♪ imus in the morning ♪ >> but we have the pass the bill so that you can find out what is in it away from the fog of the controversy. stuart: oh, madam speaker, how right you were. obamacare has now become a bipartisan train wreck. yes, another top democrat calls for change in the president's signature achievement. how about that? good morning, everyone. dirk durbin is the senior senator from illinois. he wants to change and improve obamacare, he wants a new definition of full-time worker. coming from a top democrat, this is another blow to the president's health care plan, a big one, too, to the markets, watch the price of oil, way up again, gas start to go move you up, too.

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>> everybody, got to start with this, nor hit for apple. apple conspired to raise e-book prices and that's a victory for the u.s. government. and the trial for damages would follow. look at apple pre-market, it's going to be down 250, $3, when we start trading, don't expect that much movement for those stocks at least on the opening bell. you may get more later when we get news from ben, the fed at 2 p.m. and then big speech after the close. stocks not likely to do much this afternoon. look at oil, that's the market that's moving, the price now at $105 a barrel.

this comes after crude inventories, the stock of oil in storage fell by 9 million barrels last week. and we're using more than we thought. that's pushing oil up. the crisis in egypt as they control the suez canal. and all of it results in you paying more at the pump and the national average for regular gas jumped two cents overnight and we're now at $3.50 a gallon. approve the pressure on keystone pipeline. wouldn't we pay less for gas if all of that was coming from canada and not the volatile middle east? as promised we will have more, kt mcfarland, she has the story of al qaeda and bases near the suez canal. that's bad news for oil, up it goes. have you checked your 401(k) lately. the market has been on a tear, you know that. the dow nearing record highs. after the break, someone who says it will not last. yes, both sides here.

your money starts moving in minutes and you will see it live.

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"miss you", in honor of those who may have missed the stock market rally by listening to the bears. and he'll come with here with us and we'll debate the markets. let's bring in tres knippa. and ben bernanke is going to take questions. here is your chance. what question would you ask ben if you were in a position to ask it? >> that's an easy one, stuart. i'd say chairman bernanke, you have gone on a historic amount of quantitative easing. you're going to keep interest rates at zero. would you mind showing me and illustrating the exact point in history where that strategy has workout, with no negative consequences? there's no negative consequences, times ten, stop messing around. stuart: if you asked him that question, what answer do you think you would get? >> oh, he's an economist so he'd

paint a convoluted story about times that he's watched and this, that and the other, but the simple fact of the matter is, this is an experiment. that's all it is. he didn't know what the consequences are going to be and if he thinks that it's going to continue to work and he thinks there are no negative consequences let's put the foot on the gas. stuart: you still think he's going to print for a long time to come. okay. markets open, where are we going in the very early going this wednesday morning? i'll check the big board for you, pretty flat, just as expected we're up what, five points? we're at 15,305. and that may change come 2:00 when we get fed minutes as they're called. watch fox business network and you'll find out exactly what's happened. now, we had a guest who put blackberry on death watch yesterday, saying the company will not survive unless it is bought out. but blackberry's chief, he says, whoa, not so fast. and he told shareholders late

yesterday that the company is in the early days of transformation and says that wall street's expectationses are just too high. so, where is the stock this wednesday morning? no change. 965. and i want you to check apple for me, because we've got news that a federal judge ruled against apple on e-book pricing. nicole: i feel it's an old story. and you also had canaccord lowering on apple overall and think that the slower high end marked growth overall and they did actually cut their price target to 5.60. and-- >> that's not a factor very much at least today. so move on to google. there's more news on the mac's app. what is it? >> i am loving this story. google, you remember the debacle when apple was trying to use their own math and so, here is

google and you can see it's up fractionally and they have a new android maps app which we'll be showing you more for traffic conditions and you can traffic gait around jams and you can have restaurants, hotels, whatever and obviously, it will bring you more. so that's a big deal for them, and a $1100 price target with citigroup with a buy rating. stuart: $1100 for google, that's what they say it's going to? buy it now. >> and that's what they say. stuart: okay. we'll he get it. thanks very much, indeed, nicole, by the way, the dow industrials did open over 20 points higher, we're up 23 right now. 15,324. look at the price of oil, a story we're following very, very closely, a barrel of crude trading at $105 a barrel and let's get to what we brought you at the top of the show, a story brought to us by kt mcfarland. al qaeda setting up shop at the sinai peninsula and that's is

where the flow of oil is the suez oil. that's your story, al qaeda setting up shop here the suez canal. is that a factor in the oil market? >> it should be. and al qaeda set up in the sinai peninsula and did minor attacks on the israeli border and two days ago, blew up the gas pipeline that goes from egypt to jordan. in the last 48 hours they've said the muslim brotherhood group, deposed leader, egypt, some of the followers said they're going to join with al qaeda and set up with a group, the same that was responsible for the attack in benghazi. we don't know what they're going to do, but they're there. it's vulnerable, and suez canal-- >> when you talk about setting up shop. >> training camp in a deserted area. the desert in the sinai peninsula. a militarized zone since the

last war. and everybody says worry about the straits of hormuz. but the suez canal is a one lane street. there are passing lanes, but only go one direction at a time. one side is egypt proper, on the other is the sinai peninsula. so easy for two guys and a truck to drive near the suez canal, with a shoulder fired missile take out a ship. stuart: how about the rest of egy egypt? we've learned that the egyptians are going to get $8 billion to keep them going for a short period of time. they're getting it from gulf states. so that keeps them going at least. it's not total chaos. >> it buys them time. the previous-- and morsi, his first trip when he was elected a year ago he went to see iran, saudi arabia's archenemy.

what happened? the money from saudi arabia dried up. they don't like -- and the top guys, all have close connections to saudi arabia. a general, an attach there. and the interim president represented the saudi arabian interests in egypt. if they could get with the relationship they need with saudi arabia to write big checks, they could feed the people and potentially restore order and set up a government and get the egyptian economy going. >> let's see what happens with the camps near the suez canal. now this, the local government in washington d.c. is pushing for new law that would require large retailers to pay a so-called living wage. that would be more than $12 an hour. 5 bucks above the current minimum wage. retailers, they don't like that. a region wal-mart manager says

if the living wage sticks, the company will not go through with a plan to build three more big stores in the area. stores that would bring much needed jobs to the nation's capital. all right, nicole, i'm not expecting any impact whatever on wal-mart stock because of this and it's an interesting side bar story. and i see that wal-mart is up at 77. >> 7727. you see the stock up 1/3 of 1% and people that currently work there. they want $5 more and the mid tier $5 more. >> how rg go are you going to r business like that. stuart: that's the market and relatively cheap labor. i think it's up to 12.60 is what they actually want. that's just not going to happen. by the way, nicole, how much were you paid in your first job ever? >> i was just thinking that. i think i was paid about 5.60

right? i think that may be minimum wage at a sneaker shop. stuart: in january 1973, $1.73 as a waiter at a restaurant in connecticut, but that's an entirely different story. thank you very much indeed. dead flat dow, 16 points higher, that's all we got. listen to this, joining us now is dan schaeffer. this is the ultimate bear. all right, dan. i think i'm correctly describing you, you've always been bearish? >> i'm still-- i'm few stocks, but i'm bearish. stuart: all right, what's your forecast for the dow jones industrials industrial average. how low is it going to go when this selloff occurs? >> it has the potential to go to 5,000 on the dow. stuart: when? >> within the next two years, if we look back at cycles-- >> give me your reasoning for the forecast. >> let's go with the reasons. the stock market is in a bubble that's been created by the federal reserve through money going through the banking system and by currency swaps. remember, years ago, they talk

about currency swaps and gave money to countries in other u.s. dollars and i think they're buying our stocks. the economy is not supporting the fundamentals, or the fundamentals are not supporting the valuations of the stocks. i don't care what all analysts are saying, they're jumping on the band wagon. we have a gdp that's down. stuart: okay, now, hold on a second. i'm following your reasoning. the market is a bubble. and that's basically the bubble is pricked and down comes the market. >> exactly. surely the economy is strong enough. it's stronger than a 5,000 dow, isn't it? >> well, not necessarily. >> 3% growth? >> the federal reserve has pumped 3 trillion plus into our system the last four years. the economy is not moving, the velocity of money is not moving and it hasn't trickled down to the lower and middle classes. look at the unemployment rate and the food stamp program and what's going on economically through a broader base of

companies cutting prices to raise revenue. they've cut their expenses as much as they can, and now, why 5,000? there's a chart pattern that goes back to 1962, to 1974. which is called a megaphone pattern which we have a similar pattern here. 2000 we made a high and 2003 we made a low and 2006 we made a new high and 2009, a new low. we have a potential to go to 17,000 and then we get the new low. stuart: you manage money. >> yes. stuart: where are you telling your clients to put the money? >> wooer a buying u.s. treasuries, tons on friday. and the 10-year treasury. stuart: the 10-year currently 2.6%. >> yes. stuart: you think that thing is going-- >> i believe it has the potential to break through the 1.63 level that we had. the commitment of traders, report highest net long position since the low he of march of 2012. if the economies do slow down, forget the fed putting money

into the system. they're not going to stop. they can't stop. but just by the natural environment, the interest rates should decline. stuart: 5,000 on the dow within two years and that's what i heard and your viewers heard dan schaeffer, thank you very much indeed. we've got a dead flat dow and waiting for news from the fed at 2:00 and ben's big speech when the market closes and right now we're up just 6. i've got this for you. major league baseball's all-star game next week and that's not the only thing around the corner. suspensions likely for as many as 20 players for using performance enhancing drugs and alex rodriguez may be one of them. brian kilmeade will be here at 10:25. and he doesn't like them running the bases, but i say that's what brings in the viewers. to the big board again, as i said dead flat. we're up 11 and that's it. now, another top democrat turns critical of the president's

health care law. sure sounds like the beginning of the end for obamacare. we go to washington after this. ♪ clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody.

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[ villain ] well mr. baldwin... it appears our journey has come to a delightful end. then i better use the capital one purchase eraser to redeem my venture miles for this trip. >> purchase eraser? it's the easy way to erase any recent travel expense. i just pick a charge, like my flight with a few taps, it's taken care of. impressive baldwin. does it work for hotels? absolutely thank goodness. mrs. villain and i are planning our... you scare me. and i like it. let's go what's in your wallet? >> dead flat stocks up six on the dow, 15304. now, the gold report. are are we this morning? dead flat. up five bucks, that's it. 1251 an ounce. check the share price of family

dollar. it's a discount retailer as you know, stocks up even though income was down. and the company says people are spending more on food, but not on discretionary items. the stock is up, 66 on family dollar. and this stock is going 26 on hpq. an obamacare defender and number two democrat in the united states senate has done what some say is the unthinkable. illinois senator dick durbin is calling on republicans to help change and improve obamacare. congressman, when i hear top democrats in the united states senate walking away from president obama's signature achievement, to me it means it's the beginning of the end. would you agree with me? >> well, i certainly wish that discussion would have happened a few years ago when we were first considering the bill. but i think the evidence is

mounting that there are serious problems with not only how this is being implemented, but how it was designed in the first place. and their hands are tied. luke at everything from the navigators, to the costs, to all of these various aspects of how this bill is going to be operational. it's extremely difficult and when you look at what the administration recently said, they're going to hold off on the enforcement against businesses and we don't know what they're going to do with individuals, it tells they understand there are serious problems. i'm not sure they're admitting it. we'll see. stuart: if democrats are walking away from it that sends a huge signal about the elections next year. i don't think that the democrats would want a big mid term election with obamacare and chaos around their neck. i'm suggesting there's a possibility of a full scale delay. just drop this thing for at least a year or two years and reconsider. is that not on the cards now? >> i think what's-- what may come up for a vote in

the house at least, a consideration of delaying the enforcement for the individual mandates as well as the business mandate here or basically those are delaying taxes. will it mean the whole bill will be retooled? that's what we really should be doing. will we be able to have a vote for that? i can tell you that my discussions with democrats privately have been they recognize there are some difficulties and they wish we could see that. and to we need to scrap and start over. some things are good, many things are bad. we really should be rethinking how to do this, but i'm not so sure you're going to hear democrats backing off from the thing entirely. stuart: i believe you have a hearing and you're going to try to get the irs defunding as the police officer for obamacare, that's going to happen today? >> well, i actually have a hearing next week on asking people in the administration, where did you get the authority to waive this, this mandate on

businesses. and what are you going to do about individuals? now, we received a letter late last night from treasury, saying we can waive on everybody. and john doe has a problem with taxes and we can waive penalizing him. does that mean the law still exist that is they have to do it and what are you going to do with the individuals? and what happens, if mary smith does not have insurance from her company, she is now going to be penalized if she doesn't have it on their own and the company-- this is almost more chaotic for businesses, are we supposed to comply or not? >> congressman, we appreciate you being with us. and all i see is chaos and you see it, too. congressman murphy from pennsylvania. thank you. >> thank you. stuart: scandalous sports in baseball and criminals in the nfl, and may take on that, yes, me, sports, yes.

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>> oh, look at this, cliff's

natural resources, biggest winner on the s&p so far. 3% higher. look at best buy, getting a lot of upgrades as well. the stock is down 5%. investors not convinced there's an ongoing struggle between on-line retailers, with on-line retailers and bricks and mortar down. and look at this, the suburban new york city newspapers published a map of gun owners at it again. requesting information, permits, names, addresses you own a gun they want to publish all of the above. that story will be new at 10 to you. we'll introduce you to a man who flips luxury homes, a lot of pressure leads to profit and how much does he make and how much time does it take? we will ask him. yes, it's true, i do not know much about baseball or football. they are all american sports and they are not really in my blood,

but i know something about money. and here is my take on cheaters and criminals, baseball and football thugs and scandal and money. baseball first, i don't think the steroid era hurt baseball financially. i think that the image of mark mcgwire and sammy sosa hitting it out of the park, and we want to see a home run derby. and think were a financial shot in the arm. maybe the money would come back if players performance could be enhanced artificially again. as for football, it's a violent sport, isn't it? so, why should we stay away when an alleged murderer takes the field? if a guy's had a few run-ins with the law surely a lot of fans would like to see him use aggression on the field. if the sport is about the hit, don't be surprised if people flocked to see the really big

hit. i'm not being cynical, i'm being realistic, here is my prediction. football will remain the big sport's moneymaker regardless of the arrest record of the players on the field and baseball would make a big comeback if stars emerged who could slug it out of the park with or without a little artificial help.: of course, there's always soccer. just saying. friday night, buddy. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard.

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look at this, another leading democrat calls for change to obamacare. it's now a bipartisan train wreck, and juan williams is here on that. baseball suspends big name players for performance enhancing drug use, a-rod among them, and brian has that. a new twist on house flipping. buy the worst house in the best neighborhood, fix it up. the luxury flipper is here. remember the newspaper publishing the addresses of gun owners? they are at it again. ♪ this wednesday morning, the target is pretty much dead flat ahead of what we call fed minutes. that's the thinking within federal rereceiver meetings that are published at two o'clock this afternoon. charles, have thoughts on that in >> last week, there was an interesting development because the street sort okay,

there's tapering in september. it'll be between 20-30 billion, and it came to grips with it with the best four-day run of the year so far in the last four days. >> okay. what do you expect today? you don't know, but speculate. >> we don't know, but mortgage applications bother me. we had a big spike in mortgage rates. mortgage applications are down. refinancings are down. that 45z -- has to bother ben bernanke. he wants to taper, but i don't know he can. 2,000 part-time workers is not what he was looking for. >> right. could be good news for the market. >> walking back the tapering comments, we'll see. >> stocks, individuals in the news, starting with best buy. nicole, explain why it's down, please. >> well, may to jupe is a slower season time for best buy, cleveland research this morning, though, came out saying their seasonal slow down is more pronounced this year. the -- looking at the sales this year against the sales last year

appear to be weaker than expected. they are seeing less demand for televisions, pc, and not such great growth in mobile and tablets which is why there's a neutral rating, stocks down 5%. >> the market that is moving is oil, just look at it go. right now, it's at $105 # a barrel, the highest level in 14 months, and this is affecting the price of gasoline. it's been down, down, down for gas, but overnight, it moved the other direction, up two cents coming in at $3.50 as the national average. there's a surprise draw down in crude oil in storage, 9 million barrels down. more figures on that in a half hour. of course, you got the fears of chaos in egypt, possibly disrupting oil transportation in the s or --

suez continue. add that up, there's a increase in oil, and sooner rather than later, you'll pay more at the pump because of what's happening in egypt. that's price of gasoline going up from here. okay. we got the 10:30 numbers on oil for you when they come. bringing you to the bipartisan train wreck, obamacare. republicans call for president obama to delay the individual mandate section of the law and senator durbin, the number two man in the senate. he's calling for big changes to the bill saying, quote, we need a better definition of a full-time worker. juan williams is here with more. juan, i know where you are coming from, and i know we're on opposite sides of the fence here, but it seems to me, like, this really is a train wreck that obamacare really is unraveling, and democrats do not want to go into next year's

election with obamacare in chaos. >> well, there's a lot of truth this morning. one, the politics of it are self-evident, they are democrats very concerned that republicans will use the affordable health care act and concern anxiety over it to beat up their candidates going in, and it will stall their efforts to retake the house of representatives. i didn't think it was great anyway, but if you're a democrat, you work to that end. secondly, truth coming to me this morning, if you look over at the white house here in washington, you will see they're bringing in added troops right now. they are gearing up because they fear that just what you're talking about. fearing they are not prepared for the roll out of obamacare, and thirdly, you mentioned it in the introduction, you see boehner and republicans smell blood in the water given the delay that the white house announced last week, tried to sneak it in on july 4 #th about

the employer mandate. the republicans right now run ads all over the country saying obamacare is not good for you and your family. the critics and opponents smell blood, white house knows it's in trouble, trying to shore up staffing to properly implement the law indicating there's problems. >> you're right on the inside of the beltway, this is what you do every day of your life. just tell me where we are going here. i mean, i see chaos in front of us with the implementation of obamacare, and the setting up of the visa exchanges. what do you see? >> well, i think, with any major government program, you're going to have issues, and, you know, there's always beginning to be blips and trouble. i don't have any sort of assumption things go smoothly. the key is the individual mandate and all americans are covered. that's what john boehner speaks to says let's have a delay.

that's a really slick smiewt move to undercut the central particular of obamacare, and republicans tried 37 times to repeal the whole thing, but in terms of the actuality, as it impacts your family, my family, look, we're covered by a big company here, you know, i think 90% of companies offer health insurance, 80%-plus americans get insurance from employers. that's not impacted. what's impacted is a single person who doesn't have health insurance at the moment, especially if you are without an employer, going to the insurance company saying, well, we'll charge you more because we've got to pay now for the people with preexisting conditions and the like. that's where the issue is. >> okay. juan, i got two colleagues here, charles payne and monica crowley. >> sure.

>> shouldn't the white house be considering -- i mean, a lot of individuals say, okay, businesses got a free pass, but what about me, the individual. i know the white house says, listen, come to us for subsidy, that's not going to cut it. people watching the show will be slammed while everybody else gets a free ride. >> i didn't understand, charles, but i'll try. you help me out. an individual who does not have a job and who then applies for health insurance has to go to an exchange that's supposed to be set up beginning this october, in 2014, i should say, once they go to the exchange, there should be competition in the insurance policy companies. the question is is it going to be successful and real? are there options for the individual? >> you don't buy insurance in the country, you are going to be penalized. you have to pay a fee. first at 95 bucks up to 600 bucks. i'm talking about people who are penalized for not having health care insurance and everybody

else gets a free pass. >> hold on a second, everybody. under the new terms, that person can lie. they can say -- >> get a subsidy. >> yes, they can lie and get a full sup sigh di. >> there's americans who will not lie saying, listen, i don't have insurance, i pay the punishment, my boss doesn't, a lot of other waivers have been granted. >> true. doesn't it mean something, juan, that we, in america today, we e are actually almost opening the door to lying about what health care coverage we have to get a government subsidized handout. that's a terrible place to be. >> that's interesting. i had not thought of it. you're right. you don't want to encourage people something for nothing. that's not the american tradition, but i will say i understand why the white house, and this is something, by the way, that dick durbin mentioned about the top. he says we need to better define what the full-time employee, lay out their criteria so people can

properly report how much income they have and whether or not they are eligible for any insurance from any employer, all that, you know, at that late day, how come it's not known? >> because as speaker pelosi said, you have to pass the bill to find out what's in it, but i digress, you know? >> you're just mocking her. >> e, -- yes, i am, very true, juan williams, you are right. thank you for joining us. come again soon, please. >> my pleasure, good show. >> thank you. three headlines on the irs scandal out today, a push to end bonuses, $70 million worth, and an effort to cut its budget by $3 billion, and end its role in obamacare. we'll bring you those three developments in the second half of the hour on this program. monica's here, just dying -- >> chomping at the bit.

>> chomping at the bit, ha-ha. got in so far, temperature minutes into the hour of the show, and you've not got a word. >> that's all right. >> jerry brown focused on creating a legacy rather than fixing california's problems? the republican party chair says, yeah, so much that brown is sitting on top of what he calls california's collapsing house of cards. we are joined from san fransisco. tom, governor brown says we're going to have a surplus, doing fine. we don't have a problem here. you say what? >> that depends if you don't look forward. the california governments from top to bottom have a trillion dollars in debt, and they have not set up a plan to repay for that debt so what they've done is temporarily move things around. they say they is a balanced budget, but if you really look at the numbers, they're facing a wall of debt by brown's own words, plus, facing the pension

and liabilities, and if they don't put people back to work in the state, this state will bed model for collapsing governments in states. >> do you have a republican party in the state of california? you're the outgoing chair of the supposed party, but i don't think you count for very much in that state, do you? >> well, you know what republicans need to do in the state, and quite frankly, they have to do this in congress. they have to take a specific government program, offer a real reform, and get out of sacramento or washington and go around the state and show people that this is something that should be done, and they need to put the pressure on the democrats to reform. when republicans step up like that here, and if they do that in washington, they can begin to turn things around. >> are you going to do that? >> well, i'm no longer the chairment i'm running for forbes now, but it's not so much the party apparatus to do that, but it's got to be the legislators and the congress people who do this sort of thing because

voters want an alternative. watching the collapse of obamacare, and, by the way, the chaos is going to be bad here, the budget here, they don't know how much obama's going to cost in california, which is one of the bad things because they spend all the new money instead of being prepared for the problems of obamacare. >> right. >> what the legislators have to do is take up reform mantle, but talk about it in l.a., talk about it in san diego and fresno and places like that. >> i'm still holding to the bet that you and i have, which is in my lifetime, and i'm in my 60s, i do not expect california to vote for a republican candidate for the presidency. you still op with the bet? >> well, look, you're going to live another 40 years the way i see it, and i think about within the next two to four years, the democrats are going to have to face up to the joblessness in the state, and the fact that they are denying california jobs because they have so much energy in the state. >> i know. >> they could turn the state

around. >> they never turn around. that's the -- nevermind. no, i've had it, okay. got it. tom, thank you very much indeed. i got to move op quickly to nicole who has news on blackberry. the top guy there says, relax. he's only just started the program of renewal and the stock's down. >> right. they say, look, it's a turn around process, saving money, trying to get more units out on the blackberry 10 operating system. in the meantime, the stock tanked, down 2 #.5%. they are open to alliances, but one thing, stuart, and i'm sure the viewers appreciate it. this is the newer one, the curve. this is my old one from 2006, the 8700 model, okay? some people, like me and others, like the old one, big buttons, easy to use, this new one i had for two and a half weeks was so difficult to use the buttons. the new ones are supposed to be better than the old ones, and

maybe it is, but i have to tell you, i can shoot out e-mails op this thing no problem. this one? problem. >> you know, you just killed that stock. down another #2 or 3%. >> maybe the black beerty 10 is great, but this is one person's way to use it. >> we hear you. thank you very much indeed. the latest hit for apple. a judge says the company conspired, yes, they did, to raise e-book prices, and the company will have to pay. all rise, our judge is next. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95.

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don't wait until you become the next victim. ♪ ♪ >> it's that time when charles payne is making us money updating previous recommendations. >> it's been awhile. i want to update some today that are pretty important. remember, open, reservation company, they have a sell rating. it's down, it's on a 55. take profits on that. >> you said buy at 55? >> right. >> now it's 66. somebody downgraded the thing, and you say sell? >> and yelp is getting in, sell it p. i'm a little worried. we talked about winbago, and it was pumped on tv and channels

later, we made 17%, 30% from the first time, take it on the dip. >> you are selling this now? >> took profitings on it, yes. >> before i buy for retirement, sell? >> you're not going to retire for a while. cliff naturalnumber one mover in the s&p, the stock got an upgrade, but it's a loser for me right now, but it's hit bottom, 1875, a hold. >> buy at 1875 -- >> was at 23, but now it's a loser. hold it. >> hold on to? >> yes. the ceo's leaving, that's good news. >> i guess so. a federal judge ruled that apple was, indeed, guilty of conspiring to raise the price of e-books. that is a violation of anti-trust law. all rise, judge andrew napolitano is here. first of all, some background about this. >> this case has a very interesting history because the government and several states went after apple and five

publishers. they have harper collins. >> they said you guys all got together, fixed the price of electronically published books. which you fixed it was described by the judge, and jumping ahead of the story because the opinion came out an hour ago, as brilliant, apple and the publishers political lantly constructed a mechanism which assured higher profits for apping, making some happy, but higher prices for consumers. the five settled with the federal government, they paid cash, but less than apple pays. once they settled with the federal government, what else did they agree to do? testify against apple. apple says no, no, no, we didn't do it, the government puts on the witness stand the other former co-conspirators to say, yes, we were in the room, this is what we agreed to do. here's my initial, apple's

initials. it's a slam dunk. >> apple lost, found guilty >> antitrust violation, price fixing, 160-page opinion outlining. this is a judge trial because there's a second trial on damages, a long and complex case in which the government needs to prove to the ?ax -- satisfaction of this judge how much money did consumers lose and how much did apple gain because of the conspiracy? whatever numbers are, multiply by three and extract from apple. >> doesn't matter. apple got over a hundred billion in cash. >> i can't imagine is affects the stock. i don't think it would, but that takes some of the hundred billion. >> how much do they take? >> here's the problem with respect to business, small business, you're a book publisher, apple does this, you

could be out of business already. large corporations do this over and over, but by that time, they wiped out the competition. i mean, -- >> well, the competition -- >> how do you make up for that? >> generally, what you say is correct, and without getting into the ideology because stuart doesn't want me to, antitrust legislation is a myth, charge whatever you want and enter into any agreement you want. a topic for another time, but apple's target is not the small publisher. app 8's trying to put amazon out of business. >> right. >> amazon's going to claim they lost money because they want apple punished. >> apple stock is above $29 o a share. i'm not sure what it is today. >> yes, has the varney household acquired amazon stock? >> no, but we have a kindle. we have app interest in this thing. >> yes, you do. >> i do. >> and you've been brilliantly neutral in the conversation. >> incredible, isn't it?

>> ha-ha, very strong, and brilliant federal judge, and i think even though apple's filthy rich, richer than the vatican, they have to worry. >> richer than the vatican. >> i don't know that means anything, but they have something to worry about. >> you had the chance to say "richer than the queen of england." >> and she got a raise. >> didn't she fire her banker, mr. king? >> i believe so drk no, oh, stop it. >> doesn't she own the bank of england? >> still, all the lines. >> not a word in edge-wise, and we're 2 # 2 minutes into the show. >> i'll join the show from the set. >> there you go. all-star week, coming up on major leek baseball, but the performance enhancing drug scandal is not going away. big suspensions for the game's most talked about players. fox and friends host is next on that.

i

speak to 20 major-league baseball players including alex rodriguez, may be suspended after the all-star game because of performance enhancing drugs. they will make these suspensions after the all-star game.

speed they are trying to put baseball on the spotlight. they have taken a backseat to the nba playoffs. the ratings are down on television. they want the limelight to be at citi field in queens new york. they do not want to be talking about suspensions. we will be talking about them who are accused of cheating. stuart: you are right. don't you think, though, that the attendance and ratings would come back again if we had guys banging it out in the ballpark all the time? that is what people want.

they want performance. >> i think if your listeners and viewers knew that the guy was cheating at the plate, cheating on the mound, i do not think that we can enjoy those performances. if you cannot say that he did this, he did that, you do not have the rich legacy and the success of the sport. history matters. barry bonds has the most home runs. no one thinks that he is the king because he cheated. three hours instead of one hour.

here is what is sad for me. it is all about me, stuart varney. anna claman is a triathlete and an all-star. hassle back comes in. now i am third. how do you think i feel emotionally about that? does anyone take my self-esteem into account? stuart: i have to go. we just got cut off just like that. they are requesting more information.

>> if they want information about changes in status, they want to have that information so they can publish it. this is so grossly irresponsible remember, we may first published the names of people who actually owned guns, it was actually a woman who had a stalker, he saw that report and he went and attacked her. i hope to god she has since gotten a gun and maybe that information will be published. you ought to be using some discretion. you ought to be using some journalistic judgment as to what is responsible to put on the air and what is not. stuart: they will do more than

they did last time. stuart: crude oil inventories down. that means we are using a lot of oil. more than we thought we were using. it is already at $105 a barrel. this drawdown in the supply that is available for america, that would suggest that the price would go up a little bit more. we are up nearly two dollars a barrel just today. this is because of the drawdown in crude oil supply. that is no oil market making news for you this morning. after the break, a man who bought it, fix it and made money in the process. he is next. ♪

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stuart: we were up 2530. now we are down. down 9 million barrels. off goes the price.

now it is time to let you make some money, hopefully, with charles payne. he is following up on some stocks that he previously liked. charles: i still like them. a play on mexico's middle class economy. stuart: you would sell it? charles: i would hold onto them. it just had a big breakup. a major breakout today. you can see that stock is almost at 34. these have been huge winners. you have big games all of them.

stuart: this is a victory lap. >> yes. to i want you to take a look at this home. it is a fixer upper. it needs a lot of work. our next guest bought it, put a lot of money into it and turned it into this. he was able to flip it, sell it and make it profit. you buy the worst house in the best neighborhood and turn it into the past house in the best neighborhood. that is your style. >> that is what we try to do.

that is essentially what we try to do. stuart: we just showed our viewers the before and after on a home. tell us what you bought that place for, what you sold it for and how much money you needed to put into it to make a profit. >> it was in studio city, california. we bought it for $690,000. we put in approximately $50,000 sold it for $890,000. there are high transaction costs in real estate. stuart: that was that was a one-year turnaround?

>> about six months. stuart: what are your favorite markets? >> sherman oaks, the hollywood hills, all areas that we are currently operating in. stuart: why do you think that particular market? >> that is a very good question. there is so much competition at the lower end of the market. you have sort of your mom and pop, weekend warrior type of investors. just a lot less people who can walk up to a house and say i can write you a check for a million dollars cash.

stuart: i am told that the worst mistake that you can make is to over improve. >> we are looking at return on investment on everything we look at. we are very focused on what the consumer wants. these are savvy consumers. stuart: you are right. very savvy people. thank you very much, indeed. >> thank you. he is an a list music producer making songs for justin bieber and beyoncé. his name is sean garrett.

he is a big player. we will talk to him about jay-z in just a moment. ♪ ♪

♪ stuart: this is a little ominous. gas prices starting to move up. the national average is $3.50 a

gallon. oil is way off today. look at that price. a judge has ruled against apple saying that pack giant conspired -- this is on the fifth anniversary of that app store. shares of apple holding their own. virtually unchanged. google unveiling a new app. shares of google this morning $905. sean garrett is next. ♪ every day we're working to be an even better company -

and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger. to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy c act.

wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet? stuart: listen to this. i have breaking news from capitol hill. another hit on obamacare. asking the congressional budget office, they want them to calculate the cost of delaying the employer mandate and obamacare. >> yesterday, paul ryan was approaching the cbo to do this. do have both houses of congress saying we need to have some sort of idea to the budgetary of fax. the wheels are coming off.

we all knew that it was unworkable to begin with. you take down half of that, the entire thing falls apart. >> when they were pushing obamacare a few years ago, they did not want to hear from republicans. now they are saying, please help us fix this. hell no. we will not help you fix this thing. we were sent to washington to and obamacare, not to bend it. stuart: will we have obamacare one year from now? charles: oh, yes.

stuart: chaos is coming. music mogul jay-z recently gave a million aleksei phone users a copy of his album. sean garrett is here. he works with beyoncé, usher, justin bieber, rihanna and fergie. you are pretty good at this. >> thank you. stuart: i want to talk to you about jay-z. this is new.

>> i think it is good. it works. stuart: does it change the whole way that music is put out there? it is becoming a corporation. >> he is someone that i definitely look up to. he is always a step ahead of everyone else. he was the first hip-hop artist that really branded themselves with another brand and made such an impact on the community and the r&d community of the world. here he is using the phone which is one of the most important pieces to everyone's life. stuart: mtv.

now you go to a smart phone. times have changed. >> it makes us, it gives us the opportunity to be a lot more diverse to pretty much all of our music. it is the power to control your own destiny by partnering with fortune 500 companies that believe in their brand and their music. >> i also do a radio show.

they are kind of in their reigning days also. i wonder if this applies to record companies? will the middleman eventually fall away? >> unfortunately, they have done good by me. unfortunately, i think that those days are coming. i think that the consumer is always hungry for the opportunity to have a better relationship, a closer relationship with the artist. it becomes a bigger share for everyone involved. stuart: you have a new song out. >> yes. it is a new song called twilight zone. stuart: you produced it.

>> yes. stuart: where did the money come from, writing it or producing it? >> it is sort of the same thing. being able to perform, produce, write and create for other people, it is sort of -- stuart: one last one. i say that eric clapton is the greatest guitarist of all time and you say -- >> wow. i would probably disagree with that. jay-z's album is more commercial. i would give them a type.

stuart: jay-z and kanye west. okay. if you are not careful, sean, we will ask you to come back. thank you. we do appreciate it. and and two bonuses at the irs. cut the budget by 3 million. music to your ears? it may be possible. monica is up in a moment. ♪

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♪ stuart: three headlines for you on the irs. and and in the bonuses. republicans want to cut the bonus by 3 million a year. they want to get that agency out of obamacare. >> i call this a start. [ laughter ] given all of the corruption and now everybody is assuming the mandate survives, all of us will have to prove to the irs that we have government sanctioned. stuart: you are not one of those that want to abolish.

>> i am not saying abolish income taxes. cut back on the bureaucracy and the corruption. you should work towards a goal of tax reform so that the bureaucracy strengths. i think that tax returns should be done on a postcard. you know how many people -- about 100. one hundred irs agent instead of 10 million. stuart: okay. out of time. more varney and maybe monica also after this. ♪

stuart: we are flat out of time. connell has plenty of it. connell: stuart, great to see you again.

cutting the irs budget by $3 million. also, the market waiting for bernanke to speak later today. ahead of that, we talk about trading ahead of fear. we told you yesterday about the white house speeding up efforts. a new u.s. base in that country now could be a waste. we also have the man behind dwight howard moved to the houston rockets. all of that and more at this hour on markets now. ♪ connell: basketball and taxes. dagen: hey, baby. what is going on? i have not seen you all morning. upbeat and not