♪ ♪ >> do you trust your government? for many, the answer is no, and that adds up to a pile of trouble for the obama agenda. good morning, everyone. it broke wide open over the weekend. a contractor for the super secret nsa told the world, our government has been watching

everything. result? new calls for the house and the senate to repeal obamacare because the new law collects your health data. a class action suit proposed by senator rand paul to stop the snooping. silicon valley in defense mode 1 and a gallup poll, trust in the administration down sharply. that is the ever expanding scandal story. now to the markets, it's the continuing surge for stocks, that's the sorry thetory there. we're starting monday where we left off friday. the dow will go up. "varney & company" is about to begin. surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need wiout any surprise fees. ♪ it's not rocket science. it's just common sense.

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>> it's getting to the point you don't have to have done anything wrong, you have to eventualll fall under suspicion by somebody, even a wrong call and use the system to go back in time and scrutinize every decision you've ever made, every friend you've ever discussed something with and attack you on that basis. stuart: well, that is the man you will be hearing a lot about

over the next days and weeks to come, edward snowden, he is the guy, he leaked details about classified surveillance programs and he says he's got no apologies. and he worked for a contractor. and he's currently in hong kong, the justice department is considering espionage charges. here is the question, why did snowden do it? he explains it. >> i'm just another guy who sits there day-to-day watching what's happening and goes, this is something that's know the our place to decide. the public needs to decide whether these programs and policies are right or wrong. stuart: this is a very big story. will it affect the president's political standing and his agenda? eric bolling, former cia officer, mike baker, judge napolitano waiting to weigh in on this program today. now to the irs scandal. and republicans are targeting obamacare and the push to

repeal. if the irs can't be administering tax law, how can they look at obamacare. >> and we have senator mike lee from utah, the president is giving more power to the of department. and scandals aside. let's move away from that for a second. the market, you're going to like this. it's going to open higher and we're following from the get-go, get your 401(k)'s ready everybody, because you will like what you see. plus, apple, going to make some news, they say, but is it old news? we asked the question, is apple a leader in innovation or is that image of it dead? vo: traveling you definitely end up meeting a lot more people but

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♪ >> that's irresistible music. the see-through yoga pants, and why do you think that lululemon is up so much? we're on it in a second. and a minute from the opening bell or less. here is scott shellady from chicago. lay it out for us, we're going up at the opening bell today. >> well, we've got decent

numbers, retail sales and industrials, we're going to see how well the market is doing and the market is going to be waiting on tenterhooks and until we have unemployment below 7% and inflation higher than 2 they'll continue to print and i think the market will gravitate higher. stuart: that's what our viewers want and will bring this week. scott, thanks indeed. that opening bell is ringing and it's going up. the dow jones industrial average is going up and we're looking at the futures suggesting a gain of 60, maybe 70 points, and that will take the dow back to 15-3 and within distance of an all time high. and we're starting with individual stocks and start with mcdonald's, sales up nice and solid in the u.s. and europe. nicole, is mcdonald's at $100 a share this monday morning? >> moments ago it was at 100 a share and pulling back and let's

see where it is right now. 99.77. and the global sales numbers, obviously, this is the world's largest fast food chain and they beat the street globally. versus the estimates of 1.9%, they saw strength in the u.s. they beat. in europe, they beat. in asia, they missed, but not because of japan, in japan they beat. it was china where they had the situation with poultry and avian flu, that's where the weak link was. they've been marketing, dollar menu and delight, up your alley, stuart varney and this is j we're seeing mcdonald's. >> my fault would be that mcdonald's is a dow stock and that's going to help the market bound nicely higher at the open. we're up 50 points already. and nicole, thanks indeed. we're talking about apple and where it may be losing its cool. however, the company's expected

to unveil today i-radio. what is that? how much does it cost? we'll ask clayton morris those questions in the next hour and right now apple is up $2 at 443. and google reportedly close to buying the traffic app waze, that's w-a-z-e. and the talks have been going on. to nicole's favorite stock, next to starbucks, that is, lulule n lululemon, remember the see-through pants? shares are up after that announcement and they're coming out with the earnings after the bell today. i think that's a day trader stock. i can't believe anybody else is interested except up and down people for day trading. what do you say? >> it's true. no, i don't think that nobody else is interested. there are people who believe in the products and the fact that they've gotten the products back on the shelf after three months of the see-through pants.

you're right, i'm not a fan of sheer pants, i'll skip that, but they've restocked the shelves. the question is whether or not the line is too expensive, uninspiring, some of the analysts say. but for the lululemon advocates, the people who love the yoga outfits that they sell, they love them and they will he' buy them again and again and again for $100 a pair. stuart: i asked our 21-year-old intern this morning, have you ever been inside a lululemon store? no she said. and why i asked. because yoga pants are too expensive. how is that? >> listen, i have one thing to say, i agree they're very costly, but you have to factor it over time. they wash well. they wear well. you wear them again and again, so, okay, it's $100 and as you wear them. it only ends up being pennies. stuart: okay. i understand. and i'm walking right away. no, i can't walk away from this. i'm going to ask gil morales about lululemon the stock.

and he runs a company, the virtues selfish investing. and what does the question make of lululemon and how much attention the thing gets. >> you described lulu as a day trader stock, but it acts fairly stable. if you look at the chart of the stock, it's been moving side ways and the last two, three weeks, it's moved to new highs. you've got a stock trying to break out of a nine-month consolidation and earnings. the expectations are low and they're looking for a hard number of 30 cents a share, today after the close. i think if the company comes out ahead of that and i would expect them to do that, and i think the stock is going higher. you've seen the retail apparel groove look good here. >> i think we've given you enough time for lululemon. what is the stock of the week, come friday afternoon the end of this week, i'm going to look

back over the week and say which is the stock of the week? >> oh. well, i tell you what i'm looking at today as a potential trade for the week, it's linked in. the stock got nailed off the 200 level when they came out with earnings last month and it's undercut the april lows at 165 and creates a situation where a lot of people get shaken out of the stock and move above 170. i think you have a trade from here to 180. the company's got some shortfalls in revenues in the near term because of expanding their business and marketing solutions and data centers with their building, but longer term the stock is viable and i would look for it to trade up to 180 this week, that's what i'm trying to play. stuart: that's what you're trying to play. we'll have you back next monday and look back over the see and see if you've got it right. thank you, gil morales. tesla is a stock we've followed closely. opening below $100 a share after a bad report in barron's saying

it needs cheaper batteries. that's enough to take it right at 100, down a buck 90 as of this monday morning. i've got a new gallup poll and it shows that 58% disapprove of the obama administration's handling of the irs scandal and more than 75% say they consider the scandal to be, quote, serious. joining us now is greg walden from the national earlier congressional. welcome to the program. >> good to be with you. >> your platform had this going into election year 2014, seemed to be repeal obamacare because these scandals show that the government cannot be trusted with your personal medical records. >> that's part of it. you're not going to get to keep the insurance that you have. and the irs is the behind that all. i think when americans figure that out. they will be upset and the notion that this should be swept under the rug as one of my

colleagues on the democratic side said. we should be done with the irs investigations is absurd. >> you can't get it repealed. 37 votes in the house, please, repeal it. a vote from mike lee in the senate says, yes, please repeal it, but it's not going to happen, is it? you've got to wait until after the 2014 elections to do anything about this. >> and probably likely the 2016 election because the president would veto any repeal 'cause it's his health care law that he firmly embraces that i think is tragically-- >> you will be seen as running on chaos. we are going to have chaos as obamacare comes into implementation. can you be seen to be running on such a negative platform? >> no, i don't think we will be. the point is we have come up with alternatives and we have different plans on how you could deliver health care in an affordable way that's patient centered and directed. what mid term elections like this become is a referendum on the party in power, the party in power is barack obama's party

and it's his program and that's what voters will, as your poll indicate, indicate, are you for what's going on in washington or do you want-- >> is this your lead item, obamacare? this is your lead story. >> jobs is really the lead item for americans, but watch the scandals evolve and you know, they're more for lululemon, they want transparency here, we want to know what's going on in the the marketplace and what the government is up to. it seems like the government is up to too much in our personal life, too much government decision making, too much snooping, too much involvement. stuart: and i want to refer to something. congressman elijah cummings on the house oversight committee, he said over the weekend, he says, look, it stops in cincinnati. you know, it doesn't go any further that that. end of story. that's what he's saying. do you reject that? >> i do and i think though we have to continue the investigations to find out where

it stops. i understand why he would say that. they want this to end. they want the story to go away. this story never would have occurred if the republicans weren't the last line of defense in washington that actually began the oversight hearings. i doubt they would have started under democratic control and those where having us in power in the house brings americans one opportunity at least, for a check and balance an and oversight on the government. as we've seen, whether it's benghazi, whether it's irs and the other news that's out there. there are things going on in this government that just are untoward. stuart: last one real fast, do you think that you can take the senate? >> i think there's an opportunity to take the senate, i really do. stuart: flat-out prediction. >> i'm focused on the house, that's my job. i think they have a chance to take the senate. stuart: thank you. what have we got now? the dow jones average up only 24 points, that's all we've got at the moment. we're expecting a gain of 50 or 70 points.

we've got 22, and other stock that we're covering for you. the scandals weighing down president obama's agenda, we have a top democrat who is going to say the president's agenda is flat-out dead in the water. he's a democrat and he joins us top of the hour. check the big board again. we're now just up 18 points, the this rally is running out of steam as we speak. 15,267 is where we are. now, here is 30 seconds worth of the other stories that we've got for you today. once obamacare is fully implemented, your medical records will be on-line, are you okay with that? is dr. marc siegel okay with that? he's a doctor. we'll ask him. former cia officer, how did he get this information. and texas going after new york businesses, we'll show you the ads to entice jobs to the lonestar state.

check the price of oil, where are we? $95 a barrel. senator rand paul wants millions of americans to join a class action suit to bring it to the supreme court. i say if the government wants to read my e-mails to protect me against terrorists, that's okay. but for nothing else. what does eric bolling say? find out next. clnts are always learning more to make their ney do more. (ann) to help me plan my next move i take scottrade's free, inranch seminars... plus, their live webinars. i use daily market comommentaryo improve my strategy. and my local scottrade oice guides my learning evy st of e way. because they know i don't trade like everybody. i'm with scottrade.

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>> i'm going to be asking all the internet providers and all of the phone companies, ask your customers to join me in a class action lawsuit. if we get 10 million americans saying we don't want our phone records looked at maybe somebody will wake up and say things will

change in washington. stuart: senator rand paul has a class action in washington and looking for 10 million signatures. eric bolling is here. >> he'll get one from me. my wife has verizon. stuart: i've got verizon, too. >> you're not going to sign it, are you? >> hold on a second. you know what's coming. i think it's okay for the government to go after information about a lot of of people if it's the pursuit of terrorists. i will give up that degree of privacy to protect myself against terrorists. voluntarily i'll do it. but i think this government has gone way too far collected far too much, gone overboard and you say what? >> i agree, but that's not what you said a minute ago in the break, stuart. now all of a sudden, it's they've gone too far. of course it's government overreach. you probably listened to rand paul, he's right. the patriotic act says if i have a suspicion about someone, a person, a group, a terrorist or

something something wrong, you can surveil them and listen to what they're doing and pull the phone records and find out who t they're e-mail. it was originally international correspondent, e-mail. they've changed it and a lot more leeway. the problem what the obama administration has done with the nsa, everybody, we want all the data come in and we'll figure out what's right and wrong. and that becomes the overreach. i don't think that mr. snowden it the right thing. i think he broke the law, did things the wrong way. he could have contacted congress, stayed in the the united states and stood up and said i don't think this is right and maybe got the law changed. what he did though, i think, is wrong. stuart: okay. and carry this forward. i'm getting a definite big brother feeling. what are they reading? what's going on here? i think that will have an impact on the obama agenda, specifically obamacare, because they're collecting all of this

health information and i don't trust the government with that information in light of those exposure. >> agreed. are you okay with what they did or not okay with what they did. stuart: i'm not okay with what they did. they went far too far, but the point is they've lost my trust. there are some governments-- >> let's put it this way. so you said terrorism. stuart: yeah. >> would you be okay with them surveilling all muslims? >> no. >> okay. would you be okay with them surveilling certain mosques? >> here is what i'm okay with. >> it's a slippery slope. either you're okay with them surveilling or you're not. and the point-- >> aim court order. >> they had a court order and had a court order for this. stuart: what i'm fine with, riss in yemen call somebody in the united states. >> you and i are on the same page on that one. stuart: then i want to know this number in the united states, who else called that number? >> that's fine. stuart: i want to spread that net out there and-- >> because they've pinpointed who they're going after. what the nsa did, they said now

what? i'm not sure who we're going after and take the whole 3 million calls in and data mine and see if we can find something and that's the slippery slope where you go from. yes, you want it for terrorism and keep safety, but you've violated 100% the american-- >> how would you draw the line? >> i think you draw the line where you have to-- when you go to the court you say specifically, this is what we're looking for. the west side of manhattan we think that someone is on the west side of manhattan maybe you have a case to say i'll take some people in and maybe we extend the veil of surveillance over people who may not be specifically targeted, yet, they will be. the data will be mined, but you have to be more specific. you can't say we're going to take all phone calls from everybody. >> i've got to leave this with where the agenda stand. i think that the agenda gets hurt because of this big brother theme. >> another week, another scandal. another week, another scandal. stuart: eric, welcome back to a

new week. >> i wonder what this week will be. stuart: don't ask, no clue. the dow turned negative and now it's up 5 points and gold is down 4 bucks. not much movement in gold this monday morning. could it be paul krugman not only watches "varney & company" and agrees with it finally? the uberleftist nobel prize winning economist, is it just too good to be true? yes, there is a catch and charles payne is here to discuss it in a moment. it's monday.

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>> left-leaning economist paul krugman says let's not be satisfied with the new normal. he's not happy with the jobs report or the rate of economic growth. charles payne, come in, could it be that he watches "varney & company"? >> i think we've seen proof he watches in the past. more of what we say on the show, he wants to different course of action. he calls the federal reserve the

good guys and wondering why ben bernanke is talking about tapering when there's no inflation and jobs aren't where we need to be. and something more to this, he took a shot at david stockman and the monetary fiscal hawks. saying they were wrong about run away inflation and worrying about asset bubbles. so it's the typical krugman stuff, but he's obviously extraordinarily frustrated. >> he wants to spend more and print more. >> and this line i thought was great. i don't think i've ever seen something like the sudden collapse of the policy doctrine. what the heck is he talking about? >> he's talking about cutting spending and not talking about cutting spending. austerity is cutting spending. charles: and raising taxes. stuart: all right, charles, next, a suspect who says that president obama's agenda is dead in the water. that's brand new at 10:00 this morning. and plus, parade of the geeks in

california waiting objen anythi new from apple. >> will it look like this? >> we're allowed to have girls in our dorm room? >> not girls, women. we're college men now. >> it's going to be a great year.

>> a brand new week and we start our second hour with this. a democrat who says the white house is in crisis and the president's agenda is at risk. an ex-cia guy, how does he feel

about a private contractor knowing and revealing everything about the super secret nsa? clayton morris on i-radio, what is it and who pays? and dr. marc siegel on obamacare's data collectioo? call it the big brother hour. here we go. ♪ let's get right to it, shall we? the start of president obama's second term brought a scandal upon scandal from the irs, to the doj. now, nsa, alphabet soup. not to mention the elephant in the room, obamacare. here is comes. with everything hanging over his head. is the president's agenda doa? doug schoen is with us, doug, you say this agenda, dead on arrival, really? >> well, stuart, given the partisan wrangling in washington

anyway, when you add irs to doj, to benghazi, you add this extraordinary overreaching by the government. how do you get immigration reform through? a balanced budget? compromise on gun safety? stuart, i think the administration's agenda is just dead in the water. stuart: okay, what about obamacare? it's supposee to be implemented starting very, very soon. it couldn't be reversed, could it? >> well, i don't think it can be reversed, but it could well be put on hold for a while. i mean, i think we areelooking now, reports have suggested that younger healthier people are going to see much higher premiums than reports have suggested. the insurance exchanges, stuart, are not moving as quickly and as effectively as the government said they would. so, bottom line, as the legislation gets less and less popular in the polls, i think the president would do well to

pause and try and reload. stuart: well, how many democrats are rallying around the flag? how many are circling the wagons around president obama and giving him the full political support that he needs? >> well, i think we're beginning to see defections. it's getting tougher and tougher to defend the president. as you heard elijah cummings yesterday, he said the best way to deal with the irs was release a few more e-mails and consider the matter closed. i don't think that's going to fly, stuart and i don't think most democrats are going to give full-throated defense to the president, especially in light of this most resent set of revelations in the prior three scandals. stuart: could this back fire on the republicans who could be seen again as the party of no, the party that wants chaos in the health care system, the party that's stopping anything from going through for the second term president who won the last election? >> well, i think that that's possible. the republicans have yet,

stuart, to agenda -- to develop and articulate a positive agenda going forward. i think they need one. they just can't, as you suggest quite rightly, oppose everything the president does stridently and expect the american people will rally to them. >> how important is the latest nsa revelation? >> i think it's hugely important. i think the american people from the rasmussen polling i've seen, are blanching at the collection of every phone record, internet snooping and the like and i think the president is breath taking in his hypocrisy. he had opposed warrantless wire taps under president bush and now we see the breadth and scope is arguably bigger than it was in 2004 and 2008. stuart: so the agenda not exactly dead water, but stalled? >> stalled and headed in the wrong direction. stuart: doug schoen, still a

democrat. >> absolutely, thank you, stuart. stuart: the big board, the dow now down 26 points and it opened with a 50 point gain. what's with this reversal, charles, any idea? >> we had a huge day on friday and i think the market's side ways and trying to gdigest this and where the next catalyst is from. even people bullish on the market would like to see a strong catalyst or a pullback. stuart: so it doesn't just want to go up? >> no, occasionally wants to digest the gains and shake out the weaker sisters. it's an old saying, i can't just make it up. stuart: i'm glad to here that. weary want to talk about facebook. and what's going on, nicole. nicole: the shareholders of cheering. you look at the stock up 4% and they don't care why, right? today the reason you're seeing it to the upside is because

steeple nicholas with a $29 price target and if the shares bottomed, and believe they may have bottomed. they're near a-- and turning it around. stuart: i would be enthusiastic about facebook at 24 as long as i didn't buy it at 38 [laughter] >> good point. >> charles is laughing. stuart: is apple the great innovator. the company's worldwide developer conference starts today. the big news from there is, i-radio. clayton morris joins us from san francisco and he's at the conference. i hear that i-radio is it coming and i don't know what it is, do you want to tell us? >> well, again, no one knows anything until we see tim cook walk out on stage and unveil it in a few short hours on san francisco. my sources are telling me we will see it today and we will see it unveiled and it will be

some sort of streaming music service. if you subscribe to itunes match, my sources are telling me you'll get it free. it will be a free music service, no ads if you're an itunes match subscriber, which is like 20 bucks, $24 a year he. what i don't know if you're not paying for itune match will you see ads plastered all over and listen to unlimited music. stuart: we're looking from here and i can see people filing into the conference behind you. it looks like the parade of the geeks. and i've barely seen a single female there so far. >> these are my people. there might be a woman or two, we haven't been able to locate one, quite a few women developers here by the way, but these are the people, the developers, thousands of people that have lined up around the block. >> we just saw one. >> there's a girl. >> there she is. there you go. >> going to talk to her. these are all the guys that build the software for the devices, the apple devices and the guys that build the apps

right here going on right now. stuart: why are some of them wearing the number 13 on their backs? >> well, it's 2013, every year they give up, you're a developer and pay $1,000 a ticket. sold out in 90 seconds to fly in here. they get a bag, a jacket, something like that, so the 13 on their back is a jacket this year. last year it had a different logo. a lot of the major changes. stuart: that's a fashion station for you geeks in 2013. last one, i-radio, it's not that new, not that innovative, is it? >> no, no, but here is the the thing, why would apple want to concede the ground to somebody else? right? if you've got itunes, the world's largest music store, why would you give up a streaming service to pandora or google or make your users go someplace else that should be built into itunes already. it's not new, it's not perhaps terribly innovative. why give up the ground, right?

>> and by the way, pandora's stock is down 3 1/2% because of what's likely to go on with apple. go attend the geek show and have a good time and report what you see. >> i'll have a blast. these are my people, stuart. >> your peeps. stuart: back to nicole, tesla, well, it opened below $100 a share and we followed this closely. >> listen, if those are his people, these are my people. these wall street guys, they're a little nuts sometimes, but a lot of fun. all right, let's take a look here, tesla motors down about 2%. and at the 100 mark. this was a $25 stock last summer, but this weekend, barons wrote that tesla needs stronger, cheaper batteries in order to continue with what they're doing. obviously, they're thinking that these are too expensive and the stock has run up and that the stock could pull back up to 50%.

>> yeah, yeah, we heard that and this is a day trader stock very much. so, charles, you still like tesla? >> this article on barons is one of these, yeah, the batteries do have to get better and they obviously have to start going better fundamentally and people should know that amazon 95. and it's a company it's too early to write off. in other words, to think that this is only up because of a short squeeze and to underestimate what kind of a buzz they've created. the garden state mall, i went there four months ago, five months ago, they set up a shop there. like apple two years ago, they're on track. i think a lot of people who try to short the stock, 37% short position. >> if you're a regular viewer of this program, would you buy it? >> what i don't like some of the viewers send me an e-mail when it's down 3%. if you can handle a stock possibly down 10% tomorrow, but

down the road $200 a share, you could be a buyer, your psychological profile. stuart: a very important point indeed. once obamacare is fully up and running, your medical records will be on-line. are you okay with that? now that we know what the nsa is doing with your e-mail records, reading them at will, dr. marc siegel has a question, are you okay with the governments having your health records on-line? are you. ♪ change makes people nervous. but i see a world bursting with opportunity, with ideas, with ambition. i'm thinking about china brazil, india.

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>> mcdonald's says its focus on value, new menu options, late night breakfast, that's the reason why sales were up in may. mcdonald's reported same-store sales up 2%. that was globally. up 2 1/2% in america. the stock close to $100 a share. and google reportedly struck a deal to buy waze. more than a billion dollars and no he real change there. the sports, miami heat took game two of the nba finals beating the san antonio spurs 103-84. the series is even, one game apiece. the teams face off again tomorrow night. that would be in san antonio. next, dr. marc siegel on your medical records going on-line.

is that a must? does your doctor have to put your full medical history on-line? i don't know the answer to that question, but the doctor does. here comes obamacare.

>> he's laughing and charles payne is here and he's going to tell us how to make money. charles: rf microdevices. i've been watching this stock for at least 15 years. the rf radio frequency. stuart: finally. charles: quarter over quarter or

4%, they do a lot of things with respect to cellular things like that, there's some scuttlebutt that they've the got things in the 5 s and 5.50, i think they take off: this is one i watched a lot and the language is coming on strong. stuart: day trader stock at $5 a share. charles: it used to be a real day trader share, but i think it will break out and have a big day double digit. i like the risk reward. stuart: you heard it today. june the 10th and it's-- >> time stamp. stuart: time stamp when he said. thanks, charles. how do you feel about your medical records going on-line now that you know whaa the government is doing with some of your other information. dr. marc siegel is with us. am i r biht in saying, that undr obamacare, all doctors are encouraged, pushed towards

putting your entire medical history on-line? is that accurate? >> that is acaccrate. in fact, you're penalized if you don't do that. now, i'm mentioned-- something i found out is probably going to be disturbing to your viewers. i i' working now with electroni records and i like it, but i noticed if i see a patient and another doctor saw the patient before, their records are already on-line, meaning i i' sharing information unwittingly with other physicians, not all my patients want that. not all my patients want every one of their physicians to know everything about them. at least to efficiency and medical care, stuart, but privacy can be compromised. if you add the federal govegovment to that pool. who knows what's going to happen with that information. the govegovment will know if you're depressed and what stuart: the federal government knows this? >> don't hundreds of thousand of people die every year because of misinformation. this is one of the cases don't we want desperately for this

sufficient to go on-line. you can go to a hospital every day of the week and every nurse asks you the same question, every doctor ariss the same question. i mean, everyone's asking the same questions. >> charles, i am in the middle of doing that right now for a reason. i tttally agree with you. you're talking about duplication, and we need to cut down on duplication, but there is an issue of securing and privacy at the same time. your point is right. you don't want repeats. of course the other problem with that, when you go to electronic medical records, usually, it's your hospital that has all of them. when you go to another hospital you may be at a disadvantage. so, it incentivizes you, stuart, sta sayng where you are, under e roof. overhe's right you've got to cut down on duplication, i like it, but concegoved about the privac. charles: same thing when your player says to yos y now, if yo want lower premiums under obamacare, give us your health records like cvs did, i want to know how much you weigh and your height. eventualllly isn't somebody goig to penalalie you for that? that's the concern. stuart: does the govegovment, ay

agency of govegovment, have direct access to my personal medical histories because you doctors have put it on-line? do they have access to it? >> no not right now. stuart: they're not supposed to. stuart: but these scandals s sggest if they want to they can take a look. that's the suggestion. >> essentially when they have something called medicare or medicaid as an interface. these are federal prograum. stuart: what you fear-- >> they can do this under medicare all the time. i want everyone to know this. i can get audited by medicare all the time and the federal govegovment can get a% dess to my health records under medicare. >> what you're worried about then, is the indpriidual byour pushed around because the government knows your entire medical history from soup to nuts, you could be pushed into losing weight or taking this drug to get your blood pressure down or whatever, pushed around. >> by someone. >> by your employer and it's sticks and carrots. i love the carrots, if you lose weight you get a lower premium. if your blood pressure goes down

a lower premium. stop smoking a lower premweighm great, what about the sticks, what if you don't lose weight? i don't want to see people penalized either by thenti employer or by the federal government. that's why i say in my article in the new york post, have that conversation now, talk to your physician now. is your physician going to still be seeing you. are they still going to take your ins srance? what's your employer going to do? are they going to drop you. are they going to make your part-time so they don't have to pay for your health ins srance. are they going to pay you 40% they're allowed to do with a rising premweighm. can you afford it? can we afford obamacare? i don't think we can. stuart: do you think it's going to be stalled? >> no, i don't think that the political way is there. i thi fo that obamacare is here i think what's going to happen a lot of parts of it are going to fall off the beast. stuart: that would wreck it, wouldn't it? i mean-- >> it's already hat wecked, stu, it's wrecked. it's a bloated program that we cannot afford. it's already hat wecked. stuart: all right. we hear you. i thi fo we heard that, charles.

>> listen, charles is right. i want to emphasize his point. there's a b bi advantage of electronic medical records. security disadvantage, privacy is oncerned, but we need less duplication. stuart: we hear you, dr. marc siegel, tha fo yos y sir. the rich have returned to prosperity, the middle chas stuck in neutral. that's a% dording to our next okuest. so, when will the middle class catch up? he does have an answer to that question and it's next. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trad. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm moca santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> i i' going to call this prsirpros much a fmiddt market monday morning. the early action s sse sested we had a nice gain, can't work out. we're down 13 on the dow at 15-2. sony's stock, that's up today. e why? >> oh, yeah, how about the ndin generation playstation. i mean, i know that your he' into the xbox, right? i know that's your thing, microsoft is your thing, stuart varney, but some people like pmiddystation. and this is why. we're going to get details and the industry, e3 where sony is dinpected to announce some details on this. and plus, don't forget the e that may have just moved up along with that as well. >> wmeanve got it. $20 on sony, wmeanll take it, thanks very much, nicole. the rich are gsirting richer an the middle cmiddss is, well, ki

of stuck. but that's not going to be the case forever. in partsct, our next guest preds there will be more self-made millioight?nties emerging in th ne ou fprie years. more than ever in history. steve seebtodd, author of "how rich people think" wroins us right now. first of all, steve. lsir' gsir to the basic premise here. the rich have returned to prosperity. middle the mass people basicaln losing ground in terms of purchasing power, but you say the middle cmiddss is going to catch up,meanlault ahead with l of new millionaires in the next rve years. how is that going to happen, steve? >> as you know, the middle cmiddss, most of thenti weamedi tied up in the equity of their homes, whiih is now gone. i thi fo they're going to leago eventually. and we've got to start teaching pevarle that hyou'es are not an investment. it's not a piggy bank, it's an expense with maintenance and renovations and taxes and all kinds of different things that come with expenses that go with owning a home. sbut s i think that people are

going to have to turn toward entrepreneurship, the way america was built towards starting a small business, toward maybe i can-- okoing to bosses and say i need to make more money and lost my nest ese s and i thi fo that's we're going to have the wealth built. stuart: i see your point. but i don't see anything in president obama's policy agenda for the next three and a half years that's going to make starting a business easier. i think the exact opposite. >> well, i thi fo you're absoluteng. right. i totally agree with you on this. i thi fo that, you know, necessity is the mother of invention, stuart, and we all know that and people are going to finalng. w sayy up, even tho obama's anti-business. or anti-small business for sure, there's no question about that. people are going to take matters into thenti own hanris and stop waiting for home values to rise to the point where they can rsirntie. stuart: you thi fo what people have to do, but that's not necessarily what people are actualng. going to do. ave raybe we've got a new norma here, of steve. where people rre'y on gtaiernme

handouts so they're not striving to get off the food chain like a okeneration ago. >> but as you know, i agree with you. they're not going to be able to live on gtaiernment handouts. it's not going to work, it's a broken model and we know that. it's not going to work and i think that people are going to turn to entreprenbut s rship an intreprenbut s rship and thenti, wealth. charles: this is charles, while i hvare you're right. i thi fo the exact opposite is happening now. in this countrlly c tuitalism is being looked upon, froe, older people have lost f bath i it. i don't see what the epiphany is. i i' afr bad people are mtaiing away from capitalism-- >> it's going to hit a point that people realize they can't

retire on $50,000 and $10 an hour working an hour at wal-mart is not going to cut it. h hey're going to have to of necessity make something happen or they'll be eating dog fogot . stuart::i'd ltaie to be an optimist, the america we know and love, wmeanve he got to gsi back to it, here it comes. there's a tad of wishful thinking there, bearing in mind what wmeanve got on our pmiddte right now. >> i hope not the. i hvare you're wrong about this it sure llthks that way. but i don't think there's any-- when pevarle's backs are agains the wall. they will fight and americans are known for that. 2we' years of history. and we haven't gotten to the point where our backs are all the way ag banst the wall, but it's coming. >> we hear you, thank you, sir. let me check the b bi board par. llth3 c1 > this is a dead flat market. we're not expecting this, if you llthk it to the futures actprii before 9:30 when the market got

rolling. eve? hapd you say wmeanve hit ad high slthn and now we're dead flat. charles: we had the mcdonald's, e prices and a great sign and we're staples and-- >> and the mbefonale 9s nu0 wer. >> driven by america, you're right, we've had a lot of good e far. you know the markets, the last hours is where the action is. stuart: the 29-year-todd contractor from the nsa blows the whistle on a huge seadret s srveillance prtirram, ne ou, a former cia officer respond, how could this happen? is he angry about this leak at that kind of level? % we have the judge on possible espionage charges ag banst edwad snowden. [ male aouncer] surprise -- you're having triplets.

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>> new development in the nsa's e-mail surveillance program. a 29-year-old former cia and a former cia employee edward snowden has come forward and admits he's the leaker. he's now in hong kong. he is a former technical assistant and working for defense contractor booze, allen, hamilton. i want to bring in mike baker. what do you make of this, a 29-year-old guy who is is a

government contract he, not a direct employee of the nsa and yet, he has access to this kind of information, this kind of program. what do you think of that? >> well, this is sort of the end result of over a decade of this desire to broaden our reach and to share amongst all the various organizations. and there are consequences to that. i mean, we all remember 9/11 and the outrage over the fact that the fbi and the cia, for example, weren't talking to each other, it seemed, and weren't sharing as much information as they needed to. so the cries from everyone, not just congress, but the public, you guys have to play well together. you have to share, share, share, that became the watch word. so do you that and the logical result is that more people have access tt very sensitive information. there's nothing you can do about that if you want to get to that world where all of this world is

availab -- all of this information is available. this is what we get. stuart: i see your point, but i guess when we listened to this interview with mr. snowden, you know how far t's going here. i mean, as i understand it, he could watch the key strokes of an admiral, for example, in real-time, follow exactly what at that admiral or even the president of the unnted states is typing into his computer. he could do that, that's astonishing. >> yeah, i think we have to take it with a grain a salt a little of what mr. snowden is claiming is his capabilities in the sense that, i mean, look, he's not lex luther, it's not really even one of lex luther's capable mignons. he's a case study, he was washed out of the army, from an nsa guard to a private contractor positions, and the problem is, again, it's -- if you've got an individual like this who is disgruntled in some fashion,

he's going to couch what he's doing in grandiose terms and he's also going to up-sell his actual capabilities. no doubt about it he has done tremendous, tremendous damage, but part of the reason why he had the access, going back to your original question is because of this structure that we've been creating and it's problematic and there's really, at the end of the day, it's like a lone wolf situation in terrorism, not too much you can do ultimately to resolve this problem. >> last one, mike, what was your initial reaction, what was your reaction when you heard there was this big a leak in this big a program. >> sadness, frustration, a great deal of anger. you know, then ultimately you've got to step back and think, all right, we've created this system, we're going to have to deal with individuals like this on occasion, and the bigger picture, how do we do that. maybe we what need to do, also, do we have people supporting what he's doing, we need more

leakers, no, well, no, we don't. we have an obligation to keep our information secret from those of us trying to do us harm, but we do need to then look at the issues of the privacy and how do we monitor that on a bigger scale u i tell you mike, it's left me with a big brother feeling, that's the feeling that i've got. i know you're on the other side in terms of the community. >> i understand that. stuart: mike baker, thank you for joining us on this issue. big deal indeed. i want to bring in judge andrew napolitano on the criminal investigation that's launched by the justice department. judge, are east pspionage-- in other words, for nem to charge them his purpose was and intent was an aid an enemy of the united statee. and he has stated his intent was to expose the big brother aspect, the dark side of the american government in a free society the american people have

to the right to know that. i think it'd be easier for the government to convict him of a simple charge, violating his national security charge, he's basically admitted to. stuart: you can pay a high price. >>, but it's not like prison as in espionage. however, the government almost always overcharges, charges greater than the evidence bears because the result is either a compromise in the form of a guilty plea or the compromise in the norm of a jury verdict. and the hope and expectation is somewhere like-- i wouldn't be surprised if they charged him with espionage whether they could prove it or not. stuart: and we're told that he's in hong kong and wants to go to iceland and get diplomatic immunity because there's no extradition. >> the united states doesn't have an extradition treaty with

iceland. sometimes grants a permanent status or political asylum for people who can be prosecuted in their home country for they couldn't be prosecuted for in iceland. we do this ourselves and have done it to chinese dissidents and cuban dissidents, et cetera. but he used to work for the cia. so if you listen to him and pars his words, he said i could be subject to rendering. rendering means being kidnapped on the streets by an american agent, handed over to the custody of a third world agent and brought to another country where awful things could be con do him. that's what he meant by rendering. >> so by going public he stopped that by happening. >> he's at least made himself a household name and face. as a result he's going to live with this fear probably for the rest of his life. charles: from what i understand. he is claiming this is 10%, the tip of the iceberg. could he use the other 90% as

leverage to render a-- surrender that guarantees him a certain sentence. say i'll come in, i know i'm only going to get one or two years. >> i doubt that the government would enter into that kind of a bargain. i think he's probably already revealed to the journalist to whom he revealed initially, what he's going to say and they're timing the release of it. in the blogs he's a hero. >> yeah. charles: i did a search before and i've gotten overwhelmingly hero, overwhelmingly. >> because this was done in secret and the american public knew nothing about it and the director of national intelligence denied under oath that they were gathering massive amounts of information on tens of millions of americans, well while they kn-- that they were. stuart: and put on the screen, and this is booze allen, for which he worked, is down.

and maybe the government will restrict how many contractors they are they're using. 3 1/2%, that's damage. >> as a contractor he has the same burden to maintain the is secrecy as the government does, but not the supervision. stuart: the scandals go about the governments watching us, i'm getting the big brother feeling. are you? my take on that is next. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure global broadband network and custom communications solutions, your business is more reli. and with responsive, dedicated support, we help you shine every day of the week. how old is the oldest person you've kwn?

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>> apple getting a lot of attention as it kicks off its developers conference today and the company is set to debut after iphone and the ipad as well, going to compete with samsung and the launch of i-radio is expected, also. shares of apple are up 3 bucks, 445. president obama expected to nominate jason ferman, the president's long time aid will replace alan krueger.

there you have it, kinky boots.

>> tense up, charles is here with another money making ahead. >> this is a reiteration, i said a month or so again. this stock is on the verge of a major break out. it's a relative cheap stock using your valuation med tricks and the audience knows it's one of the best bakken oil plays. and the production is going up, but they keep finding more

reserves. and harold hamm founded the 3 1 company, a tremendous guy, if anyone gets a chance read his story, he's amazing. the company is amazing it's a $100 stockkin my mind. stuart: isn't he one of the modern fathers of fracking? >> that's his company. stuart: we're looking at it. thank you, charles. check facebook again because earlier the stock was up about $1 which is a big gain. where is it now? >> yeah, that's what i'm watching right now. look at that, up over 5%. it gained just even in the few moments that i'm standing here. so, 5 1/4% and this is because steeple nicholas came out today and talked about the fact at that they're raising this firm to a buy from a hold and saying the things that everybody is worried about for facebook are all priced into the shares. the shares have bottomed. and what people are ignoring, stuart, are the near term catalysts and the back to school seasonality, instagram and new products and advertising foremats including video advertising. so, in their view, they think there's a lot of upside

potential here. stuart: let's see if it gets back to 38 where it debuted-- >> the price target is $29. don't get crazy now with the 38. stuart: thank you very much indeed. the dow has turned around modestly. do you trust your government? your phone records have been collected, your e-mails can be read. are you okay with that? here is my take. no, i'm not. i do want my government to track down terrorists, but i don't trust this government to keep the snooping confined to the terrorist issue. stress the word trust because that's the key to the way we react to all of this data collection. get the bad guys, oh, yeah, please, do it. go after them. dig them up and find them, get them, stop them. yes, got that. do that to the terrorists, but frankly, after all the revelations, i don't trust the government to stop with the terrorist issue. seems to me, this administration and its supporters within the federal bureaucracy will move

heaven and earth to hold on to power. and there are moles in the irs without the conservatives in the election. and the people in the epa went after conservatives, and the crony capitalist friend eric schmidt organizationed the boiler room and we're supposed to believe that the irs will not pry into our personal health records when they go on-line as part of obamacare? no, i do not trust them. worse, i have a very strong big brother feeling. i sense that any move i make is being watched. in the age of terrorism, i expect a certain degree of surveillance, but this goes far beyond that. it makes me uneasy. so, i will answer my own question. do i trust this government? no, i do not. i think they've changed the relationship between the government and we, the people. and i can't see them getting that trust back. something different on my take today. my colleague lou dobbs is with

us and i want to ask his opinion on what i'm calling the big brother feeling. good morning, lou, what do you think? >> good morning, and i-- as i listen to you, can you feel me now? and this is where we are. anyone who trusts government, and you and i do not come from a school that trust governmeet of any sort, any stripe. conservative, liberal, republican or democrat, we know better, but for many millions of americans have become so dependent upon government that they're unwilling to even consider the possibility that they are sacrificing their rights, their liberty and their choices in our society, which after all, is the reason that we ooh live in this society because we're free. right now people need to understand there should be more questions than people runningar schmidt or president obama, or frankly, whether it be the chairman of various intelligence committees. this is a time for people to think. stuart: you've got it. transfer to the obama agenda

going forward. do you think that the president is going to lose political support among democrats to the point where he's unable to push through immigration, changes in the gun laws, for example, and the implementation of obamacare? >> i think that the answer is yes. i think importantly, it's what republicans will do now. republicans have tried to have it both ways. they've tried to be, if you will, social liberals while being traditional conservatives when it's convenient. conservatives have to believe in limited government and they have to believe in maximum freedom and liberty in our society. when this is the choices not being choices, we've taken on a long war it in afghanistan. and we had the war won within nine months and september 11th we proceeded to turn it into a long war. we have chosen not tone gauge

o-- engage the enemy, we've chosen not to name him the radical islamist he is, but to bow to political correctness and to the greatest pressure and the war on terrorism is by ammrican citizens stepping aboard an aircraft in the united states. this is madness and we have to -- we have to regain our stability, our good senses, our good judgment and our values. stuart: we hear you, lou dobbs. i'm sure you'll have more on this on your program tonight. 10:00 eastern on fox business network. thank you as always. >> thanks, stuart, appreciate it. >> first california and now rick perry is going off business in new york. new ads running, come down to texas, he says. that's next. s, ideas, goals, appetite for risk. you can't say s, 'one size fits all'. it doesn't. tt's crazy. we're all totally different. ishares core. etf buding blocks for your personed portfolio. find out why 9 out of 10 large profsional investors

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>> hey, new york, texas wants your business. governor rick perry is putting a million dollars behind a brand new advertising campaign aimed at attracting business from new york and connecticut moving it down to the lonestar state. listen to this. >> texas land of opportunities, home of renegades. >> where dreams become reality. >> texas is calling, your opportunity awaits. stuart: nonstop, come on down.

charles: the first thing we've gom 500,000 women-owned businesses. emmitt smith, rodriguez the film director and the nuances of the commercial, it's fantastic on their part. stuart: they're winning, too. charles: of course. stuart: and another winner, mississippi, i was there late last week, pulling in all kind of worldclass manufacturing because they're cutting taxes and they're business friendly and seems to be working in mississippi. charles: business friendly works everywhere in the world. japan is up 5% overnight because they're going to get rid of regulations. dream on. more varney after this. i did? when visa signature asked everybody upgraded exriences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm... [ male announcer ] at vissignature, every upadedxperience comes from listening to our cardholders. visa signature.

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there have been times. stuart: weight, nothing is a crime. you can do whatever you would like for 24 hours. except the politicians can do whatever they like. you approve the premise they financing? charles: i wish we had that in new york city. too many cabdrivers. stuart: a side if you we never thought we would see. charles: i think the interesting thing is how many of the daytime movies keep flopping. stuart: they do, don't they? the actors made big money. charles: hollywood is always criticizing wall street for making big money are doing nothing. please make $20 million they know the movie will be a flop.

stuart: we are out of time. it is yours. dagen: tell charles the only crime in new york city like kicking a cab if you get caught. so have added. one of the most recognizable faces in america over the weekend. is he a criminal for comp are my thing mark charged up, high energy market could feel desire for bigger profits. and let's cut a deal, some employers setting up a market to allow employees to buy and sell vacation days. tell us if you think that is a good idea. do that on twitter get and facebook ceo challenge and women saying there needs to be a bigger push for equality..% we will talk to one ceo who has worked her way up from secretary to the top job in her company. those stories and so much more this hour on "markets now."