♪ >> imus in the morning♪ >> good morning, "varney & company" viewers. today is july 3rd, the day before independence day and we have some major headlines for you today. first, could the obama administration be admitting faults in the president's health care law? the white house delaying a key provision in obama care that would have provided employers provide health insurance for the workers. another day, another hit for the president. and overseas, a violent protest

in egypt. 16 killed overnight. the deadline for president morsi looming. the initial result is oil is over $100 a barrel, but could civil war be next? the markets could be a rollercoaster and big jobs reports. and the new normal, we're going to get the government's report on friday, hold on, everyone, "varney & company" is about to begin.

>> another hit to obama care. the treasury department says that businesses with 50 or more employees can wait until 2015 until they must provide workers with health insurance. is the administration finally realizing this is a problem? >> yeah, here is the problem. there's such huge issues that the white house just decided. and listen, the individual mandate tax kicks in january 1 and people have less affordable

care from companies. that's a problem. and the other big problem, too, is now the companies can dump their own workers on to the state exchanges, right? because now they have the one year grace period to do that. if he this tried doing that before, before the grace period kicked in, they would have been hit with a penalty. >> the employer mandate delayed, but not the individual mandate, which as far as we know as of right now remains in place. you have democrats who actually wrote this monstrosity. max baucus, and jay rockefeller and have been saying this is a train wreck and so complex as to be incomprehensible, rockefeller's words. so you've got democrats now starting to run away with it and the reason they put the 2015 date on it, politically this is incredibly toxic. >> for the mid term elections. >> for 2014 and delaying it one more, at least one more time, to get them through the elections because they know that the democrats now are going to be saddled with this going into next year.

charles: absolutely. and the point you made about individuals is really very, very important. everyone watching, you don't get insurance, you're going to be dinged no matter what. it's the day before america's birthday and we have a lot of things moving the markets this morning. stocks like like they're going to open lower after a huge u-turn yesterday. the street combing through lots of data after the big jobs number on friday and watching the situation in europe -- in egypt, rather, and president morsi standing up to the military. and protesters. with the spark cash card from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card

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♪ >> waiting in vain, bob marley. and the new normal for friday, the concensus is only about 160,000 jobs were created last month. not big news. not great news. we're about a minute away right now from the opening bell. joining the company from chicago is larry levin and we have all kinds of headlines moving the markets from portugal to egypt and the feds are waiting on the jobs report friday. help us out, give us a pecking order of importance here. >> sure, i think the jobs report on friday is going to be the biggest they think to go forward, right?

to see the situation, the portugal situation is not good and pictures out of egypt are disheartening. with that situation being the case the jobs reportthas to be the number one thing, that's going forward and the economy needs to get the stock market going and get the tapering out of the way and get the economy where it needs to go, that's the way i'm looking at it. >> we hear the opening bell and there's ruckus in the market now. and it's opening down 10 or 12 points and real quick, larry, we can't separate jobs from the fed, right? there's a transition between the federal reserve pumping in all of this liquidity, if you will, and the american economy eventually doing the work on its own? >> yeah, definitely. i mean, traders down here are concerned about that because the fed has tipped its hand and talked about the tapering and they hadn't done that before and the traders knew they could be long for an awful long time and they have been and now we've got a situation where it's not that way. when is the fed going to start

pulling back and happening. and that's going to give the markets a hit and traders are afraid to be long because of that. it makes it exciting here and i'm sure your viewers like it and the markets are moving around, but cuts are dangerous, too, with that being said. you don't separate them. it's going to give the market a hit and once that happens, then we'll see where this plays out. >> thanks a lot. have a happy 4th, appreciate it. i want to check on the big board, we're down, let's call it 50 points. yesterday we were up big and reversal to the down side and that's the volatility that larry was talking about. and one stock that was steady was apple and we want to find out. apple is above $400 a share. >> yeah, let's take a look and a stock that hasn't had a great year to 420.98 and we've heard about the iphone watch and other things pertaining to apple and some good analyst calls. one earlier in the week from

raymond james, 600 bucks, this is up 1/2 of 1%. >> that's weird and not so long ago we were talking a thousand dollars for apple and now 600 could be a big bold call. michael dell might lose his company. there's a race for a bid and carl icahn is getting more and more commitments and more people are backing his bid to take over the company. and j.p. morgan have downgraded alcoa, aa there the symbol. there's got to be aluminum deeand for our economy. and especially everyone here on the set i would suppose, avon sold their jewelry business, 85 billion, years after baying it for 650 million. they want to focus on the core products.

nicole. nicole: which way do you think the stock is down 1 1/4%, right? you bought something for over $600 million and sold it for 85 million and that stinks. they're going to focus on the co-business and the turn around. we'll focus on that. charles: for a stock that was in bad shape, this is on the-- golly, talk about a bad move. thanks, nicole. we want to bring in our man keith fitzgerald from portland, oregon. the more i look at the global economy, the more it looks like a slow moving giant train wreck. it's portugal, the middle east, and obama care, unravelling, creates their own headaches and creates the headlines. which are the most important. which ones are going to ultimately dictate where the market goes? >> you know, charles, that's a full plate because there is a lot to be concerned about.

to me, what it comes down to, two primary inputs. how good or bad is the economy, that's the jobs number and directly relates to the fed and the middle east. what's going on there is critical not only for democracy on the planet, but the oil pipelin pipelin pipelines. charles: you know, you used the word good, is that the new good? the markets are accustomed to celebrating mediocrity, but good? >> celebrating mediocrity, i'll have to remember that phrase, that's good. it's good enough that i'll take it. what that means we're actually creating value in the economic chain despite the best efforts. the way i figure, this is a train wreck and ultimately will end badly, but in the meantime we need to concentrate on what

makes this country strong and that's job creation because it puts wealth in the pockets of people who need it most. charles: but the transition to a real strong economy that can justify higher stock prices, and the fed pumping in the money, that transition period could be rocky for investors. >> not just could be, i think it will be. the key right now is to maintain a steady perspective to stay on your game. don't let the street low you around. because if you're focused on income, safety or whatever it is individually as an investor that's important to you, stay on that track, a lot of this you'll see is noise. particularly in the next 48 hours, they'll have a field day because they know we won't be able to mount a defense. friday will be volatile and then we'll get down to business again. speaking of the straight. you like things that are beaten down and contrarian. >> i do, as a matter of fact, i like energy pipelines and there's high income. if you're an income oriented

investor. you could pull off dividend, 5, 6, 7%, to me that's a good student irrespective of what the economy is. muneies is another one. conventional wisdom says, it's terrible and they'll be shellacked. 11, 12, 13% under net asset value particularly with regard to the funds and kicking 0 of a decent income. if you've got the right perspective that could be more attractive than the price. >> conventional which is come was a coined phrase to diss the public. i like those that are bothen down as well. have a great 4th and we appreciate it. >> and let's check on the price of oil, a barrel of crude, look at this, guys. 101.53, obviously related to rising tensions in the middle east and of course, last night we saw 16 dead overnight protesters in egypt. and the military now really, the state-run tv station,

morsi's long interview, not interview with you really, the guy was just on tv more or less saying i'm not going anywhere. protesters though, they're down there and we could see a lot more bloodshed. and of course, there's the idea of the muslim brotherhood, terrorism, even perhaps civil war. we will be in a few minutes joined by john bolten former ambassador to the united nations, what could the outcome be? obviously, there are a lot of choices here and he'll boil them down for us. and more fallout from the report that the united states was spying on members of the european union, believe it or not, france is upset. they're not requesting that free trade talks between the its and eub, and for two weeks, the talks were set to begin in washington on monday. back to the biggest hits, the obama care, the administration delaying a key provision until 2015. and let's call it a monstrosity. you've brought fantastic points

and we should talk about them more. e-mack, businesses put pressure on the white house with regard to this and it's-- it was more detrimental to small businesses. >> that's right, small businesses, they were facing 1.6 million in job losses, that's the-- >> 1.6 million? >> from, with obama care. and they have to prove to the irs they're giving affordable coverage to the workers. if they weren't, irs would say, listen, you have a pay a tax, the penalty back to the government. if you're not getting affordable coverage. now they have a grace period. they can now put their workers on the state exchanges. if they didn't, prior to that they would be hit with a penalty, if they tried to put the workers onto the state exchanges and that means taxpayer costs explode. charles: and by the way, also built into the equation how to pay for this thing, the government would take a lot of money from the small businesses in the form of penalties.

$2,000 per employee. >> the paper work to prove that you're giving affordable coverage to your workers. the problem now, we've talked about this, the individual mandate kicks in january 1. so, if that work doesn't have affordable coverage from their job, they're going to go to the state exchanges. again, taxpayer costs explode. >> and a couple of things on this, first of all, with the individual mandate assuming that's-- and that they don't try it delay this, as of january 1 we're going to as individuals prove to the irs that we've got government sanctioned-- >> the army of irs agents. there's going to be a giant army of irs agents coming to your door soon. and the seven early movers, i struggled on this. national speedway reported the numbers and beat the street by a penny and a lot of terms abandoned this stock. and van corps, buy from neutral and stocks are a the 52-week

high and some regional bank, scions. from the don't bury me yet. new york times, from sell to neutral. up almost 100% and insiders ha have-- >> and everyone loves this store, goldman sachs which resumed coverage. best buy. and nokia, they were trading at 55, and now they're up a nickel. and this stock is it up just slightly, chesapeake energy. and this stock is in the rumor mills to take over, arm holdings. and we've got 16 dead as morsi supporters clash in cairo. and the president of the

state-run tv station, morsi says he will not back down. this is dangerous stuff. we've got the man for you, ambassador john bolten. that's next. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart tt, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my count follow me onne so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

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>> all right. guys, let's check on the big board. the dow is coming back a little bit. remember, the adp report, not a according to keith fitzgerald in the new world of new normal, 180,000 pretty good. time for your morning gold report. and since that monday point where it was collapsing, the deflection is held to 1248. and new reports out of egypt. the military has taken over the

state-run television. make no mistake, time is running out for mohamed morsi, a deadline for the ultimatum that the military gave him nears. let's bring in fox news contributing, ambassador john bolten. how do you see this playing out? >> i don't think that anybody can predict with accuracy. i don't think that the military's ultimatum was aimed at morsi. i think it was aimed at the demonstrators to get stability on the streets and all of this has a terribly detrimental effect on the egyptian economy and morsi has made it clear that he's not going to go easily. the military is in a very difficult position here, i think we're on a nice edge today. we've seen some violence already in the past 24 hours, but it could get a lot worse. charles: right. the muslim brotherhood, morsi's partners in the muslim brotherhood, they incubated

while mubarak was in charge and they finally get a taste of power. how likely is it that they'll give it up? won't they make a do or die, life or death stands right now? >> well, i don't think they're going to go away easily. there's a real irony in this whole debate. mohamed morsi was elected in what international observers called a free and fair election, he only got 52% of the vote, but in parliamentary election, the muslim brotherhood and extreme islamists got between two and three quarters. and if the military steps in, i think that's going to inflame the muslim brotherhood. a fine irony, supposedly pro democratic forces are now relying on the military, but they're worried if they don't stop the muslim brotherhood here, they will go on and will have sharia law and the stakes are high and the military is divided and why there's a real

risk of chaos. charles: where does that put america? we have to be in a precarious situation, we promote democracy, but when the outcomes aren't what we want, what do we do? >> the issue is what's best for american national interest? and pursuing extractions i can liao democracy, as i said in a situation where it's hard to find out who the real democrats, real democrats are, i think our interest is in a stable egypt that maintains its international obligations. the camp david accords with israel, keeping the suez canal open and i think it puts us largely on the side of the military and better be on our side given the billions in aid we've given over the years and with chunks of the opposition, coptic christians, fearing what would happen if the brotherhood got its way. charles: it seems like what you described is what they had

before they overthrew that and it's hard for me to imagine that going back to that. stay on your toes, we're going to need you in the next couple of days, thanks a lot. >> thank you. charles: how many forms do you have to fill out when you go to the doctor? howwabout more than 600? that's how many forms our nation's veterans are faces when they need medical care. that's next.

>> hey, i've got a story for you honoring our veterans on independence day. a new study by the american action forum shows that veterans must fill out over 600 forms in order to get medical care. if that's not bad enough. it takes federal employees over 43 million hours to process. liz, this is outrageously mind-boggling. >> so mind-boggling, there are so many diffeeent new outfits now, it's like a cottage industry. just to help veterans through the process to get their benefits. and 613 forms across 18 agencies. that's a lot of paper work, plus, a lot of federal workers have to deal with the paper

work and 43 million that taxpayers are spending for. >> this is so outrageous, i don't know where to begin, i'm spitting mad at this. our veterans have put their lives on the line so that we could have our liberty and freedom and celebrate our independence tomorrow. they should be-- they should have one simple piece of paper that says name, rank and serial number, you're good to go, go to the doctor. charles: that's what it's all about. >> and 78% of the claims are basically lasting, 125 days or more, so the veterans are waiting to get the berths -- benefitting and there's a flurry of claims they haven't seen before. >> this government spends so much money on so much crap and talk about the wasteful spending, and gang tattoo removal and one thing i don't mind paying for and working for my tax dollars to go to is our military and veterans.

these guys should be put on the fast track for medical care, this is beyond outrageous. charles: it is beyond outrageous and of course, a huge amount of depression amongst our soldiers returning from these wars. this can't help. you sit around and i've filled out this paper and that paper and that paper and feeling a form of rejection from the government i just went and served. >> there's a very high suicide rate among our military, too, and like you said. this process can't help. how about directing some money to stream lining the process and some people to health issues. >> thank you, guys. we' we're-- another hit on obama care, and for the private sector. and egypt's president morsi, how much power does he and the muslim brotherhood have and when they balked, the countries leaders giving up and that country's market taking a huge hit in portugal. that's it and more in the next

hour.

>> welcome to the second hour, and i'm charles payne, and for better or worse, obamacare was supposed to change america, but now obamacare's changes a big provision until 2012, -- 20 # 15, and for now it looks like a victory for small businesses. morsi not backing down. on monday, the military gave morsi 48 hours to accommodate with the power sharing agreement

or be ousted leaving him less than a couple hours to meet the military's demand. another lesson from the losers of europe. forget austerity. they are giving up. the as a result, interest rates are spiking, and more could happen to us from across the pond. ♪ now with the administration's decision to delay obamacare, it could be a small victory for small businesses. we'll find out now. joining us, the national federation of independent businesses, and, bill, say something of a victory lap on this because your organization, you guys pushed hard for this. >> we did, and, in fact, took it to the supreme court to fix it there, but didn't make it. here we are now, and, you know, it's not surprise what's going on. look at the big picture here,

what you had was a couple hundred people with little or no business experience, private sector experience decide to restructure 15% of gdp. what did you expect other than a disaster? that's what we have on our hands. >> that disaster does not go away, but pushed off. when i hear them say we listened to businesses. in my mind, if they listened, they'd scrap the whole thing. >> well, that's right. they listened to a few businesses. there are the favored people with exceptions and get the special deals, and so and so were listened to, and they are also listening to the political advisers saying to them, you know, this is going to be a mess and you don't need that going into the 2014 elections. put it off. don't worry about the law of the land, you, mr. president, can just say, oh, well, we just won't have it go in effect after all. executive power there. a lot of bad things happening down there. >> liz had a point earlier about

businesses using the window of opportunity to sort of more or less dump employees on state exchanges and just never having to face this at all. is that the real solution or businesses -- what do you think businesses do? >> well, that can happen, but half the state don't have exchanges, and those that do are not working well. it's hard to dump them there because there's no place for them to go, so that's going to be an issue. of course, we didn't really change the requirement for firms under 50, whatever the shape of that will be. they don't face the 2,000 per person fine, but somehow between them and their employees who are -- the employees, individuals, are main dated to get insurance, that all stuff stays in place, and so, you know, the workers have to work it out with their bosses and say, well, you know, give my insurance that is so expensive the take home pay is nothing because i pay for insurance now, a lot of issues now, and it

will, as you suggest, lead to a change in the structure of employment using fewer workers, full-time workers, more part-time workers, do the things that respond to the insentives in the law which is, you know, going to try to minimize our costs even though it's not good for employment. >> all right, bill, i'll tell you, the fight from your end is not over. certainly, you want to see it scrapped, but, again, tipping our hat to you, you were the first guy i thought of last night. appreciate the time this morning. >> all right, charles, good to see you. >> see you. the nonmanufacturing numbers came in at 52.2, lower than expected. mortgage rates falling down to 429. avon shares, nicole, down? >>ave a deal for you, charles and everybody at home. i'll sell you something for over $600 million, and then you sell

it for less than a hundred million. i mean, that's what's happened here with avon. why do you think the stock is to the downside? they lost big time. they sold the jewelry business trying to stay focus on the beauty business, the core business, but three years ago, they paid $650 million, and now they sold it for 85. >> well, that's the nature of business. they get out on the better end of the deal, but in this case, it's obvious who was on the worst end. >> cut losses, i guess; right? >> i guess. ugly, ugly stuff. thanks a lot. we want to bring in our favorite recovering european to talk about -- starting off with portugal first. they elected a conservative government, and the guy came in, and i remember, real austerity stuff, lower input, taxes on businesses to hire people and invest or raise obligations of regular people just a bit for the own social security and things like that, and then everyone balked. that was a year ago. it's gotten worse. now the cabinet's quitting.

it's just a pure mess. >> it is, but one of the things we tend to forget that port golfs a mess before the crisis hit with negative growth. >> that's the point. all places were a mess; right? they embraced the socialist, social welfare states, and the idea is that, okay, some of them said we'll elect someone who is more conservative, spain did that, port goal did that, and the citizens are used to the handouts that they still are not willing to do what it takes to get the right to shift. >> the ning we forget about, it's a poor country. i mean, countries like france, spain, italy, you're right, they are a mess. they are a total mess, but they are actually rich countries. i mean, portugal has agriculture, tourism, vacation homes. its manufacturing is obsolete because of china, and that's pretty much it. there's a pile of debt. >> you reported on this and monica and charles mentioned

this, when you see the bond yield spying higher happen 10%, the bonds are out, going after port goal, is there a spillover effect in other markets? i'm not talking the club med markets or southern europe. any other region in europe, what do you think? >> yes, they're going to be a spillover, but the question is how do they exit? do they exit entirely and formally from the eurozone and expect they will be consequences or do a cypress-type exit existing with some capital control and they will not trade as hard, but pretend they are still in the euro? i mean, it's very hard to predict, but one of the things that's sure is that it's not going to end well for portugal. it's not going to. they have no way to repay the debts. the other thing you have to think about is they won't be getting any help from the european dip mats. >> even the richest countries in

the world have limits, and i think this is a lesson for americans watching the show. talk about sprain, france, the other countries, that at some point that mentality, living off somebody else's dime, you run out of other people's money, and you crack hitting a brick wall. that happens to all countries no matter how big they are right now. >> no, i totally agree, and i think there's a living making that point in saying it needs to stop. obviously, they fall faster because they are not a rich country. it's going to take longer, but it's inevitable. >> i have the wrap signal, but do you think the people there have to suffer the worst consequences before they have the epiphany or before? >> i hope it happens before, but it's hard to predict. i mean, they seem to be stubbornly, and not just portugal, committed to the way of living. which is unsustainable. >> a great way of living chilling out at home and getting a check to come to you. overstock.com taking a hit

today. what are the shares? >> your favorite because of the stock or shopping on overstock? >> i did like the stock until this morning. [laughter] >> all right. well, i'll tell you this morning, bank of america, merrill lynch cut it, downgraded it, it used to be a buy. it's con down to under perform. they are worried about inconsistent growth, lack of customer growth and potential over e evaluation. of the stock. >> ouch, thanks nicole. adp, private sector added 188,000 private jobs and 143,000 people filed for jobless claims for the first time, and all eyes on friday, the next guest says why we should ignore the jobs report. joining the company is chris, editor, founder of capital in crisis. chris, everyone is waiting with anticipation on the economic

data, and you say, oh, terrorist not a big deal. >> yeah, from the standpoint of the investor, i couldn't care less what the jobs report is. better than expected or worse than expected, it doesn't companing what i -- change what i do one bit. too many people spend too much time talking about the ream of economic data that come in and less time figuring out where they should be putting attention which is what they own and what they are buying. >> i guess because, ultimately, when you connect the dots, you say, okay, the more people with jobs, the better the economy, the better the stocks do, but there's something wrong with that. >> there is, and, you know, it's funny, fox was kind of trying to get me today, talking about this today, and, you know, everyday people get this. the economy in the stock market are different things. the stock market's more than doweled since the 2009 bottom, but has the economy doubled? is the economy as good as the stock market indicates it's not? most say no. that's why i think that you

don't put all focus on a ream of economic data. i'm more from the peter lynch school. 13 minutes spent on macro is ten minutes wasted. >> you are opportunity and looking for things to buy; right? >> absolutely. i have a definite bearish stance, spectacle of the whole money printing exercise that they are undertaking to keep rates low and to prop up the stock market, and i think, u.ly, that ends badly, but at the same time, there are areas of the market that are undervalued with interesting opportunities. you can't completely -- you have to do something with the cash; right? you can't leave it in a bank account earning nothing. there are opportunities out there. >> well, i mean, you teased us here. help us out. take us to the next step. not necessarily how to come up with it, but what are opportunities so people watching get an understanding.

>> well, i'd say the last couple years, one of the areas that i focused on is 4r50bging at the financials, looking at bank stocks and insurance stocks. >> woah, woah, woah, hold on, bank stocks, are you serious? the big base with the o pec accounting, we don't know what's going on, and isn't that the reason the fed prints money in the first place? >> not the big banks, they are black boxes. who knows what they are in, but there's thousands of banks in the u.s., and there's a lot of smaller banks that got through the financial crisis without any problem, local institutions have a lot of capital, and no loan problems, and the stocks have -- have come down. this is what i tell people. when you look at bank stock, it's a long way up and down and looking to price to book ratio is the key thing. at the top in 2007, banks went for two or three times booked, and now it's not hard to find

banks trading at book or below book. find the cyclical rebound. they sometimes trade for two times book. i don't know when, but they will. accumulate stocks now, and when we get to the point, cash out. >> i got to tell you, chris, interesting perspective on things. it's refreshing. i enjoy it. i agree with you. i like regional banks as well. stay away from the big boys even though they get the benefits of the taxpayer dollars. thanks, chris, see you soon. >> thanks a lot. >> no matter what you think of friday's job report, can the obama administration do anything about it, or has the president lost all swagger? the former labor secretary is joining us right after this.

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madam chow, we talk about this all the time, and we saw where the obama administration sort of blinked if you will with respect to obamacare. does that give you any sort of hope that maybe, maybe, just maybe, they can make changes to the way they approach the overall economy, and if so, what would they to help get jobs up? >> today's report that the administration is pulling back on rolling out as planned, its affordable health care agent indicates how they realize the regulatory burden they place on the american economy and how difficult it is to have to implement the law and whether to implement it at all. the best is to resend and repeal, which they won't do, of course, you -- but the regulatory confusion and uncertainty of this legislation and many others is creating a tremendous amount of burden on the economy which is impeding

jobs growth. >> yeah, liz here. we are looking at a b jobs reports -- a jobs number, possibly 169,000, the average for the last year month-to-month, give or take a few thousand depending revisions. how much do you think job growth has been hurt sins health reform act was enacted in 2010? >> it's not only the affordable health care act. it's all the other regulations and lawed patched like dodd-frank which is through the banking system with the small community banks. it's important that the government provides the right environment through which businesses who are employers who are very often small mom and pop shops to have certainty and know what faces them in terms of taxation, regulations, as they look to the future because of the uncertainty and know what's coming down the pike. small mom and pop shops are not

hiring. 165,000 net new jobs created every month is not enough. we need 250,000 net new jobs created every month just to keep even with population growth. >> so then, let's carry that forward. nothing changes, the same policies remain in place, business remains frozen, if you will, what happens to the economy? we're not growing the jobs you say we need to keep us sustainable, what happens to the economy? when does it roll back? >> well, the economy is struggling to recover. you know, there's cycles, so it's stress. the economy is struggling to recover, but what's happening is the administration's very policies are actually impeding the recovery of the economy. you know, generally we have a sharp recession as seen in 2008. the economy bounces back really quickly. we are not seeing that. the reason for this slow rebound is because of the uncertainty of

the economy, the new laws and new taxes that have been implemented, and the great uncertainty, again, of what happens to affordable health care act, regulations, you know, how are they implemented, if at all. employers are in a hold pattern. they don't know what to do. they have cash rereceivers because they don't know how much taxes to face and they don't know about insurance programs they are faced with and how to take care of employees. >> a dark cloud of confusion. >> monica crowley here. reagan limited government, cut taxes, rolled back the massive regulatory state, and that's why month-to-month, we had between 500,000 and a million new jobs created. this is the exact opposite. didn't we learn from reagan or is president obama's ideological and will not go down that road? >> well, unfortunately, this is

a government. this is an administration that really does believe the government is the fount of all solutions, and so they believe in big government and believe that government actually creates jobs. when we have two-thirds of net new jobs created in the economy are created by small bidses, and the uncertainty, increased taxes and regulations are putting a damper on their future plans, and that's why employers are not hiring. >> and it just seems so, you know, it's tough. i mean, we've talked about this all the time, and we know the world we live in, and, yet, it's not sustainable. there's no way in the world in the most amazing engine of prosperity ever created on the planet should be left in this condition, and it seems like if we don't at some point do something to make it better to keep it going, it's going to fall in on itself. it feels like it's going to get worse. >> the human toll is tragic. you know, about 40% of the unemployed have now been unemployed for more than 26 weeks.

our unemployment rate dropped a bit to 7.6 remembering that from 2001-2008 the average unemployment rate was 5.2%. even so, the unemployment rate dropped a little bit primarily because of the number of discouraged workers who are still outside of the work force. if you add in people who are unemployed who are employed who want to work additional jobs you can't find full-time jobs, include that whole universe of potential workers, the actual unemployment rate in the economy is worse, it's more like 14%. >> there's no doubt that's around -- >> it's tragic. >> that's a 14% human toll of the permanent new under class of formally proud american workers who can't find a job, all a tragedy. secretary chow, thank you very much. appreciate the time this morning. >> thank you. >> well, the obama administration delays the key provision of obamacare, so could this be the beginning of the end for the president's crowning achievement?

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>> checking the big board. have you seen that? all zeros across the board, but we've been open for an hour. by the way, negative all morning, and right now, taking 53 to the upside.

alcoa takes anything. the stock getting hit again; right, nicole? >> just make a stock prediction, i'll hold you to. no, okay, alcoa, the biggest loser in the industrial average today, the maker down 2%. jpmorgan cut it from a neutral to an overweight today, and really it pertains to aluminum prices, and while there is still demand for aluminum, the problem is that there's way too much supply and you know what happens with too much supply, prices go down, that's why they made the call. back to you. >> yeah, i know. there was a lot of demand by american industry would be good news anyway, not a good story. thanks a lot, nicole. hey, now back to obamacare. with the administration delaying the health care employment mandate for a year, could that signal it's ready to unravel? all rise, the judge is here, and is it too early to chill champaigne on this thing? >> it probably is, but what's

striking to this from my perspective, a person who monitors the government from the point of view of the constitution. it's almost unheard of for the congress to give the president power to stop the enforcement of a statute. >> did they give him that power? >> yes, it's in the statute. he's not exercising extralegal authority. the statute lets him decide and delay when it kicks in. this is a political decision made by the president, and, frankly, i don't blame him for making the decision because it is a monstrosity. it's a train wreck. not my words, but one of the democrats, senator max baucus, but it's highly unusual for congress to give the president that kind of -- >> although, they knew guys, right, how bad it was? you needed a glass box in case of an emergency break? maybe they were smart enough to see an out here. >> does it explode on the launch pad? the media's out in forest. "time," "l.a. times, "new york

times," and not just baucus saying it's a train wreck saying lower level workers see costs rise, and the thing is the little guy says, okay, we see the big guys, big companies, restaurants, retailers get a break here, but what about us with the mandate january 1? >> a terrific point. the government will not delay the individual mandate, and the frustration that the institution of the individual mandate visits on americans, the frustration of some people exempt and others exempt was all predictable, but i'm saddened because i don't think any of this is enough to change the minds of democrats so that we can get rid of the monstrosity. some never have to seek reelection again. the democrat in chief never has to seek reelection again. he almost doesn't care. if we knew four years ago what we now know, i don't think this would have passed. >> on this point, you know, we see record numbers of people now opposed to this bill. it's always been highly unpopular, but fox news released the poll last week showing a

record number of 58% of the american people want it repeal in its entirety or in part. it's a golden political opportunity for the g.o.p.. push repeal. obviously, the president's not going to sign repeal, but keep voting for repeal and at the very least in the debt ceiling debate, move to defund it. if you can defund this thing, you eliminate so many issues. >> i think that certain u.s. senators running for reelection and certain members of the house running for reelection in 2014 will besorely tempted to vote in favor of repeals even if it's a paper vote that doesn't change the outcome. they want to go back home and say i made a mistake to undo it. we didn't have the votes. >> yeah, well, you know -- >> that's the way the game works. you know this as well as anybody. >> the blue dog democrats, 85% lost their seats in the 2010 election because they voted for this monstrosity. >> that's absolutely right and the other things too. >> this frustrates people like

your clients, people who have to make a decision about how to spend dollars for their employees. this must really frustrate them. what is the law? how can they suddenly change the law radically by the year? what are our obligations? what do we have to pay for? what do we plan for in advance? >> you can build a monument of frustration. they want prosperity. that's the bottom line, but there's a difference going on; right? there's a malaise, and i want to segue to the same thing, though. there's app article coming out tomorrow talking about the real spirit of america, and it reminds me of the famous interview with jimmy carter, playboy magazine talking about america being in the malaise. it peoples like than. a malaise for human freedom. the article is called "jefferson weeping" talking about how the country of was founded not government deciding how much freedom to have, but us deciding

how much power the government should have. the government can read our e-mails, techs, listen to our phone calls, police can force you to open your mouth to swab your mouth on basis of arrest. >> here's the sad thing. >> this is bad stuff. >> it's changed, judge without military force. we gave it away. didn't we give it away as people? >> because we are lax in vigilance and because the government scared people into believing that by giving up liberties it keeps us safe. guess what, liberties don't come back, and we are not safe. >> you know what, we thought we'd give up freedoms, and in return, we're a less filledded life. >> that's called socialism or communism, the promise of cradle to grave security which only produces poverty and misery. >> i don't think the most supporters of the patriot act imagined it would be used to

allow the government to spy on everyone, tfn calls, land lines. >> we have to go, but you're right. i supported the patriot act, but i never knew there was steroids to take away the rules. judge, thanks a lot. >> even varney said you were right. wow. >> shifting gears to egypt because the crisis pushed up. look at this. it's well over a hundred dollars a barrel, 14-month high, we are at the new york america tile exchange, and, ray, oil, where's it going from here? one thing to have violence in the street, but what if cay -- cairo goes up in flames? >> your guess as good as anyone else's and what happens after the flames, but, of course, everyone looks to egypt for the announcement to come. we had the department of energy numbers released now, and they showed a bigger draw than last night's surprise $9 million barrel draw. we're up popped up $2 higher for a moment and now back to that of

the markets poised to see what comes from the big headlines over in egypt. >> all right. thanks a lot. we'll watch it. we have not been this high in a long time. hey, despite the high oil prices, america, we have a serious love affair with pickup truck that continues. blow out sales from ford and general motors. forget gas prices. we love big american motors. we are calling on america luxury after the break. [ male announcer] surprise -- you're having triplets.

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it's just common sense. from td ameritrade. >> rev up the diesel because there's no doubt americans love their trucks, and thanks to them, ford and chrysler reported strong sales in june so what's driving the love? we got the man with the answers. scott from motor trend. i get to tell you, scott, i live in jersey, commute to new york city every day, i wanted a king ranch. my wife and son timely vetoed me against it, but we love trucks in america, don't we? >> absolutely, and the trucks represent almost 50% of the entire market, and last month in june, ford sold one pickup every 50 seconds from 24/7. >> those, let's face it, they make a lot of money on the trucks, don't they? these trucks, they are not our grandfather's trucks. they are expensive, filled with fancy stuff, and they cost a lot

of money, and they had big profit margins. >> absolutely. they are the bread and butter and paying for detroit. there's pickup trucks that top 70,000, and everyone had luxury pickup trucks, and even chevrolet, never had a separate name plate is coming out with its own specialized silverado. >> what do you think it is? do you think it's how big it is to remit the wide open road? is it the power? request -- we are we so -- i don't. to say "addicted," but to your point, it's the status symbol. >> things changed in 2004 when people bought trucks as a status symbol. what we see now it there's demand and trucks followed housing targets, and as the housing market improves, sales improve. the demand comes from the fact so many people put off purchasing anything, and the

average vehicle on the road today is over 11 years old. >> here's, it's liz here, do trucks get recalled less than cars? i mean, truck sales, a prerecession level, say to yowrg, there's something going right with truck sales that charles is pointing out. >> well, you know, one, you see a will the of the vehicles that are multipurpose used for business and used at home. he wants a vehicle that has a lot of luxury amenities. at the end of the day, you can't throw a cement mixer into the back of a prius. it doesn't work. certain things trucks do that no other vehicles can do. those are the people buying those. >> let's face it. we compromised on the navigators, the third one, and every now and then we put recyclables in it and drive to the recycling place, but other than that, it's not getting dirty. we talk oil now, $101, maybe $102 # at in very second

impacting gas prices. at what point do we love trucks, but it's too expensive? >> well, i think that a lot of the people have been weeded out. if you look, the old body on frame suvs like a navigator and those sales are strong, but not like they used to be. at the , the pickup makers have been doing a lot to increase mileage. the ram hits 25 miles per gallon on the highway. there's the ecoboost engine. give ford create for taking the horsepower and attaching the word "eco" to it at the same time. truck makers are trying to address those things. there's better transmissions, more efficient vehicles, and so where you lead people, are any of the suburban truck owners that occasionally tow a boat or take it camping, but a guy using

it for work, if they tow 10,000 pounds, there's no car substitute to place it. >> tell you right now, we love the truck, and to be able to put "eco" on anything and be honest means a lot. thanks a lot. have a great 4 #th. >> thanks for having me. >> united health care dropped individual policies overnight in california means less competition, bad for consumers. another result of obamacare, next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan ofidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

>> gas prices gown a tick, national average is $3.47. again, a new normal for now. taking a look at the price of oil because the protests in egypt escalating, up almost two bucks, 101.46. to the housing market, latest read on the 30-year fixed mortgage is a day early, 4.29%, down from 4.46 #% a week ago. in the labor department, reporting 343,000 americans applied for first time jobless benefits last week falling below the estimates before the june's job report friday. half a day of trading today before the 4th of july, and full trading resuming on friday. let's check the markets. dow unchanged, two major insurance companies getting out of california as a result of obamacare. very, very bad news for consumers. next.

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walgreens, same store sales rose less than expected so, nicole, how are the shares? >> to the downside. they had some good performance in the pharmacy section, but they did report another drop in same-store customer traffic, and, you know, you need the customers there to purchase everything so pharmacy, as i said, is not a weak spot, on the contrary, it's doing better. the percentage of express prescriptions are returning to the farm pharmacies increasing in june, but there's concern about customer traffic. >> all right. absolutely. a big jell-o flag. -- yellow flag. first aetna and now united health care is dropping individual policies in california before obamacare takes effect. we have aetna, united both out, less competition in the health care market, and we know from economics 101, the less competition, higher the prices,

worse the product; right? >> absolutely. one of the problems with obamacare in general is there's a blizzard of regulations and mandates that drive up the cost of insurance overall anyway, but on top of that, individuals looking for their own insurance plans, despite the pr attempts by groups like covered california with a huge pure rockty sere that is handling the state's system, you know, those rates go up anywhere from 150%, and that's without the insurance mandate, so it is just an absolute train wreck here, and people are seeing this thing collapse under its own weight. >> liz here, good to be with you, so the california state insurance policy commissioner is saying there are only three insurance companies in the state of california that dominate the market, nearly 90% of the market in california, but then you have the government, the white house saying, hey, wait a second, the state health insurance exchange for california has 13 players, so which is it? what is going to happen to the individual consumer in the state

of california? >> well, they find rates go up no matter what, but because of united and aetna dropping out, there's a few smaller ones, but what you name is blue shield of california, anthem blue cross, and kyeser, by far, dominate the market. what happens is there's a tighter control now that you got united and aetna dropping from the insurance programs so rates go up. what they are trying to do desperately out here is get propaganda campaign pushed by democrats like nancy, pass the bill see what's in it, pelosi, to see what the quote-on-quote, benefits of obamacare are pushed to people. you see stories like, for instance, covering california giving them nearly a billion dollars to los angeles unified schools, the second largest school district in the nation giving them, setting up a program to train their students to promote the glories of obamacare to families, friends, and fellow students.

>> hi, it's -- >> they use taxpayer money to push this propaganda system out there. it's absolutely insane. >> monica here, on the point about the propgan propaganda, isn't it designed to cover up two things? number one, a broken promise by president obama that if you like your health care and like your health insurance, you get to keep it, not true. second point is that the california state exchange, probably other exchanges in the country are going to be essentially run by the fciu, aflcio, cover california, you know, left wing organizations and unions running the state exchanges, and by doing that, trying to enroll people to vote democrat. >> yeah, well, that's one of the major concerns out here because -- and that's why they double down on this whole thing, and the legislature out here, dominated by democrats, a super ma joyty -- majority, passing 27 obama care bills this year alone targeting businesses with penalties and fines for merely doing what they do to survive, which is manage health care costs.

this is a system that's set up to fail, and, unfortunately, rather than putting lipstick on the pig, they are giving the pig bow tox. >> all right, great analogy. hope i can get that out of my head before dinner time tomorrow. have a great 4th. >> thank you, you too. >> the first lady says she feels like a prisoner. must be tough living in that white house. that's next. with the spark miles card from capital one,

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>> we've got more breaking news from egypt. the plot thickens. president morsi says he's refusing to step down and tells the military not to take sides as their deadline nears. more as it comes in. so what's it like being a first lady in the white house? well, take a listen to what michelle obama said when asked about the position in a summit in tanzania. >> there are prison elements, but it's a really nice prisents, but it's a really nice prison. >> yeah, you can't complain. >> well, you can't complain, but she was, obviously, it was just in jest, but people think michelle obama is not happy with the role from day one. >> yeah, she's given out that vibe. she was careful to say, look, i'm blessed, you know, i enjoy the job, but then came the whiney aspect to the comments, and i look at this and go, what

part of this is 5 drag? the jets? the chef making you a grilled cheese at three o'clock in the morning, the represent free mansion? what part is a drag? i don't understand. here's the problem. her luxury lifestyle is subsidized by us, by the taxpayers. she shouldn't whine about being in prison and having to run to target with secret service agents. don't do that in public. we are paying for that lifestyle. you know, if shements to complain, there's friends in the white house, complain to her. don't be complaining in public. >> yeah, it's not very becoming. we know a little in jest, but i think to your point, she does feel that way as well. more varney next.

charles: here it is. the highlight reel. >> this is a train wreck. we need to focus on what keeps

this country strong. that is job creation. >> i do not mind paying for our military and our veterans. these guys should be on the fast track. >> the burden they are placing on the american economy and how difficult it is to implement this law. charles: 120 seconds away from the egyptian president morsi deadline. >> this is proof again that democracies are hard work. government cannot survive like this. 17 million petition signatures against morsi. against his government. >> it would be in their best interest to see a military coup.

minority rights, christian rights need to be protected. i do not think that will happen. i do not think that president morsi has any incentives. i do not think president obama has the confidence level to pull that off. charles: a lot of criticism for warming up to morsi over the last year. >> they are caring big signs condemning president obama. >> the question is-- the medium income is $4400. charles: as we discussed this, it makes us feel better and better about tomorrow being the fourth of july. now to cheryl.

cheryl: thank you, charles, very much. have a wonderful fourth of july. the deadline passes for egypt's president mohammad morsi. we are monitoring the situation. we will bring you the very latest as it happens. a brighter picture in the united states where jobs is the story. obamacare on hold. the white house pushes back the mandate which requires employers to have health insurance after the election next year. steve forbes will tell us if he agrees. breakfast lunch and dinner on tiffany's. a former executor has been caught