Transcripts For FBC Varney Company 20130301

All kinds of laughter coming up. Connell ive already started laughing. Varney company is coming up right now on the Fox Business Network and were 19 minutes past the hour. Welcome, everyone, to the Varney Company skyfall edition. Not. It is friday march the 1st. Manhattan, new york city, usa. The cuts are about to be imposed, the sky has not fallen a little way that way there there is a supermarket and theyre selling inspected meat, and a school, theyll be teaching on monday and ten miles that way, jfk, they will be flying. And newark that way, youll get a patdown, the sky is not falling, but all around me, Business Activity is weak, why is that . Is it because of these spending cuts . No, it is not. Its weak because of the tax increases that have been imposed on all americans. So, where are we going . Maybe more tax increases from the president , not a strong economy. But here is the good news, Varney Company is about to begin. 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Congress has already gone home. Theyre taking a very nice, long, threeday weekend. Now, outside the beltway, we are all still working and yes, the sky simply has not fallen, but you wouldnt know it by listening to maxine waters, listen to this. We dont need to be having Something Like sequestration thats going to cause these job losses, over 117 million jobs that could be lost. Stuart obviously, that was a slip of the tongue on the on the million number. But look, ive got to repeat this. Despite what ms. Waters says, the sky is not fallen and congress has taken a threeday break, thats where we are. Wait, whats this . The dow coming within a few points of an all time record . How about that, yes, ladies and gentlemen, all time record, close. The opening bell is next. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Whos going to clean up all those jets . Stuart okay, it was long, but i think it was worth it. The sky is not falling. All right, were a minute from the opening bell. Lets get right into it. David, here come the cuts. What impact, tell us . Not very much. A lot of hand wringing, great drama, 60 billion between now and the end of the fiscal year, 2 of the budget. The hand wringing far exceeds the actual impact, stuart. Stuart so the sky is not falling and it will not fall economically . Youre prepared to say that despite everything that the politicians, the left is telling us . Anything that the politicians tell us should be taken with a pound and a half of salt and we know it. The country is getting disgusted with them and beginning to catch on to this game of brinksmanship created by politicians so they can then wring their hands about it. Stuart you know why we like you, david, you know why . Ill tell you i like you. Stuart we like you because you can say what youve got to say in 45 seconds flat. Thats terrific. Stay there, david, because we want a lot more from you in just a moment. The opening bell is coming up. Were going to be lower today. The Dow Jones Industrial average with be off maybe 40 points in the early going to some degree this is expected because its the first day of the month. The big Money Managers having window dressed for the end of the month yesterday and they want to make your monthly statement look good. Theyll sell today, build it up yesterday. So, you can expect, maybe 40, maybe 50 points down at least at the opening bell. The rest of the day havent a clue, but thats what youll see in the very early going. Did we get any numbers this morning . Yes he, we did. An important number, its a standout. Personal income in january was down 3. 6 . That is a whopping decline. In a moment, im going to ask david whether thats all related to the tax increases, especially on Social Security come january the 1st. Were off and running, and the dow is well above 14,000, a couple of seconds into the session, the opening trend is slightly lower, remember what Charles Payne said about a Company Stock price after the chief executive is fired. Look the at groupon, looks like investors are happy to see them go. Nicole like theyre saying, goodbye, good riddance, get out. Because basically this is a 20 ipo back in november of 2011. You see the stock is 4. 60 and change give or take and the stock is to the upside. And so theyve had a terrible quarter the latest quarter and the outlook is weaker than expected. And thats why the stock is up 2 . Actually expecting a bigger jump right after the bad news yesterday. We were expecting a bigger jump when the ceo was left. Let me leave you with this, as the saying goes, always leave them laughing. Here is what andrew mason wrote in his farewell letter at groupon, quote, we decided that id like to spend more time with my family, just kidding. I was fired today. If youre wondering why, you havent been paying attention. There you have it, a 2 bounce for the stock after that. Thats right. And get out the door, byebye. Thats right, goodbye. Dont let the door hit you on the way out. Ford sales just came in, up 9 in the month of february, year over year. Not bad for the ford motor company, up 9 . Got two more big names for you, ford was down on that news, by the way you, but not much. 7 cents was nothing. Best buy and its founder, theyve ended buyout talks accord to go a source supposedly close to the matter. And a look at the stock, up 5 , thats interesting. Our partners at the wall street journal report that boeing will cut hundreds of jobs at a South Carolina plant. It makes the dreamliner and the cuts over the course of a year and has nothing to do with the grounding of the jet or the nonunion staffers of South Carolina, South Carolina being a right to work state i should say. And lets get to david, still with us, weve got it, the sky is not falling, lets move away from the spending cut issue, i want to talk taxes. Here is my opinion, david, i think this the economy is dead flat, really, very, very weak because of tax increases. What do you say . I agree with you. We tax the wealthy, stuart, we took one or two ticks out of the growth rate. Wealthy people dont like to pay more taxes, but it doesnt impact their spending patterns or consumption patterns. They go on about their business. We then put this 2 payroll tax on working americans, 134 million of them, and we tax the first dollar up to 113,000. That was a smack in the gut by washington and you cannot expect to expand growth income, jobs, earned income, when you raise the tax on it and do so in a permanent shift. It was a terrible, terrible policy. Stuart i got that number at 8 30 eastern this morning, in january personal income down 3. 6 . Thats a big drop. Was that because of the Social Security tax increase . Part of it has to do with tax policy, payroll tax policy. Part of it has to do with the uncertainty about obamacare and costs. The job formation income creation engine in the United States is in the small and independent businesses, not the big companies. And they dont know what to do. They dont know what the health care packages are going to cost or what theyre going to look like. They are not certain as to how to proceed. They want to proceed, by the way, but they dont know which way to go and how much, so theyre sitting on the sidelines. They theyre readying decisions, but not implementing them. Stuart fast, david, one week from today the unemployment report. Do you think we might go back to 8 . Its a possible thing to go to 8 . The employment recovery is weak, what the actual number will be, will depend on how many people quit looking for jobs. Stuart got it, david, coup cumberland advisors, one of our favorites. And back to nicole, gap, shares are moving up. Why is that. Nicole it was up earlier, 1. 6 , but the point of the story is that gap which seems like it was out, feel like gap was out, and gap actually turned out to be a great performer, came out with profits for the quarter up 61 , they had strong samestore sales in north america, they had improved margins, and raised their dividend 20 to 60 cents. So, thats a really big deal and the last thing im going to say, stuart, about the gap and ill say this is that it really has outperformed a lot of the other retailers, over the last 52 weeks. Stuart yeah, they got back together again having lost it for virtually a generation, nicole, thank you very much indeed. And the dow is now down 17 points, well, 20 points below the 14,000 level. Weve been talking all day about the sky not falling, here is a place its falling, figuratively. In detroit. Governor snyder will announce whether he plans to name an emergency manager to the city, and not announce who it is immediately according to dave bing, is he going to appoint an emergency manager . Yes, theres going to be an emergency manager for detroit. And next i want to bring in hector sanchez, from the Labor Council of Latino American advancement. Youre going to tell me that the spending cuts are going to hurt hispanics, i say its tax increases that hurt you more. Hispanics, like everybody else, youre getting hurt with tax increasee, what we all need, hispanics included, is growth. Go. No, its very interesting point, the one that you make. I dont know where you get your information about tax increases. I think we need to remember that there hasnt been any tax increases and maybe thats the reason why we are in this situation in excuse me, im sorry, hector, forgive me, sir, im sorry to interrupt, but on january the 1st of this year, the Social Security tax went up on everybody who works. Income taxes went up on every person making over 250,000 and we need to be very clear on how to tackle this issue sequestration on deficit reduction by tax loopholes and the recent 2 pay let me cut right at it, hector, let me cut right at it. Hispanics. Yes. Stuart you represent the Labor Council for latin american advancement, you want to tax the rich some more. That, you think, will give us more growth, which helps you think that that will give us more growth, is that your point . We need everybody to pay their fair share, sir. And i think the middle class and most vulnerable workers in the nation, the only ones contributing to this unique issue that were facing right now, especially after we went through the biggest Economic Issues since the great depression. Let he me give an example how sequestration is going to affect the vulnerable workers with focus on latinos. Early child care is going to kick out head start causing the special supplemental nutritional programs, and aid for college and i know its a long list, let me ask you this, hector, ive seen the list, ive got it. Why dont you you have the president , and he has the power, to shift those cuts to nonessential areas, the president has the power to do that and he wont. Why dont you tell the president , cut in nonessential areas, please . Oh, weve been putting a lot of of pressure on the administration, republicans, democrats, and everybody to stop gambling with the future of the nation and the future of the community, the future of the middle class in really Pay Attention to economic policies that make sense. Lets look at europe and the case of latin american. Stuart i tell you what, hector before we leave you i will look at europe because i know a lot about europe, believe me sir, i do. The austerity thats created these problems in europe is primarily tax increases, its not spending cuts, it is tax increases. And you want more tax increases in america . It will not produce growth. Sir, it will not. Ill give you ten seconds, last word. I think we are better than that to have these unique kind of opposing anything about tax increases we need to protect the middle class and protect the workers in the nation and be the priority. Stuart those are talking points, it theyre not argument points. Talking points. Thank you for being with us. Thank you for inviting me. Stuart seven early movers, here we go. Were down by the way. And j. C. Penney says reinvent the retailer will take years to carry out. Stock down. Salesforce. Com gives an upbeat forecast and up 3 bucks, thats only 2 . Best buy and its founder ending buyout talks and the stock is up strangely. Better than expected profits at the gap, that stock is up. Do you own a pair of dekkers shoes, up better than expected. And youve seen rosetta stone. And check the big board, this is a down side move, were off 113 points well below 14,000. Here is what else weve got for you this friday morning, there are still, wait a minute, there are still two very divided camps when it comes to yahoo s chief marissa mayors decision to end working at home. And dollar tree economy, more people shopping at dollar tree because theyve got less money in the paycheck. And another indicator, coupons, what are coupons telling us how we feel about the economy . And would you pay 5 a month to have someone else pick up your mail and go through it . And then send you an email with whats important . We have a cofounder of a company who is doing just like that and they have some big backers. Gasoline overnight. 3. 77 more than a pen and a half the last couple of days, is that the start of a new down trend . We shall see. The price of oil as of now is, look at that, its down. Looks likes gas prices will come down some more, too, 90 bucks on oil. President obama says the military will be hit hard by the budget cuts. Thousands of jobs lost, middle class families out of work, after the break we have a republican kocongressman. Well pose this question to him. Is he willing to tax the rich to save some military jobs. 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. 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Are you prepared to raise taxes to protect the navy . Stuart, im prepared to put anything on the table and do the analysis if it with stands the analysis, but the analysis we have so far its not a taxation problem we have its a spending problem and let me give you a couple of examples. The same debate in january and the president said if we raise the rates we dont have any problems and within days theyve spent the money they have from raising the rates. Second thing we know, when we have the 825 billion dollars stimulus bill. 347 billion of interest, i said at the time it was going to come off the back of defense. Its not just sequestration, stuart. Weve already taken 587 billion dollars out of cuts out of the military and the military has born all the cuts. The last thing, were not able to do the analysises we see now, if a reporter writes a story against the white house wants, theyll attack him and the stories not covered the gag orders literally put on the pentagon where they have not been able to fully come to the table and talk about the analysis that we need to have done. Stuart sir, you run a powerful subcommittee, the House Armed Services cpower and force projection committee. Cant you do something to redirect the cuts . I knowconian for the military, but the president has the power so the navy is not going to suffer the way its going to suffer. Cant you weigh in and make a different set of cuts . Stuart, we not only can, but we are. I encourage the Armed Services committee, as you knows house of representatives have gone home and senate gone home. Were not. Were working to make sure by next week on the house floor, i believe it will be there and i think it will pass, we have have a continuing resolution which will incorporate the appropriations bill for National Defense so we can mitigate most of these huge concerns that we have. But after that, stuart, weve got to do a complete analysis because we have two things thats unilaterally disarming the navy. One are the arbitrary cuts not just from sequestration, but put in place, but secondly our procurement process. Right now we can literally not figuratively, increasing the time to get the platforms and most importantly the costs, weve got to undergo changes on both. Stuart we wish you the best of luck on this congressman. I know the navy is scheduled to go down to the 230 ships i believe the lowest since 1915. Thanks for appearing with us told, congressman, were much obliged for you coming on. Thank you, stuart. Stuart time for you your gold reports. Sequestration day i guess you could call it it. Were up 6 bucks. Apple investors right want the chief executive tim cook to just keep quiet. In the last five months he made six public appearances and it wasnt good news for the stock right after he spoke. Monica crowley, Charles Payne, theyre on their way and they are next. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Imagine if every time a ceo made a public statement, the stock dropped. Well, that seems to be the case for apples ceo tim cook. The last six times hes spoken, made some sort of public appearance, shares ended up going down. Charles, what do you have to stay about that . What do you have to say about tim cook. Charles its easy to say hes obviously no steve jobs. Its like following muhammad ali. What does it mean in reality . For me it means steve jobs is a guy who had a chip on his shoulder, he wanted to win every single day, every single skirmish. I get the feeling that tim cook is okay lose ago skirmish, as long as they win the longterm battle. People want the stock to be the muhammad ali of the business world, Michael Jordan of the business world. If you taught Michael Jordan how to play foozball. He wouldnt go home. Hed stay until he beat you. And i think people want that from the most valuable company in the world. And were not getting it from him. And hes too cool will losing the small skirmishes. I think the company had some issues, the Michael Jordan of the tech world for a very long and the stock had been dominant and now it has all of this competition, thats what the free market is about, samsung, and the other companies now infringing on their territory and they havent found a way to compete quite yet. Charles or tim cook hasnt made us confident they found a way to compete. Stuart the stock has been there to a long time. Yes, everyone, get happy. The sun is out and will be out again tomorrow. Next, washington leaders to meet at the white house, but do not expect anything to get done not until a tax increases stop. Much more on the nonarmageddon event next hour. Tomorrow, tomorrow, i love you tomorrow youre only a day away. 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 accou. Have given way to sleeping. Tossing and turning where sleepless nights yield to restful sleep. And lunesta® eszopiclone can help you get there. 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Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail manicks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Stuart let me introduce president obamas economy as echoed by senator harry reid. Any reasonable approach, but remember we cannot solve the problems of this country without cuts, cuts, cuts. We have cut 2. 6 trillion. We need to do more. But we are going to do it with a balanced approach. We cannot continue to hurt the middle class and the poor. Stuart what exactly has hurt the middle class and the poor . My opinion, tax increases. Harry reid and president obama want to tax even more. The miserable performance of the economy since the election is the direct result of tax increases and the threat of more tax increases. You heard harry reid bitterly oppose spending cuts. But we are not cutting spending. We are cutting the rate of increase in spending and the president refuseds to target those cuts that nonessential areas. How about cutting the 82 different teacher quality programs or the 11,000 new food stamp recipients signed up everyday. We cant do that. If we are going to cut we must inflict pain. That way we can force tax hikes on a private jet crowd. That is how harry reid helps the middle class and the poor. All right, everybody, you are looking at a live shot of the white house where at this hour president obama will meet with congressional leaders. John boehner, nancy pelosi, harry reid and mitch mcconnell. Nothing is likely to happen as a result are following it nonetheless. More proof the sky isnt falling, the entire company made it to work today, isnt that incredible . Monica crowley, Charles Payne, Nicole Petallides on the floor of the stock exchange. Check the big board, we were down over 100, now we are down 37. General motors sales up 7 , ford sales up 9 , that is not much of an impact on the stock market, it is coming back from earlier lows. Charles payne says what the companys stock after the chief executive is fired. Nicole petallides, the Company Fired its chief executive and it is up 4 . Nicole make him out the door and told mr. Mason enough is enough, this was a 20 ipo in 2011. They lost 725 million over the last three years. The stock is jumping 4 this morning on his ouster and the one thing i did want to note was yesterdays they came out with another quarter of weak numbers, week out looks, stocks jumped 24 yesterday. Today seems like a great move, it doesnt the raise those big losses that it incurred yesterday. Stuart General Motors stock, sales up 7 year over year, General Motors dead flat, no impact whatsoever. Quickly, check the share price of dollars tree, a stock we watched closely because the company said earlier this week expects strong sales, we are calling this the dollar free economy, less money in your wallet means youre looking for bargains, looking at a company like dollar tree, dead flat, had a nice run. A man who says coupons are another economic indicator. What indicator is that, doing a lot of coupons, is that strength weakness. Those automatic spending cuts are here but we know the sky is not falling. I put it to you the sky might fall if we get all the tax increases the president wants. Sandra lets make it clear were not talking about cuts, were talking about slowing the rate of growth so instead of going like this is going like this. Secondly on tax increases you are absolutely right in terms of affecting middle class and the poor most of all because you have the pike in the payroll tax rate which hit everybody, hits everybody with the disposable income and everybody has less money in their pocket to pompous back into the economy, and secondly the hike on the marginal tax rates for the highest service, those include job creators, smallbusinesses, those who were hiring the middle and working classes. They have less money because of higher tax rates to hire people and keep them on the payroll. Stuart i think the sky is falling because of the sky is to some degree fallen because we have a 3. 6 drop in disposable aftertax income in the month of january. The biggest drop since 1959. Charles absolutely right but monica said the right way, hit the middle class, and the poor, typically, an economic backdrop, the latter success, people and unless things. And 70 companies announcing 100 billion in buybacks. Theyre not going to build the equipment, and new factories and hire people because they know their taxes are going up. Is backfires and it hurts the smallest, weakest, most vulnerable economic people in this country the most. It doesnt offset the destruction of the country. Stuart i like when he gets fired up on friday morning. A good way to end the week. Now there are three articles live written by three big names in the Washington Post. Theyre all negative towards president obama focusing on taxes, spending cuts and the debt. In my opinion maybe the tide is turning on the president s. Lets bring in this is an opinion of mine, i think the media, adoration of the president , is that coming to an end . There is a period right now after politics, obama the puppet master, what a masterful manipulator. There is a squabble this week over whether bob woodward was friend, it does have the news media, we dont want to look like we are easily manipulated but if you actually watch the coverage of the sequester you have a lot of easy manipulation. They really did show panic this week, they didnt make any space, 10 of their space, this probably isnt that bad. Stuart in the next week, the establishment media is going to be scouring the land, and encourages a job or essential services. They are emotional manipulators, everything obama tries to do is emotional and manipulative, and the networks love that stuff, and sells red lobster, and it will be panic, panic, panic and sells fairness and balance that not a good formula. Stuart the sky is not falling, granted the media will look for signs that the sky is falling. Is there no other side to the fence with the establishment media . Will they say the sky is not falling . Will we not hear that all . We have to probably see some worse economic news. We went through the entire 2012 Election Campaign without them really talking about the debt, without the really talking about the idea that every deficit under president obama has been over 1 trillion. There are a lot of ways the news media think obama is historic in a wonderful way. That is not one of them and yet this is not the history that they are talking about. Stuart today we got the news of the worst drop in disposable income, personal income, the worst drop in january since 1959. I they not going to do anything with that . Are they going to ignore that . I think they will downplay it. I was listening to npr and they went on to after christmas and we will get out of this just fine. Stuart i wish you could tell us otherwise. I wish we would see a change in the armor of the president , thank you very much for being with us. We appreciate it. I really want to go to peter barnes who is at the white house. Come on, peter. Nothing will come of this meeting today you are at work. Why dont you take a three day weekend. You know nothing is going to happen. Peter the house and senate are taking a three day weekend. Every morning when you prepare for your show, you religiously check the house and senate calendar, but this morning you miss the fact that they dont come back to work until late monday. It is a four day weekend, i am going to disney world. Stuart we did just see john boehner arrive at the white house for these talks but i repeat nothing happened. You are correct. House republican sources are saying this is just for show to make sure voters see both sides are doing their darndest to try to avert the sequester right down to the wire. We do not expect any announcement or any deal. Stuart glad to see is what away at the white house. What a guy. All over it. On my way to the airport. Stuart thank you. Dr. Mark siegel is with us. Have we hit medical armageddon yet . No but as usual level give you a fair and balanced view of this, a more nuanced view than you are expecting. First of all the biggest problem we are having in the healthcare sector which dog kahlo hanging fruit for president obama are these huge obamacare taxes we are faced with and the fact that innovation is clearly getting squashed because of the way obama care focuses on comprehensive care to the exclusion of new tech [talking over each other] im setting it up that way for a reason because i actually do think the sequestration issue is do affect health care. I do think this is a small matter compared to what obamacare will do to Squash Technology but i dont like the fact that the n i h will get 1. 6 billion in cuts or the fact that medical providers would get 2 fee cut. I dont like it. Small but i do not stuart i dont expect you to like it. We are told that in georgia, 4,200 children will not get vaccinations because of the sequestration, the budget cuts. Absurd propaganda. It is absurd. As long as you keep coming on the show and telling people vaccines are important [talking over each other] going for the [talking over each other] stuart why do they put this out . If they know perfectly well it is not going to happen why are they telling us is . They want to use here as a tactic to show theyre being wrong in some way but the medical reality is it is obamacare that is watching innovation and technology. Stuart talk about obamacare taxes you need taxes to cost obamacare [talking over each other] to people know the when they sell a home they will get hit with attacks their not expected or the payroll taxes they are getting hits under medicare because of obamacare . That is the issue. That is the huge elephant in the room. Stuart to sum up. Obamacare is watching the Health Care Economy but on top of that i do not like that the and i age, shows you how arbitrary this is. Small compared to the fact the we are not in an environment the we will not see innovation. Stuart is it possible for the Nasdaq National institutes of health to cut back a couple administrative assistants, cut drivers here and there, a couple new buildings, cut back on that as opposed to basic research and vaccinating people . Fair enough. Theres a lot of blows in there and i would like it if the bureaucracy would get trimmed. Stuart dr. Mark siegel, not bad, not bad. Toyota sales coming up, gain of 4 . I want to know where that stock is. Nicole this was 135 stock back in 20067 and so many issues, as a tank and made their way back. Pretty reasonable here. They have been very encouraged by sales of the toyota avalon, helping their numbers along so you are seeing an up arrow up 1 4 . Stuart we will take it. Thanks very much. Yahoo s chief tells workers that they cannot work from home. Her comments sparked outrage and serious debate through the week. After the break the two sides of the issue, one woman who agrees, one who does not, they make that case next by heres what you miss from our last hour. David cotea does not believe the sky is falling. Anything the politicians tell us should be taken with a pound and a half of salt and we know it. The country is getting disgusted with them and beginning to catch on to this game of brinksmanship, created by politicians. Stuart the founder of best buy, Richard Schultz has cooled his plan to buy the Company Actor best buy rejected his 1 billion minority stake. Under the proposal of private equity, would have received a set on the board, the deal is off. Best buy stock is up. Boeing announced they will cut hundreds of jobs in the South Carolina plant which makes 77 dreamline is, job cuts have nothing to do with recent groundings or because South Carolina is a right to work state. Shares of boeing at 76. Facebook has agreed to buy at once paid the service from microsoft, it measures how effective ads are on websites. This is another tool for facebook to use in its battle against google, shares are down. Yahoo s cheese made headlines, work from home or not . The debate next. [ male announcer ] how do you engineer a true automotive breakthrough . You give it bold styling, unsurpassed luxury and nearly 1,000 improvements. The redesigned 2013 glk. The next great advance from mercedesbenz. Starting at 37,090. Stuart chief executive Marissa Mayer ordered to workers to get in the office or get out. Caused quite a stir especially with working mothers. We have two working women with us, sabrina shaker from the independent womens aborted washington and Debbie Madden from cyrus innovation is here, two opposing views on this subject. To you first. You are sitting next to me. Going to work is better. Make your case. Thank you for having me. Telecommuting is not a new topic. It has been around for decades but Marissa Mayers decision to end effort yahoo is an interesting conversation. Individual can be productive from virtually anywhere but that is now were talking about. We are talking company productivity. It is more than the sum of individual. [talking over each other] in my experience facetoface engage in conversations, water cooler chad is where the productivity lies. Stuart i know you are getting into this. You said a working from home, you are defending working from home. I dont think theres a 1sizefitsall policy but the genie is out of the bottle and americans have shown employers they love being able to have workplace flexibility, to share jobs, to telecommutes and the traditional workplace we used to think of in which people came to their desks at 9 00 that left at 5 00 is no longer reflective of the twentyfirst century life style in which people want to be able to take care of children or care for an aging parent or have a life outside the office. Stuart theres an element of goofing off when working at home . Nobody knows what you are really doing. There are definitely challenges. I am the director of an office which is virtual, everybody works from home. That poses for to give a challenges for me in a managerial position. How the line of people are at their desks when they say they are but on balance it allows me to attract better talent. This is where the mayor will have trouble, how does she compete with other companies that are offering more Flexible Work arrangements . Stuart miss maher is very wealthy. She is the founder of yahoo employee she has a nursery in her office for heavens sake. Very few if any other working moms can do this. I am a working mom myself. Stuart do you insist on going to the office even though you are working mom and your child is someplace else . Yes. My number one priority not only for myself but my entire corporate base is work life balance. I dont see it as exclusive of happiness. Cote location is happiness. We have made it so you can come to the office and still have Flexible Work hours, unlimited sick time, 40 hours per week for professional development, independent learning. I dont see one as withholding the other. Stuart sabrina, would you work for a company that did not allow you to work from home . Right now i would not because like debbie i have three and children like to be there when they get home from school and i like to be able to occasionally juggle my schedule to accommodate them but what is so funny about this conversation is a few months ago the university of texas at austin put out a study that found that people who telecommute work more hours than their colleagues in the office and a lot of women at the time were appalled by that. Oh no, we are working more than our friends in the office. Now we are hysterical because we might get rid of telecommuting. It is important to keep in perspective that theres going to be a different policy that works for every company. Let me close with this. I am holding in my hand blackberry. Every Single Person who works on varney and company has a blackberry. Every person that works from home on a blackberry, all of us do. We are all in the loop constantly and we have no choice. Thank you very much for joining us. It was a good debate and stirred up a lot of fire here, thanks very much. The mainstream medias long honeymoon with president obama i think is coming to an end. The tide, i think, is turning. The country is beginning to see the light. My take on that is next. Can your hearing aid do this . Lyric can. Lyric can. Lyric can. Lyric by phonak is the worlds only 24 7, 100 invisible hearing device. Its tiny. But lyrics not just about what you cat see. Its about what it can do. Lyric can be worn 24 7 for up to four months, without battery changes. Incredibly easy to live with, lyric can be worn showering, sleeping and exercising. In fact, you might forget its there at all. Call for a riskfree trial. And youll see lyric can also give you exceptionally clear, natural sound in quiet and noisy environments because of how it work with your earown anatomy. testimonial section testimonial section testimonial section testimonial section testimonial section did you know, 94 of people who use lyric would recommend lyric to a friend or loved one. Can your hearing aid do all this . Lyric can. To learn more about lyrics advanced technology, call or visit trylyric. Com for a riskfree 30day trial offer. Youll also get a free informational dvd and brochure. Why wait . Hear today what a little lyric can do for you. Get the hearing aid that can. Lyric from phonak. Lyrican. Stuart the do nothing meeting in the white house between the four leaders of the congress and the president has begun. The dow jones average is down 45 points the old and above 14,000. I think it is time to make some money. Here is Charles Payne. He is revisiting a stock pick that will be joy global. How was doing . Before doing pretty good. It is actually down 1 from one i mentioned it but the earnings this week the stock picks. The upside. I love what they have to say. You can see they sell Mining Equipment. China, india, huge markets, america coming back online, the Mining Equipment looked good. Im more excited about the stock then i was last week. Stuart you still like even though it is down from where you recommended it last week. Honest man, i will say that. You also had chicago, bridge and iron. You recommended that about a week ago. Stuart phenomenal numbers, the stock hit a 52 week high. Same sort of thing, international play, big contract around the world, mozambique, denmark, the north sea, allaround world, the stock im telling you again. Stuart 26 billion worth of orders on the books, that was the number you mentioned the. Charles they may have more than that. They have 7 billion in backlog but the percentage the going up and keep coming from all over the world. Stuart july not bad for chicago. Charles they agreed earnings reports and no reason to sell the stocks. I have a bonafide loser coming up. Stuart later in this have you . Oh deer. The Startup Company outbox will go to your mailbox, retrieve your physical mail, open it, scan it into a computer and email you the results for 5 a month. That sounds like a lot of work for very little pay and a gross intrusion into my mail privacy but the cofounder of the company will join us on varney and company at 10 45. The tide is turning. The president s armageddon argument rings hollow. We are not buying the demand for more taxes and the media adoration of the Obama Presidency is fading. Those are the three areas where i believe you can clearly see a shift. Here is my take. It is friday, march 1st and here come miniscule cuts in future spending increases. It is clear, is it not, that the president has vastly exaggerated the consequences. The sky will not fall. I say the tide is turning because we the people now believe that we can and should get a grip on our out of control that. Look at taxes. The president keeps hitting the tired old theme of tax the rich. They can pay for all the goodies. Wrongly increasingly we know it. Why is the economy in such dire shape . Because taxes went up. Isnt it obvious that if you raise taxes some more you will hurt everyone all over again . Finally, the media, the tide is turning even there. When one of their own was threatened, bob woodward, by the white house, that did it. If you listen to the obliques and i do you start to hear complaints about lack of access to the president. Of course dennis use crowd, the dennis use, those people of this world, they will always be in a tank but the Washington Post has no less than 3 articles critical of the present, debt and critical of him, and was shocked. Cheer up, you can start watching the news again. You might see some critical analysis and maybe, just maybe freedom, liberty, growth and america of the way ought to be will come roaring back. 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. You know it can be hard to lbreathe, and how that feels. E, copd includes chronic bronchitis and emphysema. Spiriva helps control my copd symptoms by keeping my airways open for 24 hours. Plus, it reduces copd flareups. Spiriva is the only oncedaily inhaled copd maintenance treatment that does both. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd spiriva helps me breathe better. blowing sou ask your doctor about spiriva. Stuart may be colorado pot smokers said their budget a bit too early. State regulators are now deciding attacks legal marijuana. The most popular idea is a 15 excise tax. Other options include a special new Marijuana Tax or an additional sales tax. Colorado voters chose to funnel funds from taxing pot to School Construction and drug education. We are talking about it all the time, the dollar tree economy. People spending less, trying to save more. Our next guest is the chief executive of a coupon company. He says, there index Shows Consumers are putting coupons at the same rate, vigorously, as they did just before the recession in 2007. The ceo and he is with us now. Air not quite sure of detectives as an economic indicator. People are really clipping coupons looking for deals, looking for discounts, and theyre doing it vigorously at a record rate almost, that implies to me that this economy is not doing too well. Whats your view . That is exactly right, and it is not so much that theyre taking it at a vigorous rate. It is the rate of change that were seeing in the behavior of the consumer. So just before the recession had come before we all knew their is a recession any of the in the 2007, we saw consumers grabbing coupons the first time this of them and then an increased level of redemption of those bonds, meaning that consumers are taking action because there was a discount, because there was a promotion, theyre trying irans, loading up on products from their pantry with egg and discount. And then that stabilized for the past several years, again, as an index. Right at the beginning of this year in spite of rural it spiked out of control. Stuart so what do i do . A log on a new supply me with coupons the likened the penticton of the store, simple as that . Said his attack the right. You dont have to log on. You can actually find us on tens of thousands of web sites around the internet. Coupon. Com is our main site car flagships site. About half the consumers we see compromise sets all over the west. Stuart give me some indication of what can a product on which to offer a coupon that is doing particularly well. At times like best, the things that do really well our products that people purchase with frequency, pasta, cheese, diapers if youre in the baby category. Totally in the Economic Times the economic tough times personal care, health care, things that make as your governor cells do very well. Im not sure it is a complete apples and apples comparison, but groupon isnt the news a lot this week. Apparently their Business Model is not working. Is that a viable option . Is in sight people are still pumping him from the newspapers of the supermarket. Actually, the similarities stop of the name. Groupon is something you sell to a consumer. A coupon from coupon. Com is given away for free. We do not charge for them. Actually, over the past five years the rate of use of the coupons delivered in the sunday newspaper has really decreased considerably along with newspaper circulations. And our growth as a business is on the order of 40 , based business yearoveryear. Stuart i want to know how you make your money. The you give money from a company that is assuring the coupon, server, groupon is issued you get a small piece of it, or do you make money when the consumer uses the coupon to get a little bit of that action . How you make your money . We get paid primarily when consumers print the coupon or load it to their loyalty card or put it on there mobile phone, for example. That is when we get paid. Then there is a subsequent reaction that will unite to pay for. Stuart okay. Your latest numbers. That your earnings and the rest of it. A lot of the number of coupons. What kind of numbers do you have . In any month how many coupons are downloaded through coupon. Com . Oh, you know, we have never released that it we never released that. Stuart you have to give us a hint. Millions, tens of millions, under the thousands of images ballpark. Its over a hundred million. Stuart a month . Over a hundred million a month. Yes. Stuart that is a lot. Even if you just get the title piece of each one, thats a lot of money. We appreciate you being with us. Thank you very much. Very interesting story. Thank you. Thank you. Stuart how is this for a deal, for five bucks a month the company will go to your mailbox, get your mail, opens it must gain the to a computer, and email it back to you. That is an incredible deal when you think about it. Daughter of kiddy possibly get physical person to go to someones house. How can you do that for five bucks a month. I dont understand. The cofounder is next. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Out for drinks, eats. I have very well fitting dentures. I like to eat a lot of fruits. Love them all. The seal i get with the super poligrip free keeps the seeds from getting up underneath. Even wellfitting dentures let in food particles. Super poligrip is zinc free. With just a few dabs, its clinically proven to seal out more food particles so youre more comfortable and confident while you eat. A lot of things going on in my life and the last thing i want to be thinking about is my dentures. [ charlie ] try zinc free super poligrip. Stuart i wonder if this is the start of a trend. Gas prices dropped more than a penny overnight. The National Average for a gallon of regular is at 3. 77. Todays narrow as gone down. I say it might be a trend because look at this, the price of oil way, way down, looking at 90 a barrel. That keeps up, gas will come down. Ford releasing february Sales Numbers this morning up 9 yearoveryear. Not as yet as expected, but it was the best of your numbers in six years. Stock up 0. 6. Gms sales of 7 percent yearoveryear. The stock is up 0. 22. Toyota motors, over 4 sales gain, and that is 102 stock. A very, very slightly up. Groupon founder and chief fired yesterday. He said, decided that i would like to spend more time with my family. Just kidding. Evans fired. The stock is on the bouncing back a fraction. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Stuart time for making money with charles. Now were revisiting a stock. If i think this was a bomb. So far is bombing. No doubt. We added around 29, lets call it 33 delayed taking a big hit, down 10 . This is pat and control. Stuart pack of lawyers. Back of lawyers. Early the above samsungs. These epic battles. They lost a lawsuit in japan. Listen, they have this amazing portfolio. The stock is extraordinarily in the value, but theres one thing that i think i did mention, it can be extraordinarily volatile all the tile. Stuart monica, he is. These human. Stuart with a lot of shows you get a guy on his says of the stock. It bombs, and you never year another word about it. On this show we tell them, and he justifies it. Trying to do this job is more humiliating humanizing. Youre going to have losers. Stuart yes, you are. If youre brave enough that get out there and sit by this present think it is a winner, you are brave men in the because sometimes. So honest, charles. Incredible. We told yesterday that a Startup Company called outbox will come to your house three days per week, bigger mayo, open it, state, and email it back to you. That is 5 a month. Joining us now is outbox cofounder, we will david. Its great to have you with us. We have a couple of issues here. Number one, under what circumstances would i or anybody else want my mail privacy totally invaded by your guy or gal coming to my mailbox, opening of the male, reading it, skinny, the whole ball of wax. Mollet ever want anybody to do that. First, thank you for having me on. This. And first, we call them the unposed and. Its of fun crew that is more skilled and trained in goes through higher background checks than postal employes. Its privacy. An intimate is. The bat like this. Actually safer than your mailbox. So not many people shred, recycle, and in securely store in the cloud of their postal mail. We do that all for you for just 5 per month. Really what we do for the first time is get this incredible amount of control over this postal mail you never had. You can search for a, you can do in a timely warning device. What are really doing is building up postal work. Stuart you are actually selling the information you collect. If youre going to people. No. We do not sell any information. If. Stuart if you go to my mailbox open my mail and scanner all, you know which kind of companies are communicating with me. You know what kind of product some buying. You know a little bit about my finances. Now, thats information. You can keep getting personal. You can keep an absolute private, but it is information. A retelling you also any information at all never, will not ever . We have never sold any of permission. Now, we do have a great understanding of what we call the mailgram. The government psychosocial graf von facebook. Really, that is part of what were building which is an understanding of what people want and dont want. And right now, stuart, you have no control over who sends a postal mail. Theres a do not call liz, do not spam list. There is no do not mail list. Is because there is this really strange incentive to send you more and more stuff they dont necessarily want. And so we do for the first time is, for instance, let you and subscribe from general. You can redirects mail to werner you are. You can email it to my share to your accountant or spouse. Stuart im listening. Youre making a good case, overcoming some of my skepticism. Will davis. Incredible. Outbox. Thank you very much. Come back again. Absolutely. Stuart would you have your males cant . My question is, how is it possible for this company to turn a profit . Five bucks a month seems very laborintensive. They literally send somebody to your house three times a week. Stuart as the question of want to ask and iran have time. Invective and at a time. The lightning round is next. [ male announcer ] how could switchgrass in argentina, change engineerg 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 one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. 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 im watching the tape. Yes who hit a new high. Why . Reporter check it out. Eupepsia who had not a 52 week high. Is the highest since back in 2008, maybe its because the workers will be a home anymore. Up 4 . We check and the analyst. Its interesting because about 70 percent of the analysts actually have a hold rating on yahoo. Its not as many buys. Only about 26 percent have buy ratings. It certainly has run up. And something we will continue to watch. A great day for yahoo. Stuart 22 per share. Lets make some more money. Charles, a hallmark assignment. I have of work assignment for the viewers. Stuart their will love that. The Company Called charred industries. This symbol is gt less. Liquid natural gas. It reported yesterday. This is a phenomenal company. It turned up the presentation and a one everyone to look at it for january 29th. Bottom line, another global player. But this liquid natural gas thing is going to be absolutely phenomenal. Really is. Stuart to the liquefied . They do it all. There are four parts of the chain. Liquefy, distribute, store, the feeling stations, they do it all. As for their growing the most common in china. People picking plants and theyre running with it. China is ahead of the curve. The bottom line, these guys are going to do well. More people to read and learn about this. A little bit of homework. Stuart all right. Give me all work on a weekend. Lightning round. First up, attorneygeneral eric holder and other Administration Officials are using corporate jets, monica. 11 million of the last couple of years to use to gulfstream five jets that previous administrations had argued, and this goes back to the bush years. Lets be fair. They argue for to gulfstream, five corporate jets for counterterrorism purposes. Now we find out that it is not just eric holder, but in the Bush Administration some republican, fbi, justice officials use these planes for personal business meetings. 16 trillion in the national debt. We have to get this out. Stuart with so we won the tax credits. Sacrifice. Stuart california raising the gas tax 10 percent of three and a half cents. To make up the shortfall because everybody is buying hybrids and electric cars. That state. Thats false. Theyre selling a couple of them. This is just another to cut people out there, they think its only going to be the ridge. Put down your towards. Its going to be you. Youre going to take until yourself. California, you brought this on yourself. With checketts said bills are for you, what i dont. With the record the. Stuart home market now its fashion. Finally, alex rodriguez, his foundation reportedly gave 1 of its proceeds to charity during its first year of operation. He wants that . Shame on him. A big sports celebrity. A wellknown guy puts his name a charity and a sorry, any celebrity puts is a monetary your hard immaturity ought to be paying close attention to how the money is being taken in and out is being distributed. This is a disgrace. This is an epidemic. I mean, were going to see i see stories. This happens all the time. Probably a lot worse. They hardly give out any money, and the taken millions every year. Stuart the highlight reel this friday morning is next. [ kitt ] you know whats impressive . 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 nt have something important to say . You are gonna need a wingman. And my cash back keeps the party going. But my Airline Miles take it worldwide. [ male announcer ] it shouldnt be this hard. With creditcards. Com, its easy to search hundreds of cards and apply online. Creditcards. Com. Stuart here is, this weeks highlight reel. Rolla please. Texts from my wife. Listen to this, please. Timber peak. That horrible thing that we sent back. [laughter] that get hammered last year. You still want to recommend it . You should be. Stuart that you share index our office. And i hear you all the time. Li