that plan forward. Maria back to you. Maria but you are saying it is still the pan to do health care first, and then tax reform. I mean, blake they have got to get to tax reform now. Right. Reality is there is only what two, three weeks until recess Senior Administration official maria i talked to yesterday told knee pointblank health care after the recess simply isnt realistic what you might have at this point attempt to just do repeal, maybe push down the line and move on to taxes but this administration insisting going to get tax reform. Might work repeal only before break come back do tax reform after recess. You have to ask if that simply when you brought up why didnt they do it in the first place . The question if everybody says this is what we could do that is what we heard six months ago from republicans that repeal and replace is what they would do. It is thank you so much blake burman White House FormerWhite House Press success under george w. Bush Ari Fleischer here good to see you. Good morning. President defeated dems will work with us. Do you think dems will be there. Well it depends what the policy is, the policy unfortunately with this defeat in senate by republicans going to push everything leftward there are some in inescapeable nl facts hurricanes withdrawn, premiums skyrocketing because of spiral that needs to be fixed is to what is the solution . To a democrats have a solution can they become shawing you in ainget of respectfully unreceiving a for republicans just keeping obamacare o alive. If they do the repeal, how does the art of negotiations change relative to whose got he leverage you have repealed it youve got a safety neither has spriergs to it, who gets the leverage dems leverage now to force this administration, to do something . As opposed to cant sit back let nothing happen. First of all, there is no full repeal what they are trying to do in senate now as this collapses, call it repeal, they can only repeal financial aspects of obamacare, using 50 votes otherwise, all the rules of obamacare remain in place that is why it is a partial repeal senate still cannot get full repeal without 60 votes my problem with that why i thought replace was so important democrats you have to give credit they changed what American People expect from Insurance Companies where you can no longer be denied coverage if you have preexisting condition if a repeal of that provision no replacement i submit to you American People would be in uproar emotionally so that is why repeal and replace is so important and to govern if you have a majority, your ideas are supposed to lift people up apples ideas. Democrats have not been governing. Governed passing obamacare, terribly unpopular didnt work. Maria several months not participating. They are minority dont have obligation to govern republicans do. Dagen it is not their problem the problem the republicans they know that, that is the political cancellation they can literally stand lack issue statements that come up with cute catch phrases fold arms go okay. You people fix it they are going to win in 2018, based on that, here is what i dont understand you repeal obamacare, now, if you cant come up with a replacement now why are they going to be able to do anything different three months from now. The politics of that are dismal if you repeal now every scary story democrats want to act make up republicans are going to do will be credible you dont know what is next if they pass something player it republicans the said democrats are engaging in scary tactics it is not wrael i submit that second bill passed into law placement bill people in country not as draconian is as democrats and press are saying not so bad republicans would have been fine, so repeal a strategy now is heartbreaking. Why cant they message this right you were press secretary for g. W. , your job, is to articulate messaging why cant the gop get their message across to American People without the the color from the left . Well in part emotional debate about health care and republicans make rationale arguments trumps ratioity the obamacare put apple weather blanket on economy 1 gdp growth 8 years the reason because of all the burdens regulations led by obamacare, if you take that wet blanket off we start to grow everybody is better off easier Health Care Access more money in your pocket this is what the kin needs. Dagen we talked about this ad nauseam on this program, just alone the rule that requires employers with 50 employees or more to provide Health Insurance again created incentive for companies to create part time jobs. Also, talking about the economic impact, lets say the repeal does go through. Right . And you have nothing there to replace it with you dont see the consistency the Health Insurers need to plan for 2018. I think flat out repeal. Is terrible for republicans, because gets stuck with all the bad stuck with economic bad and the emotional bad where people scared about not Getting Health Care the place is your job i think what Mitch Mcconnell i go doing trying to lay down you a hardbluff saying to senators we are going to force your hand going to make you vote on this. And what he is trying to hope to do is somehow get a Humpty Dumpty to emerge from this past it some point later. Dagen to that point there are 49 sitting republican senators who voted for the 2015 repeal but the exact repeal we are talking be knows okay, you voted for it 2015, you are going to step up. Was that a fake vote president obama was in office. They that is wrong with System People loss faith in people we elect do your job. Maria all right good to see you Ari Fleischer coming up google will not steer you wrong goobel maps can help avoid traffic on commute. On wall street United Health beating expectations hiektdz foreca hiking forecast we will be right back. Stay with us. Their experience is coveted. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. With some big news about type 2 diabetes. You have type 2 diabetes, right . Yes. So let me ask you this. How does diabetes affect your heart . It doesnt, does it . Actually, it does. Type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. And with Heart Disease, your risk is even higher. You didnt know that. No. Yeah. But, wait, theres good news for adults who have type 2 diabetes and Heart Disease. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease and lower your a1c. Jardiance can cause serious side effects including dehydration. This may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. Ketoacidosis is a serious side effect that may be fatal. Symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. Stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. Symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. Do not take jardiance if you are on dialysis or have severe kidney problems. Other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. Taking jardiance with a sulfonylurea or insulin may cause low blood sugar. Tell your doctor about all the medicines you take and if you have any medical conditions. So now that you know all that, what do you think . That its time to think about jardiance. Ask your doctor about jardiance. And get to the heart of what matters. Town rest in venezuela Cheryl Casone with that. Cheryl well that is right maria President Trump is threatening strong swift economic action, against venezuelas president , if Nicolas Maduro goes aheed to rewrite the country constitution trump saying will not stand by as venezuela crumb bells. Seven mill people rejected the government plan sunday. Referendum. I am here because my conscious as a citizen demands that i be here. An this is strong evidence that people are unhappy. At the international level, regardless of whether it has electoral powers or who is ruling, this is the citizens. This is the change that people are waiting for. And we are all here for that. Maria cheryl more than 90 People Killed in violent crashes between protesters and police, as venezuela struggles with shortages and inflation. Well, google introducing a feature to help convoy traffic on app of google maps a graph you search for direction how long it is expected to take next couple hours, gives you kind of that time frame, the web site the app does it now, very helpful i recommend it servers looking over results right now from johnson and johnson the outh as j j Second Quarter revenue fell in face of steeper competition for some key prescription drugs, also taking a look at United Health latest the countrys Largest Health insurer, beat expectations sales in line also raising 2017 forecast maria again, the stock up a half percent premarket, on the call they will be asked, of course, with exchanges obamacare not in them but they will be asked usually they kind of avoid those questions lets see if they make any comments. Earnings have been pretty good, cheryl, by the way we are talking about this on the set, google saying they are going to show you all the stuff about your trip, but they acquired waves does that you they kept them separate that is the thing you are right the same technology coming from google. Download both. Yeah there you go. Thank you, maria. Thank you so much i will miss you coming up next Houston Rockets up for sale at astronomical price how much the team is expected to net, cofounder of one of the Fastest Growing pizza chains about the ray restaurant is taking cues from chipotle, back in a moment. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Americans should you love pizza 40billiondollar a year industry now bodily steroids by a Company Making the experience more personal, mod making your pizza your way with Assembly Line that might reminded you of chipotle joining us cofounder ceo scott thanks for a joining us. Thanks for having me. What you were trying to go after chipotle style where you come in put together your pizza. Yes when we started in twut, nobody had applied the fast casual Service Model to appeasea initial insider innovation to bring this fabulous Service Model that people had come to love largely because of chipotle bring to second biggest food category for restaurants in the United States pizza. What is the cook time once you put all dressings on top . That is a business leading question. I want to i dont want to wait around i want. One of the big innovations [laughter] one of the big innovations if you typically went to appeasea restaurant would sit down would order wait 30 or 40 minutes you would have an hourlong experience, here you can walk in walk down line make a pizza, exactly the way you want it. It takes about a minute to build it, then takes about three minutes to cook it, so from the time you engage the builder about 6 or 7 minutes. I make pizza a lot with my father my father is a chef has a restaurant we had pizza often pu put it in 5 minutes to cook bottom first. No thin crust pizza when it goes in 11 inch thin crust pizza, when i it goes into oven, cooking 700 degrees comes out perfectly cooked throughout the indication of a great pizza that it has a little bit of a crunch to it, then has got a chew and pull like great bread. You get that right. I want pizza now. Traditional italian ovens wood burning. A gas fired oven, an oven looks like traditional italian except we dont use wood. You cant get those anymore because of the coal changes. We order from italy. Okay. Weve got. A great my fathers restaurant you cant get those brick ovens initially. Big business in california people build them in backyards. Different standards. Yeah they dont get permits for them. Franchise, right 80 0 should a what you are saying. 236 stores Fastest Growing chain in the country in 2015. 130 sales growth last year. That is right 1 2 years ago we had 14 stores, today 236 by the end of the year north of 290. I can see a franchise. Marias. I am in. We have a Fabulous Group of partners 80 Stores Company owned 20 with partners, and we selected nine super high caliber Franchise Partners most importantly got who we are as a company, the story is not only we are innovator in this space bringing pizza to people new way get it quickly greet value. Maria fresh. Get 11 in which thin crews pieda anything you want on it under 8 dont charge for extra toppings, but the story is using pizza in business as a platform to make a positive social impact the real motivation behind bess real story is what we call enlightened capitalism idea building a business unapologetically for post purpose a positive being. Millennials love these so much recognized by for an one of the top 100 places to work. Two years ago for an pranked us 7th best place in all retail so we have been recognized by team, and we have got a Fabulous Group of people that work foster us largely millennials. I love the pressure that your success reaching out to millennials, to adapt this way to make things like pizza maybe among young people pizza not they say no can be fresh, good and fast also make a big difference thanks for naught in this. Can you hold this pizza or use a fork. Bring us some . Using well so traditional neopolitan style a wet pizza need knife and fork. You can pick it you should not droop unless a khmer somes in loves to try to put as much as you can on it, people do. Bob there is only one kind of pizza, it is new york style period. Other things dont exist. We agree all well you want to use hands with pizza. Absolutely, absolutely. Maria you did bring us samples. We dont have our you are kidding . You are kidding . I spent weekend about in philadelphia closest stores in philadelphia southern new jersey, but some day i will come back with pizza. Open in new york some day. We hope to new york has a fabulous pizza culture one of the things we have to be aware of how people are used to experiencing people to be honest we have struggled where there are communities high italian ethnicity due process pizza heritage not they dont love our appease ae they have gone to the same place three generations. Leave the fork and knife at home please. Congratulations great idea earnings focus on wall street bank of america delivers, stock down a quarter of a percent we are breaking do you know he numbers when we come back harley sputters out disappointing Second Quarter driving shares trouble for motorcycle giant stock down 9 right now. Back in a moment. re on to you,. Times up, insufficient prenatal care. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. Some of the Smaller Banks have more agility and able to fill the void larger ranks due to doddfrank, have been kept out of the market. Is that what you are seeing . It is part of it but the big banks are running into problems in terms of increasing loan volume, looking at these companies is interest margins went down quarter over quarter. Everyone on television the last six or seven months have argued the increase in Interest Rates would result in an increase in the Net Interest Margin of the banks and would make a lot of money is a result. It didnt happen because what is your take on what we are seeing as far as the backdrop . Your meeting to locate capital, assets under management, how are you doing that . We are bullish overseas where there, a higher dividend yield, more upside, in the United States i dont think markets are rebelling because you have rising rates because the fed sees declining unemployment, unemployment is a story supporting everything more than proposed tax cuts and everything else. Dagen does that continue . The rising rate environment, theyll the job market given lack of movement on fiscal policy, youre getting that sense the Federal Reserve is saying if we dont get something on the fiscal side we are ready with loose Monetary Policy . I got that sense from the minutes for the last meeting. The last nine use despite slow movement by the government helping with anything whether republicans or democrats you see nine years of declining unemployment and slow growth because unemployment didnt wrap drop rapidly. We are in full employment range, when it was 4. 9 during the election trump said it was a fake a number, 4. 6, he says is a real number so when we look at this number it is declining and even though it is slowly it is a low number and you have wage inflation. Even if we dont get all the tax policy i still think we will, that is driving the backdrop and the fed will change course no matter what they say if you look historically they will adjust the may raise rates until they see the they can do that without impacting the economy. Maria the return on equity will improve as the bank returns capital to shareholders. What kind of capital to shareholders are looking at in the next couple months . Who is poised to raise the dividend . Everyone will raise the dividend, increase stock buyback programs in place, there are ten banks, citigroup leading the charge so to speak, who will pay 100 in dividends and stock buybacks. If the company reduces its capital in rising Interest Rate environment lowering the value of the business and reducing its ability to grow earnings. Going by the stock, if you look at the Federal Reserve talents sheets, that reserve Balance Sheet lost 400 billion in Bank Deposits off of the Federal Reserve endowment sheet. They are putting back the 400 billion that the banks took off. They are going to tighten. They are going to replace the money banks are taking by the Balance Sheet. As jamie gaiman indicated a couple days ago you would have no idea what the impacts would be on the marketplace and the analysis of the Federal Reserve will go beyond what these people are saying in these speeches, look at the Balance Sheet and what is happening to Bank Deposits and you better be worried. Dagen you are worried about a selloff coming. If you are lowering the net value of a company i dont see a reason to buy a stock, you may financially engineer the stock so it looks good but the fact is you cant lower the capital and a rising Interest Rate environment and not harm the value of the company and the ability of the company to increase earnings. If people want to buy into that they are making a big mistake. Maria Important Information you shared with us. You are putting money overseas, you like the emerging markets like china . Most emerging market countries, the entire market capitalization is less than apples. We are not betting on one specific company, broad index. Maria what about europe . We use the broad index. On an Exchange Basis that is a big impact on regulations being bantered around by the administration. When trump was elected there was a lot of concern, overseas markets and emerging markets, hes focused on other things, people are less concerned, markets are less concerned about regulations. Maria what about regulations going on between Great Britain and the European Union . Great reason to be indexed. If you look when brexit happened we saw a negative impact in the United Kingdom but benefiting country like germany quickly so when broadly are located, Congress Moving from one market to another. Dagen is there one bank you would buy right here . Today blowout earnings in my estimation, by Pnc Financial and i do like bank of americas return even though i am not crazy about this quarterly result. Thank you, gentlemen. Subscribers surged, pushing expectations in secondquarter report, 100 million customers, Stuart Varney weighs in on what is next, and tackling Virtual Reality how the Baltimore Ravens bring hightech holograms to the gridiron back in a minute. [brother] any last words . [boy] karma, danny. Karma [vo] progress is seizing the moment. Your summer moment awaits you, now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Maria tough day for harleydavidson, stock in the red following the earnings report. Nicole pedallides is watching it drop this morning. Nicole is down 10 this morning. Earlier this year we heard from harleydavidson that shipments would be lighter. This is the first quarter, seeing it again, stocks down 81 2 and ultimately missing on earningspershare and revenue as well. Concerns are not only the economy but the overall political uncertainty, so many stories but the truth is and people are concerned that the hardcore harleydavidson fans are an aging group, harleydavidson in the next decade, and in the next decade, bringing in younger riders, 19,000 bike that has a better torque, didnt necessarily do so. With that in outlook that is a tough one and under pressure. In netflix, and elsewhere abroad. With netflix, that number of subscribers is more for the First Time Ever and 10 today puts it into a new category, an alltime high, analysts have boosted 210. How are they doing so well . Investing in original content and had 93 emmy nominations, more than the 16, stranger things, house of cards, orange is the new black. These original pieces of content are doing fantastic. The one concern jpmorgan said is the free cash flow, spending a lot of money to get this for all the folks, and on analysts love it. Big stories and harleydavidson, you are a harley driver. Fat bob. Great, got them tuned up and ready to go. Dagen she was a harley has not figured out how to lauren younger riders and build an entirely new younger face. Mary mack we had the ceo on trying to appeal to women. Their merchandise is not that cool. A lot of leather, a lot of oldschool. I am a young guy. You are not merchandise i am the needed customer, you own two. Stuart varney will way and on netflix. Stuart no, no, no. I have i used to drive a triumph 650. I know it very well. I used to arrive at a stop sign, a red light and a fancy sports car next to me and gun the motor. I beat them every time except when i went against the lamborghini. Is that better than the fat boy . I dont know. Stuart i am now an american. I agree that harley is a great bike. How about netflix . I woke up this morning, found out about the healthcare fail and thought surely the stock market would plunge on the ground the tax reform now looks less likely. I was wrong. It appears the profits reported by netflix and upcoming profit reports from the big five Technology Companies enough to put a floor under this market, futures are beginning to show the more steady declines, maybe investors turning around and saying if you have a healthcare fail, we will have real trouble getting a tax cut past. That is the state of play. Good profits from the big five expected to be good profits, the taxcut, little doubt about it. And unsettled feeling on wall street. Dagen tax reform is what people want to see first. We will see you then. Varney and Company Begins top of the hour at 9 am after mornings with maria. First, the Houston Rockets go up for sale at a sky high price tag, how much the team is expected the net next. baby crying slow jazz music fly me to the moon and let me play bell ringing audience cheering changed our lives. Y a mattress of unparalleled value. Love at first night. Im a softer, happier, friendlier version of myself. Perfect sleep changes people. Transform your life at casper. Com. Try their mattress for 100 nights with Free Shipping and returns. Casper. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. The end of an era for the Houston Rockets, more on the latest nba shakeup. If you think the nba 24 billion deal has sent player salaries into another orbit, team values have skyrocketed and emphasis is on rocket, Houston Rockets announced the team is up for sale, the last 24 hours Leslie Alexander says i made this decision after much deliberation with family and friends and do so knowing the franchise is in great shape with players, coaches, and nba real estate. And this february, forbes estimated the value it 1. 65 billion. The actual Purchase Price could dwarf the figure. The la clippers told for 2 billion and. Have billion dollars, 10 months before. Hiring a new employee with this man be an attractive candidate and only for four interceptions compared to 16 touchdowns for the 49ers, rushed from 450 yards, stats on the field, publicly protested. Michael vick says he doesnt Jason Whitlock is about his locks. First thing is cut his hair. Not here to be politically correct but even if he has rules in that, he should not represent himself in terms, go cleancut. 72 of americans are the antiand some stance was unpatriotic. By watching game film but getting to face them virtually and practice. We are looking at a virtualreality system that is a mixed reality. Players where the special lenses and look through and see holographic images of players of other teams coming at them. And looking at training camp, ben roethlisberger, and other stars, and feels like cheating. The future is here. Parting meeting someone is part of this, teams were doing everything they can to have the best advantage against their opponents, the technology is there to say we are using the latest and greatest. I was on the west coast working with a company, you will have virtual and augmented reality in the glass with a lens, battery and it will work, you will be able to blueto living in the present. What if i only have a dialup modem in your head . It is coming in every industry. Maria the houston astross gathered on the field last night to remember a glove. Carlos beltrans glove, havent used it in two month against the seattle mariners. Hasnt played since early may. He said the teammate was having fun like at a funeral and a designated hitter. Why you need the glove, they had a little more service. Great stuff, catch the sports report on fox News Headlines 247 or serious x and 115, we will be right back. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Big show tomorrow. Were headed live to washington d. C. Focusing on tax reform. Ill be talking with house ways and means commissioner kevin brady and the teamsters president , james hoffa. Great show. Well see you tomorrow. Here is Stuart Varney and varney company. Stuart thank you very much indeed. On health care, the Republican Party failed to govern and President Trump has failed to lead. In the senate the obamacare reform bill is dead. Good morning, everyone. Last night the president held a state dinner and urged senators to get something done on health care. As the meal wrapped up, two more republicans announced they would vote no. Mitch mcconnell announced regretfully the effort to repeal and and replace obamacare is dead. The president called for a new Health Care Plan and said the dems will join in. They will try a simple Obamacare Repeal followed by a