♪ ♪ imus in the morning ♪ >> big smile, everybody. here is a headline you will like. stocks are going up some more. records last week, more of the same when trading kicks off the new week. good monday morning everyone, 15,464, that was friday's closing record for the dow. the early indicators are we go above that just a few minutes from now.

trouble in tech land, apple drafting in more staff for the i-watch. and verizon not selling as many iphones as promised. big cuts for the blackberry and that's not good. you know, we were right, the gas price spike continues, up about 10 cents in a week. but, were we wrong about global warming? the forecast today, hot tomorrow, hot wednesday even hotter. "varney & company" is about to begin. . [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.

>> all right. we're going to get to the records on the market in a moment. here is what's going to heat up on capitol hill this week. harry reid, wants the nuclear option. this would be an unprecedented change in the rules to make it impossible for republicans to football and stop president obama's nominees to the nlrb. the president's nominees are all pro union. harry reid wants to push through with a straight majority vote and 51, instead of requiring 60.

listen to this. >> what you want to do, just like in the future, just like the constitution outlines, it's pretty specific. if you want a super majority vote, look at what a veto is or a treaty. but if you want to look at nomination, what the founding fathers said, simple majority. >> senator reid what happens when you're in the minority, maybe next year. >> and obamacare requirement says you have to get health insurance, called the individual mandate. some say without it the law will not stand on its own, but the vote is this week and likely to go down. look at this, the american postal workers union running ads that sing the praises of postal employees. . >> these are the american postal union workers handle more than 165 billion dollars letters and packages a year, that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer? millions, tens of millions? hundreds of millions?

not a single cent. stuart: whoa, hold on. not costing the taxpayer is single cent? is that accurate? . we'll get to the bottom of that in our next hour, there are big numbers involved here. here is the story of the day. the markets are on a tear and record high, are we looking at dow 16 k. amazon, is it the new apple? find out in a moment. peace of mind is important when you're running a successful business.

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now get 200 free trades when you open an account. ♪ >> do you remember the last time we put blackberry on death watch with that organ music? the stock nearly doubled. and we got news from the retailers that are slashing the price for the new blackberry z-10 and the organ music might be justified and we'll get into blackberry in just a second. come on in scott shellady. i see predictions in the second quarter, that will be april through june, the economy grew less than 1% at the annual rate and i've got to believe that's a factor in the ongoing rally. >> it absolutely is, and that means we're going to continue to print money. we're going to start to see some volatile upside movement, more volatile stock moves. i think going forward, slowly

grinding higher and we have to be careful. we should pay more attention to the 10-year yield. the truth serum for the next half of this year. stuart: so 2.63 on the 10-year if it goes up, is that good news or bad news for stocks? >> it's supposed to be good news because that means the economy is better, but i think this will kind of put a cap on the stocks. stuart: we've got it. get back it trading there. thanks very much. the opening bell has rung and the trading session has begun. the futures were the early indicator were pointing higher. let's see how we go after a minute's worth of business. i've got news on individual stocks, look like we might have to put blackberry back on death watch. the new z-10 device. retailers are slashing up to 75% because they're not selling the new z-10's. start us out with the blackberry share price. >> it's already to the down side this morning, it's down 1/3 of

1%, but does it matter if it's down 1% or half a percent. the point of the story, blackberry waited, and it's selling at best buy, you can get the new blackberry for $49 in the contract. and this is something that was supposed to sell for $700. and now you can get it for $49. somebody should step in and buy blackberry. >> it could be a tick under for less than $9 a share. hold on nicole, for a second. and we've got bruce with us. and he's a branding guy. purely from the point of view of image and branding, should we put blackberry on death watch? >> depends what blackberry decides to do. they have a great opportunity to reestablish their brand. not so many years ago we could have played that music for apple. they had lost their way and then had a rally and figured out who they were and sold to their

faithful and blackberry could do the same thing, whether they will or not, who knows? >> they don't have steve jobs, stay right there. do look at apple, the financial times reporting that the company is bringing in new, fresh talent to rework the design of that i-watch. not happy with it, apparently, nicole, apple stock, where is it? >> everybody is waiting for it. slightly to the down side. 1/3, 1/10 of 1% at 425. it's a 700 stock everybodying is looking for the i-watch. do you think it's good. maybe some desire for this thing. it's going to be tricky, but a great concept. we'll see what happens with that one. bruce come in again, apple still losing its cool, is it? >> well, you know, the apple problem the media cycle doesn't work with their innovation cycle. if you look back to their key products, a great one, amazing

one every five to six years, but the pundits, wall street, media won't wait five to six years and they've got to find a way for them to work out. stuart: and then the i-watch. if they're losing their cool, it's bad news for verizon verizon promised it would sold double what it sold the previous year, verizon not selling the iphones like it was supposed to. it could be on the hook for 14, 14 million dollars if it doesn't meet the target. verizon stock in retreat. we keep telling to you fill up your tank because glass prices are going up. we're right, they are. up more than a penny overnight. 3.61. it was up about a nickel over the weekend alone. and california, the only member of the lower 48 in the $4 club. others are likely to follow and follow soon. let me take you to the big board

for a second. we're three he minutes, four minutes into the trading session and the dow is up 20 points. by the way, i've got to tell you that boeing is up, was it 2 1/2%? yeah, 2 1/2% up on boeing, that's because there are reports that that fire in the ethiopian airlines dreamliner on the ground in london was not the result of battery problems. so, we've got boeing going up. boeing is a dow stock and that's helping the dow eke out a 16 point gain until this monday morning. now we started to show you shots there of china. the story here is that china's economy is slowing. it was expected, but it's slowing to a rate of 7 1/2% growth per year. it sounds pretty good, but not what we expect from china. and let's bring in keith fitz-gerald, keith, they're slowing down over there. is that a problem for us over here? >> well, i tell you what, stuart, people have been betting on china's failure for four

years, we should be betting on success. what happens, the nation is growing and economy is getting bigger and only natural that the figures normallize and they're going to drop for decades to come and i think the problem is overrated in the media right now. >> what about the reports that i'm seeing here in america, that in the second quarter of the year, april through june. the second quarter, earlier reports suggest our growth such as it was in the first quarter is slowing down dramatically to less than 1% per year. and has that got something to do with china's slowdown, and europe's recession and slowdown all over the world? >> that's a lot of stuff all in one question, stuart. i'm not sure how to separate it all. you know, i think that our consumption patterns are driven by debt. if they remain slow and low. then that predisposes bernanke to spend money. china's growth is what we should be betting on. you want it to succeed.

the imports and exports are rising sharply. there are connections and household names, johnson & johnson and consumer brands they're selling there, the companies are going to do well, even in this economy, they could better. there's a mix and a lot in that question. >> there was, that's a bombshell. if we get growth of 1% in the second quarter, that's a very big deal for america, for president obama, for ben bernanke and the whole ball of wax here. keith, thank you very much indeed, sir. a big mover for you, leap wireless sell data plans for your gadgets, at&t is buying them. nicole, the stock please? >> here is the stock, leap wireless is up 115%, unbelievable move. it's $17 and change. we are seeing now that at&t is moving forward with the 1.1 billion dollar bid. take a look hat a long-term chart. leap wireless is 100 bucks in 2007. today is a great day, but for the shares holders, they were

hoping that they will be back to $1 h $100, i'm sure. it's good for at&t. >> you bought at 100. you're not too happy at 17. and the s&p, dow, et cetera, et cetera. let's look at amazon stock this year, up 23% since january and compare that to apple, which is down 20% this year. and bruce is with us, and i'm going to ask you the same question, is amazon the new apple? >> amazon has become the ubiquitous retail source on-line with the one click purchasing and ups scanning and you can walk into the retailer and see what it costs and their domination of cloud. they really have established themselves and set themselves up for the future. >> you think it's the growth company in technology of the future, just the way that apple was, five, six, seven years ago? >> i think it absolutely is.

>> try this one, would you-- do you like the union-free twinky? it has returned. union-free. do you think that being union-free is a selling point for twinkies? >> no, i have to figure that the only thing that's a selling point for twinkie is lots of sugar and a shelf life longer than titanium. i think from a business point of view a couple of people are probably happy that they're union-free, and other workers are unhappy. but i don't think their ability to sell. stuart: maybe the food police are wrong, we want sugar. >> no one went broke buying products that they are addicted to. they're back with a vengeance. stuart: ding-dongs are a personal favorite. thank you. >> former montana governor brian schweitzer says he will not run

for state's open senate seat. that's a big hit for democrats next year. how does it shift the balance of power in the senate? it could, you know. to the big board, now we've got a six-point gain, that's all we've got that it's higher. no big retreat this monday morning. harry reid hints he's about to make historic changes in the senate. and doing the nuclear option, is this the only pro nominee is to bundle the nlrb? that's next. ♪ announcer: where can an investor be a name and not a number?

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>> stokes of note. check boeing, the leader on the dow. the fire last week on the 787 dreamliner in london not caused by faulty batteries. back up it goes 103 on boeing. citigroup big winner, 4 billion in profits in the last three months. not bad. 51 on citigroup this morning now look at tesla, a new high this morning, 133.26. right now it's 131.30. tesla above 130. that's the news this monday morning. and look at the gold market. where are we? 1285. we've been pretty static the last couple of weeks below 1300. you know, you've got to say, it's desperate on capitol hill as senator majority leader harry reid says he's ready to deploy the nuclear options and wants to change the rule on allow a majority vote on appointees to the labor board. that would avoid a republican filibuster. here is democrat strategist doug

schoen joining us from tucson. now, if senator reid does press the nuclear option button, that's a very big deal and i'd put it to you. he would only do this if he's getting intense pressure from the unions. is that right? >> i think intense pressure from the unions, but even more, stuart, intense pressure from the white house. bottom line, the polarization in washington, the gridlock is such that the democrats have decided to go hard left. no more attempt at compromise. they believe the republicans, with some justification, are intransigent and bottom line, they're going to do whatever they need to do to get these nominees through. including changing the rules. >> now, there's going to be a closed door meeting between both sides, republican and democrat senators, closed doors, at the end of he day, do you think that senator reid will go for the nuclear option? >> you know, i'd like to believe and i hope he won't.

bottom line, what mitch mcconnell will tell him, the republican leader, is harry, if you go this route, there will be no legislative business, it's headed in the direction of total, total gridlock and dysfunctionalty in the senate. the football works to produce 60 vote concensuses ensuring bipartisanship. mcconnell will say, the jig it up if you adjust the rules. stuart: and this is for appointees like the labor secretary, consumer protection board and national labor relations board, it's there. it doesn't go towards judges. they'll still have the filibuster available for justice, but it's just nominees to that board and the secretary's position. >> what mcconnell will say and i think is in the back of reid's mind, if you can do it for appointees and get away with it, you can move to judges and then move to legislation.

and i think that mcconnell is going to draw the line because he knows if the senate goes from a body at that requires 60 votes to 51 votes, bottom line, the country, the senate, and governance in washington will become even more difficult and more polarized. >> how do you think it's going to play out among voters. >> there's clearly gridlock in washington. no doubt about it and the president can't get the appointees through and he was elected to another term. how does it play out if senator reid pushes the button? >> i think the independents will probably divide and be narrowly against it and if i have to push the nuclear option i don't have much republican support,,not much independent conservative support, not going to hurt me that much and hence, his willingness to consider it.

stuart: and it's the president and others to push it, the pushers on this issue. >> absolutely. the white house has largely given up on bipartisanship. immigration is not going through. and the president did climate change and backed way off on health care. bottom line, i believe they feel they have to be strict partisans to get their agenda and their appointees through and that's what's behind this. >> doug schoen, you're in tucson, arizona now. and i believe the temperature is headed up north of 100 degrees. >> it is. >> watch out for the global warming, doug, it's going to get you. >> the president will issue orders, don't worry. stuart: we have good air conditioning in new york. >> i look forward to it. stuart: a heatwave in new york city and you can bet they'll season this and the global warming agenda. you'll have my take on that next. ♪ oh, it's too hot, too hot lady ♪ ♪ gotta run for shelter, got to

run for shade ♪ ♪ it's too hot, too hot lady ♪ ♪ cool this anger, what a mess we made ♪ ♪ i want to make thgs more secure.

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>> yes, the market is dead flat, but money to be made. sprint is the biggest winner on

the s&p 500 and it's up on the leap and wireless deal for at&t. look at tiffany, an upgrade and the stock is up. charles likes this stock and is going to tell us why in a couple of minutes and we have the former governor of montana not going to run for senate. our story exposing his use of n onprofits may have played a role. how it may affect the balance of power in the senate. and the twinkie is back and never had to go far. had it not been for the unions. we'll speak to a pro union guy on the new union-free twinkie. and eric holder considering possible civil rights charges on george zimmerman. seems like everything is political, health care, the food you eat, the political meaning of music, and now you the weather. you can't get a weather forecast

without a dose of politics thrown in. here is my take. i am not going to get into the climate change debate. but you know, it's very hard to escape it. this week, it's going to be very hot in the northeast, last week, it was very hot in the southwest. last year, we had super storm sandy and the president went out of his way to blame climate change and used the storm as evidence that we need to control carbon emissions by killing the coal business. so now, every time the weather deviates from the norm, global warming is invoked. it's a heavily statistical argument. if the temperature is above normal for any particular hour, any particular day or region, the words climate change quickly appear. i wonder, can you get a job in the weather department of an establishment media outlet and be a climate change denier? it doesn't look like, does it. a prediction, when it hits 100 degrees this week in washington or new york, the left will

smugly say, i told you so, global warming. and in the past couple of days the temperature was below normal and that's part of the oddities called climate change, they can't lose with climate change. i call it weather and i think it changes day-to-day and i think that in the summer, i can expect a few 100 degree days, a few thunderstorms and occasional torrential rain. i have no doubt that few records will be broken. but i don't want to hear that the planet is in the grip after developing catastrophe. even if the weather forecaster passionately believes that's the case, do not tell he me to be careful, it's hot out there. don't remind me to take the umbrella. don't tell me to stay inside and take in plenty of liquids, i'm not afraid of the weather. and i don't want to hear your politics on sunshine, just give me the forecast!.

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crowd funding. we have a young woman who financed a medical treatment by appealing on the net. look at that market. ♪ ♪ stuart: we retreated a fraction. we were almost in record territory all over again. charles is here. we have some week predictions on the economy this morning. charles: below 1%. he actually pointed to government spending. the headline number, three quarters to 1% gdp growth. that was it. stuart: now they are looking at maybe half of that second quarter. >> barely skimming.

stuart: the more likely it is that bad prince. the overall market goes up. charles: i look at citigroup's numbers this morning. europe blew me away. we are a struggling economy. stuart: we shall agree to defer. neil: it is only monday. stuart: let's go to the cold. nicole: we are talking about boeing. obviously, with the fire they had and now a lot of people looking into it. they have about 25

investigators. one thing they seem to have at least ruled out is that it is not the battery. that is a big relief to boeing and its shareholders. the other is google. it did trade as high as 926. >> it reminds me of apple. thank you very much, indeed. i want to take a look at tesla as well. it was above 130 this morning. it is back at $130 a share. that is a stock that has gone up about 130%. charles: a little less than that. we took profits last week. it is just getting really scary. stuart: i would say so.

>> now it is 130.38. a surprise announcement from brian sweitzer. he will not run for the senate. he first raised questions. david, that was one of the reasons, i believe, why he decided he would not run for the senate seat. >> we reported and he decided not to run. it is my fault, at least according to the local papers. they have run a whole series of exposés after we ran our report on july 1. they went deeper. they used our story to get information about the connections. a lot of people say, look, it does not have much to do with the running of the country.

very important group, in terms of organizing political power in washington. he was going to run for senate. that could have held, could have helped the democrats hold onto the u.s. senate. this is going to hurt the democrats. stuart: how many seats, how many keys seats are up for grabs? >> republicans need to pick up six seats. they have illinois, new mexico, oregon, rhode island, delaware. they had assumed that with brian sweitzer running in montana, that was a sure thing. they could count on montana to remain democratic. not now. there are some newcomers coming

into the race. there is some more stuff regarding the irs. what we uncovered with brian sweitzer, what he was doing, using this nonprofit organization as a slush fund, that has happened to a lot of other groups. we are now investigating a lot of other groups. these are 5o1c4 organization's that are supposed to do no more than 40% of their work on political campaigns. one has to investigate these other groups as well. it was a projection.

stuart: are you saying that the irs problem that was uncovered could be a similar problem for other democrats? >> and with the key race coming up, it could change a race of the senate. obviously, republicans are doing it, but not to the extent, apparently, that democrats have. stuart: it would be the end of president obama's policy for another two years. >> i think that is a fair statement. charles: the definition of a lame duck president. stuart: the chances?

>> 50 / 50. by the way, fox news was very helpful to us. this was a group effort. stuart: david, thank you very much, indeed. we will see you soon on this subject, i am sure. charles was looking at earnings. nicole: the stock was up 20%. $51.65 a share. another thing that we should note is overall, their second-quarter profit was up 42% from a year ago. stuart: thank you. charles is gloating.

charles: i find it interesting that europe is looking good. stuart: citigroup's business. charles: europe was a strong point. the gross margins are higher than any other region. to your point, north america, the revenues were actually down quarter after quarter. it is interesting. stuart: we have to describe it as an odd alliance in the senate. john mccain and elizabeth lauren. they have teamed up. they want to break up the big banks. the angus king of maine supports this suggestion. he wants to break this up.

>> thank you. this is a political odd marriage, if you will. stuart: now, if we get this, if this bill is successful, and you went ahead and do break up the big banks, that puts dodd-frank and that whole mess over form, that puts it right out the window; doesn't it? >> bi solution has always been a structural change rather than a regulatory change.

stuart: if you got your way and the big banks were split up, i, as a taxpayer, would that be on the hook if the investment side of the business went belly up. >> you've got it. that is the whole idea. we want thinking to be boring again. i think, it was not the sole cause of the crash in 2007-2008, but it certainly was a contributor. i think it got whittled away. it was a mistake. i think we should go back to a ball that works so well for us.

stuart: two pieces of legislation. obamacare and dodd-frank. massive pieces of legislation. are you in the camp that says repeal both of them? get rid of both of them because that legislation did not work. >> i think it is so important to provide more probably based insurance to more people. i just do not see how you can argue that people should be going without health insurance. i think it has perhaps been overly regulatory in this process. that is why the white house said we would not do this employer mandate next year. i think that is a wise decision. i hope they will go back to ground zero. i support the law, but not this

mountain of regulation. dodd-frank, that is another issue. we need to focus on the burden of regulation. it is unnecessary, it is burdensome. i do not think it makes sense. stuart: we thank you very much for joining us. we appreciate it. >> yes, sir. glad to be with you. stuart: we are up 11-point this monday morning. fifteen for 75 is where we are. george zimmerman acquitted. we are talking eric holder with the judge after this. ♪

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jumping more than 500000%. the book was well-received even before people found out that she was the author. let's get to charles. let's make some money. [ laughter ] charles: i think that it is such a valuable brand. i do not like that verizon store. it is just that. the brand itself, it is so powerful. japan was up 21%. you know, they have a lot of things going for them. i think this is definitely a $90 stock. stuart: i disagree with you about that store. i love that store.

bring the family to new york, go to tiffany's. [ laughter ] stuart: all right. moving along, please. the justice department looking at the civil rights charges against george zimmerman. the judge is here. the justice department is considering whether to file criminal charges against george zimmerman. >> yes. double jeopardy generally means trying a person more than once for the same crime. if a state crime tries you for a state crime, the fed will try you for a crime even if it is the same. in my view, that is an improper reading of the double jeopardy

clause. nonetheless, it is the law. the feds can do this. what are they looking for? well, race has to play an angle here. they have to be able to demonstrate to a jury that beyond a reasonable dow, george zimmerman attacked trayvon martin because of his race. the state was unable to prove that. they had no evidence. the state prosecution just ended on saturday night. that is strike number one. they determined the investigation a year ago because they found no evidence. it would be highly inappropriate and almost unprecedented for them to begin another investigation, especially after the state investigation ended in an acquittal.

politics should stay out of prosecution. unfortunately, it does not. stuart: throughout the trial, i was impressed with the behavior of trayvon margins parents. they may consider filing civil charges. >> that is entirely different than what we were just talking about. the burden of proof in a civil trial will be much lower. >> the burden of proof -- if zero is no proof and 100 is certainty, criminal prosecution is somewhere around 99. in a civil case, it is preponderance of the evidence. remember, trayvon margins

parents can only sue for the financial value of their son's life. what he would have likely earned and left to them as his heirs. a 17-year-old boy with no professional standing whatsoever. he was so young. stuart: i have to move on. senator reed -- >> that would be the great defender of the filibuster. stuart: the same senator from nevada. [ laughter ] stuart: the president's nominees.

he wanted to be a straightforward 51 vote majority. >> there is nothing unconstitutional. the constitution specifically says each house should be the creator and judge of its own rules. this is a rule of prudence and history and value. this is not an issue of the constitution. if you get sick, i think he will rule the day. stuart: okay. thank you very much, indeed, judge. would you give your hard earned money to a complete stranger to help them treat a medical problem? it is called crowd funding.

♪

stuart: headline of the day. microsoft stock has hit a new high. i own some of it. nicole. nicole: i think my name is supposed to be michelle. stuart: i do not know where it came from. i am very sorry. nicole: it is fine. i am used to it. i respond to michelle. they are doing a restructuring. everyone was waiting for it. they are loving the idea. so far, so good. stuart: thank you for reporting the good news. the dow that slot. smoking, not allowed on the long island railroad.

now eve cigarettes are banned as well. this would have been a way to smoke where you currently cannot smoke. the railroad says, no, you cannot do that. we have all heard of using websites like kickstart. to start a family, as well? with fertility treatment often costing way into the thousands of dollars, many couples are turning to crowd funding to raise money. and you go find the page. welcome to the program.

you put out a appeal for money to freeze your embryos. >> we have $12,845. stuart: obviously, you fund raise with family and friends. i understand you have brought in some money from complete strangers. >> yes. it seems like when someone posted on their facebook page and they sought and pass it along and pass it along. it just kind of trickled down to a whole new network of people. stuart: it is called crowd funding. >> yes. i just designed for film and

print. this is the first one i have come across that was for more of a personalmedical reason. stuart: i do not know who i am giving it to. this could be a total scam. it does set up the opportunity for scams. >> it does. the best thing i could say is that the people who have donated who were strangers, a third-degree away from a friend of a friend of a friend. you just hope that when someone is doing something, they are being honest and forthcoming about it. stuart: did you expect this level of success? >> no. not so fast.

it has been up for 16 days. stuart: 16 days? >> and it has been quiet for the last few days. stuart: any extra money -- >> it is covering lab bills and things like that that are starting to roll in. it seems like all of this is considered a gift and as long as i have proof of medical payments and where the money actually went to, i can hand that in. stuart: do you happen to know if the people that gave you money, did they get a taxable deduction? >> i am not sure. i am not a registered charity. unfortunately, i do not think that they can. stuart: thank you very much for being on the program.

this is a very interesting subject. we hope you well. >> thank you very much. stuart: then to twinkies. [ laughter ] stuart: no thanks to the union, they are back. after the break, we show you just how better hostess is after ditching organized labor. that is next. ♪

>> that ad is there, but is it accurate? well, taxpayers do not, in fact, fund the postal service, but when times get tough, the agency goes right to the u.s. treasury for help, and that is your money. postal service already lost $1.9 billion in the first quarter this year, lost 16 billion last

year, and went to the taxpayer for a loan to repay. technically r it's not cost you anything, but that's a technical argument. we have the twinkie, twinkie the kid rides again, and this times unions are not driving. they are back on store shelf, and they have nothing with making or delivering them. bringing in the union spormter and author of state of the union. all right, phil, give me your take on the non-union twinkie. >> well, remember fair and balanced. in the lead-in, you said that the company no longer has to deal with organized labor. true enough. no longer also has to do with disorganized management. i mean, we've discussed many times litany of malfeasance contributing for years now to the demise or almost demise of the brand, so new start with a new company. >> but the principle reason that twinkie and the ding dong have

been saved is because there's no management. they no longer have to deal with the dupe publictive work rules imposed, a big reason why the nonunion twinkie is back, isn't it? >> well, unlike you, i'm not trying in the instances to mmke an ideological point. i think there was too much much a complex set of restrictions in management. granted, there also was a huge litany of management problems. they went through bankruptcy. they changed management several times. >> it is an ideological point, phil. it is. it's a very important ideological point. you cannot have 19 #50s style unions carrying a heavy influence on companies in the year 20 # 13. if you do, that's imposing work rules flat out unworkable, and the company goes under. that's what happens to the twinkie. >> that's the point for you, but that's not born by the facts.

>> yes, it is. >> boeing is wall-to-wall union. the biggest brewery in the world, highly profitable, wall to wall teamsters. the most profitable sportings league, nfl, they have the strongest sports union we have. >> okay. let me throw this at you. new management of twinkie says they have money to spare because they got rid of the work rules, rid of the unions involved in running their company, running their organization. they now have enoogh money for research and development. they will introduce new and improved flavors and textures. they are beginning to make a profit which they plow back into the company. >> well, that sounds -- >> it's nonunion. >> it sounds good. let's hope they do that. unlike the previous management that took the giveback the concessions unions gave them, and rather than doing what they were supposed to do, which you

outlined, it was begin in the form of management bonuses. let's hope this management does better. >> all right. two questions. number one, do you think twining ky could go forward if it was a fully union organized operation? first question, go. >> if there was a fair set of labor -- if labor management relations were good. if there was a good contract, yes, they could. again, like boeing, if they had too complex a set of contracts or dysfunctional management, no. >> okay. number two, would you buy a nonunion twinkie? >> at some point i might buy a chocolate covered cream filled cup cake, that i had for school lunch 50 years ago. that's as far as i'd go. >> really? as far as you'd go? you'd boycott a nonunion product, would you? >> boy, did you put words in my mouth. >> you said "as far as i would

go" -- >> it's the same company. >> you wouldn't go to a new twinkie or the rest of them? >> i just don't like twinkies. i like the cup cakes. union or nonunion, i'd buy one as long as the workers have a fair choice of being union. if they choose not to be, fine. >> i think they chose not to be. >> so far, yes. i hope that if they decide to organize, that this company, unlike many employers in america, will give them a shot at having that wish fulfilled. >> all right, phil, pleasure to have you on the show. thank you, indeed, for coming. >> pleasure. >> latest trend in hollywood, big budget movies with a-list actors flopping at the box office, getting beat by animated movies like "despicable me," so why do these movies keep on winning? well, that's next.

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>> avery? is that a boy's name or girl's name. >> does it matter? >> no, it doesn't matter, unless it's a boy. >> i know the name of a boy. >> oh, you do? >> a bald head. >> well, the monster's versus row robots "pacific rim" was third falling behind the family-friendly animated comedy "despicable me 2", hollywood's fourth big budget flop of the summer. is the big budget dead? hollywood.com joins us for more. i'm looking at lone ranger, wwz, after earth, pacific rim, big budget block busters that

failed. going so far as to say the public's taste is really shifting? >> i think it could be. when you see "despicable me 2 #" at number one two weeks taking on johnny depp and coming out a winner, and this weekend, taking on adam sandler and monsters and robots of "pacific rim," still on top, that tells you something. the fact despicable me is known for minons, not any particular star, what's waning is star power. if you're going to have a big star in a big movie, the movie has to be really good because that's what is most important is the themes of the movie, the marketing, and all of that >> why do you think star power is waning, why would that be? >> if you just plug in the big star, that used to be a guarantee that a movie would do well, and now people have so may choices for entertainment, great

writing, hulu, netflix, so many avenues to get content, and now plugging in a star in a big movie, there's so many other things to do. the movie has to be really good. just because you spend money on a movie does not mean it's good. it's not a direct correlation of a cost of a movie and quality. despicable me was not an expensive movie, but up to $230 million, and "the lone ranger" read just $71 # million in north america at this point, so there's a big disparity between what the audience likes and what a movie costs to make. there's, you know, one doesn't go hand-in-hand with the other. >> is it deeper than that? here we are in 2013, the economy really is not doing well. politics, congress, in disrepute. president obama's approval ratings falling. it's a grim outlook if you look. is it possible that's reflected in the movers and we just want

to go pay money to make us laugh, is that it? >> i think that's part of it. i think why people go to the movies is to escape, and summer movies should provide that, but people are becoming so discerning with how they spend their money that if they are going to take their hard-earnedded dollars to go to the multiplex, they want to know they will have a great experience, and despicable me 2 provided that, and sandler's movie "grown ups 2", the second biggest opening ever for him, but there could be something bigger going on, but at the end of the day, it's about good movies, creating great word of mouth, people talking about the films, and encouraging others to see them. there's some options for entertainment, those movies have to really deliver for sure. >> maybe acting, character development, story line, writing, directing, maybe that got something to do with it. who knows. >> well, that would be nice, wouldn't it? just have good acting? in the summer, you know, they are walking that fine line.

i think when you have a movie that delivers both, you know, the great character development and the big budget spectacle, that's when you really have something. that's rare. usually, the movies that are really expensive, over the top, they lose something in the character development. >> they certainly do. >> as you mentioned,ic -- i think it's doing better than anyone originally thought because the movie is good, and brad pitt, star power and actually brad pitt's willingness to go out and stunt for the movie, got on the campaign trail for the movie, so to speak, helped it to do better than anyone thought. lone ranger did not pay off. >> no, it did not, for sure. >> unfortunately. >> thank you very much, indeed, sir. >> sure, thank you. >> i want to check in apple because we got a report in the "final times," they are scrak ling to hire people to rework the iwatch design. any impact on stocks, nicole? >> right. looking here, up three quarters

of one percent, they have new people working on this design for the iwatch, which will be latest and greatest product from apple. i can't wait to see it, for one, and we'll see whether or not it helps the stock ultimately to have a hot product and everybody has to have it. >> show me boeing. i think that's the winner? i think the dow would be negative if not for boeing. >> what's interesting is they are making it through another tough headline. in this case, the late education fire and disaster for boeing is not correlated to the battery, and that is good news, ultimately, for boeing. it's worth 19 dow points now. >> okay. it would be negative but for boeing. >> right. >> thank you very much, indeed. dead flat market, basically. a time bomb ready to blow. social security disability fund. record number of people collecting, but by 2016, that money could all be gone. that's next. [ shapiro ] at legalzoom, you can take care of virtually

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>> department of defense furlough the 650 # ,000 workers on military basis. why spending $3.5 million to save a small gofer living near a base in washington state, a gopher not on the endangered species list?

charles, though, he is here to make money with a relook at restoration hardware. >> restoration hardware, kind of controversial, beat the street last three quarters by large margins, and consequently, the earnings consensus is through the roof, but people worry trading at six times two times sales, and here's the thing. the company is doing extraordinary well. the producer b doesn't like it, but i love the stuff they sell. i have a big deep sofa. they are expensive. it's worth the money. i see the guys doing well. retail sales numbers out today, relatively disappointing, but furniture sales up 2.4%, strong volume, retests 77 from break down could be huge. it's short. >> woah, i didn't -- >> 120% closing is short. >> how? >> i don't know. i don't know how they pull it off.

>> but eight insiders bought 17 # million shares? >> they sold. >> sold? >> they sold, right. >> interesting. >> it is. >> fascinating. >> i love the story, grow the top line like this, we'll have the mother of all short squeezes. >> that puts it up, wouldn't it? i have time for this one. social security disability, it has until 2016 to shape up so says former bush add adviser. right now, the total in unfunded liabilities is up to $40 trillion, and disability runs out of money in 2016. any comment? >> 11 million people from 2.7 million in 1970 says it all. we have a government that allows -- they -- i really believe they intentionally put loopholes in it, and l article talks about people saying, okay, unemployment for two years, now going on disability, then this program. you can skip around and hop around. the unemployment in the country for years live relatively well and never have to look for a job. >> that's right.

>> taxpayers pay the bill. >> by 2016, out of money. crunch time. right there. >> significant cuts. >> election year. in an election year. >> yeah. >> interesting. we're on royal baby watch. very soon, a future king or queen will be born in england. we'll deal with that next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. every day we're working to 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,

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stuart: the royal navy watch. here are the odds on the name. 91% it will be a girl named elizabeth. eleven-one on john or charles. charles is with me. charles: i am going to take a long shot. stuart: you think it will be charles.

do you think you will put money on it? charles: no. stuart: hey, that all. connell: i cannot make myself care. no matter how hard i tried. thank you very much. the concept of underemployment. it has been something that has caught bernanke's attention. we actually have the florida governor, rick scott, with us in studio. the burned out dreamliner. shareholders and flyers are all tuned into that. twinkies are back on store shelves today. she became an instant celebrity because of the way that she lost, but now