♪ . imus in the morning ♪ >> you didn't elect me to tell you what you wanted to hear. you elected me to tell you the truth. and the truth is, it will take more than a few years for us to solve challenges that built up over decades. >> last night, yet again, a plea for more time to get the economy going. this morning, a negative review for the president's speech and another bad, i repeat, bad jobs report. good morning, everyone, the news on jobs is simply not good regardless of the spin. and very few jobs created last month and an extraordinary 368,000 people just dropped out of the work force and not even

looking for a job and that's why the unemployment rate fell. and the president knew the numbers before he made the speech last night and that may account for the plea for more time. and clearly, he has not produced a robust recovery. his speech is getting at best, luke warm reviews. here we go, 60 days for the election and america is not working. and "varney & company" is about to begin. [ owner ] i need to expand to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen, offer guidance and provide you with options tailored to your business. we've loaned more money to small businesses than any other bank for ten years running. so come talk to us to see how we can help. wells fargo. together we'll go far.

>> good morning, "varney & company" viewers, today is friday, september 7th. we have major headlines today. i'm going to set the scene for you, only 96,000 jobs created last month. 368,000 americans gave up hope and looking for jobs in august. and that means, for every one person that's got a job, four people gave up on the surge and that's a very weak performance. and last night's speech, president obama says he needs more time to fix the economy. he's in the mainstream media,

the review on the president's acceptance speech, they're less than stellar. the headline in the washingtons post. quote, ma obama's hazy agenda, and politico, more negative reviews and the theme of his speech, downsizing the dream. and fox news contributor charles krout hammer says this. >> and this is a man who gave one of the great speeches of our time in 2004, and he gave one of the emptyiest speeches i've ever heard on a national stage. yes, it had cadence, but that's not striking about it. there was nothing in it. this is a man who believes that government can and should you do a lot. there's nothing in here that tells us how he's going to go from today to tomorrow. stuart: that's what he said in a word, empty. no specifics on how he would achieve his second term goals, which by the way, a repeat of the promises he made four years

ago and no specifics on his past. would you believe in the president's entire speech last night he didn't mention obamacare or the stimulus, not once, not once. how are investors going to react to this? here the future's bear in mind. dow rocked 240 and europeans announced more money and kind after stand off this morning and the dow will open a little higher, right around 13,300. and this just in from the romney campaign. mitt romney says this about the democrat convention and that jobs report. quote, if last night was the party, this morning is the hangover, end quote. and all right, everybody, we have an all-star lineup for you, ready to respond to the jobs report and president obama's speech. we start with congressman alan west the top of the hour and then kay bailey hutchinson, from unemployment to eva longoria all in the ten o'clock hour. and big tech names leading the rally yesterday. amazon and apple both coming out

with new products and investors seem to like the products and the stocks, we'll have the numbers for you after the opening bell and plus much more on president obama's speech. did it of fall as flat as people say it did. the latest on the disappointing jobs report. >> all they had to offer is the same prescriptions they've had for the last 30 years. and have a surplus? try a tax cut. deficit too high? try another. feel a cold coming on? take two tax cuts, roll back regulations and call us in the morning. all energy development comes with some risk, but proven technologies allow natural gas producers to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems...

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>> all right. here is the back drop to the markets today. 8.1% unemployment, it's down, the only reason it's down is because 368,000 people drop out of the work force and 96,000 new jobs are created. that's the number or numbers that will dominate trading today. expecting a modest day the at the opening bell. move away from the dow for a second. the real movement this morning is the price of gold. and i'm going to call this a spike, we're up 26 bucks at 1732 and this is just happening now. why? because this lousy, i'm sorry, bad jobs report implies that ben will print and that's good for

gold. we'll have more in a moment. i want to bring you up-to-date on amazon and a big splash on vetting the new and cheaper kindle e-readers and the stock soared yesterday and where are we now, nicole? >> look at amazon, right? looking like a new high here again. for amazon and obviously, the new kindle is priced lower than the ipad and so it's all about the tablet wars, up 1.1%. >> so amazon has a new high, it's up. even though the dow is opened up 20 points lower and then move to apple, an announcement of its own, five days, maybe the iphone 5 and we're hearing about a new radio streaming service to compete with pandora, i'm looking at a very small gain though. >> right now, apple is at 676, a small gain as you noted, but working on the service now which will compete directly with the internet radio company pandora and they've talked about changing a technology that they're using, but the big picture, everybody's leaning on

the iphone 5. >> bank of america calls amazon, amazon a buy rating and new target. stuart: last we checked 254. thanks, nicole. i've got a stock that's soaring. buying guns at a strong clip and the company says that's not going to change soon and raises the outlook on future profits and they love t look at that, smith & wesson up 20% this morning, 10 bucks a share. back to the big story, two headlines for you today. first, the august jobs report. and 368,000 people just gave up looking for a job last month. and greg vallier is here, i am apicking on that number, not looking alt the rate. i'm looking at 368,000, i think that tells the story of a measured america that's given up hope. your point, please? >> well, you have the right

word, stuart. you corrected yourself when you said lousy and should have stuck with that word. it's a disappointing report and obviously, too big implications, number one, the fed's got to do something next week, and i think they will have to stimulate further. and number two, this is no great prize for the obama campaign. i thought they came out of charlotte with momentum. and that momentum is taking a hit this morning. >> now, the unemployment rate, 8.1%, so, 43 months of 8% plus for this president. >> yeah. >> the president reagan was reelected with 7.3%, but the late was going down sharply. is that rate, 8%, is that the killer for this presidential reelection campaign? >> i 'm not sure it's a killer, it's a bummer, doesn't help him at all. and you correctly point out the economy was improving dramatically in the fall of 1984 when reagan won reelection and

it certainly isn't improving dramatically now. the one glimmer of hope for obama on the economy, is that still, a plurality of americans, not quite a majority, but a plurality still blame bush and that's something they're going to hammer across over the next few weeks. >> all right. greg, the preamable is this, i know you're down the middle in politics, you're not right, not left. you're strictly down the middle. you're completely down the middle. now, president obama's speech last night. "the washington post" called it a hazy agenda. politico, they say it's downsizing the dream. what's your response to the president's speech? >> i gave it an a for style and delivery. i mean, he's great, but you expect that of him. he's a rock star and he plays up that image, but when you look at the substance, it was curious, stuart. he lowered expectations, he didn't really offer a heck of a lot that was new. he conceded past mistakes and it's sort of a new obama. it wasn't as filled with bravado

as he was four years ago, but, the important thing to me is that reenergized the base and we've all talked for the last few months, i now you talked to rasmussen and other poll takesers and talk about the enthusiasm gap, i think he narrowed that a lot. i think the base is excited. i don't think he did a lot much more for swing voters. stuart: wait a second, many of the goals which he laid out, which he wants to achieve in a second term, they're absolutely no different from the promises that he made four years ago. >> right. stuart: from the deficit 4 trillion. double exports and million new manufacturing jobs by 2016. cut in half oil imports. i heard that four years ago. and it didn't happen. now, why should i be enthused by the same thing? >> yeah, i think you're absolutely right and i think their stronger line ever attack was voiced by joe biden and that's do we want to accept the policies of the rodney ryan

campaign and helped to get us in in the first place and i think that going negative is his only hope. a message of oh, i've got all of these programs, they didn't work, so i think they're going to have to go aggressively negative for the next eight weeks. >> would it work, greg, seriously, would at this stage in the game from a sitting president, heavy on the negative, do you think that would work? >> well, it's the oldest attitude politics, stuart. if you raise the other guy or other gal's negatives to a point higher than your negatives, you almost always win. and so, that's going to be the objective to paint romney as a gordon gecko tax evader with policies that are risky, that's the only hope to raise romney's next. i don't see a lot on the obama agenda that's going to resonate. >> greg, always a pleasure, we'll see you again soon. >> and regardless of your politics, you'd have to admit that the dnc was a logistical nightmare and earlier this week, they moved to a smaller, indoor

arena. and that meant that some people have tickets that might be shut out and people who got in couldn't see the stage from their seats. guess what? it's a perfectly clear night. no rain, maybe they didn't need to move from the big outdoor stadium after all. and reporting that unions jumped in to provide much needed last minute funding for the convention and unions had been holding back their money because north carolina is a right to work state, but the money crunch from the party, for the party, became just too great and former michigan governor jennifer granholm may have gotten carried away with her speech last night. >> and american jobs, all across america! and manufacturing is rebounding! why?

>> you know what that reyou minds me of? this. >> and in oregon and washington, and michigan, and then we are going to washington d.c. and take back the white house, ye-ow! >> same reaction. let's move along swiftly, the industrials are opening up flat and that's it. and in the next hour, in our next hour, some just revealed e-mails from obama campaign chief david axelrod showed how angry he was over just one gallup poll. wait until you hear what he said the gallup. what he said to gallup employees, that will be new at 10. back to nicole, please. intel shares, now, they're way down in early going, tell me why. >> they are, down over 3 prers and obviously weighing on the dow jones industrial average and talking so much about winners and intel is not one of them.

they're cutting the revenue outlook and going forward and talking about a tough macroeconomic environment and down 3%. they're not the number one loser in the dow, that's kraft. kraft came out with guidance for 2013 and looking at the north american business and the cash flow, and a disappointment. so, down 4 1/2%. >> by the way, nicole, i've seen amazon cross at 2.55 now, did you say earlier that somebody wanted-- expect it had to go to 2.81? >> i did and i actually got another analyst, lazard, who is at 300 price target. lazard at a 300 price target. stuart: a bidding war. time is money, 30 seconds worth of what else, what we're watching for you today. eva longoria, the democrats answer to clint eastwood. she wants to pay more taxes. we'll talk to senator kay bailey

ru hutchinson. are you better off than four years ago, we're going to focus on two realtors, how about your house, worth more than four years ago, california teachers are accused of pension spiking. cashing out unused sick days to boost their pensions. mark will give us some clear examples of that. and we want to know what you think. we always do. varney@foxbusiness.com is how you reach us. friday morning, seven early movers today. the software company said that apple is unlikely to use its technology. it's not going to do it. therefore the stock is down 58% and the wall street journal is reporting that apple is looking to create a streaming radio service, whoa, that hurts pandora, down 17%. better than expected profits at the gun maker smith & wesson up 17%, medical equipment maker, action ray, earned less than expected and it made less profit. down 8%. better than expected profits of the beauty products retailer,

ulta, up 7%. and the bedding retailer, mattress firm holding. what's the name of it, mattress firm holding. got that? it's disappointing, down 3%. nicole's favorite stock. lululemon, yoga pants and profits rise on higher sales, not good enough. dead flat. really. the reviews are in, they are not favorable for the president and even mainstream media outlet not giving him high marks for last night. the democrat mary anne marsh agreed. what do you think she's going to say? that's next. [ male announcer ] how do you trade? with scottrader streaming quotes,

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>> not much movement to the stock market this morning, but we are above 13,300 for the dow. here is some movement for you. it's the price of gold. so, okay, crude oil first $95 a barrel and move on to gold, please, that's where the action is. we're up about $25 per ounce at 1731. why? because today we got a very weak jobs report, which implies that ben bernanke cessing going to step in next week and print a ton of cash and a lot of that will find its way in a lower dollar which means a higher gold price. and let me review some of what we've soon on this jobs report. first of all, 368,000 people just dropped right out of the work force. and that's a huge number and that's the key number. 368,000 people, they just gave up hope, they're not even looking for a job. that means that the proportion of people of working age who are actually working is the lowest in a generation. my expression is, america simply

is not working. elizabeth macdonald my colleague at fox business, your impression. i say a lousy report and you say. i say the recovery has basically been going on and the recession ended in 2009 and we're averaging 139,000 jobs a month. so far this year. that's versus 153,000 last year. and so, if the trend is going down. and it's recovering a downward revision as well. >> on, i think it was wednesday night. bill clinton stood in front of the dnc and said no president, no president could have recovered from this recession, no president could have done it. i maintain he's wrong. ronald reagan did recover from a recession in many ways worse than the one in '08 and he recovered with sometimes four and five and 600,000 new jobs each and every month and that's what that man did. >> and richard an economist and

recession during the '80s, one of the first time citigroup got one of the first of three bailout. the debate now, are you better off versus years ago or is this now versus it could have been worse kind of argument. >> well said. >> and i want to get that number up on the screen again. the number is 368,000. i'm just stunned at this number. and let me explain something here, that's 3 68,000 people of working age, who are not even looking for a job. they're either discouraged. they're not going back to college and who knows exactly who they are, they're out of the work force and that means that america is not working. that means that the proportion of people of working age who are working, is the lowest in a generation. i think you have to go back to 32 years before you find -- it's called the labor participation rate, way, way down there.

>> in other words, the improvement in the unemployment rate is because of people dropping out. and if the labor force participation rate is held, the unemployment rate would be up to 10% to 11%, right. >> that's correct, that's correct, you can get the unemployment rate down by creating hundreds of thousands of new jobs a month. and we did not do that. we got the unemployment rate down by cutting people out of the work force. >> yeah, and you know, in other words, to get the unemployment rate down to 6%, you need to add 13.3 million jobs over the next three years, 375,000 jobs a month and 4% to 5% gdp growth where the economy needs to be. >> you've got to repeat that. if you want to get down to 6% in how many years. >> three years. >> in three years, how many jobs per month? >> you need to basically be adding 370,000 jobs each month and that's 13 million plus jobs over the next years. >> one last statistic, i've got to use this one and governor romney came out with this one. and sent it out to our producer

jake novac, for every one job creator, four people dropped out of the work force in august, that, i think, tells the story and thanks indeed and stay with us for the rest of the show, please. >> let' give you your gold report and we're at $1730 an ounce, that's 24 bucks higher. that's because of weak jobs report means that ben will print which pushes the price of gold up and it's up r9% this year, that's gold for you. another issue last night. a big part of president obama's reelecti reelection push, the youth were not watching the convention, they were watching mtv. mtv counter programming against the democrats? we'll talk about where the young stands next. ♪ i just want to give her everything. [ whistles ]

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>> all right. breaking news on the jobs front. the white house is actually putting a positive spin on what i'm calling a lousy jobs report. the white house says this jobs report, and i'm quoting directly now, is further evidence the u.s. economy is continuing to recover. charles payne, you saw that, saw the jobs report. what do you think. charles: less than 100,000, 300 almost 400,000 people dropping

out. the worst kind of spin, would have been good to have mea culpa. is the economy beginning to recover, can you say that or a spin. charles: if you walk down the street and have a penny in your pocket, and find a penny, you net worth doubles, you can have that logic, but everyone knows it's not recovering the way it should recover. stuart: mtv holding music video awards, the biggest show of the year on the same night as president obama's speech. did that draw attention away from the democratic convention? liz? >> it could have and what's key here, the gallop polls show that youth votes will not show up like in 2008 and now the polls show only 58% and that's a big swing there. >> a difference. and charles any comment on mtv? >> i'll comment on teens, the population ratio, the amount of kids, teens, white kids only 28% have jobs, black kids only 16% have jobs. and these are people who could

have a job, but remember, these are august numbers, summer jobs. stuart: don't forget, charles, please, this is evidence of the economy continuing to recover. moving in the right direction. you know we love to show you the latest polls here on "varney & company," but new at 10. not everyone loves the polls. and some just revealed e-mails from david axlerod show how angry he was at one gallup poll and wait until you hear what he said to the gallop employees. and also, new at 10. lightning congressman allen west shows us about the jobs report and in his district and state. the financial and political bases covered on this financial friday coming up. ♪

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>> e-mails so the president's right hand man and a gallon. dagen: rod furious over a poll in made it showed president obama trailing mitt romney. axelrod contacted some gallup employees who say they felt threatened. to the big board on this jobs friday i am calling it a rotten out the hope was jobs report and it had no impact on the market. the dow was up 4 points. friday's jobs day. liz macdonald already introduced. sterling stuff on the jobs report.

same story with charles payne. great stuff on jobs. what have you done? nicole: bringing new highs. stuart: google and amazon new highs. nicole: i am only here to help. [talking over each other] >> look amazon and google. rewrote remember when we launch the fox business network and google of was that the 700 mark hensby -- only to watch it go down below $300, $247 in november of 2008 and here it is. stuart: that wasn't me. nicole: and didn't say it with you. stuart: i bought microsoft at $50. nicole: apple is when your daughter -- that is another study. stuart: amazon has the new kindle and the new kindle fire and they have a new high. some say it is going higher

still. nicole: lizard has a price target of $300. we talked about the control fire and he talked about saturation and so many more people like getting the kindle fire. there is a lot of potential here. stuart: they have 20% of the u.s. market this year. thanks very much. back to the august jobs report. they give up looking for jobs last month. for every one american that got a job four people just left the work force. the white house, this is a positive report and signals that the economy may is recovering. president obama says he needs more time to fix the economy. >> you elected me to tell you

the truth. and the truth is it will take more than a few years to solve challenges that have built up over decades. stuart: republican congressman west joins me from florida. welcome back. the president asking for more time to complete the job of recovery. today's unemployment report is a signal that the economy continues to recover. what do you make of this. >> great to be back with you. and in the military college full bar. this is a horrific report. this is not about the truth. the president said simply in his first term if he could not get the economy turned around it would be a 1-term proposition. american taxpayers on a trillion dollars stimulus and we were supposed to have unemployment that would never go above 8% and

43 months of unemployment at or above 8% and you understand what is happening with work force participation rate the lowest in 31 years and the stimulus was supposed to have it at 5.6% unemployment. in south florida, palm beach county has 9% unemployment. twelve.8% unemployment in st. lucie county. the chamber of commerce, stewart and jensen beach and palm city and martin county. they do not look to grow and expand and i don't know what the president is talking about. stuart: what do you make of what the president said last night. your opinion on that. he said cut the deficit over the next ten years. create a million new manufacturing jobs in four years, cut oil imports in half

by 2020 and have 100,000 new math and science teachers. >> the stimulus was supposed to help us hire a bunch of teachers and that is not the important part of the federal government and more of a payback to the national education association and a lot of manufacturing jobs he is looking to create. not right to work states like florida and we remember what the administration did as far as going after boeing when they tried to open a plant in south carolina. the president said he would cut the deficit in half and what have we seen? four straight years of toil and dollar deficit of $1.2 trillion and when you look at fiscal year 2013 budget the debt that he did not talk about. you have $1.9 trillion in new taxes but it does not lower the debt. it goes to 53% growth to the

federal government. the practical application speaks for itself. stuart: will you get the blame? are you going to get the blame for the 9% unemployment rate in palm beach county? >> i don't think i will get the blame for the 9% unemployment. everyone knows the house of representatives we pass 44 pieces of legislation. and regulatory policies that opened the entrepreneurship and passed legislation to get energy security going in the right direction and left a lot of moratorium's we have on oil and natural gas on federal lands. of that legislation is on harry reid's desk. when you hear talk about raising income taxes on the top, small business owners, not only will yield $85 billion revenue dirtier, we spend $4 billion to $6 billion a day on the federal

government. stuart: we spent almost $10 billion the week on interest on the federal debt which would be in up in eight weeks with a tax increase on 250,000 caseloads. it is always a pleasure. >> cheers, mage. stuart: very good. i am not australian. did the top man of the obama campaign for an pollsters at gallup? according to e-mails obtained by the daily, david axelrod was angry over a gallup poll in april from april. that poll showed romney with a 5 point lead over the president. axelrod question the poll publicly. and asked the gallup staffer to explain the methodology. the gallup staffer perceived that as a threat. >> we have seen this before with the white house demanding more details about how the cbo arrives at deficit projections and a health reform debate where

private insurers like humana were asked to stop informing senior citizens what their views were on the health of impact on their clients. i have seen this before, they asked about methodology. and not a face-to-face -- stuart: a summons to a face-to-face meeting is pressure. maybe a threat. charles: i agree 100%. so interesting you mention the first cbo when they looked at the obama budget that this will create massive deficit and directed to the white house. chicago style politics. stuart: eva longoria made it clear she does not mind paying more taxes now but she is successful. listen to this. >> mayor romney paid taxes on middle-class families to cut his

own and mine. that is not who we are as a nation and let me tell you why. she needed a tax break. and eva longoria who works on movie sets does not. >> a women's state house in vegas. [talking over each other] >> we have faced higher taxes as franchise and small business but she is willing to pay it. if she was still working there. stuart: joining the company is kay bailey hutchison, republican from texas. sorry to pick up on this note commenting on eva longoria but she went right out there last night and said i am rich. i don't mind paying a higher tax rate. you are a republican and don't want anybody to pay a higher tax rate. how do you react?

>> to hear people like warren buffett and eva longoria say i will pay new taxes, happy to do it is the wrong solution. it doesn't -- if she and warren buffett paid 100% taxes it wouldn't make any difference in the deficit. what we have got to do is put people back to work by encouraging small business to hire. that was the difference that i saw in their convention and the republican convention. you heard at the republican convention people who are really standing up for the middle-class. the people who can create an economy are the small business people and you heard story after story about them getting demoralized and dropping out because of obamacare and the fines with that and constant talk of new taxes and more regulation. what we need is to hire people

and create more revenue. stuart: it your response to the jobs report this morning, president obama says it is a signal that the economy continues to recover. almost precisely what he said in a statement this morning. you are shaking your head. i said this is a very bad report to put it mildly. i think it is. >> of course it is. always for them how can we communicate better. it is not the reality. people know that over 8% employment is a disaster for this country. forty-three million people aren't working. stuart: sorry to interrupt you. i apologize for interrupting. the number we have been concentrating on is 368,000 americans just dropped out of the work force. that is an incredible number to me. >> that is an incredible number and that is what i was about to say. when you lowered the unemployment by two notches

because people have dropped out and given up is thattreally a success? is that the definition of success? it is unbelievable. like paul ryan said when our told the president the bad news he said we really aren't communicating well enough. it is the policies that are from. not a communication. stuart: you are retiring. is that correct? perhaps you are free to speak more freely. let me ask this question. do you believe that the republican party has been taken over by those extremists in the tea party? >> i think that tea party has had a positive influence in this respect. people are scared. they are scared of the deficit and the debt and they are scared that america is losing its edge of entrepreneurship and the spirit of can do that we can do this together and because they

have risen up and said we are not going to take this is a good thing. we have to channel this into a way to go forward and do what ronald reagan did and that is worked across the aisle and let's get that deficit down. president obama is saying we are just going to do what we have been doing and we are going to slowly make progress. but his actions are over $1 trillion in deficits every single year in the obama budget. he can't wiggle the deficit down by increasing it every year and that is what we have to make sure people understand. it is the policies that matter. stuart: i am very sorry i interrupted you. i really am. i know who you are. i made a point you were about to make an sorry about that. what a pleasure to have you with us. i hope you can come again soon.

>> i would love to. stuart: the internet music streaming service known as pandora down after apple said it may jump in the same business. >> it went to $9.95. this is a drop of 19%. obviously getting killed today on all the talk that apple may have a competing service which will stream music. it will be the beatles. that is the whole point. they are capering and narrowing down. stuart: i never listen to music on the radio. i am strictly news and talk. i am a boring kind of guy. tell me the biggest losers on the dow. >> look at kraft and intel both of those have been waiting on the dour and a big way with their tough out look so intel talked about a cup natural environment and also kraft gave their outlook for cash flow and

north american business in 2013 both of which are not as compelling as down arrows. stuart: thank you very much. they're cringing when they say are don't listen to much music. liz: you say you are boring. i can hear you eating your lunch you bring everyday at your desk in your office. liz: stuart: liz macdonald has an office next to mine and i bring my own food and you occasionally -- [talking over each other] stuart: here is me shouting at the tv set. [talking over each other] stuart: here are two areas you could have made money in recent weeks. silver and gold. a man who was right about those commodities joins us next. is he still in gold? everyone has goals. take the steps to reach yours, with us with real advice, for real goals. the us bank wealth management advisor can help you. every step of the way.

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stuart: big story is the august jobs report. only 96,000 jobs created. a very low number. the white house is trying to put a positive spin on it saying the economy is recovering. look at this number. 368,000 is a really important number. that is the number of people dropping out of the work force giving up hope. many people dropped out and found a new job. the markets seem to think ben bernanke will print more money in reaction to this lousy economy and lousy jobs report. price of gold soaring this

morning. not helping the market. the dow industrials dead flat at 13,294. intel earnings the dow and expect weaker sales in the current quarter. the global economy is down 3%. point 90 seconds. gold is up big today. he still thinks you should own it and stay with it.

stuart: solid gains for the

price of gold. joining the company from los angeles is bill murrelles with the virtue of selfish investing. give you credit. a couple months ago you were on the show buying gold in the 1500 to low $1,600 range. now it is 1700. are you getting out or are you holding? >> my last appearance was august 22nd and at that point i told you i had a new by signaling gold and silver august 22nd. we were heavy on gold and silver since then and we were overweight in silver. the trend is intact until and if we see gold break below 1646 or silver break below 3039 that will be taking profits. we have this trend and price objective near-term is 1780 but longer-term you can get 2,000 pretty easily and for silver $42 although longer-term at $58

price target. right now the trend is intact. stuart: you will be in and out before we get to 2,000 or $58, you are out. i don't know if you see this. most of our viewers -- gold bullion buyers buy and hold it when they think is going to go up over the next few years or months. >> gold and silver bouillon when it was trading around $300, i still own that. we will stay with the trend if it is intact. we are operating on the basis that as long as gold hold above 1646 and silver holds above 3039 we are going to stay with those until we see a topping action. stuart: you don't care whether mario monte principles, bureaux or ben bernanke print of a bunch of dollars. that is not what you look at. you look at trends on the

charts. >> the charts tell you what is going on in terms of underlying conditions. central banks everywhere are printing money and continue to print money. i don't think mario draghi's plan solve anything and ultimately they have to debase the euro to save it. the same holds true for the dollar and you believe you're going to see the precious metal move higher and part of the proof is banks have uped their purchases of gold expected to buy 493 metric tons of gold this year up from 457 times last year. they are telling you they don't want currency. they want precious-metals and of long as the trend is intact so do i.. stuart: if you own gold bullion what kind of bullion? not asking if it is can keynote chunks of the stuff. [talking over each other] stuart: standard issue? >> i personally have

philharmonics canadian mountain, and of course the good old u.s. gold coins as well. gold eagles. stuart: bill murrelles, see you again soon. the latest report from the insolvent state of california save public school officials spiking their pensions. running of their salary to retire with a lot more money. here is the problem. it is legal. can anything be done? they are really spiking these pensions. we will discuss it next. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today

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>> it certainly is a bummer and doesn't help the map all. as you correctly point out the economy was improving dramatically in the fall of 1984 when reagan won reelection. its certainly is improving dramatically now. stuart: that was a reaction to this morning's jobs report. catch more "varney and company" every weekday at 9:20 sharp. check the markets across the board. not much action in stocks. the dow is up 4. check the price of oil. it is down because we clearly have a sign of a weakening economy. trading in natural gas has been halted. a vital commodity halted for a technical trading reason. that is where it has been

halted. gas prices flat as we head for the weekend. national average at $3.82. diesel pay $4.11. bank of america and caterpillar leading the dow. give me two stock prices. nicole: both of these are higher and when bank of america -- you remember this so well. back in december remember when it broke the $5 mark under $4.92. it is up 4%. caterpillar is a great economic indicator up 3.6%. you have some winners. we talked about craft and intel. and banks have done well. >> john cheung said the state teachers retirement system does not helped employees from spiking their pensions. 26% retiring public school

executives within a year. is that how it is done. if you can move up the salary in the past year going up exponentially forever. >> the problem with the system for the past year, 9 will get to that in a moment. schools administrators for no justification at all see salaries bumped up in san francisco school districts. gil indication the retirement benefits will be. >> they're giving themselves that kind of raises. >> what the legislature came around to doing, for the last

two years or so prevention pension spiking. teachers have a hard time with salaries but they try to figure out ways napoli to prevent last year's salary, putting vacation pace or standby or sick pay or automobile allowances. stuart: trying to do that. >> they had a bill passed by the legislature that does a bit toward ps.%ion spiking and stat- the t

they were audited last year stuart: from her a check for $194,000 for unused vacation and sick days. does something similar happened with some officials in california? >> it happens on a frequent basis with these administrators and not only seeing this in the school districts the state public employees system.

they stop pension spiking but eliminated 20 of the 58 counties in california that are set out side of that so now you are starting to see these pensioners who were leaving their jobs. 77% of them just outside fresno, making more money in retirement, and annual salaries. stuart: we better end it before -- thank you very much. we do appreciate you being with us as always. >> i wish i could have helped more. stuart: we ask lots of questions on "varney and company". the better off today than four years ago? what is your answer when it comes to the value of your home? two real-estate agents from a different part of the country, location, both of them will have the same answer to are you better off now with your home than four years ago? can you guess what the answer is going to be?

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why wait? hear today what a little lyric cacan do for you. lyric from phonak. life is on. stuart: i have a news alert for you from fox news. june was revised lower today. only 45,000 jobs were added. compare that with this. in that same month, june,

173,612 were added to the nations food stamp program. charles: i think that speaks for itself. stuart: 45,000 jobs. that is all. at the same time, you have all these people on food stamps. incredible our president this morning is saying 96,000 jobs. the economy continues to recover. [laughter] are you better off than you were four months ago? your home is likely to be the biggest investment you ever made. is that investment better now than it was for years ago? i will ask both of our guests the same question. i will start with you, samantha. our you better off, the homeowners of south florida, are

they better off now in terms of the equity of their home? >> in terms of equity, the answer is no. here in south florida, home owners are down 46%. they are underwater 46% versus 2008 they were under 29%. numbers do not lie. stuart: 46% as of today. 46% under water. does that mean it has shrunk 46%? >> i am comparing two people in 2008, four years ago, they were underwater 28%. now it is 46%. people have lost equity. stuart: the number of people who are under water. now 46% and it was 28%. in your area, people are getting worse off.

>> correct. stuart: let me turn to you tim. in your area, if i asked you the same question, are you better off now, in terms of equity of your home, now opposed to four years ago. >> no. i was involved in the transaction where the seller bought the house back in 2007. he bought it for 475,000. we just sold the house and closed on it in april for 350,000. stuart: for 75 to 250. that person has lost $125,000 that they had in the home. that is are you better off than you were four years ago. our prices in your area, in your area, are they starting to move up at all?

>> we are starting to see a little stabilization in the prices. stuart: that means you come all the way down and bumping along that. >> we are flatlining. stuart: no bounce? >> we have not seen a balance as of yet. stuart: samantha, same question to you. how about home prices, in your area, south florida, i think you have started to see a bounce. >> we have started to see a bounce. single-family homes are still up. 6%. we are seeing these prices increase. stuart: less question for you, samantha. our home owns any easier to come by in your area? >> they are slowly getting better. it is not as easy, you know, as it used to be. again, that is a good thing. like we said before, you should

only be buying if you can. if you are ready, willing, and able and you have money in the bank. stuart: i will turn to tim. if i am in your area looking for a home loan, i have to have 20% down, a job, proof i have a job and some decent savings, right? >> no. we do a lot of fha loans. you are only required to have 2.5% down. the credit score you need is about 620. as long as you have good credit. you can probably get away with 660 or better. stuart: the terms of the loan are getting a little bit easier for the borrower. >> the problem a lot of people are running into is the buyer's partner. the appraiser. stuart: what is wrong with the

appraiser? >> the house has to be worth what it was appraised at. they have no emotional attachment to the transaction whatsoever. stuart: you would agree with that, samantha? >> i completely agree. we need those appraisals to come and and come in at the right point. stuart: i just got a very low appraisal on the house in new jersey. i am still very annoyed to this day. thank you very much, youtube. we have reports of young people turning on president obama. could that be true? jason monteiro is on the ground talking to those people. we will get his take next. like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade.

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with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. it's law that just makes sense. ♪ stuart: i will put this mildly, it was a very weak jobs report this morning. only 93,000 jobs created. that is not a sign of recovery. the unemployment rate was able to fall because people are so discouraged they just stop looking for work. the weak economy could mean ben bernanke could print more money. the price of gold is up. please, take a look at apple. hitting a new all-time high today. heading above 680.

it is considering creating a new streaming music service. that would compete with pandora. pandora is down 18% today. look at the drop in shares, it is likely to not use those chips. that is why it is down. ouch. ♪ ♪ the one and only, cheerios

♪ stuart: we know that young voters are a key demographic for the president in this years

election. were they inspired by the speech from the president last night or were they watching the mtv music awards? jason matera did spend the time amongst the voters. you are mixing with those youngsters. what kind of people were they, what in general with their political opinions? >> i was with the young delegates who honestly, i mean, they were just there for a good party. the speech itself was not like it was excitement about the speakers and general, certainly not barack obama. they tried to pull a fast one with eva longoria. not near the level of 2008. not even close. stuart: when you sample political opinion from these

youngsters, were they far left, i don't want to put words in your mouth, but, how far left where they? >> far left. i did not want to just get in the convention, but spend a lot of time with the activists. the hard core types. i went down to the occupy tent. i spent a lot of time with them as well. these people are so far to the left that it is actually scary to have the ability to vote, november. stuart: sla delegate interview anybody was asked would you like to make all profits illegal and she said yes. >> i was having fun with some people. i asked a guy if he would sign a

petition on my ipad. he did not even see the irony. it is remarkable. enthusiasm is not there. there was some heavy downpour in charlotte a few days before kara finnstrom's speech. it was clear. they were not able to felt that stadium. that is why they moved it. stuart: we understand you had a good time down there. good luck to you, young man. we will see you when you get back to new york. >> thank you, sir. stuart: my take on the dnc is next. here is a hand, i did not like what i saw

stuart: let's go straight at it. here is my take on the

democratic convention. i thought it was awful. and embarrassment. they seem to have taken over the party. a student got a primetime spot. she claimed pregnant women would die and emergency rooms because of paul ryan. as proof, she offered her high cheekbones. then there was doing when god was put back into the platform. more substantially, we sell bill clinton say no president could recover from the recession. after president obama speech last night, frankly i thought it was a dud. the content was a week relapse of old promises. the delivery was dole.

he seemed like two different people. i will end this with what i thought was a high point, gabby giffords reciting the pledge of allegiance. that was good. that is my take. >> i love abby giffords. she is a true american. we love her. that issue is, the focus of the convention was the president rescue the economy and he needs more time. i would say ben bernanke was not mentioned at all. putting that big cushion at the bottom of the fiscal cliff in federal reserve -- charles: bottom line, there is not a lot of credit to share and the whole place. i thought it was anti-negative finger pointing. bill clinton used the word hate a couple times to talk about the republicans feared.

stuart: interesting. we have a big highlight reel for you to sum it all up. [ owner ] i need to expand

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so come talk to us to see how we can help. wells fargo. together we'll go far. stuart: as promised a big highlight reel. >> 360,000 americans just dropped out of the workforce. they just gave up hope. he says it is a signal that the economy continues to recover. ronald reagan did recover from a recession which in many ways was worse. charles: if you're walking down the street and you have a penny in your pocket and you find another one, it doubled. >> is that really a success? stuart: do not forget, charles, please, this is evidence that the economy continues to recover. [laughter] that was good. you find a penny on the street and you have a penny in your pocket, your net worth doubles.

charles: the obama administration -- these teenagers are jumping out of the job market like crazy. 53% in 2000 were participating. it is down to 35%. on the other end of the spectrum, older women are pouring back. >> remember the recession ended in june of 2009. stuart: the old people are going, older people, are going back into the workforce. younger people coming out. that is how it is. there is a firm figure. charles: participation from 16-19 -year-olds, 36%. stuart: that is it. charles: that is it. stuart: we should have gotten into this earlier. we wl