♪ ♪ imus in the morning ♪ >> good morning, everyone, no

retreat today, at least at the opening bell. stocks look set to open just a little higher and we're one big rally away from dow 15,000. bird flu, another company anxieties there are hitting here. and we are covering the masters, our producer calls it pretentious nonsense, i'm following the money. it's flowing to tiger, 3-1 in vegas. and about to tee off and so aref and about to tee off and so aref we. "varney & company" is about to begin. textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus

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[organ music playing] >> we did it. dare we put personal computers on? . the research firm says global shipments of pc's down 14% in the first quarter.

the biggest drop they tracked numbers. windows 8 that software a flop. mobile grows, pc's die. and by the way, goldman has microsoft on its sell list and that stock is going to be down at the opening bell. i'm in mourning. and how about confidence, 31% of people say the country is headed in the right direction. ed butowsky is here, he manages money. i'm going to read that as a total lack of confidence. are you surprised? >> i'm not completely surprised. there's no clarity. nobody is happy with anything going on and you get outside of washington, nobody's happy. nobody's confident and now what the 31%, i think that's a high number, close towr to 80, 90% o people and nobody. stuart: i've got this for you right now. bird flu in china.

big drop in profits and k.f.c., how far will it spread, all the way to your wallet? and we'll have the opening bell next: are you still sleeping? just wanted to check and make sure that we were on schedule.

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joining us now from chicago, tres. and i've been reading your e-mails, you're fired up about japan. what's got you so riled up? >> absolutely, stuart. i think that the policies set forth last week by the bank of japan. i think that the japanese are declaring war on their bond market. they're setting a 2% inflation target. the yield on the 10-year treasury in japan is .60. what bond holder would want to hold a security that yields .60, if inflation is at 2%, and also look at what's happening to the yen. if i'm a bond holder, i have lent the government money and that security is an iou. the government is now going to pay back the bonds with devalued currency. >> why do i care? it's bad news for the bondholders, why do i care? >> it's the third largest economy in the world. if japan has a debt crisis,

remember, they have the same gdp as the state of indiana. greece doesn't matter. japan is the third largers in the world and if they have a crisis it will send shock waves through the world including ours. stuart: tres, we did hear you. did you hear it? that's the opening bell, i hear that. [bell ringing] off we go. by looking at the flat to slightly higher opening, all right, now we're down 9 points, puts us back below 14-8. give it a couple of minutes and let's see how things settle out. now this, you do not like windows 8. you are leaving pc's behind and buying smart phones and tablets instead. nicole, where are the pc stocks right now? i know they're down. >> right, you can see one of which is down 6%. when you talk about hewlett-packard and talk about microsoft. you see the names to the down

side and you know, the consumers are clamoring, tablets, tablets, we want tablets, we don't want pc's anymore is what they're telling you. and they're the biggest year on year draw in nearly two decades. and microsoft and goldman sachs. and hewlett-packard at citigroup. you have everybody jumping on board and your windows 8 has been seen as a big drag and consumers are avoiding it altogether. >> what do you mean by windows 8. i didn't design that sector. >> stuart varney's windows 8. microsoft and-- >> by the way, i mean, microsoft is a dow component, when it drops 3%, that's a drag on the dow, but we're still managing to open-- now we're up 6 points on the dow industrials despite the impact of microsoft. >> and hewlett-packard, also. >> always looking for the bright side, nicole, don't bring me down. and a complete change of subject. president obama, he calls it a

budget plan. we are going to call it a tax plan because, successful people would pay more on their income, they would get less, lower deductions and the patient savings, a long list of extra taxes in the so-called budget. ed butowsky is with us. the white house admits and says, look, with this budget, we're still going to get at best, 3% growth. is that realistic? >> yeah, i don't think we're anywhere close to that. i would say this, if we somehow get 1 1/2% growth, somehow, because i think it's worse than that, i don't want to bring you down, but i want to be intellectually honest, and we're going to see 3% growth from what we have now. right now we are getting more and more of the same. >> if you're right and we get much less than 3% growth. we cannot return to prosperity and cannot return to an employment situation this rosie unless we chuck a million more people out of the work force. >> look, the number of the

unemployment rate might come down, but nothing is going to get better from this budget. this is like taking a wound and pouring salt in it and ripping it open. >> he says, the president says if we invest in education, transportation, infrastructure and that's the proposal in this budget. if we invest and spend more money there, that will make the economy grow. and you say? >> well, it's just not going to. the economy doesn't grow he by investing in education. i want everybody to have a good education and live a much better life. the way to go about it, quite frankly, 180 from what the president is proposing. >> i want to change subjects. if you combine microsoft and hewlett-packard, both dow stocks, they're way down because of the pc news, you're taking 21 points off the dow, okay? would you buy microsoft at 29? >> i buy it just-- we know you own it and i would buy it just for you and my

friends. stuart: goldman sachs doesn't say neutral, they say sell it. >> anyone that derives earnings from outside the border, microsoft growth rate is outside of the borders, you're going to see it not just pc's, but stuart, give you good advice on the microsoft stuff. stuart: i hear you. ed butowsky, thank you very much indeed. short, sharp, to the point. and we're at 14-8 where we are. the message of president obama's tax plan, you heard it, force the rich to pay their quote, fair share. one of the patriotic millionaires is willing to pay 50% of income in taxes. did you bring your checkbook with you. do you think that 50% is legit? why don't you take out your checkbook and write that check right now. will do you it? >> i did not believe taxation is is a voluntary process.

stuart: that man, he'll join us again at 10:35 this morning. fun and games on "varney & company." do i have a deal for you. how would you like a four-day caribbean cruise for the low price of $38 a night? that's what carnival an offering right now. okay, nicole, you're packing your bags? >> i mean, that's pretty unbelievable, two $20 bills and go on a four day cruise? are you kidding me? and the stock is up at 34.11, been a losing down 7% and that's after we saw one disaster after another. the triumph, the dream, the cruise of a lifetime, right? they've had so many issues and yet managed to hold on and now they' they're obviously trying to woo those customers in asap. stuart: and now check the share price of yum! brands. it reported a 35% drop in sales at k.f.c. unit in china because

of bird flu. not affecting the stock much, but affecting the sales in china and by the way, we've upped the death toll in china, now ten people died there and by the way, there are reports of a gene mutation that makes the virus resistent to tamiflu. >> and we're bringing in dr. mark cycle. marc siegel. and everybody is worried about, like sars, and shut the country down. is this like a sars kind of event? we're coming for you for technical information, number one, is this transmitted from birds to humans directly? >> it can be. there was only going from bird to bird previously, but now it's starting to lodge in human nostrils, but it's not spreading from human to human. stuart: that's important. >> not only is that important. there are so many viruses that do this. it's not like sars, it's like

influenza. flu starts in birds. a lot of times flu strains will go from birds to humans and what worries us, is when it gets to humans it's particularly deadly, but not spreading from human to human, fear is spreading. and that's the economic coin here. >> hold on, i've got to go at this. we're not trying to reassure anybody, but i want to assess the potential impact on the rest of the world. you're saying that so far, this bird flu does not go from human to human, i call that good news, right? and secondly, it doesn't go from birds to humans. it does go from birds to humans, but only if you inhale. >> very, very close contact. >> it's hard in birds and trying to figure out what birds have it, and h 5-n 1, the birds got very sick. i tell you what's very, very good news here, stuart.

the technology that we're seeing. they're seeing it out of genetic information, from the chinese scientists and preparing for a possibilities of a vaccine, i don't think they'll need. plenty of companies, novartis, sanofi-aventis, they could team up and make a pandemic vaccine. that could be big money. i don't think it's going to happen. stuart: headline in the wall street journal, a four-year-old boy recovered from a strain of bird flu that killed the people in china. that's good news, isn't it? >> absolutely. but pandemics, worldwide pandemi pandemics, caused by h-1, h-2, h-3, the protein on the surface of the virus. this is an h-7. as far as we know we've never seen a pandemic. we've got to worry, study this when people get sick, it does

follow it's going to circulate like the movie "contagion". stuart: thank you, we appreciate it. i've got the 7 early movers, a lot of big news, deutsche telekom sweetens its bid for metropcs, and here is is a look at pcs, it's flat. and the network security company cut its outlook, it's down 16%, watch out. better than expected sales at the retailer zumiez and it's up. toyota, air bag recall, but the stock $112 a share, i'm sure that's because the yen is all the way down and they're going to sell more here. strong sales and better than expected profits at bed, bath and beyond. chevron said widespread maintenance issues cut its production in january and february, but it's flat.

22 cents higher. weaker sales cutting into profits at the restaurant chain, ruby tuesday, dead flat. 8 bucks a share and i'm going to call it a dead flat opening. time is money, 60 seconds, what else we've got for you thursday morning. the great state tax debate takes us to maryland today, where joe flacco, the super bowl winning quarterback, the baltimore ravens, that's where he works. his agent is going to join us. stuart: we're going to ask him if he jacked up the salary because of the high taxes in maryland. and irs says that agents can reads your e-mails and text messages without a warrant. you can bet the judge is not happy about that and he will be with us. and we'll give you the latest odds on who will win the masters. if tiger wins, do the bookies lose? we'll ask the man who runs the sports book at wynn, las vegas. president obama's tax plan

includes 94 cent increase on cigarettes tax to pay for preschool for all. the question, does preschool make a difference in later performance? a mother of six and experts in education will answer that next. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." given way to sleeping. tossing and turning have where sleepless nights yield to restful sleep, and lunesta eszopiclone can help you get there, like it has for so many people before.

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and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur >> check that big board. down 14 points. look at this, the dow would be up if it weren't for hewlett-packard and microsoft, together those two stocks have been out so much in the dow stocks, they're shaving about 20 points off the dow. without them we would be up. and president obama is free preschool for low and middle income families and the increase in cigarette tax would pay for it. and bring in miriam, a mother of six and knows a thing or two on preschool on a professional

basis, that's correct. >> yes. stuart: forget the money for a second. >> okay. stuart: here we've got the states taking more and more control of children at an earlier and earlier age. low and middle income families will now be subsidized to let the state take care of their children during the day. i don't like it. do you? >> i think that in order to facilitate parents being able to go to work and bringing in more income to the home and potentially help the kids longer and further their education so later on when they are teenagers, hopefully that early education made an impact, they're not a burden on the state and-- >> you're implying that preschool works and improves economic performance later. >> evidently researchers in north carolina and michigan, studying for decades, a true and real effect on the long-term effects of preschool education. stuart: aren't there studies that point in the other direction?

>> in october or november last year, shows that head start is failing. so putting this money, families money in d.c. and-- >> and trying it it work out which side of the fence you're on and i don't know. >> personally i'm all about kids going to school at an early age and those skills are important to learn. do i think that middle income, upper middle income kids are going to do well without preschool, yes. but we're targeting the low income families, and can do bell. stuart: the state does better looking after young kids from low income and middle income families, doing better than the parents themselves. >> classroom is better than the tv. stuart: you're saying that. >> i'm saying there's potential for that. evidence that shows that when kids in low income families are saying home, what are they doing? they're not playing with the toys, they're in front of the tv i'd rather seeing that child doing cooperative play, and dramatic presentations, doing whatever it is so they're learning the schools later on

they can cooperate in the boa boardroom and continue in college. stuart: do you think that america can afford an all encompassing program? >> can the cigarettes smokers afford? that's their problem. would i prefer the money goes to somewhere else. stuart: what about when fewer people smoke. >> that happened in california 1988. they increased the tax on cigarettes in order to pay for education, and then what happened? people start today smoke less. stuart: right, you didn't pay for the education you want. >> it worked for a finite amount of work and stopped working. is this a way to possibly correct head start or other funded programs so that we can make it better from the beginning? i think so. >> you know, miriam, we used to like you, be in favor of-- now you're coming on here and saying it's okay for the state to grab control of four and three year olds and it's going to introduce a brand new all-em

compassing entitlement program. if we did, it would work because they'll perform so much better in later life. wrong on every count. once you provide this program, you'll never ever take it away. >> it should be, stuart. stuart: it should be? >> we need kids-- >> you think that the state should be taking care of babies. >> we need kids to go to school at an early age and more people continuing and finishing college and therefore make more money and be a productive work force in the long run if we have kids going to school at three and four. >> i can't get a word in edge-wise now. i'm ask the segal network whether they agree. >> they're putting kids in school. stuart: no way. >> and has six kids. stuart: i have six kids. miriam, it was fun. totally wrong, but fun. thanks indeed. the gold report let's get on with it, shall we? are are we this morning?

1651 to be precise, up two bucks, do not call it a budget. it's just another tax and spend plan. my take on the reality of president obama's plan next. ♪ ♪ i'm so broke, so broke right now ♪

>> joe flacco, super bowl mvp signed the biggest contract in super bowl history. is that partly because of the high tax state where he lives? we're talking with flacco's agent at the top of the hour. it seems almost every day we're reporting a negative from obamacare. you won't find that reporting elsewhere, especially on the mainstream networks. why is that? we'll ask bret bozell. don't you wish our president could be straight about the nation's financial trouble. say it clearly, here is the problem, here is what we're going to do about it. instead, we've go the obama budget. here is my take, it's fantasy disguised by spin. the budget plan does not cut our debt. it will continue to pile up mow matter how he treies, the

president cannot say he's cutting the debt when it's going from-- the budget plan does not cut spending, next year 170 billion more than we spent this year. look, i'm trying very hard to avoid using the numbers and fancy jargon to hide the truth. let's be clear. the debt goes up, spending goes up. let's move on to where the president is being clear. he will tax wealthy and successful people a whole lot more. but he's wrong to suggest that the rich can pay the bills that he is running up. i'm going to use another number. forgive me, please, but this tells the story. the top 20% of income earners already pay 94% of federal income taxes and how is that giving us jobs and prosperity? no he. if we tax them more, will jobs and prosperity magically appear? no. there's the obama budget in a nutshell. more debt, more spending, more tax the rich. all right, now, here is my spin.

the obama budget means debt, decline and dependency, reminds me of 1979, this time around, there's no margaret thatcher or ronald reagan on the horizon. what a shame. . friday night, buddy.

you are gonna need a wingman.

and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. stuart: thursday, april 11, this new hour of "varney and company" has this for you. joe flacco's agent, he will pay maryland's high taxes.

the irs says it can read your e-mail. no warrant, no permission. we will dig into that. and the masters begin. the top las vegas bookie will be here. we bring back the millionaire who wants to pay more tax. oh, dear. ♪ stuart: all those stories are coming up for you, but first we're putting personal computers on deathwatch because smart phones and tablets winning the gadget war. windows dat ate really not helpg the pc guys. the research firm says global shipments of pcs dropped a whopping 14% in the first quarter, flat out down 14%. the biggest drop the company has reported since tracking the numbers since 1994.

nicole, how far down are the apc names? nicole: we saw the big move, microsoft on 4.5%, hewlett-packard down 9%, and they are counting together for about 20 negative dow points, these two names alone. stuart: we got it. go with microsoft, are you selling it? charles: i have not done them for a long time. they sat on so much cash for so long and they haven't evolved. it only take the company from the names. cisco has been very impressive. i like their management. other than that, the writing is pretty much, they are cash machines, but they are not growing. stuart: so you would not touch microsoft with a 10-foot pole. great, thanks for being here. we're up 18 points even though

the 5%, 6% drops i microsoft and hewlett-packard are taking 20 points off the dow. we would be up without those two stocks. charles: would have been more impressive. stuart: now to the business of taxes and its effects on the great tax state revolt. both more ravens were back joe flacco signed a contract the highest-paid player in the nfl, but because flacco place in maryland, more than half his salary gets taxed away in federal and state taxes combined. here is the man who negotiated that contract, his agent. you look happy. >> i am good. stuart: why doesn't the man move? he will pay more than half of his income in taxes because he lives in maryland. a high tax state. >> in the nfl you have free

agency rule, his contract had expired but the ravens have the opportunity to franchise tag him, so he wasn't truly a free agent. we were able to negotiate a deal. stuart: if he was a genuine free agent and can go anywhere he would like, would you be tempted by another team to play in a low tax state? >> that is a factor, but not the preeminent factor. you look at it like a coach, the quality of life, our teammates, the wins and losses. stuart: you maybe tell me tax is not a factor in a decision like this? >> wouldn't you like to broadcast from new hampshire and pay nothing which mar? it is a factor, but you cannot base it on that.

charles: from your point of view, you have had to bring it up. >> looked at the contracts after the super bowl. the three contracts we worked with. it was the highest ever. stuart: did not go into negotiations as they want him to play in maryland county had to pay him a whole lot more. >> the leverage was winning the super bowl and holding the trophy, that is the biggest. it is a factor, but if you're getting the deal you think you should be getting, you're okay with that. stuart: tell me what it is like when you're in the negotiations to $120 million. >> in august we wanted to get it done and could not get an agreement. i dealt with a guy down there who is a pro. we agree to disagree at that point and we revisited after the super bowl and at that point

that all along felt he was one of thoneof the best if not the t quarterbacks in the league, you have to look at the market value and that is what you're looking at. not necessarily state income tax. stuart: this question to ask all of our guests, how does joe flacco feel about losing more than half of his income? >> he is not happy about it, but he is happy being the highest paid player. stuart: tony romo takes home more than joe flacco even though his actual pay is less. >> but he is in dallas and those of his opportunity to renegotiate with dallas. we did not have an opportunity to go to a non-tax state. stuart: it was fun having you with us. joe linta. thank you very much for joining us. >> thank you. stuart: speaking of taxes, we have a millionaire who has no

problem paying half of his income in taxes. remember this? stuart: if you think 50% is legit, pa take out your checkbok right now because our government needs it. will you do it? speaker do not believe taxation is a voluntary process. stuart: patriotic millionaire will be back 10:30 5:00 a.m. does he like the new tax plan? we will ask him. and volatility from bitcoin yesterday. worth more than $200 last week. and then the value crashed. lost half of its value in trading yesterday in about six hours. what do you make of this crash in the value of a bitcoin? charles: i am hot at the idea of it, but i haven't done anything with it because this kind of

stuff is scary. the volatility of it has been outrageous. and then there are other things. we still don't know who invented it. it is ironic because some of the pros were also some of the cons. no central bank, but who do we blame, who do we hold accountable? there is no currency. if it is all digital, can somebody go in and manipulate it? it is an interesting brainchild, people around the world who are upset with currency. i have to tell you. stuart: i am not putting my money into it. charles: not yet. stuart: let's get this clear, you're not going to do it. obamacare. we cannot talk about obamacare without playing this. >> we have to pass the bill so you can find out what is in it.

away from the fog of the controversy. stuart: okay. we keep on playing is because nearly every day we find a new negative in obamacare that we should have read before we passed it. mainstream media is not reporting all of these negatives, not at all. the man who keeps an eye on the establishment media to see what they are really up to. i take it they are not reporting obamacare is negatives. >> now, they are not. and i will make an accusation here. they are deliberately censoring news and information from the american people. the heavy, serious accusation and you decide how your listeners and your viewers, you all decide if they are censoring the information. march 22, you have a situation where 33 senate democrats joined with 40 senate republicans to

vote against the 2.3% sales tax on medical devices. that is a huge setback for obamacare. the total network news stories zero. another report comes out that says the health claims in the states are going to rise between 32-80% in health care spending will double, a dramatic reversal for obamacare. news stories zero. march 26, you get a new report that comes out that says the secretary of premium policies are going to go up. a complete contradiction to what the president told the american people when he sold it to them. network news stories zero. april 3, you have another report that comes out that the system of exchanges in this country that were supposed to help small

businesses are being put off for a year because it is a complete train wreck of a system. how many news reports on that? none. april 4, you have a poll that says two out of three democrats now believe obamacare will hurt them or not help them overall. 78% of the american people now believe obamacare is going to hurt them or not help them. no single network news story on any of that. they are censoring information. stuart: no question, you laid out the case and i am buying it, deliberate censorship on information about obamacare. now walk away from your coverage of the media looking at the media, i think obamacare is

unraveling from the inside. i don't think that is too strong of a word to use, i say it is unraveling, it is unworkable and it is going to fail. am i going too far? >> now. we have been saying those who oppose it all along has said it is an unbreakable proposition. from the cost and implementation. now we are going to be practical where you're seeing it and where the proposition can't afford it. the wheels are coming off. stuart: it has got to be a negative for president obama. >> it all depends on the republicans. they're going to make their cause that gave them the house of representatives in 2010 to

the degree leadership adopts this i think it will have huge victories. to the degree they won't, they won't have a victories at all. stuart: i really appreciate you keeping an eye on the other guys for us. that is basically a commercial for us because we are wall-to-wall on it. always a pleasure, thank you for being back with us. appreciate it. to nicole, two winners. a couple of winners for you. the first one is toyota, how big? nicole: let's start off by talking about netflix and goldman sachs getting hot on netflix. excuse me, toyota. stuart: toyota, $112 per share, why? nicole: they are arguing for rural live better seller over ford focus. they are doing some recalls.

the stock a new 52-week high. and year-to-date up over 50%. stuart: how about netflix? new programming deal, right? nicole: right. they're working close with hasbro. it will include the littlest pet shop. and kids judo. they raised their price target of course with the stock trading 170, they are a little late, but they have $184 the new price target. charles: they still have neutral on it as well. toyota, the yen will help them tremendously. stuart: and i was still up despite a big drag from microsoft and hewlett-packard. 14,829. that means we're about 170 points shy of 15,000. get that graphic ready,

everyone. president obama says he doesn't want to raise taxes on the poor, said he wants the rich to pay their fair share. isn't this a tax on the poor? we're looking into it next.

are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. stuart: dare put the personal computer industry on deathwatch? we can and we will. windows 8 is a flop and a 14%

drop in pc shipments the first part of this year. hp, hewlett-packard, microsoft big hits dragging the dow down. taco bell announced it will add taco menu options. checking a range of options, almost a quarter of the combo meals will meet nutritional guidelines set by the government by 2020. good luck with that. the louvre in paris, most visited museum forced to shut its doors yesterday after a walkout over the growing numbers of violent pickpockets. the guard said that the doctors target them and tourists. dennis kneale on the cigarette taxes.

stuart: president obama's tax plan raises the price of cigarettes. dennis kneale is here. $0.94 or pack. how much is intended to raise? is this the first time he has raised the tax fees? speak up with first taxi raced in '09. obama raised it from $0.39 to a dollar, not those of $21.95 overall in four years that is a 400% increase in federal tax on cigarettes. stuart: you maintain this is a tax on the poor. >> it really is.

half of all smokers are less than $25,000 per year. most 30% of all smokers have income below the poverty level. one third of all people in this country $12,000 per year or less are smokers. almost 25% of household income on cigarettes. in the rich households, only 2%. 14% of income spent on tobacco and now with the obama tax increase they will have to spend even more. stuart: they won't spend even more, will they? do they will quit smoking that they did in california, 19,000 smokers found the poor did not quit. the rich and the modesty and come quick. stuart: what do the poor do? speak with a lego kit black market or the indian reservation. stuart: isn't that the point? >> worse than that, we're not using the money to cut the

deficit or fund programs, we are using the money for 33 early in dollars expansion of preschools for four-year-old. taking money from the poor to fund the people who are okay. both of your income earners have jobs. stuart: charles has something to say. charles: a couple of things. the air against of those who oppose the nanny state on us, bloomberg type things. it is amazing president obama can continue to support amongst the blacks and hispanics but his policies have hurt them so badly and this is another example of this. he is doing them a favor because he is trying to get them off in the way he does it, maybe 30%, 35%, the second thing is creating a new entitlement that eventually will not be able to be funded by this so they will have to find new taxes. it is the same thing.

>> 14 senators funded another program, education act for people with disabilities. it keeps going but we are robbing money from the poor to fund programs for the poor and the middle class. another president obama program. stuart: dennis, thank you, we appreciate it. charles has another way of making money. this is actually a follow-up. charles: rite aid. it is having a huge day today. 17%. anybody who followed me that day, they're already taking a lot of money. to turn a profit for the first time last year since 2007. remember they had the gigantic accounting scandal. it was dead for a long time. their first back-to-back

profitable quarters since 2007. they are looking good. this is not the interesting thing people should know. don't panic. a lot of it was from generic drugs, these out their drugs at a cheaper price, but profit margins are larger. i think it can go higher. stuart: another winner. >> another viewers like what they think are cheap stocks. stuart: you could make serious money. facebook and twitter, now your e-mails and your text messages. they can search your e-mails without a warrant. the judge will hate this. he is next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers

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stuart: we keep on climbing a little bit at a time, 34 points higher. come on in, nicole. i heard about this. you're in a basketball competition with the new york stock exchange. nicole: we went out fo to the finals of the handicapped children's fund, the finals in basketball. we went for fun right at the end.

shooting 10-for-10. the two finalists, he actually won the whole thing. duncan comes out, so supportive of the whole group, it is a big deal. i was knocked out, shooting about 50%. a lot of for everybody. duncan himself is a big proponent for the newmark school. if people want to come on april 18. stuart: i don't like he edited the video tape of the two shots you took, you made. >> i am leaving for the wnba, i'm going to go now. stuart: thank you very much, nicole. the tax man is watching you and your e-mails. then it can read your e-mails and text without a warrant because he fourth amendment doesn't protect internet communication. on the internet there is "no

reasonable expectation of privacy." judge napolitano is here. >> the argument is almost laughable because you sent me an e-mail, by revealing the content of the e-mail to me to have no expectation of privacy, you intend no one but i should see it and you still have that expectation of privacy like a letter. stuart: if i send you a letter, there is expectation, my privacy is protected. >> a lot of have suspected this. last night when the aclu released 233 pages the irs released to the aclu in response to the request shows the irs is taking a position for a couple of years that it can read people's e-mails without a search warrant. stuart: have they done it? speakespeaker we don't know it.

only if they prosecute somebody on the basis of the information from the e-mails and had to reveal the e-mails during the prosecution. stuart: they could be reading someone's e-mail and get a hint of illicit activity, check it out but never used that e-mail in the future prosecution. just point them in the right direction by the e-mails. >> this becomes the story of the irs looking at social media which is totally legitimate. if you put yourself with a grass skirt and a crazy hat on the beach on your website and you told the irs it was a business deduction does say we have some evidence the country and contrary and you published that evidence. that is a prudent thing for the iris to do. but to get e-mails from you to your boss or from you to your spouse, they would need a search

warrant to do so. let them tap in. charles: does this apply to traditional mail? would they consider that open? >> according to the documents last night, no. the presumption if you let an e-mail sent in your inbox or anywhere in your computer for 180 days, you don't care if anybody looks at it. how did congress know in 1986 what your presumption would be? stuart: the smart thing would be to put out some fake e-mails to appear incredibly compliant to pay up on every single element. charles>> the government is govd everything such as.

a certain court of appeals sided with the taxpayers saying you can't do this, you need a search warrant. have they followed that? we don't know. we won't know what they have on us unless they choose to use what they have on us in an arena where they must reveal the source. stuart: this is right up your street, this story. >> it is. but we must monitor these things. the public has a right to know what they are doing. stuart: president obama is clear the rich have to pay their fair share of taxes. coming up, a patriotic millionaire who agrees. stuart: if you think 50% is legit, why don't you take out your checkbook, writes the check right now because our government clearly needs it. will you do with? >> do not believe taxation is a voluntary process.

stuart: and now this, a neurosurgeon outspoken obama critic and frequent guest no longer deliver the commencement address at john hopkins. charles, believe he steps down. why? charles: he stepped down after making some controversial comments about gay marriage

recently, in a letter sent commencement is about the students and their success and it is not about me. he said he wanted to make certain it remains so. and he said he didn't want to distract from the celebratory nature of the day. stuart: he was on this program about a week or 10 days ago said he would reduce his public profile because he didn't want to be in the news as much as he had been. charles: without a doubt. somebody should have pulled him back and said to take it a little slower. he is not clinically correct, that is for sure, and it cost him. stuart: remember the patriotic millionaire's, so patriotic they are all for the rich paying higher taxes even though they are millionaires themselves. one of them is back with us. eric stoneberg is with us. i totally disagree with you, you are utterly wrong, but it is good to see you. the president has proposed another round of increases in taxation on rich people.

you approve of this as well? going to pay even more on top of the extra taxation of the rich already being imposed? charles: let's be clear about the context of this, we have a deficit issue we will need to do something to get our financial house in order and buy position all along has been i am not opposed to cut spending, not at all. but we're going to have to have shared sacrifice, the wealthy who have done very well over the last 30 years should be wants to contribute. stuart: already january 1 the income tax rate on wealthy people has gone up. the president proposes to raise taxes on the rich in other ways, capping deductions, etc., etc. extra taxes on the rich. you are prepared to go even further and pay these extra taxes, is that correct? >> that is correct. stuart: when is enough enough? >> he is not suggesting raising marginal rates even further.

something proposed by the republicans. stuart: when is enough enough? charles: that is not an easy answer. the right way to think about it is what government needs to do. providing funding for the government in order to build those functions. for 30 years we have not done that. stuart: if you took every penny of income over $250,000 that any american makes, every last dime they make, you take it as 100% tax rate, you would bring in $1 trillion per year, you would still have a deficit. would that be enough? >> would not be in favor of taking 100%.

stuart: you will not eliminate our deficit, and he will hurt the economy coming already hurt the economy with tax increases on january 1, you have. >> there's no single action that will cause this deficit on the spending side or the revenue side. the fact remains even with the current increases in tax rates, i will not know if i produce my taxes for 2013, but i strongly suspect i will be paying taxes at a rate of about 20%. if that's too much? i don't think that is too much. stuart: this is how you raise revenue and close the deficit gap. you get more economic activity, you get growth, that kille broun more money to the treasury. that is how you do it come you don't raise taxes, you lower tax

rates, that would work. >> i think we agree that the best way of solving the problem is increasing economic growth. the question of what policies are going to increase economic growth. stuart: defense spending money raises economic growth? charles: there are many things that doesn't affect economic growth. stuart: large economic growth over four years of the obama presidency that averaged 2.3%. that is it. that is why we have spent this government money, you want to spend even more and would not even give you the break that you are going to need. >> when republicans complained about the clinton rises in the tax rate and we had tremendous growth. stuart: you just have to go back to 2008, a ton of government money, you're asking for more of the same.

>> part of the driver of this is sequestration. we're cutting spending on things such as research, fundamental research. there is going to be a significant reduction. stuart: we are talking big picture. virtually no growth. first quarter of this year maybe 2% growth, nothing to do with sequester. >> under the bush tax cuts we also had very poor growth rate for the idea lower tax rates lead to higher growth is invalidated by what happened in the last decade. in stuart: last, as if you're willing to pay more in taxes. he said yes. i asked you to write a check, did you bring it with you this time? >> i know you are going to do this, but taxes are not a voluntary system, we do not believe in letting people

voluntarily decide. stuart: i am out of time. go to the break. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

stuart: gas prices are coming down ever so slowly. we're now at 356, about $0.07 down in the past week.

oil at $94 per barrel. rite aid posting profits for the second quarter in a row. filling more prescriptions, generic high profit growth, shares up 17%, 18% now. the housing market, latest read on the mortgages 3.43%, that is down a little from last week. we're keeping a close eye on the dow, a record high yesterday. it would be up even more today if it were not for microsoft and hewlett-packard taking some steam out of it. nevertheless 44 on the dow and the masters, tiger woods tees off in 30 seconds. we're covering the odds in a moment.

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(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. stuart: we talk a lot about the explosion, 9000 people on disability. charles is with us, some angry people who are taking issue with the way we're talking about disability. charles: this is the emotional side of dependency. they have gone crazy. one woman who watches the show since i hate to see this but a whole lot of people getting disability our military like my father-in-law who overtired phone that he can get this because not the other day a guy came in to apply for a job and only wanted part-time because he is on disability and proceeded to tell her, she said you're on

disability, this is a tough job. said i am in great shape, i run 5 miles per day. since i got shot in both legs, but apparently he is fine now. another guy we didn't and said the story is not unique. he had employee who turned down a wage increase because disqualified him for a rent subsidy but another guy says not to start anything, but your father in law, you ought to be thanking him, not criticizing him. it is called an earned benefit. that is why this is so complicated. stuart: a clear case where somebody does not need it but takes it because they are entitled to it. charles: that is essentially what we are talking about. stuart: a moral choice for a lot

of different people. moving onto the masters, tiger just teed off, by the way. golf is a big-money game including gambling. a lot of money is flowing to tiger woods, they are betting on him to win. let's bring in johnny. what are the odds on tiger at the moment? >> he is 3-to-1 as he tees off. tiger was as high as nine or 10. but watching him recently, his swing is right, his attitude is right and he is as good as he has been in a while. stuart: the money is flowing to him, so the odds on him are shortening. you guys lose your shirt if tiger wins? >> i have lost my shirt quite a few times in this game. it is okay. we are willing take a big vat on

anyone. if tiger prevails, yes, we will lose. we will take our chances with the other golfers right now. stuart: what is the odds on rory? >> to have been raised, he was one of the favorites when we first put this up quite a few months ago but he's going to go up to 12-to-1. not a lot of support to him right now. stuart: phil mickelson. >> phil mickelson has been as high as 20-to-1, as low as 10-to-1. he will always be a contender. stuart: i think there's something called the under/over in golf gambling. the number of the final score. the winning score. what is it? speaker you can bet the under over on 65 is the lowest completed round in any 18 holes, or the 276

over/under for the final score. a lot of other difference, will there be a hole-in-one. you can even bet against tiger winning. stuart: tommy, what are the odds for anybody getting a hole-in-one? >> is pretty much a pick 'em. put up $110 to win $100. when you look back at masters history, there have been about five over the last six years or so, so does happen. it is possible. the weather should be decent. stuart: i wish i was in vegas to place bets that because this is interesting. thank you, johnny. how about this, $1 million per day, that is how much one casino could bring in every single day for maryland.

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stuart: the largest casino in maryland opened casino games two table games. jeff flock is there. we just told our audience that casino where you are now will

contribute a million dollars per day to the state. we got that. then i just heard there is a slot taxation rate of 67%. this is incredible. jeff: there are 4000 slot machines. the third largest casino in north america. indeed, $0.67 of every dollar wagered here goes directly to the state. if you go over to the table games, less of a tax rate on the table games. blackjack going here, poker going, roulette, crops, a much lower rate on the table games but they just started yesterday. employ a lot of people with the dealers. stuart: every dollar put into a slot machine, $0.67 of that dollar goes to the state, they are not paying out much in prizes, are they?

jeff: this is the only business in america that is totally rigged and nobody seems to mind. stuart: you will be there all day, we'll look forward to hear the activity from the brand-new casino. thank you, jeff flock. "the highlight reel" is next. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. how old is the oldest person you've known? we gave people a sticker and had them show us.

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>> you have to look at the market value. stuart: i am with you. [ laughter ] stuart: it was good stuff. look at this. we are up 62 points despite huge drops in microsoft and hewlett-packard. charles: all news is good news. this is automatic pilot. there are so many professionals who have missed this. they are in a bind. stuart: they have to be piling and right now. charles: every small dip, they jump in. stuart: thank you. that is it for us. connell, it is yours. connell: thank you very much. i am con