printing. it served its purpose and the market did come back from 120-point loss and did come back a little bit and we'll see today. charles, i want your comments on what i was saying earlier on the program this morning. that full power of the government was used, i think, in my opinion, to scrkew the election. we went across the board. it's not just the irs. the government power was used in favor of president obama's reelection. do you agree with me? do you think that the election was skewed? >> a thousand percent. the president said we've won the war against al qaeda and then you have benghazi happen and if he'd come out it was a pure terrorist attack, orchestrated nothing to do with the movie on the internet. and made a mistake, fibs ambassador kiiled since 1979. and if they came out and said it was a weapon, or someone thought the white house used it as a weapon, can you imagine?

i think the independents would have swung. no doubt about it, a lot of people who buy into the notion that a, they are ate most transparent and b, friendly to everyone and kumbayah and bring america together. i think a lot of people who bought into it are having a second thought and certainly would have had a major impact on the election. stuart: let's carry that forward. if there's now a doubt how that election would have turned out if there had been full knowledge of what was going on in the background, if that had been full knowledge, carry it forward. can the president maintain the political momentum to get his agenda through? i've he been saying constantly that, no, he doesn't have the momentum because some democrats are peeling away. what do you think? >> i agree with you 1,000%. if you saw the anger toward shulman this week from democrats, dyed in the wool, liberal democrats, and with the president, you know, and everyone is still in a the

heat, we're not that far from mid term elections and the white house has to be nervous. stuart: i'm interested to see this, this is the holiday week and the summer start, state fairs, drinking beers, barbecue and the scandals recede into the background and the president gets a breathing space. what happens next week, do you we come back full tilt? >> i think so, if you think something benghazi, the mass media completely, 1,000% ignored, complicit in sweeping it under the rug, if that hasn't gone away, that's sort of like that nagging whatever that will not go away and if that doesn't go away, the irs doesn't go away, the ap story doesn't go away. there are so many scandals, sexual misconduct in the military haven't been talked about. i don't think it goos away completely. stuart: i'm beginning to think i don't want a special prosecutor to be appointed. because if they do, that will stretch on for at least a year and everybody will say, i can't

talk about that because there's a special prosecutor looking at it so you'll have deathly silence on certainly the irs scandal and the president essentially gets a pass. maybe delaying it until after the november 14 election. charles: well. stuart: i'm not a conspiracy theorist. i'm not. a news item for you, it is friday morning. look at this video, part of a bridge collapsed in washington state and sent cars plunging into the very cold water below. this is the main four-lane freeway between seattle and vancouver and links america with canada essentially. two cars, three people into the river and amazingly enough, nobody was killed, but that thoroughfare is all, but destroyed. that's a link taken out. that's a big deal, northwest. flat to lower for the stock market when we open up this friday morning. we also have this for you. and look at that on the other side of your screen, a miss for abercrombie & fitch. maybe that company should start

paking clothes for the average-sized america. charles has a few tips for at that company and that's coming up next. first, a little music in honor of lois lerner's paid holiday. ♪ ♪ it's a long way down to holiday row ♪ ♪

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♪ >> yes, yes, yes, we're having a little fun at the expense of abercrombie & fitch, which had bad earning. he says he only wants thin people wearing his clothes. and go back to that bridge that collapsed in washington state. during the the stimulus, washington state got a chunk of money, 800 million dollars. he they did not use it for infrastructure, they diverted it to high speed rail. now they've got an infrastructure problem. interesting story. we're coming up on the opening bell, about 90 seconds to go until we start trading this friday morning. come in, scott shellady. i'm looking at the futures. i'm looking at a 60 point drop

for the dow roughly. why are we down today? >> i think that weeks are ringing the register and probably going to do that going into the weekend. fundamentally, economically speaking, nothing has changed. we have the 7.9% unemployment rate and the only thank that's going to kill the rally 2% or lower and 48 million people on food stamps how are we going to say we can afford to take away the punch bowl. stuart: you think if we get inflation, this rally is over because the fed will say enough with the money printing, that's your scenario? >> yes, historically speaking that's the number to look at. that's when we see the inflation number start to spike and that's killed bull markets in the past and that's going to shut it down when we get here. stuart: a man who wears a cow jacket on memorial day weekend is going to cook up steak. >> yes, i'd like to say that abercrombie & fitch going back to that, i don't know about charles, but i can't get in the

front door let alone get in their clothing. stuart: i didn't know you were going to say that, but that was very good. hey, you have a good weekend, young manment. >> all righty, you, too. [bell ringing] the opening bell is ringing and we're expecting 60 points on the dow industrials from the get-go. and remember, please, this is the start of a long holiday weekend. there will be some selling. you want to get out before you get caught on a three-day weekend. so, yes, indeed, we're off on the down side. 13, 14 points down in the first 15 seconds worth of business. now, whether you know it or not, you probably own procter & gamble stock. for certain if you're going to a grocery store today, you're buying a p&g product and that's why we're telling you that the company is bringing back the former ceo to, as they say, fix the company. nicole, any impact on the stock? >> let's take a look. >> they like it. >> and the impact of the stocks. how about a 4% gain for procter & gamble, already this year is doing very well.

up about 16%, but it's interesting, when they called, you know, him to come back and he basically said, bob retired, the board called me and i felt like duty called. i'm back to help maintain the business momentum and keep this productivity program going. so, a.g. lafley is returning to run the household goods company that obviously is a worldwide name and you can see the shareholders right now are loving it. >> hey, 4% up for a stock the size and clout of p&g. that's a solid gain indeed. the old guy coming back. >> nicole, thanks indeed. we are down 59 points, all right, a refreshing moment of honesty from the chief executive. did sears chief eddie lambert blame the weather or the economy for the company's weak results? no, he did not. he said they could be doing much better. whoa, i'm choking up on this, 16% down.

so much for honesty from the ceo. charles: he should be honest, but should have taken it a step further and said look, i don't know what the hell i'm doing. stuart: ooh. charles: eddie lambert first accumulates this position on sears. and everybody on wall street is cheering, he's the next warren buffett. and then a real estate play and i remember changing the channel and eddie lambert is the man. they never did anything with the business. and you ever walk in, like going to a russian department store circa 1965. and the only time i walk in i go anywhere else and i need that snow blower. but eddie lambert can't run every business in the world. i know you think you're the master of the universe, you're not, you're not, my man. stuart: when you compare sears, an american icon, with a russian department store. charles: i think it was called gum. stuart: in moscow, it was awful.

the ceo of abercrombie & fitch says he doesn't want fat people wearing his clothes, and after it disappointed maybe want to rethink that strategy. have you got room for another comment. charles: i think i thought his comments were despicable and dumb. one thing, it revealed their sizes are disproportionate. their size 6 is a size 8. they're on the sly trying it to accommodate larger people. stuart: i want to take you to task. despicable because he said i want certain points-- >> a lot of teens are killing themselves about cyber bullying, and the market is mostly young adults and teenagers, to say that we think that fat people are too sloppy to wear our clothes. sell your clothes to slim people and don't put down other people. stuart: what did you have for breakfast. charles: what i have every day.

stuart: layoff the coffee. and joining us now, john layfield and he often joins us and every time he's got the back drop, sun, sand, and a tan. you're in bermuda, that a tax haven? did you see penny there. >> it's not a tax haven, it's at reinsurance capital of the world. multi-billion dollar companies at that reinsure risk in tsunamis in japan to tornados in oklahoma and, in the bahamas more of-- you. stuart: you'veetalked up your real estate, well done. and one of your themes, you're a very successful investor. one of your themes is the shrinking american middle class. can you show me any evidence of that as it relates to company performance or profits? >> oh, absolutely. you look at what's going on, apparently, especially in the

last six years, the poverty has just ballooned and tte rich are getting richer, poor are getting poorer. family dollar came out with great earnings and ralph lauren, great earnings and wal-mart, which is in the middle. people think it's lower middle class, but it's middle class is hurting, they came because of the payroll tax. it's because of the shift in spending in america, that's going, down siding and going back down to family dollar and unfortunately, wal-mart is in the middle. it's a terrific retailer and they will hfigure it out. that's the shift in our economy, rich are getting richer and poor are getting poorer. why is that happening? >> because we don't have any jobs. the lowest labor participation rate since 1979 and when you have this, and the doom and gloom out of washington, whether it's real or imagery, it kills consumer sentiment and so you're

seeing the consumer, which is 70% of the market being squeezed and you're not seeing jobs. and we don't have jobs on the horizon. if we've got an energy plan, or some type of event, we're the not going to have that. look, jobs were in manufacturing. they went to housing when that burst, those are the people unemployed right now and that's the middle class and they're unemployed. >> back to the beach, young man, we'll see you very soon. thank you very much. >> thank you, sir. >> we talk a lot on this program about tesla, the electric car company, okay, because the stock has been on a real tear. i believe it's up 174% this calendar year, since january the 1st. and i want to bring in gil morales, he says he's got an interesting story about tesla. gil morales says that tesla today is the same as general motors back in 1915. i take it you think that tesla is going to just take off? you do? >> well, i think it has huge potential and i think a lot of

people aren't really taking that into account and trying to look at it in fresh ways. everybody is trying to apply the standard sort of value analysis to the stock. i think there's more to it than that. what i like to do when i see a situation like tesla, i look back in history and try to look at other situations in the market and people were fooled and thought a price move was done when it was just getting started and interestingly i found an old chart of general motors in 1915. back then, gm was buick motor company and it started trading arouud 1911 and went side ways for two and a half years. interestingly, tesla went side ways for two and a half years before breaking out recently and doubling. stuart: but you think it's going up from here? you do? >> definitely. definitely. yeah. general motors doubled in 1914 and went from 34 to 80 and then went side ways for about nine months, and-- >> hold on a second it's not just a question of looking at the chart and imputing a big gain.

you've got to look the at the underlying profitability of the company and ability in the marketplace. >> it's a strong position in the the marketplace. they're going to earn 1.07. 92, 93 times forward estimate. that's not out of line for an upand coming company. you can look at ebay trading at 200 times earnings in 1998 when it had a 20-fold move and amazon in 1998 when it had a similar move. i think that tesla can go higher than you think. >> i'm jam packed full and you have ten seconds, charles. >> i like where he's coming from. and elon has more. and also compare it to ford because elon musk is like a new henry ford. stuart: and wall street journal, tesla by the numbers, how taxpayers made an electric car company. charles: by the way, that kind of stuff is not news and then they also, the critics said they've got to do all of these

things. stuart: you're killing me. 7 early movers, sales at the team retailer zumiez. and this one, doing nicely. refreshing honesty from sears, doesn't do any any good. down 17%. abercrombie & fitch, disappointing, maybe let fat people wear their clothes. and robotic surgery company intuitive surgery wins a jury trial in a negligence case and up it goes. more democratic luxury, williams-sono williams-sonoma, no, it's down 3 1/2%. that's a surprise. dow component for you, merck halts development of a parkinson's drug. and see what we've got next,

brian kilmeade. first, take a look at the screen graph. it's an ea college video game. what's wrong with the picture? a hint, it could cost millions or billions of dollars, and brian says he knows something about sports, but nothing about soccer. but first this, president obama delivered a carefully worded speech on drones. it didn't go over as smoothly as plans. listen to this. >> can you tell the muslim people, their lives are as precious as our lives. can you take the drones out of the hands of the cia? can you stop the signature strikes that are killing people on the basis of suspicious activities? will you apologize to the thousands of muslims? (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my accocount follow me online

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one screen shot could cost the game maker a lot of money and the suit says it used the player's likeness in that game, strictly prohibited by the ncaa because they're amateurs, you can't name them in a game unless you pay them. all right, look at this for a second. it's a screen shot from ncaa 2009. you can see the name tebow highlighted, tim tebow's name so pay him? brian kilmeade is here from fox news radio. brian? they've named him, he appears, surely you've got a pay the guy. >> i've been saying this, they walk around campus with tebow on his back in his sophomore year the heisman trophy winner. 's in the fortunate position everyone wants to be with tim tebow, everybody likes tim tebow, he's got marketing deal, but this was his moment and now, they were cashing in on what he was at his best and when he was truly a rock star. he has not had much of a pro

career. stuart, the capitalism, you're fundamentally capitalistic, you've got to pay these people. stuart: they're amateurs, they're in the college system. pay them all, whether they're named or not, if their likeness is there. are you saying pay them all? >> i'm saying to you that the aaa is the highest level of baseballs not in the major and pros and paid little and get to the majors and that's it. for football players, this is aaa and they are getting-- what you call amateurs, because they don't get paid, they're generating billion dollar contracts and multi-million dollar deals for their coaches, and for the stadiums. and for everything else. all the money is pouring in and the only indispensable part of that are the tim tebows of the world and the ed o'bannens. >> you're talking billions of dollars if electronics arts loses.

go. >> they should. you cannot use a guy and not pay for them. that's unamerican. and that's why you defected here years ago and we accepted you with open arms. stuart: yes, you did. kilmeade, that was good. have a great weekend. >> we'll see you. check the big board. we're expecting some selling ahead of a long three-day memorial day weekend, just a little selling, down 45. there you go. what's the price of gold as we head into the three-day weekend? down a little. 1384. time is money, 60 seconds today and what else we're watching for you. look at this, netflix hit the jackpot with the original series "house of cards" and now bringing back arrested development only on netflix. how big will that be? we'll ask. we'll show awe new technology that's used to accurately diagnose post traumatic stress disorder in veterans. scan the brain and matches the

patient with the correct medication, fascinating stuff. gee-whiz, actually. if you live in a state with a democratic governor there's a chance you're paying higher taxes or soon will be. we'll tell you about another state where they're taxing the so-called rich a whole lot more. and then there's this, europe, obviously, in deep recession. record unemployment. government going broke. so what is the eu worrying about? olive oil? no, that's not a joke, it's not funny. we will have an explanation after this. ♪ i want to make things more secure.

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>> oh, those europeans. the european union looked past its sorry economic state and shifted focus to olive oil. europeans want to ban restaurants from serving olive oil in dipping bowls. they want it in nonreusable containers for hygienic purposes. charles, you're full of opinions, what about this. charles: and i think the prime minister is best, he says it's too bizarre for words not at all

green. this is absolutely nuts. stuart: let me get it right. you used to walk into a bar in europe and i've done that many times, there's a bowl of olive oil on the counter and take a piece of bread and dip it and eat it. you can't do that now. what you've got to do now, get your own personal sealed olive oil jar, unseal it and pour it just for you so that it's hygienic. charles: byoo is the new acronym. stuart: bring your own olive oil. charles: i'm against double-dipping, but i don't think that's one of the top ten things they need to worry about. stuart: remember the story about the peanuts? you don't want that right now. and 23 minutes worth of business, a little selling ahead of the three-day weekend. and the mayor of los angeles flat broke, he asks? really? we will plant our flag in california with a surprise story of the day and get a democrat to

respond to our story of the day which is an abuse of government power throughout the bureaucracy. did it tilt the election? it's all coming up next. ♪ to more efficient pick-ups. ♪ wireless isimitless. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moani ] surpse -- your car needs a new tranission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket scienc it's just common sense. from td ameritrade. ...amelia... neil and buzz: for teaching us that you can't create the future...

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netflix ships the world of television again. we have a geewhiz segment for you. scanning the brain. the big-city mayor with the highest income. he spends everybody else's money and all of his also. ♪ ♪ stuart: all right. we are 28 minutes into the trading session. we are still at 15,200. we have been talking about the abuse of power across washington all morning. now we have a democrat here to respond to all of this. we also have monica crowley. she is with us for the entire hour. >> i would be happy to answer

whatever charge you want to levy speech the administration used the power throughout the election campaign to skew the election. the epa did it, withholding of disaster funds, the irs did it, the justice department did it, the election was skewed by this abuse of government power. >> i say that is crazy. stuart: i am saying that there was a tilt. it was not neutral. the conservative vote was suppressed. you can say that. >> i do not know under what circumstances they were suppressed. stuart: if you deny funds to people and conservative groups,

if you did i disaster relief funds to red states, you are suppressing. >> talk to chris christie. stuart: what about the rest of it. >> you are telling me that the tea party was not motivated to come out? stuart: i am saying that there was a patent of intimidation. charles: if these stories are out, i think it would have changed the independent vote. not the conservative vote. if the american public heard that the irs is being used as a weapon by the white house, if america knew that al qaeda was

not as he did and our guard down, you don't think that would have wayed some independent voters? if you look at recent polling after 247 coverage of what is going on, obama's numbers are actually up. despite the fact that there has been focused on this by the media, there is an affect of this president. i think you cannot stand that he won this election fair and square. charles: at the same time say that black people were denied the right to vote. that is what bothers me. if the president brought the nation together, i would be here

with pom-p >> this is a president who on the record said punish your enemies, reward your friends. this is payback timee this kind of targeting of conservatives goes back to 2008. you are telling me that this man now suddenly, we are shocked that there is gambling in casablanca? that perhaps half the government was used by this administration to suppress things to mark. >> what i am shocked about is back in 2004, george bush won reelection and i was not happy about it. stuart: there is evidence.

>> you can manufacture all the evidence you want. stuart: here is the irs, for heavens sake. >> was anyone denied? no. let me explain how this works. you can start a 5o1c4 and the irs can deny you later. stuart: they intimidated the people who created these groups. they demanded all manner of documentation. by the way, the president's own brother was given in three weeks, he got his tax exemption for his foundation. that tax exemption -- >> here we go. you are telling me that carl rove was denied his activity to

spend $400 million? stuart: you are blinded to a patent of behavior. government machinery was used. >> what i am shocked about, and, i think that conservatives need to come to terms with it, for your own sanity, you lost the election. i am sorry. he outwork you guys. you lost. lived with it. >> 1972, president nixon one reelection in a landslide. then watergate happened. >> you can question him, you can question him, but you cannot say that he did not win this

election fair and square. stuart: have a nice weekend. more on the irs story. let me show you a quick clip. a man not afraid to confront big government on the abuse of power. >> you wrote two letters to the irs. >> i talked mainly to minnesota press, but you are in accurate. stuart: we will lay you on more of that a bit later this hour. two nicole petallides, please. sears, the huge loser type. nicole: 18.5%. that is a huge move to the

downside. you hear the ceo talking about this in a conference call. this is not acceptable. the assets should be generating a significant profit. it still maintains a 15% gain this year. they blame the cold weather. we heard this from target. kmart customers, in particular, really felt the payroll tax. they blame that as well. stuart: it is kind of a real estate play. charles: it would be down significantly more if he did not own a giant amount of this

stock. stuart: fix the stores up. dow jones industrials down 88-point this friday morning. thirty-six minutes into the session. i want to go back to the bridge collapse in washington state. there is a financial angle here. hundred million dollars of stimulus money in washington state was diverted to high-speed rail. you can see it right now. a span of a collapse overnight. no fatalities, by the way. $800 billion taken by washington state and diverted to high-speed rail. charles: washington state, that they come up with them, these guys need to spend 5.3 billion on wastewater.

277 bridges, dams that are high hazard. when you get a big chunk of money from the federal government, you take 800 million put it into high-speed rail, you want to scratch your head. stuart: people will say those wicked republicans are denying funds for infrastructure renewal. >> and then you will hear calls for more infrastructure spending. so much was supposed to go to things like this. making sure bridges and roads were okay. guess how much of that original stimulus actually went to infrastructure. 6%. stuart: bring me new stuff please, of the first democrats who says those wicked republicans are denying

infrastructure. now, for the surprise story of the day. reports claiming outgoing los angeles mayor is leaving office with no car, no home, no job. despite making more than $1 million in salary during his term. he is the highest paid mayor in america. $232,000 a year. he is leave office and he has virtually nothing. >> by all accounts, that is an accurate statement. the los angeles taxpayers were funding very lavish lifestyle for the mayor. you had luxury hotels, strips to dubai and china , he had his own personal suv and driver, security detail that was there.

he has nothing to show for it. stuart: the bigger story is the election of the new mayor there. the interesting part about the election if he beats his opponent. it was his opponent that was supported by and supported the unions. it was a non-union guy, a non-union supporter. i think that is significant. >> you are absolutely right, stuart. the fact that wendy's campaign was funded either union interest, but more importantly that our city got some very important endorsements by republicans.

that in combination with some of the union tactics during the campaign really put garcetti over the top. stuart: i think that the turnout was post a record low. >> yes. it has been like that, you know, it was lower for the actual runoff. for the primary, it was almost in single digits. stuart: real fast, did garcetti say anything about tackling the fundamental problem of los angeles, that is union pensions of government workers? did he imagine that at all? >> if he did, it was in code. i did not hear anything about it. there was a lot of talk about

infrastructure and jobs. with all the cities in california with the looming disaster on their hands, that is a big one for the city of los angeles to deal with in the coming years. stuart: good luck, mr. garcetti. thank you very much, sir. can we put up those pictures from that abercrombie and fitch ads. they are remarkably thin and athletic. let's go to abercrombie and fitch. these are ads. the man who runs the company came out and said all i want is ten people wearing my clothes and working in my store. turns out, abercrombie has just terrible earnings. the stock is down. nicole: i am not sure you can show all of those shots on tv. it is one of those do not hate me because i am beautiful ads.

they are running a business and much like aeropostale and american eagle outfitters, abercrombie has come in with a week first quarter. much like sears. much like target. all of these retailers are coming out with numbers that are a lot weaker than most folks had hoped. stuart: i would defend the man's right to define his clientele and who he wants working in his store and who he wants to sell close to. nicole: i completely agree with you. sex sells. if you want to move product -- charles: trying to get more and more and more and more and more and more and more and more customers. more of them are coming down.

it is a dumb business model to this more than half of the people out there that could be potential clients. stuart: would you buy the stock? charles: no. thhir same-store sales are down. that is a huge drop. i wait for it to settle down. >> mabe they will change their approach. charles: in a way, they already have. a size six in their store is really a size eight. stuart: now that is smart. >> that gets to the image making. they have every right to create the kind of image they want. stuart: fans have been waiting sevee long years. this weekend, the wait is over. arrested development returns. you will not be able to get it on traditional tv. it is all about netflix.

we are covering it next. ♪

♪ stuart: i will start with

procter and gamble. a stock that you may own. a company whose product you most certainly by every time you go to the grocery store. the market likes it. stock is up 4%. pandora's first-quarter revenue was up 58% thanks to mobile ad sales. it is up 6%. sears down big today. the companies ceo is not blaming the weather, blaming the economy, he says we could have been doing a lot better job. arrested development. it is still wildly popular. it is coming back with a vengeance on netflix.yo just maybe netflix is realizing the world of television. ♪ no. why? apparently my debit card is. what? i know. don't worry, we have cancelled your old card.

great. thank you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the cloc to help protect your money and financial information. here's your temporary rd. welcome back. how was london? [ female announcer ] wn people talk, great things happen. [ female announcer ] wn people talk, alstions come over to mithis is for real this time. step sev point two one two. rify and lock. command is locked. fi seconds. thre two, one. standing by for capture. the most innovative software on the plet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. welere new york state islo... investing one billion dollars to attract and grow business. where companies like geico are investing

weome to the state wherence. cutting taxes for business... is our business. welcome to the new buffalo. welcome to t new buffalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your business, visit thenewny.com ♪ stuart: arrested development is making its long awaited comeback this weekend. you can only watch it on netflix. all of the 15 new episodes will be released early sunday morning. seems to me like this is a revolution in progress. youngsters do not watch tv, they watch netflix. >> people are watching cable left and right.

stuart: are killing our business >> a lot of people will just get everything through the internet. stuart: netflix is producing and paying for this new series. they are resurrecting it after allhese years. >> it is extremely popular. people are obsessed with the show. they have been calling for this to come up. stuart: how much are they spending? >> it is out there. it is not cheap. these are big stars. >> now they are creating their own content. netflix poured $100 million into creating that series. it has done extremely well. stuart: you can watch it. you can bench. is that the correct expression?

people will do that? >> i do. it is fantastic. >> sunday afternoon, that is all you do. stuart: i have to ask a financial question. $225 a share as of right now for netflix. you like the stock at 225? >> it is very risky. essentially, you are dealing with each show that they release. it may not be the critical hit or social hit that they want it to be. there is no way to know until the show premieres and people start reacting. last quarter they had 3 million new subscribers. stuart: house of cards brrught in 3 million people. eight dollars per month.

your question? charles: last quarter was fantastic. a huge chunk came from that dvd business. there are big question marks about making money on this stuff. it is fantastic. bring all of these new series out. having said that, i think that the stock will go higher. >> it is very volatile. i think what we are looking at here is, look, this is a show that will get a ton of marketing push. people are very excited. stuart: you approve? >> absolutely. stuart: what does the stock mean if i do not have a netflix subscription, borrowing the password of someone who does. >> there is a moral implicatiin there. stuart: morality?

[ laughter ] stuart: you will be back if you are not careful, young man. a nine year old girl calls out a mcdonald's executive saying that they just make people fat. maybe the little girl has a point. we will deal with this 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 to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason now get 200 free trades when you open an account.

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how old is the oldest person you've known? we gave people sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're livingonger, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money u need tonjoy allf ese years. ♪

♪ stuart: check that market, as w said before, some light selling before the long weekend went down 84 points. charles is with us. he has made quite an impact and he will make some money for us with electronic materials. >> back in 1959, the computer chips, but what they said, afte the solar business, it will affect these guys. the stock is hot. fiscal year 14 earnings, three months ago $0.41. for insider buys. the stock is on the cusp of a major breakout. think it would go significantly higher. stuart: you like it when the people who run the company by the company's stock because that's faith in the company.

>> especially when they buy 3 million shares. stuart: is that enough to make the stock moved up? that is a heavy demand for the stock from the inside. >> and inflexion point, pricing power, and they still go well. stuart: you like it. >> i love it. i really do. i like to because i neutral, bu this one i really do. stuart: clause i neutral, you? now, listen to this, please. in 9-year-old girl just happens to be a nutritional activist. grilled in mcdonald's ceo on marketing asked him to stop checking kids into eating his food as a direct quote. what do you make of that? >> i find the use of children t make public policy statements like this really appalling. we found this over ms in b.c., one of the anchors used their child to speak about the

marriage, sort of brought her along on that argument on the air. i have a real problem with that. a bigger issue, mcdonald's is i business to make money. they will put out healthy items some not so wealthy items. if you don't want to eat the mega banks, and donate the mega things to make the salad every now and then. it is all of consumer choice. stuart: of the gammy manipulated . i have three choices. >> nobody holds against your head. >> with the kids argument, and the mothers argument is that kids are being influenced. they're not in a position to make a rational choice themselves. >> kids like hamburgers. that is just a fact. you don't need a clown. you don'ttneed any marketing. kids like hamburgers. they love them. now, i would rather be in that

that business dennis kinney business. >> and who is buying in the the meal from the nine year-old? it is the parents are actually buying the food for their children. stuart: hold that stop -- hold that thought. the mcdonald's menu in japan is the highest menu item ever. 1100 calories. it is called the mega potato. two large orders of fries. a bucket of fries. now, do you approve of that? >> it looks good to me. >> it is about consumer choice. if you don't want to get the bucket of rise get the back of price. stuart: you can share it. i have a large family. i could have bought a bucket of verizon my kids could have shared them. >> it should be up to the

consumer. stuarr: thank you monica. always welcome on this show. as for you, i'm not sure. scanning your brain for the mos effective treatment. and it means help to veterans coming up and just a few minutes . people who work for the government looked different fro the rest of us. they cannot be fired, and this seems to get their paycheck no matter what they do. here is "my take" on the irs official who abetted the targeting of president in the middle of a diplomat to back -- and diplomatic election. gave a huge backdated tax break in the official close still called for a liberal groups. placed on administrative leave with pay. that is, once hundred and $702,000 per year.

she flatly refused to answer questions from her boss. those government workers are kind of different. and then major hassan had the workplace incident at fort hood were 13 soldiers were shot and killed. since that incident he has received two water and $78,000 in salary, and this government worker will keep getting paid unless and until e is convicte of a crime. we live in an era of government more precisely in the era of government worker power, power over all, you know when that power is abuse these workers could pay and benefits. even when the victims struggle to pay their legal bills, even major his sons victims struggle with their medical bills, the paychecks keep on coming. had enough yet of all governmen all the time? ♪

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♪ stuart: this is a real gee whiz story. a company in california is working on a technology that is busily creating a huge on-line brain database. they want to look at how different brains respond to different medications. this could be huge for people,

especially veterans facing posttraumatic stress disorder. cnn's response created this technology. welcome. >> i want to make sure i have this right. database to my brain scans. people who have been successfully treated. so i come to you. you scan my brain, and then you match my scan up to the brain scan where successful treatment has been delivered so that you can deliver successful treatmen to me. you try to get a match. >> you caught it perfectly. we start with known out comes t my good or bad outcomes and the mark back to some measure of physiology. the thing that lowe's people way , what they see women get to their doctor, they prescribe something based upon their brain . psychiatry, they ask you questions. they never do a blood test will bones can are x-ray. this is the first test. stuart: so it is a tool use and

psychiatry. that is what this for. >> yes,. stuart: 80 uses the expression, but can you give me a success rate? >> 70-85% of the folks who uses it to a better outcome versus less than 30% in standard treatment usually. stuart: it's kind of -- the sec had just as that which treatmen to give me. it is kind of touch and go. >> trial and error. the definition of the dominant player. stuart: but this, you say, give you, the doctor, theychiatrists standard of what has worked in the past. >> resting eyes closed easy. you take all those good lines o four frequencies. it's been around since 1929. we took objective data from tha and correlated in mcleod with these known outcomes, and that allows us to be able to scale i and to ease in a battlefield. you can do it.

stuart: you can do it like that? like that you can do it? it all starts out in a cloud. >> at walter reed right now wha doctors can order their report and it at all either their ipad. stuart: you want to get inside my head, skinny. what can you tell about me? >> is actually not diagnostic mss that it will tell us what you have. what it does is tells you what the response to. think of it like an antibiotic test. cahuenga your brain. we'll defer physiologically. that's what it tells you. people who bought the book you just bought also like this and this one. this brain response to this. stuart: i am in the machine for 20 minutes. the u.s. me questions? now that? >> no.

we look for resting, eyes closed . the biggest problem is keeping you awake. stuart: amount of time and i could go on for awhile. the name of the company again. >> pms response. our website is cns response dot com. stuart: thank you very much for joining is. >> mental health treatment for soldiers. a story you heard here first. it requesting, requesting that the irs investigate conservativ groups. at the same senators are grilling the irs for doing what the senators asked. as always, we're not backing down from this story. more on this next. >> you think you should be at the irs with a stable considering you cost the agency?

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♪ stuart: gas prices rose just a little. the national average went down as much as 365. take the price of oil. where is-going? down a bit. $93.

talking a lot about abercrombie and fitch. the company's chief might want to reconsider. profits very disappointing, down . aero post dial, down big this mooning. the company lost money after heavily discounting products. down nearly 9%. take a look at the big board. memorial day weekend coming off of session lows. light selling. see what senators did when confronted with the it irs scandal. you can watch it next.

stuart: a new high for pandora, the radio service. how high is the new high? >> reporter: it is high. $19.37 per share coming off of the high. he can see that analysts are jumping. it of florida have%. what is interesting talk couple of things. obviously higher revenue. mobil advertising to my very good news. new subscribers can also good news. we talked about, that 40-hour cap, 40 hours and many pay an additional fee. a producer here at the new york stock exchange who ran into tha issue. $0.99. they're willing to fork it over. that is what happens. so far so good.

stuart: wire you wearing a jacket? >> is always freezing. i just had my whole life and heavenly delight. i am present. stuart: how much did you pay fo that? >> i don't even know. stuart: as you do. >> i don't know. caught a chance and find out. going to make some money. what is this about intuitive surgical. stuart: i've seen it go straigh up for a few years. >> a great day today. the shorts have attacked this thing and they have had help. they have been all over the media. i don't know. anyway, intuitive surgical. i read about this in my book, b the way. stuart: your book? >> it has been out for a while. not invasive surgery.

reno is phenomenal. speak to any surge in the world about this machine and they lov it. now they're trying to hint that the machine creates problems, has got to have caused death. a jury verdict that said they could find that to be true. still some legal risk, but in the sttck is undervalued dramatically. a seven to $800 stock. if they keep winning these verdicts the stock will take up a time. stuart: you have had several suggestions to date. you realize will follow up next week. >> that is bold and a market top . we had a trade. stuart: you feel secure. >> i'm with monica. are you kidding me? stuart: frequent guest confronting two senators about the irs scandal. did those senators and fact urg the irs to go out there and target conservatives? that is what he wanted to know. the senators were quick to run away from the question. one of them bump into one of th

staffers trying to get away. watch this. >> nothing, senator? you did write to letters to the irs asking them. you ask them. you wanted to go. stuart: i believe he was accurate that the senators had written letters. check out these concerns do groups coming in particular the tea party. they did say that before and during the campaign. >> over ten democratic senators were riding multiple letters trying to get the arrow select into conservative groups. and so you cannot say it is any kind of mystery. the irs was doing what these

democratic senators were not just requesting but demanding. and it west wing groups have been using that tax exempt status for decades. once the conservatives, the right dad had to it and wanted to get started and actually had started an impact in terms of the 2010 election in going for it, that is and the lf said, yo have to take a look at that. don't look at our groups, but take a look at the conservatives . stuart: say, irs, were you up to ? they're wanted them. >> this is hypocrisy. they had it in writing multiple grant to a multiple times. >> they want to be judge, jury, and executioner. stuart: the dow is down 69 points. pretty stable, light selling before the memorial day weekend. what defines a person as rich?

making a million dollars per year, half a million? well, democrats in minnesota, i is much, much less. how much less? we will tell you. are you still sleeping? just wanted to che and make sure that we were onchedule. the first technology of its kind... mom and dad, i have great news. is nowroviding answers families need. siemens. answers. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from theest experiences below...

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♪ stuart: if you make $150,000 pe year or more live in minnesota,

your rich. the state's democrats passed a bill that at the new tax bracke to individuals making over 150,000. the extra money will be used to fund the government, perhaps. this tax rate, it is just under 10 percent. >> staggering text. stuart: it's a lot. %-up.e philosophy can be summed barack obama once said as some point you have made enough money . that is how they feel, and according to the left they will decide when. the state of minnesota, 100 of its 2000 per individual means you have made no money and now we can confiscate anything abov that. the problem is, it affects the high net worth individuals to create jobs and small businesse in these states which is why yo see red states with no state income tax like florida and texas booming. deep blues states -- >> the real problem, it goes beyond the job creators. i want people.

if you pick up the storage and you will pay. we will go in front of the mansion and say, give us some money and you keep moving aroun and sooner or later you will be in front of your own house. a hundred and 50,000 is not rich . stuart: democratic controlled states raised taxes and don't d well financially. republican controlled states cu taxes or abolish seven there bombing. that is the moral of the story. stuart: get government out of the way and let -- stuart: we have the outrage highlight reel from the entire week next. i'm so glad you called. thank you. we're not in london, are we? no. why? apparently my debit card is. says you. in addition to us monitoring your accounts for unusual activity, you could also set up free account alerts. okay. [ female announcer ] at wells fargo we're working around the clock to help protect your money and financial information. here's your temporary card. welcome back. how was london? [ female announcer ] when people talk,

great things happen. welwhere new york state is... wheinvesting one billion dollars to attract and grow business. whe companies like geico are investing in technology & finance. welcome to the state wre cutting taxes for business... welcome to t new buffalo. welcome to the n buffalo. welcome to the new buffalo. new york state ithrowing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your siness, visit thenewny.com

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one tng that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ stuart: it has been quite a wee of outrage here on "varney & co.", and we have been followin it all. here are your highlight reels for the week. >> i know that some people listen. >> you don'' get to tell your side of the story and then not be subjected to cross-examination. that is not the way it works. >> investigated the case but sa

was investigated beyond even know who investigated. i'm puzzled by that. >> i'm sorry. one be able to answer. >> is this still america? is this government so drunk on power? >> it is not my area. i don't know. >> i don't know the details. >> i'm not familiar with that letter. >> i don't believe that i was aware at the time. >> and a bully of was aware of this. >> and disappointed. i'm hearing had not no, no remember, no recall of, i don't believe. >> will of the biggest function of this amendment is to protect innocent individuals to and tha is the protection i'm invoking today. >> this is not some sideshow designed to distract from the president's agenda. administration are not attempting to distract us from getting to the bottom of this. >> activity could you have not misled the committee? >> there was a question that began this discussion in a question out there. you get like it all. >> i don't know whether we knew

that time or not. >> was responsible for its? how far did this go? how quickly can we cut it out? >> of this committee is prevented by obstruction or by refusal to answer, the question that we need to get to the bottom of this will leave us no alternative but task for the appointment of a special prosecutor. stuart: let's go around the table. favorite outrage moment. i will start. is this still america? >> watching these pompous as is and lying pliers not answer a single question, not the answer to the american people for what could be serious crimes, that i my outrage. >> hold up. you gave up that right. you're not going to make a statement amok kuwait. stuart: more of this. thanks, everybody. it's yours. dagen: thank you.

and the we get to that at the w get to that of the week after that. i'm dagen mcdowell. she will go. now she gets that sit at home and get paid by you, the american taxpayer. how many people really pushing for this targeting. targeting our nation's energy providers. passengers aboard this british airways flights have this care of a lifetime. filling up the holiday weekend, not any cheaper than it was a year ago. americans would still rather drive and flight. he blames them? those stories and so much more coming up on markets now. ♪ the top of the hour. stocks now and every 15 minutes. nicole petallides at the new york stock exchange with a market that has the list from