>> it is friday morning, but the stage is set for monday's foreign policy debate, libya front and center. good morning, everyone. the president appears on a comedy show and addresses a deadly serious issue. he called the events in benghazi not optimal and he said the american people got all the information as it happened. well, the election may be fought on the economy, but libya will surely affect the vote as well. well, 40 minutes from now, attention realtors, we'll find out how many homes are selling, this is an important indicator, but what is the one bright spot in this economy, housing. big disappointment from two of the biggest names in american business, google and microsoft. they're just not making that much money. october 19th, 2012, this was the scene on wall street, 25 years ago today. where were you? i will show you where i was,

"varney & company" is about to begin.

. stuart: the prz president continues to take heat for handing libya. waste on the daily show, jon stewart went after him. >> i think you would say it was not the optimal response to the american people as far as us being on the same page. >> here is what i'll say if four americans get killed, it's not optimal, we're going to fix it. stuart: not optimal, four people killed, ambassador and three others, and the president used that expression not optimal and that's not all. >> every piece of information we get as we got it we laid it out for the american people..3 c1 stuart: hold it all the information is not out there. the administration tried to link it to a movie and we were told it was a terrorist attack

planned in advance and weeks before questioned and denied. on monday night the third and final debate in florida centers on foreign policy and let me check the latest gallup poll, a weekly rolling average, including reaction from the latest debate. mitt romney now has a 7 point lead. the final presidential debate, monday night, watch it on fox business, hosted as always by neil cavuto. all right, everybody, do you remember where you were 25 years ago today? i do. take a look at this. >> a freefall and i use at that word advisedly, right from the opening bell. >> a statement, right upfront to catch attention to make sure they're very clear, this was going to be a big day. stuart: not sure i should have run it, but we did. october 19th, black monday, the crash on wall street and the dow lost 22% and the blue chips plunged 508 points and wiped out half trillion dollars of market value. within two years, black monday, market had bounced all the way back again. google expected to announce, bounce back a little today as

the rotten earnings report released early yesterday. look what happened when the company mistakenly let the cat out of the bag four hours before it was supposed to, shares off as much as 10% and pre-market we're bouncing back just a little. we're going to follow google and microsoft, two big tech names that you know the both stocks are worth watching today and they took big hits. clayton morris is going to join us, microsoft, big week coming up. does he like the products that microsoft will be rolling out? the opening bell is next. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout ocks, options with potential opportity, futures and forex with in-depth analysis. it's an all-you-can-eat buffe for all things trading. thinkorswim by td ameritrade.

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>> two dow components, mcdonald's and ge will set the stage for the dow today. how much money did they make? answer, not enough. watch out mcdonald's and ge they'll take a slight out of the dow when trading stocks up. here we go, we're off and running and not expect ago huge move either way, for the stock market in the very early going and as you can see, there's a slight down side bias, but here is the story, not good news from the big tech names that you know. weaker than expected profits from google. it was down big yesterday. so, first question, nicole, where is the opening? >> well, it's above $700, that's number one and it's at 7:05 and change and so it's already seeing a gain yesterday, we saw trade as low as $676 before it

was halted. >> now move on to microsoft. was hit, profits hit and revenue hit by the pc. >> it's down 1.7% when you talk about microsoft, profits dwindling and pc sales under pressure. the big hope is for next week, right? and windows 8, we'll learn more about that and that's where they're putting, obviously, a lot of eggs in the basket. >> so, 29 on microsoft, roughly 700 and googleeas we open up this friday morning, thanks very much indeed. now look at general electric and the most widely held of all stocks, made less than expected and where is ge opening up today. down about 1.3%, 22.50 on ge. and another dow stock reports weaker profits and sales, especially europe. it's below $90 a share and it was about 100, and 89 now down

three bucks. let's get to the big tech names. and resident guru, fox and friends host, start with moth. big products out next week and the tablet and windows 8. i put it do you. right from the get-go. >> microsoft is out of the race and they can't catch up. so far behind. it doesn't matter with the-- >> i don't think so, they have a long row to hoe. there's a new windows curve. they a're betting the farm on i they're beating the company on windows 8. when you walk into a best buy and thinking of picking up a new computer stocked with windows 8 you're either going to buy an apple or a pc and windows has such a saturation in the market i think this is going to buoy pc sales during the the holiday. stuart: is it any good? you played with it. >> it's very good, it's very good. it's very new and not your father's windows so if i were to

hand this to my dad there's a button you can press that takes it back in time to look like the old windows. so, microsoft has one foot in one camp, hoping that they're not going to, rock the boat too much. stuart: really. >> by shifting things to the new tiled interface that you're seeing on the green. you get the tile interface, a radical redesign, i don't know if my dad would hit the other button. they're taking a risk. when apple it in put all the eggs in the basket. here is the new design, use it or don't. they are doing the same, but has a button that takes you back to old windows. if case you don't like it here is one button. >> is there any chance to windows 8 will be liked and approved of and there by bring back the pc market which is in design? >> i think there's a real possibility. you have a lot of touch pc's coming out and windows touch 8 is touch friendly and it has

sports and news information and stock information and easy to interacts with, tap here to e-mail and tap here to video chat. >> they intuitive and they didn't copy apple. this is exciting about windows 8. they built it from the ground up. so i have a lot of excitement for microsoft and we're sort of-- >> yeah, and i own the stock. >> but it's sort of a role reversal, i'm excited about it, i don't know if the learning curve is too long for the general ropopulation, use today their dad's windows. >> apple's mini ipad and they're going out to san francisco. >> and what do you make of it, a big deal? >> a huge deal. absolutely a huge deal. google launched the seven inch tablet. moderate sales, when apple released the 7 inch tablet they've got the infrastructure and the part and the component they've already got the market share, when a 7 inch version of the ipad comes out geared to gaming and movies, a massive seller. >> and you found it, shifted it and-- >> no, no, it doesn't exist yet. we don't know, we think there's

going to be an ipad-- >> do you think they'll keep the ball rolling with the field, the touch, the coolness of it? >> in fact, analyst report coming out of china or this could in fact be sleeker, better design than the current ipad. >> that's all buzz that apple creates in advance. >> and if you know, apple, apple doesn't say a word, don't say a peep. under tim kook, they would like there not to be a leak or a deep. it could drive down sales currently sitting on the market. stuart: get out of here, clayton morris. >> tim cook in interviews says we're doubling down on secrecy. >> of course they don't say yes, i'm tim cook and i run this company and-- >> and you get part of that component. get leaks out parts components in china. stuart: deliberately. >> they do, not apple. they don't want to drive down sales of ipads. stuart: how do you know it's the

factories and not apple. >> the software we don't know in-house until the event. we don't know anything about the event until somebody leaks internally. the hardware we know about because you have to source all of these components and you have hardware, and you have screens coming from samsung, you have cameras, coming from sony that are shoved into an iphone, all of these people talking and it's very hard for apple to control the message there. stuart: i find it very difficult to argue with you. because you know what you're sta talking about. and homes that are already being built, got it? we get the latest snapshot of sales in the arena, top of the hour and we'll see another sign of a housing recovery, will we? ten o'clock eastern, that will be one of our new at ten stories. and gas prices, they're down again, the national average for a gallon of regular, 3.71. diesel still at 4.13, now look at the trend over the past week, gas down more than a dime.

that's a drop. but in california, the average for regular is still 4.51. and chipotle, profit disappoints and they're seeing the impact of the summer drought on good costs, i'm guessing that's down. >> it's at a 52-week low and a look at the denver based burrito chain and 2.46 and change is the annual low, not an all-time low, but you note it, obviously, they face costs and their outlook, is slowing for 2013 and they also face intense competition from taco bell, and yum! brands and jack in the box has their burrito type chain and they have that contend with, and it's down 13%. >> and those restaurants in general, chipotle in particular, they move lightning fast, big moves and look at that, and 13%. >> 13% move and you remember, it was spun off from mcdonald's.

>> and by the way, the dow is down 71 points, i think that's the influence ever poor earnings from mcdonald's and of course, gdp. we're following it for you. now, time is money, and here is what we've got for you today. gun sales have been under the roof. and we'll ask a gun seller what the customers are telling him and how will his customer vote. obama zombies, jason mattera's name for young people who he says mindlessly adore the program. you saw one of them on the program yesterday. will they still vote for president obama? we'll be talking about that. and mitt romney under fire supposedly for being demeaning to women. we're breaking out an old clip of president obama that you'll definitely want to see. e-mail us of course at varney@foxbusiness.com. and seven early movers. we mentioned chipotle. profits disappoint. down 13% a moment ago and down

12%, down 35. and that's a drop. double delegate profit growth and upbeat from appliance maker, river bed and that's up in percentage terms. a weakness in the global economy causing the chip maker marvel to cut the forecast, the market doesn't like that. and the chemical company gives a disappointing jut look and another market doesn't like it, and better than expected profits at capital one financial and that stock is up. two bucks. and e-trade, financial, posts a surprise loss, again, market doesn't like it. down 6% and health care provider health ways lowered the full year profit outlook and down it goes. among the companies with shares expected to actively trade in friday's session are chipotle, mexican grill, cmg and river bed and marvel technology, okay? look at the big boards, we're now down 72 points all the way

back to 13,477 and the unions say they-- they defend the working class, that's what they're there for, to defend the working class america, but public workers demands for lavish pensions end up hurting the middle class and next, new york's former of richard ravitch. first, another highlight from last night's al smith dinner. >> in the spirit of sesame street, the president as remarks have been brought to you by the letter o and 16 trillion. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start.

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>> this is a friday morning selloff. we're down close to 100 points. and we're down and microsoft and ge and mcdonald's on the down side. as for the price of oil. up 50 cents, $92 a barrel.

that's where we are. new york city transit agent. increased fares and brink tolls and need the money because the pension and health care costs are a problem, according to the come toptroll comptroller. the former lt. governor of new york, he's smiling, you don't think the pay and fare increase will go to paying the lavish pensions, that's the case, isn't it? >> first of all, all the expenses have gone up, the same as have expenses to publish a newspaper or run a television stations and everybody's expenses have gone up and the-- >>, but they're bleeding it dry. >> i would agree that retirement expenses generally are going up a lot faster than revenues. stuart: which means that-- >> the revenue insufficiency

problem as well as an expense problem. stuart: we, middle america, we're being squeezed to pay for the-- i'm going to call them lavish pensions for retired government workers. and a lot of us really object to this. you don't? >> that's not true, as a matter of fact, i spent a great deal of my time public sizing the fiscal plight of states and cities and attribute a large part that have to the fact that people have not been responsible about keeping the retirement benefits-- >> what are we going to do? we can't go on like this, richard, we cannot do this. we've got to do something about pensions that are going out already retired workers, would you agree with that? we've got to rein them in, somehow or other we've got to. >> we have written constitutions that protect the benefits that have already been earned and i think that it would be very difficult, as part of a legal matter and a moral matter to

take, to take that away. i think clearly we have to try to accommodate the realities because-- >> you're saying accommodate. you mean, we've got to pay. we've got to pay. it's in the constitution, that's the agreement. we've got to pay, that's it. the class size is bigger and health care for children are force, and prices-- and i think that's you [phone ringing] >> probably someone who disagrees with you. you know what i'm saying. >> you're right to raise the problem, it's a serious problem, but it's health care expenses, it's retirement expenses that have driven the cost, particularly of state and local governments way beyond the revenues that they're currently receiving. stuart: we're in agreement. >> we are in agreement on that. stuart: but we don't agree on what we must do about it. >> last time i had the honor of

being here, you called me a, a concensus person. i am a concensus person and i think that everybody has to contribute to this solution, not just the recipients of benefits, but the people who have paid taxes as well. stuart: all right, richard. >> but in fairness. stuart: yes. >> the labor contract is up and i think the chairman of the mta has very wisely decided that he's going to wait until after the union election this december to negotiate a new contract. and what he's able to extract from the union at that point in time 'cause he'll extract more after a union election than before. stuart: all right, all right. >> we can hope that he will negotiate a good deal. stuart: look, confrontational, you're the master negotiator and concensus builder, we'll leave it at that richard and i think your phone is still ringing.

>> thank you. stuart: a pleasure, no, no, thank you for joining us, we appreciate it. the gold report where are we now this friday morning. down again, way in retreat from $1800 an ounce, 1735 is where we are now. ann romney goes into i'll call it enemy territory on "the view". and she gets grilled. when you're facing the children's mothers who have not come back, how will you explain that your sons haven't gone. >> gerri willis and elizabeth mcdonald's are here, was ann romney fairly treated? their graereaction next. one more, mitt romney zinger last night. >> i've seen early reports from tonight's dinner. headline, obama embraced by

catholics. romney dines with rich people. ♪ stand by your man ♪

>> win of the things your husband, when he was a governor, he was pro choice. and now is against abortion except in the case of rape and incest and life of the mother. i wonder what your views are as first lady if you get the job, it's going to entail a lot of things and one of those things is going to be talking to the mothers whose children are coming home in bags. so, when you're facing these mothers whose children have not come back, how will you explain to them that your sons haven't gone? >> all right, those were the questions, some of them posed to ann romney when he was a guest on the view yesterday when michelle obama was on that show last month the first questions to her were about her wedding anniversary and whether the president is a romantic husband. all right, liz, fire away. >> i don't mind tough questions where were the questions about

joe biden's five deferrals from military service and president obama if any planned to serve in the military. what about the unequal pay, apparently in the white house for women. according to the government's own statistics and what about joblessness among women. the view out of the front windshield is dim and not fair and balanced, non-- >> they're not facebook, these aren't journalists they're four chicks with mics. >> this isn't a media interview it's a celebrity interview and the problem that we have with all of these coverage, they're not journalistic conversations. stuart: it was totally unequal the nature of the question to michelle obama, first lady was totally different from the nature of the questions of ann romney. >> they're not fair and balanced, they have a point of view and they're telling you their point of view. stuart: no, no, they are not honest. they're not honest. if they come out and way we're for president obama that's fine, but never-- >> do you have to have them say that, now, you can tell from the

question. >> not all of them on the couch will vote-- we don't know how they're going to vote, but the problem is they're not-- if they're going to be asking tough questions, ask tough questions of both sides. stuart: thank you. >> that's the issue, clearly "the view" has been rattling around the beltway echo chamber far too long. stuart: and an indicator whether we're seeing a housing recovery, that would be sales on existing thoms and those numbers break at ten o'clock eastern sharp and we'll bring them to you next. can your hearing aid do this?

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stuart: in a few seconds we will get a major read on the housing market. after posting a string of barely positive reports over the last week signaling a housing recovery we are going to get what is considered a real big indicator. that will be the number of sales of existing homes sold. peter barnes, you got the number. go. peter: existing homes sales declined one.7% to 4.75 million units on seasonally adjusted annualized rate. however, sales are up 11% compared to september of last year and down 20%, national association of realtors says this shows the housing market has broken out of its slump and is in a genuine recovery.

stuart: i will report what i think is the most important number. that would be 4.75 million homes. that is the annualized selling rate of existing homes in the month of september. i don't think -- that is the better performance than we had in previous months. it is down from the previous month. i year ago it is better. 4.75 million is not that great. liz: is an improvement year-to-year which peter reported. it was 7.8 marginally. stuart: i am looking at how to characterize this. it is not that great an improvement. doesn't show a rip roaring housing market. the record in america was in september of 2005 when the annualized rate was 7.25 million homes. >> i don't care about the top of the market. we are a long way back but for people thinking of buying another home, maybe a second

home, you want to hear 3.6%. that is where 30 year mortgage rates are. you can't time this market and go down and come back. and trying to make money, and the housing market is an opportunity. stuart: i would agree with that but i want to point out the low for annualized home sales in america was in july of 2010 when the annual selling rate was three.three million. liz: and gross domestic product, six quarters, forming a bottom. we have been looking for that for long time. we sought permits rise and home builder confidence is up and we got some good numbers out there. you don't know what has happened with unemployment and that is the big numbers for the housing market. stuart: i would say it is housing number is consistent with a very modest slow recovery for the housing market. liz: we are trying to make sure we are at the bottom to move

higher. in it for another five or ten years. stuart: we have come of of the bottom. it is a modest slowing improvement. we all agree? dow jones industrial average is down 100 points. it did fall a few points on housing news which is an important item. bright spot in this economy is housing. this confirms a modest slow recovery down 100 points. let's look at the home builders. any reaction? nicole: i want to look at the home builders. we're looking at pulte homes and lennar. most of these have been under pressure all morning and have down arrows even though they had an unbelievable 2012. some of them are 100% so you are seeing them down with the exception of this one with down arrows. stuart: mcdonald's, weak sales because of a weak global economy costing the dow quite a few

points when it loses 3%. big loss for a big comppny, 89 on mcdonald's right now. back to the big story of the morning, the president's comments on libya on a daily show last night. >> even you would admit it was not the optimal response to the american people as far as us all being on the same page. >> here is what i will say. before americans get killed is not optimal. we are going to fix it. stuart: that is rather clinical language to describe the death of an ambassador and three others. not optimal. a little cold. i would say tragic. listen to this. >> every piece of information we get as we got it we made it out for the american people. stuart: the administration did not give all the information to the american people when they had it. our un ambassador went on several talk shows five days after the attack and try to blame it on a movie but the administration knew it was a

preplanned terrorist attack, not an out-of-control protest. all of this right before monday's final debate when the topic is foreign policy and look at this gallup poll in advance of that debate. 45% for the president. that would be romney's biggest lead so far, 7 points. let's call it on the libya situation. liz: using the word of the mall is a bad impression to the american people, treating the situation in libya like a bump in the road and downplaying the severity of the problem. stuart: the president is not accurate. he did not lay out all the information that was available when they had it. they did not do that. sandra: report from the ap that the cia, a chief in libya had this information 24 hours after the attack. they knew. that information was in. the president did not tell the american people for two weeks.

liz: when the president on the campaign trail said i usama bin laden. [talking over each other] stuart: at terrorist attack on the anniversary of september 11th. sandra: some say a word of the mall that he was repeating john stewart's phrase but john stewart was talking about the communication. the president applied it to the death of the four americans. stuart: it will come up on the debate monday night. remember the first question in tuesday's debate? ecologist and tasking the candidates what they can do to assure him of employment after college. yesterday i pose the same question to a democrat who represents young people and here is what she said. i will give you 30 seconds. give me thirty-second y new graduates should vote for president obama. >> how did they not vote for president obama? stuart: that is all i got. how could they not? 53% of college graduates are unemployed or underemployed.

the class of 2011 faces an average 26,000 the hundred dollars in student loan debt, all-time high. jason is the author of obama zombies. any sign that the young people's vote which went heavily to president obama in 2008, show me any evidence if you have got it that there really is a turn. >> of course there is a turn specifically after the first debacle of a debate for barack obama. he actually lost 8 percentage points and mitt romney gained ten percentage points. stuart: is that overall or just in young people's vote? >> just 18-29. fifteen percentage points is a pretty historic gap considering it was 30 percentage points. the reason why, you still have an overwhelming majority of young people who will support barack obama in spite of not having jobs or the dismal

economy is because they go through an education system that constantly is obsessed with the gender and sexual orientation and all these diversity and malt for -- multi-cultural programs and wealth distribution so they go to the candidate who is also obsessed with these identity -- stuart: i am shocked to hear that because 53% unemployed or underemployed, $26,000 of average that i would have thought minds would be focused on the job market coming out of college and not on gender preference and what have you. >> i am reminded of a quote buy abraham lincoln that the guess we had yesterday never heard of. he says the philosophy of the classroom today will be the philosophy of government tomorrow. when you have children who have been through osmosis constantly bombarded with these multi-cultural programs they have not -- [talking over each other] >> they don't care about that. they care about is this person

going to represent women by giving us free birth control? the 1% that is growing 99%. sandra: college is a place for debate and there's a question about whether that should be the focus for colleges. i would say it is okay to raise the issue of gender or whatever. [talking over each other] sandra: i am saying the business model is broken because colleges think they are running around hotels and empires and your debt is so high. >> of course the student debt has increased and increasing and barack obama said he was going to lower it all. the question when a student at the town hall debate raised it, my friends can't find a job and i'm concerned i can't find a job mitt romney is the only one who can give an answer because barack obama at four years. i think mitt romney has made inroads because the gap is only

fifteens percentage points. huge when barack obama won 34 percentage points. stuart: bruce springsteen, is that a come on to the youth vote to. >> of course. [talking over each other] >> i am from brooklyn. in working class states like ohio and iowa going to college campus, getting thousands of students to come out, with generally cost $100, to mobilize the youth vote. the youth vote. stuart: it works. [talking over each other] sandra: it should be somebody cool. stuart: thank you. yvonne longoria spoke on behalf of the president that the democrat convention now under fire for endorsing a foul mouth and incendiary tweet about mitt romney. we will tell you what she said, paraphrasing it at least and later this hour whether this

will have any effect on the latino vote at 10:35. remember we have a special election day addition of "varney and company" for you. we will start at 9:20 as usual but also get a brand new "varney and company" live at 5:00 at night on election day at 5:00 eastern. not just home builders will looking at this morning, not good news for those big tech names that you know. we can expect profits at google. as it bounced back much? nicole: it has been bouncing back but not where it was yesterday. yesterday gave opportunity for folks for the big business and platform and mobil ad revenue to get in. it was a good buying back off of the lows but now covering just under the $700 mark. i should note seven analysts reduced their numbers some because of the top and bottom line but they still seem to talk

about long-term growth and mobil ad revenue. stuart: we have it. $700 and the dow down 100. weak pc sales hit microsoft profits. nicole: we have seen microsoft down 1.8% all morning long. a quarterly numbers noo that impressive but we will watch next week when we get more news from microsoft windows 8. stuart: we will be watching that for sure. gun sales have been rising sharply during the obama administration. we want to know why. we asked wayne pierre of the nra. >> if he gets a second term it is katie bar the door. they are trying to fog this issue to get past this election and i guarantee you i have seen their playbook. they are going to go after one or two more supreme court justices and the second amendment as an individual right is gone. stuart: right after that interview the nra launched this ad in four key swing states.

>> mountains of debt, threats to our sovereignty, chipping away at your rights, chipping away at your freedom and now they are attacking our second amendment rights but you can stop them right now. defend freedom, defeat obama. stuart: joining us is andrew from cheaper than dirt, online national government retailer. for your sales, a sales report, are they up still? >> sales for firearms and ammunition have been climbing for the last 24 months. we are seeing more as the election gets closer but that is the time of year too. stuart: the people you are selling too, are the single issue voters do you think? >> i wouldn't categorize all gun owners as single issue voters but with increased gun ownership across the board we are seeing more people taking interest in the second amendment and they

will vote accordingly. stuart: what's suppose he becomes president romney, he wins. they you think gun sales will fall? >> i don't see them falling that much. the increase has been steady for two years. there is such an awareness and acceptance of firearms in the united states right now that we see continued growth through the next several years. stuart: thanks for joining us from texas. thanks very much. libya remains a major issue in the election. we will discuss a vat next. you see us, at the start of the day. on the company phone list that's a few names longer. you see usank on busier highways. once empty fields. everydayou 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 d get back to work. everyday you see all of us serving you, around the country, around the corner.

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stuart: existing home sales, the most important number for the housing market. the annual selling rate 4.75 million homes. not great but aniks dominant, a slow recovery in housing. median home price rising 11% from last year, $183,900. the dow industrials are falling sharply, we are up 104 points. part of that is mcdonald's. it is shaving a few points off of the doubt because it is down 3%. it and $1 billion in the last 3 months. sales were down slightly and that is continuing in october. economic worries about china not doing well.

we are coming back in 90 seconds with more on the president's comments about libya from the daily show and was aiming for the debate monday night. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose ancar in the ais... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice. go national. go like a pro.

stuart: transcanada has set down its 2,000 mile keystone pipeline. tests show possible safety issues. this is the line that moves 5,000 barrels of crude from alberta through several u.s. states. the company would not describe the safety issue but did say there were no leaks detected.

libya remains a major issue in the election and president obama is taking heat for what he set about it last night. >> even you would admit it was not the optimal response at least to the american people as far as us all been on the same page. >> here's what i will say. four americans get killed, it is not optimal and we are going to fix it. stuart: that language, not optimal, that expression, somewhat cold technical expression, not of the mall, not going down too well. republican strategist jeff, a will that one item of news to our coverage of libya. ap reports the cia station chief in libya says he reported to washington d.c. within 24 hours of the attack that it was an attack and there were links to militants with that attack. he reported that within 24 hours. that was not reported by the president or the state department until sometime later and the president last night on

john stewart said all the information was out there when we got it. that is a contradiction. is it going to be exploited and used monday night in the debate? >> it better be. this administration from the top down is in the business of denial of the war on terror and denial of terror. this is not the first time. it is a tradition with these guys. the fort hood massacre they couldn't acknowledge and still can't, islamic terror. [talking over each other] >> the underwear bomber, the times square bomber. remember eric holder sitting there refusing, squirming not to say islamic terror. these guys -- his blood was pdded. stuart: do voters care? do they really care what happened in libya and who said what and when? do they care more about that or no jobs, week economy and big debt? >> take care more about the latter, the jobs and the economy but they should be exploited as

a national strategy and national crisis and national outrage. the entire middle east is in flames because of this president's policies. stuart: you are a republican. mitt romney didn't use it to his advantage in the second debate. he dropped the ball. >> candy crowley interrupted him and he lost momentum. seemed to be barack obama's indignation, how dare you question my commitment to this seemed to throw him off. he reserved for certain things. debate against mitt romney and criticczing jews to build homes in jerusalem get excited. terrorism not so much. stuart: republican strategist, thanks for seeing us. i should point out we have a triple digit loss for the dow. put the board up fast. we are down 115 points. back to 13-4. mitt romney proves them all wrong. in comes across as a human, humble. my take on that is next.

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pharma on this, they are betting the company on windows 8 but when you walk into a best buy thinking of picking up a new computer that will be stocked with windows 8 you will buy an apple computer or a pc.

stuart: clayton morris in the last hour making his case for microsoft windows 8. tune in weekdays sharp at 9:20 to catch this good stuff. to the big board triple digit decline. mcdonald's, caterpillar and gdp the biggest percentage losers and that is hurting the dow 30. what is going on with chipotle? >> not good news. we are looking at chipotle mexican grill hitting a new 52 week low of which goes back to may of 2011 but third quarter profit miss same-store sales for the analyst estimates and outlook for 2013, the forecast is disappointing so you are seeing stock down in a significant way down 14%. you mentioned mcdonald's and that is worth 22 negative dow points. stuart: that will do it. the left's attack on mitt romney continues.

they say the gop is waging a war on women. the government continues to face criticism for saying he had binders of women. what if he directly addressed a female reporter as sweetie? that is exactly what president obama did when he was a candidate in 2008. we will play you the sound bite at 10:50. stuart: it was not a debate. it was a comedy routine but it still had a winner. my take on the al smith dinner. it really was funny. both sides, came through with a series of jokes that made me laugh out loud. they square off every presidential election year to poke gentle fun at each other. are really good thing. it symbolizes an otherwise contentious and harsh election process but as i said there was in my opinion a winner. not the guy who came up with the best lines or got the biggest laugh. the winner was the guy who best

polish his image and that was surely mitt romney. here is a guy who has been attacked for months as there'll be evil. rich and manipulative capitalist. he is a liar, the obama camp kept saying. he didn't care about the death of employees's wife. the list of personal insult goes on and on. and we see this same guy making the whole room laughed. he is humble, self-deprecating, funny. he didn't attack the president. comes across as a nice guy. here's the obama team's dilemma. the image they created does not match the reality of the man the country is watching and laughing with. the al smith dinner is different from the debate but all across america voters will be looking at mitt romney making -- in terms of image, he won. >> i have seen early reports from tonight's dinner.

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>> free fall right from the opening bell. stuart: statement from a blunt right up front to catch attention to make sure they're very clear this was going to be

a big day. stuart: you will get your chance. [talking over each other] stuart: very funny. i am not the only one who remembers where he was on the 20 fifth anniversary of black monday. larry shovedr, you don't look like someone old enough to remember 25 years ago. >> i remember it well. i walk away with some great lessons from it. i was 23 years old at the time. lessons i needed to learn back then which helped me with my career going forward. stuart: i was on the air live during that debacle and you do not use the word collapse because you would be accused of talking the market down. you become the story as opposed to the commentator. do you remember as i remember getting a feeling in the pit of my stomach the bottom is falling out of this thing.

i remember a sense of almost panic within myself. >> i remember quite well thinking it is over. i was 23 years old and had been in the business four years thinking i was a hard core veteran but walking away saying it is over, i have to go back and think about using my college degree for something other than trading commodities. stuart: a really valuable lesson. do you remember it? gerri: i remember it and what i remember distinctively. i was working for a business reporter. my first business journalism job talking to a market trader who cried on the telephone. cried on the telephone. that is when i knew -- you look at 500 that a points today and saying no big deal that back then was 22% of the market. it is hard for us to imagine that now. stuart: do you think my accent has changed? >> it looks like a good

advertisement for a scream. [talking over each other] >> sports caster -- [talking over each other] stuart: look at that. it is not that bad for 25 years. fifty extra pounds. >> i was that money magazine and had to report to the editor. stuart: that was my only genuine crash. florida is going to be a crucial stage in the election. there's a good chance neither candidate can win without it and the hispanic population is very big. hall is that group going to vote? joining us is the executive director of the hispanic leadership network. you have been on before.

we want a prediction. card members. how will the hispanic vote split in florida? >> great to be here. romney can get 43% of the hispanic vote and obama will get 55%. stuart: that is a huge break towards president obama and we are talking florida with a large cuban hispanic population which will break firmly for romney. the non cuban hispanic population goes overwhelmingly for president obama. that is what you are saying. >> the cuban population is going towards romney and we are seeing the puerto ricans population trend towards romney. that has to do with the help of senator marco rubio and the governor who has been campaigning heavily for romney in florida. >> that is 12 points for president obama among hispanics

even though cuban-americans and puerto ricans are trending towards romney. what is the other section of the hispanic that i don't know about printing for president obama. >> starting to trend towards romney, but 39% of hispanic evangelicals are going for romney. i believe that number will increase and a lot of hispanic evangelicals in florida. stuart: you have got -- you are predicting a 12 point advantage for president obama among hispanics in florida. what was it in 2008? >> he had over 60% of the hispanic vote and last week david axelrod said they would get 60%. that is a difference of 7 points if he is losing. stuart: eva longoria, big part of the outreach to hispanic voters. even got prime speaking spot at the convention and yesterday

sent out a tweet written by someone else but she reached we did it. it called mitt romney a racist and a misogynist and a word i will not use on tv. she apologized on the internet. you can't take anything back. what is your response to this? >> it was very offensive and juvenile and vulgar. distraction from the issues. banks want to hear about the issues. the fact she would say i don't see how many minorities or women could vote for romney because he is a so-called racist and misogynist is ridiculous. that is insensitive to those of us who are not conservative and worried about 10% of hispanic unemployment, high gas prices. stuart: you are very much involved in politics. you follow this, close basis. what about those hispanics who don't fallen on a day-to-day basis but here about something

like this. are they turned off? is a turn off? >> it is the turn off and an embarrassment. people who are not supporting her, something is wrong with my twitter account and had to apologize and even democrat hispanics don't want to hear that. stuart: you said it on this program. 55% of the hispanic vote. 43%, you said it in florida and we will be checking it. an amtrak train will hit 110 miles an hour in a test run today. it will happen in a short stretch of track between chicago and st. louis. this is the first test of high-speed rail. google and microsoft cannot great news from either company. is now the time to buy? what about apple?

one of our favorite stock pickers will tell us about this after the break.

stuart: la market is down this friday morning. triple digits down. we are of 104. two names you know dragging the dow down. mcdonald's turn $1 billion in three month but there are worries about its sales growth. mcdonald's is down.

general electric slowing sales and chief jeff immelt says it will affect the company next year. down goes ge. existing home sales down 1.7% month over month. the annual selling rate 4.75 million units. this confirms a very slow, modest but recovering housing market. coming back in 90 seconds with a look at more big-name stocks. microsoft, google, apple, should you buy, should you sell? a clean cut opinion in a moment. producers are committed to safely and responsibly providing generations of cleaner-burning energy for our country, drilling thousands of feets within self-contained wellystems. and, using state-of-the-art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment. we're america's natural gas.

he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, r jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

stuart: big-name dow stocks dragging the dow down. nicole: caterpillars were 15 negative dow points and down 2% for caterpillar. we are talking about sales numbers they are seeing in the machinery sales growth slowing in all regions. if the company comes out and says that that is not great news they're trying to do well with north america and they see growth globally, but dwindling. stuart: you waat to see the picture again? nicole: everybody watching the show wants to see the picture again. bring up the picture from 1987, stuart varney. you look great. [talking over each other] stuart: where were you at age 7? >> i was in high school playing

soccer, basketball. i was not concerned like -- everyone is reminiscing. stuart: monday morning i want you to bring this high school picture. got to move on. let's get back to the big tech companies that are taking a hit. to time to buy because it is a huge hit? shod the lani with money morning, individual stocks. i will start with microsoft. profits down, sales down, microsoft at 29. would you touch it with the ten football? >> yes i would. it has a great dividends. dividend is secure. i like microsoft and it is down 24. anywhere between here and 24. i don't think it will go there but it did i have a position. it is that this price level but

it [talking over each other] [talking over each other] >> moving swiftly along to a stock i do not known called google, $700 a share, weighed down. withhyou by it? >> if you look at google at stock graph based on yesterday's action and didn't know what business they do, wouldn't touch that with the ten foot pole. liz: the stock looks as good as stuart varney did. [talking over each other] >> there are ways to go and i would like to see the stock bottom out. it could go 550. there is a ways to go. i wouldn't be a buyer at this level. stuart: apple from 700 to 640. that is a bit. in previously you get a dip on apple you buy that thing because it goes up again. what would you do? >> i have missed buying the

dips. i don't think i would buy this point. i want to see apple test 600. five like to see it back over 700 and see how it performs. there's a huge gap in between. i am not comfortable with tech at this juncture in general. i like microsoft because of the dividend to. it has a stronger base. it is about 9, apple is 12, and google is 14. is the cheapest of the law from a value perspective. stuart: apple is at 625 right now. that is even more -- >> it is coming under serious support levels. stuart: i like your view on microsoft. come back any time you like to. no nasty comments. >> it is a pc stock? how can you be interested? stuart: it is a utility. it pays 3% dividend and has $50 billion in cash.

>> if we done -- they need some more innovative blood and -- [talking over each other] >> looks like an english leather commercial. [talking over each other] stuart: soap -- [talking over each other] stuart: thank you. that was wonderful. mitt romney coming under fire for saying this at the debate. >> i said can you help us find folks? brought us full binders full of women. stuart: the left keeps playing up this war on women but what would they say about this from then senator obama in 2008. >> how are you going to help the american auto worker? >> hold on one second, sweetie. we are doing a press conference. i invest in what i know. i turned 65 last week. i'm getting married. planning a life. there are risks, sure. but, there's no reward without it. i want to be prepared for the long haul.

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lou: lou dobbs tonight, governor romney surging in the polls and president obama struggling with confused stories about benghazi. is the presidency governor romney's for the taking? tonight at 7:00 eastern. stuart: mitt romney still getting criticized for his comment about binders of women. everyone knows what he meant but people on the left are trying to make an issue of it. why is no one bringing up what

then candidate obama said this? >> senator, how are you going to help the american autoworkers? >> hold on one second, sweetie. stuart: hold on one second, sweetie. sweetie. that is what he said. tracy: that is ridiculous. is at the top of the show mentioned women in the white house get paid less than men, $11,000 less than men. the president cannot allow her to talking meetings. she was kept out of meetings, her voice was not hurt and secretary kathleen said delius was a star in basketball in high school. is she ever invited to the pickup games the president has? no. >> this is on a level of using the word deer or honey to women and he did say afterwards reportedly was a habit of his. on the view down plate and said it was not a big deal. stuart: we better move on to the

next topic. [talking over each other] stuart: next topic yankees lose, swept out of the playoffs, disgraced. the worst performance in playoff history. alex rodriguez, horrible. the yankees still owe him $114 million over the next five years. they got to pay him. liz: he will not -- there is no trade clause after this. stuart: got him. they are stuck with the guy and unless he says i will leave he gets paid $114 million no matter what. liz: you can say where could a rod go? he is not going anywhere. he will not waive that no trade clause in his contract. stuart: i am told by people to know baseball better than i do that if he does agree to leave, whoever takes him up, the yankees have to pay out his contract to that team. is that correct?

nodding. i am right on this. [talking over each other] stuart: i predict he will see the end of this long-term lock in contract. gerri: no idea how these players will play down the road. how can you pay that much? stuart: a very special expanded joke filled highlight reel is next. with the spark cash card from capital one,

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[ garth ] sven's small business earns 2% casback on every purche, every day! woo-hoo!!! so that ten security gators, right? put them on my ark card! why ttle for less? testing hot tar... great businesses deserve the most rewards! [ male announcer ] the ark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here your invoice. stuart: i promise you, this is a good one. it symbolizes a harsh election process. [ talking over each other ] >> if i could have you sit down, governor romney. stuart: here is a guy that has been attacked for months. >> very little of what mr. romney just said is true. >> i am pleased that the president is here. we were chatting as if tuesday night never happened.

stuart: -- >> you have to be the designated driver. stuart: he does not attack the president. he comes across as a nice guy. >> i was actually hoping the president would bring joe biden along this evening because he will laugh at anything. [laughter] stuart: they will be looking at mitt romney again. i think he won. >> absolutely. i could not agree with you more. stuart: just in terms of image. >> i think he is coming off very well. stuart: i was watching that. i was rolling around. both of them, actually. they made me laugh. >> that romney's line, so little time to redistribute. stuart: that is right.

>> the other one was about the jobless rate. [laughter] stuart: i cannot tell if properly, but the president was speaking about romney and saying that meant is actually his middle name. i wish i could use my middle name which is hussein which is probably not something you could get elected on in this country. on an image basis, he polished his iiage. he looked good. if there was a winner and loser on that basis, he won. >> i think mitt romney showed you who he is. he is funny. he can laugh at himself. he has a sense of humor. stuart: there will be wide coverage of that. they will be rerunning those jokes. >> watch the coverage of how it reported on air. depending on the network. stuart: ladies, thank you very much indeed.

let's go to dagen and connell for more on this. connell: you doing comedy analysis. that is a first. dagen: i was like alice stuart needs to get out. connell: i agree with stuart on this one. we will talk about the numbers. what comes first, the chicken or the egg? the housing or the market? dagen: trouble in tech town. google goes boom and microsoft has problems. connell: terrible. terrible problems. [laughter] dagen: we always started off with stocks now. we have nicole petallides at the new york stock exchange.