>> people know what aboutly why they don't like president bind. they believe it is bidenomics that has the economy where it is. they know that it is his border policies that have us talking

about as a national issue our border at a level that we haven't seen since 1803. >> i still think the economy is on shaky grounds. we have a recession on main street. we don't know about wall street. we need to see if and when those cost. >> the improvement of recent months and my friend, my old friend jared bernstein is correct and the trouble is biden track record is the actual performance and this administration means lower affordability, higher prices and slower growth. >> this is their choice touchdown pass not enforce the current law and we can solve this and that's what the border patrol is telling us.

stuart: hard day's night, john lennon, that's the best song he ever i don't mean to >> is that true? stuart: no, jimmy, i just made it up. look at that, sixth avenue, it's supposed to be packed with people, it's empty. >> i saw a guy with 2024 glasses on this morning, is he really enthusiastic or still out for new years? it's a guy worth hanging out with. stuart: back to you in a second, jimmy, 11:00 eastern time, tuesday, january 2 and first show of 20246789 here we go. on the markets, a turn around for the dow is now up all of nine points but that nasdaq still wallowing in red ink. down 260 points back to 14.7 down 1.7%. i imagine that most of the big tech stocks are down along with the nasdaq yesterday. all are down. alphabet, microsoft, amazon, apple. looking at me taxer down $12.

why? because the yield on the 10-year treasury is going up, substantially. can we get on the screen? it's back getting close to 4% and, yeah, 395 up 8 basis points and up goes the ten year treasury yield and down comes the nasdaq, there you go. now this, the president returns from his caribbean vacation today, who is going to be the unlucky guy who delivers the bad news. there it is. the latest poll numbers are terrible. with 11 months in the election, biden is losing key constituents and the people that put him in the white house are turning on him. in 2020, biden carried 87% of the black vote and now down to 63%. in 2020, he took 65% of the hispanic vote and now down to 34%. if a democrat fails to cap which you shall the vast majority of black and hispanic voters, that democrat does not win. look at head-to-head watchup and trump versus biden among voters under 35, it's 37-33, trump

wins. that's a remarkable turn around and again, if you lose that key constituency, you'd lose the election. overall, trump is widening his lead and nbc poll asked if the election were held today, who would you vote for? trump 46, biden 44. now, we're told that polls are just a snapshot of a one time look. that's true, but they also represent trends and the trends are definitely not favorable to joe biden. what do his handlers say to him today? there's reports that he gets angry with aids when they bring up bad polling and he'll get angry when they bring umm trump going for strength social norms to strength and getting angry when they mention invasion at the border. i wonder if any of them have the nerve to say mr. president, it's time to step aside. i wouldn't want to be that guy, third hour of varney starts right now.

stuart: the afore mentioned and afore spoken to jimmy failla with us this morning. >> i'm a passionate man. to the point of that excellent monologue, in terms of someone just having to tell biden to step aside, you don't to want have to tell biden to step in any direction these days. it's never easy. stuart: that's cruel. >> you've got trump ahead in all the swing states and grant you biden is ahead in the state of dementia but this is the reality. we're coming out guns blazing. it's a new year but same old excellence, varney, we're bringing the heat. here's the issue, key constituents abandoned biden, latino voters and black voters. why? democrats don't market to those voters like human beings. they market to them based on

identity. the reality is core elements that affect the life in this country are identical for all of us. economy sucks and sucks for every race. if the border is bad, it's bad for every race. that's their problem and they've taken this other focused approach to almost like racial marketing, racial outreach and remember when joe biden went down to san antonio and called them a bunch of breakfast tacos and thought that was a good thing. jill biden called bodegas bogadas. hard to get reelect when had people are worried about getting mugged on the way to the gogada. you calling them a breakfast item isn't getting them to the polls. that's the problem, stu. stuart: how do you come up with the original stuff? >> i'm tracking this, i don't do it, it's the vessel i work in. you bring out the best in me. stuart: flattery. massachusetts attorney general found the mayor of boston,

michelle wu, her holiday party that excluded white people, the attorney general said that party did not violate state law because it's not open to the public. what do you say to that? >> good news for her they're not finding legal and they have to be careful and keep doing racist things like that and they'll send her to harvard. now, she's got to run a whole campus. i wouldn't doubt. this is an everything that's wrong with the moment we're living in right now. we are so far past acceptable mainstream racer in society and keep segregating ourselves and harvard like segregated graduations and it's such an insult to the people who delivered the progress of where we are. no white people allowed in party and segregationists and build

themselves as progressives and i don't want to hold it against her and the people of boston seeing me on january 18th. fox across america. if you can get past security, you don't have to pay. stuart: i've got a serious last question though, i mean, the biden administration epitomizes identity politics and it's failed in so many departments. is identity beginning to be the end? are we seeing the end of it? >> if they're smart, this is the end, why? because it doesn't target or prioritize any of the needs that determine your quality of life in the country. they're the same for every race. we all need jobs and want to feel safe. that's what we want. long story short, if you look at the poll numbers, nobody in the biden campaign is doing a dry january. nobody. they might have wanted it. the polls came up and they're like bottoms up, everybody. stuart: thank you, jimmy. happy new year.

>> you too. stuart: back to the markets and the nasdaq is very -- look at real numbers down 250. jeff seeker is with us today. is 2024 the yield that ai has to prove itself? has to come up on the bottom line? more profitability? this is the year of test, isn't it? >> yeah, think about it last year, stuart, last year we had two third of the gain in s&p 500 came from the magnificent seven and most of the hype over the magnificent seven was over ai. one thing if you look at those numbers, i did nothing but binge on garlic and onions this week, and i have better breath than the market. the market breath is pressed. i have big shoes to fill next to jimmy. the reality is that ai, if you take ai out and you look at other 493 stocks, they haven't

experience thud draft and now, and they're trading at multiples, never seen before in the market and one thing i'll say is ai is in fact doesn't have transformative and there needs to be a montyization of this mod and he will if they don't monetize it, one thing interesting, stuart, last week the new york times filed a lawsuit against openai and microsoft because they felt their chat bots were being trained on the classic journalist for the new york times meaning they're stealing information and there's not only a -- there hasn't been a montyization of the mod and he will may take awhile to catch up with l valuations and without ai, i think 2024 will be a rough ride. stuart: you know a lot about hollywood and bruceing and is

hollywood making a profit at streaming? you've got 67. >> only netflix and warner is coming up. there's not a profit and keep in mind, stuart, we've been talking about streaming horrors on the show for years and what the problem was is these streaming companies came out and said we're going to spend tens of billions to develop content, which they've been but unfortunately even with the content and the subscriber growth there's not the revenue and it's not profitable and if you look at hollywood in general, hollywood in general would take last year and take barbie and oppenheimer out of the equation and it was a terrible, terrible year. if they don't find a way to monetize this model and we're going to probably see hollywood struggle. stuart: jeff seeker, what a year. see you soon. president biden trying to tout the success and the market during the presidency to his

market risen and how does it stack up against president trump's market performance? we'll break it down for you shortly. the white house says it's seen real momentum for the economy in 2024 and it's going to feel in the same way. steven more on the same way. the warship and u.s. navy sunk three houthi boats. is this the precursor to a direct confrontation and aerodreaction from lieutenant gl keith kellogg. ♪ a force to be reckon with. no, not you saquon. hm? you! your business bank account with quickbooks money, now earns 5% apy. 5% apy? that's new! yup, that's how you business differently.

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stuart: iran has dispatched a warship to the red sea after u.s. navy sank three houthi boats. jennifer griffin joins me.

jennifer, is there a direct confrontation with iran coming? >> well, stuart, the tensions are certainly getting higher each day. all eyes on the red sea right now as the pentagon reopens after the new year holiday. for sitcom there was a break and it's caused shipping conglomerates to reroute their ships and stop using the red sea, that's bound to add to consumer prices and the danish shipping group issued the following statement and in cases where it makes most sense for the customers to make vessels rerouted and continue their journey around the cape of good hope and we'll continue to have all cargo movement in the red sea and the evolving situation. the latest development involves iran sending a navy ship into the red sea with eight cruise missiles and ranges over 600 miles along with recognizance

helicopters and goods in a fire fight with iranian-backed houthi vessels and denmark-owned shipping container and the u.s. navy responded to the distress call and the mh60 crews sank two of the houthi vessels and ten houthi fighters. u.s. attack helicopters launched from uss eisenhower and the missile destroyer uss graafly and the first time the u.s. killed houthis in the red sea since attacks began in november. they've postponed operations in the red sea indefinitely and today we learn that had german shipping company announced its vessels will avoid transiting through the red sea and go around the cape of good hope till january 9 before reassessing and meanwhile the u.s. continues to to come under attack in iraq and syria with

seven new attacks on u.s. forces since friday bringing the total since october 17th to 115 attacks by iranian proxies, stuart. tomorrow marks the fourth anniversary of the u.s. assassination of the iranian revolutionary guard core soleimani. stuart: lieutenant general keith kellogg joining me now. should we go on the attack? we've got maersk and lloyd suspended ands spending shipping through the red sea. that's a real situation for the whole world. should america attack iranian positions and houthi positions as opposed to just defending against them? >> yeah, stuart, thanks for having me and happy new year. jennifer hit it right on the

money talking about that friendsatfoxnews.cominged that the iranians put into the red sea and the cruise missiles on board and newer sea skimming missiles that can attack ships both commercial and navy vessels of ours and our allies as well and how you handle this is telling them up front what they're going to do and the secretary of state and he lays out the rules of engagement and this can happen into the red sea because it's clear now that they've escalated by putting this ship into frigid into the red sea and they need to say the next time an attack occurs against any shipping and their operation prosperity guardian, which we've announced, we're going to sink that frigid and any houthi vessels in the red sea and ground target. i recognize that and i recognize

there's risk to it, but we're not doing anything. we're just kind of responding to it and what you're seeing, the maersk lines and singapore shipping, they're voting with their fleet and voting with feet and vessels and putting them around the cape of good hope. they're going to have to do that and respond accordingly and if that-and-a-half value vessel of the iranian attacks shipping and i would say very clearly to the world and if you don't go there and make it very, very hard, you'll respond with people, places and equipment in the region. they haven't pulled back at all yet. stuart: serious confrontation here. general, the israeli military is pulling thousands of troops out

of gaza. is this a sign the war is cooling off? >> no, it's not at all, stuart. they're just kind of refitting and rearming the fire brigades and putting it into a different phase of operations and going to keep fighting in the region. there's going to be more specialized and more focused on hamas. i don't think they're backing off at all. when you're in a military operation like the israelis are right now, you need to refit and rearm. they need to pull them back, rest them, get them back online and put them back in there if necessary and what they're preparing for is if there's anything in the north with hezbollah and i don't think they're cooling it off as well and weir here for long term and going to include the americans and i think it's a reset and refit and rearm and they're going to keep the pressure on but at a lower level.

stuart: china named a new defense minister and the position was vacant since october. is this a significant development? >> well, any time there's a gap of leadership, it's a development and it's important and the question is what's he going to do and the real key isn't defense minister and president xi, what's he going to do and the biggest thing he's going to do in the last 48 hours is align themselves many, many closer in north korea and alliance that's continuing to grow. to me, 2024 will be a very, very contentious year and it'll be a lot of mass security issues coming to the top and we're going to have to be on our toes on this one. i don't think it's going to -- it's not a more kinder or general world out, it's much more fragments and dangerous right now. stuart: you'd favor a more aggressive approach to our enemies and rivals? last word to you. >> absolutely, stuart. you have to.

you have to show strength because they have to not just only fear you, they must respect you and i don't -- i would ask anybody listening, i don't see that in the wonderful place at all. they don't respect us or fear us and if they would, they'd be attacking bases and our personnel in position in the middle east at all. they wouldn't be seeing these attacks in the red sea. we have to reestablish the baseline and the fourth anniversary of president trump ticking out of that world deliberately soleimani and terrorist chief of iran and that was an aggressive act and we haven't done anything like that. >> thanks, stuart. stuart: back to the markets and i've got red ink down on the market and nasdaq down 1.5% and it's 25 points. we just interviewed lieutenant general keith kellogg and show me some of the big defense names and he's talking about a more aggressive stance for the united

states military. so look at these defense stocks on your screen now. they're all up, lockheed, rtx, l3 harris technologies and general dynamics all in the green on an otherwise down day. coming up, we've been keeping a close eye on the fiery plane collision that happened in tokyo this morning. we'll bring you an update with the latest headlines and that was a holiday miracle. we'll tell you about it. inflation appears to be moderating and unemployment low and consumer spending staying strong and that sounds like the pillars of reasonably solid economy and solid stock market. i'll ask steve moore if i'm being too optimistic here. that's next. ♪

stuart: on the market this is morning, minor loss for the dow, small loss for the s&p, big loss for the s&p 500. last time we checked, all the big tech stocks were down, check them again. they're still all down. amazon, alphabet, microsoft, meta down $10.

meta down 186. 10-year treasury with a lot to do with the nasdaq selloff and up five basis points closer to 4% and 392 to be precise. bitcoin star of the morning i think. 45,000 per coin and it's had a very nice rally. 76% want the government to work on issues within the michigan 85% of republicans and 65% of democrats name the economy as the top issue. larry kudlow joined our program earlier and listen to what he had to say. roll tape. >> problem is over the whole course of biden's presidency, which is what people feel, they don't have lower costs, they have much higher costs and their affordability has plunged and that's why his economic performance numbers are somewheres around 30% but the point is you've got the leading

indicator ntsb conference board down 20 straight months. stuart: that's not good. okay, now listen to this, the white house claims the economy shows real momentum for 2024. roll tape. lowering costs of insulin and this measured insulation and keeping down prescription drugs and healthcare coverage and fighting against junk fees and concert events, air fares, banks and hotels and to continue to build on the progress we've made and not just lower inflation and lower cost in see areas of consumer spending. stuart: insulin down, junk fees gotten rid of and steve moore joining us this morning. do we see real momentum in the economy the way chad bernstein did? steve, what do you think? >> hey, stuart, happy new year. there was momentum in the fourth quarter of last year and no

question about it. we saw reduction in prices and really lullish market and i'd like to make a point to amply fie what larry kudlow said earlier on the show. if you look at what's happened since biden came into office respect to the three major index, nasdaq, s&p and dow jones, they're up roughly 20% and some up and the nasdaq up a little more than that. here's the thing by my estimates, stuart, about 96% of the gain in the stock market under biden's president seizure disorders was due to inflation

and this has been over the course of the trump presidency and those magnificent seven are down today and over the last year, they account for over half of the gains in the stock market and really those seven companies like microsoft and amazon and alphabet and google carrying the market and have been for the last 18 points. >> we're not trying to do trickle down economics. that's not what the president believes in. he wants to make sure the middle class and building the economy bottom and you happen we continue to build the middle class, that's really important and we do not leavening anybody behind. stuart: steve, what do you make of that, building the middle class? >> i'm all for that.

everybody is is for building the middle class and the irony of the biden presidency has been the people really flattened by the biden policies have been the middle class. the people at the top have done well under biden and there's a reason that 78% of americans say their finances are worse off today than three years ago because they are. the working class, middle class their wages are not keeping up with the price of inflation. jared bernstein is an economist and he should not that. does this guy go to a grocery store? the success of the 1% doing well under biden is that brings calls

for tax for rich and there's a wealth tax suggestion in california and new york. you know, this is income inequality and it could be a major issue in this election campaign and i think it's a winner for biden if he plays it right. middle class has gotten screwed under his policies and all of the soak the rich policy and i help with some of the policies and tax cut and under president trump and one final statistic and it's critical and i told president trump about this about six weeks ago, under donald trump, the median family income, people in the exact middle saw $6,000 increase in their income. that's how the loss is under justice and inflation. under biden, that number is negative 2,000. tram policy's help the middle class and biden's hurt the middle class, it's that simple.

stuart: watch out for tax increases being demanded by the left because they're sure to do it. >> that'll hurt the economy. that's going to hurt the economy. it's not going to help the economy. florida as a surplus and california has high taxes reported as low taxes and explain that one, stuart. stuart: i can't explain that one to you. i just come back from florida and i've seen the results. it's a wonderful place. steve, you're all right. see you again soon. steve moore, he can be. to the markets, i see reds but the dow is virtually gnat and stocks risen under president biden but not the the same period as under president trump. biden inaugusts raying and it was up 42% in the same time

period for trump. the dow is up 21% under biden, 44% under trump. and the nasdaq, well that's up almost 12% under biden but up a whopping 62% under president trump. coming up, biden had a quick prerecorded interview on new year's eve, he was asked questions like what do you eat over the holidays? watch this. >> a lot of economicken, chicken parmesan. >> and ice cream. >> a lot of ice cream. stuart: a record number of migrants flooded over the southern border in december and many making their ways to the big cities and it's costing those cities billions of dollars. how much of that bill is getting passed onto you the taxpayer? full report, next.

♪ stuart: first trade session

for the new year and dow off 18 and nasdaq 208 points and ten year treasury is up and nasdaq is down. latest on japan airlines flight that burst into flames at the tokyo international airport this morning. it had collided with a japanese coast guard plane, five crew somebodies on the coast guard aircraft are confirmed dead and see that plane, don't often see a huge plane like that engulfed in names and miraculously, all 367 passengers and 12 crew members on that plane that you just saw in names were all safely evacuated and i'm calling that a holiday miracle. that's remarkable stuff. it was on a record setting month at the southern border. border patrol says 302 thy thousand migrants encounter just

in december. that's the highest monthly total ever. all of this as congress is still at odds over border security. new york city's mayor eric adams warns the city of reaching breaking point with migrants and blames greg abbott and madison alworth is with us in new york and migrants being forced to give notices to evacuate city housing and any other people that have gotten notices to get out. >> stuart, that's right and so far 4,400 migrant families given eviction not notices and they're given a re-ticketing center like this and going to re-apply for housing and this line wraps around the corner and housing here in your city in the sanctuary city and even when the city kicks them out, you're able to come back and get housing here and governor -- excuse me, mayor eric adams is frustrate that had migrants continue to arrive each and every day he's saying because a problem like

texas sending them here saying in a statement and texas governor greg abbott continues to treat asylum seekers and instead of dropping families off in surrounding cities and states in the cold dark of night and doing the same thing and seen by flights and leaving new york city and over 19,000 migrant haves taken the city up on that offer and top destinations for three destinations are illinois, elsewhere in new york and back to texas. hundreds are choosing california where handouts are continuing to be added to the t taxpayer bill and california extended free healthcare to migrants between the ages of 26 and 49. that's going to cover 700,000 adecisional people and the cost of the -- additional people and cost to the state is $2.6 billion etch year and ad to the deficit of $68 billion and free healthcare for migrants

being considered here in new york but the bill for taxpayers is exceptionally high and so far the city has paid $3 million towards the crisis and estimating it'll cost $12 billion. stuart. stuart: yeah and cutting services for local people. that's extraordinary stuff. madison there in the middle. thank you very much indeed. chicago's dealing with its own migrant crisis and texas governor greg abbott sent a plane carrying over 350 of them to an airport in rock ford, illinois. that's near chicago much the mayor of chicago, mayor johnson wasted no time for slamming abbott and communicating the migrant plan. since august of 2022, more than 28,000 migrants bussed from texas to chicago. the mayor doesn't like it but blames texas, not the administration. look at dow 30 and going to get a sense of the market and i get a sense there's some buying appearing now and these are dow stocks, remember, and the dow is up three points as we speak.

two-thirds up and one-third down. democrats argue that president biden is under estimated and second poll is losing to donald trump and biden is losing support for key constituents putting them in office in 2020. joe concha takes it all on next.

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stuart: president biden was given a rather softball interview on new year's eve. roll tape. >> mr. president, before we start about the new year, i'm curious what sort of holiday foods have you been enjoying over the last few days? >> anything that's put in front of me but pasta, which i love. eat ago lot of chicken, chicken parmesan. all italian food basically. >> and ice cream. >> ice cream, chocolate chip ice cream. stuart: we need joe concha. there he s. fortunate for us. joe, it was a quick interview and you can't be too critical, it was new year's eve. you don't want intense political discussion on new year's eve, do you? would you offer an excuse for the president on this?

>> i would normally. in other words, you're not going to get a tough interview from ryan seacrest because that's not his job. however, in this situation, if joe biden gave say his year end press conference like presidents do at the end of the year where he did speak to actual journalism and took tough questions and bounced out a bit, that's fine, he's only doing the types of interviews of the t-ball variety yogas showed and overall in 2023, stu, biden held three solo press conferences in 2023. donald trump held 35 solo press conferences in his final year in office and we can expect more of the same from biden in 2024 despite trailing in the polls as his handlers continue this play not to lose strategy and no way to go into an election year stuart: some prominent democrats are brushing off the poll numbers that he's underestimated. take a look at this. polls we're referring to and one

poll suggestions biden trails trump by 34 points and trails mis-panic by 5 point-blank layupses and key demographic for the 2024 win. is biden being underestimated in jot numbers seem to prove otherwise w. we talk about biden trailing trump among young voters or hispanic voters, he overwhelming won those democratics in 2020. that's a huge shift. some of the quotes from democrats defending biden were parody from the story we read. one quote side i'm bullish on president biden'reelection in 204. the chips act is strong and we've recovered from covid and we're respected in the world again. we're respected in the world right now? i think the world feels like it's on fire right now, stu. under president biden's watch, russia invaded ukraine and taliban took back afghanistan and iran attacking military

bases and iran threatening everyone and i don't know how you come to that conclusion. stuart: i wouldn't want to be the guy whom so ever it is in the white house today and the president comes back in the room, has to deliver the bad news. bad polling news and bad foreign policy news and i don't think that person, i don't to want be that person. i don't think they've got the nerve to say, mr. president, you know what, it's time to step aside. that's not going to happen. >> imagine. you solve one poll out a couple days ago and 14% of americans say they're better off financially under president biden and delivering that news will not be fun and most democrats, majority anyway don't want him to run again because he's not getting better with age. we may be looking at first one term democratic president since jimmy carter and for good reason. the bidens are still on vacation saying as we speak right now. get back to work mr. president, you've had enough time off.

stuart: as i said protectly in 2023 -- frequently in 2023, i don't think president biden will be the candidate in november of this year, and i simply cannot see him being president for another five years. last word to you. are they running out of time to do this. it's going to be a great year and fascinating year, it'll be a lot 06 fun. joe concha, you're all right, see you again soon. back to the markets, seeing green and up 50 points and the knack disease only down 191. quick look at bitcoin.

there's lot of talk about a new etf being establish the and that would allow the easy buying and selling of cryptos. you can buy and sell like a stock. that would open up the this is the that time for the tuesday trivia question. when was daylight saving time created in america, 1870, 1902, 1921 or 1918? the answer when we come back.

..

stuart: the first "varney and company" trivia question on the new year, when was daylight savings time created in america? 1870, a long time ago. 1901. i think it was 1918. and well done.

the standard time act was signed by woodrow wilson help helping americans save energy, let them take advantage of daylight hours. 1784, titled and economical project. the dow was turned around up 46 points, the nasdaq down 200. the 10 year treasury yield making news this morning, yield is going up. gold is above to grander announce. bitcoin is the star of the morning, $45,378. that is it for "varney and company". coast-to-coast starts now.