it is fascinating. berkshire hathaway has 116 billion in cash. he's not sure what to do with it. he wants to make deals but everything is too expensive. buffet also made 29 billion -- well, the company did -- with the tax cuts. what's he going to do with that? give it to shareholders? don't know. warren is not a big fan of tax cuts. and we expect to hear a little bit later. the florida shooting will be discussed arming trained teachers, limiting gun purchases to people 21 or older, and the apparent break down of law enforcement during the shooting rampage itself. all to be discussed. this is "varney & company" monday, february the 26th, and we are about to begin. ♪ ♪ ♪ ♪ . stuart: it's wonderful to be back, you know? liz: welcome back. we missed you. stuart: i look well? ashley: rested. liz: yeah, you look good. stuart: what do you want? ten bucks or 20? liz and charles, if you're watching, thank you very much indeed for picking up. liz: sure. stuart: during my week of absence. it will not be repeated. this is monday morning up 130 on the dow industrials. the gentleman to my left is scott martin. kings view asset management. in the distance there, i think it's tennessee. former reagan economist art laffer. all right. scott, to you first. it looks like this market just wants to go up again. where am i going wrong? >> you're going right. here's what's interesting what has happened in the last five trading days that has not been happening in the beginning of the month. interest rates are calming down. remember 3%? everybody was deathly scared that this thing was going to take on us. the rates have calmed down. as long as rates back down a little bit more, i think you're going to see equities rally. stuart: okay. art laffer. come on on this one, please. it looks to me that the market just wants to go up. again, where am i going wrong? >> i don't think you're going wrong at all either. i think the previous comments were exactly correct. i think the long run this market has a long way to go up. it will have ups and downs, of course. but if the pass is any guide to the future, i think we've got a long bull market for years to come. stuart: a long bull market for years to come. are you going to repeat your prediction of was it 30,000 within x-number of years? >> oh, i don't know if i would do 30,000 within x years. but if you look at what happened under reagan from august of 1982 until august of 2000, i mean, the market was up 13? 1350%, 750% in real terms. i mean, that's a 13 fold increase or a seven and a half fold increase in real terms. this market has that type of potential, stuart,. stuart: all right, gentleman, you have both done a fine job of establishing the feeling. first thing monday morning. stay where you are, please. i'm going to move on to a new subject. to the white house. president trump meets with governors today. they're going to discuss school safety and probably a degree of gun control. joining us now white house principle deputy press secretary. the president seems to want to -- is talking about banning bump stocks, arming trained teachers, raising the minimum age to buy a rifle. he's talking about all of the above; is that correct? >> stuart, thanks a lot for having me on. yeah, he is talking about those issues. he's also talking about improving the background check system so that way more information, more streams of information are made available to people who are making background checks. we are looking at school safety as a holistic issue. you mention arming teachers. we're talking about hardening school facilities so that with teachers and other employees on campus could have access to a concealed weapon. a trained individual could deter a tax. he's also talked about, and he's actually ordered the department of justice to pursue a rule that would ban the sale of new bump stocks. so the president's looking at this from several angles. we believe that the best approach is to find a way in which we can prevent individuals who are troubled or dangerous from acquiring any weapon, rather than banning whole classes of weapons for all individuals. stuart: how is the president going to ahandle the news reports, which we're now receiving, and we've received them over the morning of a break down among the law enforcement officials? on the scene but not inside the school. how does the president handle that? >> well, it's a serious break down. i think that each community, each law enforcement agency from the federal, state, and local level in this instance clearly showed a breakdown. and we need to address that with some accountability, some, you know, real action about how we prevent these types of things from happening in the future. the other thing that we need to do is establish best practices going forward. but, again, the focus from our perspective is to create an environment in which troubled individuals who are identified as dangerous to public safety, dangerous to themselves or their communities are prevented from owning any firearms. stuart: now, the -- a lot of governors will be meeting with the president today. >> that's right. stuart: some of them come from states where they don't have a great deal of money. >> uh-huh. stuart: to say that they're insolvent or flat broke is a exaggeration. but they don't have much money. how are they, those states which are in tight financial conditions, how are they going to pony up some money to match federal money for infrastructure projects? >> well, stuart, thanks for bringing that up. currently, states and local communities pay for about 80% of infrastructure funding. the federal role in this is still pretty limited. what we want to do is give these communities more bang for their buck. we want to make sure that we streamline the permitting process, we reduce regulation so that way they can afford to build more for less. we also want them to have more local control over these infrastructure projects. and then on the -- you mention some states in rural communities, we have certain funds set aside specifically for rural communities for rural broadband. so the president is looking at this holistically. he has an approach that leverages $200 billion, 1.5 trillion for state, local investment. we believe the money is there for state and local communities are going to want to get involved. stuart: thank you very much, sir. we'll probably hear from the president later on during the show. >> thank you very much for having me? stuart: yes, sir. thank you. next case bernie sanders was in michigan. he wants to repeal the tax law. roll tape. >> tax code, by the way, would raise the deficit over a ten-year period by $1.4 trillion. tax breaks for the rich rake the deficit and then go to the american people and say, oh, my god. the deficit is going up. we have to cut social security, medicare/medicaid, education. stuart: i think you heard the audio going on there. but art laffer appears on the screen there. part of that -- part of the speech, look, get rid of that tax law. a lot of it was about free stuff. free college, free medical care for everybody. medicare returns expanded. now, i put it to you, art, that that is -- no. no. no. i know you're laughing. that's appealing to a lot of people in america today. free stuff is appealing. yet, this guy is still making waves, affirmative. >> well, sure he is. he's the opposition. but when you think about bernie sanders is younger than i am yet he's an older fool than i am by far, it's just crazy. where does he get his -- first place, this is not going to create a deficit of 1.4 trillion over ten years. it's going to be just the reverse. we're going to get economic growth prosperity. the people whop the free stuff right now because they don't jobs. they will have jobs. higher-paying jobs and as kennedy made it very clear the best form of welfare is still a good high-paying job. and bernie sanders is in a model of destroying jobs. and frankly, i think his day has long passed, and i just can't believe he's still saying all of that same stuff after the election results. but, you know, there he goes. stuart: excuse me i'm causing again. sorry. >> welcome back, by the way, stuart,. stuart: thank you very much, indeed. it's great to be back. feels good. liz: yay. stuart: what did you say? liz: yay. liz: i won't make you laugh ever again. >> you promised him no jokes. we've made it nine minutes. great. stuart: get back to the market. oh, look at ge. >> jokes. stuart: yeah, really. tough stuff. they're going to restate their profits from the past two years, liz. liz: yeah, shaving 13 cents to 2016. and a big 16 cents i think off of 2017. so, you know, the big thing with ge is trading at 1996 levels. that's where the stock is trading right now. so that's 22 years' worth of gains. the other big story that the markets are talking about is this: they have the biggest pension unfunded pension liability of any s&p 500 company. they are the worst when it comes to their unfunded pension. they're trying to rejigger $20 billion in asset sales at the company. and they're still under fcc investigations. the company is in a world of hurt. stuart: yes, it is. now, there are has been massive flooding up and down the central part of the country. not to subside until the middle of the week. this week, that is. janice dean is coming up. she'll have the latest for us. also this hour, we'll have a live demonstration of samsung new galaxy s9 phone. it is their answer to the iphone 10. it is, by the way, a lot cheaper. next, the broward county sheriff now under fire for his department's lack of action leading to and during the florida shooting rampage. the judge on whether the victims can hold the department liable. oh, and there's the closing bell. (sighs) i hate missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, only with td ameritrade. . stuart: just a tiny bit of a fade here. but we're still going to be up 120 points on the dow. 9 on the s&p, 20 on the nasdaq. to the florida shooting. warnings on the shooter went ignored. and now there are calls for the sheriff to step down. the new york post reports than the one but four deputies did nothing to stop it as the shooting was happening, and it was occurring. here's florida governor rick scott on fox news sunday. roll tape. >> the local sheriff's department has got to be completely transparent. we have to do a thorough investigation, and whoever didn't do their job has to be held accountable. i talked to law enforcement around the state. there's no one i talked to that is not disgusted that the local sheriff deputy that was there did not go in and kill that individual. stuart: very strong stuff. disgusted that the sheriff who did not go in and do what he was supposed to do. judge napolitano is here. if it's such a gross failure of law enforcement, can law enforcement be held legally liable? sued for damages. >> great question. generally, law enforcement cannot be held legally liable in most states, certainly in florida, for the failure to prevent this from happening. if law enforcement is granted digression, and it exercises that digression, and it exercises that improperly, but it's within the range of acceptable digression, it cannot be sued. but if the exercise of that digression is outside the range and almost all law enforcement people would tell you governor scott is correct that the appropriate thing to do was to go in the school and engage him, then that is the exercise of discretion outside the acceptable range. so if the facts are as governor scott believes them to be, yes, there's a basis for cause of action. but that's not necessarily good news for these plaintiffs because the government over which he presides has limited liability. $200,000 per person. . stuart: but it would not be a desire to make money. it will be a desire to have the truth exposed and blame ascribed as opposed to a money-making objective here. >> well, it's hard to say what the desire would be. ordinarily the only way we can compensate for the loss of a human life is in a wrongful death suit for money. $200,000 is woefully ininadequate compensation for the loss of a 17-year-old. but florida has these caps. . stuart: okay. >> where we're going to go is going to depend upon the facts of the case. the neighborhoods county or the neighborhoods municipality, their police are saying four cops. that would be a catastrophic break down and failure to do what they're supposed to do. . stuart: now, there's a report in a news website that president trump wants to execute drug dealers. i'm sure you've seen this. he said they're not having drug problems in china and philippines. they shoot them. look, i know that's not going to be the policy from the united states. but what do you make of that statement? >> well, the supreme court has prohibited the execution of one who doesn't cause the death of another. so it has to be hard to show. that might be easy to show or difficult to show. but they would've to show that a human being died as a result of what this very person did before the death can be justified. the only exception to that is treason. stuart: and. >> you don't have to show that the traitor caused a death in order to execute the traitor. that's the only exception to you must prove a death ruling. stuart: you're taking a legalistic approach to this. this is not a legal question. >> the president is saying something -- stuart: what do you make of a president who says this kind of thing. >> i say that the president is ginning up his base in a way that the base wants to be ginned up. now, let me gin you up. where were you last week. stuart: sick. >> you who never takes medicine, who mocks vaccines, you got sick? you must be very bitter. [laughter] . stuart: stop. okay? see what you did here? >> they're in my ear. he's weak. leave him alone. [laughter] . stuart: great to be back. >> great to be back with you. stuart: thank you, judge. [laughter] deep breath. warren buffett is now sitting on a huge pile of cash thanks to the tax law he called unnecessary. later this hour, someone who calls buffet one of the great tax avoiders of all time. can't wait for that. also ahead, mayor of oakland defying the feds giving a warning about possible ice raids in the bay area. we're on it all. don't forget about gold. but i'm not standing still... and with godaddy, i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ oh hi sweetie, i just want to show you something. xfitiny mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. sure. momwhat's up, son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. . stuart: on a monday morning, i would like to check all the markets for you. look at gold. up nearly six bucks this monday morning. a severe storm across the midwest. a dozen tornadoes and a foot of rain. janice dean is with us. janice, you have to tell us about the flooding. how bad is it and, please, when is it going to recede. >> well, unfortunately, we saw quite a bit of rain over the weekend. some of the video that we are getting in from michigan, not only severe threats over the weekend, but we saw the flooding. and also places like louisville, kentucky. there's the last 24 hours where you see all the rain. a frontal boundary, a stationary front that brought inches of rain across mississippi, tennessee, and ohio river valley over the last couple of days. we have a bit rest bit today. not a lot of rain in the forecast today. but you can see the streams are at their limits. what it can be any more water. so that's why we have flood warnings in effect. and even if we get an inch more rain, that's going to cause a major problem. so a lot of these areas at major flood stage. and you can see the future radar as we go into tuesday and wednesday, stuart. another system moving over the exact same area that was on order of six to eight, even close to a foot of rainfall. and you can see as we go over the next few days, more rain in the forecast, especially across the mid-south. so, unfortunately, you get the transition from the winter months to the spring months and the flooding concerns will be eminent, obviously, over these areas again. stuart: you know, winter is almost done, it seems to me. i mean, the new york area is 40s and 50s. no sign of snow. >> well, what you know? march can be a little bit finicky, my friend. we actually have 22 days on the calendar until the official rival of spring. sometimes march brings some big winter storm. we're going to have to watch something on friday. on friday, my friend. i don't think it will be a big snow maker, but it is going to be a coastal storm. so stay tuned. stuart: it's still winter, and you're still in business. meteorologist janice dean. >> open for business, my friend. stuart: thank you very much, janice. >> you got it. stuart: we're going to open this market in about four and a half minutes, and we're going to be up all across the board. the dow, nasdaq, and s&p on the upside this morning, and we'll be paying very close attention to amazon. back in a moment let me just take you back to last friday shall i? the u dow jones industrial average went up 347 points it was a fabulous week overall all five day or four face as it was straight up we closed 25,309. so of course on a monday morning first thing you think is well, is this going to continue? we're going get rid of the entire dip that we experience at the early part? back to highs that we had in january, 26,000 in change. are we going to do that this monday morning in the answer awaits us. a lot of question. yeah a lot of questions we have about 10 seconds to go. the market will open and i'm telling you now it will open higher maybe 100 points higher. that means -- we're getting close to the january highs all over again. bang here we go now 9:30 eastern time green on the left-hand side side of my screen and dow up 97, 98 points in the very early going. we're at 25,407. now we're up 100 points 104 that is a gain approximately one-half of one percent. how about the s&p -- by the way, i see a sea of green amongst dow 30 and s&p is up xeajt the same amount. almost a half percentage point and then nasdaq same story up precisely half percentage point. i've got to check amazon for you because this thing just keeps upon going and going and going -- it's going this morning. 1,508. it is u up $8.24 thus far this morning, of course, that is an all time high. now worth $124. by the way -- all right. stocks coming off a the big alley last week we've got more gains hitting market at this morning, ash on the left. [laughter] not politically, just -- on the left and liz yes on the right sitting right there. >> not geographically either. >> on the right and this man to my right. yeah, not politically by the way. this man is jeff seeker. jeff -- you explain no i think -- market goes up. >> been saying the tribe has spoken when it comes to -- buy on the dip we have a a market that was up 200%. gave back 10%. and tholeor w came out and said buy the dipnd thas what we're sing now. complacenc i belie is bac and what is unique abouthis marke is really not tbig stock five big techtocks raling most out of o all of tm. >> same story allver again. the same sry -- the tech and sner or lat complacenc w so all of these people that were calling a 10% decline on a buying opportunity, i think they're going to be regrettings that a little bit down the road. >> what's funny about that jeff and we have that decline everybody wanted stocks cheaper. there are a lot of folks i talked to that didn't come and buy they were too scared like you said they got like that and thought market would trend up and low volatility like in 2017 an a lot of folks didn't buy on dips. scared of offshore yes you did. on the dow that is 24, 25,000 sorry 25447. look at amazon top left hand side of your screen 1,512 per share as we speak. obviously, another all time high. you know, and -- netflix ought to thank you very much ash. you could have said at any point in the last year, that amazon was just too expensive you couldn't touch it a year ago $830 a share. when is it too expensive? >> it's hard to say i'll tell you what i think. amazon here is a little cheap i'm telling you and it sounds crazy but if you think about the next milestone for a.m. l dison -- reminds me of the dow jones crazy, it is 2,000. and i believe that that's what -- that's what it nears to a trillion dollar market right it's what -- they can do anything free cash flow is off the chart. and they're scaring even basically out of every industry -- and -- rnght i don't to get technical and don't buzz me when i'm sick but amazon has a ratio of 246 astronomical. >> you know i like amazon but all of the stock i agree with what everybody is saying about their potential. i believe they're going to continue to grow through acquisition which is a very good way to e grow but to me about when you have amazon being one of the five stock it is that money, there's an avalanche of money going into them you have to be very careful right now buying. >> i think well it would at 5,of course you would. wal-mart online sales slowed in the holiday quarter and now we hear that pulling back their investment in jet their online website. >> l helped them no doubt but what they found out is it is successful among higher income east coast cities outside of those areas, jet.com is not such a factor so wal-mart decided to attack money that is putting into jet.com putting it into its own flagship website. look online growth was 23% in the last quarter for wal-mart. it was 50% the quarter before that. wal-mart is particularly the 40% growth online immerse if you like for the entire year of 2018 and analysts are now saying that might be optimistic. >> okay if i'm looking for alternative to a.m. son and i want online player is wal-mart the place to go and do i buy it at 93? >> i believe yes you did and we started picking at it last week stiewfort and i believe there's room for costco as well. i think you have the big three retailers out there wal-mart costco and amazon we own all three. >> but wal-mart 93? >> i wouldn't touch it but keep in mind wal-mart is doing something very creative and that's that they are enhancing people ordering from the site, picking about the store. it's a riff but i think it is going to pay off. >> look at that market go up 177 on the dow industrials as we speak. up 186 i'm sorry 183 there you go. real close to 25,005 general electric will restate its profits for the entire last two year period. it's now at 14.27 a share. obviously question, scott would you buy it at all? >> no. but this is crazy because the news on general electric keeps getting worse and worse. we talked about this in january at some point ge will be a buy actually i thought it was higher so worse and worse but news will get so bad it will look good. >> interestingly earlier you pointed out ge has worst unfunded pension liability than any company. >> it is 28 billion, it's the worst from i think any publicly traded company in the u.s. that's wall street analysts are telling us. >> go. >> i will say that the blood is on the hands of jeff and mel. the left ceo who will historically go down in record as having the worst timing of any ceo got into -- got out of financial services, at the bottom got into energy at the top. and he left with a burning building. what i see doing right now is he's running into a burning building. trying to save what's left of ge there's more pain to come. eventually i think he's goings to do it. i believe that he is the guy for the job. but he has -- he inherited a mess. >> ain't buying it at 14. >> i aingt buying at 14 buy it at 11? >> going to buy it. that's a breakup value is 11 exactly that's a good point jeff. sorry -- scott -- he's he actually say he's going to buy something. >> that is revolutionary moment right there. [laughter] let me point you to the stock market up 149 points awfully close to 100 point rally from the get-go on a monday morning been open for eight minutes. we were up 340 points friday. 200 points now first thing this monday morning. let me tell you about boeing reportedly they've got a 51% stake in a brar still i can company you've flown their planes a lot. boeing stock has been on a tear more than doubling in the fast year. this morning it's up to 360 per share. here's a look at the tenure treasury yield as of right now. as interest rates have calmed down clearly, the market, stocks have come back. morgan stanley says, time to buy some buns but goldman sachs and warren buflt say if you're a long-term investor don't do bonds do stock. that's correct. that is correct. morgan stanley is saying there will be, quote, a wall of buying at 2.9%, 3% which will keep that yield hovering arranged there. remember the markets sell out fell down the stair when is yield touched 2.9% but fear to hit above 3%. goldman sachs is saying you will see a 20%, 25% correction to the downside. if that yield goes to 4.25, even though it is still saying it was stick at 3 and a quarter. >> long way away from two and a quarter. from 4.25 we have jerome and free rate hikes play it bit book that's a wall street saying. >> listen to this from a it will this broke while i wases away i'm astonished by it. if it is going to start keeping security data for its china based customers in china as opposed to back here in the united states. this was seem to me liz to just open up pandora's box for repressive regime. >> that's correct. here's what's going on. apple has a big cloud business that's a big computer server in the sky. it's staying keys unlock that cloud server will be in china. on servers there apple saying we're beginning to keep -- you know access to that no one else will have it china has a notorious aggressive regime they don't need a warrant to take that computer seiver that links to that in the sky and just take all of that information. other o thing stuart too if you're in china, and working there -- and you're using apple icloud, and you back up your iphone to the apple icloud, that means china can get anything from your iphone via icloud if it takes that computer server that's linked china, i mean, this is a fifth of apple sales is greater -- china including taiwan. so you know, that's a debate there. >> the price of doing business in china you have to play by their roles you have a choice either you toangt and they don't allow you to do business there or you take it or leave it. >> my question -- amazon and microsoft andamazon doing same thing. >> doing the same thing. let's go arranged the block here is that the right thing to do? >> no. ethically. >> no absolutely not. >> it's dangerous. >> i won the play ball with with china. >> smart companies are not doing that if apple is faced with a situation that chinese government tells them that they want them to unlock a phone. what is the -- what is a physical going to do in that situation? this is a colossal blunder or by china and give companies advantage nobody wants chinese government in charge of their cell phone and apple handed it to them it's a debacle. stuff market is up 216 it's that time we have to say thank you very much for scott and jeff we appreciate you being here. gentleman thank you. look at the big board now up 215 -- 216, 217 points, 25,525. coming up in our 11:00 hour, dentist will be with us. investors fade to subscribe to his newsletter on markets he'll be here in the studio with free advice. 11 eastern. don't miss that. that's our price. that's it. [laughter] still ahead warren buffett's company made $29 billion extra thanks to the tax law. he's now sitting on a huge pile of cash. what's he going to do with it a buffett krit lick join us momentarily. plus, our live dem of the new samsung phone how does it stack up against the iphone 10? you will find out. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call for a free kohler nightlight toilet seat with consultation or visit kohlerwalkinbath.com for more info. >> i have breaking news from the supreme court and it is about those dreamers. ash. >> basically supreme court stuart is refusing to get involved in debate over the daca program last month. the district judge put on hold the effort to end the program on march 5th. so government the justice department decided rather than going through the appeals process go straight to the supreme court and say all right, give us a ruling on whether we can enforce the end of the daca program they said no this is going back to federal appeals court you have to go through the system so that's where we're at. the justice department tried to just go straight to the supreme court because thet to know they can ten force the end of the daca program on march 5th. they said no. so not quite sure where that leaves us. leaves us hanging is where we are. [laughter] yeah. we're still up 217 points for the dow by the way 25,527 we've gone straight up since the opening bell. which carries on last friday is very big rally. nicole petallides come in please what's this about high speed internet in the skies? >> right we're left hanging waiting for wi-fi more on the plane so many of us have been trying you know having wi-fi on the airplane can be a frustrating feet as you try to slice those credit cards to get better service. now there's a collaboration and a delta says they're very excited about this. this is delta airbus, two other u.s. satellite service company it is that are trying to improve the user experience for wi-fi in the air. delta already has a deal request go go we've talked about that. but this is all to eliminate the credit cards to cost sometimes you can swipe for $6to get better but i just got off the plane half of the plane ride no kcci wi-fi what's that i want it all of the time. smg i would love to have high speed internet but i don't to listen to anybody else for phone conversation. just simple as that. i think we all agree on that. nicole thank you very much indeed. now this, warren buffett got 29 billion dollars extra because of the trump tax cuts and he's sitting o on a $116 billion cash pile and now he's critical of the tax plan. even though he acknowledged it would be good for his company. he said in october, quote, we have a lot of businesses -- i don't think any of them are noncompetitive in the world because of the culprit tax rates so it wasn't enthusiastic about cutting that corporate tax rate but fox news wall street kind of guy james freeman what do you make of warren buffett not exactly a big fan. are you? >> i'm maybe i'm getting to be more of a fan i think you have to give him credit for saying it's this tax cut is u now a huge tail wind for american business now it is a little odd since he didn't think much of it before him. but you know he seems of to seen the light a bit and i give him credit for acknowledging how big it was this year in their results. this was not really a -- great year in terms of the operating results. but, obviously, that tax cut resulted in roughly a doubling almost a doubling of their earnings from last year. >> but he doesn't know what to do with it 116 billion he wants to make a big acquisition but nothing is cheap any longer. wonder if he would give bonuses to his people? hundreds of thousands of employees it shall 116 billion goes a long way to those employees. or o it could give it to the share hold percent maybe. you think he'll do either? >>he'll try to give it to shareholder that's the track record and it is despite how often he had talk about the immediate to raise taxes on other people he's been so successful in part because he's a great tax avoiding and a district without exposing to taxes so maybe -- and i think that -- it is interesting when he's sitting on this cash file for what it says to rest of us he's saying too expensive and i think assets are too expensive but saying that, a lot of bombs are too expensive because you look at where he's keeping money a lot of it is just very short-term and training bills. so he doesn't seem to have a whole lot of confidence in buying at these prices whether it's corporate stock or -- government bonds for example. >> got so much money don't know what to do with it. couldcould you o put it like tht over the years paid so little in taxes given that huge cash pile. we've learned earlier in 2005 although much richer than donald trump he paid a much lower income tax billion. so -- >> that's because he pays himself a relatively very, very small salary his wealth is accumulation of capital gains in his company which is not taxed. >> exactly. and i think it's great for shareholders, obviously, shareholders agree this is i think the money is definitely more wisely spent more officially allocated by warren buffett than by the federal government. but it is funny when you see his -- his occasional sermons on raising taxes on everybody else. you just have to keep in mind that he'll probably figure out a way with not to pay them. >> you've got it. thank you sir appreciate you being with us. check that majority again buzz we're up well other 200 points 25,258 is where we are and dow 30 show 29 stocks up, only one is down. what's that? >> ge -- yeah ge down she goes. well we're waiting for news from the white house, the president meets governors next hour. school safety big issue, we'll take you there when the president speaks. liberty mutual stood with me when i was too busy with the kids to get a repair estimate. i just snapped a photo and got an estimate in 24 hours. my insurance company definitely doesn't have that... you can leave worry behind when liberty stands with you™ liberty mutual insurance. at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. >> stew will be right back at the to of the hour but right now take a look at amazon and netflix hitting record highs right out of the gate on this monday morning. amazon up, 17 bucks at 15,018 a new record high. now this samsung galaxy s9 making day buy over the weekend that promises a better camera, stereosound and get this, an moughted emojis and what more could you want starring you. toms guide editor and chief mark is here. he's got one of these s9 on set for us mark physically looks same as s and what difference? >> i think biggest difference is camera are itself if you look at the device the design chant change bud giving you a full display and a lot of bees l around side to make the case that iphone ten followed their lead. and in this case it is really all about camera they said they reimagined camera and done that in better low light performance so leak if you're at a restaurant or bar you don't need to use flash but they're calling superslow-mo mode. now you have camera, 160 frames per second. and -- very cool. it is still sharp right so this is still hd picture. just gives you an example of what camera is capable of. so that's superslow-mo and other thing that people are talking about is what called ar immow ye so iphone 10 they have that, and with animals that's cute. kind of cute. but now you can actually turn yourself into an immow swree to see over my shoulder here if i go into messages pop -- so i did this with camera that captures your face and then it basically turns you into a 3d care ka orture of yourself. turn into the dennis, the neighbor of mr. wilson can you turn them into that? so sure at full screen mode. here's what some of them look like. it is cool. so cool. i think that's better than the apple panda beer or fox or whatever you want to be. so big question, though, mark is, cost. we know that the -- iphone x10 whatever you want to call it is about $1,000. how does this rate? >> if you go for galaxy s9 it starts 7.20 but the one people will want is s9 plus because it has dual camera but 840 so $160 cheaper. it depends on like what care orier because some charge more like verizon is charging more. so they're basically saying our network is worth more. >> great stuff. animated emoji what more could you ask for. thank you so much. great stuff stew will be baaing with his take at the top of the hour. . . . . stuart: is california part of the united states? of course it is. but it sure seems to be drifting away, doesn't it? and it is the leftist politicians who are driving this rift. three examples. number one, the mayor of oakland, democrat libby schaaf, warned illegals that the immigration service will be conducting raids. she shielded illegal immigrants from the federal government. not quite insurrection but certainly the open revolt of a state official against federal authority. you could argue that california, as a sanctuary state is itself, in revolt. second, changes in california's licensing policies for illegals. the state is making it much easier for them to vote. they're not supposed to but the rules and therefore the election itself can not be policed. and here is the real kicker, if illegals do vote and they are discovered, there is no penalty, none. yo realize what that means presidential ectionsill be easy to infectith countless illegal votes. third, california's democrat party headed way out to the left. look what happened at the state convention. senator fiber-optic steen, up for reelections, could not get the full support of the party. the left was upset about her limited support for illegals. that is a real no-no in california. this program has a very healthy audience in california. that suggests all is not entirely lost. it is also suggests there is a large bod i of opinion on the west coast that is shut out, stifled. that is not good because a clash is coming over illegals and sanctuaries and voting. california should not be pulling away from our constitutional republic. all voices should be heard. the second hour of "varney" of and company is about to begin. ♪ stuart: i have breaking news this morning. new home sales, what have we got. ashley: another disappointing number. it was disappointing in december. we dropped in december 9.3%. now in january, we're down again 7.8%. we hoped for better, 4%. 593,000 on an sewellizeed basis. four out of the last six months we've seen decline in new home sales. this is not a great remember. stuart: we should remember this is new homes. ashley: which is about 10% of the overall home sales. stuart: big number for realtors, this is existing homes. this is new homes. down quite sharply. not really affected market. we pulled back. we're now up just 200 points. up 203 at 25,500. fresh all-time highs for amazon. look at that! $1519 per share? netflix is at 293, both of them all-time highs. by the way, quick calculation, jeff bezos, founder of amazon is worth 124 and a half, don't forget the half, billion. price of oil where is that now? $63 a barrel. come on in keith fits. money map kind of guy, chief strategist. i will ask the same question i asked a lot of people this morning, seems this market on a monday morning just wants to to up. am i right? >> you are right, because there is a bright future. there is food numbers. there is -- good numbers, clever ceos. synchronized world growth first time in 20 years, even though rates are still rising and still low by historical answers. financial officers can invest for the future can make a profit. stuart: warren buffett with $116 billion in cash, he wants to spend it. to buy something. he says everything is too expensive. all assets are too expensive. isn't that kind of a warning that is the market is too expensive? >> no. and i'll tell you why not. because warren buffett, when he buys, does not buy like you and i do. he doesn't walk in 100 shares of microsoft for example, which this full disclosure i own and my family own. i want warrants, conditions, transactions, special terms. there is not available for his terminology and way of buying but there is something out there for the average investor. stuart: what about general electric? they will restate profits last couple years. look at it, below $14 a share. will this thing be around for much longer? >> i don't think so, stuart. i think this stock should be on death watch. it has been for a long time. retateing earnings retroactively, streamlining the board. you have still got profit pressure. don't forget the sec investigation into the role of mortgages in the subprime crisis. these are consistent with a moves of a company breaking itself off or cellaring chunks. i don't think the company will be with around. stuart: ge was the stock in the '80s, '90s, to certain degree early part of 2,000s. did you see this coming? >> yes i did. i got very, very worried. if everybody on one side the boat they think they know something it makes sense to look who is on the other side. the logical transaction, ge got two big for its britches. its management was not in control. it was playing buzzword bingo instead of posting real numbers. that bothered me. stuart: goldman sachs analysts that hedge fund don't like it. they don't want to own it. what is that all about? is that because apple is lodging the keys to their encryption devices in china? is that the problem? >> no. there's something far more mundane and sinister at play. i say this with a smile on my face with all the sarcasm i can muster. this is classic wall street head fake. i'm benching dimeses a dozen that bunch goldman traders want to acouple apple. hedge fund managers have been terrible last 10 years, but people think their geniuses. another side of the organization approximately wants to -- probably wants to gain shares. >> the stack gained 30 bucks since february, 30 bucks just like that. >> yep. stuart: would you buy it at 178, keith? >> my view apple has much longer term game. i'm very excited about their move into medical devices which i think potentially doubles the value of the stock from here, not within the next 12 months. maybe 24 at the outside. i'm also excited what they're doing in the cloud and ecosphere we talk a lot about. people still think this is a device company. it is not, about the cloud and big data, surrounding you with everything apple. stuart: just astonishing you keith, ge may be going away, apple may double as it gets into all kinds of industries. makes your head shake. keith, thank you very much. >> this is astounding, astounding exciting stuff. thank you, stuart. stuart: thank you very much indeed, sir see you soon. back to my editorial at top of the hour, i say leftist politics ruining california. case in point, dianne feinstein considered too moderate for the state party. doesn't earn its full endorsement. harlan hill, trump for president advisory board member joins us now. where am i going wrong here? i do sense that california just drifting away from us? >> oh, yeah. i mean there's, it is not just california though. there is a fight for the heart and soul of the democratic party. that is what we're seeing play out here and with the california democratic party's, you foe, basically betrayal of feinstein, we're seeing that play out in public. and what could happen is you could have unelectable progressive, socialist, democratic candidates take the lead in democratic primaries because there is a lack of cohesion in the party to back mainstream, viable candidates. and that's a mistake. if they nominate some crazy person, it could hurt the democrats chances in the midterms and in 2020. stuart: listen to this from vermont senator bernie sanders who has been campaigning. he slammed the gop tax plan over the weekend. roll that tape. >> what their program is the figure out how you can win when you have an agenda that benefits the very rich at the expense of everybody else. stuart: you know, harlan, i know something the audience doesn't know. you once supported him. >> i did. stuart: until trump came along, you were a bernie kind of guy. what were you thinking? >> first of all never be able to live that down but there is fundamental misunderstanding in the democratic party what issues are popular, something that made bernie sanders very attractive to me at first was his position on trade deals. what they mistook some of his popularity from blue-collar democrats, from union workers was that you know, they were on board the bernie train for some of these crazier things like raising taxes. they weren't. they were on board for some other issues tt ended up being issues that trump co-opted. the biggest issue in 2018 and 2020 is not going to be raising your taxes. that is not going to be a winning issue. if democrats try to go down that road it is going to be a bloodbath. stuart: but if the issue is free college, free medical care, that is much more attractive. >> i have said this for a while. unfortunately because republicans on the hill are unwilling or unable to solve this health care crisis in this country, then there is going to be a rush to socialist, progressive ideas. and so, you know, i wrote an op ed recently i think we're, 10, 15 years out being a credible push for socialized medicine in this country unfortunately. the government won't get out of the way of the free market to help lower costs f they don't, we continue to have a hodgepodge, middle-class americans continue to suffer, they will demand relief. these ideas being pushed by socialists like bernie sanders will become very attractive. stuart: i saw it happen in england many, many years ago. >> warning signs are there. stuart: harlan, thank you very much. one of the virtues of, ill you watch a lot of good television. for example, the u.s. men's curling team. they won the first-ever gold medal for that event. must have been a great moment for giving that medal. only problem it said women's curling on the medals. good thing someone noticed before they went home and they did notice. i was watching. that was pretty good. mayor of oakland, california, warning of impending i.c.e. raids. the president warns he could take the feds out of california all together. we'll cover that story. congress back to work today. a lot of talk of gun control but is it actually on the agenda? you're watching the second hour of "varney & company." ♪ hi, i'm mindy kearns. it's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call for a free kohler nightlight toilet seat with consultation or visit kohlerwalkinbath.com for more info. stuart: for the benefit of our radio listeners, i will tell you that the dow industrials are now up 186 points at 25,497. we have 27 of the 30 stocks in the dow up. only three of them, mcdonald's, walmart, ge are down. how about gun stocks? president trump and florida's governor are talking about raising the minimum age at which you can buy a gun. raising it to 21. that is what they're talking about. all gun stocks down quite significantly on that news this morning. now this. the mayor of oakland, california, libby schaaf, warning residents ahead of an i.c.e. raid over the weekend. oakland is a sanctuary city. joining us now is, retired whom said supervisor with the lapd. sal, this is an open revolt, isn't it? this is defiance of federal authority by a california city. what are you going to do about it? >> good morning, stuart. this is absolutely absurd. for the mayor to potentially release confidential information that may or may not be true. this is going to create panic in the city of oakland? oakland has one of the highest crime rates in california. are folks going to keep people out of schools? will they not go to work today? this destroys the relationship between federal agencies and the city of oakland. stuart: what can you do about it? >> well, we as community members and citizens, we have to fight, we have to stand up for this. i am not, i don't dig the sanctuary city bit here in california. you know i understand the policies of police officers not confronting individual based solely on their immigration status but where i have a problem, i know as a citizen, and other police officers, the major problem is, when we have persons in custody that are here illegally and they have been deported. for what we've reason are not, these folks are released back into the community whereas -- yes. stuart: isn't this just all about the hispanic vote? which is extremely important in california and largely decides almost all elections in california? you can not offend the hispanic vote and expect to get elected. that leaves california with a gigantic political problem, doesn't it? >> it really does. this is based solely on political issues, as far as getting the vote. but, i mean, there are so many, i mean there are some wonderful people out there. we know they're working individuals but we still have that criminal element. that is what we need to address. stuart: sal, i want to use your expertise to address this subject. the father of one of the students killed in the florida shoot something slamming the deputy who failed to enter the school as the shooting was taking place. roll tape, please. >> he worked there and he is a coward. he was, he stood by the door. i know it is a fact. he could have made it to the third floor and saved all six victims if he wasn't some little -- i can't even, words can't even describe the way i think about him. stuart: sal, you have expertise as ny -- i'm sorry as lapd homicide guy. seems to be a complete failure of law enforcement at that school on that occasion. what's your take on this? >> i mean there has been failures, as we see up and down the system, between the federals, fbi receiving this information and the school, you know, knowing what they knew about this individual. particularly the sheriff. i mean the sheriff, he is not taking any blame. these are his deputies. his deputies should be trained. these trainings have been going on since columbine. every department across the nation have conducted these training drills. for an individual to be on campus, to be armed, and to hear these gun shots, i just can't fathom that. i have children in school. for me to know there was an armed deputy outside, that listened and heard the gunfire and stood outside. that is unfathomable. if that was me, officers i know, they would have went in. you communicate, you identify the target and you engage that target, whether you are alone or with other individuals. stuart: so what do we do, sal? is it more training? do we make more clear exactly what happened at that shooting in florida? where do we go from here with this on the plate? >> i mean hopefully this is an eye-opener to other officers and other individuals. they have, you know, rethink, is this type of job that i want to do? i mean police officers, this is in their dna to approach and to go in harm's way. i mean for this individual, i mean he was definitely not cut out for the job. i hate to disparage other companies but this individual and, what we're hearing now, maybe several other deputies or police officers, that also stood outside the police department. what message does that send? i mean our children should be expected to come and go from school, being there to learn, not to worry about what is going to occur. stuart: well-said, sal, from l.a. we appreciate you being with us, sal. >> thank you, stuart. stuart: later this hour president trump meets with governors. school safety at top of the agenda. we'll bring it to you. you're watching second hour of "varney & company." mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. sure. momwhat's up, son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. stuart: still a healthy rally. not quite where we were. we're up 172 points at 25,485. now this for you. president trump and the president of mexico had a testy phone call conversation over the weekend about funding the wall. mexico's president reportedly canceled a trip to the white house as a result of that testy phone call. it happens as the next round of nafta negotiations is set to begin. jeff flock is with us. he is in illinois. jeff, i think you're, you're in farm country. i have to ask you, where are the farmers in this nafta negotiation? reporter: you know the farmers probably have benefited more from nafta than anybody else. if you change it around, some people are going to win, some people are going to lose. farmers can not catch a break at the moment. you see barges behind me? the illinois river is shut down to barge traffic. can't get the grain out because of flooding this time of year. not too good. the whole flooding business will pass but the nafta thing may not. what is happening because of the conflict to u.s. and mexico, mexico is looking elsewhere to buy its grain, specifically corn. shipments from brazil to mexico up almost 10 times in 2017 compared to the previous year. and you know, the u.s. is the biggest supplier corn to mexico. before, nafta, for example it, was a fairly small market, about 3.1 million metric tons a year. now we ship about 14.7 million metric tons to mexico each year. that is huge for farmers. it is huge for grain prices, specifically corn prices. if you look at the top 10 corn states, these are states that are trump states. eight out of the 10 voted for trump in the 2016 election. so you know, you start messing with that, you kind of get the farmers a little bit upset about it. so, they're watching this, i would say, stuart, very closely right now, how this comes out. stuart: i think you're right. it is third rail of politics in corn-producing states that went for trump. reporter: corn country. stuart: stuart: jeff, thanks a lot. see you soon. we have ivanka trump white house them at the closing ceremonies at the winter olympics. now the north wants to talk. we have more ahead. amazon, can't get away from the company, heading one after another all-time high, clearly the king of e-commerce. we got that. so who is number two? we're on it. ♪ ♪ stuart: wasn't quite sure where we were going with this one. that is "revolution." 10:30 eastern time. beatles monday. there you go, sports fans. we're up 150 points. not bad, we were up 200. we'll take 149, 148. how about the big techs? they're leading this monday morning rally. will you look at that! facebook $185 a share. amazon, 1515. apple did now at 177. big tech is leading this monday morning rally. now several companies that you see on your screen, they have severed ties with the nra in the wake of the school shooting in florida. howard kurtz is with us. he is the author of the book, "media mad necessary, donald trump, the press and the war oaf the truth. howard, welcome to show again. good to see you. >> thank you. stuart: do you think of the media's treatment of the nra has been fair in it instance? >> i don't think the nra has gotten good press from the media in two decades. there is simply no dispute about that at the same time, here you have a, boycott because they have corporate relationship and discounts with companies severing ties, you don't see any the press saying this is terrible or the nra shouldn't be blamed or boycotted for its political positions. stuart: how about the media's treatment of the officers who apparently did not go into the school in florida during the shooting itself, was the media fair with them? >> you know, it is so appalling and heartbreaking that, at least some of this carnage could have been prevented by the officers charged with doing that, that i don't have any problem with the press, you know, calling them out for essentially dereliction of duty. i don't have any sympathy for them. but just to circle back to the nra for one minute, stuart, the nra has really escalated rhetoric against the media. as you may know, dana loesch at the cpac gathering in nra-tv video accused the mainstream media loving mass shootings and feasting on them and glorifying them. i think that is offensive. the press needs to be fair to the nra. not nra prevented congress from acting on any gun control measures. it has so many dedicated, motivated, passionate members who are gun owners. at same time nobody likes to see this carnage. nobody likes to cover it. it doesn't necessarily boost ratings, because people are so turned off by the endless series of shootings here. i wanted to make that point. stuart: entirely right, howard. thank you very much for making that point. that is a fair point indeed. i am just trying to work out how we get to a position where these terrible events can be covered objectively by a media which generally skews a little bit to the left, if not to the far left? i don't think we're anywhere near that point at this stage? >> i mean especially issues like gun control, there is very little question that many journalists either quietly or quite overtly, you know, are in favor of some gun control measures. but what scrambled the decks here is president trump. president trump challenging the nra backed him strongly to some degree raising age from 18 to 21 to buying assault-style rifles like the ar-15. you have changes in conservative media. "new york post," rupert murdoch paper, conservative, pro-trump, series of front page headlines in favor of gun control. one began, mr. president, please act. pat robertson on christian broad catting network saying there is no reason to sell these kind of assault-style weapons. is i'm seeing changes here. i think president deserves more credit than he is getting from the press for putting gun control or a whole panoply of issues, mental health and so on, arming teachers in schools, a lot in the press don't agree with that at top of media radar, at top of the national agenda, knowing will happen, it will be like every other shooting, we'll see. president trump changed the conversation here. he is taking political risk to do so. i think he deserves some credit for the press for holding televised meetings. stuart: at the meeting at the white house last week, that was a real break in the way these things are handled. howard, thanks for joining us as always. >> thank you, stuart. stuart: look at amazon, please. we say this almost every time we're on the air. it has captured almost half of online spending and the stock has just gone straight up. come on in please, author of the book, "revive, how to transform traditional businesses into digital leaders." brian manning is cofounder of centric digital. and basically your company, brian, you tell people how to do well online, don't you? >> yeah, we work with traditional retailers, those going against amazon, figure out what to do better to compete against amazon. stuart: amazon is clearly the winner here. >> leading in retail. stuart: who is number two? >> in terms of revenue walmart sup there put they're not necessarily doing the best practices. stuart: what is wrong with their online selling website. >> you know, their main strategy over the last few years acquiring jet and some other brand. they haven't focused necessarily on their core website. i think they're starting to do that now. that is really we look for retailers to do, focus on the core experience and leverage. in the case of walmart, better leveraging their in-store experience. stuart: not just telling people how to sell more as a retailer online. that is not it. >> no. stuart: it is the whole image of the company as it appears online. >> it is everything. we have a library of digital best practices which we canvas from all sorts of industries to figure out what to do better. goes from how they operate in channels, how they operate their digital experience online, how they operate their digital experience even in the stores. there is lots of things that these retailers with physical presences can do to beat amazon. stuart: now, i read your stuff. you say that starbucks handles, is the best social media -- >> best mobile app. they really leverage mobile. stuart: what is so good bit? >> you an order online, or order through the app before you get to the store. pick up your coffee without waiting. payment is automatic. stuart: does it work? >> it does. stuart: i'm not a customer, so i don't know. i have to ask an objective question. it works? >> sure. many stores can use mobile to find product reviews or find product in the store. there is a lot of retailers with physical presence to have a better shopping experience. stuart: i take it your business is booming. >> we're doing well. stuart: because you're in the right place. brian, thanks for joining us. so so short. busy news day. >> no worries. stuart: ivanka trump made a big splash at the olympics, and north cree says it is willing to have talks. ral peters is here, strategic analyst. do you think there is thaw between north korea, south korea, and united states, will anything come of it. >> there is definitely a thaw between north korea and south korea, unfortunately the slush and muck is getting all over us. we underestimated the north koreans. when they did their pivot to a charm offensive last autumn, we didn't see how powerful it was going to be. now the north koreans have done two things successfully. they have driven a wedge between us and the south. not yet a deep, profound wedge, but an important one. secondly they bought time. their sudden offer to talk to us, is another effort to buy time. because what kim jong-un desperately needs time to finish nuclear and missile programs. meanwhile they continue to move a step ahead of us at all times. so i will say -- stuart: doesn't need to launch some missiles? doesn't need to do a couple of underground tests to refine the product so to speak and he is not doing that? as long as these talks is going on, he will not do it otherwise everybody walk as -- walks away. >> settlement of missiles and new technology continues. when they are more wired we will see the tests. on positive side we did impose on friday additional sanctions on specific shipping companies, trading partners, because there are real signs the sanctions are deeply, seriously hurting north korea. stuart: what signs are they? >> the first sign i saw, was, there is really biting was earlier this month north korea held one of its massive military parades but this time you saw tens of thousands of marching troops. you didn't see the big parade of heavy metal. that told me that fuel supplies are so low that the military would have had to dip into war-time reserve stocks to stage the big parade and they certainly did not want to do that. with our sanctions there is question how they will be implemented. we have to be bold or implementation means nothing and the big gap, if you look at that list of sang shunned companies and ships, et cetera, no russian entities are on it. the russians are becoming worst violators of sanctions in the region. stuart: what do you make of china president xi will no longer be bound by term limits? in other words he can stay as the strong man as long as he likes? what do you make of that? >> you have that with vladmir putin although the sham of elections continues and we're seeing, so many of us thought after 199, 1991 that freedom and democracy would break out all over, we're sayings extremely, extraordinarily dangerous, near-global return to ought tock crow sy and outright dictatorship. time for to us be really, really alarmed. they are not our friends. stuart: got it. ralph, thanks for joining us. >> thank you, stuart. stuart: coming up california's democrat party going so far out to the left senator feinstein can't get the state party's endorsement pause she's too moderate. we'll bring you the story. president trump meeting with governors, school safety the top of the agenda. we'll bring you whatever happens at that meeting, you will hear about it on this program. more "varney" coming up for you. ♪ but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ jo in the last hour, white house principle deputy press secretary raj shah told us what president trump is working on in the wake of the park land, florida, school shooting. >> we're looking at school safety as holistic issue. we're talking about hardening things with teachers and employees with access on campus. trained individuals could deter attacks. he talked about and actually ordered the department of justice to pursue a rule would band the sale of new bump stocks. the president is looking at this from several angles. we believe that the best approach is to find a way in which we can prevent individuals who are troubled or dangerous from acquiring any weapon, rather than banning whole classes of weapons for all individuals. ♪ cehotels.com badda book. badda boom. this year, we're taking it up a notch. so in this commercial we see two travelers at a comfort inn with a glow around them, so people watching will be like, "wow, maybe i'll glow too if i book direct at choicehotels.com". who glows? just say, badda book. badda boom. nobody glows. he gets it. always the lowest price, guaranteed. book now at choicehotels.com exa new, seven 1/2-year low for general electric. will restate financial results for 2016 and 2017. barely at $14 a share. >> boeing getting 51% stake in brazilian airplane maker, embraer. boeings has been on a tear, more than doubling in the past year. 360 almost right now. congress back in session today. want to talk about control, gun control expected. will anything actually get done, any serious new gun control measure. jason chaffetz, former utah congressman joining me now. any actual law likely to come out of congress. >> they can do is "fix nics," the national background system. this is coupled with reciprocity bill i'm sure the senate will take up. how the background checks work in strengthening something the gun lobby supports, shooting sports foundation, "fix nics".org there, is website. broad by partisan support on cons spores from the senate on both sides of the aisle, that ising something they should do. you have to populate the database in order to make sure people who can't distinguish right from wrong to get guns. stuart: this has something to do with mentally unstable people in the application process and background process, right? >> it twice things. mentally, people that can't distinguish right from wrong. they have to actually prosecute. i wrote on fox news. com, an op-ed you have to prosecute on local and national level. when someone visits the kid more than 30 times and putting supposedly an allegation to somebody's head, somebody has to prosecute him. if they don't prosecute him. he will not be in the database. if he doesn't get in the database he can get a gun. stuart: a mere complaint doesn't go into the database. >> no. stuart: you have to prosecute before it goes into the database. >> you have to actually prosecute. stuart: you're expanding the database to all kind of allegations which may or may not be proven. isn't that a problem? >> there is a problem. they should explore the idea of a temporary restraining order. somebody can go to a court. if a school administrator goes to the length of kicking somebody out of school, and then person has 30 visits by the local cops, shouldn't authorities go before a judge and adjudicate that? he can provide a defense. for the next two years you will not be able to purchase a gun. stuart: that would be easy. would you think that would be okay. >> again you don't have prosecutions. the feds don't do it. eight years in a row under president obama gun prosecutions declined, eight years in a row. at the local level, there is such trepidation about prosecuting somebody who is just getting out of high school. there shouldn't be. should be the opposite. we better identify these people deal with them now. not just kick them to the curb, not just throw them in jail. they have to be dealt with. stuart: this is one thing which actually, probably -- >> already passed out of the house. come on, senate. let's get this one done. john cornyn is leading from the republicans. i can't remember who the democratic cosponsor is. they have to fix it. one thing the sports foundation, one who profits and sell guns actually supports as well. stuart: senator dianne feinstein did not get the full endorsement of the california democrat party. you're smiling. >> that is the problem, she is too moderate. california is its own planet. stuart: separate country. >> it really is in many regards. democrats are void of leadership. they don't offer any new ideas. i think that will be the premise on which they're trying to win elections across the country and, california is leading the way in showing how radical left the party actually has become. stuart: do you get the impression that really is not quite the same as the rest of america? i do. >> i was born there. i lived there for a while. i go back and visit every once in a while. when you want to go to the circus or zoo you go to california. stuart: you were born in california. >> yeah i was. stuart: i got my first job in television in san francisco, like 1977, something like that. totally different time. >> my dad was on television. he was a sports broadcaster in san jose. stuart: was he now? >> hanell 11. stuart: in 1970s? >> '60s. stuart: see i'm not that old. jason, thanks for joining us. appreciate it very much. not going to cough. didn't do it. ashley: no more. [laughter]. stuart: off the morning high but still, kind of feels like this market wants to go up, doesn't it? dennis gartman, his letter is read by anybody who is anybody on wall street. he will till us what to expect. that is in the next hour. ♪ so, from the two trucks over here... i want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. cool. but before you decide, you should know that chevy silverado's are the most dependable, longest lasting full-size pickups on the road. which means that ford f-150s are not. (laughs) which truck would you pick? the chevy. the chevy. the chevy. there you go. boom. that was obvious. plus it looks cooler. no doubt about it. now they know what to get me. (laughs) stuart: for some people this was a real bombshell. apple is going to store very sensitive encryption keys in china. you want to explain this? ashley: yeah, chinese customers of apple's icloud servers, a, they have to be transferred to a local partner service. apple will not be operating them. they have to keep the all-important key, the code key, if you like to those accounts and keep them in china, which is raising all sorts of red flags because people say, wait a minute, now all of sudden these chinese customers of apple who use the cloud could be accessed by chinese government officials who we know, if you say anything that is even considered critical, then all of a sudden the chinese government can come in and clamp down on you. these are new data rules china imposed you have to get in the game and can't do business in china. that is disturbing for apple. microsoft and google have to partner with local server operators but unclear if they have to have their codes available in china. bottom line, not easy to do business, you have it final step when it comes to privacy, very difficult to know what the right thing to do. china is the second biggest market for apple. stuart: that is not good. ashley: not good. stuart: all right. venezuela, a new low. what now, liz? liz: thousands of oil industry workers are either not showing up or walking off of the jobs because they are too weak to do the heavy labor on the drilling platforms and in the refineries. some of them have not eaten protein in months. average weight loss in venezuela, 25 pounds according to three universities there for entire population. you're seeing the oil sector, which is what venezuela thrives on, that is its whole economy, it is cut in half. it is half the levels it was in the 1990s. this is once was the richest country in south america. now it is the weakest. as the trump administration moves to blockade or put an embargo on venezuelan oil that will be utter collapse for the socialist dictatorship. it has gotten so bad, creditors are seizing venezuelan oil ships in the caribbean, according to "washington post," to pay their bills. venezuela are moving in to take venezuela oil in transit for sail. quite a situation. stuart: leadership will take to the bunker anytime soon. i can see it a mile off. president trump meets with governors. he is doing it right now. school safety, top of the agenda. we'll bring you any developments as they occur. more "varney" after this. . . whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. >> it's been apparent for years, now it's obvious, the democrats are the party of the rich. this, of course, is a complete reversal back in the day republicans gathered in the country clubs and the democrats in the union halls, that is not true these days. you could see it very quickly in the last election when working people went heavily for donald trump. the coastal elites went for hillary. money voted left. now, look at the run-up to the election this is year. the wall street journal counts 40 primaries dominated by very wealthy democrat candidates. they won't all beat middle-class opponents but it's clear the left is now, well, rich. jp, front runner among democrats in illinois governor's race. he's an heir. i've been fighting for progressive democratic senior high -- values my whole life, does he feel a thousand dollar bonuses are crumbs, that may be called for sarcasm but any democrat with a few bucks will face that challenge after nancy pelosi's crumb excellent. in pennsylvania scott wallace is running for congress just outside philly, member of patriotic millionaire's group, living out of south africa. i reject the silver spoon allegations. democrat primary in maine involves lucas saint claire, the mom sold the birds bees cosmetics, good for him and good for her but interesting that the heirs to capitalist fortunes should enter politics as leftists. the political world has been turned upside down by donald trump, it was going on for years before he came along but he rebelled in his wealth, loved it and we wanted to spread it, not by taxing the rich, but by encouraging growth. my question is this, how long will ranking file democrats stick with their wealthy leaders, there's nothing getting rich and into politics but everything wrong with politicians being out of touch, the third hour of varney & company is about to begin. ♪ ♪ stuart: happening this hour, president trump meets with the nations governor as at the white house as we speak, in fact, they will be talk about guns an school safety, also talking about trade, he call it is world trade organization a catastrophe, we will by you the video from that meeting as soon as we lay our hands on it. also supreme court wrapping arguments on a supreme court where a -- whether government employees can be fired for refuse to go pay dues. the lawyer representing the plaintiff in that case, he will join us on the program. check that big board in the dow 30, we've got -- how many is that? 25, i can't see. 25 of the dow 30 are in the green. 24 up, six down. look who is here actually sitting next to me in the studio. the man himself, denise gardner, he's not coming too close to me because he's sick, the letter. >> you guys will apparently let anybody on the show. [laughter] stuart: here we go. back for a week off and we got you on the show. >> what a terrible homecoming to deal with me. stuart: let's get on with this, i say the market has the feel that it wants to go up, you say? >> i had been wrong for the last two and a half weeks, friday's action globally caused me to say, you know, i'm wrong and i've gone to the sidelines, i'm actually in my own account slightly, slightly net long, markets wanting to higher. i have to face that fact, as old turkey in reminiscence as stock operator it is a bull market. stuart: a man who comes on the show and says, i was wrong. >> i was wrong. >> stuart: for two and a half week i was wrong. >> the important thing of trading is admit that you're wrong when you're wrong and not to do more of that which you're wrong. >> stuart: are we going to challenge those old highs in january? >> has the look to it, doesn't it? every time you stand in the way, it takes you out and makes you law school foolish. the only thing that bothers, the breaks occur on larger volume. that's not good bull market should act and that's bothersome for me most of the time. right now i stood in the way two and a half weeks and i said, that's enough. i had the bond market rights, the gold right, the foreign exchange markets correct, i even had crude oil correct but i embarrassed myself in the stock market. stuart: what a guy. come back any time you like. [laughter] >> one might as well one is wrong. stuart: one might as well, i have done it so times myself but not admitted. amazon on the screen right now, what do you make of this company, what do you make of the stock? >> i have not owned it, i have decried it for years, i have -- i won't own it here. other people have made millions of dollars upon -- and it's been an extraordinary company, it has has revitalized business but it's too high to buy it. brilliant idea, amazing, here is the wealthiest man in the world and he will get wealthier. stuart: you won't touch it? >> i won't touch it. stuart: too expensive? >> plus it's high-tech. i'm an old guy. i have wonderful commentary that makes sense for fellows my age. i want to own the things that if i dropped them on my foot will hurt. i want to own steel, railroad, ships, i want to own the things that i can count that if i can drop them on my foot, they hurt. software doesn't hurt. i i don't understand it. stuart: i'm old -- than you. i'm a microsoft guy. i have owned microsoft for 20 years, i have run the thing up. still in it. >> good for you. stuart: how many times admitting totally wrong on the program. >> ask me another question and we can try another shot. stuart: interest rates, they put market rates. interest rates have calmed down. 284 ten-year treasury yield, 284 right now. >> it was 296 sometime last week. stuart: that's right, that's good for stocks. >> the problem is a year from now we will not look at 284, not 384, i wouldn't be surprised if we are above 4%, rates wanting to higher and shall go higher. bear market in bonds begin in september, august, september of 2016, it's been a bear market now for year and a half. the 35-year bull market in bond market which did a great wife for my wife and i, all we did was buy scrip coupons 15 to 20 years ago and i think that has ended and we are in a bear market for bonds and the feds will continue to tighten. that's indicate indicative of dr planned equipment and labor. stuart: good signs? >> not a bad sign. the problem shall be if the federal reserve bank makes a mistake and takes the yield curve to inversion and then you have a real problem. i hope that they are wise enough this time not to take the yield curve to inverted position. stuart: all right, denise, three times you admitted he's wrong in three minutes. >> have to be new record. stuart: you're all right. [laughter] stuart: thank you, denise. >> it's been my honor. stuart: i say the democrats are the party of the rich. i want to bring in dan mitchell, the center for freedom and prosperity. are you going to take me on, dan, am i totally wrong or what? >> you're right, the democrats are the party of the rich, but there are two things to keep in mind, first with regards to elections political scientists find that money doesn't make that much difference, you need to get a threshold amount of money to get name known but beyond that, spending more money is good for political consultants and lines their pockets, doesn't necessarily help you win elections, but the other thing, i think the focus of the interview here is you look at the democratic party, it's become in effect california, a lot of rich people at the top and a ton of poor people in the to bottom, foot soldiers who provide the votes and the question going to 2018 and 2020 is that a recipe for women? stuart: answer the question, it seems like the leadership is really divorced from the ranking file, there's a complete separation here especially if you look as you say at california, answer your question, is it a good strategy going into the november elections to have your party leadership uber rich and apparently out of touch with ordinary working people? is it just not what you expect from democrats. >> well, you can take a nancy pelosi-type person who is a multimillionaire and doesn't have any contact with poor people except when they come to here her luxury condos or something like that. there's very much of a transactional deal, we give you income distribution, you vote for us, we won't let you live in neighborhoods but that seems to work and in 2018 midterm election and we have seen democrats are cleaning up on these bielections, special elections in state legislatures and stuff like that, so 2018 is probably good year for democrats, but in the long run, if you wind up creating at large for the country where your entire economy is fragile and based on a few people paying higher taxes, i don't think that works well. stuart: very short, full news day. we appreciate you being was. come and see us again. >> thank you. stuart: citigroup says it's going to refund $335 million to some of its credit card customers. the bank had increased annual percentage rates on cards after customers missed payments but federal law requires companies to review those accounts every six months. citi failed to do that, the average refund will be about $190 per customer. and check out ge, again, this is now a 7 and a half, 8-year low, pretty close, briefly dropped below $14 a share, they will restate all their financial results for the past two years, investors don't like that. democrats in orange county, california, hope to go flip the district from red to blue, remember, orange county once had california highest percentage of registered republicans, we will talk to rnc about that. and the supreme court is hearing arguments in the case of whether public sector unions can require workers to pay a fee even if those workers opt out of the union. very soon will be joined by the lawyer representing the plaintiff in that case and president trump right now meeting with state governors, we expect to hear from him any moment and when we do, you will hear it too. you're watching the third hour of varney & company. stuart: dreadful and dangerous weather in midwest over the weekend, five people dead after heavy rains and tornadoes hit the central part of the country. widespread flooding from the gulf coast all the way to great lakes, rivers in the whole region risk of overflowing and more rain is forecast for tomorrow and into wednesday as well. just look at those pictures. politics, democrats in orange county, california, hope to go flip the district from red to blue. this is a long-time republican stronghold, kaley is with us, rnc spokesperson, kaley, when i first came to america, orange county to america was the watch worth for republican domination and now it's on the verge of flip to go democrats, what are you going to do about that? >> democrats said it was on the verge in 2016 and it didn't happen. we are confident here, here is one of the reasons, stuart, california has odd system called top tier primary system, instead of nominating republican or democrat, the top two proceed to general election, right now there are 33 democratic candidates in orange county, much fewer republican candidates by a long shot, so the dcc, the d triple c says we see scenario that two republicans could be battling it out and that's democrats admitting that. i know it's kind of hard to wrap your head around but we are confident. stuart: i understand that but i don't understand how an orange county could go so far from being a stronghold of republicanism now to be on the verge of flipping to the democrats. give me 30 seconds on why on earth this has happened? >> well, we have seen a lot of activism in california that is kind of overtaken that state, let's remember it's a sanctuary state now so california has been creeping left, but we are fighting hard to keep it republican and keep it red but in part by doing so exposing the liberalism that is there. you have -- this is remarkable, the california democratic party this weekend refusing to endorse dianne feinstein because she's not liberal enough. we are seeing a state that's lunched left but we are trying to pull back to the center, we need common sense conservatives here. stuart: there was a left, bernie sanders campaigning in michigan, listen to what he had to say. >> will raise the deficit by $1.4 trillion, tax breaks for the rich, then you go to american people, oh, my god, the deficit is going up, we have to cut social security, medicare, medicaid. stuart: he's offering like he wants free college, free medical care, you can say, that's out of the question, you know, that could be very attractive to a lot of people in america. >> yeah, i don't think so, here is why, stuart, the american people are experiencing pay raises because of tax cuts and he's going michigan and i will tell you right now, this is new news for internal polling at the rnc that in michigan we have seen a 7 point net increase in favorability of tax cuts, iowa 12 points spreads between people thinking that tax cuts will benefit them, that's where bernie sanders is going next and in wisconsin, we see a 5-point margin and people think it's going to benefit them. those are the state that is bernie sanders is hitting. he won't have much success because people are experiencing capitalism in paycheck. stuart: i want those numbers, you broke news for us, kaley, thank you, we want them. thanks very much, we will see you soon. >> thanks, stuart. stuart: i'm getting headlines in from the president's meeting, mr. trump called the law enforcement response to the shooting a disgrace, that's a direct quote, he says he will ban bump stocks himself if congress doesn't do it and put them in a category with machine guns. he also says if the nra is not with you, you have to fight them once in a while. okay, rough headlines. i don't know how you equate a bump stock item with a machine gun and that headline apparently did that, but, look, we are getting the headlines. liz: turns a regular gun into a rapid fire gun. stuart: okay. he says, look f congress won't knock it off, bump stocks out, he will. >> you wonder what he can do by executive order. stuart: now we have dropbox, file-sharing company, they are going public, biggest since snap last spring, dropbook took in $1.1 billion in revenue, 5 million people use it but only 11 million pay to use the service, but it's going public sometime i think this year. the black panther movie continue to go pull record crowds, it made 108 million over this weekend, it's only the fourth film to make 100 million in second weekend, worldwide it's on pace to take more than a billion. disney stock right now is back to $108 a share. it's a disney movie. check this out, a job application from steve jobs on auction block next month, 1973, three years before he cofounded apple, how much would you pay for it? more on that in a moment and president trump right now meeting with state governors, we expect to hear more from him any moment and when you do you'll hear it. look at the bottom-right-hand corner, dow is up 238. you're watching the third hour of varney & company. ♪ ♪ when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. stuart: well, let me bring this to your attention, ladies and gentlemen, the dow is now up 243 points, that's about 1%, again, 25,550, where is this rally concentrated? i will tell you, it's the big tech stocks all over again. all five of them, the big techs on the upside, very significantly, facebook, 184, amazon up a dollar, alphabet, 6, $7 higher, apple at 178, that, folks, is a rally. speaking of apple, job application from steve jobs gets auctioned off next month, it's from 1973. the application is for a job at reed college in oregon, don't know what job it was for. [laughter] stuart: what he was plying for but the job application, how much do you think that will go for at auction? any guess? $50,000. >> amazing. stuart: amateur astronomer captures the photo of stars that begin to explode, víctor buso in argentina, september 16 -- 2016, berkeley claims buso is the only known person ever to take a photo of the flash of light produced by exploding star. there it is. >> god, it's gorgeous. stuart: how much do you charge for that? mortgage four-year high, tied in with this nugget, two-thirds of house hunters have been searching for more than three months. this is a seller's market, more on that in just a moment. >> interesting. stuart: supreme court heard arguments in the case of public sector unions can require work toaster pay a fee even if workers opt out of union. next up the lawyers representing the case, he joins us from the steps of the supreme court. this new day looks nothing like yesterday. trails are covered. paths aren't what they used to be. roads nowhere to be found. ( ♪ ) and it's exactly what you're looking for. ( ♪ ) stuart: let me draw your attention to this again, it's a very nice rally, up 1% and we've got 26 of the dow 30 in the green there. up, the dow gains 240 points. now this, the supreme court heard arguments this morning in the case of a public sector employee who did not want to pay a union fee. joining us now is the lawyer who made the argument on behalf of the plaintiff, william messenger from the right to work legal defense foundation. sir, have i got this right, the guy is a union member, he's forced to pay dues which contribute to politics that he doesn't like, he wants to opt out, and you represented him, is that what's happening? >> yes, i represented mr. mark janice whose court case was heard before u.s. supreme court. stuart: so what's your argument? >> i'm sorry? stuart: there's background noise, i understand. what is your argument in is this principled argument that no one should be force today pay for politics they don't like, is that your argument? >> the court just heard argument and there was definitely the question of whether or not mr. janice could be forced to pay for union and political speech, collective bargaining with the government and so the justices are hopefully receptive to that argument. stuart: what's the other side of the fence, what are they saying? if you join the union you have to pay dues and that doesn't matter you the money goes, is that the other side of the fence? >> i'm sorry, i can't make out. there's a concert going on right next to my head in favor of mark janice, a rally on his favor which is very nice but the music is quite loud and i can't make out a thing you're saying. [laughter] stuart: we understand, we thank you very much for going through it with us, we appreciate it, i can understand you don't hear a word we are saying, you are off the hook, you are off the hook, thank you very much, indeed. just happens that judge andrew napolitano standing by. >> the union's argument is that since the -- everybody that works from the government benefits from collective bargaining, they shouldn't get the benefit for free. that has been the argument since collective bargaining began about 100 years ago. his argument, the first amendment guaranties freedom of association and also freedom not to associate and you can't force me or in his case his client to associate with the union when he doesn't want to. the last time the court ruled on this it was a 4-4 tied. justice scalia had just died and been replaced by justice gorsuch who is more likely to be on the side of the gentleman here that the first amendment trumps the state's interest in having collective bargaining, representatives represent everyone. stuart: follow through this for a second, repercussions, supposing the court finds in favor of the plaintiff, you can't make this guy pay, that really is a real problem for public sockettor union? >> a real problem for democrats because they are heavy contributors of democrats and if government employees, teachers, state and county and local workers know that they don't have to join the union and they will still get the benefit of the collective bargaining, they'll leave the union in droves that will diminish substantially the cash that the unions have available to contribute to democratic mr. president call -- stuart: they left in droves. >> yes, the argument will be, whoa, we are negotiating on your behalf, you are getting a benefit from us and you're not paying for benefit. well, the court is going to have to deal with that. stuart: okay, our guest william messenger on the steps to have supreme court has gotten rid of the noise, he couldn't hear me and he's laughing because he can hear me, that's right. sir, what -- just make your case in a nutshell, please. >> when a union collective bargains with the government is political speech and, of course, under the first amendment no individual can be force today support speech to lobby the government and so if collective bargaining with the government is lobbying, it necessarily follows unconstitutional to force mr. janice and other employees to pay for it. stuart: the other side of the coin is if you want the benefits of collective bargaining, you better pay the dues and better join the club, that's it, isn't it? >> well, that assume that is collective bargaining is, in fact, a benefit but the first amendment reserves the individual to decide what advocacy is beneficial to them so if an individual decides that he doesn't think union advocacy is in best interest, he has a first amendment right not to support it but the government can't decide for each individual what speech is beneficial and what is not. that's something the first amendment reserves to the individual. stuart: if the court finds in favor of you and plaintiff client, then the repercussions will be serious certainly for democrats and for government sector unions across the board, but my question, last question to you, sir, is this, when do you expect a ruling? >> my guess would be in june, usually the supreme court releases all of its argument before it goes on summer break at the end of june so i would expect at the time. stuart: thank you very much for soldiering on, sir, we are obliged to you. >> thank you for patience. stuart: i can hear it. thanks for being with us. thank you. the supreme court will not hear the president's bid to end immediately the daca program and the judge is here on that. okay, let me straighten this out. the supreme court said we are not taking this case. it stands where it is at a lower level which means what? >> there are two cases one in brooklyn, new york, one in san francisco, california, in each case a federal judge has prevented the trump administration from interfering with the daca program as it stands but has said, you don't have to take applications for new people, so the 800,000 daca people that are protected and are here can apply for reprotection and the trump administration must process those applications in accordance with daca program because justice department filed appeal in wrong court. they assumed this was going to go to supreme court anyway and so they filed directly from the trial court to supreme court bypassing the intermediate appellate court, go back to intermediate court. this actually is a serious blow to the president because this takes away a bargaining chip that he was using, come march fifth, i can start deporting these people, he can't. stuart: okay, got it. judge, thank you very much for standing in there on two cases. >> happy to. stuart: lets get the housing. a lot of inventory in -- there's not that many homes for sale, actually. bob massie is with us, he's host of property man and knows this kind of thing. can i summarize across the board throughout the united states is a seller's market; is that right? >> it's a seller's market, stuart, there's not a lot of inventory and the thing that's very troubling to me is that you have young couples with families who want to buy a house and because of the fact that there's not a lot of inventory here come the investors and so this young family who may be able to qualify for a loan for $300,000 on a house that may only be worth 300, there's a bidding war and these investors have cash and they come in and they outbit the family that wants to buy a home for family and they are out and as a result you can't find the proper home because the investors are up and rising. stuart: there's not much you can do about it, you can't suddenly build a whole bunch of houses, a whole bunch houses available for sale, you simply can't do that and actually, bob, seems to me that the problem is compounded by mortgage rates themselves, we are well above 4% now, four-year high or something like that, that doesn't help, does it? >> no, of course, the rise of interest rates doesn't help but honestly families who want to buy a home, not that they like the rise in interest but they'll deal with it if they could fit it, of course, in their budget. the other thing, stuart, that's of concern, you and i talked several months ago and it's starting in las vegas, a lot of low modifications are maturing, we have nod's, notice of defaults are going out, these people that were paying $1,200 a month for of interest for the last five years or ten years, now it's converting to 26, $2,800 a month, now you're going to see in different spotses of the country a rise in foreclosures which, again, welcomes the investor to come in and buy, creating rental property for people, as to housing, if you don't go vertical and build, it's not inventory and that's a problem. stuart: that is a problem, indeed. bob, sorry to cut it short. we appreciate you always being with us, thank you, bob. >> and i appreciate you, stuart, thank you. stuart: okay, nice to be back. [laughter] stuart: the mayor of oakland schaaf made headlines when she said she would go to jail to defend sanctuary city status, this time she warned illegals that the immigration service, ice, would be con conducting raids, told them in advance. more on that in a moment. and president trump right now meeting with state governors, the governor of washington jay told the president that he needs to tweet less and listen more. he also said, teachers don't want to carry guns, sounds like drama at the white house when we have the tape we will play it for you. stay there, please most people come to la with big dreams... we came with big appetites. with expedia one click gives you access to discounts on thousands of hotels, cars and things to do. like the bicycle hotel & casino for 30% off. everything you need to go. expedia nicole: i'm nicole petallides with your fox business brief. turns out wearables are hot for apple, so much so that one analysts says there's more to come. right now we are seeing apple up 2%, apple airpods may soon be getting a sibling according to analysts, this would be over the ear headphone product and won't be out before third quarter of 2018 but it'll be an all design over the ear according to analysts, also airpods if ear buds will get significant upgrades, big picture, cfo say that is wearables are the second largest contributor to revenue growth after the iphone which is impressive. he said that on the latest conference call with the analyst earlier this month. ♪ whoooo. when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. sometimes, they just drop in. obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ stuart: california lawmaker wants to give residents a second chance at getting their driver's license photo right. there's a bill that would allow drivers to take multiple photos at the dmv if they do not like the first one. driver can then choose which photo they want. you'll have to pay an undetermined fee for that choice. the money would go to driver's educational programs in new jersey they give you a choice, which one you do you like, no fee. great place, new jersey. [laughter] stuart: let's go to california again, democrat mayor of oakland warning residents about impending ice raid over the weekend, joining us now john, law professor at uc best of my recollectionly and former doj attorney. sir u what's the legally of this, it's like a state official defying the authority of the feds, what's going on? >> i agree, stuart, federal officials have a right to enforce federal law. state officials don't have to help them, there's nothing in the constitution that requires a state officer to help the federal government, but a state officer can't impede them and they have to be very careful because the more they try to prevent federal officers from doing their job, the closer they are coming to the federal crime of obstruction of justice. stuart: this is all about the hispanic vote, all about politics, isn't it? >> i think so. i think that, of course, in california the hispanic vote is a very large part but not just hispanics, it's also asians and other immigrant groups and they want to see emigrants treated fairly even though their citizens and even though they went through the immigration process properly. stuart: do you think that immigrants in california are being treated fairly? >> i think the most important thing is that federal immigration law has to be enforced the same way throughout the country. after all, that's what we fought the civil war over, was that all parts of the country have to obey federal law. now, the state of california they can and even if the university where i work, they don't have to help federal officers locate immigrants who are here illegally, they don't have to enforce federal law but they can't stand in the way and preventing the government from doing its job either. if federal immigration enforces constitution core responsibilities that are given to federal government. stuart: do the feds, if the mayor of oakland is standing in the doorway, no, you can't do this and taking steps to stop the fed what is federal law, can that mayor be arrested? >> i think that's obstruction of justice. i think if a state officer stands between a federal officer and someone who is a legitimate target of federal law enforcement, that's illegal. to flip it around, the equities of this, that's just like a southern governor standing in the doorway of a school district trying to prevent desegregation after brown versus board of education. stuart: president trump is considering pulling ice agents out of california, what's your take on that? [laughter] >> , well, you know, a relationship between president trump and california, it's like a bad marriage but you can't get divorce, you can't actually kick california out of the union. president trump, you know, i can see why he's frustrated with us and why he would say, if you don't want our help, i am leaving, but you have to enforce federal law in california just like enforce everywhere else in the country. i have to say president obama and the obama administration tried something like that and i think it was bad for the state, california, for example, if you remember, legalized, colorado legalized marijuana, president obama said we are not going to enforce the drug laws very strictly in those states, i think that was a terrible thing for law enforcement, i hope president trump doesn't make the same mistake. stuart: john, i feel like california is a different country, i just feel that way sometimes and i'm sure maybe you do too since you live there. thanks for joining us, sir. much oblige to you. >> thank you. stuart: samsung debuting answer to iphone 10. it's the galaxy s9, the phone has super slow mode video, a low light camera and 3d emojis of themselves by taking a selfie. can't wait. the face model will cost 720 bucks, the ul -- fully up grated for $820, wal-mart, stock got pounded last week after revealing disappointing online sales and now pulling back investment in jet.com, online website and the stock is down a bit, 18 cents lower, back down to 92 on wal-mart. look at apple, it says it'll start keeping security data for its china base customers in china as opposed to here in the united states, no impact on the stock which is up three bucks at 178. the federal government is reportedly keeping sound information on more than a quarter million employees secret and our next guest wants that information to be made public and, of course, we are waiting to here directly from the president who is meeting governors in the white house, we will be back with more after this. at holiday inn express, we can't guarantee that you'll be able to contain yourself at our breakfast bar. morning, egg white omelet. sup lady bacon! fruit, there it is! but we can guarantee that you'll get the best price when you book with us. holiday inn express. be the readiest. oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. stuart: our guest says the government is keeping salary information on more than a quarter million employees secret and he wants the information to be made public, adam is with us, i'm sorry, i probably mangled the name, adam, but we will proceed from there. you are the founder and coo of open the books and you're telling me that if i want to know how much the officials at the epa, for example, how much they make, you can't tell me, the government keeps it secret; is that right? >> well, stuart, thanks for your interest in our work. over the course of the last 11 years since 2007 we requested and posted online at open the books.com the federal payroll, who and what agency by job title makes how much on salary and bonus and we got a big purr price this area when we requested the record this year, redacted from payroll was 255,000 federal bureaucrats, paper pushing bureaucrat agencies, one in five bureaucrats, salaries are now redacted and we estimate that the total payroll funded by the american taxpayer now hidden in the swamp is $20 billion. stuart: was this always a secret or is it just now that they've redacted these two 200,000 salaries? >> classic case protecting the bureaucracy, the resistance to trump agenda to drain the swamp and the president doesn't have his appointment in place at human resource division of the federal government, that division is called the office of personnel management, so the buck has to stop with the 25-year bureaucrat running the show, she's the running director kathleen and we know the federal bureaucrats hate sunshine on their own salaries. stuart: so a deliberate move on the part of obama administration holdover in this particular department which has access to all these salaries, that is part of the resistance? >> right. stuart: just now this is happening in the trump administration. >> well, stuart, you covered this very well. at the start of the year at open the book.com we put civil service employees on interactive map by zip code and employer work location so you could search at home who and what agency makes how much on salary and bonus even in your zip code across the country. there's 30,000 zip codes, i don't think the bureaucracy liked that and they decide today then redact 255,000 salaries in 68 federal agencies. stuart: whoa. look, i'm out of time, but do come back, please, adam, because if you ever find that information, or find out why we can't have it, we want to know. so come back soon, okay. >> thank you, stuart, thanks for having me on, thanks for interest in our work. stuart: fascinating stuff. come on, i want to know. i pay the money. check the big board. the president, we are awaiting him, more varney after this . . . . but i'm not standing still... and with godaddy, i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪ stuart: an important headline coming to us from the president's meeting with state governors in the white house. the federal government will provide funding to states to pay for school safety. on that note, with the did youdow industrials holding to a very sole literally, up 230 points, here is neil. sir. neil: thank you very much, stuart. reporter: neil, more than 70 move minute meeting between president trump and 38 governors, republican, democrat from all over the country. on camera portion wrapped up. you should get0 minutes of stay soon. my colleague john roberts was inside taking notes for all the reporters. i give you a couple john's notes. the president reiterated once again the need as he sees it, to arm teachers.

Related Keywords

Taiwan , Togo , Point Stuart , California , United States , North Korea , Brazil , Tennessee , Berkeley , California City , Oregon , Venezuela , Washington , New York , Illinois , San Francisco , Pennsylvania , New Jersey , Wisconsin , Michigan , Russia , Kentucky , Florida , South Africa , Whitehouse , District Of Columbia , Mexico , China , Iowa , Illinois River , Chinese , Russians , America , Venezuelan , North Koreans , James Freeman , Oakland Stuart , Libby Schaaf , Las Vegas , Liz , Bernie Sanders , Jeff Bezos , Jason Chaffetz , Mindy Kearns , Howard Kurtz , John Cornyn , Nancy Pelosi , Bob Massie , Embraer Boeings , Brian Manning , Stuart , Warren Buffett , Jose Stuart , Harlan Hill , Dan Mitchell , Scott Wallace , John Roberts , Denise Gardner , Dana Loesch ,