♪ imus in the morning ♪ >> we thought we would open up in swahili today because the president is going to africa and, yes, it's friday. good morning, everyone, his trip later this month is making headlines today because of the cost. 60 to $100 million dollars. no sequester cut there. the fbi director takes the stand, but he doesn't know the name of the person in charge of the irs investigation? stonewall city. the president will use your -pmoney to provide weaaons to syrian rebels, but which rebels and whose side are they on? and a single report of what ben

might say gives stocks a big gain. a hint of what he might say. you will see what happens this friday morning to your stock portfolio. yes, "varney & company," here we go, about to begin. loing at covered call strategie to generate income? with fidely's options platform, we've completely integrated every step of the process, making it easier to y filts and strategies... get a list of equity options... evaluate them with our p&l calculator... and executute faster with our more intuitive trade ticket. i'm greg stevens, and i helped creat fidelity's optns platform. it's oneore innovative reason serious inveors are choosing fidelity. now get 200 ee trades when you open an aount.

♪ >> oh, more swahili for you. there you have it, the lion king. president obama and the first family's summer vacation will be to sub saharan vacation will cost the taxpayers 60 to $100 million. and they'll take 14 limos, and aircraft carrier and a ship with

a medical center off the african coast, don't worry, the president is curtailing a little his plans. he and the first lady originally planned a safari that would have required military snipers to take out the lions and cheetahs that threatened the commander-in-chief. that's been cancelled and the taxpayer is saving a little. remember, he is the president of the united states and any trip for any president either vacation or diplomatic will cost big money for security. my question is, what about sequester cuts? next case, the wall street journal got the scoop yesterday, saying the fed isn't near raising short-term interest rates. more free money for the banks, we'll tell you how the market opens in just a couple of minutes. . we went out and ask people a simple question:

how old is theolst person you've known? we gave pele a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. anthat's a greathing. but even though we're living longer, one thing that hasn't changed much is the officiaretiment age. ♪ the question is how do you make sure you have the money you ed to enjoy all of these years. ♪

♪ ben you're running here and there ♪ >> that's a young michael jackson. could you believe a hint that ben will keep printing moved the market 200 points higher yesterday? i'm going to quote john hilsenrath in the wall street journal. fed officials say an adjustment

in the program doesn't mean it will end all at once and it doesn't mean the fed is anywhere near raising short-term interest rates. that's it, all that was written and the dow went straight up. how about that? we'll deal with that later on. we're about a minute from the opening bell. joining us from chicago, larry levin. all right, larry, since may 22nd when ben first hinted about slowing the printing presses, global stock markets have dropped 3 trillion dollars. why should the little guy buy stocks when this is going on? tell me. >> well, because, a good champ is what happened yesterday in the piece in the wall street journal. the fed i don't think is going to stop and is that something a little guy should think about going to work 9 to 5. probably not. for those who want to be invested in the market, i don't think that the fed will get out of the way. apparently ben has the wall street journal on speed dial, something pretty clear, but it really is a situation where this market is going to be--

for as long as it takes. stuart: it drives us crazy when the slightest hint produces such a huge market gain or a market selloff. it's hard to deal with that. you're the trader, larry, you've got to deal with that. >> yes, do you, 11 point move in the s&p and if you were short thinking the market topped out. you were in trouble and that's part of how trading is. >> good luck, larry, i can hear them shouting in the background and we're off and running. we were expecting a flat open, flat or slightly lower and that's where we are, slightly lower. down 3 points and we'll keep you informed, down 6 at the moment. a couple of big names that you know in the news, maybe the stocks are moving. airbus introduces a brand new plane. that's news. it's the a-350, took its maiden voyage in france today. it's the competition for boeing's dreamliner. take a look at boeing shares, they're thinking about a stretch version of the 787 dreamliner

and boeing's at 102 this morning. oppenheimer has raised its priors target on gamestop from 27 to 50. they say it's going to 50. looks like they didn't see the show yesterday or given our track record of putting stocks on death watch, maybe they did. they say 50 for gamestop and it's up this morning. there's an anti-trust suit against apple. it's now underway. apple is accused of driving up the prices of e-books. apparently made deals with publishers before introducing the i-book and the ipad. the charge is they tried to fix prices for e-books in advantage. all right, nicole, apple stock please. >> well, it's down almost a buck, around 435 or so, and an executive to launched this back in 2010 and the one negotiating with the publishers, and in his eyes he says he was working the best interest of the consumers and provider better technology and interphase and e-books, that

wasn't available anywhere else at that time. so, in their view, they think they gave great offers to customers and give them what they wanted and sometimes you have to pay more for what you want. stuart: by the way, they're resurrecting e-mails from the now deceased steve jocbs. and the dow is down 11 after two minutes worth of business. here in new york, we are emerging from a nasty storm. so, let's get some sunny skies in the back drop. here is john layfield who joins us from bermuda. i want to see the sunny skies before we go further now. we all feel better. thank you very much. john, you like two big tech companies, you like them because of their acquisitions and start with google, which this week bought the mapping software company waze. >> the whole reason they're keeping people on the product platform longer. and it used ton a government

facility and now it's run by google and things moved to private enterprise. google has 50 billion in cash and they and yahoo! the other company we are going to talk to in just a minute are in an acquisition spree. they made a fantastic acquisition with youtube, they have the ability to be able to buy companies and keep money in place and keep those better because of the acquisition. we say that waze is a mapping company. in fact, doesn't it offer real time information on traffic, that's the big deal, isn't it? >> exactly, it's a real-time information, to public size, remote ads to local restaurants and theaters and where you are. it's all about selling ad revenue and started in israel, moved to silicon valley and bought for a billion dollars by google. >> just like that, a billion dollars. >> all right. yahoo! they bought tumblr and you like yahoo! because of that. >> yeah, i'm a huge fan of marissa mayer, and they have

detract eand i know when dinosaurs are at tar pits. and she bought a photo sharing app and taken that cash forward and 3 billion in cash at the googleehas 50 billion dollars. imagine what happens and this day will come, when they make a bid for the rights for say the premier ship over in the u.k. or the nfl. it was a game changer for fox sports when they got baseball and nfl and the same when you have the big tech companies getting the rights to one of thh sports great leagues. >> you're dead right on that one. full disclosure, do you own google or yahoo!? >> no, i regret that. i wished i would have bought

yahoo! in the mid teens. stuart: don't we all. stuart: go back to the beach, we understand you've got it. >> always great talking to you. stuart: you, too, sir. it was the big ipo yesterday, it wasn't a good debut. nicole, bring us up to speed, where is coty now? >> it's a huge ipo. one of those over a billion ipos and the consumer products. we're standing here at the post right now. it's 1744, but what's interesting is this is priced at 17.50 and pulled off yesterday and a lot of of people on wall street were so disappointedd when you see the billion dollar companies, ipo's doing well. and it was a disappointed and price in the midpoint of the range. you would have thought maybe it'd move to the upside. they have so many unbelievable people on their docket, lady gaga, vera wang, david beckham and they have fragrances and beauty products under their belt and we've talked about how they

tried to take over avon products and then they sweetened the bid and nothing happened. remember, we talked about that last year. you, but today, still not that 17.50 ipo price. stuart: very close, but still not quite there. nicole, thank you very much indeed. if i'm watching stocks, i've got to be very much aware of interest rates and what they're doing. well, yesterday, we had a harvard professor on the show, he told us that long-term interest rates are on the way up. okay. got that. what about short-term interest rates? our next guest says short-term rates, that's a different story. here is the chief economist at the american bankers association joining us from washington. james, what do you say, short-term interest rates are not going to go up? >> no, they're not going to go up. probably until the first quarter of 2015. there's three things that i think need to be separated here. the first is the fed is going to at some point probably at theened of this year, stop its 85 billion monthly purchases.

the second thing that happens, they've got to decide whether or not to replace those things that are maturing or let that roll off, and the third thing, which is what effect those short-term interest rates, is how they unwind the 2 trillion they've added over the last few years, and how they, you know, pull that money back and start to raise interest rights. >> when i see long-term rates go up. i think, maybe that's a bit of a negative for the housing market. when i see short-term interest rates stay at virtually zero. i think maybe that's pretty good news for the economy and of course for the banks. so, are you talking up your own book there, sir? >> no, you know, what happens with short rates, you're keeping money fairly cheap for borrowers and that's the whole idea, right, is to encourage those businesses to borrow and expand their businesses. as now, banks work on express. you've got to pay for money and lend that money out and that spread narrowed a little and it

stays fairly constant regardless of what the interest rate cycle is. it's good for borrowers and that's exactly what the fed policy is trying to-- >> don't want to get technical, but there is something called the yield curve. and when long-term rates go up, and short-term rates stay very, very low, that's the yield curve goes up, that implies that you're going to have a nice economic expansion. is that what you're saying? >> well, exactly. and i think that's what the fed is trying to do. now, as you know, they've been doing the qe-3 and trying to keep the longer term rates down, keep mortgage rates down by their mortgage-backed security purchases. that will probably start to, you know, rise as we've seen over the last month or so. but having that solid yield curve gets us back to a normal situation where we want to be if we want this economy to be on solid footing for a long time. james, i know you like that free

money coming at you bankers from the fed. i know you like it there. and don't shake your head. i know what you like. >> well, it's good money for borrowers, stuart, as you know. >> that's a fine talking point. james, thank you very much indeed, sir. >> according to the country singer, willie nelson, it's farmers against fracturing. no surprise, the outspoken pothead is against the drilling method. we'll tell you. and friday morning, first what, ten minutes of business we're down ever so slightly and 15-1 is where we are. to the price of oil, that's important for the price of gas. we're up to $97 a barrel as of this morning. all right. i've got an update for you on two big stories from overseas, i'll deal with syria first. the obama administration has confirmed president assad used chemical weapons against the rebels, the syrian government denied the claim and president obama u.s. military aid for the

rebels. we don't know which rebels are getting the weapons and whose side they're on. and to turkey, the president there and representatives of the demonstrators, they're at a compromise this morning and suspend plans to bull doze a park that sparked a two week protest. in those two weeks, four people have been killed and turkey's viability as a prosperous democracy has clearly been threatened, but they say they got a deal. all right. clients are always learning more to make their money do more. (ann) to help me plan my nt move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy.

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gamestop, i'm embarrassed to say that we put it on death watch a couple weeks ago. it's the gainer in all of the s&p 500 stocks. that will teach me. irs scandal slashed across the headlines when it broke. yes, it was. now as we suspected you don't see much of it in the establishment media now do you? joining us is brent bozell with media research center and keeps a check on such things. am i might? it's virtually disappeared after a nice spike in the early going? >> yeah, last week we talked about it and told you it's going to happen. it doesn't take a knows troe-- and think about it. if the first two weeks, there were 96 stories, that's serious coverage. in the second two weeks, there were 31 stories, this week, one

story, it's gone away and yet, almost every day there is a new development with a new outrage with the irs. stuart: now, i thought-- >> and stu-- go ahead. stuart: i thought maybe this time around because the irs touches everybody and a lot of people are upset about this. i thought just maybe the media would turn around a little and give more coverage to this embarrassment for the obama administration. you know, bret, i have to-- >> think about this, stuart, this week, what did we learn? we learned from the inspector general's report that 1,000 irs agencies have been abusing their credit cards, meaning what? that these are irs agents looking for abuses by the taxpayer and now are abusing the taxpayer. is that a story? of course it's a story. what else did we learn this week? we learned on money cns news broke the story hat the irs has been purchasing spying equipment, putting spy equipment

that will put cameras in ashtrays, cameras in plants, cameras in wall clocks, spying on the taxpayer. wednesday there was an update because of the outrage caused by this, do you think that wednesday they canceled that order. you think that would be a network news story, they didn't touch it. what else did we learn? yesterday the head of the fbi was asked in a congressional hearing who is investigating the irs? the head of the fbi doesn't know. he said he couldn't tell. how are these not stories, stuart? >> i'm with you. hold on a second. i'm going to run that sound bite from the fbi director yesterday saying i don't know, i don't know who is in charge. roll that tape. >> can you tell me how many agents and investigators you've assigned to the case. >> maybe do that, but have to get back to ou. can you tell me who the lead investigator is? >> not off the top of my head. >> it's the most important in the last six weeks, you don't know who the lead investigator is? >> at this juncture, i do not

know. >> and that did not make the news from the establishment media. >> the height of ineptness or that the obama administration is deliberately not investigating their own scandal. why? because maybe it's going to lead to places they don't want the american people to know. this is a complete outrage. this is a government, stuart, that is completely out of control. upping it'd be a news story, if they're not going to cover it, then they're aiding, complicit in a coverup. stuart: you know, you're dead right and i was dead wrong. and we really like your stuff because you keep on top of what's going on. this is what most people hear in america. and they're not hearing about something of fundamental importance to our political system. >> absolutely right. stuart: thanks for being with us. >> always a pleasure, sir. stuart: thank you. 9:48 almost 9:49 eastern time. where issthe price of gold?

up 8 bucks. 1386 to be precise. drum roll, maybe we -- thank you. take a look at this photo. this is my daughter and her date, matt reagan, before attending the prom last night. and i say this is a great american tradition. monica crowley's reaction in a moment. ♪ want to be forever young man m ♪

>> last night i had 22 teenagers staying over in my house. it was a post-prom party my hou house. [laughter] ooh, that was from my morning video which we post on our facebook page every day. very bright and very early. and my daughter angela had her prom last night. and that's her on the right of course with matt reagan, her date. now, i think the prom is a terrific american tradition, you dress to the nines go out and have a wonderful time all of these youngsters, great stuff and i'm happy to be part of this americana, monica. >> i completely agree with you. first of all, your daughter looks gorgeous and her date is

adorable. my question to you, stuart, do you like the boy. stuart: yes, a fine young man. >> a fine upstanding young boy. stuart: i clean the gun at the kitchen table. why he's a fine young man. they stay overnight out in the swim pool until one or two or 3:00 in the morning. they stayed overnight at your house where you can keep a close eye. >> a brilliant move. >> that's a brilliant move. no doubt about it, yeah. stuart: am i okay with it. >> i love it. my son he's in 10th grade and went to the senior prom and you know, looked great had on the suit and everything, and-- first suit, he loved it. stuart: hold on a second. we have a contrary opinion from the floor of the new york stock exchange. what, nicole? >> i'm sorry, i cannot contain myself. stuart, have you ever been to a prom? >> i've been to ten. >> oh okay. well, fine. i'm sure your daughter, who she's looking beautiful and sure she and herrboyfriend had a

lovely time. some kids, not stuart varney's daughter, some kids use it as an opportunity to drink and have relations, so-- >> what's your point? >> the point is that it's not a great american tradition, it's an opportunity for these kids to go out and party, party, party, party, spent their parents' money. stuart: would you abolish prom? >> i partied, and partied andd spent my parents money. it's not a great american tradition. stuart: you cannot-- nicole, that's just and rock and roll and the problem is what? >> we're going to move along, everybody, rapidly. >> i'm kidding. stuart: thanks for playing along. look what we have for you in a jam-packed new hour of "varney & company." apple sued over e-books. is this a witch hunt? willie nelson says that fracking is bad for farmers and sheila

jackson lee defends the statement that health care should be a constitutional right. plus, the letter that abraham lincoln sent to the general a week before he fired him. what's that letter worth. a big new hour coming up on this flag day. ♪ everybody has different investment objectives, yocan't say ideas,'one size fits l'.or risk. it doesn't. that's crazy. we're all totally different. ishas core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional iestors choose ishar for their etfs. ishares by blackrock. call 1-8-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

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we will close out the week. crony capitalism, google's obama back eric schmidt ride high, apple goes on trial, it pays to help reelect a president. willie nelson weighs in on fracking. farmers don't need it, he says. he should come to my neck of the wood. representative sheila jackson lee says health-caae should be a constitutional right and she will be here. president lincoln write an angry letter to general mcclellan nine days before he fires him. we have a letter. it is for sale. ♪ stuart: to the big board, a turnaround, we were down 20 and are up 12, let's not make a big

deal about this turnaround, 30 points but i got to hand it to charles. he said throughout the week don't worry, relax, everybody, and he was right. for all the wrong reasons. you are right for the wrong reasons. this is all about ben bernanke, nothing to do with your overseas profits and all that. charles: stock of the day, i went on the 11:00 show twice, i brought this big package of mail from a company called restoration hardware. have you ever been there? stuart: yes. charles: the stock is at an all-time high exploding to the upside, from the time mentioned about this show is that 50%. no one bought a sofa from restoration hardware because of ben bernanke. peter: when you are talking individual stock, we are talking of the overall market. charles: i worry because so many people have missed 3,000 points because everyone is warning them about the market. investing in the individual companies you'll do well. stuart: i will give it to you.

how come you give that recommendation in the 11:00 hour, not "varney and company". charles: i am sorry. stuart: another stock. not the stock of the day. why is this. >> i watch sand letter, let's start with the numbers. by reading versus a whole than the price target of $10 up from $6. and $16. he will go on to the web site. and the pull strategy. the groupon has four buys, and to still overall the analysts, the short interest is 5.3%, it used to be more than 12% in mid april.

people are turning hot. stuart: you missed that one. charles: groupon, i miss groupon going to 100. that stuart: the department of justice versus apple. the issues that accused of jacking up the prices of e-books. is this a witch hunt? >> would you stop it? no one can touch apple, the great steve jobs, give me a break. this is about government actually helping the people, helping the citizens, helping the consumers, making sure there's a level playing field, people want to use apple product versus the barnes and noble notes or the amazon kindle, that everyone is on a level playing field. let me tell you this case is being argued in new york city, a former prosecutor of the department of justice and let's just say when i'm there with my criminal defendants she is always on the side of the prosecutor, always on the side

of the government. i would think she will be true to her origins and will be on the side of the government here as well. and when you let -- libby point something else. and i am right. stuart: amazon came out with e-books. it was apple that came along later and provided competition for amazon. they level the playing field. >> they provide the competition in a way that had a level playing field or did they go to the five biggest publishers, harpercollins, simon and schuster and cut a deal that elevated the price. stuart: the end product for the consumer was a much cheaper book to read. that is the end product. >> you are talking about -- there was the price disparity between apple products and other products and what the government is saying is this is a violation of the antitrust laws, that

everyone, there should be competition in the marketplace and they don't approve of the way apple -- charles: how can you talk antitrust and not bring up google? things like that, this administration looking the other way. >> i am not the united states attorney. so i can't tell you why they have chosen -- stuart: monaco will tell you. >> leave the legal issues aside. the politics of this are important. eric schmidt, chairman of google is very cozy with a tight relationship with president obama. google was all over the obama campaign in 2008 and in 2012 so perhaps google is being caught a break. stuart: monica is absolutely right. eric schmidt organize the data processing boiler room for the obama reelection campaign.

eric schmidt was in that boiler room on election night. he organize the president's reelection and now google, they are untouchable but apple, they didn't have anything to do with reelecting the president. they are brought bbfore congress. >> you think apple cultures grow obama? i think the apple culture is very pro obama. stuart: they wouldn't be in court now. >> it is not my area of expertise. i don't know about politics. you have brilliant pulling -- stuart: the prosecutors, i think it is the prosecutors who have done this, bringing of e-mails written by steve jobs when he was alive, with the chief executive. >> it would be amazing if they brought e-mail's written by steve jobs, that would be really wild. stuart: this is what prosecutors are down to, e-mails --

>> this i do know about. >> the rules of evidence if a client witness is unavailable and there is a riding by them that can be verified that writing is by them they are admissible subject to the judge's -- so it is -- i am able day. n/a player. it is admissible. a witness on a case who disappears to testify for the grand jury and there is really new can't bring them back to america you can read the grand jury in front of the jury even though they are not there so the rules of unavailable witnesses, into the record. stuart: i ammsimply saying you lawyers will not bring this free and open competition. you lawyers will bring us a politicized judiciary. >> painting with a big wide brush on flag day. i only work within the system.

i didn't create it. i can adulterate. i do the best. >> the context of this conversation is all about context. we are having a conversation about apple versus google being untouched in the context of the abuse of power at the irs and every branch of government seems highly politicized by this administration. you can't separate them. >> i am a political, asexual, that is me. you can't get in any trouble. stuart: i'm trying to get things under control mind having a hard time. not bad. >> i am going to be the great stuart varney. what i supposed to do? stuart: stay out of the next story. ready to foot the bill for the first time? the latest vacation is going to cost you big time. according to the washington post president obama's vacation to africa will cost the taxpayers anywhere from 60 to $100 million. and amtrak carrier, amphibious

hospital ship, 50 support vehicles will be brought in for the president on his africa vacation. >> i normally don't begrudge presidents and their families vacation, they're human beings and they need a break like everybody else but this first family takes more vacations than the average president and ppesidential family. in this case in an age of sequester and an age when we are supposed to be at least looking at some government fiscal restraint to have a vacation that is expensive seems incredibly outrageous and unnecessary. when word got out they decided to cancel the safari, part of their african vacation how much will that save? how much? we don't know but that is a drop in the bucket compared to the overall cost. stuart: when you can't visit the white house but you can take a trip to africa. >> austerity for me but not for me. charles: i agree with monica. it is ridiculous.

in this day and age is ridiculous. stuart: we will go to nicole petallides so that arthur kent removed itself, game stuff, time to eat crow because we could game stop on deathwatch and the best performer of the s&p. >> when you put it on -- let's take a look at game stop, 4%, 3926 so oppenheimers operating on the price target raised to $50 up from $27, talking about the x box 1 and the play station 4, these new launches will drive a resurgence in sales according to the oppenheimer analysts. they raised their earnings per share and they are loving and consumer loyalty program too. stuart: and we are eating crow big time. i want to bring everybody to date on the big board we are 15 points, the dow's close to 15,200 and and negative reading on consumer sentiment, lower rate than expected, didn't

change anything and turned around little bit and we are now up 14. the vacuum tube at the bank drive through, how would you like to move it to travel from san francisco to los angeles in 30 minutes. you will if has led founder elon musk gets his way. charles has more on this. this is a private enterprise entirely. charles: maybe. he has a way of mixing the two but better than anybody else, this is the paperloop and according to elon musk it is the combination of the concord, a rail gun and air hockey tables so put all those things together in your mind. when you get there you hop in a to bandage? into this. stuart: the problem is the gee force on you when you traveled that fast your scrunched into a theeball. charles: i am sure there are hurdles to overcome just like there was with the right drug is. you probably told them the same

thing. the point is -- the point is that this is something that may go back to 1972. the rand corp. said we could devise something like this to go 14,000 miles an hour. that would have a on the ground. a lot of people think this could work. >> like a ground version of the concord. charles: hovering on the air in the 2. >> i remember being at walt disney world in the 1970s when they build a monorail and that was the vision of the future and it was nowheee so we will have to see that. stuart: country music star willie nelson is taking a stand. and the pot smoking singer is against the drilling methods, doesn't like fracking even if it is bringing money and jobs to upstate new york. find out why he is against it after this. ♪

stuart: competition from boeing, launching its latest a 350 jet, amazing flight around company headquarters in france. the airline is expected to have a year of flights tested before -pit takes to the sky late next year. shares of boeing at $103 a share because they are thinking of a

stretch. apple back in court over its deal for e-book, even e-mails of the company's late ceo steve jobs were used in the trial yesterday. apple stock is down $2. share of the luxury home furniture store restoration hardware, a charles payne peck, the company posted strong profits expanding its business, the stock is up 15%. the question will not go away. will california fracking? we will have an answer in a moment. 7ocks and 6 wks of sleep but one thing you don't want to lose is any more teeth. if you wear a partial, you are almost twice as lily to lose your pporting teeth. new poligrip and polident for partials 'seal and protect' helps minimize stress, which may damage supporting teeth, by stabilizing your partial. and 'clean and protect' kills odor-causinbacteria. care for your partial. help protect your naturaleeth.

stuart: phil mickelson leads the uso but along with luke donald. got that? will the nelson is leading the charge agaanst fracking in upstate new york ahead of farm and benefit concert next month. the music legends says fracking is, quote, bad for the land, bad for the farmers, bad for the soil, all around a bad idea. view going along with that? >> i am completely supportive of fracking for goodness sakes. willie nelson is a liberal, has always been a liberal and always been a big environmentalist's so this is no surprise. you are talking about jobs, if you're talking about doing this kind of oil and natural gas from the ground all these companies have environmentally sound way is to do it. stuart: think of the jobs in upstate new york find out for development. charles: this came about because of economic problems.

i know willie nelson is an artist but when the chimes in on stuff like this i totally ignore. stuart: a big discussion in california. let's bring in state assembly jim donnelly. let's get right at it. i want an answer from you and it is a yes/no answer. at the end of the day does california go after the massive energy reserves that are under its soil? yes or no? >> absolutely. that is a yes. stuart: wait a second. you are running for congress. you are going to go out there. you favor fracking and you want to go get it. can you get elected in your district on that platform? >> i am not running for congress. i running for governor against jerry brown and yes, i think i can because california has somewhere around three million

people out of work and fracking couldn't happen to the monterey shale that has hundreds of billions of barrels of oil fifteen billion of which they believe they can tap fairly easily and you are looking at anywhere from half a million to two.7 new jobs after a 15 year period, 5 to $25 billion in tax revenue to the state. even the epa, the local environmental regulatory agencies in california all agree it is not a problem, there's not a single instance in california of contaminating ground water which is the complaint of the environmentalists. stuart: the environmentalists are very strong in california, they will say we don't want anything to do with fossil fuels because o2 emissions, global warming, we must be responsible and they're very powerful in the state of california. you think you can overcome that? >> absolutely. if you just a look, a week ago

we had ten bills to ban fracking or severely regulated to the point that it wouldn't be worth doing, wouldn't be cost-effective. now we'll have one bill left and that bill essentially would have some regulatory control but this shows that even the marxist progressives that are running california's democrat party understand the power of an economic boom that could take california back to the top from the bottom where we are now. stuart: we shall see but we got an answer. will california fracking and you said absolutely and by that you mean yes they will. good luck, i appreciate you being with us. thank you. in some quarters oil is a dirty word, not here. we celebrate fossil fuels, staad up and cheer. america's oil and gas producers have given us an energy revolution if only our political

leaders would get on board. here is my take. some astonishing numbers. last year america's oil production went up by 1 million barrels a day, the biggest increase of any country in the world. natural gas production went straight up too and because we know -- use more natural gas our co2 emissions went down. this is a terrific performance. hats off to the private sector, drillers, getting their hands dirty on our behalf. just imagine for a moment what would happen if the president and the greens joined the revolution. it is not going to happen but just suppose. i know it is hypothetical but just suppose. suppose california and new york ago after their gigantic oil and gas reserves, we build pipelines, lots of them to get our energy to market, build new refineries to get more gasoline to your gas station. can you imagine what a shot in the arm for america that would

be? jobs, growth, energy independence, much stronger dollar, deficit-reduction, lower co2 emissions. it is all possible. it is all within reach. this is a political opportunity. it is also a financial opportunity. if america's energy potential were truly unleashed don't you fix the stock market would benefit? what do you think? hundreds of thousands of high-paying energy jobs would do for our country. it is friday and maybe i am dreaming but just look down the road ways to a time when maybe our politics has shifted. if we, america, could be so much stronger, couldn't we? [ male announcer] surprise- you're having triplets.. [ babies cing ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission.

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don: you want to make some money? charles with the iworks solutions. charles: company makes analog and radiofrequency chips. ten yeers ago it was only cellphones and everything else. now think about all bookings you use these ships in, your car for instance, you have the rear collision sensor, the media center, cameras, the home media center. this is pretty good. it has really good support, great support there. major breakout through 24. the operating margin has expanded strongly last time they

reported, second half is better than the first half, good stock to get in, looking at $30, looking for a grand slam on this one. stuart: that would be a grand slam and most would take that. what time frame? charles: this year. stuart: it is june 14th. we are watching. we have another business board on the internet. it is called relay rides. park your car in the airport for a week for a month and somebody else can rent that car. co-ceo of relay rides joins us now. very interesting. this is another internet based business basically. let me make sure i have got this right. i go on a foreign trip, park my car at the airport but i am in touch with your company and you rent out that car for me to somebody else, get a piece of

the action and said the you. that is how it works. >> absolutely. our company was board a couple weeks ago but we recently announced an expansion into the airport business. we had seen our community delivering vehicles to renters across the nation, across all the airports and we deciddd to make it easier and enable the airport last week and car owner has a car on relay rides, they don't use their car very frequently, they decide to list it and rent it out to fellow travelers and on average our owners are making $1,000 every month. don: what about insurance, who insures the car driving around in it? >> we have a very innovative

insurance product that covers the owner of to $1 million in liability which is more than what most voters have for their personal policy and also insurance that covers printers during the rental so we got that covered. stuart: give me an idea how big your business is now? how many people have signed up for relay rental? how many customers do you serve? >> more than 35,000 customers who have actually used rentals and several thousands this things across the nation and sinne we launched our airport future we have presences across the country. stuart: basically you want to get bought out, don't you? >> we are excited about growing the business. who knows? stuart: money is a wonderful thing and you know all about that. great business, very interesting and thanks for joining us, we

appreciate that. health insurance, a right or a privilege? according to one congresswomen it should be in the constitution. we get representative sheila jackson lee's response to these comments in a moment. >> and i think what should be continuously emphasized as the president's leadership on one single point that although health care was not listed per se in the constitution, it should be a constitutional right.

steve schirripa coming up the ira's scandal, benghazi, the justice department, associated press, fox news scandals, the nsa contract elite controversy, former governor of arkansas and presidential candidate mike huckabee joins us to talk about those scandals now engulfing the obama white house tonight at 7:00 eastern. stuart: i have a question for you. is health-care a right given to us in the u.s. constitution? here's what sheila jackson lee says about this. >> what should be continuously emphasized has the president's leadership on one single point,

that of the health care was not listed per se in the constitution, it should be a constitutional right. stuart: we heard that but we are waiting for her, she was supposed to join us right about now, not appeared in front of our camera yet. let me turn to the company. the objective we says it should be a right, it should be in the constitution. monica? >> two separate issues. in the richest nation on the face of the earth should anybody be going without health care, without any kind of care, and should it be a constitutional right. i don't believe it shoull be a constitutional right. the reality in this country is as the wealthiest country honors we provide health care to everybody what the you have money, what you have insurance or not you walk into any emergency room you are going to get medical care at america, nobody is dying in the street in this country. stuart: regardless whether it is a right or ot we have got it

anyway. >> we have these social safety nets that cost about of money to make sure everybody in this country, wealthy, pork, insured or not. stuart: let me move to another area that she thinks should be a right in the constitution, housing. not everybody is given a house by the government. everybody gets health care, we know that but should everybody have a right to housing? >> the constitution was built on the principle of individual freedom and limited government. this is why they were making sure the free-market system in america could really thrive and prosper. the free market is there so you have housing at all costs and talking about social safety nets we have social safety nets that provide low-income housing and if you are at the lowest of the low end can't even afford that there are shelters in every city across america that will pay for, lot of charities take care of people as well. charles: fdr had a four freedoms, three middle lot of

sense, freedom of worship, freedom -- but the freedom from want was one that always stood out to me because the idea that somehow the government should take care of any of my wants, so housing, food, shelter, health care, that i should be borne and the government is doing all of this stuff for me and i could go through life theoretically without ever having to lift a finger or myself. you never become a great country when everyone is sitting around never lifting a finger to do anything for themselves. stuart: what about europe which shows you cannot afford to do this? i am a european born and raised in britain and over there they are going broke, not specifically britain but continental europe are going broke because they do provide this extraordinary social net to absolutely everybody all come series get it and now they're broken. >> it is the inclusion of socialism, even borderline

communism and cradle to grave security charles was talking about you are seeing sovereign debt crises across the continent because of this. in america we had a different system. individual liberty and economic freedom and the market does take care. we have a base line. stuart: europe offers the freedom from. there is the huge difference. miss lee is probably on the side of the europeans. wants the freedom from whereas in america personally i think i want the freedom -- charles: your point not only is your of going broke economically but they're going broke and a lot of other ways. educationalwise. look where greece stands or portugal they're not equipped to compete in a global economy. look at innovation, creating new wealth and prosperity, all their wealth has been chipped away, no way to bring the continent up to be competitive.

the next 100 years will be a battle between asia and america and we will barely be in the fight. europe will be a welfare state that can remember the glory days. stuart: they are really imploding. take a look at this letter, a letter writttn by president lincoln to general george mcclellan. nine days before lincoln fired the general during the civil war. this piece of history is for sale. how much do you think it will be worth? we will let you take a look at it right here.

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fidelity investments, and low fees and commissions are another reason serious vestors are choosing fidelity. now get 200 free trades when you open an account. stuart: the share price of smith and wesson jumped after the company reported it expects higher sales this quarter and also announced on $100 million stock buyback program, stock is up 5%. new tree system announced it will jump start weight-loss kits, nearly 4,000 walmart stars by the end of the month. new for system is up 4%. you know what we did? we put game stop on death watch a couple weeks ago. look at it now, way off, nearly 4%. we will not do this again. to support a miami heat game 4 of the nba finals beating the san antonio spurs 109-93, the series even tied at 2 lucky's.

they will face of again sunday night. and letters from lincoln and edgar allan poe up for sales. we will have them. we will tell you the expected price. you will be surprised at this. ep like it has for soclone camany people before. ep do notwhen taking lunesta, are allergic to anything in it. don't drive or operate machinery until you feel fully awake. walking, eating, driving or gaging in other activities while asleep without remembering it the next day have been reported. lunesta should not be taken togeth with alcohol. abnormal behaviors may include aggrsiveness, agitation, halin depressed patients,. worsening of dression, including risk of icide, may occur. alcohol y increase these risks. allergic reactions sucas tongue or throat swelling occside effects may incluatal. unpleasant taste, headache, dizziness and morning drowsiness ask your doctoif lunesta is right for you.

then find out how to get lunesta for as low as $15 at lunesta.com there's a land of restfusleep, we can help you go there, on the wings of lunesta. 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 w led well into their0s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much ishe official retirement a. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ stuart: charles payne recommended restoration hardware. it is way up, hit a new high today. nicole: look at restoration

hardware, stock is up 17%, charles payne does make some great picks. they came out with quarterly numbers, first quarter losses, they had strong growth and also hired someone from williams sonoma, the executive richard harvey, chief merchandising officer of newkitchen and cable wear segment. california company. stuart: we would give a shout out to charles had he not recommended that stock on a different fox business show and didn't do it on our show. we are on the same team. restoration hardware uses would from my lumbar. conflict of interest here, great stuff. this segment we are about to bring you is alled old money. we have two, nineteenth century classic letters for you today. joining us is patrick from christie's. the letter i am most interested

in is the letter from president lincoln to general mcclellan and he wrote this letter and signed in his own hands. >> entirely in his own hand. stuart: nine days before he fired mcclellan. >> he is at the end of his rope with mcclellan five weeks pull for the battle of antietam he had done essentially nothing. he had been badgering lincoln for reinforcements and sent a letter saying we need more horses, lincoln had a famous reply what may i ask have your horses done that could have fatigue anything? stuart: we have shown our audience the letter. now i want to quote from it so you know what this letter is saying. here is lincoln savings and now i asked a distinct answer to the question, is it your purpose not to go into action? sounds pretty angry. >> mcclellan earlier that they send another request for reinforcements and lincoln had it with that. fired him nine days later. stuart: let's get right at it.

is this letter worth how much? >> pretty thousand dollars to $50,000. we expect to go over that. stuart: before we pass judgment on that price which i think is rather low but before we do that move on to the second letter. >> this is from edgar allan poe. very exciting edgar allan poe better renew the discovered which is a great trees when he come across a letter no one knows about. i almost fell out of my chair when i saw this. it is a matter to the editor who published the telltale heart, of his most famous stories. there's another interesting wrinkle, uses his fourth name edgar allan poe. usually would sign edgar a. poe, that matters to collectors. the sheer reference to the story is magic. stuart: i will quote from that letter. the tale in question is entitled to the telltale -- is entitled

to the telltale heart. might apply obeyed of you the favor -- what is that all about? >> this is his first interaction with this editor, begging him to publish the manuscript. he had offered it to another editor who sat on it and gave him no reply and he was fed up with the delay and the first editor ultimately rejected the story. stuart: better handwriting than clinton. this is a financial program so right at it, how much do you expect the edgar allan poe petter to go for? >> $40,000 to $60,000 but we expect to go over that estimate. stuart: wait a second. the lincoln letter to mcclellan right before he fires the dime, really fired up, president lincoln, the great president lincoln, 30,000 to $50,000, edgar allan poe to many people an obscure novelist supported a $60,000.

why is that worth more? >> a simple matter of supply and demand. edgar allan poe letters are rarer than lincoln letters. a surprising thing people learn presidential letters generally on are rare. a wide range for lincoln letters where you can buy one as cheap as $3,000 or pay $3 million, it depends on the content. stuart: which lincoln letter would be worth $3 million? >> this one that we sold on february 12th, 2009, the date of lincoln's bicentennial we sold the four page handwritten speech many script that he delivered from the balcooy of the white house the night he won reelection 1864. we sold that for $3.4 million. stuart: what about the gettysburg address? didn't that right is out in his own hand? >> yes at the road for charity purposes souvenir versions, and auction during the war to raise funds for wounded shoulders. stuart: would that be worth

millions of dollars? >> the original plans are in the national archives library of congress and earth unfolds millions. stuart: no 0 original of the gettysburg address appears on the market, not original. >> you know who made the bid on this is bill o'reilly, he is a famous corrector of french at -- presidential writings and had quite the election. >> he knows where to find it. stuart: when is the auction? >> a week from today, 10:00 sharp. take off from work and come to the auction. stuart: nice try. excellent. we appreciate it. thanks for joining us. the obama administration approve the military aid to syrian rebels, your money will be going overseas but exactly to which rebels and whose side are these rebels on any way? gls, appetit. gls, appetit. you can't sa 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core.

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stuart: your money is at stake. the obama administration approved aid for syrian rebels. charles: on the eve of helping in libya, and turn a blind eye to the united states is different, we will not -- the death count at 93,000 in syria

and it is still a quandary. it may be the muslim brotherhood, in syria, hezbollah and iran. feels like we're in a no-win position, but a bunch of hypocrisy and massive civil war and slaughter. stuart: the american people don't want to get involved in this but when a man uses chemical weapons bombs of 150 people, the pressure to do something about this becomes almost overwhelming. charles: more difficult by dragging his feet. stuart: turn a bit more self industrials, don't worry.he dow charles: the market is infiltrating range. and until we have ben bernanke. stuart: what do you want to do?

charles: more strength than weakness these days. stuart: from, a great american tradition, my daughter attended turner's last night and now "varney and company" viewers are shunning in. we will deal with it next. avg t. [ babies crying ] surise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] hoabout no more surprises? now you can get all the online trading tools u need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td amitrade

stuart: it is a post- prom highlight reel. i think the prom is a rate american tradition. >> they stayed overnight at your house where you could keep an eye on them. >> stuart, have you ever been to prom? stuart: our twitter feed is lighting up. this is what molly says, your

daughter is gorgeous. kathy says, you are so cool, sir. thank you very much, kathy did i appreciate that. charles: i thought it was a brilliant move to bring them all back to the house after that. stuart: do not spend a lot of money on prop. it just is not right. charles: another one of those events where people say i want to live it up. i want to be like the people i see on tv for one night. stuart: that is why you spent $10,000 on your son's suit. charles: it did not cost

$10,000. my wife was upset about the product shoes, though. he looked pretty good. he really made the transition pretty quick. stuart: the kid is growing up. i am afraid that the dow is slipping even more. can we get any financial advice from your son? charles: be able to hit up your dad. you are good to go. great friday. great show. connell, it is all yours. connell: happy father's day to both of you. thank you. what washington should do about the sequester cuts.

then, here is a new way to shop for a house. courtesy of drones. one of teddy roosevelt's great achievements, china is looking to top the panama canal. that social security card that are also familiar with, it soon could be lost to technology. those stories and more coming up. ♪ dagen: good day to you. connell: good day to you, too. dagen: christine lagarde is speaking right now. the imf is reporting that the nature has