Transcripts For FBC Varney Company 20130624

remember, when gleeman happened in september 2008, took 94 years to get the balance sheet to 900 billion. today it's 3.5 trillion amount. bernanke has been flooding the system with money-- >> stop, okay. >> no, no, what i'm saying, it's caused massive inflation of financial assets, distortions chasing for yield everywhere into risky asset markets around the world and real estate, junk bonds, you name it. none of this was sustainable. >> i think that time is up, exactly. >> it's now, now is the-- >> it's inevitable that this massive bubble that's been inflated for five years of panic, monetary expansion and money printing will unwind, and it's going to take everything down with it over a period of time. >> this is all your fault. >> you come on the program and say everything is going down. there's another element in the news today, china. >> right. stuart: the banks are shaky and thh central bank says we're not going to print a ton of money to bail you out, what do you make of that? they've been printing a ton of money just like the central banks of the world. this isn't uniquely a fed problem. all the banks of the world have been expanding balance sheets. if you go back and look, in 2000, all the central banks have 1 trillion, balance sheet combined and today it's 15 trillion and all of them have been printing money at the fantastic rate and we've created bubbles all over the world. and china is the bubble, and even the leadership is recogn e recognizing that and they're trying to rein it in just as the bernanke fed finally realized it had to do last week. i think this is a global adjustment. look it in japan. you know, the great money printing spree they were going to have is already, you know, hitting the rocks in many ways. stuart: this is a doom and gloom, david. >> it's not necessarily doom and gloom, it's a-- >> but it's all markets down. gold down, stocks way down all over the world. >> right. >> and by the way, the yield on the 10-year treasury, 2.63%, i know it's not a high, but-- >> last fall 1.45, okay, a 50% increase or more than that 66% increase in a few months and that's not a sign of a healthy market system. that's a sign of a market that's part after casino that's been entirely dominated, fueled, manipulated by the federal reserve and the other banks of the world. it isn't sustainable. sooner or later, the central banks lose control of the markets and then you have chaotic adjustment, you have yo-yo markets and you wake up and find that, you know, the stock market in china is down 5% evernight or japan in down 10-- 9% overnight. >> what we like on this program is clarity. >> yeah. >> and you're very clear on what you've been saying. >> right. >> there's a gigantic bubble because of the money printing, 15 trillion dollars all over the world and now the chickens come home roest. >> and i call it central bank monetary central planning and somehow, notwithstanding all of the bubbles that have collapsed in the last 15 years, dot-com, housing, the wall street, the lehman bubble, now this one, somehow they continue to believe that their central bankers have their back, know what they're doing and will make it all better. sooner or later, investigators are going to find out that was totally an illusion. it was a complete myth. they're on their own and it's a dangerous world. stuart: david stockman, why don't you stay right there, we're going to get that market opened up and bring you back for a commentary right after we start. we're going to be down about 100 or 120 points, by the way. if you watch the mainstream media, the irs scandal, it's virtually fallen off the radar, virtually disappeared even after it was revealed the irs is about to pay 70 million dollars bonuses to irs employees. senator chuck grassley is making sure the scandal does not go away. he's with us in a few minutes from now. let me update another story that's moving today. former president and anti-apartheid leader nelson mandela is in the hospital after a lung infection. doctors are doing everything possible to ensure his well-being and comfort. nelson mandela is 94. it's monday. a brand new start. your chance to rise and shine. with centurylink as yourur trusted technology partner, you can do just that. wiwith our visionary ourur trucloud infrastructure,er, global broadband network and custom communications solutions, your busins is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. everybody s different ideas,oalsappetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we'rell totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪ some like it hot and some when the heat is on ♪ >> some like it hot. yeah, president obama does not like it hot. so, he's going to announce global warming, that will be climate change measures tomorrow and may bypass congress to do it. we're talking about that throughout the program and including chuck grassley a couple of minutes from now. let's get back to money and tres knippa is here and you say no way that ben is going to quit printing and now look what's happened. >> and the markets are shaken. and let's get something straight, i'm also the person that said i'm not interested in being long equities and said that bond markets all over the world are still miles too high. but let's remember exactly what ben bernanke said. ben bernanke said he will taper and back off the buying if he sees economic growth reach the thresholds. i do not see the growth story here, where is all of this economic growth. we're still lagging behind. so if that's the case, simple logic, if you don't reach the growth estimate he's not going to back off. stuart: we hear you, and we're down. the stock market this monday is opening, if you're hoping for a bounceback, you're not sseing it. and it's down 30 odd points. s&p 500, 1585, i believe, and the dow headed lower. corporate news, first off microsoft and oracle, the two of them expected to announce a major new partnership today. with cloud computing. and reports say that microsoft will be using oracle's new 12 c data base. look at the stock of the company companies, microsoft is down and oracle recovering after a drop. and there's speculation that microsoft is going to announce a restructuring next week and that's not helping the stock in the early going. i've got a sea of red amongst the s&p 500. more trouble for boeing's dreamliner. another emergency landing. the third problem in a week. any impact on boeing other than the overall down side market move? >> we're seeing it moving just about over 1/2 of 1% and this was a flight from houston to denver and had to return to hussein on sunday because of brake issues and it wasn't, they say, the procedure to do this emergency landing, but it just tacked on to what we saw last week where they had an emergency landing in seattle. >> they're under 100 boeing as of right now. let me wrap up the markets and we've been open for about two minutes this monday morning, a sharp drop for the joudow jones industrial average again. and we're down 108 now, 14, 690. down 117. we're still falling this monday morning. as for the price of gold. a big drop last week, moderating this morning, five bucks lower at 1286. here is the big story apart from the stocks that is, that's interest rates. >> up again, the 10-year treasury yields 2.63% and that means that mortgage rates are headed back towards, i think, about 4 1/2% relatively quickly. and megan is with us. where is the dow going? i don't necessarily need a number. that's foolish, but straight down from hhre? >> no, look at the s&p 500, right now, it's exactly where it was on october 9, 2007. 1575 thereabouts. the same point that it was at almost in march 2000. does that suggest we're going nowhere over time that we have a serial bubble machine at the central bank that it inflates the financial markets to the point they aren't sustainable. undermine the economy and we dig out again? that's exactly where i think we are. the great recession was caused by the collapse of the housing public, the credit public, the wall street bubble. bernanke has done the same thing, the economy is barely, timidly bumping along and we will have another crash of the -- collapse of the bubble which will ricochet out. why are-- >> that's your analysis. what do i buy. if i want to protect myself what asset. >> get out of harm's way, like i said last time, sell what you have because the only thing that's safe in the near term as this adjustment rolls through the system and it's worldwide and all classes of financial assets, as it rolls through that system the only thing that's safe is cash, unfortunately. stuart: and straight-- >> you earn little but it will be-- >> money market-- >> and your capital will be preserved and that's the only thing you can do when you have rogue central banks run by academic zealots who do not understand the forces that they have unleashed. stuart: your vigorous denunciation of the federal reserve and ben bernanke. >> we should, it's not real. stuart: david stockman, thank you for being with us on a very important morning. thank you. call it the learner law. alabama republican brooks wants any federal employee who refuses to answer questions underneath to congress to be fired. congressman brooks introduced this due to lois lerner, the irs employee who pleaded the fifth. and the 70 million dollars in bonuses is set to be handed out to irs employees. and joining us the senator who brought it first to light, senator grassley of iowa. senator, i believe you're going to bring it back to the front burner, 70 million in bonuses. how are you going to do that? >> i shouldn't have to. when the management and budget, white house office working for the president of the united states and he's the chief executive says during sequestration we shouldn't gave bonuses. they say they're obligated to do it under union negotiations, if they're legally negotiations to do it why are they back table negotiating it. i think the president is is a chief executive or isn't he and pay the bonuses. >> do you have any power in the senate to do that, stop it? >> probably not between now and the time the checks would actually be written. but we could surely, on appropriation bill or any other piece of legislation comes up, we could offer amendments that would say that we're not going to pay any bonuses in the future. and of course, this administration, you know, wants to do away with sequestration and it was their own idea and so i don't know exactly whether that would be an issue next year like it is this year. >> senator, would you stay with us, 30 seconds longer? i've got to break away for some breaking news for the supreme court. peter barnes you've got news from the supreme court. mass the obama team taken a hit with the ruling you just got? >> not really, stuart, because actually, the obama team wanted the supreme court to hear this case as did the perfect. this is a case about the president's recent appointments of several members of the national labor relations board and whether or not they're legal, and whether or not they're constitutional. the court has agreed today, and it's first series of orders this morning, to hear that case, likely next fall. stuart, back to you. >> next fall. so everything is on hold until next fall, that's a win for the obama team on labor board appointees, peter, thank you very much indeed. back to senator grassley. we appreciate this. tomorrow, the president announces the way he wants to cut carbon dioxide emissions and likely putting restrictions on american power plants, what's your comment? >> 50 to 60% of the people in this country think we ought to be-- congress and the president ought to be concentrating on jobs and turning this economy around and if he's going to move in the direction he's moving in, he's going to put a damper on that and i think the best thing for the president to do would be to worry about the economy because if we can get a strong economy, that's the way to have the resources to do something about global warming. but if you're going to do something about global warming you've got to realize that the united states already is putting less co 2 into the air than they did in 1993 and there's few countries around the world that can say that they have that good of a job. so i think we ought to concentrate on our successes aad turning the economy around. when you get the economy turned around and worry about things that might put a damper on the economy for sure. if we do it without an international agreement it's going to hurt had your economy and india and indonesia and brazil. we need an international agreement so we have a level playing field with the other economy. they're putting more co 2 in the air than we are. stuart: thank you for joining us on a busy day, senator, appreciate it. >> thank you. stuart: look at the big board for a second because we are down sharply and we knew this was going to happen and there were the indicators before it happened. and 14-6 is where we are now. to nicole, facebook exposing 6 million user phone numbers and e-mail addresses by mistake? what's the story? . nicole: so frustrating, the kno stock is down 3 1/2%. and disclosed on friday and say the issue is resolved. and some facebook members may have seen e-mail addresses and phone numbers. stuart: yeah, down another 3%. 23 on facebook. all right. and part of a big selloff, too. now we're down 165 on the dow. gold down a little. interest rates up. that's how we stand this monday morning after 10 minutes worth of business and we're on this all through the day. the younger generation is increasingly pessimistic about the future of our country. the best days behind us, they say, well, has america fundamentally changed with president obama in the white house? we're going to deal with that next. ♪ ♪ get over it, get over it ♪ (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick tradbar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottra. 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[ applause ] biotene -- for people who suffer from dry mouth. >> if you tuned in this morning looking for a rebound, bad news, it's not happening. china bank is in trouble and ben still showing no signs of want to go print more money, that's a negative. and the president decides on climate change rules tomorrow which may raise the cost of electricity, not good for the market and we're down 160. the price of oil coming down more, $93 a barrel as of now and please, everybody, look at this number and this is a shock. 56% of us believe that the next generation will have a lower standard of living than we do today. and joining us the editor and chief of real reagan conservative. are you blaming president obama for this? >> yeah, you know, i absolutely am and now what, stuart, it's a very sad state of america when this generation doesn't forsee the next generation haviig a higher standard of living. this is not america, stuart. america is the country who put a man on the moon, overcame the great depression and conquered the great frontier, what it says to me, we've lost the american ethos, the thing that makes america, america. stuart: i'm with you, i am absolutely with you. >> yeah. stuart: could it be that you, although you're young, could it be that you are out of touch with a majority of your peers? because they appear to be far more interested in social issues as he opposed to jobs, taxes, prosperity and the economy? >> stuart, you're spot on. when you're in the the confines of a college classroom, your main concerns are abortion, gay marriage, the social issues. quickly when you enter the job market and find there are no jobs there for you, 7.6% unemployment, your perspective quickly changes and i think my generation is waking up as they grow and realizing that, you know, we're in a very tough predicament, unless we implement conservative free market principles we're not going to gettout of it. stuart: what kind of a reception do you get when you go to a college campus or gathering of young people and make your case for free markets, economy, dynamism, growth, reagan economics.com? >> what are you going to do about this? >> we need to change, we need to wake up and realize that we have to-- high taxes that's not going to work. stuart: what are you going to do about it? >> i'm going to tell my generation as loudly as i can, we need to wake up and become the america we used to be, the america honestly we need a mitt romney now a president who understands free market economics and you know, i'll pronounce my message as loudly as i can, it's up to my generation to wake up and change this, otherwise we're in for-- >> give me a name for a politician you'd like to see win in 2016. >> jeb bush, marco rubio, these men know and understand how to make this country the country we once were. stuart: thanks for joining us, we appreciate it. >> thanks very much, stuart. stuart: we are in the middle of a down side move for the stock market. we're off 150 points there. what happens when the dow goes down 150? to the price of gold. well, all markets, all asset classes are generally down and gold is along with them. down six bucks at the moment at 1285. and then we have nik wallenda, grand canyon tightrope walker, hope you saw this. it was dynamite stuff. carrying on the family tradition, i say it's an american tradition. and of this guy is an american. that's my take next. ♪ ♪ can you take me higher ♪ attention - americans living with limited mobility. what do you do when you can no longer get around like you used to? when you fear losing your independence? who do you call? call hoveround now, to see if you qualify for america's premier power chair. hi, i'm tom kruse, inventor and founder of hoveround. now you can do more, see more, enjoy life more. here's why hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. and most importantly, 9 out of 10 people got their hoveround for little or no cost. call now for your free dvd and information kit. and now every hoveround comes with this tote bag and cup holder for handy access to your favorite items. you don't really have to give up living because you don't have your legs. call now for your free consultation. and right now, get this limited edition hoveround america travel mug free with your hoveround delivery. call or log onto hoveround.com right now! >> the president addresses climate change tomorrow. he may go around congress. he's going to target coal fired power plants and grover norquist is with us in a few minutes. it sounds like a carbon tax. 40% of small businesses say they've frozen higher because of obamacare and one business owner tells about the impact on her company. can you believe that animated monsters beat the zombies "world war z" at the box office? we're talking about that new at 10. and here is my take on the grand canyon tightrope walker. young wallenda carried on the family daredevil tradition. well, he did far more than that. he seemed so american, didn't he? let me explain. last week we were treated to the sorry spectacle of european pagans dancing around dawn on the summer solstice, mired in debt and deep in recession, and divided and failing, europe has drifted a long way from the judeo christian moorings, they're becoming a joke. and last night we saw the very american nik wallenda on a type rope across the grand canyon no safety net. i saw a european commentator incredulous and she thought he was crazy and nonplussed with individual action. risk, faith, big reward. no amount of government interference to take this out of this. and just think, while the left whines about the social safety net, nik wallenda crossed the grand canyon. that's america. >> announcer: you never know when, but thieves can steal your intity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge caraccount with us. >> you jt read my mind. >> announcer: just one littl piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly prott what matters most... 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[ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. civic this second hour of hardy and company remember there is a notice our today. affirmative action, voting rights than same-sex marriage the supreme court rules on all three this week the judge previews. the president will cut carbon emissions of power players. is it a new tax? for out of 10 small businesses prosing -- freezing hiring because of obamacare will let small business feat for itself. zombies and monsters and dominate the theaters and here we go. the dow was down to medusa 17 our number two is coming up. of after a half-hour with the business some people hoped for a rebound but it is not happening stocks and gold are lower. the low of the day down to the debate team points at 41551 negative david yasmin is with us for the next two hours did you handle it? you think the stock market will keep going down from here? civic there is a problem with liquidity. there is a lack of it and the markets are correlated as one sells off the other cells off a and we can continue on everybody is pulling back. stuart: you mean that nobody in the market? >> it is not that you said the money that was is now going to the sidelines everyone is concerned let's not by here it is completely sitting on itself. stuart: china has a problem with their bank the central bank has a problem. by the way they make our problems in 2008 looks like kindergarten. they have a shadow baking industry that is spending money on everything. we have seen block after block of construction sites with nobody in them they had a lot of money they were passing out. >> the central bank says we will not bail you out you are in trouble because of what you are doing. we will not bail you out. >> it is interesting situation to have the opposite of the united states and europe where instead of coming out with the easy money to solve problems, it looks like the chinese government will handcuff but how long? >> what is the bigger factor look at the market down 234 points. is it china border ben bernanke boards of liquidity? >> they are related as we pull back we look over here or there but it is very negative. the fed started it the genie is out of the bottle so the most affected it has now evaporated. >> just a few minutes ago the whole world especially china is a bubble created by central bank's printing rennie that has now burst. >> i love david stockton idea of hanging tough to not print stuff that does not exist. no more artificial generation. but the problem always has been he does not see the ever seen. david's problem is he was a numbers guy. you should be scared as hell but that does that indicate the potential of the u.s. market for all markets if they are released or free or the tax incentives that frankly were not coming from this administration. stuart: now down to reported points nothing to say that china will check-in quietly or ben says i did not say i would quit printing money i might. >> china has he same problem as the fed they cannot walk -- walking back toward the credibility is within the question. they cannot say we made mistakes we will walk back to ease up some more. stuart: in a moment, i will ask you for a you with your aunt tell me where i can make some money in the market aid to have a few minutes to think about it. financial stocks, it very much at the center of the downside move and though worldwide problem. tell me about financial stocks. where are they now? >> a tough market to keep up with. you can see we had accelerated selling in the last two minutes because it is down nearly 1%. now down to do 40 points so to be hit the hardest of what we saw today. stuart: i will put the markets on one side and watched that little blood in it you can keep in touch of where the dow is a and cold than the rest of it. movie aside obama will start the new climate change policy reportedly toots' talk about coal-fired plants in.may use executive orders to go around congress. grover quest is with us and it sounds like the back door carbon tax? >> the president did tell us he would do this when he ran its 2008 and announced that one of his fund-raisers the goal was to drive the coal industry and coal-fired electricity out of business. by raising prices you wanted to do with the upfront tax but he has not been able to sell that so he will have a regulatory cost to bankrupt gliders and put them out of work the rest virginia. he doesn't care. they don't vote for him. western pennsylvania, he doesn't care but he will drive the costs up to create the alternative politicized synergies make him to the democratic party. stuart: maybe i am stretching the point* but the climate speech may have some impact on the market today because the end result of what the president will see is higher electricity prices progress some point* the juice goes up and i don't think investors like that. >> is exactly. if he was to introduce an energy tech they could say that will not happen but he is announcing executive order that could take a long time in the court to undo any of that and the democratic senate will tear quietly as he destroys the coal industry to drive up the price for the american people so he can do a lot of damage all by himself i think his play runs as follows to the damage deregulation within the industry comes begging for a less destructive tax then you're off to the races to get the energy tax, a btu tax cut and then divorced down the road to the value added tax because the energy say why just as? let's get everybody else they the business community to help them this. stuart: will get the coal stocks you can see if i am telling you they are all down 11% that is a serious drop. before we leave you we always ask questions about taxes. can ask a question about ben bernanke? you blame him to create a bubble elsewhere? >> yes. stuart: that answer was predictable. [laughter] do you approve of him quiting the printing business? >> here is a challenge to create these problems then announced he would do it anymore but the problems a stile side of the gate gets you out of purgatory at all. stuart: a busy day for all of us. and nickel stocks a lot of people said last week that they had hit rock bottom bottom, expected to go down and it could not have come at a worse time these extraordinary losses are top of the fact they were crushed once the four and a revenue was hoping for a turnaround now we have obama tea to it is time for the winners. but nicole has found a winner health care is the biggest winner on the s&p 500. >> the market is taking and the health care is up this is a deal with vanguard. this is a big deal because also this may boost their taxes and area they expect to double performance. there is very little downside according to the insiders. stuart: feat is less than one dozen that is out this morning. added 6%. thank you very much. and to have a lot of time to think about this i want a winner. >> i will stick with a liquidity feat of apple. stuart: that is a shock. >> it is not microsoft. [laughter] stuart: apple is up. >> has been a hit but it has held up at the last two sessions it tells a beautifully in the church looks decent bid we are here and this will we have to consider is the $145 billion of cash they will urge more if the interest rates rise. stuart: i have not thought about that. you are right. >> the $70 billion bond offering will be helpful because under the wonderful accounting rules as it falls from the debts they have issued, it technically they can buy them back at a cheaper price. >> actually it is those that don't have the cash flow those that have the cash reserves that could do well with the hiring interest-rate. >> microsoft could be one of them. [laughter] >> it might be. >> do you own apple? >> no. you could buy yourself? >> yes. stuart: thank you very much. 41 percent of small businesses say they will freeze hiring because here comes obamacare. no one small-business owner says she will not hire hire, expand or do anything because here comes obamacare. would you agree with this statement from former mcdonald's ceo? >> by 2015 you will see the number of a percent to escalate at 20% justin the restaurant industry we keep taking disposable income away to add the cost on to the small business we went out and asked people a simple question: how old ishe oldest person you've known we gave people a sticker and had them show us. we learned a lot of us ha known someone who's lived well into their 90s. and that's a great thing. but en though we're livingonger, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure y have the money you need to enjoy all of these years. ♪ toa brand new start.e years. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. stuart: a sell-off down 220 points let's bring you up-to-date on all the markets where we stand after last week. story is the sell-off continues. gold? down under $3,000 an ounce. roughly $100 in one week. that is a drop. the yield on the 10 year treasury is benchmark interest rate material, is to reduce 61. of the air last week that yield was under 2.four. that does not sound all lot is at 2.2%. >> at these levels of the continued increase it will be over 6% by the end of the year. it could be just a growth spurt that we're talking about fiber 6%. it is highly unlikely but things like this have happened and david stockman says it will be greater than that. >> but would not let it happen. but to have a conviction we have not seen he is not alan greenspan but believes in consensus and wall street does not like what he is doing. 2.6%. stuart: a new poll shows 41 percent of small businesses have frozen hiring because of obamacare and our next guest is a small-business owner and says she will not expand here, miss obamacare. you have been on the show before but you don't have 50 employees so how will obamacare hit you? >> thank you. it affects all small business. obamacare has created an amount -- a large rock of uncertainty. as far as the entrepreneurs are concerned it has diminished living the american dream and growing your business. mine is poised for extreme growth and we have to make every decision because i need to make sure i will not reach that threshold because once i do a whole business will change the whole model will change it. stuart: is it the confusion of the terms or the implementation of obamacare? what has gotten to you? >> there is so many factors obviously all the uncertainty nobody knows what to expect but i do know that the health insurance premiums continue to rise with less or comprehensive plans but i do know i will continue to incur additional cost because of the tracking and that affects businesses whether they have to be employees are not and if i do, i have to raise of the cost on all of my products which in turn, makes me lose my competitive edge in extremely competitive market. it has vast defects in so many ways it is scary. stuart: are you saying categorically if you figure out exactly what is coming at you with obamacare you will either expand your business or hire more people? >> this is what i will tell you i will expand but i will do it without having to hire the amount of people i wish i could. nothing would make me happier to continue tt hire more people to get them into the workforce. i will experience in a different way and be careful >> what do you do? >> there are efficiency ways to do things and people can multitask -- will the task and jacks of all trades they do different era items and have wear 20 hats. but you have to survive you be profitable. it should not have to be this way. i am all about the american dream, a growing your business to be the odd to procure and this is what our country was built upon and it is god -- gone. stuart: if i have a conservative outlook i will see that i would plead obamacare and obama by interposition tinge by your politics? >> i don't want to say that it is because i really try to have an open mind. economically i am conservative but lucky at the whole pitcher to know that not only how it will affect me but the people that i employee. i feel a responsibility to all of them. they help my business grow but unfortunately we are not in a society where success is being rewarded. i feel that times you are being punished and it is so unfortunate. stuart: thank you for joining us. we want to hear your progress and what happens. >> have a great day. stuart: now let's go to peter barnes not only the affirmative-action. >> significantly action the court has reversed the decision for affirmative action in holding that the university of texas affirmative action program to address students is reverse discrimination. abigail fisher applied at the university of texas in 2008 and did not get and -- did not give did in the appeals court upheld the program now the supreme court said no. it was fraud in the decision and has vacated the decision remanding back to the lower courts. so that is a blow for affirmative action and supporters. stuart: a restriction on the use of race from admission to college. seven / one is the overwhelming go. justice stated was recused to be well -- clear abigail was white and said she was discriminated against the policy. stuart: interesting break down. fascinating. we will have more from judge napolitano and also elisha cummings now called the irs best friend in congress? we will deal with that next. everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. isharecore. etf building blocks for your personalized portfio. find out why 9 out of 10 large professional investors choose ishares for their etfs. find out why 9 out of 10 larishares by blackrock.tors call 1-800-ishares for a prospectus, which includes investment objectives, ris, charges and expenses. read and consider it carefully before investing. risk incncludes possib loss of principal. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the smer event, going on n at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. stuart: almost one hour in to the trading session dow jones industrial average of 235 point*. we will follow through 12:00 noon it is a big day and we will follow its. nicole? and builders are down because mortgage rates will go up? >> rise. we had goldman sachs down and -- downgrade to groups three and 4% respectively but the bigger hit is a directly correlated to treasury is with a two-year high it is important to note if the mortgage rates could rise that is not good news for homeowners. stuart: 2.6% on the ted year treasury that is four point* 5 percent mortgage rate that is a lot of. >> the latest sales of existing homes shows more people are buying existing homes rather than build new ones such as another point*. stuart: then the audience goes down. thank you very much nicole. back at two moderate 50 points not quite the low of the day but it is low congressman cummingses' called the best friend of the irs in congress now he says that is a witch hunt and david as man has more. >> basically the irs circles so why give as to claim all of the targeting was done by the small group of folks in cincinnati. allotted the media is going along. when a bureaucracy is hated as much that tries to circle the like and to avoid the mistakes it has made, the media will jump in to say wait this does not arise but now organizations like npr that says it is the artful use, and a'', the procedures rather than malice and that does not jive with the facts. the folks are now saying no, we were getting orders from washington d.c. we have letters from the irs officials from washington d.c., cincinnati with the details this one official from washington, her name is hillary said and to describe in detail $0.3 you did not have a candidate crowley for the lone democratic candidate in your district but intimidating her because she was more for republicans. that is not the job of the irs yet that is what the irs said washington was telling these conservative groups. now for the media to let them off the hook is disgraceful. the media should be the watchdog against government overreaching and this is an example we should come in to help those that are being discriminated against by the official said washington and stuart: you will pick this up and run with it. >> absolutely. they try to bury the i.r.a. story in we will not let them. stuart:. stuart: the supreme court rules on affirmative action that the judge has the full story next. it is big. it is big. ♪ i want to make things more secure. 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[click click, ...] ♪ stuart: to be, this was a shocker. the supreme court just ruled for the plaintiff. the judge is here. you have read the summaries. the white student complained, took it all the way to the supreme court saying it was his race that was a prime factor in him not being accepted. >> my question is, a jury trial on what? it says that there are good reasons for it. the reasons are the diversity of the makeup of the student body. where did they get that from? the last time they looked at this in 2005. stuart: the supreme court did not say today, they did not say, hey, you, university of texas, you cannot do that. >> state officials who want to make decision based on race. stuart: what happens now? it goes to some jury trial? >> yes. the plaintiff will put texas officials on the stand who will admit they made decisions based on race. they will ask, we do not know what. these michigan decisions say that you can make a decision based on race, but only for the next 25 years. stuart: why did the supreme court doc? >> stuart, i am as frustrated as you are. they need guidance. can they make decisions based on race or can they not? >> it was ruled unconstitutional. >> the decision was made in 1865. >> that decision was tampered with. you can use race for the higher good. but only for 25 years. the supreme court is supposed to give guidance as to what the law means. stuart: can be read anything into that? >> no. i pity the trial judge who says what the law is. don't we have a supreme court to decide these things? >> yes, we do. it is final. when it does not give a final decision -- >> by the way, if this was a private institution, would it be an entirely different case? >> if they are truly private, yes, they can. stuart: they punted on obamacare. >> i would not call that a punt on obamacare. they are not getting gratifying answers. before we criticize them wholeheartedly, we have some major cases coming in the next few days. stuart: you will be here to tell us what we need to know. >> yes. i will be wherever and whenever mr. varney wants me. how is your energy level? >> we are not doing too badly. i could use some coffee. thank you, judge. gold down slightly. the dow down 210. that is where we are this monday morning. the zombie of session here in hollywood. why did it "world war z" when at the box office this weekend? ♪ ♪ stuart: let take a look at the big board as the dow continues to spiral downward. it is improving a little bit. more trouble for boeing. another 787 making an emergency landing. shares are down about 3% right now. they spoke shares are down. it exposed 6 million users phone numbers and e-mail address by mistake. twinkies is making a comeback on july 15. it is back, up and running under new ownership. monsters and zombies dominated the box office. which film came up on top bush mark that story is next. ♪ stuart: president obama will outline his plans for cutting emissions from power plants tomorrow. i believe coal stocks are taking it on the chin. nicole: that is right. walter energy, for example, is down 11.5%. arch coal, you check some of these names hitting 52 week lows. the best of the bunch. that is a pretty tough day. stuart: yes, indeed. that is a tough day indeed. the dow was down to 50. it came back a little to a- 180. now we are back to 200. "monsters university". that is the name of the movie. it needs "world war z" at the box office this weekend. it brought in $82 billion. "world war z" came in second. monsters here, zombies there. joining us now -- >> that was perfect. thank you. stuart: and christopher morman. to you first, paul. why are we so fascinated by monsters and zombies? what is going onere? >> i think they are very cinematic. monsters have been a staple for a decade. in this case, they are animated lobsters who are barely friendly and fun. then you have zombies with "world war z" and brad pitt. a very intense movie. as human beings, we love to be scared. the other movie, "monsters university," a very fun way to look at monsters. stuart: monsters, zombies, scare. that is the fashion of the movies. >> i think so. stuart: maybe we would like to see some character development. maybe we would like to see a love story involving real human beings. >> we get to see that in the fall season. summer is more about the bond, over-the-top movies. stuart: professor, why is our society so fascinated by zombies, death, the walking dead, monsters? >> they are a good vehicle for expressing a whole range of ideas. it gives a lots of opportunity for different kinds of interpretations. in particular, i think zombies, if you take the first thing that you notice about a zombie, this is dad. i think it is no coincidence that this particular monster is reaching such heights of popularity. our economy is aging. it has to come in to consideration its own mortality. the zombie, in particular, forces you to consider it. >> this is unreal in the extreme. pure fantasy. someone called it pure nonsense. you read into it more than that. >> yes. there is a lot more going on than people wanting to be scared. for one thing, you are not going into be scared. you are going into a safe environment where you know the fear will not end up hurting you in the and. >> stuart, there is a point here. you can have character development and fantasy at the same time. i am thinking of independence day. we are coming up to july 4. remember "independence day"? it had character development. it had real characters. it's one big at the box office. >> i think that "world war z" actualll does have character development. in the midst of all of this, you know, all the special effects and all of that, at the end of the day, if you do not care about the characters, you will not be committed to the movie or vested in the experience. these movies are a way to work out these inner demons or whatever you want to call them. much like going on the biggest roller coaster in the themepark. you get to have the thrill for a short period of time. as humans, sometimes we need that. stuart: am i just getting old? am i looking at the young generation and wagging my finger? we had real stories, we had real writing, we had real movies back in the day. >> i do not know how much age plays into it. zombies were actually be invention of baby boomer generations. it is my generation that grew up watching these movies. now we will see how the millennial's feel, if they carry on their fascination with zombies going forward. >> i think that it will fizzle. that is just me. >> i do not think you are necessarily getting older. you are getting more sophisticated. in the fall, we get the cinematic fine dining which appeals to more like the and older viewers. i think it is just about having a good story, good characters. if it is a good movie, you will enjoy it. everybody brings their own baggage to every movie. your perception of the movie is built around that. definitely about the big ball busters, the big budgets and that kind of thing. fall is more about the character driven movies. stuart: both of you, thank you very much, indeed. >> thank you. stuart: we have come back a liitle bit. the dow is down 180. [ laughter ] stuart: if you can call that a comeback. we were down 150. the pork spending, outrageous. find out how much of your tax dollars are at risk after this. ♪ friday night, budd you are gonna need a wingman. and my cash ck keeps the party going. but my airline miles take it worldwide. [ male announc ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. and apply online. >> coming up on lou dobbs tonight at 7:00 p.m. eastern, president obama insulted catholics and protestants worldwide. think they should abandon their religious schools. bill donohue with a few soft words for the president tonight at 7:00 p.m. eastern. ♪ >> are you kidding, lou? [ laughter ] >> he does not do soft. stuart: we have to nevada senators. allowing the treasury to add $100 million to promote traffic to particular areas like las vegas. the bill would last indefinitely >> harry reid, the same guy? the former gaming commission of nevada. the bottom line is, promotion of tourism, leave it to the private sector, please. the government is getting into everything. the next thing they will be doing is getting into carnival cruises. the pork is almost less wanted, even though that is absurd. what bothers me more is the idea that the government can do everything that the private sector does as well or better. that is nonsense. stuart: i see it differently. i see money being dolled out to states where the senator voted for this particular pill. >> it is absolutely a payback. would you imagine anything different? >> $100 million a year. >> welcome to heer rereads world. stuart: there is a whole hour addition of "varney & company." back in just a few minutes with a highlight reel for you. ♪ we gave people a sticker and had them show us. we arned a lot of us have known someone who's lived well into their 90s and that's a great thi. t even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ all your imptant legal mters in just minutes. protect youramily... and launch yr dreams. at legalzoom.com we put the law on your side. and launch yr dreams. but i see a world bursting with opportunity,ople nervous. with ideas, with ambition. i'm thinking aut china, brazil, india. the world'd's a big place. i want to be a part of it. ishares international etfs. emerging markets and single countries. find out why nine out of ten rge professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. stuart: yes. we have a highlight reel. >> the economy is barely bumping along. we will have another crash of the collapse of the bubble. stuart: apple is at 401. >> it obviously has been hit. stuart: it is disgraceful. particularly, the media. we are supposed to be the watchdog. >> we need a president who understands free market economics. it is up to my generation to wake up and change this. >> wherever and whenever mr. varney wants me. there is an hour extra of that today. how is your energy level? stuart: good. not doing too badly. i could use some coffee. that was then. this is now. edward snowden is on the run. rivals seem to be helping him out. this is a black eye for america and president obama. steve forbes is here. he may want tax reform. i say it is not going to happen. serena williams versus -- right inside the wimbledon. now, it is the government, are they doing this snooping with your credit card information and are they really going to frack california? here comes a bonus hour of "varney & company." ♪ ♪ stuart: dagen and connell will be back next week. today we start this hour with edward snowden. he failed to show up to a cuban bound flight to moscow this morning. a request the company says it is considering. snowden is healthy and safe and in contact with his legal team. here is the company to take you through this hour. steve forbes, david asman and, of course, we are following this target action for you. the dow down 184 points. what do we have for you? well, we have another hour of "varney & company." first, to steve forbes. he seems to be hitting around in hong kong and moscow. i think america is taking a black eye for this. what do you say? >> i think it shows that they do not have much respect for the president of the united states. they would not do this if they thought there would be real consequences. it is not a pretty picture to see. stuart: we do not have any friends anywhere, do we? that is a total exaggeration, obviously. >> maybe the white house will do a u.s. fan page. maybe that will help get some friends. you sell it at the recent conference where obama went in without any allies and came away with nothing. stuart: okay. >> there is a business analogy here. how many managers have we seen that want to be our friend. president obama has kind of dealt with the world in the same fashion. far too friendly.times you haveh at first and then you can pull back and relax. people came back and slapped him for this open hand policies. stuart: steve, stay right there. let me tell everybody what we have coming up for you this hour. judge note -- judge napolitano will be back. now, to the markets. that is the big story of the day. if you are hoping for any kind of rebound after last week's selloff, it is not happening. ninety-two minutes into the trading session. here is the interesting part about today's activity. we are talking interest rates. they have gone straight up. a week ago, that yield was 2.2%. we are up now at 261. a huge run-up like that in interest rates. explain it for our viewers. >> targets do not wait for little piddly things from the federal reserve. they will market up now. not wait for it. interest rates are the price you pay for money. it is like rent. now we are getting off the drugs. stuart: okay. one other factor here. we have to mention it. china. week flaky thanks. the central bank says we will not bail you out. we will not flood you with money. no. we will make you hold the line. that is a big part of today's selloff. >> it is. they want to smack these banks around for not paying their objectives just like they did in the early 1990s. the question is, are they really in control? >> it all points south for stocks. >> short-term. this is one doctor we do not want treating. >> is the federal reserve now learning a lesson from the markets? is this the market come back? >> the market went down while we were taking away the drug. stuart: janet yellen -- >> that is not the job of the federal reserve. >> much of it is under the idea of bringing in pieces of paper. stuart: you just said something important. if i am investor and i think janet yellen is the next chairman, i think she will print some money. that market will go baak up again. >> what is saving us from that scenario is there is a market -- interest rates are pushing back. >> she may believe the press alerts. it has not had the rapid inflationary effect of the 70s. distorted, but not totally destroyed. stuart: i have a dow stock that is hitting a new low. alcoa. what is going on, no goal? nicole: a four-year low for the aluminum maker. concerns about materials under pressure. $7.80 a share. stuart: thank you very much, nicole. i want to wrap up where we are. coming up, a big drop last week. where are we this morning? stocks down. the price of gold is slightly lower moving well below $1300 an ounce. interest rates are up. that is where we are on the market as of right now. a different subject for you. los angeles times clearly stating the position on fracking. wait for it. "before fracking becomes a major industry in california, the last remaining bill should be passed." slightly doubletalk. the l.a. times says frack. isn't that right, larry? do you doubt them? >> well, maybe you and i read a different editorial. what they said was we are okay with the bill that says from now on if you want to frack, you will have to get permission and tell us what chemicals you are using. stuart: last time you were on the show, you expressed the opinion that ultimately california would go. the gas that was under their territory. >> absolutely. this state is one of those states that looks upon it as a religion. this is a state that can't plastic bags for groceries stores. now you have to pay $0.10 for a paper bag. they have a lot of powers. stuart: this is very important for the entire country. the formerly golden state of california sitting on top of unchartered wealth from natural gas and oil. they will not go and get it. they will not go and get the money which is basically just sitting there. that is why we keep going back to this. the li time says you can frack, but not right now. it is years away. >> will they use science or will they use politics. we do not really know. all of that is sitting in the central valley in california. if only these people would get out of the way. the concerns are possible contamination of underground water. possible contamination of the air. possible contamination of soil in earthquake prone areas. stuart: you are a young guy. do you ever think you will see the day, in your lifetime, where california votes in a general election, vote republican? >> i do not think so. i have a two-step plan. stuart: i know i will hear that this afternoon on your radio show. thank you very much, sir. president obama. "for the sake of our children." bring in steve forbes on this. >> he will do it into the coal industries. he made that very clear from the get go. he does not like coal. he does not like oil. he does not like gas. he still thinks windmills are the wave of the future. >> tax reform. i know you wanted. i know i wanted. it will not ever happen in the next three years, is it. >> if the president wanted it, we would get it. this president takes away the reductions and raises the rates. that is not real tax reform. unfortunately, what he wants in return is so onerous. he will take away the deductions and only have the nominal deductions in the corporate tax rate. i am afraid that maybe sue is right here. a better way is to get a president that believes in tax reform. >> time is flying here on this bone -- bonus hour of "varney & company." words about china's bank send our market tumbling. is anything private anymore? ♪ ♪ stuart: china stocks tumbled this morning. that is because there are worries about some china banks in the central bank said, hey, you guys are on your own. we are not going to give you a ton of money. is this china story a big deal to you guys that are trading today? >> of course, it is a big deal. they have had gdp numbers, positive tempers that, positive 7%. i have never had one dollar invested in china. if they will lie to their own people, i imagine they would like to be, too. you cannot build an economy just by building infrastructure. you build a factory because the factory produces something that makes a profit. that is what an economy is like. i have never had a dollar invested their and i never will. stuart: you say china is a bubble. do you think it is bursting? >> it is certainly acting like it. you cannot do it without legitimate, economic productive growth underneath. they have to succeed some of those assets to privatization. i just do not see it, stuart. stuart: we hear you. the dow is now down 205 points. it came back a little. we were down to 50. we want to keep on with this china story. is it a big factor? is it a big deal to those buying on wall street? steve forbes. >> yes. they are trying to get some sanity back into that economy. they went on a binge in 2008. i think these are people who have caught in the early 90s when they sought reform. the real juice in the chinese economy does not come from enterprises. most of the businesses in the twilight zone. 18% to 100% a year. that is where the real juice comes from. can this new leadership bring the mainstream. >> they are letting rates go up. that is the bottom line. i agree with everything he said, by the way. on the other hand, what they are doing is letting rates go up. they are trying to cut off some of the deals going on. you sit here and you are looking at what china does. is that another reason to sell stocks in america today? >> nothing influences stocks more than interest rate. they are going up. that is why there is a selloff. if china gets its act together, you will have solid growth. can you pull it off? can the federal reserve pull this off? if they do, great for our economy. you have to go through this short-term turbulence. stuart: we have been on the air for two hours. amazing. sell everything. going to cash. that is the way you protect everything. >> he has been selling everything since the 1980s. [ laughter ] >> he does not understand, frankly, the impact of good tax reform. stuart: we are now down 210 points. it is monday morning and now ttis. the consumer financial protection bureau collecting detailed information from your credit card accounts. elizabeth macdonald has the story. >> they are going to build a real-time database collecting your mortgage loan information. the u.s. chamber of commerce sent a letter saying, hey, wait a second you guys. the chamber is representing the big banks. by not doing it by issuing a rule out for comet or an order out for, where the consumer or judge could weigh in on it, they just started collecting the data. your name on not be attached to the information, but other identifying information could be attached. they have to be able to identify the information in order to do the match. the googles of this world have a very detailed picture of you and i and david and steve. now we have the government doing the same thing in detail about our financial lives. do you see that as a threat? >> yes. i do see that as a threat. the data systems are not secure. this could be a invasion of privacy. they report only to the federal reserve. putting them one step away from congressional -- >> there are two risks. the government has this information and could use it against you politically at some point in the future to intimidate you. >> i do not know about that. i hear what you are saying. they could have a very detailed picture of you. >> they do sampling. why do they have to collect 10 million records in their credit card database? stuart: that is a very good story. thank you. apple. they have dropped below $400 a share. the current quote is around 398.50. we are down $14. it is a selloff, ladies and gentlemen. not just an apple, but across the board. you are shaking your head. you don't own apple. >> i do. i do. [ laughter ] stuart: steve, thanks a lot. edward snowden causing a major diplomatic problem. he could be on his way to ecuador. did not get on a plane to cuba. will he ever faced justice? the judge is here next. ♪ ♪ why are you running away local why are you running away ♪ ♪ ♪ [ cows moo ] [ sizzling ] more rain... 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[♪...] order now and get this document shredder, a $29 value, free. protect yourself now with lifelock. ♪ stuart: not quite the low for the day, but certainly down. china banks in trouble. bernanke may not print much more money. down we go across all markets. everything that is up is interest rates. there is a couple of healthcare stocks that are hitting high. nicole: i have something up for you, too, stuart. do not look at humana right now. it did not cooperate. this group is known as a safe haven. we are seeing that despite the fact that the market is down here almost two full percentage points on the s&p 500. these are the only two hitting 52 week highs. >> i am not surprised. not funny. thank you very much, indeed. edward snowden is on the run. he has been charged with espionage by the u.s. government. judge andrew napolitano is here. we may differ in our view of mr. snowden. i say, i think -- look, he has been held up in hong kong for a while. i believe he is in moscow now. you have to believe he is spilling all the technical secrets that he's got to china and russia. he is spilling the beans. he is breaking our laws. i see the man guilty of espionage. you? >> the espionage statute, of 1917, a temporary wartime probation that was supposed to exist only during world war i which makes it a crime to use words that aid and encourage the enemy or a crime to use words that harm the united states and wartime was arguably invalidated by the supreme court and the pentagon papers case when the exonerated the "new york times." that is the first problem the government has with suggesting this as as the notch. espionage that is pure speech is arguably unconstitutional. the second problem the government has is with the government tries to show that it was harmed by what he did, it often has to spill more secrets than it said the defendants billed. stuart: you do not think that he is a spy, do you? >> i think he was a spy on us. he worked for the nsa and spied on us. >> just when the chinese leader kay bear. just when it was in the benefit of the chinese. >> they may learn from other sources. if the government is to be believed, it claims it charged him with violating national secrets. he clearly did that. he clearly gave secret documents that he swore to keep secret. the first, the violating national secrets is an easy one for them to prove. the espionage one is difficult and problematic. >> do you think it will go against "the guardian"? >> they would be crazy to do so. >> some people want to go after the media organizations who publish this stuff. stuart: there is a difference of opinions that stand. we are out of time. >> correct. stuart: all right. >> until tomorrow. stuart: breaking news. the former leader of italy has just been found guilty, i am not sure of the precise charges, abuse of office is what he has been found guilty of. sentenced to seven years in jail and banned from public office for eternity. i wish we had time to open this one up, but we cannot. the dow down nearly 250. we have nick: keeping up with his family tradition of tight rope walking. >> yes, i do crazy. lord, give you the glory out of this. ♪ wwent out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us we learned a lot of us have known someone who's lived well into tir 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is howo you make sure you have the money you need to enjoy all of these years. ♪ >> i have to a admit i did not watch allies but he fired up the country my family told me he was exhilarating, and nerve wracking and a great risk was taken a lot of practice had gone into this in great effort. when i watch a rerun, this to find american character character, action, a faith, a big reward know about of government can take us out. while the last wind about the social safety net, nick cop -- crossed said grand canyon without one for that is america. that was might take in the 10:00 hour. david as minutes with me. you saw the whole thing in that was very nasty about the pagan view from europe. >> how could you be mass -- nasty to these idiots? they put their patients into the face of god risking everything for something that you put your faith in the hands of god. feat not only the aerialist but thick gray pilots of the past lindberg, a millionaire heart they did it because they were willing to risk everything for the sake of a venture a and that led to tremendous a debate -- an innovation. with no type of commercial value but it has the spirit al-qaeda -- tied up. >> imus it to but they are through the roof. >> a college student filed a $2 million lawsuit against the district and they say they stole a photo of her in a swimsuit and they used it during a seminar about the dangers of posting pictures on the internet. it seems the moral is nothing, absolutely nothing is private. once you put it out there it is out there with. >> i don't want to call snowden in india but he was a high-school dropout but yet he had access to all of this autopsy confirmation that is why government needs to be smaller the more it gets his hands and it every bit of information and elizabeth macdonald was talking about access to data they did not have before look at what happened. nothing is secure. >> look at the irs. >> eight feat -- even with his intentions it could at the top level have everything in place for a government that has bad intentions to use this for political purposes. stuart: two hours and 70 minutes into the session and it is a down day big time off to do 30 points and adding to last week's losses and a very important benchmark 2.six 1% in the latest count the price of gold this down a little bit they have the reaction on monday morning. and now share a pope but going after williams' comments of a rape victim. we are next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade ecution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better th you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second tra execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. stuart:. >> gas prices are down slavey the national average is $3.66 and to check the oil prices stare down but not set to a big fall of the market they're down about $0.6 to the price of gold. it is also down with a big downward trend but the further trend is down $8.1283 thousand. seeing the worst month of every year it is down 221. shares of alcoa showed new shares trading of the lowest level since 2009 and right now the shares are down $0.22. the murder trial for george zimmerman began it today and it is expected to last between two and four weeks and wimbledon also. more to come. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shoul't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. stuart: just about the entire trading session down 200 points or more now is off to an 17 points for of a price of oil is down but a $3 a barrel. the yield on the ted year treasury coming we were at to madrid 61 now to officiate. it is a comeback by its about one week or 10 days ago said interest rates have gone up sharply. but oracle partners with the deal on cloud computing? >> it is a big deal. oracle has been beaten down 11% so it is up slightly and you know, larry ellison so trying to forge alliances including the longtime rival microsoft also we may get some news next week for restructuring. why etch both companies closely. stuart: microsoft is to have a restructuring announcement on july 1st. that could help the stock. i do own a some of that. former i italian prime minister burlesque could be found guilty of abuse of office relating to a prostitution case and said in seven years in prison in a barred from public office and he will appeal. derek is nothing financial about this story. >> remember fascism was rampant in europe did 20s and 30s? a combined the government was businesses in the way we have not seen since burlesque cody who used his own private interests in a huge way finally the core system is testing by the standards that they should because they haven't been. berlusconi could distort the political system cover the commercial system and the judicial system because he got this girl out of prison in interfered there now a three judge panel already been decided not only was he guilty of the crime of? with underage girl also obstruction of justice to get her out of prison. i hope it is aside for the future because italy has trouble with the justice. stuart: did is good news indeed but italy remains virtually without a government. >> how many times that happened? >> they are is an classic recession. >> but 40 or 50 percent is underground in the black market. it is the same country. >> do not devalue the lira for the moment. >> back-and-forth between tennis stars williams at&t 12 getting personal over the weekend both taken extra swing off the course. this bring in bryan, give us a quick thumbnail sketch which each side said. of the corps is all -- also in williams said will did love says. you go about business and promotion i am not saying that you get a lot of promotion a viable little jealous but sarid williams comes for to make comments about an incident of america and did in a interview and then sherapova and williams talked about sherapova boyfriend then she said she should stop talking about my a relationship because why doesn't she talk about her boyfriend who is married with kids who he is divorcing for her? that is a summary. cave on -- gave one. stuart: you have a grudge match situation getting into tennis at wimbledon? i am sure that is wonderful for ratings? >> it is fantastic in tennis was like boxing during the '70s it '80s but not so much the gave itself to the personalities now it is of the core. but the athleticism is more effective. i want to care about the people playing. stuart: i just don't want sherapova to grant every time she hits the ball. i don't like that. >> i like them. i am for the granting. stuart: i like to watch but i have the sound off. i would to get your take on hernandez. it seems like the nfl has a problem with zero players. but those who watch football , don't care. >> i think when you talk about somebody dead, it matters. ray lewis was involved for a while and in jail and thought to be directly involved with the murder now he has a huge contract with espn. of the outstanding tight and the later draft pick because of the background. not saying he was involved but there was something happening around him, a body found close to him if he doesn't seem to be cooperating in there's a warrant out for his arrest for he bring the investigation and destruction of property. however kevin by spending three hours there at the school with the three separate visits to his also the weekend, they think experts say there could be to crime scenes. in the house and for the body was found. stuart: real looking at a live shot -- live shot of his house in new jersey's of the investigation continues. has camps started? >> no. now with he went to visit a couple days they said stay away for a while. you have voluntary workouts but the trading has not started but when it does it will be a circus. but this is a team that usually doesn't have distractions. they just go with it now is tom brady without his tight end and wide receiver now the third weapon is mired in a controversy he may have to have the season of his life just to be competitive but it could be big for tim to go. stuart: two quick points the house was a massachusetts and wimbledon with the letter d. do you got that? >> are you reprimanding real live television? stuart: and of live radio? >> it was a pleasure to have you. more varney in company after this. it's monday. a brand new start. ur chance to rise and shine. with centurylinks your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solution your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every daof the week. when you do what i do, iyou think about risk.. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared fothe long haul. ishares minimum volatility etfs. investments designed for a smoother rid find out why 9 out of 10 large professional investo choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, crges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. stuart: the president reveals his policy to reduce carbon emissions it is likely to take an attack on a coal-fired power plants but today they take it on the chin. energy is down 50% in the rest of these% all the way down. that when the president makes his announcement tomorrow he will not jump on board with the energy revolution more natural gas, he will not. >> on the other hand remember how reluctant he has been to hold up the pipeline as tough as he will be the coal plants say it is dirty coal but it is a lot cleaner than they used to be. however i think he will throw a bone to natural gas because he needs money and wants to continue the obama project a big government spending he got a little extra revenue because wall street did so well but that will not continue. he may throw a bone to the national gas industry he may allow for more fracking although some don't want them at all but they could go to natural gas already have a school was so far they hold back but they may hold back more aid and he needs the revenue and sees it coming from natural gas. that might happen. stuart: the one significant policy everywhere the president has reversed course? >> that is a good question. stuart: you think he will reverse his course on natural gas? >> he has allowed the energies are and others to speak out the he himself has been reluctant to do so i think the reason is a lot of money. he needs a tax revenue if he realizes how much could come in we could get trillions of extra dollars over 10 or 20 years and imagine what% the government would take. it could be a boon for federal revenues the and i think that is why he is not willing to throw a natural gas of the bus. stuart: he doesn't care. he wants to spread it around. were also he get that except natural gas? >> we will see about that tomorrow. cheryl cassone is next. here's the question, should we abolish the ira's? i will try in on that after this. >> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little pie of informationnd they can open bus accounts, stealing your credit, your money and ruining your reputation. that's w you need lifelock to relentlessly protect what matters most... 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