double ♪ ♪ i've worked up a powerful thirst just listening to all your troubles ♪ ♪ and while he makes that drink, i he smoke one if you got it ♪ ♪ it might be lonely at the top, but it's at the bottom ♪ ♪ imus in the morning ♪ >> it's clear, romney has momentum, but can ryan keep it going? good morning, everyone. the romney camp goes into the debate tonight with voters moving in that direction. the latest fox poll 6 point swing to romney and the maris poll in swing states?

virginia and florida, and catching up in ohio. with 12 hours to the biden-ryan debate, if gaffe prone joe loses, that's the obama team. and if ryan loses, and don't worry says timothy geithner, america is better better than expectationed and the libyan problem not messaged once on the front of the newspaper. and that jobs number. "varney & company" is about to begin. bob...

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>> good thursday, everyone, october 11th, 2012. got it? with the vice-president debate less than 12 hours away the latest poll shows that the romney campaign continues to

gain ground and romney with a 1 point lead, a statistical dead heat, but it's a big 6 point turn around from before the debate when obama led by 5. romney also gaining in the key swing states. he leads by 1 point in virginia, according to wall street journal, nbc marrist poll in florida, 48-47 obama so those two states are a statistical dead heat, but the president has a comfortable advantage in ohio 6 points there, narrower than 8 points last week. and the polls going towards romney and later we'll go deeper into the polls and debate, with the vice-chairman, and karl rove to top off the next hour. and the big question, whether paul ryan can keep the momentum going tonight. generally, most people have low expectations for joe biden, as always, he could surprise and we're wondering if gas prices will come up. this is what biden said about that topic four years ago. >> those people who would say don't go into debt they can

barely pay to fill up their gas tank, i was recently at my local gas station and asked a guy, joey, how much to fill your tank you know his answer was? i don't know, joe, i never have enough to do it. >> when joe said that, gas was 3.17 when president obama was inaugurated couple months later. 1.84 and this morning, more than double that, 3.81 national average, what do you say now, joe biden. take a look at the watch, it belongs to another famous englishman, auctioned off by christie's next month. and with me next hour, 10:50 eastern, can you guess how much this is going for? go to facebook and tell us how much eric clapton's watch will be auctioned off for, no cheating please, no google searches, the first person who correctly guesses will get mentioned on the air next hour.

you just heard the latest polls and romney getting a post debate bounce, but in michigan, a solid union state. president obama still has a big lead. does romney has any chance to close that gap. michigan's governor rick snyder joins me in the studio after the break, i stay romney can win pro union michigan, what does he say? the opening bell is next. from currency trading for a few to a currency market for everyone. the potential of fxcm unlocked. nyse euronext. unlocking the world's potential. the potential of yelp unlocked. nyse euronext. unlocking the world's potential.

>> i see the development of a big story here, the latest unemployment jobless claims numbers came out very favorable. down 30,000. hold on a second. dig a little deeper in the numbers you find one large, but unnamed state did not report. so, we're miss rg from this report a whole chunk of people, large number of people who were filing first time jobless claims. oh, how convenient. are we back to the same situation we were in with the unemployment report last friday? we'll get into this later. check the big board, in the very early going, the dow jones average opened this thursday morning with a near 20 point gain. not good news this morning for personal computer makers. a new report says pc shipments in the last quarter fell more than 8% from a year earlier. that's the steepest drop in about a decade. nicole, start with intel and let's go through it. >> what i'm looking at in intel.

you see it up about 1/2 a%, but that's not really, yesterday we saw several analysts cutting intel and sold off some, and probably jumping a little here on that news and trying to make up from yesterday and this pc report from the two researchers, ibc and gardner, terrible. and analysts say this could be the make or break moment for pc sales and the company. >> it's possible that this came out and slipped out late yesterday, so it's already factored into the mark, so intel bounce as little. tell me about microsoft, whose shares i do own. >> that's right, and here is the other thing, the other question whether microsoft, coming up with windows 8 and the hardware they've built will that be enough to reignite pc sales, right now they're significant a tough economy, the tablet wars and sales in emerging countries are some things weighing on the pc company. >> and that, you see, nicole, windows 8 will make all the difference in the world in the pc market and i'm telling you. >> yeah, i've got muscle, i've

got microsoft muscle. i hope for you, stuart. stuart: thank you. dow jones industrials opening with a rally back above 13,400. 57 this morning. to the jobless numbers we brought. the number looks good on surface, 339,000 new claims, down 30,000, a big drop. you have to look deeper, the labor department says one large state didn't report their numbers. that really changes things. this number certainly can't be compared to any previous numbers because that one big state, unnamed, is missing. we'll likely get the real number about a week from today, maybe, when this number may be revised, but why would you put out an incomplete report? i ask you. the newest poll from michigan shows mitt romney tightening the race there. president obama still leads by 6 points, 50-44. michigan is a heavily union state, got it. the obama campaign already has a

pithy line that appeals to voters there. >> i've got a little bumper sticker for you, osama bin laden is dead and general motors is alive! osama bin laden is dead and general motors is alive!. stuart: all right, joining me now, we're honored to have with us the governor of michigan, rick snyder. welcome to the program. what a pleasure. >> great to be with you, stuart. stuart: let me put it flat-out. no way that mitt romney it win heavily unionized michigan, especially when president obama says i helped save general motors. >> michigan has been democratic in presidential elections, but 2010, i came into office, we won the house and the senate. we won the state-wide offices, and it was all focused on more and better jobs and a future for our kids and that's what governor romney is all about. washington is a mess we need solutions. stuart: we've got that, but you think that governor romney is going directly at growth and

jobs issue in a way that michigan people are listening to, really? >> i think in the last debate he did a good job, he was aggressive and got on the message, 'cause again it's not worth fighting about the past. the more he can talk about the positive programs he's looking at and need for getting the budget taken care of and paying down debt and tax reform, the messages that worked in michigan. we're the come back state in the country and done reforms in the last year and a half and working we're 50 out of 50 and proven what can be done, it needs to happen in washington now and governor romney is the guy that can get it done. stuart: another issue on the ballot in your state in michigan in november and that's a constitutional amendment which would give enormous new power to municipal unions. am i phrasing is right, that he cans accurate. >> you're right. it would be a major step back in time for michigan. stuart: and michigan could never become a right to work state. it would be out of the question unless you changed back the constitution. the constitutional law could be used to interfere in any local

decisions concerning local municipal unions. >> i call it the back in time amendment. because if you step back and look at this, it's not about collective bargaining, i've done collective bargaining with state employees and i believe it's protected in law and other fashions. this would literally go in and potentially wipe out up to 170 laws, on the books and take us back in time. again, this is a reaction to the reinvention of michigan, showing great progress and people don't like change in some cases. we need to get this proposal defeated in terms of moving forward with the state. stuart: it's that simple. if gets majority in the referendum, the vote in november. that changes the state constitution? >> that simple easy to do as that. >> that's one of the things we need to look at. we don't want to be some state that have ballot proposals, we have six different ballot proposals and the ads are misleading and i've been clear with people, and tell them how i'm going to vote. yes on proposal 1 and no on the

rest and proposal 2 back in time kind of amendment we've been discussing many others are not helpful. stuart: what do the polls show on the back in time referendum. what the polls say now. >> they're tight and making progress and moving more towards no. if you stop and think about it should you be making these kind of special interest moves in the state constitution or any constitution? at the point of having a governor and legislature and work through the process instead of embed something in the the constitution which has long-term impact. stuart: a lot of people are concerned if it does pass in michigan, where does it stop? i mean, presumably it would spread to other states, i think that's a concern outside of michigan. >> well, it is in many respects, so i can tell you it's important that we have a good dialog and why i'm actually getting out there and talking to citizens, trying to get people educated because again, the ads, airwaves are filled. now how the ads go now days on many of the issues, and they're not crystal clear clarity and fact-based so we need to get out there and get the message to people let's not go back in

time. we're going fabulous in terms of a comeback and much more to do. not where i want to be, but made tremendous progress and continue that path because it's exciting. stuart: if i live in michigan, am i bombarded by ads? >> you absolutely are. i mean. stuart: 100% of the time and-- >> you're bombarded by the ballot proposals and sick of it. >> they are, and that's why i tell people personally voting yes on one and no on the rest and my perspective and do your own homework because people should look at these, but let's move michigan forward, great progress, comeback state, but we're going to be one of the top states in the country, such a great resource and such great people. stuart: i just gave you an extraordinary commercial for the state of michigan and your administration. >> thank you. stuart: you're welcome. [laughter] governor rick snyder, thank you very much indeed. thanks for being with us. >> great to be with you. stuart: despite the signs of weakness in the u.s. economy

should we be pleasantly surprised? treasury secretary geithner seems to think so. speaking at a conference in tokyo, i'm quoting directly, from my perspective, the u.s. economy is doing significantly better than anybody had reason to expect. but on "varney & company," we don't avoid the reality. and the second quarter, economic growth was revised down to 1.3%, back then, unemployment was above 8% and we're still close to that now. no matter what the numbers tell you. here is one rebounding area, that's tough to ignore and that's housing, and we get the latest number freddie mac, rates at the top of the hour, another all-time low is possible and about 3.35, 36 last week and what's it going to be this week? find out the top of the hour. and also, at ten. realgae, the third biggest ipo this year, and joining us to talk about housing stock, realogy, a single family home in a good neighborhood the single

best investment you can make? what do you think he's going to say to that. 10:45 this morning. back to nicole, big decliner metropcs. how bad? >> we're taking a look at metropcs and sprint is part of the story, a big winner on the s&p 500 and the story is that sprint was maybe going to step in and make a bid, a counter bid for metro airport pcs. deutsche telekom had done that and there were hopes that sprint would step? . sprint said according to sources they were delaying the possibility of a bid and then we find out this morning that if fact. over in japan, softbank is in talks to buy a majority, and that's pushing sprint to a new high. stuart: i think i've got it, but i can tell that metropcs is down quite sharply and sprint is up >> big, big move. stuart: for sprint a big deal. thanks, nicole. time is money, 30 seconds, what

we've got for. the vice-presidential debate, will paul ryan keep his momentum, the the romney camp's momentum going. will joe biden make a memorable gaffe? everybody will be watching and we'll be talking about it later on the the show. the city of oakland suing the federal government. it says the feds are overstepping by trying to shut down its medical marijuana dispensaries. and i think libya and the president's handling of it is a big story. the mainstream media does not seem to agree. and brent bozell upon the media. he joins us shortly. we want to hear from you sends your e-mails varney@foxbusiness.com. thursday morning, 7 early movers, the restaurant chain ruby tuesday, the profit there disappointing, the stock is down a little. audio equipment maker, vox gives a weak outlook, don't like that. the stock is down 6%. corporate office properties selling shares to repay.

check burberry, luxury clothes from britain, weak sales in china, but up because the sales were better than expected a 14%% gain. no, it's up 14 cents, that's all, is it 14%? really? oh, we haven't got it on the screen, but it is, burberry is up 14%. and the japanese telecom softbank reportedly in talks to buy majority stake in sprint. why sprint is up. watch out groupon, ebay is testing an on-line market faced for deals with local services and boosting the rv maker winnebago's profits and ebay is up and let's see, winnebago is higher. las vegas developer steve wynn slams president obama for being anti-business and he'll be damned to let the president tell him what to do. is that how the business community feels as a whole. imus: we'll ask one of our

foremost authorities on small businesses, on the subject coming up next. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.

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call or go online now. [♪...] >> the dow jones industrial average is up 42 points. in the news background there's a squabble over the latest unemployment report. that was out today. jobless numbers down 30,000 or jobless benefit numbers down 30,000. dow jones reports one large state didn't report and skews the numbers positively and bureau of labor statistics, admits a large state had impact and won't go further tan that. dow jones stands by the story, incomplete numbers. business leaders are growing angrier with president obama by the day and here is las vegas

mogul. steve wynn says i'll be damned if i'll let him lecture me about small businesses and joshgs, i'm a job greater. guys like me are craters and don't like having a bulls eye on our backs. >> and running a corporation, and small businesses, have they just walked away from this administration? >> it was very interesting, stuart. i was with a small business think tank yesterday. and while not every small business owner had exactly the same feelings about every aspect of politics, the one thing that everybody agreed on is that they have no voice in washington. so, the small business owner, as well as steve wynn is incredibly frustrating, business is a meritocracy, they live by accountability, live by responsibility and they live by bridging gaps between people that have differing objectives

and that's a complete frustration for business owners that the current administration is not doing the same thing. >> now, is it legislation, regulation, like obamacare and dodd-frank and energy, that kind of thing? is it regulation that's really upsetting small business or is it that they just don't think president obama gets business? doesn't quite understand what motivates people to go get a profit? which is it? >> i think that it's both of those and even more. it's that there's a fundamental lack of understanding of what a small business owner goes through in this country. it is the excessive regulation, it's the excessive costs that they face and it's the uncertain economic environment. and we talked before, uncertainty that's holding consumers back from spending and holding business owners back from being able to invest in their business, and there's no permanence in the tax code and

there's no clear path for the future and there's a mountain of debt facing us, so it's not just one thing. if it's one thing, it would be an easy fix, it's a whole host of things, and that's what's creating this environment where small business owners and big business owners alike are really hungry for change. stuart: all right, carol roth, you're in chicago and come and see us again soon in new york city, we'll be waiting for you, thank you very much, carol. >> got it. it's 9:49. your gold report. where are we? i've been away for a couple of days and we're still at the high level. not quite at 1800, 1767. the new york yankees pulled off a victory last night by benching a guy and putting in a guy making a fraction of the money. does it prove once and for all that money doesn't buy you victories. ♪

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>> the yankees won in extra innings-- en that ball is driven to right.

and we are tied! did he do it again? he did! >> whoa, that was raul ibanez to hit not one, but two home runs, one in the 9th to tie the game and one in the 12th to win it. he makes one million a year and pinch hits for rodriguez, who makes 29 million. and struck out twice. what do you say, sandra smith in chicago. >> here is a shocker, who knew anybody on the yanks was making less than 5 million a year, i'm not a yanks fan, but this is a baseball fan and this is extremely rare to see two home runs past the 9th inning in post season baseball. and this was amazing. stuart: he's done it twice before. >> two weeks ago with oakland, the home run that brought them from behind, am i right, austin and last week with the boston red sox, and same thing, a home

run in order to tie the game and single walk off. and the guy is incredible. he's 40 years old. and you have to look at the likelihood-- i don't want to bring in a pay czar to figure out who gets more money. he's 40 years old and alex rodriguez, 37, and the batting life is better more him. this is his moment. stuart: are you trying to silence sandra smith trying to talk about sports, go ahead. >> and talking about leadership, this was a huge, gutsy call by joe girardi to pull a-rod and a-rod said to joe girardi, hey, you've got to do what you've got to do. might not have been able to say that ten years ago when he was a youngster, but this is huge, great coaching. >> mr. varney, a-rod to his credit was the first person to high five all of these guys when they came in, but he must be wondering, am i getting pulled again. am i going to get pulled again? >> i don't know, are you had a big a-rod fan asman? >> i'm a yankees fan and a-rod

getting more than-- >> overpaid, overpaid. stuart: overpaid did you say? another big reading on the housing market breaking for you in just a moment or two. 30-year mixed rate mortgages, watch the rates, will it keep going down? another record low? that's coming up and foreclosures dropping as well. is this a real genuine housing rebound? we're talking more about the vice-presidential debate of course, can we expect joe biden to attack paul ryan? and who has more to lose? and the chairman of the republican national committee joins us next. can your hearing aid do this?

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stuart: new at 10:00 isn't this an extraordinary time to buy a home? the latest reading on the housing market from freddie mac with a first-rate mortgage rate. it hit another all-time low. the new rate in just a moment. foreclosure is dropping to the lowest level since 2007. the fed stating of the housing market is improving and helping the overall economy housing a big theme this hour. i haven't for you. freddie mac 30 year fixed-rate mortgage 3.39%.

that is up from 3.36. i have lived in america 40 years and never thought i would see a 30-year fixed-rate loan offered for 3.39% but today it is. check the big board we are 30 points hire for the dow industrial average. here is the thursday morning company. sandra smith is here with david asman and nicole petallides on the floor of the stock exchange. let's get to this. let's talk housing. 339. the fed says housing is helping the overall economy. foreclosure is down to the lowest level since 2007. i say this is the best time to buy the best investment and that is a single family home in a good location and you say? sandra: i agree with you but we are not seeing robust growth in the housing market and i agree with jack welch that if we are seeing unemployment dropping by

0.3% to 7.8% in that period of time we should see the economy growing at breakneck speed. we should see the housing market picking up blowing us out of the water with record low interest rates. we are not seeing that. stuart: it is an improvement but very modest. dave: we are beginning to see the end of these government programs that have been propping up people so finally moving that inventory of housing which has been stuck for four years, finally beginning to move out. we are not seeing creation of new homes. we have 80,000 home contractors in the united states compared to 125,000 in 2007. we have a lot more jobs to be built up if we are going to increase the housing market and so far we have not seen that. people are moving the inventory. they are not creating new housing. that is why prices are going up. supply is down. stuart: i had a conversation

with chief economist at the national association of realtors the other day. lot of money coming in to housing. it is investors' money. not people buying their first home. a lot of people paying cash. that is why prices going up in nevada and phoenix and south florida. dave: supply is so low. stuart: still the best investment you can make. cheap is that search today in america. sandra: the lesser of other evils. where else can you put your money? people are afraid of the stock market. look at commodity prices they are already on top and where do you put your money? stuart: real-estate got money. i want to go to nicole. reality, a real-estate based company. just started trading. tell me about it. nicole: this is a really big deal. it is the third largest ipo in u.s. this year. the stock has opened, up 22%. want to know what they did? so do i.

i am going to explain because i dove into this. what they do is they own century 21, coldwell banker is a real-estate company when you buy a house. they own those and how do they make money? when those franchises make money, really gets a portion. they're the franchiser. that is, generate revenue from century 21. stuart: it just started trading 10 minutes ago and unlike other ipos this in the early going has gone straight up, up 20%. nicole: unlike some ideas and unlike others. it is a winner and we will have the c e o on in this hour as well. richard smith, the ceo will be joining us on "varney and company". you will be able to ask him. stuart: interesting company and interesting moment in time.

thank you very much. we are eagerly awaiting the vice-presidential debate. many expect joe biden to go straight on the attack, to go after paul ryan. women, medicare, taxes. how will paul ryan handle what i think maybe some sharp attack lines from joe biden? joining us is the r in seat chairman and longtime friend of paul ryan. you have known him for a long time. you know the man personally. if i am right and joe biden goes right after him with sharp edges that tax how do you think paul ryan will handle that? >> i think paul is going to do great but joe biden is going to come in and try to make ground for the belly flop barack obama performed last week. i think joe biden has been doing this since the 1900s. he is an experienced guy. i don't think we are taking them lightly. no one should take joe biden lately but i do believe there is

nobody better in america that can break down and the fans and our economic plan than paul ryan. stuart: right. did you just say joe biden has been at it since the 1900s? >> i think i said the early 1900s to be exact. [talking over each other] stuart: to point out joe biden's age. >> we believe joe biden brings an extraordinary amount of experience to the table. he has been in 19 -- presidential debates and one obviously vice-presidential debate. he is experienced. both of these guys are genuine and authentic guys. it will be an interesting night. for people who love politics will be a fun night. stuart: my 16-year-old daughter is bringing friends to the house tonight specifically to sit and

watch paul ryan and joe biden go at it in the debate tonight. 16-year-old daughter of mine. >> i think it is one of the political debate that for two kinds of people, but both genuine talented people. it will be exciting. i think joe biden is going to make up ground tonight and i expect all to do quite well. stuart: thanks for joining us. we will see you again soon i trust. thank you. we got another report from the labor department this morning and once again it is providing more questions than answers. the number looks good on the surface. 339,000 people filed first-time jobless claims. the big drop down 30,000 but the dow jones reports one large state didn't report their numbers. that would completely change things. joining the company from

washington, the media research center. i want to talk about this for a second. this could be another emerging numbers story from the administration. this could be the administration massaging the news. why do you have to put out an incomplete report? because it is favorable to the administration three weeks before the election. what is your take on it? >> everything from the obama administration and the long run is spin. everything is to his reelection. they will push that which advances this and omit that which doesn't. that may be politics as usual. the media are doing the same thing. when the jobless rate numbers came out for the last ones came out there was some head scratching. how do we go from 8.1 to 7.8? nobody, absolutely nobody, not

even your most left-wing economists predicted that was going to happen. that opened the door for skepticism. there had been none of that from the media. how many reporters are going to report on the one state that didn't give its numbers? no one will touch that. they have the same span of the obama administration. stuart: when i read the new york times, i got it right here and looking at it right now i could not find one mention of that little problem we have been having in libya. it is looking like a bigger problem for the obama white house but it is not on the front page of the new york times. it is not there. according to the latest fox news poll 37% of voters approve how the president is dealing with libya. 46% disapprove. i am astonished at the me via's reaction to what writing is a very big story. >> this is the astonishing in the sense that this is a huge

story. you have evidence of a massive cover-up of this whole narrative about a video causing these riots was a lie. the hearing that dan i see will be holding will bear that out. this was a lie by the administration. this is massive. in b.c. just started covering at last week. abc last night, diane sawyer interviewing barack obama interviewed him for four minutes and as every question imaginable about his debate performance. even invited him to say that mitt romney was a liar. the you know how much time she spent on benghazi? not one second. stuart: never mentioned? not mention that all? >> in four minutes interviewing the president she never asked a single question about libya. stuart: i want to move to the big debate tonight.

when i look at the media first thing tomorrow morning regardless how the event went to night what am i going to see tomorrow? >> joe biden back, the obama administration back. what you said was spot on. it is going to be policy versus politics. it is going to be intellectualism versus bombast. what will be reported tomorrow morning will be the obama team has its mojo back. and it is going to happen -- the exact same thing will happen in the next presidential debate no matter what happens because of foreign policy, matt romney is going to win substantially on the substance but the spin the next day is going to be obama back. i will bet a million dollars right now. stuart: watch out. we will be watching out for a you will be too. always a guest of hours and thank you for joining us. don't miss neil cavuto. he anchors our coverage tonight. fox business special report on

the vice-presidential debate starting at 8:00 eastern on fox business network. now take a look at this. what do you think this is? that is eric clapton going up for auction next month on this set at 10:50. i want you to guess how much is going for? no cheating. give me your gut call on this. posted on our facebook page. how much do you think this is going to go for? first person with the correct answer would have their name mentioned later this hour. dave: not going to give them a watch? stuart: new at 10:00 carlos slim, the richest man in the world and a huge obama donor gets richer every time the u.s. government gives away a phone to a poor person. his company makes $10 per phone on the deal. their eyes a crony capitalism? dave: he is the wealthiest man

in the world but is the epitome of crony capitalism. he made his first billion as a result of the privatization of mexican telephone company that carlos privatize. better to privatize and keep it in government hands but all these special deals nothing was ever proven but there are a lot of rumors in mexico that there was a special deal made to give him what he got. crony capitalism is the way people do business in mexico. stuart: what about this $10 per phone? dave: the question is whether someone accustomed to doing business in the banana republic way will find it easy to do business in this way. i would suggest we are moving closer to crony capitalism over the past three or four years in the united states and he brings -- sandra: not just $10 on the phone but they give those phones -- [talking over each other] stuart: all right. open california going to bat for people who smoke pot. this city is suing the federal

government trying to keep a marijuana dispenser reopened. oakland said the fed overstepped their authority. what does judge andrew napolitano say about that? find out next. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

stuart: more ammunition for people who mistrust the economic reports from the government.

weekly jobless claims at $350,000 down $30,000 to the lowest level in four years. accused times next to the number. one big thing did not report the numbers. we don't know which state it was or what the numbers would have been but we may find out next week when the numbers are likely to be revised higher. look at this. dow industrials up 50 to points close to 13-4. two ipos this morning. realogy of the biggest realtor's names. stock sharply higher. and shatter. that stock, online photo database. need a photo for your database? also up big this morning. all right, watch now. the judge is with us in 90 seconds. b

wooohooo....hahaahahaha! oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no youe not.

i know. you ow ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. stuart: kelloggs recalling three million packages of its many weeks serial. possible contamination of methyl match in the factory. expects to recall the cost of 20 or $30 million. share price of kelloggs no change up $0.36. the city of oakland, calif. suing the federal government saying the fed's are interfering with their right to monitor marijuana dispensaries. judge andrew napolitano is here. not sure i got that right. the fed is saying shut that thing down. correct? judge napolitano: the fed are saying that. this is a very bizarre area of

the law because president obama stated publicly that he would not have his justice department interfere with the waffle dispensing of marijuana pursuant to state law in places where it is lawful. in montclair, new jersey, not far from where you live and not far from where i live the state of new jersey has of a rise the establishment of the dispensary of medical marijuana and the federal government is not interfering. in oakland, calif. a similar dispensary is the target of this lawsuit. stuart: y? judge napolitano: we don't know what the federal government which outlaws all marijuana to everyone under every circumstance notwithstanding what the states do has decided to look the other way in the case of new jersey but enforce the law aggressively and literally in the case of california. they don't have to give a reason why. stuart: can the oakland people go to federal court and say you

feds are discriminating, not going after in new jersey -- your going after a. judge napolitano: so much more about the constitution than you are willing to admit. and violation of equal protection. how can you treat them unequally? how can you let them survive and thrive but put oakland out of business. people protection clause as interpreted by the constitutional scholar stuart varney requires the federal government treat similarly situated entities and a similar way. stuart: how can they get away with it? judge napolitano: can't get away with it depending what the federal judge in california will do. they have invoked another power to demolish this oakland facility. the power of condemnation. that is the same power of firms by the supreme court in his infamous case, the federal and state governments can take any real estate the one for any

real-estate they want. dave: you are bearing the lead for a second. why is it california, the most liberal state in the country is coming down harder on this marijuana facility -- [talking over each other] stuart: it is not california coming down on it but the fed's. [talking over each other] dave: you have a chance of coming down hard in new jersey, the fed does with the governor that is a republican and coming down harder in california where the demo of -- wire they focusing on the democratic states rather than republican? >> do not know the answer to this until they give a rational explanation after election day. [talking over each other] judge napolitano: for people who need medical marijuana and the literature is serious and not disputable that this helps ameliorate pain. the feds can enforce federal law or not enforce federal law

whenever they want unless the federal judges -- [talking over each other] dave: is not 100%. stuart: don't bury the again. [talking over each other] judge napolitano: tell me the fed -- [talking over each other] stuart: i have been lucky. the debates are gripping the country. even my 16-year-old daughter will be glued to the tv tonight. my take is next. new pink lemonade 5-hour energy?

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>> you know how the ads go on these issues. they are not crystal clear clarity or fact based. we need to get out there and get the message out to people that let's not go back in time. we are working on a come back. stuart: that was governor rick schneider of michigan in our last hour. catch more of "varney and company" weekday mornings when we start at 9:20. time for a market check. where are we? modest rally. 13-4 on the dow. things are not as bad as they fear. talk to. >> we reported ourberry were giving a profit warning and low

sales. now there revenue beat the st.. those lowered expectations. a jump of 14%. they are seeing slower sales over five years and historically revenue. stuart: do you have any item of clothing with that caption on it? nicole: does it matter? stuart: it does matter. do you have anything wardrobe with it? nicole: yes. stuart: a gift. sandra has something. sandra: i have are golf shirt. stuart: my wife has -- dave: wire you asking these questions? stuart: i'm interested. i am and englishmen. i don't wear it. nicole: the other thing is barberry outpaced louis the time -- louis baton. stuart: i will never start

anything like this again. very interesting. what is the price of gold? it is $17.71. check the price of oil. $92.58 up $1.53. here is my take on the debate. i think the country is fascinated by them. last week sixty-seven million watch the obama/romney battle. now another sixty million or more in the clash of the viets. and a town hall style debate when the president will respond to the people and foreign policy. debate with the libyan terror debacle front and center. i can't remember this level of interest in politics period. hold on. there is more. and in my opinion we are watching the unraveling of a presidency and the president's image. this is something new and we are glued to what is happening. for four years mr. obama has enjoyed the unqualified support and protection of the media.

in the space of a week that has begun to melt away. suddenly he is challenged and the emptiness of his policies and his leadership have been exposed. it has happened very quickly and the debate last week did it. i don't know who will win tonight. i am pretty sure the media will rally around their team and somehow portray paul ryan as a villain and joe biden as honest joe. but we are watching. we are not relying on biased media. my 16-year-old daughter has invited several friends to the house tonight specifically to watch the debate. she does not read the new york times. she does not watch tv news but she is going to watch tonight because she knows something is going on as do we all. i will have a full report from her on this show tomorrow. from investing for the first time...

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♪ stuart: timothy geithner says the u.s. economy is doing significantly better than anyone had reason to expect. it what do you respond to the treasury secretaries statement? >> what is most important about

these comments is not what he said, but where he said it. he made those comments while in tokyo. should we learn from the mistakes that happened in japan. shunted we learn that the larger role of government and the larger debt that the government takes on that it slows an economy. it is the exact same size now as it was in 1992. after the real estate bubble popped. they have kept interest rates at zero. still, they cannot manage to grow they are economy neared. stuart: secretary geithner is on his way out. the japanese economy is the same

size today as it was in 1992? >> here is an inconvenient truth. the higher the debt gdp ratio gets on a government, it becomes a hindrance to economic growth. all the money that is left is dead money. just like the money that is being left to our government. it becomes a headwind to an economy. aren't we seeing that in the u.s.? stuart: yes, we are if you are asking. the age gap between the vice presidents. this came up in 2004. the next the first time i ever met you was when you walked on the stage tonight. stuart: because the general was a much younger man.

i have a bone to pick with you. i think governor romney wins with five-point in the november election. >> i hope you are right. i think the race will be closer than that. the president is spending a lot of money. he is hammering romney in the battleground states. it is hard to be and income but president. particularly one that takes off after the other party had a white house for ten years. the last time before jimmy carter was grover cleveland. stuart: i remember. [laughter] seriously, what your polls and although polls -- >> not my polls. stuart: there is something they are not measuring and that is the number of people who will absolutely definitely turn out

and vote. when you pull on that basis, will you absolutely can't definitely vote, a large group says i will vote for president obama. >> first of all, the uncle but president of the united states has to be above 50%. the last number for bush was 53 and he got 51. the people in a close election, your detractors are likely to turn out more than your supporters. if you are an undecided voter today and you have not been convinced by president obama by now, you are likely to break

against the president which will in essence bring down the president number and raise romney's number. romney is in very good shape. as of the last afternoon, he was ahead by 1.1. we have not seen the end of the swing. the debate was on thursday. monday was a holiday. pollsters try to get their polls done by sunday night. stuart: the full impact would have not seen that yet. >> i think it will be five, maybe 5.5 points when. even more important than the number is romney's image. we have seen lots of evidence that he came off as authentic. >> do you think there are any

democrats? so far maybe 3% going for romney. might those old reagan democrats that we like to call them maybe swing? >> are there some democrats that may say that economic issues are overwhelming my desire to hang in our -- [ talking over each other ] romney's numbers are among independents. all of these polls after the debate show leads up to 20-point among independents. the enthusiasm at the end of the day, there were so many people -- when you have a million dollar donor to an obama super pack saying he was trying to throw the match how you have a lack of enthusiasm. we are seeing it reflected in the early voting numbers that

began even before the debates that the writ -- republican enthusiasm is better. [ talking over each other ] stuart: of those votes cast early, there is a clear lead among republicans. >> in most instances. in iowa, it is democrat. the democrats in iowa are pretty good at turning out the vote early. if you look at apples to oranges as comparisons, it is one thing. if you look at apple's to apples, that is different. battleground county has been going for democrats in recent years. the democrats had a huge early vote advantage for years ago. now the republicans. stuart: in that county? >> in franklin county.

stuart: last one, if i may, real fast, how many people voted for mccain last time around, but this time will vote for obama? >> virtually, no one. it is so close to zero. a lot of people say i am undecided and i voted for obama + or i am going for romney this time. stuart: thank you very much, sir. we have the ceo of a real estate company. i am sure he will agree with me when i say a single-family home in a good neighborhood is the best investment you can make right now. i am sure he will not give me an argument, but i will try. back in a moment. ♪

double mogul. stuart: the modest rally for the markets. remember that dow has fallen nearly 400 over the past three days off this week. keep that in mind. we got another suspicious number on jobs from the government. down 30,000. one big state, however, was not included. it is an incomplete report. look at her -- burberry.

they warned saying it would make less money. they say sales have not been as bad as feared. other luxury retailers doing well today. coach, tiffany, michael kors, all up. today's big ipo. we will talk to the company's chief in about 90 seconds from now. good investment, real estate, i thinkci so. back with more in a moment. ♪ gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ametrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

stuart: the housing market is recovering. mortgage rates are at record lows. foreclosures are at a five year low. joining the company now is richard smith. the company began trading on the new york stock exchange earlier this hour. opened above its ipo price and ceo mr. smith joins us now. welcome to the program. i am going to give you a commercial. i think the best investment in america today is a single-family home in a good neighborhood. and, you, sir, are not going to disagree with me. >> you are correct. stuart: you got that out of the way. you can pay me later. the real estate rebound is very very modest. let's not get carried away here. the number of sales, prices, a very modest rebound from an

awful low. >> this is early-stage recovery. you are coming off of the worst trough in the history of housing in this country. it is happening. it is happening despite high unemployment. it is happening. it is happening in a fairly robust way. this year transaction volume is up about 14%. the national association of realtors is forecasting another 14% next year. this is sustainable and our view. you are starting to see average price increase. stuart: i will not ask you a political question. i know you cannot answer. you are the ceo of what is now a publicly traded company. you want something next year. you want something to happen in the economy. what do you want to see happen in our economy that will really help reality? >> whether it helps reality or

not, it will help the economy and that is dodd-frank. it is a simple fix from a regulatory standpoint. the normalization of underwriting standards. that would have a substantial impact. stuart: does it make any difference which side wins in november to get what you want? >> i think both sides recognize the importance of housing fundamentally and they also recognize the importance of getting it right. interestingly enough, this could have been resolved two years ago. i do think it is a focus now. this needs to be a high priority. this, clearly, is articulated in the presidential debate. i think that alone, you would see a significant change in the housing market in this country. we are looking forward to that sometime early next year. stuart: mr. smith, it is above

the ipo offering price today. congratulations, sir. thank you for being here with us today. take a look at these watches. they are going up for auction next month. one of them is eric clapton's. could they possibly go for millions? find out next. ♪ this is america.

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lou: the administration, and some critics say is a lie about libya. the chairman of the house intelligence committee, congressman mike rogers is with us tonight 7:00 p.m. eastern. ♪ stuart: before we go to eric left and watch. nicole, intel shares hitting in other low. nicole: that is right good this was after we reported this morning that pc sales have been dwindling. we talk about a tough economy, the fact that it is a tablet competition and sales and emerging countries. right now it is back in the green. it did hit a new 52 week low.

stuart: we tell you that time is money. today, it literally is. welcome back to the program. i think you have been with us before. >> regretfully not. i am delighted to be with you today. stuart: please put a camera on a particular watch. this is a watch previously owned by eric clapton. it was formally warned by eric clapton. >> i have the privilege to auction this off on november 12. stuart: are you going to tell me what kind of prize you expect to get for it? >> with great pleasure. roughly 2.7-$4.2 million. stuart: that is the range. suppose it was not eric clapton

and watch. how much? >> 2.7-$4.2 million. [laughter] stuart: there is no premium. no bonus at it because is eric clapton? >> we have not added any premium in our estimate did in fact, this is probably one of the most important ones in private hands. one of the most coveted. the other one is permanently in geneva. this is only one that someone can bite of this version. stuart: i cannot believe that eric clapton does not place any role in this watch. >> i did not say that it doesn't, but we keep it up to our buyers.

>> is this just a personal sale? >> i did not ask him that question. >> it is not a charitable auction? >> no. stuart: you have another one. this one is a modest sort of version. eric clapton did not own it. >> this is a very interesting watch. it is particularly interesting because it is made from 1949. only three models were made. it was done at the time when patrick philippe thought that intercontinental traveling would be manned a well-timed wristwatch. stuart: eric clapton watch will

be the winner. thank you so much for coming. the highlight reel coming up next.

stuart: big show, big highlight reel. >> did you believe that my 16 year old daughter is bringing friends to the house tonight specifically to sit and watch paul ryan and joe biden go at it in the debate tonight? >> i think joe biden has been doing this since the early 1900s. stuart: within 12 hours, the stakes are very high. >> it will be intellectualism. >> they say joe biden has been at it since the 1900s. did you say that? >> i think i said the early 1900s. stuart: romney has momentum, but can ryan keep it going? there is a question for you. you will have the answer tonight. right now, dig in and