Transcripts For FBC Varney Company 20140108

Relax, everyone, the weather is changing gradually. Its warming up and those icebound ships carrying the globals free at last. [applause] our flat rate shippin. Fedex one rate. Really makes my life easier. Maybe a promion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new biness here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Construction jobs, feeling growth in the Jobs Creation in december. Biggest jump of the year actually according to adp. However, however, according to a new poll from the Washington Post, you are not convinced the economys recovering. 79 say we are still in a recession. Ed butowsky joins us now, come on in, ed. You were telling me during the break you think the democrats are going to run this year on the economy . Say it aint so. Well, they are. Theyre specifically going to run on is the idea that somehow the stock market is rising because of the democratic policies and what obama has done. This is laughable, but quite frankly, stuart, its predictable. Because they have nothing to run on in terms of the economy and theyre somehow trying to assign responsibility for the stock market rising to some policy or regulation or rule that obama has put into play. Here is the question, name one thing that this administration has done to help the economy and the stock market. Name one. I dont know one. Stuart well be back to you later, okay . Well be back to you later. Stay right there ive got some other headlines for you. Yeah, time is money, here are other headlines and theyre all about obamacare because of more glitches, lawmakers in the leftleaning state of maryland are considering abandoning the staterun Exchange Just get rid of it and sending residents to the federal exchange instead. Next, turns out big bad walmart offers better and Cheaper Health Insurance than obamacare. And the administration will run a blitz of obamacare ads during the olympics next month. Targeting areas here in america with high rates of uninsured people. Thats your obamacare update. Here is your weather update, yes, still freezing in many parts of the northeast and certainly the midwest. Just look at lake michigan. The wind and snow may have subsided, but its still and the markets will open in minutes. [ male announcer ] what if a Small Company became big business overnit . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the wer to do more. Dell is honed to be part of some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment this magic moment but with less energy, moodiness, and a low sex drive, i had to do something. This magic moment but with less energy, moodiness, i saw my doctor. Rive, a blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can store t levels to norm in aboutwo weeks in most men. Axiron is not for use in women or anyone younger an 18 or men with prostate or bret cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of por increased acneor in women may occur. A report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlaed or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrh, vomiting, and increase in psa. Ask your doctor about axiron. We cant go on with suspicious minds Elvis Presley would have been 79 years old today or as one of our producers put it, he is 79 today. Elvis generates, by the way. 32 million in revenue. How about that . Come on in, police, tres knippa from chicago, adding 238,000 jobs in december, is that a game changer in the employment market . I dont know if its a game changer. Its certainly the right thing that should be happening. Do we want an awful lot more jobs than that . We absolutely do. What do we have to thank for this, stuart . We have gridlock to thank for this. Because of the mid term election in 2010, d. C. Has been at a stand still and guess what . Thats good for the economy and its good for the markets. The u. S. Economy is a job creating machine, if we could just get washington d. C. Out of the way theres no telling what we could accomplish. Stuart youre so predictable tres knippa, i always know youre going to blast congress or d. C. Always true to form, thank you, we appreciate it. Where are we . Weve opened up the market down 25 points, barely holding 165. And microsoft, fords chief alan mull mulally is not changing jobs. Hes not going to do it. Ed butowsky, why is microsoft having a hard time filling the top slot, tell me . I dont know exactly why. Theres a question about are you going to take somebody from the inside of microsoft and the gross strategy in place or somebody from the outside. If they bring someone from outside, the general concensus is theyre going to be a cost saver and looking for efficiencies and not growing the business. Thats why theres a lot of controversy to exactly the direction they want to go with that ceo. Its a great position to be in, but theyre never going to recapture the growth they had when they started that company so a lot of ceos are shying away from it. I know you own the stock, what do you want to see microsoft do, grow the business and try to get back to where it was as a Growth Company or shrink it and be more profitable . Yeah, i dont think theyre ever i think they need to shrink it and grow it differently. Because the tablet business is taking away from the pc business, which is the growth engine. In pc sales grow, thats good for microsoft. There are Software Plays on the new ones. What i like to see, see them shrink it a little bit and bring someone from the outside and quite frankly, the management has become stale and they need something new. Stuart got it. Now look at yahoo stock, please. It was up big yesterday even before new chief marisa mayer spoke at the electronics show. She said that yahoo is a media company, got it. What do you make of the transformed yahoo . I love it. I think shes an absolute star and exactly what i hope microsoft does is kind of reengineer what theyre doing in a lot of cases and they are a media company. You see, you know, shows going there now and advertising thats kind of fallen off because its hard to make advertising dollars. It has worldwide reach. I love yahoo why own yahoo but i wouldnt be surprised if we look at it strongly now. Stuart of course, yahoo has a piece of alibaba and that doesnt hurt now, does it . And twitter, the horse race, its always wildly swinging. Today Cantor Fitzgerald says sell it. Nicole, ive got to bet the stock is down. Nicole i have to say its to the down side. Down 4 , trois it was down 5 earlier. And some of the analysts have been cautious on twitter and its run up fast, a 26 ipo and its pulled back since, but you have susquahanna raising the price target. Most of the analysts say look, its a niche stock and run up fast. Take a break. Stuart take a break, 59 from 26. All right, next one is netflix and youve got the news here, more original programming coming. Whats going on . How about nine new shows. If youre hot on house of cards, season two starts on the love way, february 14th. You can watch that. And what theyve been doing with some of the movies, some expire and relicense and flash dance, top gun, brave heart, those are out, not relicensing those, but bringing in a bunch of new ones, west side story, when youre a jet,youre a jet all the way. Spaceball, grape of wrath, and nine new shows. Stuart we call it chinas amazon, alibaba. It will no longer allow bitcoin use on its site. Liz macdonald is here. The Chinese Government says, i had a, knock it off, get rid of this bitcoin bit. Thats exactly right. The central bank in china says you, Financial Institutions operating in our borders, cannot trade in bitcoin. So, alibaba is following on the heels of what China Central bank is saying. Theyre worried about Money Laundering and this is a hit to bitcoin, the second largest economy, you cannot do any sales in bitcoin. Stuart its a hit to bitcoin, not a hit to alibaba or yahoo who owns a piece of yahoo . Charles i think that alibaba is the biggest Commerce Company in the world. Stuart in the world. Charles it might be ranked up there for that to happen, bitcoin is going to trade in volatile territory. Stuart quick news alert. Latest numbers for shopper track, not good for retailers. 14. 6 during the and mortar holiday season. Liz, thats either the surge in Online Shopping or its weather or both. What is it . Its a surge in Online Shopping which overwhelmed ups in the weeks leading up to christmas. And the Retail Companies, the traffic fell off the map in the brick and Mortar Stores for Retail Companies and youre right, there was a lot more Online Shopping. Stuart we did call that. Charles yes. Stuart we really did call that and said it was the year of Online Shopping and i really believe it was. Ed, before we let you go. Youve always liked utilities. Everybody knows weve got extreme weather right now and much of the country after some time. Does that make you like utility stocks even more . Well, i always like utility stocks because they should play a role in every portfolio because you want to have that income and you want that there and also the potential for growth. Whats hurt utilities recently has been really obamas war on the coal industry because they had to go out and get materials to create that energy and thats why your gas bills and electric bills are up so much. On average theyre up 10 to 12 . Do i like utilities . All day long. Its a rare moment where i dont like utilities. Stuart you just like milking that dividend, dont you . Well, look. Stuart yeah. Everything has a place in a portfolio. I like the dividend and potential for growth and when the markets are going down they tend to go down less so i really like utilities. Yeah, i do. Stuart yeah, you do. Ed, thank you very much. Now, were talking Game Changers on the show today and ive got another one for you. Valve valve. A private Company Public publishes games and could be plugged into your tv. This could give sony and microsoft a run for their money, they make the consoles, the steam box is Something Different altogether. And rush is here with more on this. You better sort me out. Valve is a private as you said and essentially reaching out to the companies that make computers and theyre like, hey, we have our own software and our own operating system. Throw that on these boxes and it will just be designed just for games, you plug that into your tv and suddenly playing the games from a much cheaper console. Stuart its cheaper and i dont need the console, the xbox, playstation 4 or the wii, whatever its called. Right. Stuart dont need any of that. None of the money is going to microsoft because theyre not running on windows theyre running on linux, actually, which is much, much cheaper to produce. Stuart is it a game changer . I think it is. I think this is definitely something that microsoft and sony should be worried about. And they could really be pulling a lot of their audience away. Right now, valve has a game more popular than monday night football. Stuart how do you make in terms of a registered users and how many people are playing, theyre above 10 million registered users for a single game and monday night football, you know, maybe 8 or 9 million per game. Stuart okay. Youre saying, yes, game changer, steam box. They. Stuart potentially has the ability to he think cha change the gaming market. A huge deal. Apple says in 2013, the revenue from the app store were 10 billion. Yeah. Stuart and in december, it was 1 billion. A full billion just in december. Yep. Stuart does that make the app store a game changer . Have we reached that Critical Mass then . I think that apple has been smart. If you look at the computers, the newer computers dont come with disc drives. You cant put a disc in the drive. Theyre forcing people to go to the app store and cant go to another company and buy the software. People are going to the app stores and going to microsoft i mean, apple is getting a percentage of every sale in the App Store Even for software thats not theirs. Theyve been a smart decision in forcing people to the marketplaces theyve created and obviously, its making a ton of money for them. Stuart one or two Game Changers a day. Thank you very much. Check the big board, please, we were down 40, almost 50 points at one stage and now were down 31 points, just around 165. Two headlines for you after the break. Number one, the left hates walmart, but it turns out the Company Offers Better Health plans than obamacare. Well explain that one next. And the socialists in france, theyre at it again. Two goodyear executives freed by police after Union Workers held them hostage. And the tire executive who reduced to do business in france because he says their workers are just plain lazy. Right now were heading further south and the dow industrials after that hour down 40 points. Where is the price of gold today, i tell you. 1220. 50. Were down 9 bucks. Where is the price of oil. 93 a barrel down 15 cents. Constellation brands they make modavi wines and draft beer, different brands. And they are reporting higher profits and a 11 gain, thats a big jump. Micron, a chip maker also hitting a new high up 11 on micron, look at them go. Now this, organized labor and the left have long targeted walmart saying the company doesnt treat the workers fairly. You can bet the lefties dont want to hear this. Walmart offers its workers better and cheaper coverage than obamacare. Liz macdonald, who says they offer better . Washington examiner, they did an analysis with the independent examination of the health underwriters, found that essentially lower deductibles, lower premiums, free screenings, free vaccinations, free Preventive Care at walmart versus better offerings at walmart versus Health Reforms exchanges. Stuart and i want you to comment on this report we had earlier that the democrats are going to run on the economy. Theyre going to say that the stock market rally shows that its a great recovery. What do you make of that . It seems like a Jedi Mind Trick. Theyve been saying its the economy, stupid. We have bad policies and we need better minimum wage policies and unemployment extension of benefits. I tell you something. Nancy pelosi and harry reid run the Congress Since january of 2007 and handing over to john boehner in 2011 and theyve been around since the reagan administration. It feels like a Jedi Mind Trick theyre trying to pull and basically saying they have nothing to do with the poor performance of the economy over the years. Stuart interesting, i wonder how that will play out . I dont know. Yesterday Union Workers at a Goodyear Tire plant in france, prevented two managers from leaving. And a shut down from titan ceo maurice taylor. Mr. Taylor blasted this same factory last year for having lazy workers and poor work habits and mr. Taylor joins us on the phone. Maurice, does this kind of prove your point . Were you right all along . First of all, happy new year, stuart, and same to liz. No, i think theyve been doing this for quite a while. Its kind of funny over there in france where those two men that were kept, as stated, kidnapping over here, i guess they dont have the same rights as some goofball in the union, so are you still trying to take over that plant . Well, what has happened is the minister and i have a secret meeting in august and i told him, you know, the truth. Youve got to turn around and come to some arrangements with cgt and goodyear. Theyre not my employees, not our factory. If you get them straightened out, then, yes. I mean, they have skilled men and women there that know how to make tires and weve had a specialty of turning things around all over the world. So im not afraid of it. Sorry if they kidnap me. Stuart and if they do straighten them out by that, work rules are changed and Staffing Levels are changed. Will you still buy that plant . I believe ive said that we are very interested and its knots something that i would run from. Stuart so these guys are reacting to the possibility that you will take over that plant . I dont think thats the case. I think whats happened over there is that, you know, you you see this in many, many facilities. Youve seen it im from detroit, okay . So ive watched what happened in the automotive. Nobodys ever mentioned when the uaw, they only have the big three and of course, if you take one after the other, no matter how great a manager, they threaten to put you out of business, thats what happened in detroit and didnt change with the bankruptcy, uaw is still there and youre going to have the same thing so many years from now. Stuart yeah, got it. Its the same thing in france, you know . You cant let whack i dont want to say i do say whackos. Stuart youll get yourself in trouble. I know, i know. They get themselves you cant have people that dont understand what in the hell theyre doing. Stuart ive got to break away. We wish you the best of luck with your french endeavor. I appreciate it, stuart. You have a great day, byebye. Stuart look at the big board for a second, everyone, because were headed south and we are now down 87 points and 16,443, know the exactly fell out of bed, but we turned sharply south just the last couple of minutes. Robert gates, yeah, former defense secretary calls out president obamas lack of leadership in afghanistan and iraq and the New York Times tries to bury the story. My take on all of that is next. Shake rattle and roll shake rattle and roll said shake, rattle and roll [ male announcer ] nearly 7 million clients. How did edward jones get so big . T me just put this away. Could you teach our kids that trick . [ male announcer ] by not acting that way. Its how edward jones makes sense of investing. Look at this, monsantos strong profits, stock up 2 , nice gain. J. C. Penney says its happy with holiday sales, investors are not. Its down 6 . Two stories from the world of millenials, 40 of College Grads end up with jobs that dont need a College Degree. And jason mattera, conservative voice of youth joins us for more on that. The story broke yesterday afternoon, robert gates, former defense secretary, has published a memoir. Its about his years as a topranked member of the obama cabinet, its sharply critical of the president. Here is my take. The wall street journal, usa today, the Washington Post have the story all over their front pages. Theyve given it the prominence it deserves, but the New York Times puts the story on page 12. And the times makes sure you know that robert gates is a republican, thus subtly undermining his criticism of a democrat president. This tells you something. The left is now in full defensive spin mode. Democrats take their marching orders from the New York Times and those orders are attack the bearer of bad news. Challenge his credibility. In fact, the gates book is devastating to the president s credibility as commanderinchief. As the leader of troops that he was committing to battle. His heart wasnt in it. Worse, gates writes that both Hillary Clinton and president obama considered the surge in iraq as mainly a political move. They werent concerned about winning the war, they were concerned about the vote, with politics. I come from a family that for several generations has served in the military. Im trying to put myself into the shoes of parents here who saw their sons and daughters volunteer to fight and die with barack obama as commanderinchief. I would not be happy reading that a defense secretary is calling out the president for putting politics in front of victory. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Were open to it. If. Hey breathings hard. Know the feeling . Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways r a full 24 hours. Spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Te your doctor if you have kidney problems, glaucoma, trouble urating, 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, yourhroat 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. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Origination under varney and company. Defense secretary changes the political landscape. Robert gates says the president put politics before the troops he commanded. Colonel ralph peters is here. Jasonmac parrot follows the youth vote, youngsters follow rolla Rolling Stones communist manifesto was the war on poverty turns 50. That was a game changer back then. Our guest says we need to change that game again. Would you make money in a company that you think this is a moral . I wouldnt do it. Doctor keith ablo will put me on his couch. 3d printing coming to your home. Charles payne tells us about that. Stuart i will call this a selloff. The dow jones average up 83 points, 164 is where we are. Lets look at the dow over the last five years under president obama. Charles payne is here. We hear the democrats want to run on the economy, specifically the success of the market rallied to win the elections this year. What do you make of that . Charles i think the republicans are always worried about this, particularly conservatives and overplayed their hand by trying to downplay the stock market last four years. Not as a replacement of the u. S. Economy but as a reflection of Smart Storage by corporations, corporations held their money, they were able to go out and continue to operate, didnt have to beg anyone for money, they are growing around the world, ambassadors of americas greatness. There is no correlation. If i had to put percentages on it i would say 10 i give to the fed, maybe 15 , 70 to the overall economy particularly the Global Economy and nothing i could do as direct correlation of the stock markets and the president. The timing is just a coincidental thing, it is not cause and effect. We crashed, absolutely crashed the market, oversold. Co. Hertz with the dollar. Stocks are traded like multibilliondollar companies go out of business, mass hysteria, just happened at the right time for the president with respect to this. When market hit an alltime high under george bush, it was a bad thing. Stuart now the rich are getting richer so lets make them pay. We are talking Game Changers this morning. 3d printing, one company in particular, make a buck, showing off what might be the most consumer friendly 3d ever, the maker bought many promises to be easy to use costing the thousand dollars, could be the device that puts 3d printing in your home. You have been hot on the industry, you call it a game change. Charles it is being bought by stratus, publicly traded. This year hewlettpackard gets into the space. I dont think they will start from scratch. Charles think somebody will buy some one. Do they want to be on the retail end of this . Stratus is both. That is why this maker bought acquisition charles look at that chart. How amazing is that . stuart would you recommend that . Charles oh yes. Charles it is a game change randy will be a game change beyond you designing a wallet and your house printing it out for someones birthday. It could be anything, and industrial game changer down erode. Stuart a new high for forest lab. How good is it . Nicole a new hy, april of 2004 high, 151 4 , buying up the challenge for 2. 9 billion, complementary to the other drugs and gastrointestinal in addition to Cystic Fibrosis drugs and this was a carl icahn call because the id was saying they would step up, a ceo change, and this is one of the steps going forward. Stuart this is the choir stock going up. Charles this is one of the trends that makes me bullish on the market and we will see a lot of acquisitions. Every week i see 4 or numb 5 companies that make acquisitions and stocks go sky high. Wall street wants them to put that money to work in anticipation of demand in the future, dividends, a little confidence when you raise them but nothing means more to the stock market than seeing the company put money to work, building or requiring business for the future. Stuart Something Else we have been talking about for a long time. Is College Worth it . You might say no. According to a gallup study four in ten College Graduate end up in jobs that dont require a College Degree, 40 . Hollywood a hypocrite author jasonmac parrot joins us from d. C. Is this changing of the college game, pushing people away from college . Not going to go to college in such numbers anymore . It should have people revaluate their options rather than being saddled with 30,000 of debt which is average on exit in college and find a job that is not paying enough to make up the loan, you look for Community College or look to not study some silly liberal arts program anymore which is not a traditional rigorous study that it used to be but look more at the sciences and engineering degrees which will help you find a job upon exiting college. Parents and students especially parents should release evaluate their options. 30,000 upon leaving college and you are stuck with a job you didnt even need the College Degree to have. Stuart next one, Rolling Stones message to millennial, five economic reforms, Rolling Stone says we are fighting for it. Bear with me, jason. I know you are breathing heavily but number one, demand, guaranteed work for everybody. Social security for all. Take back the land, make everything owned by everybody. Up public bank in every state. That is a communist manifesto. Do you think young people see it for what it is . I want to meet this government unicorn that is going to take us to the land flowing with milk and money. Winners this egalitarian parrot diesparadise . North korea or cuba, there is prosperity there. Unfortunately these attitudes are pervasive among millennials, pew research this study just a few years ago and found 47 of young people viewed capitalism negatively, 49 viewed socialism in favorable terms. I dont think it is surprising because they are ensconced in academia for so long where capitalism is indicted and the state of americas economy has nothing to do with capitalism, a mixture of Big Government cronyism but capitalism is indicted. I also think that many millennial sarge just lazy. They have a terrible work ethic, people who have been giving awards for selfesteem since they were children and reality smacks them upside the head and they realize we dont hand out trophies for everyone in the real world and they look for a scapegoat and the scapegoat is capitalism. Stuart we want to hear some change coming for millennial, we dont want the indictment of this generation, you got to get out there and do some work and turn these millennial around. That is your homework, okay . Mission accepted. Stuart i used to be steward. I thought we were i can call you stuart varney. Stuart thank you very much, see you again soon. Can we move on to j. C. Penney . It says it is happy with holiday sales, investors are not. How about the stock . Nicole theyre words to describe a pleasing performance over the holiday period. Everybody knew their cocktails were improving, they seem to be happy with their numbers so they dont release the sales figure over that period of time. Stock is down 63 over 52 weeks, down 56 . They seem to be at least improving, the company saying they are offering the Holiday Shopping season in store or on line, and turn the company around and see if this is the turnaround. Stuart see if Charles Payne still thinks it is a decent buy at 7. 50. Charles i do. I would as a caveat that it is higher than normal risk. When the company says they were happy with how they did it and the street says stuart if i went out today and bought shares of j. C. Penney, what would you say to me tomorrow morning . Charles not much tomorrow morning but i would say lets talk about it. Give us 60 days to reevaluate but i think it is biweekly. It is weakness. Stuart new york citys new liberal mayor bill deblasio pushing his progressive agenda, higher taxes on a ridge, big expansion of the entitlement program. New york citys former mayor Rudy Giuliani thinks bill deblasios plan will hurt the city. Listen to what he told sean hannity last night. Every policy they are talking about is a policy that has failed several times historically going back 140 years. Talking about marxist ideas. Stuart marxist ideas from the new mayor of new york city . Judge Andrew Napolitano is i dont know what he is going to say. Would you going to say . Judge napolitano i agree with rudy guiliani. The progressive ideas of the concept that you can make poor people rich by making rich people or has been a failure throughout all of American History and british history. I didnt want to go there. You are my favorite Prime Minister of recent memory, Margaret Thatcher once said, many great 1liners from her the problem with socialism is sooner or later you run out of other peoples money. Bill deblasio thinks that wont happen. He will drive the high welfares out of the city before they let him take their wealth from them. Stuart he is dragging president obama to the left, you could argue bill deblasio occupies an import position in the democrat party. Judge napolitano i dont know people drag president obama to the left but he is one of the new left leaders of the Democratic Party nationally along with governor omalley of maryland. And pull the Democratic Party to the left. And the democratic nomination to the left of Hillary Clinton. Charles in your illustrious career you saw people go to jail, when they got in jail, it wasnt about learning lesson, but climbed them wrong way, it could be done a different way. They came up on you again and again. Why do people do this over and over again . In my mind this time they think they have figured it out. This time we will take from the corporations. Make the corporate Balance Sheet judge napolitano giving them too much credit. Their only concern is getting elected and getting reelected. They dont care if it works, just care of it produces votes and for bill deblasio this produced an avalanche of votes, he buried his opponents in the democratic primary, he crushed his opponent in the general election, he knows this wont happen . Why wont get happen . Because of new york state law which requires approval of the legislature and governor to raise taxes. The governor ran for reelection and wants to run as a tax cut, lasting in the world andrew cuomo wants to do is be responsible for increasing taxes on the rich in new york city in the year he is going to ask for money and votes. Stuart i say this kind of class warfare, bill deblasio is doing it, the president is doing it, that kind of class warfare may be a political winner. Judge napolitano numbers are on their side. Some of the statistics you were talking about earlier, it was 40 , and the 47 that got mitt romney in trouble. Growing under obama, not shrinking. What happens when it passes 50 . There will be more bill deblasios being elected. Their tax rate is 78 . Stuart would get there with a check. We are out of time but thank you, we appreciate it. Former defense secretary robert gates blasts president obamas leader should style in his new book, he put politics before his troops, because he didnt consider the president didnt consider the wars to be his. Colonel ralph peters explains. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats why i take my warfarin every day. But it looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stopradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have haa heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell yr doctors about all medicines you take. Pradaxa side effects include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. Open to innovation. Open to ambition. Open to boldids. Thats why nork has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. Stuart twitter has been up and down, down and up 72 days ago, it is down today some more because they gotta downgrade, 59 on twitter right now. Charles says he will make us some money with technology solutions. What did they do . Charles business consulting. Ever see the wild beast of africa take down a wildebeest . That is what theyre doing on wall street and twitter. Every day they downgrade and it is cracking key support. I like when stocks brave support. Stuart you told me to buy it. Charles i told you not to. We will get there soon but i like cotton. I was real early last year, they need a lot of technology workers. It missed out big time. They do analytic applications, cloud consulting, ibm should look at these guys and make a bid for them, whether there are three areas, financial, health care and retail logistics. All these businesses are doing well but those with the biggest margins are growing fastest, health care of 24 , 30 operating margin, with logistics, europe was up big, 37 , fairly touched the surface in those areas. They moved the headquarters from new jersey, a hole in the wall office to austin, texas, 10,000 more jobs in america, 166 employes around world, a Major Company doing major things. We talk about robots taking jobs, software and analytics. Stuart the relish that you said they moved to austin, texas. Charles how dare you leave new jersey . Stuart moving on, real serious, former secretary of defense robert gates making big headlines criticizing president obamas leadership in iraq and afghanistan. Bill gates mr. Gates said the president put politics over the troops. Colonel ralph peters joins us from d. C. I have never seen this before. I have never seen a defense secretary criticized so sharply a sitting president. You seen anything like this before . No. The real surprise is that somebody who just left washington, a washington person wrote an honest memoir. That is what is stunning to me but as far as i see a couple things, first we are all doing a media thing, critiquing this book and none of us have read it. We are relying on bald. s view in the New York Times but from what we do now, i dont see a lot of surprises. Are you surprised that obamas, as wars who never served in the military themselves, too important to sustain the military, are you surprised the president and Hillary Clinton opposed the surge in iraq for political reasons . Are you surprised congress are hollering hypocrite . Stuart yes, i am very surprised that this president or any president would play politics with the troops, put politics and votes ahead of the welfare of the men and women he is sending in some cases to die in a foreign land. I am not such a cynical about washington, i am not such a cynic about president obama that i expected any such thing. I am surprised. I am not surprised. It sounds like the book needed one more draft because there is a lot of conflicting stuff as far as we know but the thing that is horrifying to me is that even gates didnt see this, gates says that while he believes obama supported the troops obama didnt support the war in afghanistan, that doesnt make sense. If you dont support of the war to which you are sending our troops to be maimed and killed you not supporting the troops, how can you support the troops and abandon them as president for five years in a war you do not believe in, that you do not believe can succeed . You are dealing with honest people like bernie madoff. I am in washington. Stuart sarcasm. You just went over that cliff, you really did. Answer me this one. What is the more out of americas military people right now . Astonishingly good because they are the best americans, brave, solid but they were tired. We were them out for political advantage. You get this picture of obama in a tight inner circle of, scores who disdain the military. They didnt go to harvard or even brown. They are not serious people, when it comes time for somebody like some manpowers, susan rice to rescue a population hostile to america than it is okay to use our military. From what we know of this book i am hoping you and i can talk about it again after we have actually read it but it sounds to me like the most honest and profoundly damning indictment, not just of this administration but of washington that i have seen in my lifetime. Stuart i dont give Book Promotions but i am going to give one now. You wrote a magnificent book called hell or richmond. I read it cover to cover. I think it is the best historical novel based on the civil war that i have ever read. I was recommending it to our viewers. Will you please send me a free copy of your next book . The next one is 50 shades of blue and gray. Stuart always a pleasure, thank you. I have a question for dr. Keith ablow coming up after the break. Is it wrong to buy into a Company Whose stock you think is going to go up but you think its business is it moral . Dr. Keith ablow will put the morality of me on the couch in a moment. [ male announcer ] this is the story of the little room over the pizza place on Chestnut Street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i95. This magic moment it the story of where every great idea begins. And of those who believed they had thpower to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did in a little dorm room 2713. This magic moment when i first felt the diabetic nerve pain, of course i had no ideahat it was. I felt like my feet were going to sleep. It progressed from there to burning like i was walking on hot coals. To like,000 bees that were just stinging my feet. I have a great relationship with my doctor. He found lyrica for me. [ female announcer ] its known that diabetes damages nerves. Lyrica is fda approved to treat diabetic nerve pain. Lyrica is not for everyone. It may cause serious allergic reactio or suicidal thoughts or actions. Tell your doctor t away if you have these, new or worsening depron, or unusual chaes in mood or behavior. Or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. Common side effes are dizziness, sleess, weight gain and swelling of hands, legs and feet. Dont drink alcohol while taki lyrica. Dont drive or use machinery until you know how lyrica affects you. Those who have had a drug or alcohol problem may be more likely to misuse lyrica. Having less pain its a wonderful feeling. [ female announcer ] ask your doctor about lyrica today. Its specific treatment for diabetic nerve pain. To hear more of phylliss story, visit lyrica. Com. Stuart a moment ago we had a good shot of the hudson river iced over. There was the tugboat pulling a ferry through there you go, look at that. That is the hudson river. About 250 yards away from here. It is cold but it is warming the. A question we raised the fort on varney and company. Is it immoral to invest in a company that has questionable practices like for example making and selling tobacco . Dr. Keith ablow joins us now. Should i invest in the company . I know stock is going to go up but i also know that is an immoral company, selling a bad product. Should i invest in it . This should be an easy question that in these cloudy ethical times it is perhaps difficult. For some the answer is no, of course you dont invest just to make money when you know a company is doing something you consider bad. Stuart i agree with you. I thought we were going to have a fight. Have to be like a tugboat dragging it to my point of view. Stuart i want to make money. If i invest, my job for my family is to get and keep the money and make it grow. That is what i do but i agree with you. I am not going to invest in a company which i think is unethical. Were agreement. Is that the end of the interview . There is more. People should understand as americans you get more than one vote. You can vote at the ballot box, if you dont like the fact that Philip Morris is selling cigarettes, if you consider that to be reprehensible than you say no. That is why i dont hold facebook. I think facebook is an addictive company, bad for people. Depositing them in a Virtual World is lousy and doesnt lead to anything like the truth in peoples lives. I didnt buy it, could have had some twitter shares before the ipo, id said no because i consider that an addiction. We disagree there but i personally wont hold it. Stuart you would condone any social network . You wont catch it . Unless someone comes up with something called living the truth in which people talk about their secrets and what weaknesses they have and commune with people around their pain, you want me to be the spokesperson for that i am in. Stuart we use facebook on varney and company, we have an active discussion, it is valuable for me, for us, for the show. Theres nothing wrong with that. There is something wrong with that. I use it for my business purposes but theres something wrong with that. We lack the courage it turns out, maybe you dont believe it is bad for people. I happen to lack the ability to set the thing aside and say i wont if you have a of a drug stuart look at that. You got to invest in technology. Charles was the doctor admitting to a little hypocrisy . Stuart certainly not. Charles he doesnt like social media but admitted to using it just the way you use it. Stuart you going to break him back on and say you are a hypocrite . Saved it for next time around. Sandra he is pointing out something something important that facebook is addictive, it has proven to suck up production levels at work places, people sitting on facebook rather than doing their jobs. Is it unethical to than invest in a company that is ruining peoples lives . Charles he thinks it is a lot worse than that. He is talking about people going into a cure delusional lives and forgetting about real life. He has been on a lot about this. Stuart moving on. Dep freeze gripping the country this week. It was colder in texas that it was in alaska. That means a big demand for heat. Check the price of natural gas. It is a little bit this morning, 4. 32. Per million british thermal units. Sandra that is a way that they measure the amount of heat they are getting out of natural gas. You are looking at 4. 32 per british thermal unit, this is 30 from last year, that means half of the country is paying a third more to keep their homes than they were last year because we saw the coldest part of any winter in the country in the last decade so we are paying higher heating prices on the east coast, lot of folks use heating oil, those prices flat over the past year, getting an Oil Inventory report out, the drawdown is nearly 3 Million Barrels in the latest week. Stuart what does that mean . Sandra basically we are using a lot of energy with these cold temperatures so expect these prices to go higher. The best performing commodity better than oil, gold, all of us in 2013 and one of the best performers in 2014. Stuart coming got a republican senator who voted to extend longterm Unemployment Benefits. He is here, he is next. So i can reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. And she might have if notor kari, the identity thief who stole jills Social Security number to open credit cards, destying jills credit and her dream of retirement. Every year, millions of america just like you learn that a little personal information in the wrong hands could wreak havoc on your life. This is Identity Theft. Lifelock offers the most comprehensive identityheft protection availae. If jill ha lifelocks protection, she may have bn notified before it watoo late. Lifelocks credit Notification Service is on the job 24 7. As soon as they detect a threat to your ideity within their network, they will alert you,rotecting you before t damage is done. And lifelock offers the proactive protection of checking and savings account takeover alerts. Lifelocks comprehensive Identity Theft proion guards your Social Security nuer, your money, your cret, even the equity in your home. It doesnt mattew old you are or how much money you have. Identity thieves steal from everyone. You have to protect yourself. I protect myself with lifelock. [ male announcer ] while Identity Theft cant be completely opped, no one protects you better than lifelock. And lifelock stands behind their protection with the power of their 1 million service guarantee. You have so much to protect and nothing to lose when you call lifelock right now and try 60 days of Identity Theft protection risk free. 60 days risk free. Use promo code onguard. Order now and get this document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Stuart the senate voted to extend longterm Unemployment Benefits for an extra three month. Will cost 6. 4 billion. Six republicans joined democrats to pass the extension. Senator dan coats, republican from indiana joins us now. Why did you do that . This was a motion to proceed so we could debate and offer alternatives and pay for this thing if it did go forward. This mischaracterizes the vote for the bill, harry reid has been denying us republicans opportunities to offer our alternatives. This Program Needs to be fixed. Lien need to separate legitimate people who are legitimately working hard to find a job and cant find a job for all those who see this as a Welfare Program that keeps them from wanting to have a job. We wouldnt even have that opportunity if we had not pass this motion to proceed. Now we will debate it. Democrats will have to stand up and say we will pay for it and make these reforms so i wont vote for it. Stuart you wont vote for it unless it is paid for. Is that the bottom line . That is one and unless we make reforms so we eliminated those getting payments to simply say i dont need to look for job, i can collect my check every week, i want this to go only to the people who made every possible effort to get there and having gotten there yet. We need policies that grow the economy and give people opportunities, not just welfare checks. Stuart i dont think harry reid or Many Democrats in the senate would go along with that stipulation, that reform. Lets put the on the spot. The ball is in harry reids and democratss report instead of being blamed for heartless, cool measures, better chance. Stuart i you concerned about being demagogued . You could be portrayed as heartless, throwing them out on the street. You will be demigods. You are not worried about that. We would be demagogue if we had not tested. We took not a risk because it has been characterized we support the program. We dont. We only support the program if it can be reformed and is paid for and then we will consider whether it is wise to go forward but the real demagoguery that has come down is president says republicans, you have ideas, bring them forward. Harry reid hasnt let us do that. This puts the ball in his court and says here we are. We got our ideas. What you going to do . Stuart thank you for clearing this up. We had mischaracterized it as you voting for an extension period, now you got it right. It is a pleasure to have you with us today. Gun sales, new record in 2013, 21 million applications went through for background checks, background checks correlate very strongly to actual sales, that is an 8 increase over the Previous Year if you beat 11 straight years the number has gone up. One Gun Store Owner says watch out, theres going to be a run on ammunition, that is the next boom because it has not caught up with the hired gun sales. Sandra this is absolutely fascinating. Once again proves president obama has been the best seller of guns for the united states, gun stores in history but if you look at the state level is fascinating. As usual kentucky, texas have the most gun sales the biggest jump in gun sales were in the states that enacted the most new gun laws, md. Gun sales. Colorado, connecticut, new york, and the demographic still women as far as i know. Stuart that runs absolutely counter to what the establishment media is telling us about fought in america on guns. From the fbi on background checks the indicate gun sales, purely showing people are feeling their guns of being taken away from them. Charles the newtown tragedy they took off even more because everyone thought that would be the impetus, this might he didnt achieve it. One thing i will say, alliance on the show in october, we are still in it from 100. The bulletmaker. I like this side of the story. That one from 100 up 20 , and like that one better, from a year ago point, some of the more recent data shows plateauing, permanent applications. The big one on the downside, the ammunitions side. Stuart the war on poverty turns 50. That with a game changer back then. Our next guest says we need to change the game again. More on this next. Look at this. Must have the privileges of citizenship. Requires a decent home and the chance to find a job. And the opportunity to escape from the clutches of poverty. [ cellphones beeping ] [ cellphonrings ] hello . [ male announcer ] over 12,000 financial advisors. Good, good. Good over 700 billion dollars in assets under care. Let me just put this away. [ male announcer ] how did edward jones get so big . Could you teach kids that trick . [ male announcer ] by not acting that way. Ok, st quarter. [ male announcer ] its how edward jones mas sense ofnvesting. Stuart alan mulally will not be changing jobs. He has speculation of moving to microsoft, microsoft stock is way down on that news, jpmorgan raising its price target, that stock hitting a new high on that news, 78, a 6, facebook finding indian tech starbucks labs makes software to analyze the performance of android apps. Facebook hoping this will help expand its international profile, Facebook Stock is up 58, netflix announcing it will produce ten original series in 2014 including season ii of the hit house of cards. All of them will stream in a highdefinition format. Netflix stock rebounding, up 6 points. Up next will president obamas war on poverty continue . [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were en to it. Start a taxfree business at startupny. Com. Stuart give me the list. An Exciting Group of names, constellation brand continues to grow. Also corot not doing well. Micron which recently some speculation it could be apple 10. 5 , jpmorgan rrised the price to 89, yahoo which is obviously a winner too, right now at 41. 64 hitting a new high as well. Four new highs speaking on a day when markets are off. Stuart each of them, thanks. Charles will make us some money here is a company i know. Stuart they do food service of. Charles big ovens and things, had this on the show, the fourth time, breaking down to a 52 week high today. I think this is a fantastic industrial name but yelp is a high flier a eight points down for tomorrow. This is the one i like for people watching and thinking about their 401 k , something i could buy for the next five years. They made a big transition, global play now and the company doing extremely well. They are smart, keep coming out with new products and innovation, never skimp on research and development. Stuart a huge order from overseas. Charles a 3,000 square foot facility in brazil. Stuart president johnson waged war on poverty, the first state of the union address. How is it going . With the heritage foundation, rachel, welcome to the program, we are told whaleback then, the war on poverty was a game changer designed to be your and prevent a recurrence of poverty. In your view has it failed or succeeded . Overall war on poverty has not been a success. 50 years ago today president johnson launched the war on poverty and since that time the poverty rate has remained unchanged. This doesnt mean the 20 trillion that have gone into Welfare Programs has done nothing to do is the material Living Standards of the pour but as far as helping americans achieve selfsufficiency it hasnt done that. Toos remain trapped. Stuart some numbers from heritage. We spent 27 trillion on this effort, that goes to support 80 different Welfare Programs. Last year we spent 916 billion on it, 100 Million People got something for an average of 9,000 in cash value. Why not just give everybody, give 100 Million People 9,000 each . Would that solve the poverty problem . Basically the approach to poverty has been that, putting more money in and creating more programs to address the symptoms and yet we havent addressed the causes of poverty. That is what the welfare system needs to be. Stuart we are not changing. President obama is simply giving us more of this war on poverty. That is right. Welfare spending will increase and under president obama it has increased by more than a third. He continues this failed approach and to truly help the poor we need to address the causes of poverty back on their feet and we have a model of that in the 1996 welfare reform which encouraged work and we need to do both principals for other of many Welfare Programs. Stuart we agree entirely. We need more time for this. Come back and see us soon because it is an important subject. Tech Companies Using San Franciscos Public Transit stocks. That is not sitting well with some in the bay area. We are back with that story in a moment. [ male announcer ] once, there was a man who found a magic seashell. T told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. Indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little ro above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Dell is honored to be part of some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Stuart technology Companies Using San Francisco ups client Public Transit stops to pick up their employees and shuttle them to work. Those Tech Companies that do that will be charged. What is this all about . Charles the war on the rich and successful has come to Silicon Valley. These guys were insulated from it. I call it the cool factor. Now people are upset. When twitter went public a group of people marched to the twitter headquarters and said we are the public, we hear you are offering something, public offering. San francisco might be a victim of its own success. They had fortresslike campuses they work on, they shovel their workers with their own Company Buses so they never have to deal with regular folks, rents have gone through the roof, it is a serious challenge for these guys. Wait until people find out how little taxes they are paying in their profit margins. Stuart trying to get some money out of them. Before taking the Elizabeth Warren of approach. Google and all you guys, basic steps, you can use our bus stop or drive on our roads or share more of this, this is the tip of the iceberg. Watch Silicon Valley in 2014, might be the new at the center for the war against success. It wont replace wall street but it will be up with it. Stuart an inherent problem is Technology Companies create an enormous amount of wealth with very few people actually in the company. Stuart charles president obama is as angry looking at wendys yesterday, 29 of their sales go to the work force. 30 goes to food and paper and another 30 goes to rent. Their margins are minuscule. You want to attack them for not higher wages . Why dont you attacks upon valid . Yahoo . A 50 profit margin. Stuart you cant. Googles guy is in bed with president obama. Charles it may backfire soon. It is like training the pit bull to by everybody else until you are the only one in the rim. Stuart next your take on robert gatess blasting the president. She keeps you on your toes. You wouldnt have it any other way. But your erectile dysfunction it could be a question of blood flow. Cialisadalafil for daily use helps you be Ready Anytime the moments right. You can beore confident in your ability to be ready. 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Last hour i gave you my take on former defense secretary criticism of about his leadership in afghanistan basically the charge is the president put politics over the troops. He played for politics not victory. The president never had any credibility. It was a Community Organizer with little or no experience to lead this country or our military. Obama has done nothing but play politics the way should it would be surprised heebie concerned about the safety of our troops . If the administration has lost credibility by to be allowed the destruction to continue . Obama will run as the antiwar candidate. I think he has put on the front i think they ever like to the u. S. Military and i do think they ever will. This could come back to bite him. Yes. We are out of time. Thank you. It is now to you. Connell and capitol hill critics say the agency is already too big with the targeting scandal but now will they say now . Slightly warmer to apertures of the rise could be enough to get people back to work despite the deep freeze. The jubilees ski operators in colorado are not concerned about the snow on their mountains and why it could cost them business . In corning making waves at the Consumer Electronics show Liz Claiborne today well show you what else theyre rolling now. We have more on markets now. Dagen not just the voluble of the snow but the quality. I lived in colorado for two years