they're -- citizens. they're being placed in cities, no way to get a work permit. if people are quickly becoming legal citizens and that process is speeding up, that is good news for the immigration system, and congress should make it ease easier to to legally come here and be thoroughly vetted to contribute to the american society. i think it's great -- maria: here's what the new york times is saying, the u.s. citizenship and immigration services took 4.9 months on average to process naturalization applications in the first nine months of the current first fiscal year compared with 1111 and a half -- 11 and a half months in fiscal 20 the 221. so their speeding up the process ahead of november 5th. thank you so much, we're going to keep a spotlight on all after that, everybody. let's hand it over to the "varney & company," stu, take it away. stuart: good morning, maria. and good morning, everyone. inflation worths -- reports can

move markets. here's what the producer report said. prices paid by business went up 2.22% over the last 12 months and up 0.1% in july. that's good newses, means inflation is cooling. perhaps nudging the fed into more interest rate cuts. all right. here's the markets' response, plenty of green out there. the dow up about 100, the s&p up3 3, solid gain for the nasdaq, up 177. that's close to 11. interest rates coming down. the yield on 10-year treasury well below 4%, you're now looking at 3.88, and the 2-year also below 4% this morning, it's t back to 3.98. as for bitcoin, not that much movement. we're looking at $58,000, 59 right now. oil, well, that is creeping up as israel puts its military on high alert. 9 throughout the week we've been told that a direct attack from iran is very close. the u.s. has assembled a huge firepower system in the region to support israel.

79.73 on oil. gold right now, $2,509 an ounce, that's a flight to the safety. poll your money with us. -- follow your money with us it's going to be a very big day. as for politics, donald trump was interviewed on x by elon musk. the the conversation was held up for 45 minutes by what musk called a denial of service attack. got back on track. it was a friendly interview. musk asked softball questions, trump dominated. it was hard for musk to get a word in. trump called harris a radical lunatic. he said if she's president, you're not going to have a country anymore. end quote. the exodus of high income earners heading to red states continues. the top destination is still florida. the average adjusted gross income for high earning households heading to the sunshine state, it's over $9000,000. -- 90000,000. and we'll take you to a barbershop in minneapolis burned

during the george floyd riots, the other than couldn't get police or firefighters to respond if quickly. governor walz gets the blame for delaying the deployment of the national guard. tuesday, august 13th, 2024, "varney & company" is about to the begin. ♪ ♪ ♪ stuart: i'll be your man. the blackies. black keys. very sorry, folk, my apologies. there you go. let's get the morning started with the latest read on inflation. producer price up 22.22 -- 2.2% in the last 12 months. i think it looks pretty good. lauren: i agree. services prices fell .2% last month. goods price, they rose .if 6%

largely because of energy which is a hot topic especially in the hot summer. on an annual level, core -- i'm sorry, core ppi, cpi actually comes tomorrows on an annual basis up 2.4%. again, cooler than expected. the market reaction, down. nasdaq up. s&p up. yields down. the fed will cut next month, the question is by how much. 50-50 chance they go half and 50% they go 3525 -- 25. stuart: okay, they're going to go down. david bahnsen is gracing us with his appearance yet again no -- this morning -- lauren: but you're going like this odd to, not that -- >> so far. [laughter] it's the early. stuart: what is it, you get a hundred e-mails a month if asking why on earth i can't understand what you're saying. >> it's probably over a hunker stuart. [laughter] everybody who's e-mailing loves you, they just want you to understand the this dividend growth thing. inflation. stuart: yeah, inflation -- >> absolutely coming down.

stuart: it's cooling -- >> very much. stuart: you approve of this? >> ppi leads cpi. producer prices go down first and then consumer price go down, so it's the all a happening in the right trajectory. stuart: good news for stocks. >> well, it's good news for spenders, for people spending must be, and ultimately for stocks because it increases profits -- stuart: and you don't care about the federal reserve lowering rates? >> i don't. they will lore rates. i agree with lauren, 25 or 50 is a 50-50 possibility for september. the interesting thing is, a 700% chance there will be 100 basis points cut out by december. i'm not sure they'll give that much, but i think three-quarters by december is very likely. >> stuart: that would get the market excited, wouldn't it? >> most of the time the market goes down company the concern when the fed starts cutting because it's already priced it in. stuart: is that what the e-mails are all about? >> no, they're limited to one

thing. stuart: okay, the bottom line is we've reported cooling inflation, that is good news for stocks. >> absolutely. stuart: case closed. stay with me, david. donald trump spoke with elon musk on exist r x last night. take us through it. lauren: it started about 40 minutes late. elon musk said there appears to be a massive ddos attack, working on it now. that means there was a ma a liberties attempt the flood if the site with traffic to so it wouldn't work. hay fixed it. 1.3 million people listened. trump said iran and russia wouldn't have messed with him. millions of illegal immigrants are criminals, and he wants to deport them. he also a said his opponent if would never take questions like he does. >> it's nice to have a forum like this where i can discuss something if at length. and, by the way, do you think biden could do this interview, do you think kamala could do this interview? [laughter] >> no, they could not.

>> they don't need elon. they don't need elon screaming out questions. it's pretty sad when you think that somebody that does this for a living can't answer a question or is afraid to do an interview. and in her case, with a very friendly interviewer -- she's got all friendly interviewers. lauren: so musk said i'm happy to host kamala. look, that's not an interview she'd be inclined to do although she should seeing as elon musk runs companies that get government, subsidies and power the future of electric transportation, artificial intelligence and space travel. the my bottom line is both sides stayed in their comfort zones. harris avoids critical media. trump doesn't avoid the media, but he also likely did not bring anybody new into his camp by what he said for two hours last night. stuart: i think you're right. musk had a message for moderates last night. here you go. >> i supported obama, i stood in line for six hours to shake

obama's hand when he was running for president. i feel like we're really at a critical juncture for the country, and, you know, i think a lot of people thought, you know, the biden administration if would be a moderate administration, but it's the not. and, obviously, we're just going to to see an even further left administration with kamala. and so this is to to people out there who are in the moderate camp so -- to say i think you should support donald trump for prime minister. stuart: the interview, however, has not been that well received by the media. there's a sample for you. "usa today," reuters, the guardian, politico, etc., etc. many outlets say trump was rambling last night. liz peek joins us. i don't know whether you saw it or not. i'm sure you've seen the the reviews. do you think that conversation with musk helped or hurt trump? >> oh, i think it helped, stuart, because look, when elon

musk, one of the smearts men on the planet, encouraged moderates to vote for donald trump? i think that that's very powerful. and, by the way, the coverage of this was to be expected, right? the left absolutely hates elon musk. why? because by publishing the twitter files he exposed the collusion between the government and social media trying to suppress conservative voices. number two, he's moving his businesses out of california, both spacex and x are moving to texas which is really exposing gavin newsom and other liberal governors as destroying businesses. and, number three, now he loves trump. what could possibly put a target on elon musk more than those three things? so i'm not surprised at the coverage. i do think it's very important for trump to be out there and for moderates, former obama voters, to say, yeah, he's the guy. and, by the way, doubling down

on this idea that kamala harris is really far left because she is. and the media is totally trying to cover that up. stuart: i want to get this in, liz, because it sounds like a plus for the republicans and trump. we've just received new fox news power ranking, this time for the house of representatives' balance of power. republicans have more districts in their corner, and analysis shows trump helps down-ballot republicans in suburban districts. liz, that sounds like pretty good news for trump, to me. >> it does. and i would say that has to do with the border and illegal immigration which not only is really hurting our cities with all kinds of migrants on the dole, etc., but i think even suburban communities are being impacted by this, stuart. but, yes, i agree. look, i think the fact that we've had two progressive, left-wing democrats, cori bush and jamaal bowman p lose their pry tire -- can primaries,

that's also very good news. the left can do what it's doing in terms of the media and pretending kamala harris is something she isn't, but when trump asks are you better off today than four years ago, the answer is very obvious. stuart: yeah, you're not. liz peek, see you again soon. the trump campaign is thanking white house press secretary karine jean-pierre? yeah. white house thanking karine jean-pierre if for her comments. what did she say that the trump the people liked? lauren: thank you for confirming there is no daylight between kamala and joe. kamala owns the border, owns inflation, owns the wars, chaos and crime over the past four years. think that's true. she is aligned with joe biden, and now she's running on promises to fix the mess that she started. i mean, that is true, and that's the lane i think trump should stick n. karine leavitt said this, and she said, and i'm quoting, electing harris would be like hiring the thief who robbed your house to put new

locks on your door. [laughter] stuart: not bad. i know you'd love to comment, but we'll get you in later, okay? i'm out of time. >> i understand. stuart: you know how it's. coming up, donald trump making this bold claim about biden stepping out of the 2024 race. >> say what you want, this was a coup. this was a coup of a president of the united states. he didn't want to leave. stuart: it was one of many topics covered by trump with musk, and charles hurt will be here to react. we got the latest read on inflation, producer prices up 2.2% in the last year. inflation is cooling. economist e.j. antoni will take us through the inflation picture next. ♪ ♪ i feel it in my bones. ♪ enough to make my system groan. ♪ well to the new age ♪

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stuart: inflation is cooling, nervous love it. we've got plenty of green on the stock market. down about 700, it had been up -- 70, nasdaq, 164 points hire. producer prices up just 2.2% in the last 12 months. edward lawrence joins us from the white house. i suspect the administration's going to the like this, inflation is cooling. >> reporter: yeah, stu. and the feeling in the white house is this represents further progress on inflation, but it does show that inflation is still there and being passed on from companies. but, again, slightly coming down. possibly we'll see tracking with cpi inflation coming out later this week. listen to the this on this report. >> indicating, by the way, that businesses are not gouging consumers, but simply passing on the inflationary pressures that they're under. but i say i think thomas is right, we need to be cautious. we really can can't ignore the fact that inflation is still the increasing. we're still facing a problem.

>> reporter: white house press secretary says vice president kamala harris deserves half the credit for this administration's successes. you said the vice president owns the successes of this president over the past three and a half years, does she also own the strug until that this president's seen like the prices up 19% since the month he came into office? >> they're partners in how they've been able to turn around the economy. the american rescue plan made a difference in bringing our economy back on its feet, made a difference on opening small businesses, opening schools. republicans didn't vote for it. >> reporter: so many economists do now say the american rescue plan boosted inflation, pushed it to the peak of 9.1% in june of 2022. inflation forced the federal reserve to make the most aggressive rate hike series in history. higher interest rates means the u.s. pays more to service the debt, consumers pay more to borrow money for houses and cars. one board governor now says inflation still uncomfortably above 2, so a rate cut should

not be guaranteed in september, yet this white house says that vice president kamala harris and president joe biden are in charge of the best economy in history. stu? stuart: the best economy in history, all right. thanks, edward. e.j. antoni is an economist, and e.j. joins us now. do we really have a handle on inflation? i don't care if it's cooling, finishes pi over the last month, the last year, do we have a handle on it? is it coming down some more in. >> well, or stu, it's certainly true that ppi came down this month, but why is no one paying attention to the fact that the last four months were revised up in today's report? in other words, inflation has been running hotter than we previously thought. now, that's not completely i out of the odder to their insofar as ppi is routinely revised pretty heavily. however, we continue to see this disturbing pattern of the data being revised worse after the fact. in terms of how is the economy doing today, i think probably the only honest thing that the press secretary said there is

the fact that biden and harris turned the economy around. you bet they did. it was growing at about a $1.5 trillion annualized rate when they took office, inflation was 1.4%. fast forward a year and a half later, and they managed to deliver two consecutive quarters of negative economic growth, what we used to call a recession, and inflation was over 9. so, yes, i'd say they turned it around. stuart: the market is predicting four rate cuts this year on the back of this cooling ppi or inflation. do you think we get four this year? >> no, i think that's very unlikely at this point, stu. i wouldn't be surprised if we do, however, get at least some cuts. but four, i think, seems like it's a bit much. look, we still have an inflation problem as andy puzder was just saying. it is incredibly and painfully event to the american consumer every time they go and buy literally anything, any good or service that they pay for. they are hurting financially. that's the only way to put it. we have a price problem in this country, and it has been caused

by failed public policy. stuart: well, goldman sachs has issued -- they've gone into politics really. they're warning about the election. they said and i'm quoting, a democratic sweep would likely result in substantial fiscal legislation that raises the tax on corporate income and other income -- upper income households. a divided congress would result in much less policy change. finish okay. e.j., would you want to live in america if the democrats get a clean sweep of the white house, the senate and the house? >> oh, stu, it depends on the alternative -- [laughter] if there's anywhere else that might still be better. in a lot of ways, america has become the cleanest dirty shirt in the laundry. look at what these people want to do. it is the scary, it is shocking. they want to not only increase existing tax rates, they want to impose new taxes. they want to impose surcharges on capital gains. they want to tax unrealized capital gains. i mean, it's absolutely insane.

imagine you're an investor or you're save if for -- saving for retirement, and every year that you have any type of gains in your portfolio p you have to sell some of it off in order to the pay the taxes on those gains. insane is the only word for what these people want to do. stuart: we'll leave it on that, insane. e.j. antoni, thanks for joining us. david bahnsen still with me. you heard the goldman warning. what you say? does it -- looking at politics right now, do you think the democrats could get a clean sweep, white house, senate, house? >> i think it's possible. let's keep in mind they had it for 2020, 20222. and yet because of manchin and sinema, they still couldn't get some of these crazy things through. so a clean sweep also makes you define a moderate democrat versus far left, and that's the concern. manchin and sinema are both going to be gone. to me, i think that the presidential race is becoming very problem mat iing -- problem

mat in. i think if president trump was running against president biden, he was going to win. right now -- stuart: you're not so sure. >> momentum is reversed can d. stuart: you're not so sure. >> there's a lot of time to go, a lot of time to go. it gets real serious after labor day, but what with i want to to continue to say for viewers and market watchers is the montana senate race is going to determine determine the senate. the republicans are picking up west virginia no matter what, they're going to win that by 30 or 40 points. they're behind in the polls in all the other states. montana is the one that could give republicans a 511-seat majority -- 511-seat majority. lauren: if democrats sweep, they will push for statehood for d.c. and puerto rico giving more very liberal senators and four new supreme court justices. >> but i do believe there are at least three democrats this won't go along with that. stuart: it's the taxes in a clean sweep. check those markets, please. i see some green, dow up maybe

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stuart: three minutes to go before we open this mark, and the nasdaq is the standout. it's up 200 topoints as we approach the opening bell. david nicholas joins us. let's talk about a black swan. do you see a possible war in the mideast between israel and iran, could that be a black swan event that just comes out of nowhere and upsets everything? >> stuart, unfortunately, it is. i think it's a great reminder of what's happening, what could be happening, unfortunately. u.s. stocks are not in a bubble. you can do everything right in atlanta, georgia, or new york city as an investor, save for retirement, and some yahoo decides to the attack israel, could lead to a global selloff. so one of the most critical impacts of this conflict is how it impacts oil prices. just look what they've done in the last week, oil's up 9 in the last week, the s&p is up only 22.5%. -- 2.5%. if this conflict escalates, it could the really get bad for

global markets, stuart. stuart: i would be a buyer of energy and defense contractors with that kind of war looming in the mideast, right in. >> yeah. look, we really like energy, defense contracts. exxonmobil had earnings recently, we're finally seeing some earnings growth. we're seeing 10% growth year-over-year in earnings for exxon, finally seeing a strong, steady forecast from them. also lockheed martin is another great defense contractor, had great earning. revenue was up 9% year-over-year, they're sitting on $1.5 billion of free cash flow. stuart, we get calls from clients all the time, david, i'm nervous, where canned i put money to work. -- where should i put money to work? if you're nervous ors energy names and defense contractors, and sit back, get a nice if dividend and see how it plays out, stuart. stuart: this market today seems to be driven by the positive inflation numbers, the cooling of inflation. is it going to the stay that way, last throughout the day? >> stuart, this is a big week.

a lot's going to be riding on tomorrow though. we have cpi tomorrow, retail sales later this week, so those are the big three. if we can hit out of the of the park on all three, i think that's good for u.s. markets. again, you have geopolitical risk, the election in the if background, outside factors that will impact volatility for the markets, but if we hit three for three out of the park, it's going to be great for stocks. stuart: if we do, could we have a melt-up? >> you know, i think the market is still uncertain with the elections, but i think you would at least see a recovery to where the market was a week ago or two weeks ago before the big selloff a, stuart. stuart: thanks so much, david nicholas. see you again real soon. ten seconds to to go before we open this market on a tuesday morning. it's going to be the up higher. again, we can never tell you how it's going to close. the backdrop to the market today is the 2.22% rise over the last year in producer prices. inflation is cooling. up goes the market. it is now open. the dow industrials opening with

a gain of, moving up, 152 points. and the vast majority of the dow 30 are in the green. they're going up. the dow's up 1400 points. the s&p -- 140 points. the s&p is up 33 points and the nasdaq, i think that shows the biggest gain of all, just over 1% higher, 16,9 is your level. show me big tech. i presume most of them are up, yes, they are. apple, microsoft, meta, amazon all on the upside. home depot reported before the bell this morning. that must have been not a very good report, put it like that, they're down 1.3%. lauren: the problem's the forecast. they're expecting same-store sales to fall 3-4% this year, three times worse than thought. the problem is the mindset, i'd go with. think about it. if you're a customer, you are likely a homeowner, and overwaiting for interest rates to fall. -- you're waiting for

interest rates. you're deferring renovations until that happens. so it's the mindset of the consumer saying i'm just going to to wait a little bit longer. i don't know if the fed cuts rates next month. if that automatically happens, people start renovating, but they're deferring those decisions. the ceo blamed not only high interest rates, but economic uncertainty for the malaise that they're seeing. so how bad is the economy? do customers start fixing things up again? stuart: he doesn't look happy. what's your problem, david? >> it's not a problem. just taking a perspective. home depot's still trading at 23 times earnings. it's at the same place it was at the beginning of the year. so i agree with you there is a question about what the robustness or consumer appetite will be going forward, but it's not falling off a cliff. it's leveling. lauren: lowe's is also down 11.33%, so they're -- 1.33%, so they're spooked also. stuart: i want to check out djt,

trump's media operation. it's down this morning, i take it it's after the trump-musk interview i -- lauren: and it was down 5% yesterday. stuart: can i interpret that the as meaning that trump's throwing the election away? if that's what investors think? the. lauren: let me, let me sum it up with this, i tracked the stock. it's down 27% since harris entered the race july 2 21st. stuart: that sums it up nicely. lauren: so this -- stuart: go on. [laughter] he's in agreement right now. >> you know what it could be, i'm just going to throw this out there, it could be that they lose $1110 million a quarter and that the company is valued at $5 billion, and i think it is worth about as much as the food cart out on the corp. canner of six earth avenue. lauren: another $16 billion lost senate quarter, revenue down, but this is a proxy for trump's popularity. stuart: that's why you began on it. nvidia. gotta the bring them up, please.

competition from huawei? lauren: "the wall street journal"'s reporting this chinese companies are testing a huawei chip that compares to nvidia's powerhouse h-100 tochip, just before the new blackwell. so nvidia can't sell that chip to china because u.s. officials don't want this tie -- high technology to get in the hands of china's military. so what a way aims to start shipping the new chip as soon as october. bytedance, baidu, china mobile ready to place orders for some $2 billion worth of the new chip. stuart: yeah. but the question is can china produce a.i. chips as a good as or better than nvidia? lauren: well, ahead of nvidia's earn, they've been on a roll. i think nvidia investors and investors who believe in the u.s. tech prowess think they can't. stuart: do you have any comment on in, vid ya? you usually do. >> it's more about the valuation. the competition is interesting, but we've always a known there's going to be competition.

you can't make that much money without some people wanting a piece of it. so they're going to face boast domestic and global competition. -- both domestic and global competition. the issue is whether a 60 totimes pe ratio can stand the up to it. with a valuation -- will the valuation hold tight, no. it's already down 20%, but i think more to go. stuart: i'm fascinated by the change in management at both starbucks and chipotle. start with starbucks. it's up 21% just on the strength9 of a change of ceo? that's it? lauren: so, yes. starbucks fired their ceo after who two quarterly revenue declines. this guy's only been in the c suite for about a year. and they poached the ceo of chipotle, chipotle's down 10%, brian nichol, to fix starbucks' problems. he starts next month. so this is very abrupt and sudden. however, the board was talking with elliott, the activist who wanted to fix starbucks' price.

so for two months they figured out, okay, nichol's going to be our guy, and then they brought howard schultz in a week ago. he said, fine, go with brian nichol. brian nichol fixed taco bell, he fixed chipotle, and starbucks' gain is chipotle's loss, but what are the issues at star bucks? the price! it's so expensive. they have got new drinks right and left. heavy got the younger consumer. they've got all sorts of ways you can shorten and order. what's the problem? the price. stuart: all right. david? >> yeah, we took a big position in starbucks a few months agoing, and i'll be the first to say we obviously got lucky here. we were not anticipating the ceo change. but there's more than just price. that's the main issue. pricing power becomes limit limited. their operational efficiencies are a struggle, and this new ceo, let's be honest, he didn't get along with howard schultz, the founder. and when you bring in a ceo to the run someone else's company, you better get along9 with the

guy you replaced. so they got rid of him. chipotle, obviously, has one of the best run companies of its time in the -- type in the world. this is a big hire for starbucks. stuart: up 20%, that's huge. lauren: and a lot of pressure on brian nichol's shoulder us. >> i'm supposed to pretend i saw it.coming. stuart: dividend picks. blue owl capital. >> so this is the one that we really increased our position in here because it had dipped after being up quite a bit this year. it's a smaller type company, but they do a lot of credit, private equity. they're an asset manager. big believe bend and they're -- dividend and they're growing at about 15-20% per year. and right now it's 4.5, 5% higher, we think it's going to continue. but you've got a dip in some of these financials early in august a, so now it's a chance to buy a little more. stuart: you might get a capital gain as well. lamar advertising. you like it. >> yeah, they had numbers last week, and rereally liked what we

saw -- we really liked what we saw. they're up about 20% with billboard traffic in airports. they're the major billboard company in the country, and again, a 4.5% dividend and capital gain to boot, so lamar is a good name. stuart: thank you, david. coming up, elon musk says our enemies will not be threatened by the harris administration. listen. >> they obviously have not been at all intimidated by biden, and they certainly will not be intimidated by kamala. and you have to really think about it in the context of global security. stuart: from a security standpoint, is trump better for america? former cia a station chief dan hoffman takes that one on. there are contradictions emerging between biden and harris when it comes to protecting the southern border. >> how long have you guys known that vice president harris does not think president biden is doing a good job at the border? she has a campaign ad a where she is saying they need more border patrol agents.

stuart: is harris separating herself from biden's border policy? brian kilmeade coming up on that. high earners are ditching california and new york, flocking to states like florida with no income tax. so the exodus continues. it's been going on for years. our real estate expert, mitch roschelle, has more to the say about that, and he's next. ♪ you had to be a big shot, didn't ya? ♪ all your friends were so knocked out. ♪ you had to have the last word last night -- ♪ so much fun to be the around ♪

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stuart: on the markets after, what a, 12 minuteses' a worth of business, the dow is now up 22323 points and the nasdaq up 180 to-- 223. favorable inflation numbers this morning, the market likes it. according to the the irs, those making more than $2020,000 a year are moving to florida more than any other state. mitch roschelle is with us morning. they're doing that because of taxes, right? >> of course.

[laughter] but i think it all started prior to covid where there was a trend of people trying, to especially with the tax cuts and jobs act where you could no longer deduct state income taxes, people started thinking about where can i get a better bang for the buck. and it hyper-accelerated during the covid period when -- and i was there. you could actually go into a supermarket, you could send your kids to school, and that just sort of put it on, put the trains on the tracks, and the train it is aren't going to slow down anytime soon. stuart: can you give me that full screen again, please? there's some numbers on it of the high income earners. there you go. look, the average adjusted gross income for households moving into florida, $907,000? informed, 845. new hampshire, 619. there's some really rich people on the move. >> and those are not on you families either even though young families are moving down there or a couple that recently got married that's going to the

s.t.a.r.t. a family. -- start a family. these are people that are well heeled. what does that say about jobs today? that jobs are so portable with the hybrid work model that you can make almost a million or dollars a year, pick up, not concern yourself with your office being on sixth avenue in new york city and go down there and live in mime. many of those are business owners or senior management in companies where they pick up and move. two friends of mine moved to florida and as part of the move, got their company to open an office for them. stuart: really? that helps, doesn't it? now, we've been talking about this for a number of years, is the flow still continuing at that level? is it still a major leagues exodus? >> it is. one of the bigger challenges with people in that income bracket is, who have children, is where are my kids going to go to school. because the mix schools there may not be as -- public schools may not be as good as they are in westchester, bear begin county -- bergin counties, and

the private schools have run out of space. there's just not enough -- so there is a move to create some more private schools, so some of the people in the private equity world have stood up new private schools so they can continue to recruit talent and grow their employment base, but that is the biggest issue, getting your kids into school. stuart: capitalism is a wonderful thing. [laughter] we got a report from zillow saying that existing homes cost about $3.50 more per if square foot than new homes. old homes cost more than new homes. that's about maintenance? >> yeah. no, so what's interesting is when that story first broke, it was the dollar amount of a new home was actually lower than that of an existing home. and when we dug into it, and i did that with you on the air, seeing that home builders were building smaller homes to keep the sticker down on the price. now what they're doing is they're using not inferior, but more cost effective building means and mends and materials -- methods to try to keep the costs down. so they're dealing with the same

supply and demand issue, and they're on the supply side. and their way of basically selling new homes which could be competing with existing homes is to try to keep the price down. stuart: they're going cheap on the material. >> you said it, i didn't. [laughter] i actually said during the commercial billion break, in all fairness. yes, they're using -- i wouldn't say inferior, but down one level for the finishes, for the counttops and kitchen cabinets. >> i think down one level means inferior. lauren: older homes have much more charm. they do. they're made better. >> but older homes hard if fixer-uppers, and you're talking about home depot, they're a lot more work. so for a first time home bowyer where you buy a house that has warn tice on everything -- warranties on everything, there's some merit many that. stuart: thanks very much. five out of the top ten wealthy states have no income tax. david, there's a political message, isn't it? >> there's an economic message.

incentives matter. people respond to pragmatic self-interest. regulations, schools, as mitch mentioned, the tax rates, all of these things are driving factors. and this is the whole point about why you want low competitive tax rates. because if you don't get 'em, people don't compete. and that's the beauty of our country. there's 50 states offering different tax rates. stuart: david, thank you very much, indeed. coming up, when it comes to our government's debt, the red ink is now a tsunami. it's likely to get worse. harris says she will announce her economic plans soon, but how will she handle department? she won't cut spending -- handle debt? our debt is exploding, and we are shrugging our shoulders. kamala harris' past support for medicare for all is becoming a major campaign issue. her aides say she no longer supports it. madison alworth has the story. she's next. ♪ ♪

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stuart: it appears that kamala harris is doing a flip-flop on her medicare policy. way back in 20219 she supported medical care for all. madison alworth is with us. madison, what's her stance now? >> reporter: stuart, we would

all love to know, but she hasn't done an interview in 23 days and hasn't officially laid out her view on health care. but we do have her record and her 2019 presidential campaign to looked at for crews. so -- clues. so vice president kamala harris has been a vocal support of medicare for all, cosponsoring the bill with senator bernie sanders in 20217 and campaigning on the platform in 2019. on the campaign trail, she called for the end to private insurance and more. >> -- understanding that access to affordable health care should not be a privilege, it should be a right. >> raise your hand if your government plan would provide coverage for undocumented immigrants. [cheers and applause] >> you as the consumer can choose under my medicare for all plan to have a public plan, a government-sponsored plan or a private plan. >> reporter: so harris has since said that that there is a role for private insurance, but one thing that has been consistent in 2019 is that she

advocated for medicare for all with a 10-year phase-in period and allowing private insurers to continue if they operate with medicare plans. now, health care insurance finance experts tell fox business that a plan like this would add significantly to the nation's debt. >> over ten years the cost would be $44 trillion. they're going to be proposing additional taxes which is fair, but at the same time those additional taxes would still leave an outstanding cost of $24 trillion. >> reporter: we've reached out to the harris campaign for clarity the on her position. we have not if heard back. but harris has run for president before, and medicare for all a was very much a part of her platform back in 2019. stuart? stuart: madison, thank you very much, indeed. i want to bet back to the market for a second. david bahnsen's still with me. we're up 250 only the -- on the dow. home builders, okay, nasdaq up 2300. dow up 240. this is all on the back of

cooling inflation. is that it? >> well, i don't think so because there was quite a lag between the ppi number coming out and when futures started moving higher, so it could be a number of things. and this is something we talk about a lot, markets don't need a real clear reason to move up 1%. stuart: if we get good news on the cpi tomorrow -- >> which we will. stuart: we will? >> interest rates are already priced in. stuart: could this market be off to the races? >> it's sheriff very expensive -- it's sheriff very expensive, stuart, i know you want it, but we were very overpriced mt. nasdaq, so i think a lott of cooling off had to happen. i think we run in place for a while. the nasdaq is up3 % per year over the last 10 years. stuart: that's it? >> that's what a range-bound market does. it makes you feel like you're going higher. stuart: all i want to do is get excited about the rally -- >> don't you get excited about the truth? stuart: the? careful, son, careful.

check the big board. take the dow winners, put them on the screen, please, so i can read them. what are the dow winners right now? yeah, we do. intel. intel still shy of $20 a share. nike, salesforce, apple at 220. united health. as for the s&p 500 winners, starbucks, builders first source, nvidia is at 113 now, vf and mosaic company. nasdaq winners, starbucks, intel, whatever that is, advanced micro devices and global foundries. we got all that? yes, we do. david, you're truly contentious, but we love you. >> i'm friendly and contentious. stuart: friendly and contentious. [laughter] be good, son. still ahead, israel on high alert. former cia station chief dan hoffman is here on that. kamala harris and her husband made donations to an anti-police and pro-sanctuary city nonprofit. kilmeade on that. trump and harris will eventually debate. democrats are already playing

defense on her likely performance. jimmy failla comes in. the media machine is fan girling over kamala harris, whatever that means. she just graced the cover of "time" magazine, but she wasn't always adored. brent bozell has more on that. the 10:00 hour is next. .. everybody wants super straight, super white teeth. they want that hollywood white smile.

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