finals. "varney & company" is about to begin. ♪ stuart: monday morning off to a very slow start on the stock market. we are down six-point this monday morning. take a look at the price of gold. this morning, right around 1245. not much movement in gold. look at the ted year treasury yield. 2.50%. then we have apple. hosting a worldwide developer conference in san francisco this week. new software, we hear, is on tap. google is investing a billion dollars in satellites. there is a contest here. who is the great innovator? charles payne, starting his show tonight, we'll have the answer. we have the epa. want to push through a 30% reduction in carbon emissions from cold plants in 2030. k.t. mcfarland joining us now. what is your take on this? >> why would you ever think the president would want to be pandering? of course he is. this is clearly not about america's best interest. it will cost america 226 million jobs. $66 billion annually. president obama does not have the best interest of americans in mind. he is more interested in satisfying the un. stuart: is it your position that we do not need to cut our carbon emissions by 2030 or doing it this way is too expensive? >> doing it this way is too expensive. doing it president obama's way -- let's take a look at the numbers. by 2030, even with this loss, we are only looking at a reduction of 1.8%. this is an efficient, inexpensive and will have a real impact on american jobs. when it comes to what he is expecting, you know, they want to reduce carbon emissions, there are ways to do that. the way you do that is not by flashing it at any cost so you can go and say we have reduced carbon emissions. stuart: they are vulnerable. especially in kentucky, west virginia, virginia itself, ohio. you have a democrat that is anti-coal and raising the price of juice in that area, i do not know why the president would do that. >> there are two issues here. people running. allison grimes. i am sure she is not happy with the president on this. my big question is, where are the unions? they have this blind loyalty to democrats. this is going to directly impact union jobs. this is not the only thing we have seen. we do not hear a whole lot from them about changing their loyalties. they should probably reconsider their loyalties there. it will have a huge impact. stuart: thank you, as always. we will see you very soon, i am sure. apple kicking off its world wide developer conference in san francisco. tim cook is the keynote address this afternoon. maybe some upgrades. that is apple. innovating software. then we have the news from google. a million dollars worth of satellites to bring internet service to remote areas around the world. here is charles payne. you shift your software a little bit. you introduce satellite delivery. who is winning the innovation fight? charles: i think that they are both winning in different ways. it is very innovative. delivering the internet. it does not have to worry about customer appreciation for this stuff. apple is innovating to the public. that is a lot tougher. they are both very innovative and bold putting a lot of money to work. stuart: listen to what you say. as an investor, i would go with google as opposed to apple. establishing for its own benefit charles: it will be able to control its own destiny so much better than apple. samsung and whatever comes around the corner. google, having the ability to control the internet. they are trying to control their own destiny. stuart: i guarantee google sucks up more juice than north korea. [laughter] charles: i think you might. stuart: more on your new show that debuts tonight. netflix adding some big movies. what is that doing to its stock? nicole: 85% in the last year. right now it is quietly to the downside. new movies for netflix. i know everyone is waiting for "orange is the new black." that is june 6. look at that, stepford wives. funny lady, iq, maybe some of these are of interest to you. we know it continues to try to boost all of the opportunities for their subscribers to get out there and see this stuff. stuart: i will surprise you. look at this. look at this. i am now clicking on the netflix app on my iphone. nicole: where is the confetti? you are so cool. stuart: thank you very much indeed. the dow is doing nothing right now. it is monday morning. an interesting debate on the economy. shrinking. shrinking in the early part of this year. it is shrinking by 1%. now we are hearing that some economists are talking about a vigorous second-half expansion. stephen moore, will he throw cold water on the happy days are here? i do not know. it seems to me that this is the new normal. what say you? >> we take 2.5% in a heartbeat. we have been slightly below 2% in the last, you know, four or five quarters now. it is a bipolar personality economy right now. so far, even the signed this quarter following on the negative quarter in the year 2014, they are showing signs of being up. consumer spending fell a little bit last month. there is just not a breakout. stuart: what would give us a big burst out? a big rally in the housing market. that would be really good. a tax cut. we will not get it. >> business investment just is not where it should be if you wanted that breakout quarter. stuart: why not? >> i think it is just washington is such a negative, a downer. a debbie downer. something that will drive down gdp at a time where we have 20 million unemployed people. obamacare is kicking in. that is a negative for the economy. eighteen months ago we raised taxes on investments. all of those things are down for the economy. stuart: is there a chance you will get a political shot in the arm? the republicans get a big sweep. if that was expected, do you think that the economy would start to pick up a little bit? is there a political element to this new normal? >> may be. i still think that is a big event is 2016. the best thing we can hope for now politically is more gridlock. less of the same, fewer of these new kind of roadblocks to grope like this epa. i would like to see the republicans in congress really step up and try to block this in congress. the administration and doing a lot of these initiatives through the regulatory state not through legislation. stuart: i hear you. come back and see us real soon. phil mickelson. he knows a big-time vegas gambler. he makes a good stock trade the judge on this after the break. >> i have done absolutely nothing wrong. that is why i have been fully cooperating with the fbi. i am happy to do so in the future. right now, and hopefully it will be soon, for right now i cannot really talk much about it. ♪ [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ stuart: time for the morning gold. price is 1245. virtually unchanged. $102 a barrel for oil. charles is here. preparing for that new show. he will make us some money. charles: the number one manufacturer, they made two acquisitions this morning. a huge business. i think this is a $130 stock or better. i love this company. stuart: do you own it? charles: no. not yet. stuart: you do not own it yet? charles: no. stuart: are you going to wait until it goes to 110? there is the promo for the show. the feds want to know about trades that mickelson made. a friend of a loss vegas gambler. mr. walters knows karl icahn. sticking it all together. the feds looking at the idea of insider trading. all rise, judge andrew napolitano is here. i think somebody leaks it to go after mickelson and karl icahn. >> there are two reasons why the feds will leak this information. they can tarnish a reputation of this person. let him rather look pathetic like he did in that interview that you ran a few minutes ago. the other reason to leak is the person about whom it is leaked about, they will often make admissions or statements about themselves as a result of the leak. the fbi and prosecutors are prohibited from these kind of leaks. stuart: okay. we have a limited knowledge of what happens here. >> it is just an investigation. if i said to his gambling buddy, i am thinking about buying clorox. that is not insider trading. if i said i know that the clorox board is about to do xyz and i only know it because i have a friend on the inside and the gambler acts on this, that is insider trading. stuart: you do not think that there should be any insider trading at all. >> i think insider trading should not be a crime. i think you should be able to trade on the inside knowledge that you have. charles: on june 27, the stock was lower. it started to edge up on july 6. on july 11, traded almost 6 million shares. to me it is obvious someone knew something was going on. >> that is the type of thing the feds would look at. charles: i made by the stock on july 6. >> they do not just leak things about people because they do not like them. there is sometimes a trigger to the investigation. the massive movement that you just articulated -- charles: wife three years later? >> we do not know. we will learn from the indictment why. talking about a statute of limitations of seven years. in these financial crimes, they are often proved by somebody flipping. a low level person with knowledge. a wiretap. those things do not always happen right away. stuart: i do not know how phil mickelson, i do not know how you could possibly accuse him of doing anything wrong. charles: they stopped him in the middle of a golf tournament. it has been three years, you couldn't wait until monday? >> good morning. have a nice day. call my lawyer. that is what you should say. stuart: tarnishing a reputation. in golf, your reputation is everything. real fast, the release on the u.s. army sergeant in exchange for five terrorist. >> i think the president committed several crimes and doing it. it is against the law to provide this to a terrorist organization. it is against the law to attempt to provide it, it is against the law to agree to provide it. will the government ever obey its own laws? stuart: we have the whole segment ahead. we should have had much less time for phil mickelson, in my opinion. would you agree with that? >> i have no comment. [laughter] stuart: judge, thank you very much indeed. disney scores another win with magnificent. the movie stars angelina jolie. the movie took in $70 million over the weekend. angelenos partner, brad pitt, assaulted on the carpet. that was last week. the assailant, no jail time. i think you should be in the slammer. we will discuss it next. ♪ ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. become the next business to discover the new new york. that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. i know you are there. don't be afraid. >> i'm not afraid. stuart: check the stocks of disney. angelina jolie brought in $70 million over the weekend with the movie maleficent. bread-- he is the man arrested for hitting brad pitt before the premiere that movie. no jail time, none at all in said he was sentenced to three years formation and has to attend psychological counseling 32 pays for that i might ask and he is also the end from these movie premieres or if yes the state 500 feet away from brad pitt and angelina jolie. i think he should be locked up. charlie: no doubt about it. talking with the judge he said there was no real-- it didn't hurt brad pitt it all. stuart: that's ridiculous. charlie: brad pitt in my mind would have been justified in just hitting this guy back. stuart: supposing brad pitt had slugged the guy good and hard i'm a broke his job. could this moron then sue brad pitt? charlie: you can always sue civil, right? it's a lot different bernard than criminal, but certainly bread was not expecting it. it was crazy. stuart: i passed no judgment on brad pitt of any kind whatsoever, but no one should be allowed to be attacked people seem to. charlie: he's putting his hands on people. it's nuts. stuart: and he's walking the streets. he should be a sex offender living under some damn bridge. i don't get carried away here. you never know what will happen when brian kill me this is weekly stint. look at some of the highlights from our interview. >> we don't sell solid. >> he works here. that's brian. >> people want great taste. >> and they go for the friday stuff. they don't eat the salad, do they? >> no. >> stuart: answer is no, they don't. that's popeyes and fried food. genesis, i don't mind that they don't sell solid i just know to eat their food in moderation. yes, it never killed anyone to eat fried food from time to time. will set. franklin adds up eyes has to justify the products. stuff they may not advertise our self and healthy by saying they give people what they want. their greed and unconcern are shameful. i think to differ. even our market watcher john layfield to timeout and said, look at just missed the ceo of popeyes chicken on barney and i don't think he knows he just missed his biggest fan. giles, it you are itching to say something about popeyes, weren't you? charlie: some tweets were so upset with the company. it's like these evil selling-- assuming cigarette companies because you get lung cancer. you know what you get when you going to popeyes. people want the product. stuart: and you missed it he brought a ton. obamacare, if pam example of why big government doesn't work. we will talk to the former health and human services secretary under president bush. ♪ ♪ ♪ stick with innovation. stick with power. stick with technology. get the flexcare platinum from philips sonicare and save now. philips sonicare i quit smoking with chantix. before chantix, i tried to quit... probably about five times it was different than the other times i tried to quit. along with support, chantix (varenicline) is proven to help people quit smoking. it's a non-nicotine pill. chantix reduced my urge to smoke. that helped me quit smoking. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. my quit date was my son's birthday. and that was my gift for him and me. ask your doctor if chantix is right for you. [ the human league's "human" plays ] humans... sometimes life trips us up. sometimes we trip ourselves up. and although the mistakes may seem to just keep coming at you... so do the solutions. like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... to speak with an insurance expert and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance. responsibility. what's your policy? stuart: it's not exactly a rally, but the tao is moving a bit higher, but he seven points up. where is the s&p 500? still well above 1900. 1924 to be precise. the price of gold hovering around 1250, down 40 cents today. a ten-year treasury still yields right there at 2.513 historically low. broad common there is a winter this monday morning. get to tell me why? >> a real winner. we as a back-and-forth on the markets. brought calm is up nearly 10% now. it's looking to sell off one of its businesses. it's cost intensive cellular baseband business and the analysts think they really have been significantly underperforming the peers and competitors and its unprofitable and so they would be saving about $700 million per year. that's why they are looking to use this strategic option to move forward. why is the market jumping? they just revise the ice and manufacturing number and made higher and better from when it came out earlier today. that's what turned the markets into the red and now they have revised. that put it out earlier today at 3.2. this revision gave us a pop in the market. let's get the numbers right. stuart: that's not exactly their fall. from down three to up 23, that's-- >> originally it pushed the nasdaq deposit down to three quarters of a percent and push the dow down into negative territory earlier. it had been crawling back, but now at least it's positive. better manufacturing is good. stuart: thank you. we have not forgotten about obamacare and we have not forgotten about the va scandal. let's bring in a former health and human services secretary in the bush of ministration. look into the program. i think it's important we have you on it this time because you ran hhs were several years and i thank you are in a position to answer this question. can government deliver quality healthcare efficiently? >> government cannot deliver , government is necessary, the question is what is the role of government? should government be used to organize system and let the private sector deliver within the systems or should the government be used to operate systems and it's been my experience when the government takes over the operations of systems it doesn't go well three when the government allows the private sector to operate within an organized system it does go well. stuart: the va system, for example, with the current scandal that would seem to be a good example of how the president actually cannot retreat. he can't just give veterans vouchers to use a private enterprise market. he can do that. that would negate his whole idea that government has to do it all; right? >> this is an important moment for people to recognize the limitation of so-called universal health systems were where the government operates the system. what the va has been accused of is creating essentially waiting lines to rational-- to ration care. that is frankly what happens in every country when the government runs the system. here we have in that a government run system and they are rationing care. stuart: do we have to repeal obamacare flat out? >> there's lots of folks who would like to do that. i do not support the obamacare, but the reality is it is long. what we will see between now and 2016, i think, is a health reformed 2.0 where we begin to discuss how we are going to modify it to make it either more government or less government and of course i'm for less government and the democrats will be for more. stuart: do you think at the end of the day that people who wanted obamacare really wanted a single payer, a completely socialized medical system? do you think that's what they really wanted? >> i think that there are many people who were involved in writing the law very clearly desire that to be the in state. the law obviously had-- had to go through stages or processes, but you can see that the people who wrote the law had that in mind. stuart: if there is one thing you could repeal or radically change about obamacare that would make a real difference, what would it be? >> let me point to maybe three things. one is the subsidies that are being used are too high. the second is there's too much government and a third is not enough flexibility for states. stuart: how about reform? >> for reform obviously would be something that has been talked about for a long time and we know what doesn't happen as politics around the defense bar. it's clear that that would save costs. i thought it might happen in 2009, when president obama said he was willing to consider it and i thought maybe he needed the $58 billion in savings it would create to pay for the bill. that didn't happen and they used other gimmicks . toward reform will occur when the cost become high enough in the pressure becomes intense enough. stuart: thank you so much for joining us today. see you again soon. they say there are only too happy days as a boat owner. the day you buy it and the day you sell it. both, i am told, our money. however, we have one outside and we will-- they will try to sell it to me in a moment. ♪ ♪ ♪ ♪ ♪ i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. strong sales prospect for the current triple seven jet, the company says there's no indication that order activity will drop from previous years. last year boeing sold more of the 777, more than 40 pack. the six to maintain production levels for a new version of the aircraft. boeing also says it will carry out a smooth transition between the current model and the 777. googles motorola mobility smartphone units closing its factory in texas by the end of this year. a company spokesman says sale of the flagship moto x were to weaken the cost of running the plant were too high. this comes for months after google announced plans to sell the smartphone business to china's group for $2.9 billion. the factory opened last may and currently employs about 700 workers. we have a boat inor $2.9 billion. the factory opened last may and currently employs about 700 workers. we have a boat in the middle of new york city. we will have that story for you next. min the nationnew yorko in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. stuart: netflix's chief product officer, his name is neil hunt and he may be watching. he says alec hart viewing and streaming will be the way of the future. i know this is a big deal, folks might be. what's going on? >> when you watch tv even netflix you have that big wide list of things you can watch and then you often times load something a you don't like it when you load another thing. this is not the future for netflix and this is not how they are competing against amazon and what they will start to do is à la cart, personalization giving you this one, two, three options and make an option the right program for you. they be he is watching and all cart viewing is the streaming of the future. also, yet remember a lot of original content is coming from the streaming realm and this gives the content provider and producer more freedom. who says you have to have a series of 13 episodes with each episode being 42 minutes? you can do whatever you want like chapters in a book. stuart: it's personalized is that? giving you what you want now as opposed to you accepting what's coming at you. >> you demand what you want and i think they will also come up with ways to figure out what you want before you even know what you want. stuart: i could use that. i need my toys narrowed down a bit. that works for me. >> i spend hours sometimes looking for something to watch. stuart: i know what you mean. 10000 channels and nothing to watch. i've often been-- it's often been said why don't you buy about? disc it out there by a bow and my answer is i'm not going to buy a boat because it's a money pit and when i said earlier everyone said you are right. you just chuck money into it. wait a second, we have carl blackwell with us joining us from chicago and he's the national marine manufacturers association and he is also the discover boating president and he is joining us from chicago because part on the street right outside your 48th street is a cobalt. that is to say it's a brand-new boat and you, sir, will try to get me to buy one are you not? here's your chance. >> absolutely. we have 8220 cobalt out there brought to you by strong marine. it's a great family boat, stuart. you can hitch that on the back of your car and take it with you or the back of your on the way home today. it allows you to have a whole lot of people on the front. it allows for extra people and very easy to maneuver. it's a very reasonably priced boat. stuart: carl, that's the point. how much is that boat that we are looking at right now? >> that when there is $44000. less than the cost of a luxury car. stuart: you put on a couple extras here and there and i could get it out the door for $50000. at the 26-foot boat; right? >> that's a 22-foot boat. stuart: that's right in the middle of america-- that's a typical boat america goes it buys; correct? >> it's a bit higher than the actual boat. 15% of all boats sold in the us are 26 feet and under. we are right in the sweet spot there. stuart: i'm told the market is improving. that sales are up a little, but some of that sales improvement is accounted for by people replacing both that were destroyed in hurrican sandy last year or the report. what is the general state of the market? >> well, boating industry saw $36.7 billion last year in sales, which is up about 3.2%. that was over a 10% increase a year before and i think the biggest impairment to our growth this past year is the really long winter. it was a reader-- really brutal winter and we think there is a lot of demand and we are projecting five-7% increase in voting this year. stuart: that's why we could persuade you to toe that thing apart right there where there's no water on 48th street so you could sell as a boat because winter is over. >> winter is over, absolutely. stuart: and i could get that boat for less than $50000 out the door, is that correct? >> that is correct. we can hitch that up to your like i said your car today. stuart: carl, thank you very much for joining us. we appreciate you being with us and let's see if we can sell some of those things where you. >> thank you, stuart. stuart: next a number troubling sign for homeowners. the details are next. ♪ ♪ ♪ ♪ we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ what happened? life happened. stress. fun. bad habits. kids. kids. kids. now what? not milk. not sheep. not that. let's think smarter. let's get some science in here. let's build a bed. another bed? no, a smarter bed a entirely new sleep number bed that tracks your movement, your heartbeat, your breathing - sensors working directly with the dual air chambers - yeah you need the air chambers. introducing the sleep number bed now with sleepiq technology. it tracks your sleep patterns and tells you how to adjust for... a good night's sleep, a better night, and an awesome night. so what sleep number adjustments make the difference? try cranking it up? adjust it down? a little bubbly? or nix the late night flicks? wait, you'll know what works, cuz sleepiq™ technology tells you. and all you have to do is sleep. which is easy. only at a sleep number store, mattresses with sleepiq start at just $999.98 because everyone deserves a great night's sleep. know better sleep with sleep number. stuart: there's a lot of homeowners who use their home equity line of credit to make big purchases years ago. now, it's time to pay up. big, actually. cheryl has this interesting forest today. or something to understand. you take out a home equity loan and at first he pay interest on what you borrowed right? >> that's the standard way these loans work. the first 10 years is interest-only. stuart: and then? >> then it jumped up to regular interest rates and you have to start paying down on the principal as well. interest rates are higher and the principal is now due. limit of example. i will show you the quick. 817,000 borrowers will be hit this year with this. $23billion worth of loans. i wanted to show that to you to give you a sense of how big this problem is. stuart: 800,000 borrowers this year will see a huge jump in their monthly payments taking $23 billion out-- extra out. now give me an example of how big an increase of monthly-- >> say you are sitting on a $100,000 loan and that's what you borrowed to put your kids through college to fix up the basement whatever. right now your payment is about $292. that will jump because of the way belt loans are structured to $715. that's a huge jump for these 870,000 people and that is right now. this is the beginning and it will be coming for the next several years because remember people started 10 years ago and that was 2004. the financial crisis didn't hit till 2007, 2008 and that's when we started to see the bubble burst, so for the next three or four years we will see this problem happening for these borrowers. think about it wages are going up. the economy is stagnant. what will this do to consumer spending? you might as well taken brought up a window. stuart: you might have to sell the house to get away from the home equity loan. >> if you can. stuart: hopefully the price of the home is high enough to satisfy that loan. >> what will this do to the states that have been doing well this year, california, texas, florida, arizona, nevada -- excuse me not texas, but it all those states were hard-hit during the crisis and they have come back this year. now what happens to these markets with this situation? stuart: my eyes are opened. i did not know a home equity loan was interest only for the first 10 years and then you get hit with the principal. >> my mortgage used to be interest-only. those were the days. stuart: i have done home equity loans my time, but i didn't know. thank you. new at noon the man behind the number one free app in the app store read it again called dots and it's the first us game to get into china. the guy will be back again. so is brett baier with a very personal story. his son's health battle. he has written a book. our two, two minutes away. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ stick with innovation. stick with power. my mom works at ge. stick with technology. get the flexcare platinum from philips sonicare and save now. philips sonicare ♪ stuart: we are not afraid of opinion. google is the great innovators these days. it is not apple. somebody has it in for phil mickelson. there is a lot more. here we go. ♪ stuart: headlines, here they are for obama -- democrats not so sure there is an election in five months. soccer. a bribery scandal right before the world cup. the mickelson insider gambling. where is the big revelation? we still have the dow. not there yet. of 19 points. close to the high of the day. 16736. the s&p 500 moving higher. the 10 year treasury, 2.52%. about a week ago, we were at 242. price target cut for aeropostale. down goes the stock. it was down 1%. a newspaper stock. behrens likes it. it is up 3%. we have apple kicking off its worldwide developers conference in san francisco. tim cook takes the stage in delivering the keynote address. all i am hearing is that apple will deliver a software upgrade. that is it bush remark is that it? >> apple always keeps their secrets under a veil of secrecy. we will get to see the first impressions of it. thousands of developers wrap all the way around the block. these are all of the developers that want to see this software. they are the ones that build the applications for the devices. as far as hardware, that is the big mysteries. the rumored i watch. will we see software that will be powered on your wrist? will we see new laptops? it seems unlikely. these are the people that build the software. stuart: disappointed so far. number one, what is all that shouting in the background? number two, where are the women? we can see all of these young men. we have counted three women since you have been standing there. what is going on? >> i will try to find the women for you. i will make that my mission. there are a lot of women getting involved in ad development. trying online coding. there has been traditionally a man's game. these protesters you are hearing behind me are here because they are hoping to get a little face time. it is a union group doing the protesting here. stuart: okay. do not tell them you are from fox. hide that microphone. okay. bear with us. see you tomorrow. google looking to space. >> google is looking to defend upwards of $1 billion. this is to obtain a fleet of satellites. about 180 of them that will orbit the earth. it will bring it to areas that do not have this capacity right now. they are not saying where it will give the ability to send. there will be a later phase of this, as well. that will double google's range of satellite. 1,000,000,003,000,000,000, ultimately. google is down right now. stuart: we think that as of this date, that -- a new iphone game. it is taking apples i store by store. the number one game on the app store. it is made by the first american company to launch a game on alley above us platform in china. interrupted rudely. i cannot remember what happened. you weren't here on friday. it was the president. okay. the second version of dos is now the number one app. how many downloads in the first two or three days? >> as of this morning, we had two and a half million downloads. it was pretty quick. one of the first few acts to get to a million downloads in the first couple days. speak to you make money two ways. there are things that you can buy in the app. virtual goods. >> my wife beat it this morning without paying any money. stuart: you should not vote that on television. >> we have done a few advertising deals with large brands. stuart: though more cash flow. you are a private company. it is you and how many others? >> it started at a startup studio. we are about 12 people now. stuart: 12 people. that is it. >> that is it. twelve people. stuart: did you sit around and think this game may be good? >> it is not that far off. we put it in front of our partners, our friends, our family. we measure everything that they are doing and they don't know it. stuart: you have done well. you are off to a fantastic start. these games, and they go. >> gaming in particular is notorious for this. our games had to stick. they still play it regularly. stuart: would you tell me, would you tell me how much money you made out of that one? >> we do not have anything to share on revenue. stuart: will you answer this question, would you sell dot's two and one combined? >> that is, obviously, an exciting number. stuart: $100 billion, would you? >> i would have to call the board. i think we are more long-term focused. stuart: you would not take it? >> not currently. stuart: that is not what you told me in the commercial break, and you know it. >> it is a great number. we think we can build a very big business. stuart: one of them will be you. come back and see us. the department of justice just announcing it has disrupted a neighbor cyber fraud scheme. rich edson has the details. >> good morning, stuart. a 30-year-old russian is at the center of this operation. according to officials, they say a major criminal operation to disrupt a scheme using malicious software to steal money from companies and individuals, including the united states. costing a hundred millions of dollars. the intern cyber pressure iraq think the department of justice. stuart: thank you very much, indeed. let's go to larry levin in chicago. economists, some of them, upbeat about the second half of this year. they say we will really start to expand. >> we have to be careful what we listen to. the economy does seem to improve. things are changing. the way that young people are thinking about home ownership. the way people are thinking about buying things. everything is changing so much. it is kind of making a new economy. stuart: you are absolutely right. i don't think we got two new groups with this economy. who gets the growth? who gets the income? how high demand goes in various areas. you know what, larry, i do not think that it is ideological. i think there is something going on in this economy and i cannot put my finger on it. it is not political. >> sure. we really do not know what happened until after it happens. i think we have to wait a few years to see how it plays out. stuart: interesting. thank you very much, larry. then we have fan favorite golfer, phil mickelson. now the feds are looking into his traits. well mickelson's image take a hit? probably. that is next. ♪ weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. stuart: i have a couple of lunch time movers for you. they are big names. game stop down 2.5%. we once put that stock on deathwatch. then we have hasbro. that is down 2% did elizabeth mcdonald is here. we have a lightning round of subjects for her to deal with. all based in europe. number one, government run healthcare over there. i think it is awful. liz: i was interested. i read the newspapers as much as i could every day. they make these big massive regional hospitals. that is not the way to go. there was a hideous, terrible story of a woman, 45-year-old grandmother who literally was crawling on the floor in agony from a blood clot. she was not given a cat scan. she was only given a cat scan three days later. she died in this nationalized health system in the uk in england. i hate to sound so grim, stuart, people fail to realize that when you have a nationalized health system, it is the government running healthcare. there is lack of accountability. stuart: i am glad you went and reported that for us. the french movie star. liz: yes, that is right. he leaves france because of the high tax rate. getting a 6% tax rate. vladimir putin gave him his passport. he is opening up a small business and he qualifies for that lower rate in russia. stuart: last one. allowing you to erase personal information from the internet. liz: correct. google is at the heart of this. people want privacy. google is saying watch out. criminals are flying into google saying they want stuff he raced. wipe out our searches. what does this mean for law enforcement? it was easy to search names. now it is less easy to catch criminals. stuart: yes. thank you very much. no movement on the market. we are still up 15 points. the golfer, phil mickelson, caught up in an insider trading investigation. mickelson denying any wrongdoing. could this hurt his squeaky clean image? it sure can. >> yes. seems to me, what is going on with a leak of information like this with phil mickelson? that has to be highly unprofessional. >> not speaking about this case specifically. in general, what you see is they want to get people to cooperate. they need his cooperation. stuart: i am a golfer of his stature. to spit his name out there because he happens to know a las vegas gambler seems to me to be going a little far? >> if you are talking about someone so high profile, maybe you can debate the ethics of doing this sort of thing for several hours, i imagine. stuart: show us your proof. the next thing you'll have to do is back it up. liz: what proof can they give now? he never even met the golfer, phil mickelson. stuart: this is your headline. >> these are the problems. they drove -- they juggle these problems all the time. liz: this is low hanging fruit for prosecutors. when these guys did not stop, it is so easy to hit people with an insider trading case. stuart: you see what you have done here? >> it is a real nice. stuart: do you think that that will lose its place for the venue of a world cup? stuart: international football association. >> what will really face them is, do they want to do what is right and risk angering a huge segment of the world? or, you know, did they want to follow what was seemingly a paper trail and money trail? stuart: a lot of money changed hands to make sure that carter was a venue for the world cup. that gave you a world cup final in the summer where the temperature is 120 degrees. >> you can air-conditioned stadiums, you cannot air-conditioned a whole country. it will certainly be moved to january. even more of a problem is you have a u.s. partner in the 21st century fox. stuart: believe me, i have not forgotten that. it will be moved. >> seems to be setting himself up even though he was involved in managing the process. stuart: it will be moved to america. >> that seems like what they are moving towards. defending a u.s. attorney's office -- liz: it was not direct it at you stuart: you unleashed on this poor guy when he was least expecting it. thank you for joining us. >> thank you for having me. stuart: will you be back? >> absolutely. stuart: thank you very much, indeed. sports and gambling. they do go hand in hand. my take on soccer and phil mickelson is next. ♪ ♪ [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born. simple is good right now. (anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare. stuart: sports and gambling are and inevitable next. they do go naturally together. how much interest with their peak in a horse race if there was not an odds on favorite? when you're running is on the line, the game is more intense. an association between gambling and sports can be very damaging. just look at what has happened to golfer, phil mickelson. his name has surfaced in an insider investigation. he is linked to a man described as a "vegas gambler." it is a real image problem for phil mickelson. personally, i smell politics here. maybe phil should have never criticized high tax array. first, and asian gambling syndicate is accused of buying reveries and breaking the betting. the money was also allegedly used for the world cup. this story is breaking just had days before the start of the big games in brazil. not happy with any of this. i do not play. i enjoy watching golf. phil mickelson is one of my favorites and always will be. he cannot take a stock tip? no. i see him as a victim by association. a victim of what is been big this. i am looking forward to the world cup. the association has been made. gambling, soccer, corruption. i try to get those associations out of the line. it has been a rotten winter. the economy is not doing well. nothing, nothing will stand in the way of my enjoyment of golf and the world cup and summer. ♪ unlimited cash back. let that phrase sit with you for a second. unlimited. as in, no limits on your hard-earned cash back. as in no more dealing with those rotating categories. the quicksilver card from capital one. unlimited 1.5% cash back on everything you purchase, every day. don't settle for anything less. i'll keep asking. what's in your wallet? ♪ stuart: getting back to the story on phil mickelson and carl icon. do they have grounds for a legitimate investigation? >> based on what we know, somehow, according to the fed, this guy, billy walters, and mickelson, they made some trades before karl icahn announced his bid. that is not insider trading. they do not obtain and trade information from clorox. the government wants to expand the insider trading. good luck. stuart: karl icahn. he has a protection with the gambler. i like the look of clorox these days. >> carl announced his intentions before that. in between that time, it was the timing they are worried about. it was right before carl made the official bid. that is not illegal. how do we know that a source wasn't herbalife? it was a bitter. stuart: why does the fbi sent agents to phil mickelson? >> they did that to scare mickelson. they scare the hell not out of people. they say i want to talk to you. he did exactly what martha stewart should have done about 10 years ago. stuart: there is nothing in this and mickelson did not do anything against the law, how does he get his reputation back? >> it is funny you mentioned that. this will hurt his sponsorship and things of that nature? people do not care about insider trading. stuart: the eta wants a 30% reduction. let's bring in the public republican. these are stringent new rules. probably going to raise the cost of electricity. probably going to lose jobs. there is nothing you can do about it. >> they are the ones who will be paying for these exchanges. stuart: this november, if the senate goes to the republicans, what will you be able to do? >> the regulation cannot go into affect. it takes an affirmative vote of both the house and the senate. i think that we can do it if we get the majority in the senate. stuart: will you make this an election issue? >> absolutely. we are sending our jobs to other places like asia. they do not have anywhere near the regulations that we currently have. one of those things like the united states controls the whole world. we are not the biggest polluters in the whole world. it takes 10 days to the eastern shore of virginia. we are sending our jobs over there. stuart: china and india, we are doing something about this. >> i think a lot of times he deludes themselves. they see an opportunity to pick the carcass of the american economy. stuart: that sounds like a line to meet. thank you so much for joining us. >> is called dirty? yes. will this space a court fight. stuart: of course. it is radio address on saturday. >> he said they are all politically. stuart: mercury and acid. should not combine the two. they are separate. the dow is doing nothing. which company is the current innovator? is it apple? is it google? we will post the answer after the break. ♪ we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. ♪ >> a strong spell out the box office this weekend. the twist from the sleeping beauty. it brought in $70 billion. x-men down to second with $32.6 million. seth mcfarland a million ways to die in the west came in third with $17.1 million. godzilla fell to fourth. rounding out the top five was adam sandler's movie blended. the final term, $40 million. that comes to about $1 million per athlete appearance. the first time and -- stay right there. the real halftime starts next. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ stuart: it is that time. ladies and gentlemen, we bring you the real halftime new and -- who is the innovator of the day? apple revising software. >> years ago, i would have told you hands down, apple. i think apple has had its day. google. stuart: which stock would you buy? >> google without a question. the company has lots of technology pent up. apple has a bunch of technology. stuart: and executive says tv will be personalized in the future. liz: the grid system, that will go away. the netflix version of tv viewing is the wave of the future. they are doing a really good job. >> a narrow range of choice. liz: they will offer to you a personalized list of shows. they feel like it works. stuart: aeropostale is down big. why? nicole: what a bummer for aeropostale. they cut the stock to $5. they have a neutral rating on this one. they have a $5 target. $3.71. here is the other part of it. rbc capital. they turned bullish in july of 2012. now they have basically just said, you know, we made it while it was so bad. they had to keep cutting it and cutting it. stuart: that was tough judgment. back to you, keith. the 10 year treasury. it stuck around 2.5%. what do you make of this? >> i think the bond market is $800 billion worldwide. this tells me that traders are not ready to let go of the risk. i want to be cautious here. it tells me to be very, very cautious. stuart: thank you very much, indeed. that is the real halftime report. we have brett there with us. he has a new book coming out tomorrow. it has nothing to do with politics. it is about his sons battle with heart disease. during the very first days of his young life. welcome to the show. >> thank you, stuart. can you give us a brief outline? >> sure. it was a journey. we did not know it at the beginning. he started turning pale. we had this diagnosis right off the bat. twenty-four hours in. he had to have open heart surgery at 12 days old. a surgeon reworking the way his heart worked. a little walnut sized heart. it was essentially pumping the wrong way. he moved it around. he works arteries the size of angel hair pasta. he will be seven this summer. he is doing fantastic. really amazing. stuart: what on earth do you say to the dr. who did that? >> thank you. a million times. a million times. one of the best in the world. this is a book of e-mails that i sent to family and friends about this journey. we thought maybe it could be an inspiration to people. this was our something and how we got through it. we will do some live tv with a 7-year-old. that is a little dangerous. he is fantastic. tallest kid in his class. you would never know it on the program. we are going to donate all the money i make to the research. stuart: thank you, search. the barons bounce. that is next. ♪ time to take care of business with century link's global broadband network and cloud infrastructure. we constantly evolve to meet your needs every day of the week. ...i got lots of advice, but i needed information i could trust. unitedhealthcare's innovative, simple program helps moms stay on track with their doctors to get the right care and guidance. (anncr vo) that's health in numbers. unitedhealthcare. what happened? life happened. stress. fun. bad habits. kids. kids. kids. now what? not milk. not sheep. not that. let's think smarter. let's get some science in here. let's build a bed. another bed? no, a smarter bed a entirely new sleep number bed that tracks your movement, your heartbeat, your breathing - sensors working directly with the dual air chambers - yeah you need the air chambers. introducing the sleep number bed now with sleepiq technology. it tracks your sleep patterns and tells you how to adjust for... a good night's sleep, a better night, and an awesome night. so what sleep number adjustments make the difference? try cranking it up? adjust it down? a little bubbly? or nix the late night flicks? wait, you'll know what works, cuz sleepiq™ technology tells you. and all you have to do is sleep. which is easy. only at a sleep number store, mattresses with sleepiq start at just $999.98 because everyone deserves a great night's sleep. know better sleep with sleep number. stuart: every monday we bring on the guy from barons magazine. we have another balance. this guy moves markets. welcome back. >> thank you. stuart: you wrote about it. you like it. >> the stock is cheap. it is still cheap. even after the bounce. it is actually become a broadcasting company. the stock should trade more like a broadcasting company. half of its cash flow is all over the country. those are much more profitable then newspapers. it would be 40% higher. stuart: you gave it 3%. just that article. you have credibility. >> i think people saw the argument. it made sense. stuart: not just usa today. >> no. you know broadcasting is awesome. they do have a lot of local newspapers that are very good, too. they have done a smart job with the websites of those papers. stuart: i am sure that it was dismissed. that is old. >> usa today feels old. that was an experiment from 20 years ago. stuart: you gave them a 3% bounce. you can move markets still. thank you very much, indeed. your take on the show is next. ♪ stuart: i don't play, but i enjoy watching golf on tv and phil mickelson has always been one of my favorites, he always will be. what is he supposed to do? never go to dinner with anybody who gambles? he can't take a stock tip? he's a victim of what to me is inductively leaked information. that was just part of my take earlier on the word of gambling and sports. here is what you have to say about the rest of the show. on whether or not google could be considered the great innovator. he says for their plan to bring he says innovation implies something new putting satellites in orbit for communication is not new. got it. mike adds this about government run health care. the government can't even write itself, how do we expected to run anything else? we like them. that series deirdre bolton. deirdre: thank you very much. this is "risk & reward." where joining you from east hampton. no media outlet has ever been allowed to the summit, normally closed door exchanges the more than 200 tech investing media leaders are here last night. a lot of good ideas being exchanged, the beginning even of a few deals in the works. we will be bringing you exclusive an interviews with our host, we will be joined in just a minute. also, the heads of media link, a well brand and 33% global market share number one global media investment group.