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♪ imus in the morning ♪ >> the president was aggressive. some say snarky. the governor was calm, some say presidentialal. who won? good morning, everyone, the instant polls and the media called it a win for the president. he interrupted frequently, he was aggressive. supposed to focus on foreign policy, but romney turned it back to the economy. you can't be strong overseas he says when your economy is weak at home. so again, who won? the polls say obama, many of our guests say romney on image. we also have news coming from apple, that stock is going down this morning. and the energy drink business reels as the fda checks monster, oil, gold and especially stocks,

all of them way down today. now, is that politics or profits? oh, and italy sends scientists to jail, they can't warn about an earthquake. oh, "varney & company" is about to begin. ether he's climbing everest, scuba diving the eat barrier reef with sharks, or 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. t's just common sense, from td ameritrade. ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪

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>> we vote two weeks from today. here is the initial reaction from last night's debate. internet polls from cbs and cnn said that the president won. he was aggressive and sarcastic. >> governor romney hasn't spent enough time with how the navy works. you mentioned the navy fewer nan 1916. governor we have fewer horses and bayonets, we have aircraft carriers where planes land on them and ships that go underwater, nuclear submarines.

>> that kind of attack from president obama seemed to put mitt romney on the defensive, but the governor did not respond in kind and stopped with the big picture. >> we're talking about the middle east, and how to help the middle east reject the kind of terrorism we're seeing and the rising tide of tumult and confusion, attacking me he is not agenda. attacking me is not talking about how we're going to exist with challenges in the middle east and opportunity there and stem the tied of this violence. >> i wonder if a lot of people turned off the debate. quite frankly after the first 20 minutes the debate did get a little boring. rich edson was in the room during the debate and joins us now from boca raton, florida, did the excitement level come down towards the end, rich? >> well, stuart, not every debate can be like prime minister's questions, we like to maintain certain level in our presidential debate here, but, yeah, you could tell toward the end it got slower, it wasn't to the level we had in the first two debates and that was dictated by governor romney

wanted to be presidential and the campaign believes they accomplished that. >> i wonder if the third debate had less impact than the first two, we shall see. thanks, rich. more on the debate plus the opening bell with the stock market falling sharply next. follow the wings. ...seems like you guys got a little gassed out there.

enough already. c'mon guys. next question. mr. lewis? what's your favorite color? what's my favorite color? yes. pule. what's your favorite animal? sea turtle. what's your bedtime? do yobelieve in space aliens? ...i love puppies. hash browns or home fries? home fries. do you like my dress? why can't you guys ask good questions like this? [ morgan ] for a chance to interview an nfl player and more, join visa nfl fan offers and make your season epic.

>> when that opening bell sounds, this market is going to

fall sharply, well over 100 points, why? because there are three big dow stocks, all of which reported disappointing earnings reports. dupont, 3m united technologies, all of them will be down sharply dragging the dow down maybe 140, 150 points when the stocks get traded and also, both candidates last night attacking china, a threat of a trade war? the market does not like that. here we go, the dow started out, on the down side and see at least 100 point drop within a couple of minutes and watch it go. now, look at oil, down 2%, it's at the lowest level since july and that's 1.50, 1.60 drop. 87 a barrel and then we have apple. it's expected to unveil, very confidently expected to unveil a mini ipad today. nicole, where is the stock. >> the question is how big will the ipad be?

how much the cost? the ipad mini is supposed to be cheaper and compete with amazon kindle fire and the google nexus, adam shapiro is all over it, but right now, the stock is down 1/2 a percent. stuart: we're down 109 points i'm saying because of bad earnings reports from three dow components. anything else going on nicole? >> you're absolutely right. talking dupont, 3m. united technologies, all three of which come in with numbers that are disappointing and forecasts that are also disappointing and dupont, for example, saw their net sink 98%, so we're seeing a market down 143 points as we kick it off. the three dow stocks by the way are good for 65 of the dow's loss at 140 points down. w i want to move to yahoo! headline, new ceo saying yahoo! made money selling a property and the revenue dropped. the chief executive says that

yahoo! will focus more on multiple years to right the ship. where are we with yahoo!? >> yahoo! right now probably coming under pressure here as we're seeing t tech heavy nasdaq down 1%. i was reading monster, that's what i was doing. you got me. i've got to prepare for the next thing, you're supposed to do yahoo!. stuart: monster, that was down big yesterday. let's catch up here. >> right. stuart: lost more than a billion dollars in market value and they're going to investigate the company and energy drink related to some lawsuit. >> that's the key for monster beverage. of course they say they're not seeing any direct correlation to the five deaths, but you have the u.s. probing now, investigators looking into the deaths of these folks. one of the deaths is actually a 13-year-old. so, this is something that they're going to look into, obviously, further. and remember, that we talked

about monster being maybe a takeover target for coca-cola, a time that the stock spiked, but we're not seeing that right now. >> no, we're not. thank you. dow down 158. this is a good time to bring in dr. mark siegel. let's talk about monster and energy drinks, specifically, it was a 14-year-old girl who drank two 24 ounce cans in a 24 hour period. she died. now, should these drinks have a warning label on them? >> i want to make a couple of points and thank nicole for the tease. the fda doesn't have a lot of regulatory power against things that are not prescription. they can't match in and put a warning on the can. they can get involved, but don't have the law. there's two to three times the caffeine than a can of coke or coffee and people don't realize it and loaded with sugar. this young girl had an underlying heart disease and the company says we can't prove that the drink caused this.

i think that this much caffeine, which is a stimulant, plus the sugar, people are out there, with underlying heart disease that don't know it and don't realize you're getting the caffeine here and realize it when you're drinking coffee. i'm worried about this. stuart: is it true of other energy drinks, that they have a big load of caffeine in them? and sugar? >> absolutely. and there's also, stuart, some energy drinks that have alcohol in them and we've talked about how teens, late teens will drink energy drinks and alcohol together. the caffeine alcohol combination, very popular among young adults is often deadly. i think this is something that needs a lot to look at. stuart: do you think that the energy drink sector currently in the regulated directly by the fda really should be regulated directly. >> you know i'm not a big one for regulation, but yes, i think they should have some regulation that allows them to look into this and follow the companies and regulate them. kids are being hurt. because the kids are being hurt. >> should they limit the amount of caffeine in a 24 ounce drink, yes or no?

>> i say yes, i think it's way too much caffeine and again, it doesn't come out to where kids can know they're getting this. and caffeine's bad for you. stuart: it's rotten publicly. >> she just told you, i think the company is in trouble and coke may well not take it over because of this. stuart: doctor, always a pleasure. >> good to see you. stuart: and all 30 stocks on the dow jones industrials average are on the down side. all 30 are represented and when they're down, they're all down. the dow is up 161. let's get back to last night' debate. president obama was quick to compare governor romney to former president george w. bush. listen to this. >> now, he's praised george bush as a good economic steward and dick cheney who shows great wisdom and judgment and taking us back to the strategies that got us into this mess are not the way that we are going to maintain leadership in the 21st century. i want to bring in for commentary on the debate and strategies like that from the

president. and the lt. governor of massachusetts under mitt romney, and she joins us now. and carey, the polls, the instant polls and across the immediate media, they're saying obama won, what's your analysis. i thought governor romney had a great night. he established himself as someone ready to be commander-in-chief. someone who has a fluent grasp of foreign policy and national security issues. that's what he needed to do last night and he did it. stuart: okay, a cnn poll of women who watched the debate last night showed that women split 50-50 on who could handle being commander-in-chief. that's among women who watched the debate. your reaction to that poll? >> well, i think that's what we've been seeing generally, that women are now splitting 50-50. there is no gender gap in this race anymore. and that's just propaganda put out there by the obama campaign. stuart: what was your initial reaction to the tone that the president took. i'm saying he was kind of

snarky, he was very aggressive, he used sarcasm frequently. again, this is my opinion. he appeared to condescend to governor romney, that's my opinion and characterization, you're a republican, what's your say? >> you know, my view was that looking at governor romney last night he seemed presidential. he seemed to have the correct demeanor and approach for the seriousness of the subject matter that was being discussed. and that is what people at home were looking for. not trying to score any cheap points or overly aggressive. addressing the american people trying to tell them what would be his vision for american foreign policy, peace through strength, he wants a more peaceful world and believes that that begins with a strong economy at home. stuart: did either mitt romney or president obama land what you would describe as a knockout blow, either of them? >> i don't believe that either man needed to.

but governor romney did what he needed to do present himself as a plausible commander-in-chief. someone ready to take up that mantle and did he that in spades. stuart: you know, governor romney has been criticized for his attitudes against women, remember that binders of women comment. you worked with him. what's he like? >> a wonderful boss, professional, advances women within his administration and deliberately reached out and brought highly qualified women into government in massachusetts and supported their careers. women have nothing to be concerned about with a mitt romney presidency. stuart: carey, you know how to speak in sound bites, a wonderful attribute for people in television. thank you for joining us, we appreciate it, thank you. >> thank you. stuart: on election day, you will get a double serving of "varney & company" and we'll be here at our normal time 9:20 in the morning and back for a second serving of "varney & company" with the election special at five o'clock eastern. do not miss it please, that's on

election day. the mainstream media are calling last night's debate a win for president obama, we bring you the headlines new at ten. also, how much does each american household owe to foreigners, foreign countries? how much do you owe and how much do you expect goes to china. imus: this will be a new at ten story. we want to hear from you, about the debate and anything else we cover. send them to varney@foxbusiness.com. as we said, yahoo! post add little more profit than expected. and helped by sales of its shares in ali baba. and yahoo! is up this morning, 16 a share. we've taken it off death watch. and dwloebl trade, up 2 bucks and rent a center, disappointing revenue growth, doesn't matter, well, down about 27. coach, i call that a the democratic luxury company. the stock is up nicely, so, 3 bucks higher.

6%. xerox reported less money coming in hurt by weakness in europe. down it goes. harley davidson, the profit down and revamped production at the large esst factory. and lexmark blames the economy on less money coming in and i think it's the other way around, blames less on the weak economy, pretty flat. first question last night and neither candidate directly answered it on libya. former u.n. ambassador john boulton is next, the ambassador will give a direct answer to this question. >> the first question, and it concerns libya, the controversy over what happened there continues, four americans are dead, including an american ambassador, questions remain. what happened. [ male announcer ] how do you trade?

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around the country, around the corner. us bank. >> we're down 180 points. 13-1 is the level for the dow. the reason for this is primarily bad earnings reports for dow companies. we're up buck 75, now at 86 a barrel and average 3.64, down 13 cents in a week and diesel holding at 4.11. the first question, bob schieffer asked the candidates last night, what happened in libya? neither candidate answered it directly. joining the company is ambassador john bolton, a former u.s. ambassador to the united nations and a fox news contributor. you know, bob schieffer asked

that question, what happened in libya, governor romney kind of ducked it. why did he miss an opportunity to go right after the president? why did he do that? >> well, i think the campaign calculated that what their major objective in the debate was, was to demonstrate that governor romney had the capability to be a president in the national security area and it's important for a challenger. i think it's the hardest thing any challenger has to do. really, what the american people look for, they're very progno s pragmatic, they don't care about the ins and outs of the crisis today, they want leadership, judgment, integrity and vision that a president can bring to a crisis or a challenge, we don't know about yet. so, it was important for the governor not to get less in a t tit for tat argument. but to talk about the higher

level issues that the people are going to make their judgment on. stuart: i want a roll a sound bite and i know you've seen it before, ambassador. i want to roll it for our viewers, a conversation between mitt romney and medvedev of russia, and roll it, please. >> anl after my election, i have more flexibility. >> all right, well, ambassador, romney said that he would show current president putin more backbone. did have obama's number on this one? >> absolutely. and he mentioned the medvedev. if i was a political operative i would run that on a continuous loop. it shows everything wrong with the obama approach to the world and i fear we would see four more years in a second obama term, more flexibility towards

russia on the case of missile defense what they were talking about would be a disaster for the american people, but it goes beyond missile defense. every adversary of the united states and the world has that open microphone conversation on a dvd and whenever they feel bad they play it again in hopes that one when obama wins that's the way they'll be treated he as well. this is a very revealing conversation that president obama had. i think that governor romney was right to bring it up. let the american people watch it a couple of times and make their own decision. stuart: in your view when it came to looking presidential and handling foreign affairs, do you think that governor romney handed himself well. >> absolutely. i wish i could take credit for the observation, that if a space alien descended last night and watched the two men debating, they would have thought that romney was the president and obama the increasingly desperate challenger. stuart: i think that may well be the judgment that we receive after a few hours of watching

the outtakes there. ambassador bolten, a pleasure, thanks for watching us, sir. >> thank you. stuart: gold, 1800, now we're threatening to break through below 1700 an ounce. 1712, an ounce of gold is down 14 bucks this morning. earthquakes, very hard to predict, obviously, but if you're a scientist in italy you better issue a warning or you go to jail. what? sandra smith and brian gardner join the company the rest of the way, coming up next. ♪ she blinded me with science ♪

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>> this may shock you and please forgive the pun, listen to this, seven italian scientists charge with manslaughter, they argued they were guilty of negligence for failing to warn and evacuations before a massive earthquake that killed 300 people. there had been minor tremors prior to the big quake. the scientists were supposed to give warnings and they didn't and sentence today six years in

prison. investment banker brian garvey joins the company and so does sandra smith. >> two scientists if they get off on the charges, are welcome to come here, clearly italy is anti-science and why italy is having the problems they are more broadly and the second as for the residents that live there, they've been racked by earthquakes since time immemorial. >> what does it do to the scientists that live in america and other countries in the world and study earthquakes, what happens to them, my goodness better order an evacuation? >> they've made it clear that they can't forecast earthquakes. i'm not sure what the basis was for the law in italy, but we have scientists who made it clear that they can't forecast the precise timing of earthquakes or the intensity of them. stuart: the basis for the prosecution was negligence and the scientists were held to be negligent because they work in the earthquake forecasting business. they have these tremors in that

region, they didn't issue a warning, they didn't issue evacuations, that's negligence. >> and they're calling for the verdict calling for damage payment for this because they can't call it. i was comparing in the hallway to louisiana you assume a certain risk by living in a certain area. we can't try to pin the problems on scientists, that missed forecasts. stuart: it's one of the unimaginable stories. i can't get my arms around it. >> they can't get this weekend's weather forecast right. how are you going to predict an earthquake in italy. >> trust a banker to bring us down to earth. welcome back. next the mainstream media calls the debate a win for obama. our watch dog responds to that. with foreign policy the focus of the debate neither candidate mentioned how much money each american household owes in foreign debt. that number is new. we've got it for you. it will be new at ten and it's big.

♪ >> instant reaction from last night's debate. polls say obama won. mainstream media says obama won, but did he? we're talking about throughout the hour with a lineup of guests including our media watch dog. and also new at ten. foreign policy and focus last night. and today new numbers showing just how much we owe overseas interests. 47,500 per household.

that's our household foreign debt. 10,000 of that to china alone. more on that coming up. to the big board, yes, it is a selloff. the dow industrial is opening with a big loss. down 178 as of now. and here is the company. sandra smith is back, and kbw brian gardner is here and nicole petallides on the floor of the stock exchange. a big selloff. primarily there are two big names, two big dow companies that are responsible for a lot of this loss, go. >> a couple of names that we touched on at the top of the show. dupont and 3m are warning about the outlook and 3m is coming out with a quarter, but a stopped global economy and they're cutting numbers and dupont morning on demand for them and you're seeing both of them, dupont 28 negative dow points and 3m 22. >> so it's bad profit, bad outlook and not bad politics

that's pushing it down to 13,170 as we speak. i want to look at one winner. not concentrate, but we often bring up coach and i find that democratic luxury products and that's what my name for it is. but it's up today. tell me why. >> it's luxury, upscale leather good from bags to men's wallets and such. when you see the up arrow more than 6% and they said what's interesting. north america and china are back. where they saw slowing sales in the quarters prior and we heard that from tiffany and heard that from burberry, what we're hearing today from coach is a completely different picture. they're saying they're back and seeing double digit percentage growth in those two areas. stuart: that's a contradiction from other mainstream. coach is an i'm not going to say an outlyer, but a different

outlook. >> and president obama was more aggressive and attack mode than previously. listen to this. >> i think that governor romney hasn't looked how the navy works. we have fewer ships, but also fewer horses and bayonets, because the nature of the military changed. aircraft carriers where planes land on them. we have the ships that go underwater. nuclear submarines. stuart: well, that was kind of mocking, condescending, sarcastic and my question is this, is attack mode a good image for a sitting president. governor romney was calmly critical of the president for his foreign policy the past four years, particularly his handling of the middle east. >> the reason i call it an apology tour, you went to the middle east and flew to egypt and saudi arabia and turkey and

iraq and by the way, you skipped israel. our closest friend in the region, but you went to the other nations and by the way, he they noticed that you skipped israel and in those nation and on arabic tv you said that america had been dismissive and dericive. >> i want some company reaction to this. you are itching to get into the first bite from the president. >> it's not going to go over well with the military crowd the fact that he, you know, just arrogantly compared naval warships to horses and bayonets, that's not good. that being said one of the quotes of the night for mitt romney, attacking me is not talking how we're going to deal with challenges in the middle -peast. i think that he was calmly critical of the president, but he appeared very presidential and he did stand his ground. stuart: you found a boring didn't you. >> i found a very boring. stuart: you didn't want to stay-- >> i was very, very, into the first two debates and this one was borderline difficult to

watch. stuart: your comments? >> i think romney stayed above the fray and the goal was to look presidential. i think he met that test so i don't think that last night changed the-- the direction of the campaign, which is starting to trend in romney's direction. stuart: a-ha, i'm glad you brought that up. breaking news on that subject. we're getting the latest numbers from rasmussen's swing state poll. look at this, romney 50, obama 45, romney up 1 and the president is down one, just from yesterday. and nothing to do with last night of course, this poll was taken before last night's debate, but that's a widening spread and that's remember is the 11 swing states coming in there. now, that's a trend. that's a trend, towards romney in the swing states. >> you're seeing two trends, one is in a couple of polls, romney is start to go hit 50 or maybe a tick above in gall lup, the and president seems, regardless of the poll, the president seems to

be stuck in 46, 47% range and that's not a good place for an incumbent. >> one thing they both did, despite a foreign policy debate is mitt romney particularly, brought it back to the economy. he brought it back to what people want to hear, and what, that they obviously want to talk about and mitt romney was very clear, his job as president, would be to create jobs and put people back to work in this country and that continues to be what voters want to hear. stuart: even the most liberal in the media gave the first debate to president obama. no, actually gave it to romney. >> to romney. stuart: even the most liberal. that was debate number one. sentiment was split i would say in the second debate. how about last night? the media clearly gave that one to the president, to president obama. i'm going to give you some headlines, washington post says, obama keeps romney on his heels, okay. and los angeles times says, obama reverses roles, comes out swinging in debate. san francisco chronicle, the

headlines, romney sweats, obama doesn't. and joining us tim graham, a media analysis at the media research center. tim, was it universal across the establishment media that obama won? >> well, yes, and it's because on some level they look for the instant polls. and remember, now though that some of these instant polls like the ones on cbs are instant polls only of the uncommitted voters and i guess you could argue they are ate the ones that matter and maybe the poll that matters is the one are you more likely to vote for obama now, are you more likely to for romney. those were pretty much a wash last night. i'm looking within the overall instant poll numbers, i'm looking at cnn, for example. they asked people, all right. how do you think these, the two candidates come across in handling the job of commander-in-chief. 63% said president obama's okay. 60% said romney is okay.

that's pretty close on handling the job of commander-in-chief. and when asked women, a similar question, it was split 50-50 between romney and obama, female support. so, i'm suggesting if you dig with the overall numbers, the first came out, you might have a different view of who won and who lost the debate. >> you might. but you know, again, we have a liberal media that's going to declare obama the winner unless it's incredibly obvious he's not the winner and taking off this morning then on the idea that romney said that obama was on an apology tour and we have an entire liberal media establishment that wants to say if the president never used the word apologize, he didn't have an apology tour and i thought romney's answer was complete refutation of all the journalist,,let's quote what you said you went to cairo and the

capitals and said we've been dismissive and arrogant imperialists, what do you call that? i call that for a president apologizing for his country, but they have the media spinning as usual. >> real fast, i don't think it's working or enough time for the media to do anything about this. i gave our people the viewers, the latest rasmussen 11 swing state poll, 50 mitt romney, 45 obama. last word to you, too late for the media to affect this? >> it's possible, but again, we could see some of the most aggressive biased to date coming in the next two weeks, if they really believe obama is losing. stuart: we're looking for it and so are you. tim graham, thank you for being with us. here is what you're saying on our facebook page. quoting first from edward. romney won on substance, content, facts. obama may have won on style

points. what edward thinks. john says, romney was confident and presidential. obama seemed arrogant and small. interesting words. bret says this, no one won, but romney was more professional. obama was condescending and unpresidential. that's all on our facebook page. join that conversation, it's ongoing 24/7. russia came up a lot last night. president obama criticizing and mischaracterizing romney's position on russia, saying he says it's our biggest threat. >> romney says that's not true, iran is. and a conversation between president obama and medvedev. after the election i'll have more flexibility. well, that came up last night. and colonel rf peters, is coming up. what does he think about this talk of russia?

10:35, the colonel will be here. and november 6th you get two servings of our show. 9:20 in the morning and another live show starting at 5 p.m. don't miss it, please. beverage maker, monster, its market value came down 1.3 billion dollars yesterday in a matter of minutes after the fda says it would investigate five deaths that may be related to the energy drinks. where is monster now? >> we've seen it with the down arrows, this is terrible news if you're a monster shareholder and you work at monster, don't want to hear about deaths and possible correlation between the monster energy drinks and these debts. of course, monster says in no way that they're responsible the at all for these five deaths, since 2009. one of which is a 14-year-old maryland girl who drank two cans in 24 hours. one thing i should note though and they're saying that they are not responsible until we find findings, we'll go with that.

but at the same time, energy drinks are often marketed as dietary supplements and regulated more loosely and there were 13,000 emergency room visits involving energy drinks. stuart: a big number indeed. >> i don't drink them, i don't know. stuart: thanks indeed, nicole. dow is down 187. new at 10. new numbers on how much money we owe to foreign country. u.s. debt held by foreign interest, $47,000 per u.s. household. the numbers coming from the u.s. treasury and census department. if you're talking just about china, that number is $10,000 per u.s. household. and why are you smiling? >> no, i mean, it's quite shocking, if you look the at the debt per household and compare that to when president obama entered office in january of 2009, that number has doubled. >> it has. >> so, you talk about a national security threat.

as governor mitt romney pointed out last night. we need to take this debt very seriously. >> i think the governor brought it up last night. we're on the road to looking like greece because of our foreign debt. what do you think of that? >> i think he sees it as an advantage to his campaign and i think he can link it, too, to the currency situation where he said that he wants to label china has a currency manipulator. because i think he sees it as a leverage issue in our broader relationship with china so i think he's linking the debt usual and the currency issue together to have a holistic look. stuart: and $47,495 per household and as they were talking about, a talking point for the future. well, there's two weeks left i'm sure it's going to come up again. california, what's this? california gets back to its senses and says no to big government? what? monster beverage under

investigation for deadly drinks and italian scientists jailed for failing to predict an earthquake. all rise, the judge a lightning round giving a verdict on all three stories. bob... oh, hey alex.

just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on tho mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. >> i'm going to call it a huge market selloff and it is right now. dow industrials are down close on 200 points and the level now the lowest since the beginning

of september. most of the reason is worries about earnings. some big dow companies, dupont. 3m. disappointing results and down goes the dow. you can see that right now 29 of the 30 dow stocks are down and look, look at the one that's up. the one that i own, microsoft. god bless them. about 95% of the stocks in the s&p are lower, but microsoft is up. selloff not limited to stocks, look at gold closer to breaking below 1700 right now and oil is down sharply. lowest level since july at $86 a barr barrel, but if there's one bright spot in the carnage, gas down 13 cents in a week. now, watch out. here comes the judge. 90 seconds away.

>> did you see this? i want to show this amazing video from last night. watch closely. hunter pence of the giants, breaks the bat, but makes contact for three times. it went for a double and giants ended up going to the world series, a big win for the giants, three times. he broke his bat and hit it three-- i have never seen that before. he is-- even in california. >> with the crooked wicket. [laughter] >> and even in california they're getting tired of union power, according to a new poll.

53% say unions have too much power when negotiating pay and benefits. could that mean they'd be willing to put limits on union power? are you kidding? all rise, judge andrew napolitano, not a prayer is my opinion. >> this is a state now rivals the people's republican of massachusetts, being so overregulated with government regulations and control. if the people of california feel this way they have not manife manifested their feelings in choice of representatives to run the state government. stuart: if it went to 73% or 83% i'd listen. >> it might be a different story and of course there's the obstacle of my former colleagues, the courts, which have invalidated thus far, quite inappropriately, in my view, the legislation in wisconsin. i think the outcome's going to be different. i think the supreme court of wisconsin will reinstate the law in wisconsin, but right now, it's out. they've petitioned the court to

reinstate it during the pendency of the appeal and late last night the court said no. i don't know if they're political decisions intended to influence the voters in wisconsin i know we're supposed to talk about california, but the law is out in california right now. >> i've got two more quick questions for you and we've got to let the judge go shortly. two questions first. monster beverage, sued by the family of a 14-year-old girl who died and parents say she drank two cans of monster energy drink in a 24 hour period. what do you think about this lawsuit? >> well, this is-- >> is it negligence? they should have warned everybody drinking the drinks, there's a lot of caffeine. >> this is a classic wrongful death lawsuit and it's against a corporation with a short track record in the public marketplace, this is not like suing general motors because the brakes didn't work. this company hasn't been around that long so a jury will decide there was too much caffeine there or inadequate warnings, and basically become a swearing

match between experts. the plaintiffs will produce scientists that will say this is too much caffeine for a 14-year-old and should have been warning and monster beverage will produce scientists that say, she had a pre-condition. stuart: she did actually. will it go to trial. >> i think they will. stuart: if the company settled earlier, liability did $. >> no, they can settle without admitting liability or settle because it's cheaper than litigating the case. if they settle there will be no ultimate resolution and wait for somebody else to be injured. stuart: it will invite more lawsuits if they settle. >> yes, yes. >> seven scientists convicted of manslaughter for not warning about a major earthquake, what do you make of that? >> i make that it was a witch hunt by the italian government in an effort to blame on human beings a natural phenomenon, which is an earthquake. i mean, to incarcerate

scientists because they failed to produce a natural occurrence, like an earthquake or a hurricane, will result in scientists never wanting to work in a capacity where they're asked to make these predictions for fear if they're wrong this'll go to jail. >> could it happen in america? >> i don't think it would happen in america, i think there are mechanisms in place to prevent this kind of litigation. now, if there had been intentional misrepresentation so there could be some financial gain, almost inconceivable how that could be, that would be a different story. stuart: there were tremors in the area before the big quake that killed 308 people. there were tremors. but predicting is not a garan tore of his work and the failure to predict accurately is hardly a crime. a crime implies, baseline is an intent to harm people and i don't know how that could possibly be in an american

court. the italians have a different standard and-- >> you never know what's going to happen in an american court. >> and you never know in an italian court. stuart: judge napolitano. [laughter] >> nothing to do with this. [laughter] >> thanks, judge. >> a pleasure. stuart: mitt romney maintains his momentum. that's my take on the debate and my take is next. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.

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>> if we try to take credit for this observation, i've seen it in many places if a space alien had descended last night and watched these two men debating they would have thought romney was the president and obama was the increasingly desperate challenger. stuart: a lot of people said that. that was ambassador john bolton in the last hour with his opinion of last night' debate, catch more 9:20 sharp, that's when "varney & company" starts. check the market, doesn't look good. low of the day, down 225 points. challenging 13-1 right now. and nicole, harley davidson is up and i want to know why. >> that's right, a big winner on the s&p 500 today, stuart. they came out with the quarterly numbers and let me just go through this for you. the outlook is good and that's why you have the up arrow and let's get to the point first. quarterly earnings came in and they dropped a little bit and kept the full year forecast steady and that in itself was

good news and also working on how they do their production to weak fluctuating market demand and last but not least, hitting not only the baby boomers, all time biggest customers, but doing a lot of market gearing towards women and also to young customers. so, that's another factor in their success. stuart: okay, nicole, thank you very much indeed. oil just broke below $86 a barrel. that's a big one. dow is down 223. president obama gets aggressive with mitt romney last night. listen to this. >> well, governor, we also have fewer horses and bayonets because the nature of our military has changed. stuart: yeah, aggressive, sarcastic and condescending as well. and ralph peters joins us and his reaction to his remarks on the governor's military strategy. 10:35 coming up and here is my take on the final debate. i don't care what the instant

polls say and not prepared to accept the judgment off the media establishment. i'm making a separate judgment. i think the people who watched come away with a general impression of candidates and on that basis, i think that mitt romney maintains his winning momentum think about it. by the end of the debate series most people are the not concentrating on the policy details, they're not really focused on policy period, no, they're looking at image. is this the man, is this man a president, is he a leader? does he inspire confidence? do i want to see him on tv every day for the next four years? last night, mitt romney to me looked presidential. and i don't think mr. obama came across as a sitting president in command. he was sarcastic and small bore, seemed more like an aggressive challenger than the man in the oval office and here is something else to consider, america will now be presented with an endless stream of sound bites and see a highlight reel from the debate so the judgment of the next few days will be a

better barometer than the judgment of instant polls. and it will be the highlights that most people watch. after all, how many people actually sat through the entire event? how many people switched to football or baseball games? romney maintains his momentum and the president did not make a big comeback, that's my take.

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>> i do believe we have another low for the day. minus 238 points on the dow and let's bring in larry levin with trading advantage from chicago. i'm saying that this is about the weak outlook for corporate profits as opposed to anything to do with politics, is that right? >> yeah, there was some news about spain that dropped the market a little bit, but sautua, why they're selling the market, corporate profits. 3m, ups, and an outlook doesn't look good for companies, and-- 10, 15 minutes ago, i saw the price of oil drop well below $86 a barrel. okay, 85.92, but that's down big. what's going on with oil? >> it's interesting, technically, oil and gold are both very weak right now they've

kind of bounced off the support levels and bounced through the support levels. so $86 is a big level in oil and interesting to see where it stays below 86. you might see a bounce, don't be surprised, if not. 80, 79, $78 is is probably in play the next week or two if we stay below 86. >> i find it interesting, two weeks before the election, it's not a political market, but the levels-- >> i agree not political, not debate oriented, but political in that i think maybe fiscal cliff. that people have been factoring in fiscal cliff going into the quarter and that's reflected in consumer behavior. >> all rights. >> we've got large corporations like caterpillar doing so well, lowering their outlook and facing the fiscal cliff and higher health care costs and companies are running scared right now and that's starting to price into the market. >> we got a bit of sarcasm from

president obama last night and i want to roll that. >> i think that governor romney maybe hasn't spent enough time looking how the military works, you mentioned the navy for example, we have fewer ships than in 1916 and governor we also have fewer horses and bayonets because the nature of the military changed. we have things called aircraft carriers where planes land on them and we have the ships that go underwater, nuclear submarines. >> joining the company is lt. colonel ralph peters, analyst, what do you think as a military man when you see the president talk like that, we have things called aircraft carriers, what's your reaction? >> it was a funny line which got an audience reaction, but the president was the one who was wrong. and by the way, we do still have a lot of bayonets. but in the navy, for the navy and i'm a former army guy as you know, stuart, but i still believe that the united states is essentially and primarily a maritime power because we're a global trading power.

and numbers matter. the real argument should be over what kind of ships we need, what kind are survivable, but we need more to maintain the global presence we must maintain. you just need enough hulse to be in the pacific, to be in the persian gulf, to be in the med, to have an emergency reserve and dry dock, the president was wrong. stuart: did the audience pick up on the funny comment or the fundamental analysis of what the navy has and needs that you're coming up with? i suspect it's the funny comment that the audience will comment on. >> the national audience and the audience in house, yes, picked up the funny comment, but, remember, virginia is a crucial swing state and virginia has a huge naval presence in norfolk, to support the regional economy and a ship building state and it's a military state so i think obama won the moment, but lost a lot of votes in virginia. stuart: next topic, governor

romney basically told the president he's out of touch when it comes to russia, just watch that for a second, colonel. >> russia does continue to battle us in the u.n. time and time again,i've clearized on this and i'm not going to wear rose colored glasses when it comes to russia or mr. putin and certainly not going to say i'll have more flexibility after the election. >> and russia is not our friend, but doesn't have to be our enemy. the reset was a joke. and obama-- putin himself cracked down on democracy demonstrators and the russians just told us they're blowing off the inspection of weapons of mass destruction, the stark treaty, strategic arms reduction was totally disadvantageous to the u.s. and gave up dual use systems and russia gave up nothing that wasn't headed for the scrap heap

and obama got a treaty. and we did forgive for attacking georgia. russia is corrupt, and putin is-- and you saw how bp was forced into a bad deal. and i think that romney is right. you don't have to be fully confrontational with russia, china or anyone else. you need to stand up for america and not roll over. stuart: why did governor romney flat out avoid attacking the president on libya? >> well, i think that was a, a strategic, or if you will, a tactical decision with a strategic purpose. he didn't want to give mitt romney another opening to come back with a smart quip on it. he senses that the media are carrying the ball on this one and people have heard about it he didn't want to get ambushed. what romney needed to do, and the pundits saying obama won missed the point. obama-- i'm sorry, governor romney needed to do what the military

is called a holding action. romney wasn't going to beat obama outright, but he had to hold the enemy the at bay and hold him off and that, governor romney did very well and wrong that governor romney lost votes last night and i think that obama may have lost some in virginia and florida. and romney was much better on israel and iran. >> and the navy keeps coming up. always a pleasure, thank you for joining us. >> thank you, stuart. stuart: apple hours away from making a major product announcement. all the evidence points to a mini ipad. is that what we're going to see. fox and friends host clayton morris is our tech watcher, joins us live from san jose after this.

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expected and nothing too negative in its report. on a day like today. it's good enough. harley one of the biggest gainers of the s&p 500. we are going to come back in 90 seconds to get a report from clayton morris, he's live in california on site for apple's latest product announcement. what's it going to be, do you think it might be an apple ipad mini? . follow the wings.

[ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. >> this is a market selloff. the dow industrials down 241 points. and i've got a big loser xerox,

i want to know why. >> and we've seen tech companies, and xerox saw the quarterly numbers out. fall, third quarter profit just 12%, the sales of printing and services company, all continue to wane and their outlook, they're having to lower the top end of their outlook. so that's not good news for xerox. stuart: the same with all of the big companies, they've lowered the outlook and that's the problem for the market and why the dow is down 240 points. >> nobody saying, we're predicting great sales ahead and going to say our forecast. stuart: apple is down nearly $9 a share as we speak and apple is holding a big event today in california. and they sent out this invitation last week, saying we've got a little more to show you. we suspect, it's the release of the ipad mini, we don't know for sure. maybe something else, i don't know, but fox and friends host,

clayton morris is joining us live from san jose, all right, clayton, are you prepared to tell us, yes, it's a mini ipad and yes, it's going to have what is it, eight inch screen and yes, priced about $400 apiece? what is it? >> i'll give you one of those, one of those three if i could, yes, we will see an ipad mini today. my sources tell me that's in fact one of the big headlines from this event that we'll see. whether it's called an ipad mini, i doubt it. could be called ipad air. no one knows. price is the interesting factor here, steve -- steve? stuart. it's been a long morning. [laughter] >> that's okay. >> if you think about the price issue here, you've got the google nexus 7 priced at 199. no 3g connection, it's $199, but that's a low price point for a seven inch tablet. do they come in at 199, 399,

that's what i'll be watching, what's the price of the device. stuart: amazon is going to be watching, too, the price point for the ipad mini makes it a price competitor may be with the amazon kindle. i guess, that's the big comparison? >> that's the big comparison, amazon gives those tablets away like candy and they make no money on their tablets, but apple does not make hardware that they can't make money off of, right? apple doesn't get into the business of handout hardware, they're a hardware company and itunes and nice things are ancillary benefits selling apps, but they're a hardware company. if their margins aren't large enough they're not going to make it. stuart: i've never seen apple introduce a new product that wasn't received with a big wow from just about everybody, in recent years, going up the last ten years, and every single product it's just a knockout and up goes the stock. is there any reason to believe that an ipad mini will not be

the same this time around? >> i doubt it. you know, there are a lot of people, and my friend gretchen carlson on fox and friends, she's been waiting for a lighter, thinner ipad, something to throw into her purse. i think the campaign, will include children reading books and kids playing games and today, it's going to be all about education. you're going to have new i-books rolled out today as well. look for a big push in the education market. think about schools getting rid of all of those textbooks and instead partnering with apple to do, bring in ipad minis into the schools. and seven inch screen, it's a compelling price point and a compelling device for kids in skills and no more backpacks. stuart: we're watching it, apple stock is down 8 bucks as we speak. clayton do well in san jose, know it well. thanks. >> thanks, stuart. stuart: and islamic extremism.

a major issue in last night' debate. and the man who wrote "islamic tsunami" that will be after this. [ engine revving ]

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>> tell me how it is. this is a big market selloff. we're not the low of the day, but down 231 to the dow.

back to 13-1. back to the debate. attacking policies on the middle east. >> we are also going to have a far more effective and comprehensive strategy to help move the world away from terror and islamic extremism. we haven't done that yet. we talk a lot about these things, but you look at the record, you look at the record of the last four years and say, is iran closer to a bomb? yes, is the middle east in tumult? yes. >> joining us now is david rubin, the author of "islamic tsunami", israel and america in the age of obama. >> do you like what mitt romney had to say in the debate. >> i think he said a lot of good things and also miss add few points that needed to be pointed out. stuart: go. >> well, i heard president obama speaking about his israel policy. i think we need to remember that president obama, this is the same president who in his first foreign policy phone call was

made to abbas of the palestinian authority who is the president and holocaust denier. secondly, his first two visits to the middle east were to cairo, egypt and istanbul, turkey, where he spoke about how the call to prayer for the mosques is the prettyiest sound on earth. stuart: are you adamantly oppose today president obama's policy vis-a-vis israel and the rest of the middle east? >> there's no doubt that president obama's policy has been hostile to israel. there were several polls taken in israel in the past couple of years, whether, asking whether president obama is pro israel. they have ranged from 3% saying he's pro israel up to 14, 15%. stuart: that's it. okay, now switch to president-- to governor romney. what do you make of his likely policy. is he hard enough, strong enough for israel? what do you think. >> i think that he understands the middle east a little bit

better. stuart: you want more? >> i would like to hear him speak out a little bit more, yes, but the arab spring has been an absolute disaster for israel and for freedom in the middle east. we have to remember, there's a difference between free elections and real freedom american style, which includes freedom of religion, freedom of the press, freedom of speech, which is something that you don't have in the islamic culture in any of those countries in the arab spring. >> is it really a disaster for israel? you're surrounded by increasingly islamic states and they're all in turmoil and the major cities are in rubble. their forces are not very good. and they're in poverty and in dire recession, if not depression. is that automatically terrible for israel? >> it means they might not attack right away, but that's. >> they're weak. >> if you look at egypt. the muslim brotherhood is in charge. this is the same muslim brotherhood that calls for the

destruction not just of israel, but the doctrine says that they called for, to destroy and eliminate the western civil satisfaction. >> they're arguably weaker than they were than under the strong man of gaddafi or assad? >> the economies were weak either way and they'll continue to be weak, but that's not the issue. all you have to do is look at iran and see that despite the fact that their economy has been weakened by the sanctions, they're still going ahead full steam with a nuclear bomb program. >> what do you make of that october surprise, new york times, saturday morning, news of maybe talks face-to-face after the election between the united states and iran on maybe ending some sanctions in return for something enriching uranium. and you look skeptical? >> i don't -- i don't think that you're going to see anything like that. i think that obama, the obama administration tossed it out as a trial balloon.

when they heard there was a lot of negative reaction and made him look weak, then they backed down on it. i think you may see it after the election if obama is reelected. stuart: david rubin come back and see us again. appreciate you being with us. >> thank you, stuart. stuart: now we've got a special highlight reel from all of the debates and it's next. [ male announcer ] do you have the legal protection you need?

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then you can customize the strategies and naow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovativeeason seous investors are choosing fidelity. now get 200 free trades when you open an account. stuart: it is the market selloff. the dow jones industrials are down. i want you to check the price of monster. down more today. goldman removed it from its list. the highlight reel. >> i am sure this was the most romantic place you could imagine, here with me. [ laughter ] >> now you are jack kennedy. >> he did call it an act of

terror. >> you do not dissipate the winners and losers. >> the nature of our military has changed. >> i leave you with the words of my mom who said, go vote. make you feel big and strong. stuart: your verdict on the last one? >> i think he lost a lot of votes in virginia. that was cut out first sight, a win for obama. could have been a big loss. >> obama won the battle, he lost the war. stuart: interesting. good stuff. brian and sandra, thank you. dagen and connell, it is yours. co