All right. Everybody. The four days of misery are finally over. And tug boats slowly pulled the triumph to alabama last night and people were literally kissing the ground as they got off the ship. Engine failure, let that ship power for four days in the gulf of mexico and passengers without electricity or working toilets. Now, to compensate, carnival said it would give each passenger 500, a free flight home, a full refund for the subpoenases on the cruise and credit nor another Carnival Cruise. In the big picture im saying it will not hurt carnival in the longterm and they have plenty of insurance and get this, the triumph is bahamian flagged ship. So, if passengers want it to sue, they will have to go through the bahamas, not the u. S. Judicial system. So, welcome home, everybody. Lets see what youre going to get. A big welcome please for Elizabeth Mcdonald and joins me early this friday morning. Weve got so much to get through. We need liz. Im ready for you. The extravaganzaa, more personalities driving the news and lets start with nancy pelosi. She suggested that she opposes a pay cut for congress, because it would diminish the dignity of lawmakers jobs. All right, liz, go at it. Im not sure about the dignity given whats going on in congress, but yes, i do have a lot of Civil Servants and firemen and teachers, but let hee back up. What shes talking about the cuts, spending cuts coming march first, meaning that congress would have to take a pay cut and i dont know if nancy pelosi wants to be taking like that, stuart when the congress is asking for more pay cuts from all americans and tax hikes. It sounds like a juxtaposition, doesnt it . Dont cut my pay because its undignified. You lost, youre going to have to take a pay cut. Leaves you vulnerable to a lot of criticism. Including issues of her taking junket trips on government planes. Stuart lets not forget that. All of that sound bite were not going to run again, ladies and gentlemen, where she says you have to pass this bill to see whats in it, referring to obamacare. Were not going to run it, is that okay. And Elizabeth Warren also making headlines saying before congress yesterday, why dont any Bank Executives, why are they not in jail . Why arent they being prosecuted . Listen to this. There are district attorneys and u. S. Attorneys out there every day squeezing ordinary citizens on sometimes very thin ground and taking them to trial in order to make an example, as they put it. Im really concerned that too big to fail have become too big for trial. Stuart thats interesting, thats Elizabeth Warren, a lot to do with financial regulation, shes now a senator from massachusetts and shes i think thats a populous approach to take. And thinking that its a conservative, true conservaaive First Principles of capitalism approach. Interesting coming out of senator warren. Shes essentially saying that the bankers are too big to jail and also too big to manage and too big to fail and she doesnt like that and shes saying possibly, what im reading into what shes saying, bankruptcy should have been the course for breaking up the banks when they start today collapse in 2008. Break them up and make them for productive down the road. I think though that that message, jail a Bank Executive or two was maybe popular. Im saying its a populous approach and that may be politically popular whether theyve broken the law or not is a different story, this this is politics and i say its popular. Now what, it was very difficult to jail any of these bankers because there was an account be fraud that was very difficult to prove because the rules allow this fraud to happen. Now, ive got you here for another minute. What do you think of dodd frank . I mean, i dont like it, i think we should have broken up the banks as opposed to impose the regulatory bureaucracy. I think you should have broken up the banks and its very difficult to legislate out of existence, corruption and we have all the rules in washington d. C. 1991 after the collapse, we had a Systemic Risk rule put in place and thats been there. What we need is more spines, in the enforcers in washington d. C. They have the rules they need. Stuart i just dont like bureaucracy. Thats my i dont like bureaucracy, clean cut laws and prosecute on the laws, thats what i want. Stuart bureaucracy perpetuates itself. Its weve listed the personalities in the news and more to come, but right now, check out this video of russia. A 11 ton meteor shot across the sky, faster than the speed of sound and when do you that you create a shock wave, that shattered windows and set off car alarms for miles and could see it for 125 miles. The witnesses say a burst of light and thundering sound that filled the air and hundreds were injured from broken windows, yes, it was the sonic boom that caused the damage. Now, thats the only old of this world story today. Nasa says an asteroids half the size of a football field will miss earth today by 17,000 miles, that actually is very, very close. Its the closest known fly by for a rock of that size. It will pass inside orbitting satellites. Dont worry it will not hit the earth. We are relybly informed. Democrats continue to push, tax the rich. The latest pitch in 54 billion dollars brand new taxes on the rich and National Review columnist joins me next and back on the opening bell which will be interesting this morning, in just a moment. My new hearing aids instantly changed my life i feel so much younger. My husband has his confidence back. And he can enjoy the laughter of our grandkids again. I can have fun with my friends again. Feeling isolated . Ready to reconnect . The aarp Hearing Care Program provided by hearusa can help. Call hearusa at. For a free hearing checkup. Plus, receive a free 50 dining card when you get your free hearing check up. Aarp members receive a 20 discount on breakthrough hearing aids. Call now, and youll even get a free 3year supply of hearing aid batteries with your hearing aid purchase a 100 value. The aarp Hearing Care Program provided by hearusa comes with a 100 satisfaction guarantee. Call hearusa at. And start loving life again, today. Were teeing off for the last trading session of the week. And the Dow Jones Industrial average closed out around 13973 within striking distance of 14,000 and were expecting the dow to actually be pretty flat as we open up trading this friday morning. And theres some stocks, big names in the the news, out with their earnings and Food Companies especially are going to be in the news this morning. And weve got stuff coming for you on herbal life which has been up and down like a yoyo recently. All right, the bell is ringing, its about to stop ringing and as i always say when it starts ristarts stops ringing the trading begins. And give me an opening trend. Thank you very much be indeed. Down a third of a point. Not exactly an opening trend, but its a start. Now were up a half point. I told you flat. Herbal life, that stock a guarantee is moving big today. Day traders, keep an eye on this one. Carl icahn revealed hes got a big stake in the company. Its a weight loss and Vitamin Company by the way. Nicole, how big a gain. Were looking at herbalife expecting 20 cents to the upside and here it is, im going to bring you right to the post. Okay, its up 15 right now and whats so interesting is how carl icahn finally reveals that he does have this stake and head to head, and thought it was a house of cards, going to sear he owe and remember when icahn called a big loser and now hes going to short squeeze, and this is the battle of the billionaires. I hate to be technical, but this is whats called a short squeeze. All those people who bet the stock is going to go down, now have to buy the stock because its not going down, its going up because of carl icahn, thats a short squeeze. And all of that that you take to the soda shop, thats a short squeeze, but this is a stock were talking about. Stuart herbalife, day traders watch out this is moving sharply. Dow jones industrials up in the first minute and a half 4 points. I told you flat. And the big name Good Companies are reporting profits. Burger king, reported better than expected money coming in, helped by new menu additions, it went big. Up 2 . And also moving is smuckers, of course, they make jam and jiffy Peanut Butter and folgers coffee and they did well, and up 42 cents, 92. But they had a 32 jump in profit and theyre only up 1 2 a percent. Lets see weve he got kraft and i cant list all the Food Companies in the kraft umbrella. They made less money, less money came in and thats not hurting the stock how much. Its up 11 cents. So, Food Companies are in the news. Whats making news this morning is the the continued gas price spike. Look at this. Were now at 3. 64. Thats the National Average for a gallon of regular. Up another penny and a half overnight and keeps going up about a penny a night and its up well over 30 cents in the month. And we are more, were paying a whole lot more, and very clearly. All right, the National Average spike, by the way, 35 cents in one month. And nasa spike. And you know, were 46 days into the new year, weve seen taxes go straight up and we have another tax hike proposal today. Here is Columnist John Fund from the National Review. All right, john, here is what i say. That the second term of the administration is characterized by tax the rich, spend some more money, and ignore the debt. How far am i from the truth . Well, i think that was the policy of the first term. Now theyre just being explicit about it and honest about it because the president never has to face the voters again. Is he going to get it, another tax hike on the rich and all of these Spending Plans that we heard about . Well, you know, we have a weak economy right now. Theres one school of economic thoughts, to monitorism to vegetarianism and you dont raise taxes in a weak economy. Stuart does at that count . Is that high profile for most of us . Well, thats whats fascinating about this president. I think its the first president in my memory whos disconnected from policy and is all politics, pure politics, he wants to crush the Republican Opposition and reshape government and he wants to be the next liberal lbj or fdr. And the economy, well, it will sort itself out. Now, the a latest democratic proposal is a big tax increase on people making more than 1 billion dollars a year, i misspoke, its over 1 million dollars. They want to take a third of your income by the feds alone. Is he going to get that . Is he going to get that through congress . Will they do this . Just political strategy . I dont think the president believes he will get much through congress, i think he wants to use it as a club to win back the house of representatives in 2014 and then a very impressive agenda to try to push through, including perhaps a value added tax, and thats what is happening. All of this is skirmishing, and were in Campaign Mode for the 2014 election. Do you think thats going to happen . More and more and more taxes . No, no, more and more proposals for taxes, if the president cant get them unless the democrats retake the house in 2014. Stuart tell me about ben carson, made a huge splash on the program. New face of conservativism. The new face of common sense, im a member of no party, if i were, it would be the common sense problem. Solutions to problems. And i think with his background, a distinguished physician and surgeon, someone who has helped thousands of people private scholarship funds. I think he has the moral authority and the standing to speak for much more than just conservatives. Not heard the last of ben carson . This man is on a role and hes he retiring from active surgery in june and he says that opens up a whole lot of possibility and my piece on National Review i speculate some of those may involve politics and punditry. In politics, what position could he run for . Well, i dont think hes interested in this, but the governor of maryland is term limited and could run for that in 2014. I think in the modern america, you can have an enormous impact without necessarily serving Elective Office and i think his personality may be more suited towards being a National Symbol of common sense. Quickly, what he also said, too, in his speech. Hes a doctor, doctors heal and essentially say that people are in lawyers, lawyers like to fight. Theyre trained to win, we need to win over problems not just win over, you know, partisan bickering, and i think that kind of approach because 99 of americans are not lawyers, that appeals to them. Yeah, but he also talked about he made a great case for the flat tax when he basically said that tithing. If its good enough for the bible and the lord, its good enough for us. Stuart interesting stuff. And dont be such a stranger to varney company. You call. Stuart blackberrys former chief is character out and selling stock. And what happened to the blackberry stock this morning. And sell it out. Take a look here, down 1 1 2 . There were some other headlines this morning, too, they were considering exiting south korea so there are a few headlines surrounding blackberry and of course the big runup, the following the blackberry 10 and this crowd here with cvs just opened and. Stuart so weve got blackberry what was that, 15. 14, and ouch. And i interviewed the sierra club and kept pressing him on wind and solar versus fossil. What is nationally the percent of electricity in america supplied by wind today . Ill break it out by state for you, ill give you ten states, iowa and. Stuart no, no, no, no. South dakota, 25 . Stuart all right, you did not answer the question, did not answer it directly. Dont worry. Steve goreham from the Science Coalition has the answer to my question and hell present it to us today. Ten oclock this morning, what percentage of americas electric supply comes from wind . Weve got the number. We want to hear from you, please. Varney foxbusiness. Com. Dont be shy, chime in, please. Its friday. Ive seven early movers, the network, testing equipment maki making agilent will not make as much as expected. And the future for the tech firm, log me in. Down 25 . Not the case, data link, an updated forecast there, the stock is up 8 and theyre moving again. Disappointing results from b and g food make accent and cream of wheat. Down 5 . Strong profits from the mortgage maker elie mae, down 12 there. The lower earnings at the software making q link technologies, better than expected and the sock is up a lot. And 17 . The dow has opened within hailing distance of 14,000. First ten minutes of business, here we go, up 12, 13,985, lets get on with it, shall we, 60 seconds here we go of what else were watching for you today. We say the Housing Market is a bright spot in the economy. Accord to go one report. People with millions in the bank are not buying, theyre renting. Are they afraid of some kind of bubble here . Whats going on. Well talk to the wall street journal reporter who brought us the story and hidden implications of obamacare, they keep on coming. Doctor shortages, employers cutting workers hours, but what about the farmer industry. Should you be getting into drug stocks . Here comes obamacare, should you buy them . Well find out at 10 35 this morning with a premier analyst and yes, those pagans losers are at it again. This time and the university of missouri is honoring pagan and wiccan holidays the same. And the price of oil, down sharply so, 95 a barrel. Ill be interested to see the price of gas with oil at 95. The rich are fleeing high tax states, moving to florida and other states. Where there is no state income tax. Our next guest, caters to the rich and shes seeing business booming in florida after this. announcer at scottrade, our clients trade and invest exactly how they want. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can lk to someonwho knows how i trade. Because i dont trade like everim with scottde. Ke me. announcer scottrade. Awarded fivestars from smartmoney magazine. Well, we said wed open floor and we are pretty flat. Literally closer to 14,000 torques 13 point gain on this friday morning as of right now. And another example of what im calling the great tax migration, that is people moving from high tax states to new york and california over to florida to take advantage of lower tax rates and next guest caters to the rich in florida and says that business could not be better. And here is lisa of quintessentially. I believe you took your business from the northeast to florida not because you wanted to escape high taxes, but because you were following the money that was going to florida. Is that accurate . Yes, absolutely, stuart and we have 65 offices around the world and our core business is obviously, life style management and private jets charter. And when we were looking three years ago at setting up operations of the jet business and in the u. S. , we certainly will looking at growth patterns, obviously, and in each individual state, but likewise, we were looking at the migration of High Net Worth individuals to florida and weve seen the last number of years na business has grown, 18 in three years. And obviously, florida is very attractive for a number of reasons. Stuart wait a second, is it taxes . Is taxes the primary reason that people are leaving places like new york and going to florida, thats it, taxes . I think its a number of reasons. I think taxes are certainly a huge and its such a huge key factor, but i also think that you know, youve got great quality of life down here. Obviously, the weather is pretty much perfect year round, but certainly, you know, weve seen a lot of big business, recently moved to miami and Governor Scott in florida has done a great job with incentivizing big business to move to miami pand the hedge fund managers, Apex Fund Services and all of these type of big business and big finance caters to these types of clients in this region and i think, certainly, miami is a lot more than beaches and cruise ships, now, theres a great cultural revival, huge emphasis on contemporary art and philanthropy. So it offers a total life style choice for these type of giants. Do you encourage the tax, im not going to call it tax avoidance, but minimizization angle of your business, do you . Well, im just happy that business is doing well, you know . And so were global with 65 offices and look after clients all over the world, but certainly business is doing very well here and we have seven offices alone inside of america so its very important for us to be, to have set up a hub in florida to cater to those clients. Last one lisa. A lot of money if you look at it globally, youve got 65 offices around the world and give me a global picture here. Would it be true to say there is a trend away from high tax countries towards lower tax environments, i mean, is that a generally, a trend that youve observed . Yes, absolutely. I mean, you even need to look at celebrities or the likes of phil mickenson said hes moving to florida because of tax rates. Stuart hold on a second. Did he announce that he is leaving california or did he i believe i heard well, maybe hes just thinking of it. Im not sure i dont want to be the one to break that scoop, but i heard i certainly heard that you know, he was considering it and a number of the big golfers are based out of florida for similar reasons and obviously the great golf courses, but, and you know, we do see that trend, absolutely. Stuart all right. Lisa, thanks very much for joining us. I can can see florida attractive. Back drop to your shot is an oxana palm tree. Come to see us soon. Thank you. Stuart and 9 48. Gold report. Barely above 1600 an ounce. Okay, were down today. The pagans losers at it again. This time here at home. Wiccan and pagans holidays treated just like christmas at one university here in america. Find out which one in a moment. You know, were always talking about pagans losers in europe, thats my expression and i use it it a lot. Okay . But the United States might not be too far behind. The university of missouri has put wiccan and pagans holidays on a par with christmas, thanksgiving, hanukkah. The school is making an effort to include everyones belief. Liz, youre still with me. I want to know is there no belief system, any belief system which we will not put on a par with christianity, judaism or established religions . It seems like were headed that way because of the freedom of religion. But the Internal Revenue service does not to my mind recognize wiccanism as a eligion and hasnt organized has a nonprofit. This is an excuse not to be a cannibal, an excuse for the students not a study and halloween at the mid term and a way to look at it. Stuart i think its more than that. This is paganism making an entrance into the United States encouraged by our universities and the inability to make a moral judgment. You know, youre not allowed to make a moral judgment in america today. Are you . Oh, paganses, just fine, bring on board, well give you a holiday. 1 of americans say theyre wiccans and goes against the work ethics, judeochristian work ethics to say you dont have to study at university of missouri well let you not study during your wiccan holidays. Stuart ill try to calm down. Thank you for being with us. Delighted. Three big super rich personalities in the news. George soros, new secretary of state john kerry, and Warren Buffett, yes, the Warren Buffett rule. On the agenda coming up and also on the agenda, Climate Change and the carbon tax. Yesterday the environmentalist made the claim that green energy is cheaper than coal and natural gas. Really . Well get the facts and a reaction to this after the break. Clean energy, thats also available here in the the United States, thats coming in now cheaper than coal. Cheap her than new gas, puts more people to work than dirty fuels like coal and gas. Wait a minute, wait a minute, wait a minute. But that doesnt mean i dont want to make money. I love making money. I try to be smart with my investments. I also try to keep my costs down. Whats your plan . Ishares. Low cost and tax efficient. Find out why nine out of ten large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. All your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. 18, you always have the war among you. Forgive me but i will turn that around. The rich are among us and they are front and center this friday morning. Warren buffett wants to pile on the tax for millionaires. The man worth tens of billions has given his name to a new proposal adopted by the democrats. It will take 30 from anyone who makes 1 million the year and that is just from the feds. Billionaire george soros made another 1 billion profit by betting that the japanese yen would go down in value. He is making money from the policies he recommend that supports. Newly installed secretary of state john kerry got a windfall from Warren Buffett, his wife is an heir to the hines fortune, Warren Buffett bob heintz for 28 billion. The stock goes up, the kerris did well. Fascinating. The mega rich turn left, strivers pay the price. That is the way they get the strivers blood pumping friday morning. Let me introduce my fellow strivers, Fox News Contributor monica crowley, Charles Payne big grin, Nicole Petallides on the floor of the stock exchange. Ready or not the buffet rule is back in the democratss latest plan. They want to bring in 54 billion from the wealthiest americans and biggest corporations. What do you say to this . The democrats want evermore taxes. They will never stop asking for more taxes. We are taxed enough already. [talking over each other] the original movement, taxing enough already. Democrats are all already have a massive tax hike on the wealthiest, on job creators, on Small Businesses when they got the top marginal rates to go up 239. 6 , now they want even more on those highest earners and i emphasize they are the job creators in this country. Stuart wait a second. Not sure how to word this but democrats are going to say you republicans, you are just protecting your millionaire friends. If you dont allow this tax increase on millionaires to go through, you have to cut back on the head start program, we got to cut back on domestic spending programs which are vital. You enjoy millionaire house, say it all over again, Holding Things up. That is the political argument they have started to make an been making over the last couple years. I emphasize they already got a tax increase and a massive one on the highest earners. These are the job creators. This is nothing to do with extending and growing this economy or job creation. This is about class warfare and radical wealth redistribution. Stuart pure politics, a purely political, nothing to do with the running of the economy whatsoever. Charles the ultimate dream is a gigantic government that knows everything but is expensive to have a government that has its hands in every aspect of our lives. Stuart if are we selling a lie . The lie is that the rich can pay for all, we can have all these goodies, the rich will pay, they cannot pay. Stuart charles what we just saw with a payroll tax hike, no one advertised that. Everyone said this is a war the rich will pay their fair share and the average guy out there got his shack and said what is going on and california props 30 were going to of a sudden did this or paying higher sales tax, dont care if you make a thousand year or millions. [talking over each other] the socalled buffet rule would generate 55 billion coming in to the treasury. The federal government for five they spending 10. 5 billion a day. The Hurricane Sandy bill whites it all out. Stuart not all of 56 billion come from the superrich. If they hire somebody overseas they get hit with an extra tax bill and Oil Companies if they use tar sands which is not good for the environment they pay a tax too. I will break away and look at the big board because we got back to 14,000 on the dow industrials, we are up 27 points and a halfhours worth of business this morning. I will break away again for a stock, ups. It is moving. Nicole looking at ups, stock is up 1. 5 , a couple pieces of news giving the stock a boost. Also announcing a buyback of 10 billion, that 10 billion buyback, these two things put together, it is a new annual high. Stuart you raise the dividend. A lot of people find that attractive, ubs at 89. Yesterday on varney and company the sierra clubs executive director would not answer this question. Listen. What is the national percentage, the percentage of Electricity Supply in america by wind today . I will break out by state, ten states, iowa [talking over each other] stuart he would not answer the question. Lets bring in someone who will, and joining me is steve gorham, Climate Science executive director. The question was i will pose all over again, what is the percentage of electricity in the United States supplied by wind . Great to join you. The answer is in 2011 there were 39,000 Wind Turbines operating in the United States that produce 2. 9 of our electricity compared to coal at 42 . Stuart 2. 9 is miniscule. If the environmentalists get their druthers and we subsidize wind power for another ten years, what proportion of the electric supply might it go up to supplied by wind . Hard to tell. If we build 1 million Wind Turbines i dont know if we have the subsidies to do that. There is one big secret they dont tell you about and that is Wind Turbines dont reduce emissions and the reason is Wind Turbines only put output of 25 to 30 cheryl output so behind them you have to have a coal or gas plant. Since the wind goes up and down very fast the coal and gas plant have to go up and down very fast and run inefficiently. Just like your car when you go ten miles in stock and go traffic or ten miles on the freeway you use more energy stop and go and you put out much more emissions so by building wind systems we are creating stop and the utilities. Stuart a second question and again this was a statement from the sierra club guy yesterday and he said that using green energy is cheaper, the cost of green energy is cheaper than fossil fuel costs. Team made that blunt statement. What do you say . It is not correct. Prices are difficult to determine. The best estimates are done by the u. S. Department of energy. They do thing called love allies cost which takes into account all the capital costs of various plants but they indicate you cant really compare solar and wind to traditional forms of electricity because they count on the weather and the sun cycle but their estimates for 2011 placed wind at about 0. 10 per kilowatt hour, coal and 0. 09 per kilowatt hour, gas at 0. 07 per kilowatt hour. Let me add something. The department of energy added in artificial carbon costs to gas and coal which are not there today unless the Senate Passes a carbon tax bill and in addition, you have to build a coal and gas plant along with the wind systems so wind only replaces the variable cost of these plants. Variable costs for coal is 0. 03 per kilowatt hour and for gas about 0. 05 per kilowatt hour so we in, on land wind is 2 to 3 times as expensive. Offshore wind at 0. 20 per kilowatt hour, solar at 20 to 0. 30 per kilowatt hour, much more expensive. If you think they are competitive why does he keep pushing for subsidies and mandates so that wind and solar are adopted. Stuart we hear you and thank you for the objective opinion and the facts behind this story. We do appreciate you being with us. Come back again because this is going to be an ongoing conversation. Thanks a lot. Lets move on to her life. That stock is moving bigtime. Carl icahn hasbal life. That stock is moving bigtime. Carl icahn has a big stake in. Stuart bill packman said last year this is a fraud and he has been more stuart drove the stock down. Charles real famous investor, real famous he said it was a fraud, stop immediately collapsed, wall street taking his word. Some guys just as smart and rich as him saying weight of a minute, dan load is not a bigtime guy with respect to media, he took an 8 stake as high as 68 but the big news is carl icahn involved, carl icahn has a 12. 98 stake. He knows how to play this game as well as anyone else and that is why the stock is up. Stuart i dont want to get into technicalities but you drive the stock down, he drove it down, a lot of people betting it keeps on falling so they establish what is called a short position. Along, these two investors, mr. Loeb and carl icahn and they say hold on a second, we have a stake in this thing and the media be the stock starts to go up so those people who are betting it was going to go down got to buy it. Charles how much nehr do you have . It can go to zero. When you short a stock, piling from a firm, and buy it at two and payback the firm to make a difference but when you short your loss to the unlimited it can go from 10 to 1 zillion dollars a share. The average person playing this game is really nervous. He is not going to blink initially, but this is a wild game going on and some heavyweight guys throwing serious punches. Phil you dont want to say anything about a short squeeze. [talking over each other] stuart Carnival Cruise ship stranded for days made an non triumphant return to mobile, passengers kissing the ground after days without power or working toilets. They will give passengers 500 cash, free flight home, full refund for the trip and for most of the expenses they incurred, and it is compensation. These problems flagged Carnival Cruise lines the insurance has uncovered on the financial side. A pr problem, not so much a financial problem. Charles could be a major financial problem because he are is what they live for. You have fun. Stuart you assume future bookingss will be down because of this nasty episode. Charles you have to make that assumption. Stuart wait for my take. Charles two of them, i know there are people with a thousand cruises but a lot of people will not go back. With the other disasters they are involved in in the mediterranean the stock is around 46 and down to 30 and did come back. Stuart came back to 37. Charles didnt go back to 46 and i got to tell you something. I would be nervous if i was a shareholder. I never take a cruise but there are enough Horror Stories is just being the latest one that in particular carnival has a brand problem. The name of this ship triumph nothing triumphant about this but if they have a serious branch problem, this is not for firsttime this is happen to a Carnival Cruise. Charles they have done amazing job democratizing this type of travel. Back in the day ocean liner travel you wore a tuxedo and a dinner with the captain and as for the privilege too like Stuart Varney stuart you will learn more about my cruising habit in my taking ten minutes. Hold on. Walmart down. Why is it down . Nicole a couple talking points on walmart. In the british supermarket, you are familiar with that than i am, they cooled off the bowlen as and other things, beef costs and other things to do a precautionary move. That is not good news. I have a note from Cleveland Research company and this is interesting talking about Consumer Spending and all of america and how spending is looking a little softer in the last three to four weeks due in part to a row and Social Security tax increases, delayed tax returns and rising gasoline prices. You know what they say . If this current weakness persist that you may see walmart react with more excessive pricing and merchandising which could impact their gross margins. Not good. Stuart the interesting point is the softness in spending because payroll tax going up and gas prices going up is a national indicator. Nicole can i Say Something about carnival . That is why i think people will book those trips. Everybody is looking for a bargain. They have shortterm memory, the stock may not recover to earlier levels but there bookings stuart when yet again Nicole Petallides is right because thank you very much. Excellence of. That was interesting. Spending is off because of tax increases and gas prices going up. I have got to go. Rich people got millions of dollars in the bank. They can buy mansions in the most exclusive neighborhoods but they dont. They rent. A lot of them do. We will find out more about renting versus buying and why people are doing it after this. Today is gonna be an important day for us. You ready . We wanna be our brothers keeper. Whats number two we wanna do . Bring it up to 90 decatherms. How bout ya, joe . Lets go ahead and bring it online. Attention on site, attention on site. Now starting unit nine. Some of the worlds cleanest gas turbines are now powering some of americas biggest cities. Siemens. Answers. Stuart tiffany is suing costco for selling counterfeit ring allegedly. Tiffany alleges a slew of charges including infringement and injury to its business reputation. Costco says the rings are in no way associated with tiffanys. Burger king made a profit, nice money coming in. They cut costs as well by tweaking to a franchisee loans model, stock is up nicely. The rich, many of them are renting a, rather than buying. Why would you do that we have millions of dollars in the bank. Why would you do that . We have an answer for you next. With the fidelity guided portfolio summary, you choose which accounts to track and use fidelitys analytics to spot trends, gain insights, and figure out what you want to do next. All in one place. Im Meredith Stoddard and i helped create the fidelity guided portfolio summary. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Stuart look at this video from russia, and 11 ton meteorite, across the sky faster than the speed of sound. That means you have a sonic boom, a shock wave. That broke windows and set off car alarms, left the trail of white smoke all the way through 125 miles. It did not actually hit the earth, broke up, a couple chunks hit here and there but no big step. There was a burst of light, a thundering sound filling the air and hundreds of people were injured by flying glass. The sonic boom broke windows. That caused the damage. Theres also this. Nasa says an asteroid half the size of a football field will miss the earth today by 17,000 miles. It will pass inside orbiting satellites. That is very close by space standards i guess. Fear not, it will not hit the earth but is a close shave. Here is another sign of what some say is a weak economy. Even the rich are renting property, houses. Candace jackson wrote about this in the wall street journal and joins us now. I read your article in you start off with a friend of this program, don peebles, wealthy guy, he is renting a place in manhattan for 35,000 a month. He is renting, not buying. Why are rich people renting and not buying . A variety of reasons. The calculus is similar for regular people. If you are living summer two three years it might not be worth it to buy. Others see a lot of instability in the markets so they are nervous even though they could afford to buy and stuart is that accurate . Some very rich people are worried about another downturn in housing . Perhaps not another downturn that they wont get the return on their investments. The other factors markets are doing well these days. Folks like don peoples or other wealthy people who cannot afford to invest in the stock market or elsewhere within their own business are choosing to do that instead of putting the bulk of their money in real estate. Stuart you say the don peoples of this world, people like that are saying i will get a better return in the stock market than i am in the high end Property Market . That is what a lot of people are saying, what a lot of people said, putting money back into their own business today. Stuart Charles Payne has been saying exactly that. I say the best investment in america is a singlefamily home in a good neighborhood, not a penthouse at 50,000, singlefamily home and a good neighborhood, charles disagreeing with me, stocks are better. Stuart is a great investment. Stuart charles everyone should strive to own a home. If you are buying a home for just a few years are you going to get a return on your investment . Probably not. We are not in a bubble era where youre getting 20 year. Stuart you talk to people with 50 million, hundred dollars worth of capital behind them or more. A lot of these folks the and many homes so they might have three or four five houses to jews marked to market where they see it is worth it to make that investment. Maybe they rent in new york but by and miami. [talking over each other] i am curious about the flexibility element in terms of uncertainty in the rest of the economy. Texas might be going up in new york city, new york state, california, in illinois. A lot of people want the flexibility to say i dont own this property. I can do that anytime. I can moving six months and go. There is a huge part of it. The same way it would be for middleclass person. That is the benefit of renton, superflexible, pull up and go, you got that money freed up to do Something Else with. A lot of the wealthy are losing a lot. Charles what percentage should pay i got it like that . Someone can rent a house in the hamptons for 1 million for a couple months in the summer. I marvel at rent a yacht for 200,000. Caught it like that. It used to be the trophy estate. Now the trophy rental. This is another trophy you can have. I am paying 500,000 a month for this crazy and house on central park. Another thing you can do so not . [talking over each other] stuart you write for the mansion section appears on fridays in the wall street journal and you wrote this article. Thank you very much. Appreciate it. Carnival cruise publicrelations disaster but only in the short term. That is my opinion and that will be my cake and it is next. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Did you know not all fiber is the same . Citrucel is different its the only fiber for regularity that wont cause excess gas. Its gentle and clinically proven to help restore and maintain regularity. Look for citrucel today. Stuart the dow within ten points of 14,000. There you have it. General motors made some ground over the last year but it is down today and always the question why . Nicole a couple things. You have an analyst downgrade down 2 , another analyst who goes by on the weakness. One of the victims of General Motors talking over the last 24 hours, they seem to be happy, he was counting about chevrolet, gmc, cadillac, they have a nice array of vehicles in the brands to offer customers and the corvette. Seems like they have a great bright future. Stuart dry what hy wonder what would happen [talking over each other] nicole what we have all been through for the chevy volt. I would have to go to gm and talk to somebody. Stuart when i suggest i might buy one, no idea how many emails we got. Thank you very much. I got to move on to a top story. One College Basketball player could lose out on millions of dollars after suffering a serious knee injury. Could this have been avoided . The loss of money . We will talk about the rule that forces kids to go to college out of high school instead of straight to the nba. That is at 10 45. All morning we have been showing you the passengers finally getting back on dry land after four days drifting at sea on a cruise ship without power, it has not been pretty. Have the Horror Stories put you off of taking the cruise . Have a . Here is my take. No. I dont think it will put people off cruising. I dont think bookings will take a hit, full disclosure, i have only been on one crews in my life and i am not planning to take another. Seasickness gets to me, not the fear of being without a bathroom for four days. People who like cruising, people who find a cheap and convenient vacation will still line up for more. Why am i so sure of this . Because of history. Last year another carnival ship ran aground off the coast of italy, people were killed, terrible publicity. The captain was wining and dining young lady when it happened. Lets not forget the cruise ships that have been hit with mass sickness. Did all of that damage the cruise business . It didnt. Carnival stock has gone up over the last year because passenger levels stayed strong. Could it be that the public is actually very smart and recognizes a good deal when it sees it . Could be that intelligent people are not swayed by bad publicity . They understand playing the odds. That is what you are seeing. A successful capitalist enterprise that offers a usually quality product at a good price, tons of food, dancing, drinking pwithout worrying about drivin exotic destinations easily visited, sex at sea, a fantastic deal as long as you dont get seasick. Stuart charles will make some money, roasters charles almost as crazy as herbal, 33 short position. I dont know why they hate the stock so much, it has done extraordinarily well, compounded growth has been phenomenal but there pounding it nevertheless earnings estimates consistent we can go got, break through 50 on the stock, looking for a move of 56 or higher. Stuart 45 right now. Charles sales will increase, margins get better and i got to tell you that starbucks product was that on arrival. Not saying they wont have more competition but this is a stock that will make a gigantic move at some point this year. Stuart it is 10 35 eastern time and at that moment in time Charles Payne said he will make money charles is extraordinarily volatile. Stuart when you own it . Before our subscribers own stock. [talking over each other] charles right up front. Stuart did you buy and hold it . [talking over each other] charles it is 56 on monday i will sell it. [talking over each other] stuart lets stay on the markets with obamacare stocks and the farm industry. Joining us now is kathryn arnold, Credit Suisse managing director and global head of pharmaceuticals, welcome to the program. Here comes obamacare fully enough for implementation. I by pharmaceutical stocks going into obamacare . You dont want to buy them for obamacare. Doesnt have a lot. You might be surprised by bringing twentyfive million lives. Why isnt that a big deal . Those wives dont use a lot of drugs, only 1 prescription herman van the drug industry has to pay a tax and the government will want better pricing. We are at a point stuart i will deal with that first. Obamacare, here comes, you are saying it is not a big boost for pharmaceutical stocks. It is not there, the big money maker. Hasnt dropped to a meaningful way. Stuart coming out of that use a look get the pipeline. That is not the keystone pipeline. That is the drug that drug company has coming down the pike that are going to hit the market in the future. Some of these stocks have a great pipeline. Is that what you said . There are some stocks were that is in the stock price and some are not. The industry went to a big drought and we have break throughs in many areas. For example really sophisticated stuff happening and we are almost seeing cure rate in the drug the late stages development. Stuart hold on a second. You say cancer, new arrivals in the drug market, here they come, give me the name of the drug company that has got a big breakthrough in the cancer area. Bristolmyers has an approach which is very sophisticated, basically gets your body to fight cancer which is different from what we used to do which was to 4. And against the tumor. Stuart bristolmyerss new approach and you like it. It is a very good story. Stuart do you own it . I do not. Stuart you wanted to get in. Charles i gave up on these Big Drug Companies along time ago in part for the pipelines, also because the model, in other words they spent all this money, agreed these products and ultimately a generic version of it is going to go so the window of opportunity seems still small, seems like the real excitement and the big bang has been in biotech. Unfortunately good things take patience and hard work the have a breakthrough on the drugs side. Is a cyclical thing too. You have seen a lot of years where it hasnt been great. We are in place for 80 of prescriptions are generic now so we are close to the bottom in terms of beating down the generic against the brand and we are in a new cycle on the product side. I would take another look at the drug industry. Stuart back to hepatitis, literally cure rates are going up . Give me a name of the drug company. Three drug companies, the biotech company, abbott and bristolmyers all have hepatitis treatment we have seen peak their data which suggests over 90 of patients can be cured that is huge. It was 50 and the standard of care we have today, it is a very big deal with more data on this. Stuart when you own billy ed . I do not. Stuart and that is the hepatitis people. That is correct. Stuart bristolmyers is the new approach for cancer. Work as well as the new treatment. It is exciting. Stuart it is very interesting to get real names, real products. What about the aging population, alzheimers and other dementia drugs . This year has been somewhat controversial but we know more about alzheimer thanks to lilys program. It suggests positive for all virus which is good stuart lily, alzheimers, making that connection. That was fascinating. We come that . I would be happy to. Stuart are you based in new york . I am. Stuart thank you for joining us. The nba forces young basketball players to do one year of college before they go to the nba. Ends up costing one athlete big. Could mean millions of dollars to this person. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. Protect youramily. And launch your dreams. At legalzoom. Com we put the law on your side. Stuart up to date on gas price spike because it is still in progress, Financial Leverage for a gallon of regular 3. 64 up 0. 35. Next check, the price of oil down 1. 89, that is a big drop. Watch for gas prices in the future. Investor carl icahn said yesterday he does own 13 , that will be fourteen million shares of herbal light, a weightloss and Vitamin Company. That the announcement sent the stock up 10 . From buying shares to getting rid of them. Former chief and ceo of blackberry sold all of his shares in blackberry and that is helping push it down 4 . Pictures have appeared on venezuelan tv showing the first photo of president hugo chavez after his cancer surgery. He has not been seen in public in a long time. Obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before invesng. Risk includes possible loss of principal. 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Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your dtor, and for a 30day free trial, go to axiron. Com. Stuart they own clothing brands, north base, wrangler, lee, it is of today but i want to know why. Nicole late quarterly profit, revenue outlook that seems to be pretty good, better than expected. They are seeing growth in their brands abroad particularly in asia and other markets. For this North Carolina company which has some good old favorites like rain water and lee and northeast very hot, doing very well, of 2. 5 . Stuart lets bring in charles. You made a comment they are always the. Charles a lot of people are afraid of stocks that cause 100 a share and say it is expensive. My hypothesis is most stocks are undervalued, 10 a share are overvalue and share price has nothing to do with value. Stuart lee, wrangler . Charles it is a juggernaut. Stuart come in, brian kilmeade, a host of fox and friends, three sports stories for you, rapidfire. First item, kentucky basketball player blew out his knee, out for the season, would have been the no. One pick in the nba but because of a rule that he had to go to college for a year before entering the nba he may have lost a ton of money. Here is what i say. You should be able to go straight from high school to the nba. This is america. You make money you should be getting the money. If you are in tennis or golf, fine. We are simulcasting on the Fox Business Network on varney and company. That is fine but in this case in particular, i love that the nba made this rule. It saved to a degree College Basketball because you get a chance to see these guys who are not quite ready to go to the pros and you see these guys on the National Stage and see if they have what it takes. The insurance policy, we can lend them money, 40,000, insurance policy if something happens. He is going to recover from this, he cant play he will get 5 million. Theres a stuart you cannot run out 00 on varney and company. You are totally wrong. This is america. You do something you should get paid for. Next case South CarolinaFootball Player is considering taking out a 5 million insurance policy on his health, expected to be the top pick in the nfl draft. Your reaction to a 5 million insurance policy, to get out himself. The nfl does not want anything to do with getting our guys directly from high school. Would you are forgetting is societal part of being pro and being very rich very young and hanging out with men are 30, 35 years old. They are ready for. You see a lot of these guys never reach their potential because they cant break the starting lineup, not mike Stuart Varney if he was my agent for the agent if i had the ability i thought i had and went pro. They are not ready for this. Emotionally they are not ready, not Kevin Garnett for kobe bryant, they were ready to agree, but i think for the most part, there is a chance youre going to get hurt. There are insurance policies out there, take out the insurance policy, tim tebow did the same thing, and North Carolina, the end of having find careers in the pros and still having to be smart about it and not give up their future. Stuart i am going to move on. Wrestling, International OlympicCommittee Says wrestling will not be in the olympics starting in 2020. I think that is terrible and i cannot understand why you would get rid of a sport that had 26 Different Countries and metals in london last year in wrestling. Why would you take it out of the olympics . I feel so bad for wrestlers. I would argue that sports builds more character, more selfesteem and finer citizen than any other sports because it is 24 hours, watch what you eat, train, be focused, a lonely sport to a degree and you can be in any shape or size and compete in the highest level and the expectations for through the roof and if theyre going to overturn this and theres another vote in september as much as i love wrestlers like kerri mccoy, they have got to get the celebrities that were once wrestlers liked Donald Rumsfeld and Robin Williams and john irving great offer, kevin james, people like dennis pastor, the speaker, you get these people from the political world and show Business World to talk about what it has done, champions that had their life formed by this sport which has taken such a beating at the College Level because of title ix, you got to turn this back. Iraq loves it, bulgaria loves it, russell of the, america loves it, modern pentathlon, only played in asian countries, it is outrageous. What do you need for wrestling . You need a match which they clean themselves. What do you mean a gun and a horse [talking over each other] stuart give this guy time on varney and company are we done . Yes we are done. That was reasonably good stuff. Thanks for joining us. We may see you again. Have a good weekend. Stuart nancy pelosi doesnt want a pay cut. You wants to keep her dignity. That is next. Iressive . A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something portant to say . [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just e reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospecs or summary prospectus with investment informion, risks, fees and expenses to read and consider carefully before investing. We all work remotely so this is a big deal, our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. Hey do you wanna get a drink later . [ male announcer ] hold packages at any fedex office location. Stuart a terrific track record for making money for people who watch this program. We give you more time, make more money now with the sunflower charles i havent learned to love the bomb, kill the same about government subsidies but it is going to happen. Stuart son power corporation. Charles solar panels, residential, commercial, they will make some much money over the next four years and it is a reality and stuart when you are a child of government subsidies. Charles they will get my tax money i hope i can make it back on the stock. A big move already consolidate those gains in the next move through 12, no resistance. Stuart they make solar panels and you think were all going to buy these things and install them. Charles earnings estimates this fiscal year have gone in the last couple weeks from 0. 21 to 0. 42. Next year the street said we would make 0. 40 and the street is looking at 0. 52, this stock use the 72 a share. You dont have to like it. I dont. Stock will make a lot of money to the upside. I hate how they are doing it but stuart 10 54 eastern time. Next nancy pelosi says she opposes a pay cut for congress because it would diminish the dignity of lawmakers jobs. The dignity. They never want to cut spending in any way, shape or form and wont start with their own salaries but she has some nerve talking about the dignity issue. Nancy pelosi is fabulously wealthy on her own, she could stand to take a pay cut. If they really want dignity they should turn it by actually passing a budget. Wouldnt that be nice . Stuart last word on this program, very good. We got more time. The highlight reel is coming up next. How do traders using Technical Analysis streamline their process . At fidelity, we do it by merging two tools into one. Combining your customized charts with leadingedge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. We like this idea so much that weve applied for a patent. Im colin beck of fidelity investments. Our integrated Technical Analysis is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. All stations come over to mithis is for real this time. Step seven point two one two. Rify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Stuart the highlight reel for the week. Do not correct me. I will not. Stuart mike reagan, the voice of reason. Nicole my celebrity lookalike. Stuart rich edson does stand up comedy. You still