the senate banking committee. what she has said so far i the market impact. the recovery is not complete, says she is worried about a weaker labor force participation rate and she is going to watch the second quarter economy performance very, very closely. before she started to talk, dow jones industrials up 40, 50 points. right now we are down 10 points. so no huge impact on what janet yellen has had to say be goldman sachs and jpmorgan lead the dow 30 stocks of all the stocks in the dell 30, these two are the the big winners because they have reported strong profits in the banking sector. and we have microsoft, huge job cuts earlier this week, i do own the stock and it is up just a little up $0.09 on microsoft. the s&p 500 mirroring the dow down just about five points on in 1800 index. how about the price of gold? biggest drop of the year yesterday down some more this morning putting it below $1300 per ounce. price at $99 per barrel dropping below 100 for the first time in a couple of months. let's go to jay carney, he may be the next p.r. boss at apple or maybe the next at uber as well. the former press secretary in the running. loothat apple stock for a second from an investor's point of view is it good, bad or totally indifferent? charles: totally indifferent. i would think you'd be better set for the uber job. this is more of a controversial company, little bit of experience. stuart: how is he going to explain $150 billion overseas so doesn't come back here to pay the obama corporate tax rate of 35%? charles: we have seen them juggle some pretty interesting things over the years. stuart: how about the huber job? kind of unregulated. here is mr. regulation, nobody nonregulated uber. >> it is pretty interesting but i would hire jay carney. this is the guy i want. he dodged questions nearly 10,000 times, this is the guy i want. charles: he is nimble on his feet. the white house president put him out in unprepared situations and he did the best he could. stuart: 10,000 non-responses? >> you who said 9486 times he dodged a question b. stuart: how many questions was he asked? >> he can defend my company. stuart: i think he is good for both jobs. let's move on, new development on the border crisis. immigrant women and children deported to honduras last night. however, 57,000 children remain in this country. two texas lawmakers democratic congressman and republican senator have a plan, they want to make it easier to send minus back to their home country. what do you think is the impact on hispanic voters if we deport hispanic children? >> it is a question up in the air of the impact of the voters because this is a different aspect, central american kids most of them of the 57,000 coming from honduras and ecuador and guatemala. not traditional coming over for mexico we have seen along the border in droves. it is a little different animal. hard to say how little play in the hispanic community. i heard a number of activists saying there needs to be a change in the overall immigration reform, but they believe doing it legally and getting here legally is the way to go. stuart: the republicans seem united, secure the border and send a lot of these illegals back home, seems to be a united decision. our democrats more split on this issue? >> there is a split here because there is a side who wants to see all these people absorb into the country as refugees. they believe the situation in those countries is so horrible as far as violence, honduras has become the murder capital of the world these kids are seeking refuge in america and they believe we should take them. republicans they have to adjust this law 2008 set up for traffickers to be sure kids are not coming in because of the sex trade. diane feinstein made the amendment. this will going forward is designed to redo that law, change its the central american kids can be turned away at the border just like mexican immigrants can, speed up the deportation process to get them turned around. stuart: if it goes through the senate with the president signed it? >> it is a great question. originally the white house said they were for changing the legislation. they put up the supplemental and had no language to change that. a change of heart somewhere, stuart. the administration is caught here and wants to please its base, and republicans with a crisis they are dealing with at they have to figure out a way to get through it. stuart: the entire situation is in a state of flux, nothing concrete is going to be done in the immediate future, and almost all of those children who have made it here so far will stay. >> i think it is a fair assumption. i don't know how fast the deportation process will go, whether they speeded up but i would bet most of them will be here with families someplace. stuart: 6:00 p.m. eastern on the fox news channel, thank you for being with us, always a pleasu pleasure. let's get to the big tobacco deal. it is official. nicole, tell us where the stocks are. nicole: both of the stocks up to the downside, but have been running up since february. two of the behemoths in the tobacco market. they have to things that are just huge and lead the tobacco market. here in the u.s. menthol really is attracting younger generati generation. they are number two and number three, by putting these two names together, they can compete against mr. number one, marlborough. giving them more leverage, more streamlining, cost-cutting and the likes to have them better positioned. it also may give them some pricing power. you can watch for camel and others. it is a good news, we have seen sales volume dropping overall year-over-year because people are quitting cigarettes but $100 million market u.s. tobacco market. stuart: i want to see what is happening with the e-cigarette country wants to put out there. that could account for the year-over-year decline. thank you very much, indeed. we have a virtually flat market right now, down virtually all of seven points. 17,047. i want to tell you about the deficit. here is the story. got new numbers at 10:00 eastern that the deficit will start just about where it is now very roughly $600 billion each and every year, however it will really explode, it will go straight up because of entitlements. kaylee's with us, a millennial, somebody who is going to benefit from the entitlement program in 60 years from now. charles: may be. stuart: that is why this deficit is going to explode, you can't touch it. >> it is fascinating because as was released there was a new one ill survey released get they favor a larger government with that or service. but they found when you get specific, 55% support cutting spending and 58% support cutting taxes. that resonates with millennial because this is a big issue. stuart: 78%? >> that is right. stuart: that is millennials. defined as twentysomethings, your generation finally turning around, seeing the light. >> if they are smart enough to get specific reports. charles: i think it will be worse than that. at some point paying a trillion dollars per year. stuart: the interest we have already paid in the last nine months until now we have already out $354 billion in interest. 40 billion per month. charles: the pension timebomb and the baby boomers retiring coming out, five or six years is going to be an amazing time, it will be scary. >> it is no wonder asked what is the biggest national security threat of this country, they named the national debt. stuart: time is money, three headlines for you. morgan stanley report of a new watch will sell for $300. it will pack more functions than other competing smart watches. what we call the amazon of china, bigger than that. making a deal with lions gate films to stream content. it would give chinese users access to films like "the hunger games" and "mad men." microsoft is picked to announce huge layoffs, the biggest since 2009. the layoffs will focus on the marketing department. microsoft this morning was up on that news. other case of missing e-mails from outspoken obama supporter of the federal election commission. how do they suppose to politicize that? a former colleague of lois lerner. stay right there, the judge is next. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us. we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov stuart: you're looking at janet yellen, chair of the federal reserve testifying right now before the senate banking committee. i picked up on one thing she said which may have affected the market. she said yes, fiscal policy is a drag on growth. i did not expect her to say anything quite as conservative as that. threalization taxation doesn't help the economy is important. the stock market turned around just a little. we were down a few points, now we're up a few points. maybe she said the right thing about taxes. are you curious about a stock of any kind? if you are, we ask you to come into us using the hashtag #askpayne. charles has been asked about whole foods. i don't shop there, but nonetheless uruguay tell us about the stock, aren't you? stuart: we will gets to you in a second. charles: listen, the company i would avoid this stock. there really running running into some serious trouble. earnings estimates coming down, five year growth will be half of what it was the previous five years, tremendous competition. they're having some serious problems. lot of these companies are having trouble too. stuart: they try going to whole foods is guys with beards. stuart: i think he put that in a plastic bag? stuart: they are telling us our time is up. serious stuff, a lawyer for the federal elections commission her until she resigned in this year. now she served under lois lerner and also campaigned heavily for president barack obama saying things like this on her twitter account. i just don't understand how anybody was straight white men can vote republican. what kind of delusional rhetorical does one use? she used the word in the wrong context. and this, dear every single republican ever, when will you learn obama is smarter than you? as soon as the sec inspector general began an investigation into what fans was doing, they found a computer hard drive had been recycled before it could be seized. all rise, judge andrew napolitano making his second appearance on this particular segment on this story. i don't know who destroyed hard drive any race the e-mails, i don't know who did that. >> it was done by somebody at the federal commission. it is illegal because the sec like all agencies required to keep all the records. the willful destruction of a record to impede is not only unlawful, it is criminal. a question of when the destroyer or when they ordered the destruction was aware of the fact an investigation was comi coming. if you listen to the e-mails and tweets you ready, this is read by a lawyer working for the fec, federal election commission whose job it is to secure the accuracy of elections. these can't be political people, and yet she was. who was her boss? the very same lois lerner had worked at the irs, the very same human being. stuart: you're supposed to be a political. >> there are five appointees to the fec. those are the commissioners, they are obviously political. the people who work for them like this one by law must be apolitical. they cannot participate in a political campaign while working for the federal commission designed to assure the accuracy and lawfulness of these campaigns. stuart: for she was at fault in taking a position during an election campaign. there is a fault in the e-mails having been destroyed but the real question we are asking is what was relationship with lois lerner, did she tell her to do anything like this? >> we now know of two government agencies required by law to be controlled. both of which the unthinkable was done, hard drives were destroyed irreparably. it is unthinkable they would believe it could get away with it. i wonder if there is more to come. stuart: it is an exploding sto story. what is implied in this whole irs scandal is it was organize an orchestrated either by the campaign to reelect the president or the white house itself, that is the suspicion. that the white house or the reelection campaign interfered directly. >> this ought to put additional pressure on attorney general holder to appoint an independent counsel to investigate all of this because the obama administration is incapable of investigating itself. >> he should be impeached, but he will not be. >> agreed on everything you have just said. don't throw that tape back asked me, please. stuart: did you get that on tape? yes, it will live forever, son. the discovery channel show "the deadliest catch" very popular. we playe play the highlight witr interview of the star of the show after the break. in this tribute add to derek jeter that everybody is talking about. more on that coming up. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. >> these are the cameraman on the bow. there have been many times where we have said we are done. there is a mutual respect gained it is fishing first. it is not about let's be on tv. over the years, it has done a lot of great things for our industry. stuart: that was part of our interview with the deadliest catch. it is currently nominated for four emmys. big news in the world of sports. the ratings for the final world cup games are in. it is the third highest rated soccer game in u.s. history. >> one game. stuart: look at that. over a 10 year period just to wear a adidas jersey. $1.3 billion over 10 years. >> quite a bit. charles: they bought the team. stuart: keep it moving. okay. try this one then. yankees captain derek jeter. a real nice sendoff. ♪ ♪ stuart: i get the point. we are not getting paid. all tipping their hats and honor of derek jeter. you can watch the all-star game tonight. >> my least favorite people from there. stuart: keep it moving. keep it moving. >> he is not a good guy. stuart: they are interested. stuart: she is going to harvard. [laughter] charles: they don't like anybody. stuart: atlantic city is going bust. this is a casino. it is on the beach. how could it be that they are shutting their doors? we will do with it after this. ♪ thank you i had no idea i had shingles. there was like an eruption on my skin. red and puffy and itchy and burning. i'd lift my arm and the pain back here was excruciating. i couldn't lift my arms to drum or to dance. when i was drumming and moving my rib cage and my arms like this it hurt across here. when i went to the doctor and said what's happening to me his first question was "did you have chickenpox?" i didn't even really know what shingles was. i thought it was something that, you know, old people got. i didn't want to have clothes on. i didn't want to have clothes off. if someone asked me "let's go dancing" that would have been impossible. stuart: some names did very well earlier this year. they are not doing very well right now. tesla, green mountain and netflix all down. let's get to the trump plaza casino. it will close probably by mid- september. two hours from new york city. how could they miss this up? a member of the mit blackjack team. now he is the ceo and founder. it has been a long time since you have been on this show. how are you doing? >> i am doing well. stuart: how did they screw up atlantic city gambling. how did they go wrong? >> i think it is a pretty simple answer. there was only gambling in two states at that time. now there is gambling in 41 states. there is a lot of competition. it only has about 30% of its revenue from gambling. you have to have something more than just gambling. all there is to do there really is gambling. why did you not drive down to atlantic city to count cards and make a ton of money? >> it is a very simple thing. atlantic city because they are not allowed to kick you out of the casinos. they make it really difficult for you to win blackjack there. stuart: really? i did not know that they fixed the rules or imposed rules. i did not know that that varied from new jersey to nevada. i did not know that. >> new jersey, legally, they cannot kick you out of the casino. they make it really hard to have you beat them. stuart: what do you think of this development of online gambling? it must be a real downer for casinos. >> it is not as big of a downer as you would think. those casinos are the ones controlling those online. i think the casinos really are too focused on gambling. whether it is the clubs, the restaurant, the shows. if you walk around during the week, there is nobody there. it is so vibrant during the week. the focus on gambling revenue is not really where it should be. stuart: hold on a second. i have been to the casinos in singapore. i have been to the casinos. it is hardly any table games. it is serious gambling. >> that is the asian culture. they are culturally much more focused on the gambling. they are destinations that need to be focused on non-gambling revenue. stuart: why is it chinese folks have a penchant for gambling? >> lending yourself to believe that you can be the numbers. stuart: okay. you made a fortune counting cars. you do not do that anymore. congratulations. we will see you again soon. >> thanks. senator has a better plan to deal with this. he will join us next. ♪ ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. charles: this is the fox business brief. teaming up to launch a subscription streaming service. the service is called the entertainment world. it will be exclusive to our labile bus team. users will have access to lions gate content including several titles from the hunger series. ali baba is prepared to go public. they could be the biggest offering. major layoffs are coming. sources tell bloomberg the biggest layoff in five years. the ceo of microsoft will announce its tune probably this week. stuart varney will be right back. ♪ stuart: fed chair janet yellen testifying. she has not had a great impact on the stock market. of 40 or 50 points before she started to speak. facebook is down. yelp is down. all of them taking a hit. charles: you know what she is really trying to do, hey, the overall market is not at a place where everyone should panic. she has made and lots of noise. how could you not raise rates? you cannot keep having it your way. it is amazing. stuart: have to get back to the crisis on the board. it is a crisis. a plane took off, off they go back to their country of honduras. they remain here. democrat congressman and republican senator, they plan to introduce a bill that would speed up the deportation process. welcome back. good to have you with us. what is your plan? >> we need to detain these folks. over 90% of these folks never show up in court. never show up anywhere. they are clear of release in the united states. we need to have a quick expedited process for their deportation. stuart: what do you think the impact will be on hispanic voters? i am thinking what happens to the hispanic vote? >> what we should do. policy that makes sense. policy that makes sense for the country. i think that there is a very broad based consensus. it is a crisis. policy that encourages more of this act. he could increase. it is still increasing. that does not solve the humanitarian crisis. that makes it worse. it puts more children in jeopardy. stuart: the president says he is waiting for congress to act. if congress acts or expedite the process to send them back quickly, you think they would find that kind of bill? >> i do not know. talking for two weeks about the aspects of the law. it includes a change that was made in 2008. that is not leadership at all. i think he needs to read. they need to meet with congress. change the law. the deportation process. get that done. stuart: would you agree with this statement? almost all of them are going to stay for many, many years. >> they will change the law. that flow will only increase. the number will increase dramatically. that policy is causing an increase. more children at risk. more children being put in the hands of criminal gangs. that policy is making it worse. stuart: thank you as always for joining us. both were bill could have a tax free if he is cleared by the army. what you have to say about this charles. charles: from everything i have heard, he does not deserve the money. did he drop his weapon? did he leave his post? it bothers me a lot. at the same token, we cannot necessarily condemn him. >> he left a note saying he was deserting. his fellow soldiers came out and said he was a deserter. charles: just amazing. stuart: check this out. airbus' vision for the future of air travel. we are calling it a sardine seat. [laughter] stuart: here it comes. we will give you the painful details in a moment. ♪ i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. 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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. cheryl casone is here. cheryl: i think anyone will do anything for a cheap seat. these are a nightmare. it is a bicycle seat, basically, with a little extra padding. the amount of complaints we would get from passengers. these would be off the charts. stuart: you know what you are getting. a short flight. charles: prices never come down. you miss the price. it does not come down. >> a medieval torture device. stuart: if you know what you are getting into before you get into it, you can pay the price. >> you think the faa will really prove this? charles: it is crazy. stuart: you hold on like this. that is an airline. the second hour arrives at your tv set in two minutes. ♪ [ male announcer ] the mercedes-benz summer event is here. now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ [ tires screech ] but you better get here fast... 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[ male announcer ] ...won't last forever. see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us. we're changing the way we do business, with startup ny.. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable. stuart: it is a trend. the government is incompetent. congress is deadlocked. wall street earlier today was on a tear. your 401(k) is up nicely, everybody. it is not just low interest rates. perhaps it is investors. political change this november. we are on that. welcome to our second hour. ♪ stuart: headlines. look at the market please. we have been in areas we have never been before. that was pretty good. this is that. no cease fire between israel and hamas. new york, chicago, heading down detroit's road. we have an analysis on that, too. we will bring you a free app that gives you free delivery. how does the app creator make money? one of our favorite chicago guys is here. we will interpret, we will shows you that awful new airline seat. we probably will not mention the world cup at all. the market went down 40 points. goldman and jpmorgan lead the dell. very nice gains. the s&p 500. where is that? one half% down. here is the key. interest rate barometer. 2.54%. that is actually down a few basis points. the price of gold has dropped. oriole, well, that has dropped below $100 a barrel. drake and if -- the policy, the fiscal policy is a drag on growth. >> she does happen to be right. specifically, what does she mean? that is what i would like to know. stuart: i am very surprised to see it. >> she encourages the spending. i will not say that she is a half for reducing. stuart: the big picture, your political outlook is give me much less government. with this printing of money. >> do not forget regulation. we compare state-by-state. let's look at the great state of texas. let's compare it to where i live. the facts are the facts. look at each state. let's do it on a national level. stuart: are they concerned? it is on their radar. >> they are aware of it. i am forced to have an opinion. you and i talked at great length. hillary clinton will be the next president of the united states. that's absolutely scares me to death. stuart: listen to this one, though. facebook is lower because of something that janet yellen said. nicole: janet yellen really basically crushed the market and crushed social media today. it dropped over $1.30. the evaluation metrics are simply stretched. naming social media. we saw all the names moving down lower. we are seeing them all moving lower. the dow even dropped 80 points. janet yellen, thank you for the polls that had high hopes. she really did express some concern about housing. stuart: the day is not over yet, nicole. don: janet yellen said it will be a long time before interest rates go back to historical levels. >> she is absolutely right. interest rates are not going up. as simple as that. stuart: the dow is down 40 points. elizabeth warren is still asking questions. embracing senator elizabeth warren speaking at a campaign rally in west virginia. the capital gains tax rate and the income tax rate. does she really want to put the capital gain rate up to 40%? what is the impact if we did that? >> let's get more revenue in the door. an article today. i think she is getting on that bandwagon. it is politically helpful for her. we have to even the playing field. we talk about populous environment. we have talked about it many, many times. do you know what that it's you? it gets you reelected. stuart: the hearings have rapped on capitol hill. let me show you the big board. i have to say, it did not have that big of an impact on the market. down 37 points. you wrap it all up together and you do not have a big impact from what janet yellen had to say on your stock evaluations. free delivery for what ever you want. a pair of headphones from the local best buy. there is an app for that. we have the ceo after the break. a whole lot more, too. ♪ i had no idea i had shingles. there was like an eruption on my skin and burning. i'd lift my arm and the pain back here was excruciating. when i went to the doctor his first question was "did you have chickenpox?" i thought it was something that, you know, old people got. stuart: let's get to the chaos in the middle east, shall we? islamic militants in the gaza strip launched a rocket attack early this morning. former ceo covert operator is with us this morning. mike baker. it will not change until one side has a clean-cut victory and one side has a clean-cut victory. >> it comes in cycles. an issue that is never solvable. they decided this would be their centerpiece of the foreign-policy. it just will not happen. stuart: look. when this happened a couple of years ago, the financial markets react to it. this time around, virtually nothing. >> becoming known to the numbers of issues that we have. if people focus on this, they will realize what chaos is in libya right now. iraq is starting to crumble. afghanistan, it's fine. we have become used to the chaos. it has been growing there for several years. stuart: were you under cover? >> i worked in the region. stuart: there is not a stable society. >> no. i would argue. when you deal with the middle east and not just in our generation. we get to a point where i think the arab spring causes people to believe that somehow we will change that dynamic. i hate to say this, you sound very cynical when you say this, it is not going to happen. >> we have problems that we do not seem to be dealing with currently. though foreign-policy has created confusion amongst our allies in the middle east. they do not know what we stand for. they do not know what our position is. it just adds to the chaos. stuart: what is going to happen? is it possible? this will be one enormous blowup at one point. they are also unstable. every country is unstable. >> you raise a really good point. the rest of the region have been somewhat stable. we got used to some degree used to these regulations. we have not even touched on iran. tamp down their admissions with a nuclear weapon. they have always been good at buying time to further their agenda. they are doing what they have always done. experts are buying time to continue the process. part in the perimeters of the facilities that are used for this. look at the surreal nature. the current shia government that we have been supported for years. we have been standing by at that, syria has been conducting airstrikes in support of the current iraq a government that we have been supporting. you cannot write this. you cannot make this stuff up. the chaos that we are seeing in the region is a direct result of the lack of consistency, of proactive positioning. stuart: mike baker. former covert officer for the cia. we appreciate you joining us. janet yellen has finished her testimony before the senate banking committee. she did say that fiscal policy was a drag on the economy. she is worried about the weak labor force participation. did not make that big of a difference for the stock market. we were up 40, now we are down 40. up 17,000. johnson and johnson. down about 2%. now, this. purchases delivered. there is an app for that. it is an on-demand delivery service that allows users to buy anything. we have the ceo and cofounder joining us right here in new york city as of right now. let's see if i've got this right. i download the app onto my smart phone. i then ordered from chipolte just across the street. you deliver my tacos or whatever it is for free. that is it. >> that is it. stuart: redelivery. >> free delivery. stuart: how do you make your money? >> we make our money without people we partner with. think about it like google. you get your organic results and then there are results that are bid on. stuart: i get your app. i download it. it is free. i ordered tacos. they deliver it to them to me. you get money from chipolte. >> correct. we have not revealed any partners. yes. stuart: $100 from chipolte. they deliver to me for free. >> at the moment, no. stuart: 1%? >> higher. stuart: 2%? >> higher. stuart: 3%? >> no. stuart: you are kidding me. >> new competitive advantage. stuart: really? it is worth that much to a vendor. three-4% of the check just to hook into the customer with free delivery. >> we launch free delivery from every store in september. stuart: which cities? >> we are in new york and brooklyn. stuart: you have every intention of expanding from there? going to go public? >> yes. i want to. stuart: you want to. >> yes. stuart: suppose i would want to offer you $10 million cash. the whole ball of wax. you would not take $10 million? >> i love what i do. stuart: 20 million? >> no. stuart: 50 million? nope get out of here. any ideas on when you may go public? >> the distant future. stuart: how long have you had the app? >> we launched in january 2013. we open to the public with free delivery to the public. we are up to about 15 employees. stuart: that is it. >> we own the entire cycle. we own partnerships. we own every single piece. stuart: redelivery. that is the hope. >> yes. we talked about drones and all of these things. on-demand delivery is the new competitive advantage. there is still $15 trillion. that is going to whole foods. going to liquor stores. going to chipolte. they are competing with online people. stuart: what are we going to do? i am in the system. it is free. >> yes. do you want to do a delivery? stuart: now? i do not know how to put an app onto this thing. [laughter] >> it is not hard to sell a text in a taco. stuart: be careful. we may just do that. you are the ceo and cofounder. where did you get your capital from? >> we raised money. stuart: you have to have a chunk of money to get started. it was a pleasure. good luck. >> thank you. detroit bankruptcy. my take on that is next. ♪ really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. could help your business didavoid hours of delaynd test caused by slow internet from the phone company? that's enough time to record a memo. idea for sales giveaway. return a call. sign a contract. pick a tie. take a break with mr. duck. practice up for the business trip. fly to florida. win an award. close a deal. hire an intern. and still have time to spare. 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. maybe, just maybe, in november, we can start to reverse course. i leave you with this. can you imagine how good it would feel to get this incompetent government off our backs? in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov that, my friends, is everything. and with the quicksilver card from capital one, you earn unlimited 1.5% cash back on everything you purchase. not just "everything at the hardware store." not "everything, until you hit your cash back limit." quicksilver can earn you unlimited 1.5% cash back on everything you could possibly imagine. say it with me -- everything. one more time, everything! and with that in mind... what's in your wallet? and with that in mind... crestor lowered bad cholesterol in it's a fact. high-risk patients more than lipitor. bad cholesterol... you're going down! yeah! lowering cholesterol is a big deal, especially if you have high cholesterol plus any of these risk factors, because you could be at increased risk for plaque buildup in your arteries over time. so, when diet and exercise aren't enough to lower cholesterol, adding crestor can help. i'm down with crestor! crestor is not right for everyone, like people with liver disease or women who are nursing, pregnant, or may become pregnant. tell your doctor about other medicines you're taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired; have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. are you down with crestor!? ask your doctor if crestor could help you. if you can't afford your medication, astrazeneca may be able to help. stuart: just heard my take on the liberal politics which i think are really hurting new york and chicago. check it out please. we will repeat information. new poll from the "chicago sun times" on the upcoming mayoral race. current mayor rahm emanuel is behind karen lewis nine points. karen is in my opinion way out there on the left. so happens we have a chicago guy with us today, trey knippa. normally reporting from the chicago exchange but in new york today. did i make any sense with my diatribe of leftest politics ruining chicago. >> most certainly. she is gaining ground. she is obviously populist, which clearly lives in chicago. what is hurting rahm emanuel, headlines in the paper every single day are gun violence. trending gun violence higher. those sort of things. that what you see in the papers. look at the news. july 4th weekend in chicago was one of the bloodiest weekends in years in chicago. stuart: isn't karen lewis coming from the same place rahm emanuel on gun and violence issue? which is absolutely no guns? that is where she is coming from. >> obviously there is not a candidate in chicago saying hey, we need to reduce gun regulations. more guns on the street. nobody will say that. that is liberal city. it will not happen. it happens to be true gun regulations increases gun violence but we'll leave that for another day. she is the beneficiary of those headlines. people are upset about the headlines in the news and he is pairing the brunt of that. stuart: what about the economics of chicago? they have unpayable pen pun debt to the unions. -- pension debt. they can't manage that. no way jose. they can't do it. they don't have a viable charter school movement. a monopoly of public schools run by union essentially. karen lewis. stuart: will not change any of that whatsoever. she will raise taxes. what do you think that does to chicago? you live there? >> it is absolutely not a benefit to chicago not one by look at makeup of the electorate down there. it will not change, stuart. you and i know that. stuart: has the middle class stayed in chicago. >> most certainly have businesses stayed in the chicago? have businesses stayed in illinois? governor rick perry in texas soliciting companies to come to the great state of texas and working, simple as that. >> would you ever desert chicago. >> i can not talk on the record, i'm making plans today. i miss home. stuart: you miss miss texas. >> you bet i do. that is home. stuart: worry about the financial future of chicago is not part of the equation. >> okay, would be misspeaking i'm kind of tired if i'm paying state income taxes. sure that is absolute motivating factor. stuart: that is interesting. rick perry is working with low taxation in texas to pull you out of high taxation illinois? >> not just me. a whole lot of people. it is working. look where jobs are being created in the united states? happens to be there it is working. stuart: thanks, trey. hold on for a second. you're not done yet. the rich, they pay most in tax. they do create a lot of jobs too. our next guest says it is the poor who is going to save capitalism. here he is, john bryant written a book "how the poor can save capitalism." that is the correct title of the book? >> it is. stuart: "how the poor can save capitalism hism." go. >> they already are. half of america makes $50,000 a year or less. too much month at end of their money. 08 to 90% of the economy they make, they can't afford not to. who is buying automobiles? who is leasing automobiles. all the things we enjoy were created for wealthy, until the least of these guys got ahold them and commoditized them. cell phones we used to have a 10-pound brick on our shoulders. now africa is the first wireless continent. stuart: let me drill down how the poor can save capitalism. i suppose you want to get more money the hand of the poor is that accurate? >> i want to get more money in into the hands of american prosperity. every big business was once a small one. walmart was started -- stuart: what you want, is either a higher minimum wage? you want that. >> no. i think it is wrong argument. stuart: or do you want higher wages paid by american capitalist corporations? >> i think companies like costco, proven if you pay your workers a higher wage you get more out of them. people are happier are more prosperous. if i can only afford to pay rent and mortgage payment, rent and car note, i can't go to vacation. i come to new york city. i can't go to restaurant. those businesses are going to suffer because i'm not giving them business. it is everything is connected. stuart: are you in the camp that says the market will determine how much you earn, according to the skills you brought to the table and availability of a job? the market decides your wage level, or, are you in the camp that says, the government will tell you, tell a corporation, what they have got to pay? which side of the -- >> i'm get it done party. i'm the market, i'm the market with a heart. i'm a capitalist with a heart. i think capitalism needs a software upgrade. i think that free enterprise and capitalism is the path to go. but the current path of free enterprise and capitalism is unsustainable. when you have 85 people who have as much wealth as 3.5 billion people on planet it is not, no. stuart: that is where you're coming from. income inequality. be trait up. you got to. >> bottom line, my rich friends need the poor to stay rich. stuart: okay. do you tax the rich. >> no. that is, that is paris's model. not working for them. stuart: i'm trying to narrow it down what you want here. >> i'm trying to get back to the heart of america. small business entrepreneurship. stuart: right. so you don't want necessarily to tax the rich at a higher rate, okay? >> it is -- stuart: will you raise taxes? >> i think all, all of us could afford to pay more taxes for things that make sense. that is the not solution. stuart: wait a second. wait a second. i make good money. >> so do i. stuart: i make good money. currently i'm losing 53 cents on every dollar that i make. that is flat-out wrong. >> this is the problem with america. we get confused and distracted what we're against versus thinking about what we're for. you're not confused. stuart: not taking anymore money off me. >> you're focused on what you don't want. focus on what made america. stuart: i'll tell you what i want. golden opportunity. >> this is small business at one time. stuart: i want less in tax, which would liberate a whole lot more money coming to me which i could spend on my six children, myself grandchildren and i can expected to make jobs. >> here is what you don't want. a little island of pros pair surrounded by a sea called this country of despair. that is what you don't want. because you will win the battle and you will lose the war. if we don't -- stuart: you cut taxes for people like me, i will give you a lot more prosperity out there. >> that is the wrong argument. stuart: no it is not. >> yes it is, one example. one example. since 1978 we had small business births than small business deaths. in 2011, while we're having silly arguments we have more small business deaths than small business births. we're talking about tax breaks. we're rearranging deck chairs on titanic. right now, 350,000 startups in 400 deaths we'll become the u.k. we'll become the nation who used to lead the world. that is where all jobs come from, small businesses entrepreneur startups and shoot-ups, year three through seven. that is our focus. stuart: you have the last word. >> i will create a national network of private bankers for the poor. inside a bank branch, raise credit scores to 700. nothing changes your life more, god, love, moving your credit score 120 points. stuart: that is another last word. >> which will create taxes. stuart: for god sakes. john hope bryant, who wrote the book, "how the poor can save capitalism." do i have that right? >> you did. stuart: you might come back. thank you very much. >> thank you very much. stuart: check this out, airbus, new design for the airline seats. do you believe this? i call them the sard dean seats. we discuss it in a moment. ♪ you've reached the age where you've learned a thing or two. this is the age of knowing what you're made of. so why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain... it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to you doctor. stuart: now they are one step closer announcing a participate with a health care giant novartis. novartis is the parent company of alcon makes every contact lenses. no terms on the deal but they are getting together. that is interesting. google stock is down four bucks. that is not much on a $590 stock. alibaba and lions gate entertainment are teaming up. they will launch a streaming service in china. that will be lyon's gate entertainment world. they will be exclusion sieve to juan alibaba set top boxes. they will have exclusive lions gate content like "hunger games" and "mad men." alibaba is preparing to go public in the u.s. later this year. shares of lions gate entertainment are up. we'll be back in one moment. if you had chickenpox, the shingles virus is already inside you. you should know that 1 in 3 people will get shingles in their lifetime. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. stuart: time for the real "halftime report." we have with us nicole petallides at exchange. trey knippa still here. give us trading idea based on what janet yellen had to say today. >> you will get more of the same. learn from other countries with more the same mistakes. short the yen in japan. they have no choice but to continue printing to buy their bond. this sound familiar? they have a 16-year head start ahead of us. they had a housing bubble that burst and they're still dealing with the consequences. figure out a way to be short the yen. stuart: that is good point. figure out a way to be short the yen. not many people know how to bet against a foreign currency. contact you and they c that. next up, former obama flak, pr guy, jay carney, may be the new pr boss at apple or maybe uber. michael, you're the guy who said apple's stock would get to the equivalent of a thousand dollars a share. if jay carney joins apple does that make any difference to your prediction? >> really doesn't matter. i don't think it would be a good move though as an apple shareholder. i'm not crazy about this idea. stuart: why not? >> obama administration, obama administrations deeply polarizing. jay carney, for good or bad is the face of this. as a technology investor i prefer things to be apolitical, than to be device agnostic whenever possible. this is an administration getting a lot of flak around the world for its spying and using high-tech to do so. we'll put the face of that administration in at the top of corporate public relations at apple? i don't think that makes a lot of sense personally. stuart: very interesting perspective. michael. get back to you in a second. i want to go to nicole. i'm looking at tape, i see michael kors taking a hit. what is going on? >> downgraded. price cut from barclays, citigroup and also stearn agee. the stock is down 5.7%. that's a pretty big move. michael kors has been doing great and grabbing market share from other companies such as coach. the near term markdowns that michael kors is doing in the summertime. so we're seeing the stock take a drop today. >> we've got more movement in oil and gold. oil is below $100 a barrel as of today. gold is below $1300 an ounce. look at crude at 99.36. trey, you're big on this. what is going on with this? >> i'm surprised to see the crude action this weak. seasonally this is not supposed to be happening this is driving season. this summer time. when consumption is typically ramping itself up. i talked a lot about my macroeconomic ideas. i like productive assets. when crude oil pulls back, get involved in things that own crude oil, gas wells, things like that? pullbacks are buying opportunities in productive assets. oil wells are one of them. stuart: i will stay with you for a second. we're talking about the deficit. new numbers from cbo says we'll rumble around 500, $600 billion a year. in 2018 it explodes because of entitlements. what is going on with that one, trey? >> this is a story that is like turning a battleship. we all know it is coming. we all know what direction is heading. absolutely is nothing is being done about this. it is being dismissed. i view this as one of the single biggest risks to the markets as a whole. we're completely annoying it. hey, didn't we talk about states using those as laboratories? look what happened to the state of illinois. you have the massive overhang coming from the pensions. the economy is slowing. this will be a problem moving forward, no doubt about it. stuart: check this out please. it is a new concept from airbus, european airline maker. we're calling it the sardine seat because you're packed in close and tight and you don't have much leg room. stand up virtually straight. looks like you're standing up actually. nicole, i will go around to everybody, would you book a plane flight with a seat like that? >> a little bicycle seat. i love first class and champagne. i love private helicopter. i like a lot of trips. if this means i can take a lot of them, just start off, you know, i will sit like a just, like this. i won't even move. i won't breathe. take me somewhere hot and with a palm tree. stuart: look, i'm going to weigh in as well. i think it's a very short trip and price is very low i will take a seat like that. how about you, michael? >> i would rather not. you know, doesn't look at all comfortable. almost looks like a medieval rack. as you said, stuart, only will work for passengers if it is short haul flights, an hour or less. i see it having limited use for that reason. stuart: how but, trey? >> hear it for the free market. put something out there. if consumers want to use it will be successful. if they don't use it won't be successful. why does my opinion necessarily matter whether i ride in it or not. put it out there, if consumers buy it, let's hear it for the free market. >> you need padded butt pants in the airport for uncomfortable seats, i think somebody might buy them. >> can i ride in your helicopter? stuart: that's it, everybody, for the real "halftime report." we thank you one and all for joining us. thanks, everyone. residents of chicago's south side is openly saying president obama is worst president in history. hear what they're saying next. the stuart: people in chicago, that is the president's hometown, calling him the worst president ever. listen to this. >> with the president setting aside all of these fund for immigrants and, foresaken african-american community and african families, think that is a disgrace and barack, from the heart of 55th, in the city of chicago. he saw this as a state senator. again, as i say, he will probably go down as the worst president ever elected. stuart: well, that was pretty emphatic, wasn't it? trey knippa lives in chicago. that gentleman is objecting to money going to immigrants, hispanic people coming across the border not going to him in chicago. you may think of this what? >> i think he is one of the worst presidents but clearly for different reasons that the gentleman said. hey, isn't that the argument, don't spend it on them, you owe it to my, spend on this community. less government spending is what we need, not more of it. not one displaced to the other. his argument he is not spending enough in that area. in that area of chicago, that is a liberal hotbed. stuart: as you leave us, one individual stock pick. >> individual stocks. i like to do my homework on individual companies not individual sectors as a whole. i like force field energy. trades on nasdaq. nrg is the symbol. they're involved converting to led lighting for companies. the business model is good. i know the ceo. i met him personally. i like their prospects for future. stuart: you own isn't. >> i put my money where my mouth is. i'm a fund manager. stuart: they come in convert all your lights to modern lights. less electric using correct. >> correct. they share in the cost savings. if i come in, convert to led lights you get a 50% cost savings i share in the cost savings with you. business model is very pimple and making money. this isn't a development kind of thing. stuart: your take is next. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. introducing at&t mobile share value plans... ...with our best-ever pricing for business. ever since you are talking about that you took away from today's show, a new airline seat. aside dean seat. roger says it is a wonder -- bayadere and plowed field. kelly says of course i do it. if this is the only way i will fly anywhere in the world by want for under $10 a flight then of course i do it. i don't know where you get $10 from. i stand up for $10 to get a seat. that is it from us. here is dierdre bolton. dierdre: i will take it in, stuart varney. publishing giant hearst adds to its media empire. the first online subscription video service launched today. the ceo joins us for an exclusive conversation and toyota, ge, two of the latest planned additions to clouds toward company balks, the ceo speaking exclusively on whether the startup is successful tipping point. chinese ecommerce giant ali baba getting into entertainment. more on the deal that gets twilights, vampires and madmen in china. betty draper, bella salon will all be in china. hunger games, madmen, twilight, part of the lion's gate brand, wall s

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